It seems to me…
-that the investment markets have been, historically, an amazing mechanism for creating traps for the unwary. Right now, they’re waiting until enough large firms launch crypto initiatives (BNY is the latest, after Schwab and Fidelity) before yanking the rug out from under the ‘currencies’ that are backed by nothing and nobody.
-that the brokerage firms had a heavy hand in guiding (ordering?) the SEC to create a ‘best interest’ standard that would sound exactly like ‘fiduciary’ to the average consumer, meanwhile without requiring anything remotely like putting the clients’ interests first.
-that all the companies pestering me to take out loans (‘We’re calling you about your loan application…’) means that securitized unsecured loans and private credit are going to be the next systematic collapse in our investment ecosystem.
-that the next bear market (whenever it comes) is going to once again cull the herd of financial advisors, eliminating firms that focused primarily on highly-profitable asset management rather than labor-intensive full-service financial planning.
-that the new paperless onboarding and ACATS processes—which are dramatically reducing the hassle (and relationship risk) of changing custodians and moving clients to a new platform—are going to lead to market share shifts toward more modern, tech-forward, less-bureaucratic custodians.
-that the largest independent custodian won’t be overly concerned about losing its sub-$1 billion advisory firm relationships.
-that if BD-affiliated reps ever calculated what their broker-dealer relationship is really costing them, there would be an immediate exodus toward independence and fee-only.
-that if BD-affiliated reps were to take their custodial search beyond the largest firms, they would see much greener pastures, better tech and lower operating expenses.
-that whenever Wall Street and large institutions express a desire to bring new ‘investment opportunities’ to unsophisticated Main Street investors, their primary business goal is the opposite of benefiting unsophisticated Main Street investors.
-that every time we hear that Congress wants to ‘simplify the tax code,’ they end up making it more complicated.
-that nobody benefits more from constant tax code revisions than Congressional representatives seeking bribes campaign contributions from lobbyists.
-that whenever private equity firms buy up a company or service provider, the result is never an improvement in the company’s long-term prospects or the quality of client service. (I don’t think ‘never’ is too strong a word.)
-that nearly every free publication or information source you might be reading is unreliable due to the need to not offend advertisers and the interests of large organizations. (Case in point: in which trade magazine have you ever read about the many, many problems with the Schwab conversion of TD Ameritrade accounts?)
-that it’s possible that AI will have the same transformative effect on our society as electricity, and at the same time, that AI is not a great investment theme right now.
-that it has never been more important to pay attention to new fintech developments—and it has never been harder to do so.
-that SEC rules and regulations should be lightened on the advisory community that never participated in the atrocities committed by Wall Street. This would allow greater regulatory resources to be focused on firms whose compensation model encourages a predatory culture and mindset.
-that if the CFP Board is serious about holding its certificants to a fiduciary standard, it should promote a fee-only compensation model. (And being paid fees by a Wall Street firm doesn’t fit the description.)
-that advisors who accept de minimus commissions from occasional life insurance recommendations can still act as fiduciaries for their clients. But this muddies the water and makes it harder to draw clear distinctions that consumers need to rely on.
-that anyone who calls themselves a ‘wealth manager’ is severely limiting their marketing efforts. Very few potential clients (even those with considerable investment portfolios) think of themselves as ‘wealthy.’
-that every ambitious advisor should attend at least one national conference a year and belong to at least one (if not more) of the professional or trade organizations.
-that your attention and your time are your most valuable resources. How you manage them, and what information resources you consume, matter more than you probably realize. (The free trade publications are, by this calculation, not worth what they cost.)