“Mr. Gorbachev, open this gate. Mr. Gorbachev, tear down this wall.” — President Ronald Reagan, June 12, 1987 I was reminded of this famous quote at a recent educational event my firm gave for our clients. I was explaining why many variable annuities have high surrender charges, or extra fees, if you wish to get…
Coach Steve Lavin Has a Process, and So Should You
“I can’t be a coach that is more concerned about the winning than the process. Even if it means at the end of the day it ends up costing you your job. It’s the way I operate.” Steve Lavin, Basketball Coach, St. John’s University This was Lavin’s response to the reaction to his suspension of…
What Investment Advisors Can Learn from Dr. Seuss
While Dr.Seuss is known for writing children’s books, his timeless sayings would go a long way towards cleaning up the often shady world of investment advice. It would be most beneficial to investors if advisors would apply the moral lessons from his various stories (far more than any score on the Series 7 exam). It…
For “That Guy ” Who Expects a 20% Annual Return
‘As they talked, the client told Ms. Sun he expected to make 20% a year in the stock market.” The Wall Street Journal, “Advisers Act to Cool Expectations” 5/10/2015 Many investors have become irrational in their investment expectations due to the market’s recent bull run. The S&P 500 has averaged over a 20% yearly gain…
Why Congress Provides Poor Protections for Average Investors
“They seem to be doubling down on another massive rule-making that is going to harm thousands of low and middle income families. Once again, I find Mrs. Warren and the White House offering a solution in search of a problem, and we are going to push back on behalf of Americans trying to invest their…
Tales of the Rescue Clients
Many people will adopt so called “rescue” dogs or cats. This is a very noble endeavor. These animals are rescued from cramped, lonely kennels and offered a second chance from a loving family. This is also a much better story than hearing about another purebred being flown in from the Midwest at a cost equivalent…
Obama vs. Savers ???
“The White House moves to take away choices for middle-class investors.” The Wall Street Journal, 2/26/2015 This is the crux of an editorial in The Wall Street Journal (“WSJ”) castigating President Obama for his Administration’s attempt to force investment advisors to look out for their clients’ best interests instead of gouging them with high-fee products…
America’s Top (Real) Financial Advisors
“We looked at assets under management, revenues generated for advisors’ firms, and quality of practices.” Barron’s 2/23/2015 As Dana Carvey’s Church Lady used to say, “Isn’t that special?” Barron’s magazine came out with their Top 1,200 Financial Advisors list this week. I would question the definition of their term “Top”. Does this refer to the…
Ten Wall Street Pick-up Lines to Avoid
“If your proposed marriage contract has 47 pages, I suggest you not enter.” This quote by Charles Munger hammers home the role of trust in an investment relationship. Michael Kitces of Nerds Eye View wrote a post entitled “What is the philosophy of your financial planning firm? It deals with what an advisor doesn’t believe…
What We Think… We Become
This quote from Buddha succinctly summarizes the all-important psychological component of investing. While the term “mental toughness” is a term more recognizable in professional sports, it is also a critical aspect of a successful investment process. In professional sports, teams get to keep their trophies. Unless you are a little league team from Chicago, championships…
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