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Found 25 results

  1. https://www.wsj.com/articles/how-financially-literate-are-you-really-lets-find-out-1508421702
  2. Be on your guard in coming days against those drawing the wrong investment lessons from the 1987 stock-market crash—the 30th anniversary of which we “celebrate” on Oct. 19. https://www.wsj.com/articles/how-to-weigh-the-odds-of-a-stock-market-crash-1507515241
  3. Not me, I'm sticking to index funds https://www.wsj.com/articles/an-active-fund-giant-wins-back-some-investors-1507514940?tesla=y
  4. How to Get a Straight Answer About Adviser Fees If you get a complicated explanation of how much you’re being charged on your investment account, it’s time to walk away, experts say Michael Wursthorn May 7, 2017 10:16 p.m. ET Most investors don’t know how much they are paying their financial adviser. Here are four questions to ask. Po: iStockpo/Getty Images ByMichael Wursthorn Don’t know how much you pay your financial adviser? Just ask, wealth-management experts say. “The very least a financial adviser owes you is a transparent explanation of what’s going on,” says Terrance Odean, Rudd Family Foundation professor of finance at the University of California, Berkeley’s Haas School of Business. If an adviser offers a complicated explanation, several different figures or flat-out says, “I don’t know,” Dr. Odean and others say it is time to ditch him or her. “Some may make it seem like rocket science. But it isn’t. They’re using complexity to confuse the consumer,” Dr. Odean says. “If you’re not getting straight answers you understand, go elsewhere.” Most investors don’t know how much they are paying their financial adviser, with 60% of investors surveyed by J.D. Power & Associates last year saying as much. But brokerage firms, pushed by new regulations such as the Labor Department’s fiduciary rule, are trying to change that. Bank of America Corp.’s BAC 0.08% Merrill Lynch, for example, rolled out new monthly client statements earlier this year that more plainly state investment fees, including advisory fees, commissions on purchases of stocks and bonds, and charges related to using automated-teller machines. Still, account statements can be lengthy, and experts say financial advisers need to be ready to provide a simple explanation of how they are compensated. Here are some questions to ask: 1. How much do you charge me for advice? Ask your financial adviser if you are charged an annual fee, usually split across each quarter of the year, or pay a commission for each transaction. These charges should also be available on clients’ account statements under headings such as “fees and charges,” or factored into the overall performance of a given investment. 2. Are there costs tied to individual investments? Some mutual funds charge so-called 12b-1 fees for marketing or distribution, which are often equal to 0.25% of a fund’s assets each year, but can be as much as 1%. Unlike commissions, 12b-1 fees don’t appear on transaction confirmations or client account statements. How Much Do You Pay in Adviser Fees? 0:00 / 0:00 Again, your financial adviser should be willing and able to explain any underlying investment costs. But investors can also rely on research firm Morningstar or the Financial Industry Regulatory Authority’s website (finra.org/fundanalyzer) to determine those costs. Investors in fee-based accounts should also ensure that any 12b-1 fees are rebated against their annual fee; otherwise, the adviser may be getting paid twice for the same investment, Dr. Odean says. ​These days, most brokerage firms either rebate the 12b-1 fee or offer mutual-fund shares without it. 3. In a managed account, a re there any extra costs? More financial advisers are encouraging their clients to put their money in managed accounts—personalized portfolios of stocks and bonds chosen by a money manager. Such accounts are usually charged a fee by the brokerage firm, similar to your run-of-the-mill fee-based account. But they also tend to come with an added fee of as much as 0.5% charged by the investment firm managing the account. At Morgan Stanley MS -0.44% and Merrill, those fees, together with what the brokerage firm charges, could push annual costs as high as 2.5% of the portfolio’s value. 4. What other services do you provide? If your adviser has simply put you in a diversified portfolio while charging a fee of as much as 1.5%, be sure to ask if he or she is providing any other services, such as tax or estate planning. After all, advisers earn their fee regardless of how those investments perform. And there are cheaper alternatives for simple asset allocation, such as robo advisers. “An adviser charging that much should be providing more than just a suggested portfolio,” Dr. Odean says.​ Mr. Wursthorn is a Wall Street Journal reporter in New York. Email him at michael.wursthorn@ wsj.com. Appeared in the May. 08, 2017, print edition.
  5. What’s My Investing Fee? A Frustrating Quest Our reporter thought she had a simple question, but the answers were anything but Andrea Fuller May 7, 2017 10:17 p.m. ET A Wall Street Journal reporter was just looking for a simple answer about her investment fees. There was nothing simple about the result. Illustration: Gary Hovland for The Wall Street Journal ByAndrea Fuller I thought my question was simple: How much was I paying my investment adviser in fees? After a series of phone calls that elicited the kind of confusion and frustration I have rarely experienced outside of interactions with cable-company customer-service representatives, I think I have an idea. Barely. Describing the fee disclosures of my adviser as opaque would be generous. The experience left me wondering whether someone even less savvy than me, a Wall Street Journal reporter, would be able to navigate this system, to ferret out the good information from the bad. Getting nowhereIn most offices, I suspect that people try to stay up on sports or television to prime for water-cooler gossip. But at the Journal, I was growing increasingly ashamed of how little I knew about the workings of my own investments. So, I decided to research what fees I paid to invest with my financial-advisory company—one of the largest in the U.S. Investing in Funds & ETFs All of my investments are in mutual funds or exchange-traded funds. Though I don’t have a finance beat—I am an investigative reporter who specializes in data analysis and computer programming—I am still guided by the Journal’s conflict-of-interest policy that aims to prevent conflicts between employees’ investments and the subjects we may cover. So I don’t do any individual-stock investing. I assumed the fee information I was looking for would be readily available in the documents section of the company’s website. Wrong. I did see a toll-free number for customer support, so I gave them a ring. I told the man who answered that I wanted to find out what fees I pay. In retrospect, this was a little like asking your spouse how much divorce lawyers cost. As he began to fret, I assured him that, no, I wasn’t unhappy, just curious. There is a $125 annual flat fee, he told me. How Much Do You Pay in Adviser Fees? 0:00 / 0:00 Alarm bells went off. That’s it? I asked. That can’t be it. I assumed there was a percentage charge on my investments. He laughed. We’d love to charge that, he said. But no, $125. Was that the only fee, I asked? I was increasingly dubious. Well, he said, each fund in which you’re invested has internal fees. How did I find those? And so began our journey into the bowels of the investment firm’s website. He suggested I click on various pages, only to discover that no, the fees weren’t listed there. By the time he suggested that I go to Yahoo Finance and look up various funds to find out about their fees there, I knew I’d had enough. Twenty minutes into the call, I said I had to go. I hope this has been helpful, he told me. I assured him: It wasn’t. I went back to my desk to seethe. There is a local financial adviser at the firm whom I meet with periodically for account reviews, and I decided to shoot him an email asking how I could find out all the fees I pay, and where these were documented. I also wrote an email to a colleague with the subject line, “MAY PULL HAIR OUT.” An answer of sortsBut apparently my irritation set the company on alert that we had entered the breakup danger zone. The man I had spoken with left me two voice mails promising that he had the information. I conceded to returning their calls after I received a third from his supervisor suggesting that, really, he could help me. The man I spoke with this time proceeded to tell me the opposite of what the previous adviser had told me. No, there was no annual $125 fee. That was only for people investing in individual stocks. My portfolio had an annual fee of 0.85% of assets, deducted quarterly. So what about these internal fees? He said those ranged from 0.4% to 0.8% of assets annually. Well, then, what was my actual number? He said that I was invested in the “moderate” risk basket, so the expense averaged to 0.55%. Fees would have been higher with more-aggressive investments, lower with conservative ones. I thanked him and asked where I could see all this online. He said that he wasn’t sure, but that the information would be in whatever packet I received when I enrolled in the program. I told him this document was either long gone or in the drawer where old IKEA instructions go to die. He said I could always try looking up the individual fees on Morningstar’s website. I thought that this was about as much as I could stomach of the fee-finding quest. I finally had an answer to what fees I paid, even if I remained in the dark about where they were documented. But about that time, I received a response from the adviser who normally schedules my portfolio reviews. He also cited me the 0.85% number. And he said the internal expense fees were “around 0.5%.” I wrote him back and told him that I had finally spoken with someone who gave me the right answer, and that the number was 0.55%. He called me, alarmed. It’s actually 0.5%, he told me. Well, the other guy told me 0.55%, I said. No, he told me, you’re in an account with “moderately conservative” risk, and the figure is 0.5%. I told the man who answered that I wanted to find out what fees I pay. In retrospect, this was a little like asking your spouse how much divorce lawyers cost. Po: iStockpo/Getty Images The other guy told me I was in the “moderate” account, I said. Pause. Oh yes, as it turns out, you are in the moderate account, he said. The 0.55% was correct. My combined fee was 1.4%. And as for those documents? “I am trying to find a client approved document that provides you with the internal expenses on the portfolio you are invested in,” my adviser wrote. I am still waiting. ***A spokeswoman for Ms. Fuller’s investment-management firm later said she was sorry the reporter had a bad experience. She provided instructions and documents with further information on fees—but no documentation of Ms. Fuller’s internal fund fees—and said the firm updated its statements in recent months to more clearly detail fees paid. Ms. Fuller is a reporter for The Wall Street Journal in New York. Email her at andrea.fuller@wsj.com. Appeared in the May. 08, 2017, print edition.
  6. The Nov. 2 summit, dubbed "The Seismic Shift Senior Leadership Forum," was a day-long brainstorming session about the mass movement of investors away from money managers that try to beat the market. Clients are flocking to index-tracking funds that offer simplicity, lower fees and the assurance of matching the market. http://news.morningstar.com/all/dow-jones/us-markets/201612141512/active-funds-brainstorm-on-outflows-wsj.aspx
  7. Our relationship to money changes as we get older. So do the mistakes that we make with it.Every new stage of life brings new financial strategies we need to follow. And at every stage we find new ways not to follow those strategies, costing ourselves money and jeopardizing our security. http://www.wsj.com/articles/the-biggest-money-mistakes-we-makedecade-by-decade-1477275181
  8. As strong demand has pushed up bond valuations—depressing their already low yields—some investors and financial advisers are saying “enough” and are turning their backs on the sector. Not so fast, say many bond professionals. http://www.wsj.com/articles/keep-your-bonds-but-reduce-the-risks-1476064923?mod=WSJ_Your_Money_3up
  9. Remember that kid in your high-school geometry class who raised his hand and asked the question everyone knew the answer to? Remember how the class laughed and thought he was so dumb? It turns out that kid wasn’t dumb. That kid was humble. More humble than most of us. And being humble, when it comes to money, is incredibly smart. http://www.nytimes.com/2016/10/05/your-money/one-of-the-smartest-money-strategies-is-asking-when-you-dont-know.html?&moduleDetail=section-news-1&action=click&contentCollection=Your%20Money&region=Footer&module=MoreInSection&version=WhatsNext&contentID=WhatsNext&pgtype=article
  10. Fidelity Investments, one of the largest money managers known for hand-picking stocks and bonds, is making a push to sell more index-tracking funds. http://blogs.wsj.com/moneybeat/2016/05/13/fidelity-makes-index-fund-push/
  11. “In most states, the minimum level of education needed to become a broker or an investment adviser is lower than the education requirement needed to become a hairdresser or an electrician http://blogs.wsj.com/moneybeat/2016/04/08/how-come-its-still-harder-to-become-a-hairdresser-than-a-financial-adviser/
  12. http://graphics.wsj.com/investing-for-retirement-quiz/
  13. http://www.wsj.com/articles/the-hidden-reasons-people-spend-too-much-1446433200
  14. Yea, I got 100% http://blogs.wsj.com/totalreturn/2015/03/25/a-three-question-test-of-financial-literacy/tab/print/?mg=blogs-wsj&url=http%253A%252F%252Fblogs.wsj.com%252Ftotalreturn%252F2015%252F03%252F25%252Fa-three-question-test-of-financial-literacy%252Ftab%252Fprint&fpid=2,121
  15. Some nice comments from Allan Roth about Jack and please sign the petition. http://blogs.wsj.com/totalreturn/2015/03/03/why-you-owe-your-freedom-to-jack-bogle-roth/tab/print/?mg=blogs-wsj&url=http%253A%252F%252Fblogs.wsj.com%252Ftotalreturn%252F2015%252F03%252F03%252Fwhy-you-owe-your-freedom-to-jack-bogle-roth%252Ftab%252Fprint&fpid=2,121
  16. Money can make or break relationships. So start saving and you will be on your way. http://blogs.wsj.com/totalreturn/2015/02/12/moving-in-together-financial-advice-from-a-dad/tab/print/?mg=blogs-wsj&url=http%253A%252F%252Fblogs.wsj.com%252Ftotalreturn%252F2015%252F02%252F12%252Fmoving-in-together-financial-advice-from-a-dad%252Ftab%252Fprint&fpid=2,121
  17. Among all mutual funds that invest in big U.S. stocks like those in the S&P 500, only 9.3% are beating the index through Sept. 30, according to Denys Glushkov, a senior researcher at Wharton Research Data Services at the University of Pennsylvania. Although the year isn’t over, that is well under the previous annual low of 12.9% in 1995 and the average of 38.6% over the past quarter-century. Data through Oct. 31 from Lipper, a fund-research firm, show results nearly as dismal. http://blogs.wsj.com/moneybeat/2014/11/28/as-indexes-soar-active-stock-pickers-cant-get-off-the-ground/tab/print/
  18. http://online.wsj.com/articles/five-questions-to-ask-before-stealing-from-your-401-k-1412539523
  19. For years vanguard was a best kept secret. Consumers didn't know about its unique structure and financial salesmen weren't about to tell you. Things hare changing fast and i just hope fame doesn't change their philosophy of doing right by the investor http://online.wsj.com/articles/investors-pour-into-vanguard-eschewing-stock-pickers-1408579101
  20. http://online.wsj.com/articles/is-your-portfolio-too-diversified-1408032582
  21. http://online.wsj.com/articles/a-reporter-s-crash-course-in-mutual-fund-investing-1407106284
  22. http://online.wsj.com/articles/percentages-vs-dollarsa-battle-for-investors-attention-1404679629#printMode
  23. http://blogs.wsj.com/moneybeat/2013/06/28/the-intelligent-investor-saving-investors-from-themselves/
  24. http://online.wsj.com/news/articles/SB10001424052702303918804579109440334295698#printMode
  25. John Bogle is still with us reminding us of all things investing http://online.wsj.com/article/SB10001424127887323723104578187613616962492.html?mod=WSJ_Investing_MoreHeadlines#printMode
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