Nerd's Eye View blog

Being A Fiduciary Is About More Than Just Doing What You THINK Is Right For The Client

June 8, 2011 01:25 pm 4 Comments CATEGORY: Planning Profession

As the fiduciary tide rises, and more and more financial planners choose to be recognized as fiduciaries (either by choice of regulator, or the various fiduciary oaths taken under the CFP certification, NAPFA or FPA membership, etc.), there seems to be an increasing casualness towards what it means to be a fiduciary. The basic refrain seems to be "Sure, I'm a fiduciary, I only do what I think is in my client's best interests."

But the reality is that being a fiduciary is about more than just doing what you THINK is in the client's best interests; it's about having a process to reasonable ensure that what you do actually IS in the client's best interests!Read More...

Schwab Launch of Franchise System for Independent Advisors to Open Local Branches Looks Like Good Opportunity

June 7, 2011 04:13 pm 2 Comments CATEGORY: Practice Management

The big news this week is that Schwab has announced plans to allow independent advisors to franchise a local Schwab branch, receiving support from Schwab in the form of a (small) starting book of clients, financial support, a turnkey system with the latest Schwab technology, and perhaps most important: the Schwab brand name. Although the early response form some is that this will potentially disrupt existing Schwab Institutional relationships, I have to admit: to me, it sounds like a great opportunity for some entrepreneurial advisors - especially breakaway brokers.Read More...

First, Do No Harm

June 7, 2011 01:05 pm 3 Comments CATEGORY: Planning Profession

If you’ve decided that you are willing to accept the burden, the issue becomes how do you prevent something like what happened at Wealth Management LLC happening to you? If upholding a fiduciary duty is not enough, what will it take to properly respect the burden? I don’t think I have the answer, but I will suggest a place to start:

“Primum non nocere - First, Do No Harm”

The Burden We Bear

June 6, 2011 02:14 pm 7 Comments CATEGORY: Planning Profession

"It wasn't a Madoff thing, but the effect was just the same."

Words forever etched in my mind and words that haunt me daily.

In what feels like another lifetime, I worked at a well-respected fee-only financial planning practice. This practice gave me the opportunity to find my calling and my passion. I learned what it meant to be deeply committed to working in the interest of others and to taking ownership of my responsibilities to others.

Unfortunately, those things were not enough to protect clients from irreparable and devastating harm. Unfortunately, none of those things taught me the most important lesson. Unfortunately, none of my learning including an understanding of the heavy burden each of us in the financial planning world carries.

Hopefully, this piece can reach a few of you and help you understand the burden well, and help you better serve and protect the clients you work for.
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Greg Valliere’s Insider View of Washington – FPA NorCal Keynote Session (Twitter Style!)

June 6, 2011 12:44 am 0 Comments CATEGORY: Conferences

Day 2 of the 2011 FPA NorCal regional conference wrapped up with a keynote session by Greg Valliere, of the Potomac Research Group, sharing his perspective on the activities in Washington now and in the coming years. Here are the highlights... as captured on the #FPANorCal twitter hashtag!

Day 2 Highlights of FPA NorCal Conference – Twitter Style!

June 5, 2011 08:00 pm 0 Comments CATEGORY: Conferences

Continuing our series for the 2011 FPA NorCal regional conference, here are the highlights from Day 2, as broadcast from the incredibly active Twitter stream on the #FPANorCal hashtag!

Michael Lewis’ Perspective on Wall Street – FPA NorCal Keynote Session (Twitter Style!)

June 5, 2011 02:05 pm 0 Comments CATEGORY: Conferences

Day 2 of the 2011 FPA NorCal regional conference featured a keynote session by Michael Lewis, author of "The Big Short" to share his perspective on Wall Street and the recent financial crisis. Here are the highlights... as captured on the #FPANorCal twitter hashtag!

Day 1 Highlights of FPA NorCal Conference – Twitter Style!

June 4, 2011 10:09 pm 0 Comments CATEGORY: Conferences

The FPA NorCal regional conference ran as it usually does, on the Tuesday/Wednesday following Memorial Day weekend at the Palace Hotel in San Francisco. Pulling over 600 attendees from across the country, the event is on par with any national conference in the financial planning space. Here are the highlights from Day 1, as broadcast from the incredibly active Twitter stream on the #FPANorCal hashtag!Read More...

Economic Outlook Highlights from Neel Kashkari – FPA NorCal Opening Session (Twitter Style!)

June 4, 2011 03:31 pm 0 Comments CATEGORY: Conferences

This past week featured the 2011 FPA NorCal regional conference. Pulling over 600 attendees, don't let the "regional" label fool you - the event is on par with any national financial planning conference! The opening general session event featured Neel Kashkari, currently a managing director with PIMCO, and former chief of the Trouble Asset Relief Program (TARP) for the Federal government. Here are the highlights... as captured on the #FPANorCal twitter hashtag!Read More...

Questioning Whether A College Education Is Worth It – Are We Measuring The Results Wrong?

May 29, 2011 05:13 pm 15 Comments CATEGORY: Human Capital

As the cost of college continues to rise, and more and more students graduate in debt, and then try to enter a difficult job market, many have begun to question: is college actually worth the price?

The basic formulation is pretty straightforward: by going to college, you spend 4(+?) years not in the labor force, and spend money outright on the cost of college itself; in return, you have a higher employment income for all the years that follow college until you retire, which in theory can make up the college tuition outflows plus the years of foregone earnings.

However, as college gets more expensive, and the "bonus" to future salary for having a college education doesn't seem to be what it once was (especially for many liberal arts degrees), it's getting harder to make the case that college is still worth it.

There's just one problem: while you earn one future income without a college education, and a higher future income with a college education, neither projection accounts for the crucial income risk of unemployment.Read More...