Posted in Recent Posts Your 401(k)

Exposing Corruption in Principal 401(k) Pooled Separate Accounts

Principal Life Insurance Company is no Fiduciary, and they own your money. They will tell lies that you love to hear, such as being the world’s “most ethical insurance company.” The reality is that they will devour your retirement savings as a wolf devours it’s prey…

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Posted in Ethics & Compliance Recent Posts

Faking Ethics… is it ethical?

The Principal Group of Companies purchase ethics recognition from the Ethisphere Institute to protect their reputational risk. They purchase an annual recognition called one of “The World’s Most Ethical Companies”  Located in Scottsdale, Arizona, Ethisphere is a for-profit corporation that sells integrity to corporations. 

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Posted in Recent Posts

Understanding Your 401(k) Pooled Separate Accounts

In 2017, Robert Toth, with Toth Law and Toth Consulting, published an excellent review of Pooled Separate Account (PSA) based investing in his blog post.  He clearly defined what he believes are the benefits of pooled separate accounts, and opens his comments with the following statement, “Why they are worth a…

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Posted in Ethics & Compliance

Principal Life Pension Fraud… a global crime?

Last year, a Chilean protest movement that brought hundreds of thousands of people onto the streets in cities across Chile, caught the Chilean government by surprise, caused in part by a global crime by pension providers. The movement, a part of bigger campaign to overhaul the Chilean pension system, wanted…

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Posted in Ethics & Compliance

Principal Buys Toxic Waste Site With 401k Funds…

On July 3rd, 2007, Principal Real Estate Investors published this press release concerning their partnership with Vested Housing Group, Llc to purchase vacant land in Henderson, Nevada.   A day earlier, Principal had signed a Loan Purchase Agreement (LPA) to guarantee a $13.1 million loan to Henderson Lofts Devco (HLD), whose…

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Posted in Ethics & Compliance

Clean Money and Dirty Laundry…

If you happen to live in the Trenton, New Jersey, area, check out the Soup Kitchen on Escher Street.  It shares  space with the local Animal Control yard, and  serves a valuable service to the Trenton, New Jersey community.  It also holds another distinction.  Somehow, this soup kitchen also shares…

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Posted in Ethics & Compliance

Investor Relations and Insurance Companies….

Investor Relations and Insurance Companies…. One example of how insurance companies view 401k investors can be found in a letter sent to multiple Federal agencies by CFO Lillis of Principal Financial Group.  Mr. Lillis’ letter dated October 22, 2012 was addressing recently enacted proposals by the Board of Governors of the Federal Reserve…

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Posted in Ethics & Compliance

Securities Fraud in the CMBS Marketplace

Securities Fraud in the CMBS Marketplace… Following the financial crisis in 2008, Commercial Mortgage Backed Securities came under fire for inaccurate ratings that were reported by McGraw-Hill Financial Inc. and its subsidiary, Standard & Poor’s Financial Services LLC.  In the Spring of 2015, a $1.5 billion settlement was reached between…

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Posted in Ethics & Compliance

Do 401k investors Really Understand Target Date Funds?

Do 401k investors Really Understand Target Date Funds? Employee Benefit News is a New York based periodical published as an informational resource for employers that provide benefit plans for their employees.  And while the magazine strives to accurately inform employers, a recent article published in their website missed it’s mark…

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Posted in Ethics & Compliance

Non-GAAP Financial Measures and Your 401k

Investopedia defines “Non-GAAP” earnings as “An alternative earnings measure of the performance of a company. Many companies report non-GAAP earnings in addition to the required GAAP earnings, stating that the alternate figure more accurately reflects their company’s performance. Some common examples of non-GAAP earnings measures are cash earnings, operating earnings,…

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