How To Avoid What 401(k) Plan Sponsors Fear Most About Investment Policy Statements (Forbes)

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Where should plan sponsors go when crafting Investment Policy Statements? Jim Scheinberg offers his advice for his latest feature in Forbes. 

“The IPS is a legal document,” he told Forbes. “Clearly a strong ERISA consultant can help with crafting a draft IPS, but in the end an ERISA attorney should sign off on a final version. Under this process, not only do sponsors end up with a thorough document, but they also may potentially be able to claim an ‘under advice of counsel’ defense if ever challenged.”

Read the full article on Forbes to learn more about crafting effective Investment Policy Statements, and what plan sponsors need to know.


‘Angry’ Clients, ‘Shocked’ Staff After TIAA Pulls the Plug on Outsourced-CIO Arm (Institutional Investor)

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TIAA recently announced that it will begin plans to shut down its Outsourced-CIO business.

“We thought they were going to be a powerhouse,” Jim Scheinberg opines in Institutional Investor for his latest feature on TIAA’s shocking decision to pull the plug. “Why didn’t they gain more critical mass sooner?”

Read the full story on TIAA’s “jaw dropping” move here.


Jim Scheinberg quoted by Deposit Accounts

Jim Scheinberg was quoted today in an article by Deposit Accounts, a bank account comparison site, entitled “How to Painlessly Save $1,000 This Year.”

The best way to save $1,000 a year is to have $38.47 deducted from each paycheck and deposited automatically into a savings account (assuming you get paid twice a month). Paying yourself first, is a sure fire way to accumulate savings over the long haul, says Jim Scheinberg, managing partner of North Pier Fiduciary Management.


Jim Scheinberg quoted by The New York Daily News

Jim Scheinberg was quoted today in an article by The New York Daily News, entitled “For young (and old), a guide to investing.”

“For somebody who’s investing as small as $3,000 or so, it’s going to be very difficult for them to get objective and qualified advice from an adviser simply because there’s just not enough compensation to justify the adviser’s time,” said Jim Scheinberg, managing partner at North Pier Fiduciary Management in Culver City, Calif.

Read the full article from The New York Daily News: http://www.nydailynews.com/news/money/young-old-a-guide-investing-article-1.469980


Jim Scheinberg quoted by Smart Money

Jim Scheinberg was quoted today in an article by Smart Money, an investing magazine by The Wall Street Journal, entitled “Retirement: Getting Ahead of Interest Rates.”

Depending on when rates go up, consider boosting your exposure to assets with shorter time horizons such as bonds that mature in one to two years or less, says Jim Scheinberg, a managing partner at the Culver City, Calif., investment advisory firm North Pier Fiduciary Management. That way, if interest rates do rise, you won t be stuck with bonds that no one wants. In a sense, you ll be locked in to low interest rates while everyone else is making a lot more, says Scheinberg. This strategy hinges, of course, on being able to get out in front of a rate hike, which no one really knows when will happen. Advisers often caution investors from attempting to time the market, as they re typically wrong, says Scheinberg.

See the full article from Smart Money: http://www.smartmoney.com/retirement/planning/retirement-getting-ahead-of-interest-rates/

Jim Scheinberg quoted by Smart Money

Jim Scheinberg was quoted today in an article by Smart Money, an investment magazine by The Wall Street Journal, entitled “6 Investing Strategies for Retiree Wannabes.”

As Layman points out, share-price valuations are still low despite the recent stock market rally. In addition, during the downturn companies across the board trimmed costs and boosted productivity — putting them in prime earnings expansion territory, says Jim Scheinberg, a managing partner at the Culver City, Calif., investment advisory firm North Pier Fiduciary Management. For five quarters in a row, Wall Street has beat analysts expectations 50% of the time, he says. Today, companies are largely positioned for earnings growth as revenues start to increase.

Steer clear of long-term bonds, though, says Scheinberg. If inflation escalates, which is a definite possibility considering the size of the federal deficit, you won t want to be stuck in an investment where the market will demand higher yields that your bond is paying, he says. Once inflation hits, it s a no-win scenario for long-term bonds.

See the full article from Smart Money: http://www.smartmoney.com/retirement/planning/6-investing-strategies-for-retiree-wannabes/

Jim Scheinberg quoted by Daily Finance

Jim Scheinberg was quoted today in an article by Daily Finance, an AOL money & finance site, entitled “Target-Date Funds: Hidden Risks in ‘Simple’ Plans.”

The propensity of these funds toward investing in only their firm’s proprietary products is problematic for Rekenthaler, as well as others, such as Jim Scheinberg, managing partner of North Pier Fiduciary Management, “Most target-date funds invest in the asset management firm’s own offerings. Seldom, if ever, will one company have superior choices for each asset class,” says Scheinberg.