MID-YEAR FINANCIAL ROUND-UP: 2020

Posted on July 2, 2020 by Editor-in-Chief

MID-YEAR ROUND-UP

DR. DAVID EDWARD MARCINKO MBA MEd CMP®

STOCKS: A global stock market crash on March 12 set the worst single-day decline for stocks since 1987. But in Q2, major indexes clawed their way back on the promise of economic reopenings. Filled to the brim with tech companies, the Nasdaq has distanced itself from the Dow and the S&P.

FED: The Fed slashed interest rates in March to stem the economic bleeding, and in early June said it would hold rates near zero through 2022.

OIL: In late April, oil prices crashed below -$37 a barrel as plummeting demand from lockdowns left traders with nowhere to put their oil. Following an agreement by OPEC+ to reduce supply by 9.7 million barrels a day, prices are slowly rebounding back to March’s highs.

MORE: https://www.msn.com/en-us/money/markets/wall-street-is-wrapping-up-its-best-quarter-in-decades/ar-BB166FUU?li=BBnbfcN

“Medical Management and Health Economics Education for Financial Advisors”

CMP® CURRICULUM: https://lnkd.in/eDTRHex
CMP® WEB SITE: https://lnkd.in/guWSApq

Your thoughts and comments are appreciated.

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

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Filed under: Experts Invited, Interviews, Investing | Tagged: STOCK MARKET ROUNDUP | Leave a comment »

RETAIL BANKRUPTCIES 2020

Posted on June 27, 2020 by Editor-in-Chief

Raging On

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Filed under: Investing | Tagged: RETAIL BANKRUPTCIES 2020 | Leave a comment »

The New “Fiduciary” Rule

Posted on June 15, 2020 by Editor-in-Chief

Really? Whose side is your financial advisor on?

By Rick Kahler CFP®

If it weren’t already hard enough to understand whose side your financial advisor is on, it got more complicated on June 9, 2017. As of that date, all financial advisors who sell products are required to forego any sales agenda and give advice that would benefit their clients or customers (called “fiduciary advice”).

Does this sound too good to be true? It is!

This rule only pertains to rollovers into an IRA from a qualified plan like a 401(k), and only to the investment recommendations for that IRA account.

Any other account is still fair game for stuffing full of high-commission and high-fee products that mainly benefit salespeople and their companies.

Also, in case you think your IRA is now protected from high-cost products, there’s one more catch. Salespeople are not required to look out for your best interests if they explain to you how and why they intend to give advice that instead primarily benefits themselves and their brokerage company.

While this new law will probably confuse consumers more than it helps, it may be a first step toward something larger.

Here is the sad truth

Most Americans believe they already receive objective, fiduciary advice. The overwhelming odds are that they don’t.

You face odds of ten to one that your advisor is a salesperson who is not required to put your financial interests first. Most Americans purchase their investments from the half a million brokers who earn commissions if they can convince you to buy an expensive alternative to the thriftier, better-performing investment options on the market. That’s more than ten times the number of advisors who adhere to a fiduciary standard. Government research estimates that consumers lost $17 billion a year to conflicted advice in the recommendations related to retirement plans made by brokers and sales agents posing as advisors.

The bottom line is that at best, only one out of every ten financial advisors puts your interests first. The actual number of real fiduciary advisors may actually be even lower than this discouraging figure.

A Study

A mystery shopper study in the Boston area found that only 2.4% of the “advisors” it surveyed (most were almost certainly brokers) made what most would consider to be fiduciary recommendations.

On the other side, 85% advocated switching out of a thrifty portfolio with excellent funds into something a bit more self-serving.

The Brokerage industry

The brokerage industry—that is, the larger Wall Street firms, independent broker-dealer organizations and life insurance organizations—repeatedly fought the fiduciary rule in court, arguing, in some cases, that their brokers and insurance agents shouldn’t be held to this standard. The courts refused to block the rule.

It gets worse

Brokers are held to a sales standard, but it’s a very low one that is appropriately known as “compliance.” They are required to “know their customer” and to make investment recommendations that would be “suitable” to someone in that customer’s circumstances.

In addition, a new study found that 8% of all brokers have a record of serious misconduct, and nearly half of those were kept on at their firms even after getting caught.

Assessment

There is one simple way to determine whether you’re working with somebody you can trust. Ask your advisor directly to provide a written and signed one-page statement that he or she will act in your best interests.

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If the broker hems and haws, hold onto your wallet or purse. Chances are any recommendations you receive will cost you money, a cost only disclosed somewhere deep in the fine print of whatever agreement you sign. If the advisor signs the statement, chances are you will receive fiduciary advice.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

PRACTICES: www.BusinessofMedicalPractice.com
HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
CLINICS: http://www.crcpress.com/product/isbn/9781439879900
ADVISORS: www.CertifiedMedicalPlanner.org
FINANCE: Financial Planning for Physicians and Advisors
INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
Dictionary of Health Economics and Finance
Dictionary of Health Information Technology and Security
Dictionary of Health Insurance and Managed Care

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Filed under: Financial Planning, Investing | Tagged: best interest, BICE, fiduciary advice, Prudent Investor Act, prudent man rule, Rick Kahler CFP®, suitability rule, Wall Street firms | 1 Comment »

HOW THE “FIDUCIARY CONUNDRUM” DEFIES PHYSICS?

Posted on June 14, 2020 by Editor-in-Chief

And … How We Can Fix It

By Dr. David Edward Marcinko MBA MEd CMP®

www.CertifiedMedicalPlanner.org

The Rules As I Understand Them

Securities industry Regulations and Regulators recognize that (registered) investment advisors give advice, while stock brokers sell brokerage products. Thus, the Series 65 license is required to become a financial advisor, while Series 7 licensed stock-brokers are not (and cannot) be fiduciary advisors.

So, advice is subject to a fiduciary duty, while product sales (brokerage) activity is not. The ratio of fiduciary advice to brokerage sales is about 1:99. So, what does that tell you?

A Contentious and Complicated Issue

This issue is so contentious and complicated today that lawyers are needed to define each and every term, engagement, transaction, brokerage or advisory contract, etc. It is far too amazingly contorted and complicated for most; including me; and we have even discussed the industry machinations and political double-talk on this ME-P previously; from some vary sharp industry experts, too.

The Fiduciary Conundrum

The “work-around” for these rules is industry “dual-registration”. Simply put, just get licensed to do both; as I did. Charge a commission when selling stuff and charge a fee for advice. And ideally, do both at the same time; while getting paid for both sides.

As a naïve luddite, I learned this little truism in financial planning school decades ago, and as a doctor and fiduciary for my patients at all times, almost vomited.

Of course, there were more sophisticated students in our classes who regurgitated the standard industry opinion: “We’ll give the client a financial plan for free IF we can sell commissioned products.”

Ideally this meant a fat and fully commissioned wrap account, whole-life insurance policy, LTCI policy; etc. Or, sell products and collect fat ongoing, and often unrecognizable AUM fees [fee-only], too!

From the stock broker-advisor’s POV, it was “Heads I win – tails you loose” for the client. Now, you know why I am a former or reformed certified financial planner.

The Physics Split

Know that as a pre-medical college student years earlier, I leaned about the Werner Heisenberg Uncertainty Principle, in physics class.

Of course, true Advice – is not Sales … and Sales is not Advice. Both should never be; simultaneously. So, let’s ditch dual registration and decide which to pursue … and then proceed accordingly. Both sales and advice have risks and benefits to client and producer; both have advantages and disadvantages to both; as well.

WHY? Just like the Werner Heisenberg Uncertainty Principle; it shouldn’t [shan’t] be both; at once.

NOTE: In quantum mechanics, the Heisenberg uncertainty principle is any of a variety of mathematical inequalities asserting a fundamental limit to the precision with which certain pairs of physical properties of a particle, known as complementary variables, such as position x and momentum p, can be known simultaneously.

R.I.P: Stephen Hawking [Age-76]

So, in physics, I can tell you where you are -OR- how fast you are going; but not both. Thus, if it is product sales; it is not advice.

Today, since “dual registration” is still allowed, my suggestion to clients is to seek a fiduciary in all matters 24/7/354; get it in writing, and try to avoid arbitration and “best interest” or BICE clauses! Run from [fee-based and fee-only] AUM fees, too.

PS: I am not against Series #7 representatives and product sales. Salesmen/women often provide a valuable service and should be appropriately compensated. I only object when fees, costs, charges and commissions are duplicative, excessive and/or not fully disclosed to the client. Since excessive is an arbitrary term; full disclosure is the key ingredient.

Assessment

So – How am I wrong, mistaken and/or what did I miss? Do tell! Should We – Can We – Ditch Dual Registration [DDR]?

Oh! In the future, I also hope that State fiduciary standards will potentially cover both non-ERISA and ERISA situations, and employee plan participants will have access to full discovery rights, the one thing the industry fears most.

But, that’s a discussion for another day and time.

On the Department of Labor “Fiduciary Rule”

Conclusion

Contact: MarcinkoAdvisors@msn.com

BOOKS

https://www.crcpress.com/Risk-Management-Liability-Insurance-and-Asset-Protection-Strategies-for/Marcinko-Hetico/p/book/9781498725989

https://www.crcpress.com/Comprehensive-Financial-Planning-Strategies-for-Doctors-and-Advisors-Best/Marcinko-Hetico/p/book/9781482240283

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Filed under: Ethics, iMBA, Inc., Investing | Tagged: DOL fiduciary rules, dual-registration, ERISE, fiduciary, financial advisors, FINRA, RIA, SEC, Series 65, Series 7, stock-brokers | 5 Comments »

On Finding Physician-Focused Financial Advice

Posted on June 10, 2020 by Editor-in-Chief

OVER HEARD IN THE DOCTOR’S LOUNGE

Courtesy: www.CertifiedMedicalPlanner.org

[On Finding Physician-Focused Financial Advice]

“The financial planner is a like juggler, trying to keep a variety of balls simultaneously in the air. Each aspect of practice becomes critical, just as action is needed.

Some of the activities of operating a successful financial planning practice generally attract more attention than others, such as marketing and advertising, closing engagements, and office administration. Because product review, selection and implementation are often related to advisor compensation, they attract a great deal of the financial juggler’s concentration.

But, the heart of financial planning, niche advice, often receives little attention. Not because it is unimportant, it just doesn’t seem immediately and predictably urgent. Here, that ball does not seem to be dropping so rapidly.

However, retaining clients and receiving referrals from other professionals is very dependent on the quality of the advice delivered. And, the first line of protection from practitioner liability exposure is to not deliver incorrect or incomplete advice.

But, where does the financial advisor turn for ideas and organized research in the healthcare sector?”

Edwin P. Morrow; CFP^TM, CLU, ChFC, RFC

[Middletown, Ohio, USA]

Your thoughts are appreciated.

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ezkQMfR

2 – https://lnkd.in/ebWtzGg

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Book Reviews, Experts Invited, iMBA, Inc., Investing | Tagged: Edwin P. Morrow; CFPT, Financial Planning | Leave a comment »

Stock Market Insights for May 2020

Posted on May 9, 2020 by Editor-in-Chief

Filed under: Experts Invited, Investing, Videos | Tagged: Dan Timotic CFA, Stock Market Insights for May 2020, stock markets | Leave a comment »

The Berkshire Hathaway Annual Meeting 2020?

Posted on May 7, 2020 by Editor-in-Chief

Filed under: Experts Invited, Investing, Videos | Tagged: Berkshire Hathaway Annual Meeting 2020, Vitaliy Katsenelson CFA | 1 Comment »

Parkinson’s Law of Triviality in Time Management, Economics and Finance

Posted on May 3, 2020 by Editor-in-Chief

The Attention a Problem Gets is Inverse to its’ Importance

Courtesy: http://www.CertifiedMedicalPlanner.org

By Dr. David Edward Marcinko MBA

Historian Cyril Parkinson’s wrote in his book Parkinson’s Law,

“The time spent on any item of the agenda will be in inverse proportion to the sum [of money] involved.”

EXAMPLE: Parkinson described a fictional finance committee with three tasks: approval of a $10 million nuclear reactor, $400 for an employee bike shed, and $20 for employee refreshments in the break room.

The committee approves the $10 million nuclear reactor immediately, because the number is too big to contextualize, alternatives are too daunting to consider, and no one on the committee is an expert in nuclear power.

Bike Shed Effect: The bike shed gets considerably more debate. Committee members argue whether a bike rack would suffice and whether a shed should be wood or aluminum, because they have some experience working with those materials at home.

Employee refreshments take up two-thirds of the debate, because everyone has a strong opinion on what’s the best coffee, the best cookies, the best chips, etc.

Absurd: The world is filled with these absurdities. In personal finance, Ramit Sethi recently said we should stop asking $3 questions (should I buy coffee?) and ask more $30,000 questions (should I buy a smaller home?). Most people don’t, because it’s hard and intimidating. In any given moment the easiest way to deal with a big problem is to ignore it and fill your time thinking about a smaller one.

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PODCAST: https://www.bing.com/videos/search?q=Parkinson%e2%80%99s+law+of+Triviality+&ru=%2fvideos%2fsearch%3fq%3dParkinson%25e2%2580%2599s%2blaw%2bof%2bTriviality%2b%26FORM%3dHDRSC3&view=detail&mid=68638E496B0523EA379368638E496B0523EA3793&&FORM=VDRVRV

Assessment: Your thoughts and comments related to the Corona Virus Pandemic, meetings and time management and psychology are appreciated; especially the CARES Act.

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BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Glossary Terms, Investing, LifeStyle | Tagged: Cyril Parkinson, Parkinson’s Law of Triviality | Leave a comment »

Do Three Men Still Make a Tiger?

Posted on April 28, 2020 by Editor-in-Chief

Moral Suasion, Investing and the Corona Pandemic

Courtesy: http://www.CertifiedMedicalPlanner.org

By Dr. David E. Marcinko MBA

People will believe anything if enough people tell them it’s true.

This thought comes from a Chinese proverb that if one person tells you there’s a tiger roaming around your neighborhood, you can assume they’re lying.

LINK: https://www.springerpub.com/dictionary-of-health-economics-and-finance-9780826102546.html

If two people tell you, you begin to wonder. If three say it’s true, you’re convinced there’s a tiger in your neighborhood and you panic.

MORE: https://www.omsj.org/science/three-men-make-a-tiger

INVESTING: https://www.caseyresearch.com/daily-dispatch/three-men-make-a-tiger/

MONEY PSYCHOLOGY: https://medicalexecutivepost.com/2018/09/19/money-beliefs-and-luxury-lifestyle-tv/

INVESTING: https://medicalexecutivepost.com/2013/04/24/more-on-money-psychology/

Assessment: Your thoughts and comments related to the Corona Virus Pandemic, Money and Investing psychology are appreciated.

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BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

***

THANK YOU

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Filed under: Glossary Terms, Investing, Research & Development | Tagged: corona, financial psychology, money psychology, Three men make a tiger | Leave a comment »

The Yerkes-Dodson Law, Management, Investing and the Corona Pandemic?

Posted on April 26, 2020 by Editor-in-Chief

Performance Increases with Anxiety and Excitement to a Point

By Dr. David E. Marcinko MBA

Courtesy: www.CertifiedMedicalPlanner.org

The Yerkes–Dodson law is an empirical relationship between arousal and performance, originally developed by psychologists Robert M. Yerkes and John Dillingham Dodson in 1908.

LINK: https://www.springerpub.com/dictionary-of-health-economics-and-finance-9780826102546.html

The law dictates that performance increases with physiological or mental arousal, but only up to a point. When levels of arousal become too high, performance decreases. The process is often illustrated graphically as a bell-shaped curve which increases and then decreases with higher levels of arousal.

LINK: https://juniperpublishers.com/gjidd/pdf/GJIDD.MS.ID.555606.pdf

MONEY: https://medicalexecutivepost.com/2018/09/19/money-beliefs-and-luxury-lifestyle-tv/

INVESTING: https://medicalexecutivepost.com/2013/04/24/more-on-money-psychology/

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PODCAST: https://www.bing.com/videos/search?q=YERKES-DODSON+LAW&&view=detail&mid=6ACB86065FA362A3AC1D6ACB86065FA362A3AC1D&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3DYERKES-DODSON%2BLAW%26FORM%3DHDRSC3

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Assessment: Your thoughts and comments related to the Corona Virus Pandemic, Investing and Money Psychology are appreciated.

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BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Glossary Terms, Investing, Research & Development | Tagged: Investing, money psychology, Yerkes-Dodson Law | 1 Comment »

FREE BUSINESS CONSULTATIONS & FINANCIAL ADVISORY OPINIONS

Posted on April 7, 2020 by Editor-in-Chief

iMBA Inc, NOW OFFERING FREE BUSINESS CONSULTATIONS & FINANCIAL ADVISORY OPINIONS FOR MEDICAL COLLEAGUES & ENTREPRENEURS

Courtesy: https://lnkd.in/eVGcji5

By Ann Miller RN MHA CMP®

[Executive Director]

After an overwhelming initial response, the Institute of Medical Business Advisors [iMBA, Inc] is again offering free 60 minute phone or video consultations and second opinions to doctors, nurses and medical colleagues on a limited scheduling and time basis, during the current Corona Virus outbreak 24/7.

REGULAR SERVICE: https://lnkd.in/dw7FHyP Professional fees are waved during this time of crisis. According to Professor and CEO Dr. David Edward Marcinko MBA CMP, “this is our small way to help give back to colleagues who are vital to the US public health system and wellness of the country.” Topics include a plethora of personal financial planning and / or medical practice management and entrepreneurial business issues.

TOPIC LIST: https://lnkd.in/e7WrDj9

TO SCHEDULE: MarcinkoAdvisors@msn.com B

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BUSINESS, FINANCE, INVESTING & INSURANCE TEXTS FOR DOCTORS

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

PHYSICIAN-EXECUTIVES AND MEDICAL CXOs:

1 – https://lnkd.in/eEf-xEH

2 – https://lnkd.in/e2ZmewQ

THANK YOU

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Filed under: CMP Program, Financial Planning, iMBA, Inc., Investing | 2 Comments »

Value Investing as Oil Gets Cheaper

Posted on March 31, 2020 by Editor-in-Chief

As Oil Gets Cheaper – What Would Ben Graham Do?

By Vitaliy Katsenelson CFA

In terms of excitement, investing usually rivals watching paint dry. This has not been the case lately.

LINK: Oil Gets Cheaper – What Would Ben Graham Do?

Filed under: Investing | Tagged: commodities, oil, Vitaliy Katsenelson CFA | 1 Comment »

FREE FINANCIAL & BUSINESS ADVISORY CONSULTATIONS

Posted on March 30, 2020 by Editor-in-Chief

iMBA IS NOW OFFERING FREE FINANCIAL & BUSINESS ADVISORY CONSULTATIONS

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Courtesy: http://www.MedicalExecutivePost.com

By Ann Miller RN MHA CMP®

[Executive Director]

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The Institute of Medical Business Advisors [iMBA, Inc] is now offering free 30 minute phone or Skype® video consultations and second opinions to physicians, nurses and medical colleagues, on a limited scheduling and time basis, during the current Corona Virus outbreak 24/7.

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According to Professor and CEO Dr. David Edward Marcinko MBA, “this is our small way to help give back to colleagues who are so clinically vital to the US public health system and wellness of the country.” Topics include a plethora of personal financial planning and / or medical practice management business issues.

***

TOPIC LIST: https://healthcarefinancials.files.wordpress.com/2009/02/imba-inc-firm-services.pdf

SCHEDULE A CONSULT: MarcinkoAdvisors@msn.com

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BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

***

FOR PHYSICIAN-EXECUTIVES AND MEDICAL CXOs

1 – https://lnkd.in/eEf-xEH

2 – https://lnkd.in/e2ZmewQ

THANK YOU

***

Filed under: Financial Planning, iMBA, Inc., Investing, Portfolio Management | Tagged: Daivd Marcinko, Free consultations, iMBA, Inc., second opinions | Leave a comment »

What is the WAFFLE HOUSE Index?

Posted on March 26, 2020 by Editor-in-Chief

mm! mm! GOOD!

Courtesy: www.CertifiedMedicalPlanner.org

415 Restaurants Closing in Georgia and Elsewhere

The Waffle House Index [WHI] is an informal metric named after the Waffle House restaurant chain, headquartered in Georgia, and used by the Federal Emergency Management Agency (FEMA) to determine the effect of a storm and the likely scale of assistance required for disaster recovery.

LINK: https://www.amazon.com/Dictionary-Health-Insurance-Managed-Care/dp/0826149944/ref=sr_1_4?ie=UTF8&s=books&qid=1275315485&sr=1-4

IOW: “If you get there and the Waffle House is closed? Well, that’s really bad”, according to Craig Fugate – Former Head of the Federal Emergency Management Agency [FEMA].

MORE: https://en.wikipedia.org/wiki/Waffle_House_Index

QUERY: Have we hit the WHI wall regarding Covid-19?

PODCAST: https://www.yahoo.com/gma/waffle-house-index-unofficial-barometer-bad-things-dips-153600807–abc-news-topstories.html

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Assessment: And so, your thoughts and comments are appreciated.

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BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Health Economics, Investing | Tagged: Waffle House Index | Leave a comment »

The “IDES OF MARCH” and U.S. Debt Limits

Posted on March 15, 2020 by Editor-in-Chief

BEWARE THE “IDES OFMARCH”

Courtesy:www.CertifiedMedicalPlanner.org

Debts and Settlement is Due

The Ides of March was a day in the Roman calendar that corresponds to 15 March. It was marked by several religious observances and was notable for the Romans as a deadline for settling debts.

In 44 BC, it became notorious as the date of the assassination of Julius Caesar which made the Ides of March a turning point in Roman history.

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MORE: https://en.wikipedia.org/wiki/Ides_of_March

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DEBT: http://batr.org/autonomy/031417.html

Assessment: Your thoughts and comments are appreciated.

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BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Investing, LifeStyle | Tagged: debts, Ides March | Leave a comment »

BEWARE THE “DEAD CAT” STOCK MARKET BOUNCE?

Posted on March 15, 2020 by Editor-in-Chief

DCB = What it Is AND How it Works?

Update Courtesy: www.CertifiedMedicalPlanner.org

In finance, a “Dead Cat Bounce” is a small, brief recovery in the price of a declining stock.

LINK: https://www.amazon.com/Dictionary-Health-Economics-Finance-Marcinko/dp/0826102549/ref=sr_1_6?ie=UTF8&s=books&qid=1254413315&sr=1-6

Derived from the idea that “even a dead cat will bounce if it falls from a great height“, the phrase, which originated on Wall Street, is also popularly applied to any case where a subject experiences a brief resurgence during or following a severe market decline.

ESSAY: https://www.forbes.com/sites/chuckjones/2020/03/13/beware-of-a-dead-cat-bounce/#6c800aab2324

QUERY: But, does the DCB concept apply to entire stock ‘Bear” markets?

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PODCAST: https://www.bing.com/videos/search?q=dead+cat+bounce&&view=detail&mid=EF19382256D32E28CD76EF19382256D32E28CD76&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3Ddead%2Bcat%2Bbounce%26FORM%3DHDRSC3

PODCAST: https://www.bing.com/videos/search?q=dead+cat+bounce&&view=detail&mid=2EC29B01AB2E4FEEE3E72EC29B01AB2E4FEEE3E7&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3Ddead%2Bcat%2Bbounce%26FORM%3DHDRSC3

ASSESSMENT: Your thoughts are appreciated.

THANK YOU

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Filed under: Investing | Tagged: dead cat bounce | 3 Comments »

Wall Street’s 2020 Price Targets

Posted on March 11, 2020 by Editor-in-Chief

CIRCA: 12/23/2019

By YAHOO Finance!

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Wither the Experts?

Assessment: Your thoughts are appreciated.

Comprehensive Financial Planning Strategies for Doctors and Advisors: Best Practices from Leading Consultants and Certified Medical Planners™

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Filed under: Investing | Tagged: finance | Leave a comment »

WHAT IS A STOCK MARKET “CIRCUIT BREAKER?”

Posted on March 10, 2020 by Editor-in-Chief

EXACTLY WHAT IS A STOCK MARKET “CIRCUIT BREAKER?”

Courtesy: https://lnkd.in/eBf-4vY

By Dr. David E. Marcinko MBA

Yesterday, within a few minutes of the open, the S&P dropped 7% triggering a Level 1 circuit breaker that paused trading for 15 minutes.

Had the S&P declined 13%, trading would’ve paused another 15 minutes.

Another 20% down and it would have closed.

HISTORY

Circuit breakers launched after 1987’s Black Monday when the Dow fell 22.6%.
In 2012, the markets closed because of Storm Sandy.
Rules were revamped in 2013 after failing to prevent 2010’s “flash crash.”

LINK: https://lnkd.in/eJNz355

And so, according to NYSE President Stacey Cunningham: “I’m seeing markets act normally. They react to uncertainty … they become more volatile.”

GOING FORWARD: Uncle Sam hasn’t yet enacted crisis measures like it did during the financial crisis. Regulators are more alert (take the Fed’s emergency rate cut and $50 billion infusion to its overnight lending). Banks appear to be in relatively good shape. Your thoughts and comments are appreciated.

Assessment: Your thoughts are appreciated.

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BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Investing | Tagged: circuit breakers, NYSE, Stacey Cunningham, stock markets | Leave a comment »

An Interest Rate Review for Physician-Executives

Posted on March 9, 2020 by Editor-in-Chief

Managerial Accounting

By Dr. David E. Marcinko MBA

Recently, several major banking institutions have addressed the problem of escalating debt upon graduating physicians, mid-life practitioners and even seasoned healthcare providers; despite historically low rates for prime customers.

Unfortunately, one may still wonder how many clinicians truly appreciate the risks associated with usurious interest rates for homes, cars, medical equipment and other consumer items; as we offer the following review to reduce this peril.

WHITE-PAPER: IRs

Assessment: Your thoughts are appreciated.

***

Filed under: Investing, Practice Management, Touring with Marcinko | Tagged: David Marciniko, interest rates, rule 72 | Leave a comment »

Another CERTIFIED MEDICAL PLANNER® “In The News”

Posted on March 2, 2020 by Editor-in-Chief

ANOTHER CERTIFIED MEDICAL PLANNER® “IN THE NEWS”

Courtesy: https://lnkd.in/eVGcji5

“Informed Voice and Next-Gen of Physician Fiduciary Advisors”

AMAURY CIFUENTES CFP® CMP®

“The extensive experience of our professional team allows us to implement a rigorous process to identify ‘Best in Class’ opportunities in our focus areas. We assist in providing capital, innovative solutions and strategic expertise to our portfolio throughout the investment cycle.”

LINK: https://lnkd.in/eBf-4vY

AMAURY has 30 years of experience in banking and finance; financial planning and investments with an emphasis on business lending, real estate and private investments. He is a licensed CERTIFIED MEDICAL PLANNER® giving him an enhanced knowledge of the medical industry’s specific needs.

PRESS RELEASE: https://lnkd.in/ecMbEsQ

CURRICULUM: https://lnkd.in/eMMbbVp

AUTOMATION: https://lnkd.in/eVp9Cji

BUSINESS, FINANCE, INVESTING & INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

Filed under: CMP Program, Interviews, Investing | Tagged: certified medical planner, CMP™ Course | Leave a comment »

US Equity Market Chart Book Review 2020

Posted on February 23, 2020 by Editor-in-Chief

Dear Dr. David E Marcinko,

As part of Merk’s in-house research meetings, we are sharing with you our latest analysis of the U.S. Equity Markets; February 2020.

***

For the complete analysis, we have prepared the following for you:

The U.S. Equity Market Chart Book – PDF

The investing audience should view this content in the context of their individual investment process, time-horizon, and goals.

We welcome your feedback.

Best,

Axel Merk
President and Chief Investment Officer
Merk Investments

***

Filed under: Investing | Tagged: Axel Merk | Leave a comment »

Tuition Costs V. Medical Care Costs V. Home Prices V. the CPI

Posted on February 19, 2020 by Editor-in-Chief

In Picto-Graphic Form

[By staff reporters]

***

******

Conclusion: Your thoughts are appreciated.

***

Filed under: Health Insurance, Healthcare Finance, Investing | Tagged: CPI, healthcare costs, Medical care costs, tuition costs | Leave a comment »

IS BITCOIN CLOSE TO BECOMING “WORTH-LESS”?

Posted on February 15, 2020 by Editor-in-Chief

MAYBE – MAYBE NOT?

By Dr. David E. Marcinko MBA

An article by Market Watch’s Atuyla Sarin titled, “Bitcoin is Close to Becoming Worthless” made the rounds on social media and got some people and physician investors panicking.

LINK: https://lnkd.in/eyNrGE9

And so, colleague Pete Quinones, over at the “Free Man Beyond The Wall”, invited Cointext CTO Vin Armani to come on the show to refute the reporting in the article. Vin also commented on the state of the crypto markets and Ohio’s accepting of Bitcoin for tax payments.

PODCAST: https://lnkd.in/eMrTgH4

***

Conclusion: Your thoughts and comments are appreciated.

BUSINESS, FINANCE, INVESTING & INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: iMBA, Inc., Investing, Touring with Marcinko, Videos | Tagged: Bitcoin, Free Man Beyond the Wall, Peter Quinones | Leave a comment »

Are Financial Asset Classes like a Box of Valentine Chocolates in 2020?

Posted on February 14, 2020 by Editor-in-Chief

On Valentine’s Day Diversification

By Rick Kahler MS CFP® ChFC CCIM www.KahlerFinancial.com

With displays of Valentine candy in every store, February is the perfect time to talk about chocolate. A creative financial planner might even steal Forrest Gump’s analogy and say, “Diversification is like a box of chocolates.”

Except that it isn’t.

True, a box of chocolates might have a lot of variety. Cream centers. Caramels. Nougats. Nuts. Dark chocolate. Milk chocolate. Truffles. Yet it’s all still chocolate.

Retirement Savings

Buying that box would be like investing your retirement savings in a variety of US stocks. Even if you had a dozen different companies, they would all be the same basic category of investment, or asset class.

For example, suppose you gave your true love a slightly more diversified Valentine gift made up of chocolates, Girl Scout cookies, baklava, and apple pie. That would compare to investing in different types of stocks like US, international, or emerging markets. But, everything would still be dessert.

Wiser Physician-Investors

You would be a wiser doctor-investor if you took your true love out for dinner and had a meat course, a salad, vegetables, bread, dessert, and wine. Now you’d start to see real diversification.

In addition to US, international, and emerging market stocks (all dessert), you might have some other asset classes like US and international bonds (meat), real estate (bread), cash (salad), commodities (veggies), and absolute return strategies (wine).

***

Long Term Growth Generator

This kind of asset class diversification is the best investment strategy for long-term growth. My preference is eight or nine different classes. For many clients, I recommend a mix of US and international stocks and bonds, real estate investment trusts, a commodities index fund, market neutral funds like merger arbitrage and managed futures, junk bonds, and Treasury Inflation Protected Securities (TIPS).

Market Fluctuations

Fluctuations in the market will tend to affect the various securities within a given asset class in the same way. Most US stocks, for example, would generally move up or down at the same times. So, owning shares of several different stocks wouldn’t protect you against changes in the market. When a portfolio is well-diversified, the volatility is reduced even during times when the markets are moving strongly up or down.

When I talk about investing in a variety of asset classes, I don’t mean owning stocks, real estate, gold, or other assets directly. For individual investors, mutual funds are a much better choice. Occasionally, someone will ask me, “But why should I have everything in mutual funds? That isn’t diversified, is it?”

Mutual Funds

Mutual funds are not an asset class. A mutual fund isn’t like a type of food; it’s like the plate you put the food on. A single plate might hold one food item or servings from several different food groups. More specifically, mutual funds are pools of money invested by managers. One fund might invest in real estate investment trusts (REITS). Another might have international stocks chosen for their high returns. Still others invest in a diversified mix of asset classes. The mutual fund is just the container that holds the investments.

[Courtesy GE Healthcare]

Annuities

Annuities and IRAs aren’t asset classes, either, but are also examples of different types of containers that hold investments. If you use your IRA to purchase an annuity, all you’re doing is stacking one plate on top of another. It doesn’t give you another asset class, it just costs you more for the second plate.

Assessment

Having a box of chocolates for dinner might seem more appealing in the short term than eating a balanced meal. Investing in the “get-rich-now” flavor of the month might seem tempting, too. Yet in the long run, asset class diversification is the best way to make sure you have a healthy investment diet.

***

February 14th, 2020

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Conclusion

Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

***

* 8

Filed under: Investing, Portfolio Management | Tagged: annuities, asset allocation, diversification, ETFs, heart, Mutual Funds, REITS, Rick Kahler CFP®, Valentine Day | 4 Comments »

WHAT IS Ro [r-NOUGHT] IN HEALTH EPIDEMIOLOGY?

Posted on February 11, 2020 by Editor-in-Chief

A Relationship to Financial Investing?

Courtesy: www.CertifiedMedicalPlanner.org

By Dr. David E. Marcinko MBA CMP

The basic reproduction number R₀, [r nought) of an infection is the number of cases it generates on average over the course of its infectious period, in an otherwise uninfected population.

LINK: https://www.amazon.com/Dictionary-Health-Insurance-Managed-Care/dp/0826149944/ref=sr_1_4?ie=UTF8&s=books&qid=1275315485&sr=1-4

The metric determines whether or not a disease can spread through a population. The root concept is traced to Alfred Lotka and Ronald Ross, but its first application was by George MacDonald in 1952, with malaria.

LINK: https://www.healthline.com/health/r-nought-reproduction-number

FORMULA: When

R₀ < 1

the infection will die out in the long run. But if

R₀ > 1

the infection will be able to spread in a population.

LINK: https://wwwnc.cdc.gov/eid/article/25/1/17-1901_article

ASSESSMENT: Generally, the larger the value of R₀, the harder it is to control the epidemic. In the past week, Corona virus estimates ranged from 1.4 to 5.5. The World Health Organization (WHO) range was 1.4 and 2.5. In comparison, seasonal flu affects millions each year but has an R0 of just 1.3. The R0 rate for measles ranges from 12 to 18.

***

ECONOMY: http://www.msn.com/en-us/money/markets/coranavirus-outbreak-clouds-2020-view-global-economy-week/ar-BBZyEDY

Your thoughts are appreciated.

LINK: https://www.marketwatch.com/story/coronavirus-spreads-damage-to-wall-street-could-the-us-economy-be-next-2020-02-01?mod=home-page

BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Health Economics, Investing, Portfolio Management, Research & Development | Tagged: corona virus, Epidemiology, r-NOUGHT, Ro, WHO | Leave a comment »

THE CORONA VIRUS and Ro [r-NOUGHT]

Posted on February 4, 2020 by Editor-in-Chief

THE CORONA VIRUS & Ro [r-NOUGHT] IN HEALTH EPIDEMIOLOGY?

Courtesy: https://lnkd.in/eBf-4vY

By Dr. David E. Marcinko MBA

[A Relationship to Investing and the Stock Markets?]

DJIA 28,256.03 ▼ -603.41 [-2.09%]

DJIA 28,399.81 Today: ▲ DJIA: +143.78+0.51%

The Ro Value, [r Nought), of an infection is the number of cases it generates on average over the course of its infectious period, in an otherwise uninfected population.

LINK: https://lnkd.in/e9AmEhd The metric determines if a disease can spread through a population. LINK: https://lnkd.in/e2VXwcz

FORMULA: When R0 < 1, the infection will die out in the long run. But, if R0 > 1, the infection will spread in a population. The larger the value of R0, the harder it is to control the epidemic.

LINK: https://lnkd.in/eXYpEUm METRICS: Recently, Corona virus estimates ranged from 1.4 to 5.5. The WHO range was 1.4 and 2.5. In comparison, seasonal flu affects millions each year but has an R0 of just 1.3.

QUERY: What are the stock market & economic effects of Corona?

GLOBAL: https://lnkd.in/epKhamj

DOMESTIC: https://lnkd.in/eBxwRDW

Conclusion: Your thoughts are appreciated.

THANK YOU

****

Filed under: Investing, Risk Management, Touring with Marcinko | Tagged: corona virus, Ro, Ro [r-NOUGHT] | Leave a comment »

CHRIS ROSSINE INTERVIEW ON THE COMING FINANCIAL “BUBBLE”?

Posted on February 3, 2020 by Editor-in-Chief

CHRIS ROSSINE ON THE COMING FINANCIAL INVESTING “BUBBLE”?

By Dr. David E. Marcinko MBA

Courtesy: https://lnkd.in/eBf-4vY

[A Podcast Re-Deux]

Atlanta colleague Pete Quinones – “Free Man Beyond The Wall” – welcomes Chris Rossini to the show. Chris is editor of the Ron Paul Liberty Report. He wrote the book “Set Money Free” and is the co-host of the Ron Paul Liberty Report on Fridays. And so, Pete asked Chris to come on the show, about a year ago, to talk about the economy.

***

He specifically asked if stock market record highs are a “bubble” and what should we expect when it bursts. Chris also reviewed some basic economic principles and explained them in easy to understand language.

PODCAST: https://lnkd.in/ePirZyB

MORE: https://lnkd.in/eJNz355

Conclusion: Your thoughts and comments are appreciated.

BUSINESS, FINANCE & INVESTING TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Experts Invited, Investing | Leave a comment »

Hodja Nasreddin and Behavioral Economics [Gains and Losses]

Posted on February 1, 2020 by Editor-in-Chief

The Difference

[By Anonymous]

One of the most important concepts in behavioral economics is that people react differently to gains and losses. An example from Hodja Nasreddin:

***

Hodja Nasreddin

***

“One day Nasreddin went to his neighbour and asked to borrow a large cooking pot. The neighbour obliged and Nasreddin promised to bring it back shortly. Weeks passed when the neighbour came by to remind Nasreddin about his pot.

Embarrassed, the hodja went inside and after a short time re-emerged with the pot. On handing it over there was a clanging sound inside upon which the neighbour lifted the lid to reveal a smaller pot inside. “Hodja, what is this?” He exclaimed. “Neighbour, it seems the pot you gave me was expecting and this is her young!” The neighbour gave the hodja a silent look and left with both pots.

Some time later Nasreddin again asked to borrow the pot and the neighbour happily obliged. Again weeks passed and the neighbour came again inquiring about his pot.

“Alas!” Nasreddin said, your dear pot passed on to the afterlife, please accept my condolences.”

“But hodja, how can a metal pot die?” said his neighbour whereupon Nasreddin hodja flew into a rage and yelled:”You had no trouble believing it gave birth but her death strikes you as incredible? Now begone, you rascal!

NOTE: Why backward? http://mullahnasruddin.com/?p=1927

Assessment: Your thoughts are appreciated.

***

Filed under: Health Economics, Investing | Tagged: behavioral econmomics, Hodja Nasreddin | Leave a comment »

Market Risk & The All-Terrain Portfolio

Posted on January 28, 2020 by Editor-in-Chief

Interview by RealVision (In case you missed it)

By Vitaliy Katsenelson CFA

***

DEAR ANN AND ME-P READERS: I wanted to share with you a recent interview I did with RealVision TV.

***

If you haven’t heard of them, RealVision is an internet-based video platform that features serious, long-form interviews with leading financial thinkers – think of it as “CNBC for grown-ups.” I’ve personally watched a bunch of their interviews, and always find them challenging and enjoyable.

***

When I was recently in New York, I sat down with Tony Greer of TG Macro to discuss IMA’s All-Terrain Portfolio, Tesla, Bitcoin, oil, the dollar, value investing, and more – all the usual suspects.

******

LINK:

https://www.youtube.com/watch?v=04JwqmmbgYg&feature=youtu.be&utm_source=IMA++-+Main+Articles&utm_campaign=c4d71a9286-INTERVIEW_REALVISION_RESEND&utm_medium=email&utm_term=0_f1c90406d1-c4d71a9286-55139025

***

If you’re interested, you can check out the interview above or read a transcript of it here.

***

Assessment: Your thoughts are appreciated.

***

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Experts Invited, Investing, Videos | Tagged: Market Risk & The All-Terrain Portfolio, Risk Adjusted Rate Return, Vitaliy Katsenelson CFA | Leave a comment »

The “KUZNETS” Curve

Posted on January 26, 2020 by Editor-in-Chief

The “KUZNETS” Curve

Courtesy: www.CertifiedMedicalPlanner.org

In economics, a Kuznets curve (/ˈkʌznɛts/) graphs the hypothesis that as an economy develops, market forces first increase and then decrease economic inequality.

LINK: https://www.amazon.com/Dictionary-Health-Economics-Finance-Marcinko/dp/0826102549/ref=sr_1_6?ie=UTF8&s=books&qid=1254413315&sr=1-6

The hypothesis was first advanced by economist Simon Kuznets in the 1950s and 1960s.

PODCAST: https://www.bing.com/videos/search?q=Kuznets+Curve&view=detail&mid=A5D7EFB417EC37F3CDFEA5D7EFB417EC37F3CDFE&FORM=VIRE

Assessment: Your thoughts are appreciated.

BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Glossary Terms, Health Economics, Investing | Tagged: KUZNETS Curve | Leave a comment »

THE EMERGENCY FUND FOR PHYSICIANS – IT’S HUGE!

Posted on January 25, 2020 by Editor-in-Chief

THE EMERGENCY FUND FOR PHYSICIANS

Courtesy: https://lnkd.in/eBf-4vY

NOW NOT SO “BORING”

Forget a 6 Month Reserve – Cash is More Vital Than Ever!

I was speaking at a medical conference recently and learned that this basic question is again generating much collegial speculation, of late.

CRISIS MANAGEMENT: https://lnkd.in/epnGqkq

MORE TOPICS: https://lnkd.in/e7WrDj9

Previously considered so mundane – as to be dismissed by some haughty physicians – it has acquired increased urgency a decade after the PP-ACA, current stock-market run-up, and future political specter of M4A, etc. And so; perhaps it is not so “boring” after all!

ESSAY: https://lnkd.in/eM7M6au

Assessment: Your thoughts and comments are appreciated.

BUSINESS, FINANCE & INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Investing | Tagged: emergency funds | 1 Comment »

On Investing: “RISK ADJUSTED RATE OF RETURN”

Posted on January 23, 2020 by Editor-in-Chief

WHY DOCTORS MUST APPRECIATE “RISK ADJUSTED RATE OF RETURN”

Courtesy: https://lnkd.in/eBf-4vY

[Understanding Vital Investing and Financial Calculations]

Performance measurement, like an annual physical examination, is a vital feedback loop to monitor progress toward the goals of any investment program.

DEFINITIONS: https://lnkd.in/eJNz355

Performance comparisons to market indices and / or peer groups are a useful part of this feedback loop, as long as they are considered in the context of the market environment; and with the limitations of a market index and/or manager data base construction, ie., risk.

QUERY: How can physician investors, eliminate biases of the market environment by adjusting performance for the risk assumed by their portfolios?

ANSWER: Colleagues Timothy J. McIntosh MBA CFP®MPH and Jeffery S. Coons PhD CFA explain further.

ESSAY: https://lnkd.in/evKA6BP

Assessment: Your thoughts and comments are appreciated.

BUSINESS, FINANCE AND INVESTING TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Investing | Tagged: risk adjusted rate of return | Leave a comment »

Twenty [20] Habits of “Eventual” Millionaires

Posted on January 22, 2020 by Editor-in-Chief

But, Maybe NOT … Doctors!

By staff reporters

***

Filed under: Career Development, Investing | Tagged: Habits of "Eventual" Millionaires, Millionaires | Leave a comment »

2020: Stock Markets Party Like It’s 1999?

Posted on January 21, 2020 by Editor-in-Chief

2020: Party Like It’s 1999?

By Vitaliy Katsenelson CFA

The stock market marched higher for the year even though US companies as a whole did not become more valuable, just more expensive, as earnings failed to grow from 2018 to 2019. Earnings are estimated to be up about 5% for 2020 (though these estimates are usually revised down as the year progresses).

If you look at the quality of this non-growth, then the rose-tinted glasses of the average stock market investor quickly prove inadequate. Corporate debt is up 5% in 2019, and a good chunk of the increase went into stock buybacks. As stocks become expensive their benefit from earnings per share growth diminishes.

LINK: https://contrarianedge.com/2020-party-like-its-1999/?utm_source=IMA++-+Main+Articles&utm_campaign=ef3ee0520d-2020_PARTY_1999&utm_medium=email&utm_term=0_f1c90406d1-ef3ee0520d-55139025

Assessment: Your thoughts are appreciated.

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Experts Invited, Investing | Tagged: finance, Investing, Vitaliy Katsenelson CFA | Leave a comment »

What is a BOLLINGER BAND?

Posted on January 11, 2020 by Editor-in-Chief

What Is a Bollinger Band®?

Courtesy: www.CertifiedMedicalPlanner.org

More on Technical Analysis

A Bollinger Band® is a technical analysis tool defined by a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average of the security’s price, but can be adjusted to user preferences.

LINK: https://www.amazon.com/Dictionary-Health-Economics-Finance-Marcinko/dp/0826102549/ref=sr_1_6?ie=UTF8&s=books&qid=1254413315&sr=1-6

Bollinger Bands® were developed and copyrighted by the famous technical trader John Bollinger.

***

PODCAST: https://www.youtube.com/watch?v=13oogPJwWAM

Your thoughts are appreciated.

BUSINESS, FINANCE AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

Filed under: Investing | Tagged: Bollinger Band, Bollinger Bands, Technical analysis | Leave a comment »

“Big-Tech” Market Capitalization Round-Up

Posted on January 10, 2020 by Editor-in-Chief

Round-UpCIRCA 2010 – 2019

***

Filed under: Investing | Tagged: big tech, qqq, technology stocks | Leave a comment »

The Price of Bitcoin Round-Up

Posted on January 8, 2020 by Editor-in-Chief

CIRCA: 2013 – 2019

******

[Dr. Cappiello PhD MBA] *** [Foreword Dr. Krieger MD MBA]

Front Matter with Foreword by Jason Dyken MD MBA

Filed under: Investing | Tagged: Bitcoin | 1 Comment »

A Decade of US Private Equity Deals

Posted on January 2, 2020 by Editor-in-Chief

Circa 2010-2019

***

****

Assessment: Your thoughts are appreciated.

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ezkQMfR

2 – https://lnkd.in/ebWtzGg

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Investing | Tagged: privaty equity | Leave a comment »

A Decade of Stock Market and Financial Asset[s] Performance

Posted on January 1, 2020 by Editor-in-Chief

CIRCA 2010 – 2019

******

Read full story

***

Filed under: Investing | Tagged: asset performance | Leave a comment »

Felix Rohatyn – Age 91

Posted on December 22, 2019 by Editor-in-Chief

REST-IN-PEACE

By Dr. David E. Marcinko MBA

Courtesy: www.CertifiedMedicalPlanner.org

The European refugee turned Wall Street legend, died at 91 lat week. Rohatyn pioneered the M&A advisory business in the 1960s. Working with companies like GE, Revlon, and AT&T, he earned the nickname “Felix the Fixer” for brokering some of the deals that created today’s corporate landscape.

His take on the industry: “Investment banking is not a business; it is a personal service where bankers work hand in hand with their clients.”

With deep thoughts like that, Rohatyn was tapped to help NYC stave off bankruptcy in 1975, when lenders cut off the city from additional short-term credit.

You might not realize it from walking around Manhattan today, but 1970s-era New York was in a deep financial manhole. It had an annual deficit of $1.5 billion a year on a budget of roughly $12 billion.

In his later years, Rohatyn became the U.S. ambassador to France, an author, and a finance sage.

Assessment: I followed his career and studied his methods while in B-school, back in the day.

Your thoughts are appreciated.

BUSINESS, FINANCE, INVESTING & INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

***

Filed under: Investing | Tagged: Felix Rohatyn | Leave a comment »

Who Owns Your Credit Card Reward Points?

Posted on December 20, 2019 by Editor-in-Chief

Do your credit card reward points belong to you?

By Rick Kahler CFP®

For frequent travelers, who often choose credit cards based on reward programs, accumulated points can be worth thousands of dollars. Whether points are an asset that can be transferred to an heir is another matter.

I recently received this question: “Our friend whose husband recently passed away lost over a million points with Capital One because her husband was the primary on the account and she was just an authorized user, not a joint owner. Capital One closed the credit card since he passed and all the points were forfeited. Do you have any ideas on how to get the points back?”

Unfortunately, not much can be done after the fact. Most credit cards offering points that can be redeemed for travel expense say that points have no cash value and are not actually the property of the account owner but rather belong to the reward’s program. Most card programs’ terms and conditions say that points outstanding upon the card holder’s death are permanently forfeited.

An appeal to the issuing bank would be worth trying. Surprisingly, some will show compassion and allow the points to transfer to another account or credit their value against any outstanding balances on the card, usually at one cent per point.

Considering this issue ahead of time, however, might allow surviving spouses to avoid losing all of a loved one’s hard-earned points.

First, try to find a rewards card that will allow you to own the account jointly with your spouse rather than being an authorized user. If one spouse passes away, the points will remain in the account and the other joint owner will have full access to them. An authorized user has no risk or obligation to pay any debt, and therefore has no claim on any points that remain in the account after the death of the primary cardholder.

The downside of a joint account is that each cardholder is equally liable for any amounts the other charges to the account. If your marriage is transparent and without any financial infidelity going on, this shouldn’t be a problem. If the card is a business card, joint ownership could be more problematic.

Banks that I found that will allow joint accounts are US Bank and PNC Bank. Specific rewards cards that allow joint ownership are Bank of America Cash Rewards, Wells Fargo Cash Wise Visa, and Discover it Cash Back. Obviously, with only three rewards cards allowing joint ownership, that option isn’t widely available.

The next best choice is to be sure both partners have the login information for the account. This would allow a survivor to log on and redeem or transfer points. Many cards will allow transferring points to an airline or hotel rewards programs for 1.5 to 2.3 cents per point. Of course, both partners need to have access to those accounts as well, which generally isn’t a problem with most programs.

This is also the recommended method of accessing points with a specific airline. According to a September 19, 2019, article by Richard Kerr at thepointsguy.com, giving your next of kin access to all your airline and hotel awards accounts gives them “all the information needed to continue using the points and miles without alerting the airline.”

Including airline reward points in a will may be worthwhile. It might not make a difference with every airline or bank, but some programs will transfer such designated points without a fee.

Assessment:

Travel reward points may be a relatively minor asset. Still, a little planning can make them readily available without adding stress for a surviving spouse during a difficult time.

Conclusion

Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos

***

Filed under: Experts Invited, Investing | Tagged: credit cards, reward points, Rick Kahler CFP | Leave a comment »

Dollar Cost Ravaging?

Posted on December 18, 2019 by Editor-in-Chief

RETHINKING: Dollar Cost Averaging (DCA)?

By Dr. David E. Marcinko MBA

Dollar cost averaging (DCA) is an investment strategy with the goal of reducing the impact of volatility on large purchases of financial assets such as equities.

Dollar cost averaging is also called the constant dollar plan (in the US), pound-cost averaging (in the UK), and, irrespective of currency, as unit cost averaging or the cost average effect.

***

***

Assessment: Might DCA also be called Dollar Cost Ravaging?

Conclusion

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HARD Asset LITE Companies?

Posted on December 13, 2019 by Editor-in-Chief

Supply Chain Service Management?

[By staff reporters]

***

Filed under: Investing | Tagged: Asset Lite Companies | Leave a comment »

The Hemline Stock Market Index

Posted on December 9, 2019 by Editor-in-Chief

What’s Up?

[By staff reporters]

According to Wikipedia, the hemline index is a theory presented by economist George Taylor in 1926. The theory suggests that hemlines on women’s dresses rise along with stock prices.

In good economies, we get such results as miniskirts (as seen in the 1920s and the 1960s), or in poor economic times, as shown by the 1929 Wall Street Crash, hems can drop almost overnight.

Non-peer-reviewed research in 2010 supported the correlation, suggesting that “the economic cycle leads the hemline with about three years”.

***

Conclusion

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***

Filed under: iMBA, Inc., Investing | Tagged: Hemline Index | Leave a comment »

Investing in Financial Counseling

Posted on November 21, 2019 by Editor-in-Chief

Investing in Financial Counseling

By Rick Kahker MSFS CFP

As a long-time advocate of blending financial planning with counseling, I’ve had years of seeing the benefit for clients. I have come to see financial counseling as an investment: one that can pay greater dividends than investments in a home, retirement account, or college education.

How can this be the case?

Mostly because making good financial decisions is the foundation of financial and emotional well-being. Most financial and many emotional problems result from disordered and dysfunctional money beliefs and behaviors. Money disorders can impair people’s functioning and disrupt their well-being just as significantly as disorders like alcoholism or other addictions.

Some common disordered money behaviors include the following:

• Compulsive Spending is a consuming focus on buying. It can include buying things you can’t afford as well as “retail therapy” shopping where no money is actually spent. It can mean you underfund emergency reserves and don’t adequately set aside enough for retirement.

• Financial Enabling is an attempt to meet your emotional needs by “helping” others, which usually does more harm than good. A pattern of bailing kids out financially is a good example. Enabling can financially harm the parent by diverting resources from other needs and sabotage the child by rewarding dependency and entitlement thinking.

• Hoarding is compulsively buying and storing things that you don’t need or will never use.

• Financial Infidelity is keeping money secrets (such as spending, saving, or investment mistakes) from your partner because you would be ashamed to have them find out.

• Inappropriate Financial Boundaries is sharing of worries or financial details in ways that violate the boundaries between children and adults.

• Workaholism is a consuming focus on work or earning to a point of damaging your relationships.

• Underspending is frugality taken to extremes, such as inadequate spending on health care, nutrition, shelter, or clothing even when you can afford them.

All these disordered financial behaviors have one thing in common: fundamentally, they aren’t about the money. They are often an unconscious response to emotional pain, in the same way addiction or anger might be. The disordered financial behavior may be a medicator that works to deaden deep emotional stress and painful emotions. While one person may find relief in alcohol or drugs and another may find it in work, someone else might use shopping, saving, or financial enabling as a way to feel better and function in the world.

Just like addictions, however, disordered financial behaviors only relieve pain for a short time. Eventually, the pain returns, sometimes even stronger. The result is an escalating cycle of destructive behavior that has many negative consequences, including financial.

To see the link between emotional health and financial health, just read a celebrity magazine or observe people you know. I’ve seen high-earning professionals who have a negative net worth because they can’t control their spending. You probably know people who bounce from one financial mess to another, never seeming to learn from their money mistakes. Some very capable and intelligent people struggle financially and in their careers because of emotional issues.

For most people experiencing financial problems, financial counseling to resolve emotional issues is a low-priority expense that comes far down the list after basic needs like housing, food, and transportation. Yet for anyone who struggles to overcome destructive patterns of behavior—even those that aren’t directly about money—counseling can pay off in very real monetary ways.

***

mind-investing-behavioral-finance

***

Assessment

Emotionally healthy and confident people make better choices about relationships, careers, and other major aspects of their lives. They also make better choices about money. This is why financial counseling is more than an investment in your emotional health. It can also make a measurable difference in your financial wealth.

Your thoughts are appreciated.

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

Filed under: Experts Invited, Investing, Op-Editorials | Tagged: Financial Counseling | Leave a comment »

My Interview with Danielle Town

Posted on November 20, 2019 by Editor-in-Chief

My Interview with Danielle Town

By Vitaliy Katsenelson, CFA

Today I’d like to share with you an interview I did with my friend Danielle Town. Danielle is coauthor of Invested and runs the Rule #1 Finance blog with her father, Phil Town.

Danielle put me on the proverbial podcast couch; and though originally we were going to talk about investing, well, we talked about everything but investing. We ended up delving into many personal topics I rarely discuss. I went down memory lane about growing up in Soviet Russia, my family’s immigration to the US in 1991 and our first years in the US, my parents’ attitude towards money, budgeting, creativity, sleep, writing, a book I am working on, and more.

This interview ran so long it was broken up into two parts (Listen to Part 1 here and Part 2 here). I don’t think I could have done this interview talking to a stranger. It turned into a conversation between friends.

We decided that we are going to go back and talk about investing next time. Maybe we’ll do another interview when I see her in Switzerland in January, where we’ll both attend VALUEx Klosters.

Assessment: Your thoughts are appreciated.

BUSINESS, FINANCE, INVESTING AND INSURANCE TEXTS FOR DOCTORS:

1 – https://lnkd.in/ebWtzGg

2 – https://lnkd.in/ezkQMfR

3 – https://lnkd.in/ewJPTJs

THANK YOU

Filed under: Investing, Videos | Tagged: Danielle Town, Vitaliy Katsenelson CFA | Leave a comment »

The “Halloween Indicator” [Investment Strategy]

Posted on October 31, 2019 by Editor-in-Chief

What it is – How it works?

[By staff reporters]

Sell in May and go away is an investment strategy for stocks based on a theory (sometimes known as the Halloween indicator) that the period from November to April inclusive has significantly stronger growth on average than the other months.

***

thumbnail_IMG_0533_edit1

“DANCE OF DEATH”

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The Strategy

In such strategies, stocks are sold at the start of May and the proceeds held in cash (e.g. a money market fund); stocks are bought again in the autumn, typically around Halloween. “Sell in May” can be characterised as the belief that it is better to avoid holding stock during the summer period.

Though this seasonality is often mentioned informally, it has largely been ignored in academic circles (perhaps being assumed to be a mere superstition). Nonetheless analysis by Bouman and Jacobsen (2002) shows that the effect has indeed occurred in 36 out of 37 countries examined, and since the 17th century (1694) in the United Kingdom; it is strongest in Europe. While the effect may reflect a failure of the efficient-market hypothesis, alternatives exist such as small sample size or time variation in expected stock market returns.

***

Causes the Effect

Although it’s not clear what causes the effect, what’s most interesting is that it shows that stock market returns in many countries during the period May–October are systematically negative or lower than the short-term interest rate, which also goes against the efficient-market hypothesis. Stock market returns should not be predictably lower than the short-term interest rate (risk free rate).

Popular media often refer to this market wisdom in the month of May, claiming that in the six months to come things will be different and the pattern will not show.

However, as the effect has been strongly present in most developed markets (including the United States, Canada, Japan, the United Kingdom and most European countries) in the last decade – especially May–October 2009 – these claims are often proved wrong.

That said, between April 30 and October 30, 2009, the FTSE 100 gained 20% (from 4,189.59 to 5,044.55)

Academics

The effect has largely been ignored in academic circles. The idea contradicts much established theory, especially the efficient-market hypothesis.

Maberly and Pierce extended the data to April 2003. They also tested the strategy for April 1982 through April 2003 except for two months, October 1987 and August 1998. They found that it doesn’t work well in the time period April 1982–September 1987 plus November 1987–July 1998 plus September 1998–April 2003.^[7] Other regression models using the same data but controlling for extreme outliers have found the Halloween effect to still be significant.^[8]

“Sell in May and go away” has persisted as a profitable market-timing strategy for stock investors, according to a follow-up study by Andrade, Chhaochharia and Fuerst (2012). They find that the Sell-in-May seasonal pattern persists after the end of Bouman and Jacobsen’s (2002) sample. This is important in showing that the Halloween effect is not a statistical fluke detected by data mining. Strikingly, in the 1998–2012 sample on average November–April returns are larger than May–October returns in all 37 markets they study. On average, the difference is equal to about 10% percentage points. Also strikingly, the magnitude of the difference is the same in Bouman and Jacobsen’s (2002) and in the out-of-sample analysis of Andrade, Chhaochharia and Fuerst (2012). Further backtesting by Mebane Faber has shown this effect has been in place since 1950.

Source: Sell in May – Wikipedia, the free encyclopedia

***

http://www.msn.com/en-us/money/markets/best-6-months-for-stocks-could-be-right-around-the-corner/ar-BBmma2Y?li=AA4Zjn&ocid=U348DHP

***

Is Another [Double-Dip] Stock Market Crash Looming? The Hindenburg Omen!

Even More:

Much More:

Assessment

Was this indicator appropriate for 2018?

Conclusion

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

PRACTICES: www.BusinessofMedicalPractice.com
HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
CLINICS: http://www.crcpress.com/product/isbn/9781439879900
ADVISORS: www.CertifiedMedicalPlanner.org
FINANCE: Financial Planning for Physicians and Advisors
INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
Dictionary of Health Economics and Finance
Dictionary of Health Information Technology and Security
Dictionary of Health Insurance and Managed Care

***

Filed under: Investing, LifeStyle | Tagged: Halloween Index, Halloween indicator, Hindenburg Omen | 3 Comments »

Bank Safety Deposit Boxes; Not So Safe After All?

Posted on October 22, 2019 by Editor-in-Chief

Not Really a Safe – SAFE?

By Rick Kahler CFP®

I have routinely recommended that people use a bank safe deposit box to store valuable papers and small assets. These include documents like wills, trust documents, ethical wills, and unrecorded deeds. Valuable assets would include diamonds, gemstones, jewelry, bullion, and small collectables like rare coins, stamps, and trading cards.

The physical protection of a bank vault, plus a system of access requiring two keys kept by the customer and the bank, would seem to provide a great deal of security. Yet several recent news articles suggest safe deposit boxes may not be as safe as they seem.

Report

An article in the New York Times reported 44 robberies in the last five years related to safe deposit boxes. Even worse were numerous bank errors in which boxes were moved, misplaced, drilled open, or closed by mistake. A large Maryland bank closed several branches and lost hundreds of safe deposit boxes. One customer lost $500,000 worth of gold and gems.

In each case, banks vigorously fought any requirement to make their customers whole. Even more shocking, no provision of federal banking law regulates safe deposit boxes.

Nor do banks insure the belongings of customers who trustingly store their most precious valuables in safe deposit boxes. The risks fall on the renter. Wells Fargo’s safe deposit box contract caps the bank’s liability at $500. Citigroup limits it to 500 times the box’s annual rent. JPMorgan Chase has a $25,000 ceiling on its liability.

***

My Story

Decades ago, I placed some rare coins in a safe deposit box with a local bank. A few years ago I went to retrieve my valuables, only to find the bank had drilled open the box and sent the contents to the state as abandoned property. I learned that when I relocated my office, the change of address notification failed to carry through to the annual billing notice for the safe deposit box fee. After three years of non-payment, the bank chose to go through the effort of drilling open the box and shipping the contents to the State Treasurer’s office. It would have been simpler to spend a few minutes looking up my information and contacting me.

Eventually I was able to retrieve the contents of the box. I was lucky.

An international expert in rare watches stored 92 watches plus rare coins, worth millions, in a safe deposit box at a Wells Fargo bank branch. Wells Fargo had evicted another customer for non-payment and drilled open the wrong safe deposit box. The customer found his “safe” deposit box empty. Wells Fargo executives could only find 85 of his watches.

The customer sued. Wells Fargo admitted in court that its employees had mistakenly drilled into and terminated the box. The unrecovered items included gold coins and a watch estimated to be worth nearly a million dollars. After years of litigation and appeals, Wells Fargo has offered no restitution.

If a “safe” deposit box isn’t really safe, what can you do instead?

Here are a few suggestions.

1. Consider investing in a high-quality home safe for small valuables and important documents.

2. Scan all important documents and save copies in a secure online “vault.” Many financial planners provide such online backup storage.

3. If you do use a safe deposit box, choose one at the bank you use regularly and open it at least once a year.

4. No matter where you keep your valuables, insure them adequately. Standard homeowner coverage is probably not enough.

5. Share passwords and access codes with another trusted person.

Finally, ask before you store. Understand a bank’s policies and coverage limits before you trust it with your valuables.

Conclusion

Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos

***

Filed under: Investing, Risk Management | Tagged: banks, safety deposit box | 1 Comment »

On Business Ownership

Posted on October 16, 2019 by Editor-in-Chief

No Self-Indulgent Path to Success

repeat

No Self-Indulgent Path to Success

By Rick Kahler CFP®

http://www.MedicalExecutivePost.com

“Most of my friends assume that business owners spend their money and time on cocaine and hookers.”

This jaw-dropping quote came from a young man I was talking with recently about money, investing, and running a business. I was shocked; this was a money script I had never heard.I asked if he was serious. He was. I asked if any of the friends with this belief were raised by a parent who owned a business. He thought for a moment and said, “No, not one.”

This conversation reminded me of a government employee who once told me, “Any person who succeeds in business had to do so illegally by embracing corruption and dishonesty.” He, too, was serious.

I was dumbfounded by both of these encounters. My experience of being raised by parents who owned a small business, and then going into business for myself, was quite different from these perceptions.

My father started his own business when I was four years old. I witnessed him working long hours. I remember the times when business was so bad he would have to borrow money to pay the bills and keep the doors open. Later in life I learned his business rarely made a profit and was just able to pay his salary.

He never shared with his employees how tight money was. When I went to work for him as a teenager, I remember listening to the talk around the water cooler. They all assumed he made far more money than what I knew was true.

***

In the years since, I have discovered many misperceptions about people who own real estate, are in business, or who have accumulated wealth.

The first misperception is that someone who owns real estate or a business has actually accumulated wealth. My 40 years of experience in financial planning has taught me that many, if not most, business owners would make more money working for someone else. And real estate owners accumulate wealth slowly. Most of them, myself included, struggle through some lean years with short or even negative cash flow until they finally pay off their mortgages.

Certainly, real estate or business owners who persevere over the long term can become wealthy. Being wealthy, according to various studies, is defined as having a minimum net worth of somewhere between five million and twenty million dollars.

About 80% of millionaires own their own businesses. They put in long hours, often in careers they love enough so that work becomes play. The average business owner puts in about 70 hours a week. They are five times more likely than non-business owners to be “always available” via e-mail, four times more likely to work nights, and three times more likely to be in the office or store on weekends.

This is the way one successful business owner described it: “Our company will celebrate its 50th anniversary next year. Probably the first 30 years were spent working 70-100 hour weeks at below minimum wage and dumping every extra penny back into the business. I would say it’s only been the last 10 years that we have begun to reap the financial rewards that we spent 40 years striving to attain, still working 60-70 hour weeks. I acknowledge our work habits may in part be a result of being stubborn Norwegians that don’t think anyone else can do things right, but most successful small business owners I know have pretty much dedicated their life to become successful.”

Assessment

This focus and work ethic are what it takes to succeed at business ownership. It’s not a mindset that includes blowing money and time on cocaine and hookers.

Conclusion

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***

Filed under: Experts Invited, Investing, Research & Development | Tagged: business ownership, CEO, Rick Kahler CFP® | Leave a comment »

Dig Deeper Than CFP® To Find a Financial Planner

Posted on October 8, 2019 by Editor-in-Chief

CFP® is a Designation – Not a Guarantee!

By Rick Kahler CFP®

I have long recommended that consumers look for a Certified Financial Planning (CFP) certificant when shopping for a financial planner.

But don’t stop there. A CFP is no guarantee that someone is a competent, ethical, fiduciary professional. It only ensures that you are choosing from a pool of 85,000 financial services providers who are educated in the technical aspects of financial planning. It doesn’t mean the person is engaged in financial planning, is a fiduciary, or has a spotless ethical history.

In a troubling Wall Street Journal article on August 9, 2019, columnist Jason Zwieg writes that the “CFP Board’s online search directory neglected to inform the public that thousands of planners listed” have known “customer complaints, criminal histories, financial problems or regulatory proceedings.”

“Among these CFPs were 499 who have faced criminal charges, 324 who left a previous firm amid allegations of misconduct, 323 who had been disciplined or investigated by regulators and 68 who filed bankruptcy within the past 10 years,” Zweig notes. Yet none were ever disciplined by the CFP Board.

Let’s not lose perspective—these “bad apples” amount to less than 2% of CFP certificants. Every profession has those few who use its licensing and credentialing as a cover to manipulate, deceive, and abuse consumers. No amount of regulation or oversight will ever eliminate all the crooks.

In addition, you cannot simply assume because a professional has a certain license, designation, or formal degree that they are competent. In the graduate class I teach at Golden Gate University, not all students earn As and Bs. Many earn Cs. A few earn Ds and Fs. While I am not sure the D and F group ever graduate, I am sure I would not want them doing my financial planning without convincing evidence that their poor performance in my class was a one-off due to extenuating circumstances.

As the consumer, you cannot know if a prospective financial planner was that student. Nor can you know if they have a tainted criminal background, unless you dig deeper.

That digging includes looking for any past criminal or disciplinary charges brought by licensing agencies. It also includes determining whether the advisor is legally bound to a fiduciary standard—required to put your interests ahead of theirs—but has any conflicts of interest, especially by making a significant amount of their income from commissions on the sale of financial products.

Here are a few tips for digging deeper:

Go to brokercheck.finra.org to see if FINRA has brought disciplinary actions against the advisor.
Go to the SEC’s website to look for disciplinary actions.
Have the prospective advisor sign a written disclosure that you are a client and they have a fiduciary duty to put your interests above their own, rather than a customer where they have no such obligation and will usually put the interests of their company first. Many advisors, especially those not legally bound to be fiduciaries, don’t understand the difference, so insist on getting this assurance in writing.
Have the prospective advisor sign a statement disclosing what percentage of their company’s gross revenues comes from fees charged to clients. These might be paid as hourly fees, annual retainers, or separate charges for advice. The lower the percentage of income from fees, the greater the chance of a significant conflict of interest. I recommend finding firms receiving over 90% of gross revenue from fees; I prefer 100% because such firms advertise themselves as “fee-only” or will offset any commissions against a flat fee.

Assessment

To find a trustworthy financial planner, I still recommend the CFP designation. Just remember that it’s a starting point, not a guarantee.

Conclusion

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Filed under: Ethics, Investing | Tagged: Certified Financial Planner Board of Standards, CFP, CFP - Not a Guarantee!, Jason Zwieg, Rick Kahler CFP® | 3 Comments »

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iMBA Inc, NOW OFFERING FREE BUSINESS CONSULTATIONS & FINANCIAL ADVISORY OPINIONS FOR MEDICAL COLLEAGUES & ENTREPRENEURS

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iMBA IS NOW OFFERING FREE FINANCIAL & BUSINESS ADVISORY CONSULTATIONS

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Managerial Accounting

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Dear Dr. David E Marcinko,

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February 14th, 2020

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