The reason most teachers do not have low-cost index funds in their 403(b) plans is because they are too inexpensive. Financial salespeople have little incentive to sell a product when they will receive a small percentage of a number like 0.10%, the cost of a typical total market index product. On the other hand, provide…
Anthony Isola
Some investing lessons from Julius Caesar
Waking up this morning to see my name on Michael Johnston’s 50 Best Investing Insights of 2015 was a pleasant surprise. Seeing my name with my colleagues, Josh, Barry, Mike, Ben and Kris is quite flattering. The rest of the list Bill McBride, Cullen Roche, James Osborne, Jason Zweig, Morgan Housel, etc., speaks for itself. Especially when I thought…
Only the Paranoid Teachers Survive
Friends do not sell friends overpriced investment products or expensive insurance that they do not need. Unfortunately, too many teachers equate “nice guys” with being a good financial advisor. Using this as the sole criteria for choosing someone to manage your finances is a recipe for disaster. After reviewing dozens of horrendously expensive, ill-constructed, and…
Breaking Tax News for Teachers
“This highly popular write-off allows millions of K-12 teachers, and others who qualify, to deduct as much as $250 of unreimbursed expenses for classroom supplies. The law expands the provision to include professional-development costs and indexes it for inflation.”- The Wall Street Journal 12/18/15 Teachers just received a welcome holiday surprise. They will now be…
Gate Keepers from Hell
The investment options contained in most 403(b) plans, in the words of the French, are ‘garbage’. The majority are chosen by conflicted Compliance Third Party Administrators (CTPAs) who are paid by the vendors or, incredibly, even owned by them! Pseudo “preferred provider lists” are created and teachers become cannon fodder for greedy, large insurance companies…
Annuities of Mass Destruction
Unlike the evasive WMD’s that were never found in the Iraqi desert, expensive and inappropriate annuities are all the rage in many teachers retirement plans. This practice must be stopped before the retirement dreams of many educators are blown to smithereens. William Bernstein, one of the sharpest minds in the investment world once stated,…
When Business Dares to Get Personal
It is often said that business and personal matters need to be compartmentalized with a solid barrier between the two. When it comes to meaningful financial planning, nothing could be further from the truth. I should know, that is how I ended up in this business, when I had little interest about finance at all….
Revenge of the Teachers
My name is Tony Isola. My message is crystal clear. I am sick and tired of seeing teachers being ripped off in their retirement plans. I have reached my breaking point. This ends today. Right now! This travesty has largely been ignored by the financial media and grossly under-served by the adviser community Our mission…
This Is Boston Not L.A.: A Primer on Financial Poseurs
Definition of Poseur: “A person who pretends to be what he or she is not: an affected or insincere person.” When I went to college in Boston during the 1980s, there was a great debate taking place. I am not talking about whether the Socratic Method was still a relevant teaching strategy. The issue was much…
Everyone Has a Plan Until They Get Punched in the Mouth
Aphorisms are short bursts of knowledge that you really have to think about. In our immediate gratification society, this is no easy task. Some of the greatest investors in the world spend an inordinate amount of time thinking. You can include Warren Buffet and Charlie Munger at the top of this list. Revisiting these timeless bits of…