The Derivative Project
Yale Professor Ayres’ Proposed DOL Financial Sophistication Test is Brillant – Part II

Yale Professor Ayres’ Proposed DOL Financial Sophistication Test is Brillant – Part II

The Whys Behind Super Normal Profits for Wall Street in 401k Plans:   What is Yale Professor Ayres’ proposed solution to protect consumers from Wall Street shenanigans in 401k plans?  Double down!  Now that the facts and transparency are coming out about the skimming, over the last 30 years, from workers’…

Yale Professor Ayres’ Proposed DOL Financial Sophistication Test is Brilliant – Part I

Yale Professor Ayres’ Proposed DOL Financial Sophistication Test is Brilliant – Part I

Yale Professor Ian Ayres has the solution for any retirement investor that might dare to opt-out of a poorly performing 401k plan default option and seek to select an investment that is in his or her best interest.  Here is the link to his proposal, in a February 2014 white…

Recommendations to Senator Levin’s June 17, 2014 Hearing on Impact of Conflicts on Investor Confidence

Recommendations to Senator Levin’s June 17, 2014 Hearing on Impact of Conflicts on Investor Confidence

The Permanent Subcommittee on Investigations (PSI), chaired by Senator Carl Levin (D-MI) will hold a hearing on June 17th on “Conflicts of Interest, Investor Loss of Confidence and High Speed Trading in U.S. Stock Markets”. In particular, the subcommittee “will focus on the conflicts of interest that arise between the…

Flash Crash Update and Background Information for Senator Levin’s Hearing

Flash Crash Update and Background Information for Senator Levin’s Hearing

Senator Carl Levin will hold a hearing on June 17th to examine the impact of conflicts on consumer confidence. “The panel will focus on how brokers balance the obligation to give customers best execution against services they provide for other brokers and trading venues”, according to the statement. We reported…

A Guess at Why Larry Fink is Warning on Leveraged ETF’s

A Guess at Why Larry Fink is Warning on Leveraged ETF’s

Larry Fink, CEO of Blackrock rattled the ETF business last week, pronouncing leveraged ETF’s have the capacity to blow up the system. Reuters describes Mr. Fink’s warning here this morning, Blackrock’s Fink jolts ETF business with blow-up warning For background purposes, please read the Investment Company Institute’s write-up on closed…

It’s Financial Literacy Month:  Ignore Wall Street Workplace Curriculum

It’s Financial Literacy Month: Ignore Wall Street Workplace Curriculum

Bloomberg, New York Times, CNBC and your workplace 401k/403b “financial education curriculum” are all designed to keep the the financial services industry booming, on your Nickel.  Control of the media message, Congress, billions of dollars of advertising and the workplace curriculum have prevented normal supply and demand forces to operate…

What to Make of Pinnacle Advisory Group’s Fee Pyramid:  Your Road Map to Retirement Financial Advice Fees

What to Make of Pinnacle Advisory Group’s Fee Pyramid: Your Road Map to Retirement Financial Advice Fees

Mr. Kitces tweeted this article today on a recent study done by Vanguard, that contends that an Advisor adds 3 % to an investor’s returns. Are retirement investors at Pinnacle Advisory Group, that pay 3.30% in “advice” fees, actually falling below industry benchmarks, after mutual fund or managed account fees,…

Hello New York Times: Please Define “Conventional Money Management”

Hello New York Times: Please Define “Conventional Money Management”

The New York Times is doing a disservice to every retirement investor in their recent review of the “Robo-Advisors”, “Sites to Manage Personal Wealth Gaining Ground” The New York Times states: “The biggest selling point is that these relatively new sites are often far less expensive than conventional money managers,…