October 2017

Making the World Safe for Retirement Hypocrisy

Why do large financial firms prey on educators, researchers, and public service workers in their retirement accounts?  That’s where the money is.  Financial illiteracy and steady income provide the ideal environment for predators. We constantly warn about insurers and brokers who exploit teachers by selling them unnecessary and expensive investment products.  They are the usual…

It’s Monday Again…..When Is My Retirement?

Good Morning! Here are this week’s retirement links. Have a great day. Many Financial Firms Want ‘Best Interest’ In Name Only – The Hill Check Your Retirement Readiness – HumbleDollar Got $1 Million To Retire? Here’s How Long It Will Last, By State – MarketWatch Open 403(b) Letter To CA State Insurance Commissioner – Late…

Keep Your Investment Factors out of the Zoo

What do Nashville, Donald Trump and the Bible have in common, besides having the potential for a bad joke? They should not be included as components of your investment portfolio.  Unfortunately, this is the new reality. Sponsored by our good friends on Wall Street, there are now several “theme-based ETFs” specifically designed to separate you from…

It’s Monday Again…..When Is My Retirement?

Good Morning! Here are this week’s retirement links. Have a great day. What Is An Annuity Contract? – PlanSponsor The Price Of Progress – The Irrelevant Investor Finra Cracks Down On Faulty Variable Annuity Exchanges – InvestmentNews Bad News: Your 401(k) Won’t Give You A Decent Retirement – L.A. Times How To Pay For Long-Term…

Generation Kill

  Young people are killing their chances of building wealth.  Their ignorance of how credit cards work is mind-blowing.  According to a recent survey: 6% believe that missing a card payment would “improve” their credit rating. WTF!!!! 17% said missing a card payment would have no effect on their score. 48% carry card balances on…

Transferring Risk Won’t Make It Disappear

Sometimes “safe” investments are anything but. This week, I wrote an article on Stable Value Funds for the InvestmentNews. Many people own these funds in their retirement accounts. They are sometimes looked upon as a higher yielding money market fund. This is not entirely true. If Investors use these products inappropriately, they might not get…

Investors Need To Come Out Of The Closet

“[With] closet indexing….you’re paying a manager a fortune and he has 85% of his assets invested parallel to the indexes. If you have such a system, you’re being played for a sucker.”  – Charlie Munger Investing is hard even if you know what you are doing. Week number two of my investment class was devoted to…

How To Make $5,300 In Commissions on a $43,000 Retirement Account

This is why we do what we do. The title of this post is no typo. It is the sad reality of many Non-ERISA 403(b) Plans. Public school teachers are the victims of the most exploitative financial services model on the planet.  This post should shock anyone with a sense of decency and minimal investment…

It’s Monday Again…..When Is My Retirement?

Good Morning! Here are this week’s retirement links. Have a great day. Shining Light On Hefty Fees To Outside Managers Of Public Pension Funds – NJSPOTLIGHT Does The New Tax Proposal Penalize 401(k) Plans? – A Teachable Moment Did You Know The Government Might Pay You To Save Money – The Motley Fool Who’s Left…

Does The New Tax Proposal Penalize 401(k) Plans?

  Is it possible that even though President Trump’s tax reform proposal preserves the standard deductions for retirement plans, it will still provide disincentives to save? Maybe. The effect of unintended consequences is always the wild card. The potential problem has to do with pass-through entities, which include sole proprietorships, S-corporations, partnerships, and limited liability…