The Derivative Project

Financial advisors

Trending: Are Bloomberg, Huff Post, Rolling Stone Promoting Phony Consumer Retirement Advocates?

Trending: Are Bloomberg, Huff Post, Rolling Stone Promoting Phony Consumer Retirement Advocates?

Summary of Issue – January 13 White House Memo on Conflicts of Interest -StockBroker or “Fiduciary” Advisor Registered with the SEC On January 13th, a five page White House memo, “Draft Conflict of Interest Rule for Retirement Savings”, by Jason Furman and Betsey Stevenson, argued that the costs of conflicted advice are…

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…

Did Professor Shiller’s Speech to NAPFA Forget the Footnotes?

Did Professor Shiller’s Speech to NAPFA Forget the Footnotes?

Nobel Prize winning economist Robert Shiller of Yale University delivered a speech* on December 4, 2013 hosted by the National Association of Personal Financial Planners (NAPFA) and Forbes. Did the financial planning industry quickly capture remarks to solely advance their Agenda: “Robert Shiller gives his take on the future of advice;…

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…

Geithner Steps Up Action on Money Fund Reform: Will the SEC Investor Advisory Committee Take Emergency Action to Protect the Retail Investor?

The Derivative Project submitted a request to SEC Chair Shapiro and a request for Discussion today to the Investor Advisory Committee to consider the misrepresentation by the money market fund industry to retirement investors. Money market funds now present significant systemic risk, as presented by the Federal Reserve Bank of…

Material Conflicts, Lack of Training, Lack of Transparency Are at Heart of Financial Crisis

Floyd Norris of the New York Times has a piece today on the Barclay’s “Libor scandal”, Banks Ability to Rig Libor Shows a Change is Needed.  The premise of the piece is excellent, however, Mr. Norris and The New York Times, continue to rely on a circle of sources for…

Raise Your Hand if You Think Your Retirement Adviser is Giving Advice to Help You Retire

Yes, every hand went up in the U.S.  Every retirement saver thinks that someone who is “registered” by FINRA or the SEC has been trained and vetted and is acting in their best interest when one provides them advice for their retirement savings. Attention retirement savers! There is a quiet…

House Republicans are Ignoring the Real Needs and Protections Retail Retirement Investors Require in Today’s Markets

Wall Street is not only limiting the potential growth of your retirement accounts, they are contributing to lackluster economic growth. While the Tea Party is adamant that we cut government spending and entitlements immediately to grow the U.S. economy, they are simultaneously re-enforcing the behaviors that got us all in…