The Bubonic Plague of high-cost variable annuity infestation has extended its predatory tentacles into the classrooms of our children. Invaluable teaching and planning time are at risk due to marketing schemes designed to entrap teachers. While the damage being done to teachers’ 403(b) plans by high-cost variable annuities is irrefutable (see here) something much more sinister has…
Death of a Salesman- Except for 403(b) Plans
Even the big insurers are realizing their products are inappropriate for the average investor’s retirement plans. It is astounding why we are not hearing a peep on why they are perfectly acceptable for public school teachers. I guess they are considered to be a “special” case. The Wall Street Journal put out an article today…
Why is Bernie Sanders Missing the Trend in Financial Services?
Bernie Sanders has accused the financial services industry of being engaged in “the business of fraud;” since this industry comprises about 6% of the U.S. workforce, this is one serious allegation. The good news is it is not true. I need a break from writing about insurance companies and wire houses who often mislead and…
Why Can’t 3.6 Million Teachers Get a Group Discount on their 403(b) Plans?
403(b) plans, which are entrusted with the retirement funds of our nation’s public school teachers, have serious flaws. One of the most obvious defects is the oldest trick in the book: divide and conquer. Companies like Walmart are able to receive massive discounts from their suppliers. The reason for this enormous competitive advantage is they…
Investors Need Abe Lincoln at the Republican Debates
Our current political system puts reality television to shame. The average voter is repulsed and is on the verge of grabbing a pitchfork to storm the Bastille. Individual investors are also paying a steep price for this gross political incompetence. On the birthday of arguably our greatest president, Abe Lincoln, we need to look at this sad situation in much greater detail….
Straight Outta Context
It is preposterous not to include the impact of fees when deciding upon an investment. This is the main reason most teachers’ 403(b) plans are so horrifying. It is almost impossible to make a positive real return when costs exceed 3-4% on your investments. While this statement comes right out of Captain Obvious’ playbook, a…
Fees Knock and Ping Investment Returns
Money spent on car repairs can be as dubious as investment fees. Both tend to be confusing, deceptive, and often unnecessary. The amount of money spent on unnecessary car repairs is mind boggling. The National Highway Traffic Administration estimates that automotive service consumers are scammed out of tens of billions of dollars every year. This…
Your Former Students are Drowning in Debt!
Student loan marketplace Lendedu says 7 out of 10 students leave college with at least some student debt, and on average with a bill of just less than $30,000. Interestingly, Lendedu found about 92% of students don’t know their current interest rate, and 94% don’t know their repayment term. Additionally, 76% of respondents were unsure…
How to choose an Honest Financial Advisor in Ten Minutes
It’s possible a teacher (or anyone else) can choose a good financial advisor in the first ten minutes of an initial meeting. This simple process will save you time, money and plenty of heartache! Our CEO, Josh Brown, brought up a terrific point in one Monday morning meeting. Josh pointed out that Ritholtz Wealth Management’s…
Some Teachers Need Tough Love
It is easy to blame insurance companies and greedy brokers for the awful state of the 403(b) market. There is no disputing their role in this mess. It would be unfair to say they are the only culprits. Individual responsibility and poor choices play a large part, as well. It is time to create a…
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