It’s the End of the World As We Know it, and I Feel Fine

This line from a classic R.E.M. song from the 1990s sums up my feelings on this whole Greek Fiasco. While there is a strong possibility for “short-term volatility” a.k.a. a sudden scary market plunge, on the whole the news from this beleaguered isle means little to my clients’ long-term financial plans. Creating a portfolio without…

Five Ways to Raise a Financial Adult

Many children are dominated by “Helicopter Parents.” They lurk in the shadows, concealed in their mini-vans looking to monitor and butt into virtually any life situation their child encounters. Besides being humiliating and demeaning to the child, there are worse side effects to this behavior. Children will never learn how properly manage their finances if…

Five Fun Ways to Train JPM Employees About Conflicts of Interest

J.P. Morgan is in talks with the S.E.C. to settle a probe about charges they sold clients their own proprietary funds rather than cheaper ones from competitors. The story is being reported in today’s WSJ As part of the companies response to this latest disaster, they are focusing on how to train their employees how…

Sudden Wealth Often Disappears

Many people who find themselves with an unexpected large sum of money often lose it all. While money can solve many problems, it provides little value if its owners are not prepared to receive it. While this unexpected windfall may seem like a blessing it all too often becomes more of a curse. Often those…

An Investor’s Version of Rat Park

Many investors are addicted to overpriced financial products sold by conflicted advisors. The products are not the problem. The toxic environment that allows them to incubate and spread is the main source of this dysfunction. Johann Hari wrote an amazing article in the Huffington Post entitled “The Likely cause of Addiction Has Been Discovered…

College Merit Aid is for Mediocre, Rich Kids

College merit aid is not being used as it should be, (i.e., for impoverished students with great potential but little ability to afford tuition). Its main purpose has become to attract affluent and often mediocre students in order to gain the most bang for the buck. With the exception of a select few elite universities, this practice…

“Leave The Gun, Take the Cannoli”: Lines from The Godfather to Use in Finance

One of my favorite films is The Godfather. I had a friend who memorized every line in the movie and would find a way to apply one to just about all of life’s situations. We would go to lunch and someone would ask about the choices, he would invariably say, “Have the veal, it’s the best in the…

Crash Dieting Doesn’t Work for Savers, Either

Deprivation diets don’t work in the long term. The same can be said for deprivation-based financial management. Eliminating all the fun things you can do with money is a surefire way to guarantee failure. In his excellent book “Mindless Eating, Why We Eat More Than We Think,” author Brian Wansink explains why most diets don’t work….

What Risk Is All About: Uncertainty

Howard Mark’s recent quarterly update to his Oaktree Clients is an investment smoothie for the brain. Reading this memo is an adrenaline shot for your mind. This comes without the unpleasant side effect of your Vitamix blasting through your kitchen like an industrial grade leaf blower. Mark’s analysis of risk is nutrition for your cerebral cortex in…

Kids Can See Sports as a Lousy Investment, So Why Can’t Parents?

Children’s sports are denting the finances of many parents. A recent Wall Street article titled “Why Children Are Abandoning Baseball” pointed out that participation in youth sports leagues, especially baseball, has declined dramatically since 2000. The article, written by Brian Costa, cited a “pervasive emphasis on performance over mere fun and exercise” as a big…