892 articles · page 42 of 45
“The Securities Industry continues to meander around the 800,000 job level, where it has been stuck for nearly 3 years. March saw the loss of a few hundred jobs.”–BrokerHunter, April 10, 2012 If any investors wonder whether they are getting the best service possible from their brokerage firm or fund company, this employment chart may…
If individual investors have not gotten the message so far, here is another message that comes from the mutual fund industry: The commissions your broker generates are more important than any investment return you receive. Or in investment industry jargon, it’s all about the “yield to broker” and not about anything the client earns.
Belittling and attacking Greg Smith, the ex-Goldman derivatives trader, who wrote about his personal experiences and opinions based on working at Goldman Sachs, has become a cause celeb. But comments from reporters who cover Wall Street show some serious prejudices and deficiencies in their journalistic perspectives.
Revenue sharing is one of the mutual fund industry’s most controversial and least talked about practices. It affects how mutual funds are sold to Registered Investment Advisers (RIAs), how much compensation is paid to mutual fund wholesalers, how conflicts-of-interest are created between RIAs and their clients, how 401(k) plans are structured and what fund they…
Humility is not one of the personal traits held by many people in the investment business. This includes everyone from portfolio managers to advisers to mutual fund wholesalers. Part of this is due to the job.
Of all the astronomical numbers associated with the financial collapse–$8 trillion in lost housing equity from 2001 to 2008, and the $4.7 trillion bailout program–perhaps the largest economic cost of the long-running recession comes from the wasted talents of millions of unemployed Americans. With the official rate of unemployment running at 9%, which translates into…
Maybe it’s an indication of the End Days, or at least the start of a new bull market, but the news today had a number of events which all shared the common themes of greed and rampant ethical abuses among people in the financial services industry. Here are the specifics:…
Whether it is due to demographics or the dismal performance of the stock market or the weak economy, the focus on retirement income has never been greater. So while much of the media’s attention is focused on the big picture, the bulk of Americans approaching and saving for retirement through their 401(k) plans have been…
With over $2.8 trillion in assets at the end of 2088, target-date funds (TDFs) continue to be the default provision favorite for millions of future retirees as part of the Pension Protection Act of 2006. But despite their wild popularity, TDFs have yet to overcome what many consider some fundamental design flaws that make them…
By most measures, the 2008 recession ranks as the worst since the Great Depression. Not only has it eroded the per capita incomes of entire nations (see Mutualfundreform.com story posted Jan. 27, 2012)), but it has also taken its toll on future retirees due to reduced Social Security contributions and pension benefits, accompanied by lost incomes.
Today’s news that U.S. economic growth may not exceed 2% this year had an immediate effect on the stock market. But how long does it take a nation to recover its GDP in a slow growth period? The U.S. economy grew at a less-than-forecast 2.8% in the fourth quarter 2011. For the full year 2011,…
The American Dream is to own a house, but make sure this important purchase is affordable.
It has been one year since the Securities and Exchange Commission (SEC) delivered a report to Congress recommending the adoption of a universal fiduciary standard regulation that would apply to retail advisers and brokers. Now it looks like this long-overdue rule will not even be considered during 2012. The average person would think a year…
While they will not take effect until April 2012, the first changes from the new DOL disclosures have already emerged, months before the new rules are slated to become effective.
“The U.S. job market is showing signs of a sustained recovery. But the country’s prolonged struggle with unemployment will leave scars that are likely to remain for years, if not generations.” –Ben Casselman, The Wall Street Journal, Jan. 9, 2012 While the prevailing mantra for the upcoming election is “job creation,” the better long-term goal…
“Verizon Wireless bowed to a torrent of criticism on Friday and reversed a day-old plan to impose a $2 bill-paying fee that would have applied to only some customers.” —New York Times, Dec. 30, 2011 If a $2 per month fee can reverse the decision of the nation’s largest cell phone company, what will happen…
“Between 1984 and 2009, the median net worth of a member of the U.S. House of Representatives more than doubled, according to the analysis of financial disclosures, from $280,000 to $725,000 in inflation-adjusted 2009 dollars, excluding home equity.
If you participate in a 401(k) plan or have a role in administering one, the year 2012 will be important. The reason: 2012 is when administrators and plan participants will be discussing the little-known practice of revenue sharing and how their 401(k) plan providers charge for their services. On April 30, 2012, the Department of Labor’s (DOL) new fee…
At one time, Europe was considered the trendsetter in fashion, design and political thought. Now, a new study by Greenwich Research shows that Europe is leading the way in fee reductions and introducing new investment products centered around ETFs and specialized funds. The reason for the re-positioning is due to Europe’s new economic realities. The…
Just as momentum is building inside Congress to enact new rules prohibiting insider trading among elected officials, an opposing Objectivist view (advocated by adherents of Ayn Rand) is being aired which contends that insider trading should be legalized. The rationale?
