The Derivative Project

Department of Labor

This Schwab Ad Epitomizes the Disingenuous Advice Industry: Buyer Beware

Charles Schwab was once a leader in doing what is right—a low cost leader – a pioneer in discount commissions.  They are still an excellent custodian and their online tools are top notch. However when Schwab moved into “packaging product” and became the purveyors of “advice” to the retirement industry, they…

Book Review: Larry Doyle’s In Bed with Wall Street: A Must Read, a “Book that Matters”

While many have grown so tired with the hashing and re-hashing of why our systems failed us in the 2008 and 2009 financial crisis, Larry Doyle’s new book, released today, In Bed with Wall Street – The conspiracy crippling our global economy– should be read, shared and discussed, not just by…

Academic Study Reveals Billions of Dollars Wasted on Worthless Investment Advice

The Financial Times reported in a September 21 article that a recent Oxford study revealed billions of dollars were wasted on investment advice that did not increase performance.  The article stated: “The Oxford team found these flows, and the fact that consultants tended to recommend larger funds in the first…

FINRA Survey Identifies Rampant Fraud by “Advisors”: SEC, FINRA – Look In the Mirror

The FINRA Investor Education Foundation released a September 2013 study, Financial Fraud and Susceptibility in the United States, on rampant fraud in the retail investment arena, where 1 in 4 retail investors have been subject to fraud.  The executive summary of this survey states: 1. The ubiquity of fraud solicitations, coupled…

New Retirement Service Eliminates Conflicted Financial Advice and Poorly Performing 401(k)/403(b) Investment Options

Announcing Not On My Nickel New Retirement Service Eliminates Conflicted Financial Advice and Poorly Performing 401(k)/403(B) Plan and IRA Investment Options Not On My Nickel, a research and education service for retirement savers refuses to wait for Washington to fix the retirement system and financial advice industry’s misconduct.  Not On My…

The Fiduciary Debate is But A Sideshow: The Underlying Question is Capitalism or Dependency?

The continuing debate in Congress, the SEC and the Department of Labor on who is and who is not a fiduciary to American’s retirement savers is but a sideshow.  The retirement crisis, can be traced in part to the conflicted role of the middleman advisor, which can be summarized by…

Why Financial Literacy Efforts Failed: Wall Street Wrote the Curriculum and Spread the Message with the help of Public Radio

Experts are baffled by why all the tax dollars and private money flowing into K-12 Curriculum and private foundation support has failed to make a dent in American’s financial literacy score. Here is brief synopsis at CNBC, June 4, 2013, Financial Literacy Efforts Get Failing Grade. With a focus on…

Why the Debate on Fiduciary Duty is Meaningless without End to Mandatory Arbitration

Congress, the Department of Labor and the SEC are all fiercely debating if a stockbroker should act in the best interest of a retirement saver.  Based on current contract agreements an individual retirement investor signs when he opens up an IRA, any claims for losses in their IRA are subject…

Investors, Who Should You Believe About Money Market Reform: Wall Street or Economists and Commercial Banks

Wall Street vs Commercial Banks There is a war going on out there and most investors have no idea, yet Wall Street is insisting they know what is best for every investor.  No surprise, what is in the “investor’s best interest” is in Wall Street’s best interest.  Has your financial…