"Non-securities-licensed insurance agents — those who hold an insurance license but not a securities license — can recommend the second part of the equation without a problem. The first part is where these agents break state and federal law, according to regulators and attorneys. Agents may be able to legally recommend rolling from a cash or insurance position in a 401(k), but not from a securities product like a mutual fund, where the bulk of 401(k) assets are held"Read More
“Your phone rings once and the caller leaves no message. Thinking you missed a call, you call the number back.
Someone answers or maybe you get a recording. You stay on the phone listening to the person or trying to decipher what the recording is saying.”Read More
"Many investors see a puzzle of issues to navigate and understand—and they’re right. Because few regulations govern what funds can be categorized as a socially responsible investment, investors could end up supporting activities they oppose. For example, some fund companies have simply recategorized existing products without changing their underlying process or holdings.5 And then there’s the industry jargon. Terms like “exclusionary approach” are prevalent when simply saying “screening out companies” conveys the same point in a more understandable way."Read More
"The forgiveness program is just one part of a fundamentally broken student loan servicing system, as the Department of Education’s own inspector general pointed out last week. In a scathing report, he said that the organizations the department pays to help borrowers with repayment were out of compliance on 61 percent of the 343 interactions it monitored from 2015 to 2017. Mr. Shafer’s servicer, FedLoan (which is part of the Pennsylvania Higher Education Assistance Agency), was among the worst."Read More
"That said, he says “we believe ESG is a long-term movement. It’s already made huge ground in the institutional space, and it takes time to percolate to the retail space. We’re seeing the amount of inquiries from advisors and investors now that far outweighs anything we’ve gotten [in the past.]”Read More
"Most people choose a career in the investment business to make money; Jack Bogle chose to use that career to make a difference. Rest in peace, Jack. You’ve done enough"Read More
"Gundlach sees emerging-market stocks as preferable to the S&P “relativistically,” in particular if the U.S. dollar weakens. He also cautions that investors should avoid “the value trap” of European equities.
“There’s plenty of room for Fed rhetoric [about tightening] to soften up and that would weaken the dollar,” Gundlach said. “I would not be surprised to see it us go to 94″ on the U.S. Dollar Index (DXY), which is trading today at 95.3."Read More
"So how do we get there? The starting point to that conversation is recognizing that the Fed more likely than not made an error by boosting rates this month. Growth is slowing and inflation remains low while downside uncertainty is on the rise. While the Fed resists reacting to financial markets, the reality is that the downdraft in equities has gone on long enough to warrant additional caution. There is also plenty to worry about on the international side of the equation, from China to Brexit. And finally, policy uncertainty only increases with each passing day of the Trump administration."Read More