Inside Information

Here's a great idea: let's add something risky to your investment portfolio. [Read more »] 

We don't recommend that you read the health care reform bill unless you have a serious case of insomnia. [Read more »] 

Yes, this is a Media Reviews message, but before you get to that, I want to pass on two things: an offer, and a terrific analysis of a situation that we're all talking about.

The offer is from Pershing; the company has agreed to invite readers of Inside Information--a rich trove of thought leaders in the profession--to attend the INSITE 2010 Conference at no cost. (The current registration fee is $195.) The conference takes place Wednesday, June 9 to noon on Friday, June 11 in Hollywood, FL; the speakers include political consultant David Gergen, Hank Paulson, Mark Tibergien, Moshe Milevsky, Daniel Pink and Jeremy Siegel.

If you're interested, register at www.INSITE2010.com, register as an attendee, and when prompted, enter the coupon code INSITEVeres. (When you enter the code, you'll bypass the payment fields. If there's a problem, you can contact Pershing at INSITE@Pershing.com.)

The analysis comes from Ron Rogé, who has been a pioneer in the advisory profession and one of the very first people I have ever heard talking about the fiduciary standard. When the Goldman Sachs indictment was announced, Ron was dismayed at the way the situation was covered by the media and discussed by the regulators--who, as he says here, seem not to realize that the fact pattern raises the most basic possible issue of consumer protection.

I encourage you to read it and, if you want, pass it on--it's the best, clearest evaluation of the essential point that I've yet seen. (Media Reviews follows.) [Read more »] 

Yes, but what's the point of life planning? What do you DO with this "relationship with money" information that you collect? Roy Diliberto suggests that clients who reach their own Aha! moments can become better clients, better consumers, more functional people--which ultimately benefits the planning process without a lot of interference on your part. Meanwhile, this month's FA cover story points out that smaller advisory firms have thrived despite dire predictions to the contrary; technology and a willingness to work out of your home contribute to the success of microfirms--and they're not likely to go away.

There's also an article on managed payout funds--how they came to market at exactly the wrong time, and are now digging their way out of exactly the worst-case scenario for retirees: a disastrous first year of making scheduled distributions. Meanwhile, I was just about to think the housing crisis was over (prices appear to be rising here in San Diego) when my son sent me notice of a beautiful estate in a ski resort area in North Carolina which was foreclosed on by a local bank at almost $2 million, that is now on the market for $700,000. The higher end of the market clearly has some recovering to do... [Read more »] 

Ross Levin and Jon Gallo offer interesting comments on, respectively, the idea of moving on instead of trying to change the past and defining how investment responsibility should be handed out to trustees. But the real action in this review is in the Economist articles. The first offers an outside-the-country view of the recent health care reform package, and the conclusion is cautiously optimistic--although, as you'll see from reading the review, the impact of some of the most important provisions won't be known for a decade. Meanwhile, there is evidence that America's economy is completely remaking itself into a less consumer-driven, higher exporting, more energy-independent, and generally more urban society. Britain, meanwhile, faces years of recovery. And the final article offers a glimpse of the politics of the future, and some of the issues that we may all be debating as more voters get older.

I hope your tax season is winding down, and that it generally went smoothly, and that you were able to get your quarterly reports out on time. For the planning profession generally, this may be the most stressful time of the year--but, as you know, much of the stress will soon be over.
[Read more »] 

Are financial planners the only professionals who have to guard against conflicts of interest? [Read more »] 

The CEO of Fiduciary 360 offers a look at what the next SEC study on regulatory reform might, if its researchers were motivated, find and conclude about our dysfunctional industry. [Read more »]