Five Core Fiduciary Principles Interest SEC Commissioners

Details of core fiduciary principles and differences

between fiduciary and ‘arm’s length’ standards discussed

Washington, DC – August 3, 2009 – The Committee for the Fiduciary Standard,

a group of investment industry leaders, took their fiduciary message to Washington on

July 29th. The Committee met with SEC Commissioners, a Treasury official and

Congressional staff.

“We felt strong interest from everyone we met. Although no specific

commitments were made, our takeaway was that all participants understand and believe

in the application of the five core fiduciary principles to any and all who provide (or

purport to provide) investment advice,” says Harold Evensky, a member of the

Committee and president of Evensky & Katz, a registered investment adviser.

The Committee met with SEC Commissioners Elisse B. Walter and Luis A.

Aguilar. During the course of their discussions, the Committee addressed how the five

core principles would apply in various circumstances where advice is given to an

investor. The Committee also pointed out sharp differences between the fiduciary and

arm’s length standards. In addition, the Committee briefed an official from the Treasury

Department and Congressional staff.

“We saw Washington at its very best. The keen sense of the vital role of the

fiduciary standard, and the historic opportunity to ‘do what’s right for investors’ were

palpable in our meetings,” says Knut A. Rostad, Chair of the Committee and the

Regulatory and Compliance Officer at Rembert Pendleton Jackson, a registered

investment adviser.

The five core principles of the fiduciary standard are:

• Put the client’s best interests first;

• Act with prudence; that is, with the skill, care, diligence and good

judgment of a professional;

• Do not mislead clients; provide conspicuous, full and fair disclosure of

all important facts;

• Avoid conflicts of interest; and

• Fully disclose and fairly manage, in the client’s favor, unavoidable

conflicts.

The Committee announced its formation in June for the purpose of working to

ensure that any new legislation or rulemaking “meets the authentic fiduciary standard,

as presently established in law.” The Committee has:

• Called on Congress to adopt the authentic fiduciary standard in Wall Street

reforms and asked that Congress ensure that investors’ best interests are made the

number-one priority in new legislation

• Introduced the five core principles of the authentic fiduciary standard

• Urged investors, professionals and all interested market participants to ‘vote’ in

support of the five core fiduciary principles by signing the Committee’s online

petition

• Been invited by staff members of the House of Representatives Committee on

Education and Labor to provide assistance on HR 2989, a Bill intended to

introduce fiduciary and fee disclosure requirements for those who give advice to

retirement plan participants.

The Committee’s members are recognized leaders in the investment and financial

advisor profession:

• Blaine Aikin, fi360

• Clark M. Blackman II, Alpha Wealth Strategies, LLC

• Gene Diederich, Moneta Group

• Harold Evensky, Evensky & Katz

• Sheryl Garrett, Garrett Planning Network

• Roger C. Gibson, Gibson Capital, LLC

• Matthew D. Hutcheson, Independent Pension Fiduciary

• Gregory W. Kasten, Unified Trust Company

• Kate McBride, Wealth Manager

• Fred Reish, Reish, Luftman, Reicher & Cohen

• Ronald W. Roge, R. W. Roge & Company

• Knut A. Rostad, Rembert Pendleton Jackson

Fee-Only: Financial Advice That Is Not Part of a Sales Process

It may seem unnatural to pay upfront for investment advice; however, if you are comparing our services with those of another adviser, you might consider the following:

We are generally able to deliver substantial value in not only saving our clients money, but also delivering advice that’s suited to your needs and not tied to any sales agenda. Our value derives from independence, objectivity, and fiduciary responsibility. Very few planners in the world offer a range like this.

Quality and Value

• Objective Advice - The only money we receive is directly from you, our client. Commission paid advisors are compensated based on whether you buy the product they recommend - this represents a significant conflict of interest. Our advice is not rendered as part of a sales process. There are no hooks or hidden agendas.

• Independent Advice - The investment universe we have available to choose from is not limited by any company paying us to recommend their product or type of service. The plan we create for you is not conditioned in any way on you implementing your solution through us. We never receive third-party compensation from suppliers or vendors.

• Fiduciary – As a member of the FPA, NAPFA, Garrett Planning Network and the CFP Board, I am required to always place your best interest above that of my own. As a Fee-Only advisor, you are the only one paying me, which aligns our interests and removes conflicts of interest.

• Cost Effective – How much are you paying to invest your money? You'll pay more for my plan up-front, but the difference in implementation and ongoing costs is significant when using appropriate no-load funds with low expense ratios, and with lower turnover and capital gains distributions. You will also be free from that point on from the higher ongoing costs of ownership of a limited range of investment products offered by commission paid advisors.

http://www.EvergreenPlanning.org

NAPFA Applauds President Obama for Proposing a Fiduciary Standard

President's regulatory reform proposals met with guarded optimism by Fee-Only financial advisor association

Arlington Heights, IL (June 18, 2009) - The National Association of Personal Financial Advisors (NAPFA), the country's leading professional association of Fee-Only, fiduciary financial advisors, is pleased to release the following statement from NAPFA National Chair Diahann W. Lassus, CFP®, CPA/PFS regarding President Obama's 21st Century Regulatory Reform proposals.

"For 26 years NAPFA has been promoting the need for financial advisors of all varieties to adhere to a strict fiduciary standard of conduct. The industry has done consumers a great disservice over the years by blurring the lines that distinguish truly independent advisors who operate only with the client's interests at heart and those advisors adhering to a lower standard of conduct. President Obama's call for a fiduciary standard for all financial intermediaries who provide investment advice is a wake-up call for an industry that has fallen asleep at the wheel."

Ms. Lassus adds, "With the President pointing the regulatory reform debate clearly in the direction of a fiduciary standard now comes the time to determine how regulation of the industry will change. NAPFA encourages members of Congress to avoid the trap of looking to bodies that have been focused on guiding the brokerage side of the industry. We believe only a body such as the SEC, which has roots in a fiduciary standard in regulating Registered Investment Advisors, is qualified to enforce this higher standard."

To arrange an interview with Ms. Lassus, please contact Benjamin Lewis of Perception, Inc. at 301-963-7555 or Benjamin.lewis@perceptiononline.com.

About NAPFA

Since 1983, The National Association of Personal Financial Advisors (NAPFA) has provided Fee-Only financial planners across the country with some of the strictest guidelines possible for professional competency, comprehensive financial planning, and Fee-Only compensation. With more than 2,100 members across the country, NAPFA has become the leading professional association in the United States dedicated to the advancement of Fee-Only financial planning.

For more information on NAPFA, please visit www.napfa.org.

5 Fiduciary Principles

Your financial advisor is fiduciary if they:

- Put the client's best interest first

- Act with due care and utmost good faith

- Do not mislead clients; provide clear and conspicuous, full and fair disclosure of all material facts

- Avoid conflicts of interest

- Disclose and fairly manage any remaining material conflicts in the client's favor

What is a Fiduciary and Why Should You Care?

Questions to ask yourself. . .

- How important is it that your financial advisor have a fiduciary responsibility to put your interests first?

- Is the "advice" I'm receiving incidental to the purchase or sale of a security?

- Are you looking for financial advice or just a recommendation on what investment to buy right now?

New and Improved Web Site

Evergreen Financial Planning has a new and improved Web Site. Easier to navigate and more user friendly. Check it out at http://www.EvergreenPlanning.org

Recycling can reduce toxins

from Consumer Reports - GreenerChoices.org

It’s no secret that recycling can save resources and reduce the need for landfill space. But it can also be an important way to reduce toxins in the environment. By recycling the products on the list below, you can help keep the chemicals they contain out of our landfills, water, and air and make them available for new products.

WHAT TO RECYCLE & WHERE

ANTIFREEZE: Chemicals commonly used to make antifreeze include ethylene glycol or its less toxic relative, propylene glycol. Regardless of which active ingredient is used, waste antifreeze also contains heavy metals, including lead, cadmium, and chromium. Dumping antifreeze can cause serious water quality problems and be harmful to people and animals, according to the U.S. Environmental Protection Agency.

Where to recycle: Many state laws regulate the proper disposal of antifreeze. Check Earth911 or call the group toll-free at 1-800-CLEANUP for recycling and disposal options in your area.

BATTERIES: The heavy metals and other chemicals batteries contain can contaminate the environment if they’re not disposed of properly. Here are three common types and where to recycle them:

• ALKALINES: While the zinc and manganese in these batteries are generally considered safe during normal use and disposal, the battery’s corrosive electrolyte solution, potassium hydroxide, is a hazardous chemical that can cause severe burns if it comes into contact with skin or eyes.

Where to recycle: In some places, including the European Union and the State of California, alkalines must be recycled or taken to a household hazardous waste disposal facility. Check Earth911 or call the group toll-free at 1-800-CLEANUP for recycling and disposal options in your area.

• CAR BATTERIES: Lead is found in car batteries, along with acid. Both substances are considered extremely toxic.

Where to recycle: Most states have laws requiring batteries to be recycled. To see the battery recycling details for your state, visit Battery Council International. Some installers may take used batteries even if they didn’t sell you a new one.

• RECHARGEABLES: Rechargeable batteries contain heavy metals, such as cadmium in nickel-cadmium (NiCd) batteries, which by law are supposed to be labeled with the phrase “Battery must be recycled or disposed of properly.”

Where to recycle: The industry-sponsored Rechargeable Battery Recycling Corporation has established a national recycling program in partnership with electronics retailers, including Home Depot, Staples and Target. For recycling options in your area, check the Rechargeable Battery Recycling Corporation.

COMPACT FLUORESCENT LIGHTBULBS: CFLs typically contain about 5 milligrams or less of mercury, a neurotoxin that can be released into the environment if the bulbs are landfilled.

Where to recycle: Bring spent, unbroken CFLs to a retailer that recycles them for free, such as Home Depot or Ikea. Ace Hardware also collects the bulbs at select locations. You can also search for recyclers on the U.S. Environmental Protection Agency's lightbulb recycling site, or check whether you have a local household hazardous waste collection site that recycles them. Find out what to do if a bulb breaks.

ELECTRONICS: Keeping electronics products out of landfills is important, since some contain toxic materials, including lead, cadmium, and mercury that can leak into the soil and ground water. TVs with cathode ray tubes (CRTs), for example, contain four to eight pounds of lead on average.

Where to recycle: For tips on how and where to responsibly recycle, visit our Electronics Recycling & Reuse Center which covers computers, cell phones, TVs, and other electronics.

MOTOR OIL: Used oil contains many toxic ingredients that are generated during engine combustion. Toxics include metals and polycyclic aromatic hydrocarbons (PAHs), which are carcinogenic and cause harm if discarded into landfills or in the environment.

Where to recycle: State laws require motor oil to be discarded properly, and most state, county, or community recycling centers will collect used motor oil. Many states also require or encourage service stations, motor oil retailers, quick lube centers, or auto dealerships to do likewise. Check Earth911 or call the group toll-free at 1-800-CLEANUP for recycling and disposal options in your area.

Note that oil filters contain toxic ingredients found in used oil. If you are changing your own oil filter, see if your local recycling facility, gas station, auto parts store, quick lube shop or auto dealer will take your used oil filter. You can also check Earth911 or call the group toll-free at 1-800-CLEANUP for recycling and disposal options in your area. If you cannot locate any, drain the filter thoroughly, dispose of the used oil properly (see above), wrap the filter in newspaper, seal it in plastic, and then throw it away.

PAINT: Lead may be in paint made before 1978, and mercury may be in paint made before 1991. In general, oil-based paint is considered more hazardous than water-based paint because the solvents and resins used to make it are toxic and flammable.

Where to recycle: Water-based, or latex, paint can be recycled into new paint or it can even be used to create nonpaint products such as cement. Oil-based, or alkyd, paint is usually used for fuel blending—meaning it’s burned to create energy at a power plant. Check Earth911 or call the group toll-free at 1-800-CLEANUP for recycling and disposal options in your area, or find out whether you have a local household hazardous waste collection site that collects paint.

For more information on household products that contain toxins, visit the U.S. Environmental Protection Agency’s site on Household Hazardous Waste or use our Toxics search.

RELATED LINKS

Electronics Reuse & Recycling Center

USPS offers recycling by mail

How to safely—and eco-consciously—dispose of used meds

What to do with leftover paint

What you need to know about the New Sales Tax Deduction for Vehicle Purchases

From the IRS

Taxpayers who buy a new car or several other types of motor vehicles this year may be entitled to a special tax deduction when they file their 2009 federal tax returns next year. The tax break is part of the American Recovery and Reinvestment Act of 2009.

Here are seven things you should know about this new deduction:

1. State and local sales taxes paid on up to $49,500 of the purchase price of qualifying vehicles are deductible.
2. Qualified motor vehicles generally include new (not used) cars, light trucks, motor homes and motorcycles.
3. Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010.
4. This is an above-the-line deduction and can be taken regardless of whether or not you itemize other deductions on your tax return.
5. Taxpayers will claim this deduction when filing their 2009 federal income tax return next year.
6. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.
7. The deduction may not be taken on 2008 tax returns.
   Consumers who are considering buying a new car may find that this tax incentive means there has never have been a better time to buy.