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re: Financial advisors?
Posted on 7/16/12 at 4:35 pm to BennyAndTheInkJets
Posted on 7/16/12 at 4:35 pm to BennyAndTheInkJets
what asset classes are less sensitive to macro news?
thats where i want to be
thats where i want to be
2
Posted on 7/16/12 at 4:54 pm to slim thug
I won't go as far to say less sensitive, just affected by different things at different times. In the last example you'll see financial contagion worries pick up and banks will have to roll CP at LIBOR + 175 rather than LIBOR + 150, but then decreasing supply will push these rate levels back down.
Looking at Treasuries, bad news will come out about Spanish banks and the 10-year will drop 5-10 basis points. The next day you'll have a 10-year auction and the yield will fall even more due to foreign investors liking the roll-down advantage in the belly of the curve.
Not trying to get too into the weeds, poeple just have a view that the market now-a-days is "risk on" or "risk off" based on macro factors, which is true to a points but technicals still drive movements. They didn't die in '08, CAPM did (which I would argue should have died well before that).
Looking at Treasuries, bad news will come out about Spanish banks and the 10-year will drop 5-10 basis points. The next day you'll have a 10-year auction and the yield will fall even more due to foreign investors liking the roll-down advantage in the belly of the curve.
Not trying to get too into the weeds, poeple just have a view that the market now-a-days is "risk on" or "risk off" based on macro factors, which is true to a points but technicals still drive movements. They didn't die in '08, CAPM did (which I would argue should have died well before that).
Posted on 7/16/12 at 4:58 pm to Maderan
quote:Please see my response in this thread. LINK My opinion is almost exactly the same as yours, just posted 2 hours earlier. So, I'm not just agreeing with you for convenience sake.
think the CPA is an important part of the process especially when it comes to financial planning.
But as you noted Poodle financial plans and investments are two different animals. I don't think anyone can act as a CPA and investment advisor and really be great at both. Just not enough hours in the day.
Kind of falls into the "Jack of all trades, master of none" approach.
When it comes to qualified plans I do believe a large portion of the CPA community is lacking in general knowledge as to what is best to achieve a client's goals.
Posted on 7/17/12 at 8:43 am to slim thug
Difficult but big pharma is the major go to. (not an asset class but a sector)
However, markets are very correlated these days. Hell even the wine market has showed meaningful correlation to the equity market.
If your talking conventional asset classes, MLP's, REITS, fixed income, MBS, CDS, have lower correlations but its hard to find places to hide
However, markets are very correlated these days. Hell even the wine market has showed meaningful correlation to the equity market.
If your talking conventional asset classes, MLP's, REITS, fixed income, MBS, CDS, have lower correlations but its hard to find places to hide
Posted on 7/17/12 at 9:16 am to BennyAndTheInkJets
quote:
They didn't die in '08, CAPM did (which I would argue should have died well before that).
Could you expound on this?
No need to type anything out, if you can point me to some reading....
Posted on 7/17/12 at 12:51 pm to LSUHSC-S T-Fanatic
Pay your debt off as quickly as possible. More of your income can then go toward investing when your done. Find a financial advisor you are comfortable with after you are debt free.
Posted on 7/17/12 at 12:58 pm to BennyAndTheInkJets
quote:
I could write an essay on here about it, but here is a basic article on the divergence of academia and practice.
The fact that schools still pound their chest about EMH and CAPM is an absolute joke.
Posted on 7/17/12 at 1:16 pm to BennyAndTheInkJets
quote:
I could write an essay on here about it, but here is a basic article on the divergence of academia and practice.
The fact that schools still pound their chest about EMH and CAPM is an absolute joke.
Agreed.
I hate all the holdings that PMPT funds curently hold, but I think that it's a truly revolutionary and more intelligent form of asset management. AQR has a PMPT mutual fund out there, but I haven't read up on it enough. If I could get in on Bridgewater's fund, I definitely would.
Posted on 7/17/12 at 3:07 pm to Poodlebrain
Relax Poodle, your entitled to your opinion but mine is that CPA's should shy away from giving investment advice. I work closely with many of my clients CPA's. I respect them for the integral part they play and the advice they give. At the same time the simple nature of many of the questions they ask me reveals how little they know when it comes to certain investments.
Dont be confused because I couldnt imagine implementing a financial plan without the assistance of a CPA and an estate attorney. Yet is seems to me you were advocating excluding a CFP from the financial planning process which is something I have a hard time understanding.
To directly answer your question of CPA's being competent on tax matters - yes obviously they are, being competent to develop a comprehensive financial plan? Um...No they are not
quote:
I am confused as to how anyone could possibly develop a comprehensive financial plan without considering income and gift and estate taxes. Since those tax issues are an integral part of the plan how can you exclude the CPA from the process? Or do you feel you are competent enough in tax matters to deal with those issues?
Dont be confused because I couldnt imagine implementing a financial plan without the assistance of a CPA and an estate attorney. Yet is seems to me you were advocating excluding a CFP from the financial planning process which is something I have a hard time understanding.
To directly answer your question of CPA's being competent on tax matters - yes obviously they are, being competent to develop a comprehensive financial plan? Um...No they are not
Posted on 7/18/12 at 12:11 pm to LSUHSC-S T-Fanatic
The standard FA, at least in my view, is a glorified insurance salesman with slightly better financial acumen.
One should really only settle for a CFP or the rare CFA Personal Advisor. You want someone with legitimate analytical experience who can actually add value to the investment process.
A true frat-star FA shouldn't feel the need to be hounding prospective clients if he's being as aggressive as you imply. You don't want a salesman.
One should really only settle for a CFP or the rare CFA Personal Advisor. You want someone with legitimate analytical experience who can actually add value to the investment process.
A true frat-star FA shouldn't feel the need to be hounding prospective clients if he's being as aggressive as you imply. You don't want a salesman.
This post was edited on 7/19/12 at 3:54 pm
Posted on 7/18/12 at 12:14 pm to RemouladeSawce
quote:
The standard FA, at least in my view, is a glorified insurance salesman with slightly better financial acumen.
Agreed. They tend to focus on selling you whole life insurance because they make big commissions off it.
Posted on 7/19/12 at 9:26 am to amsterdam
quote:Does the CFP Board agree with you?
To directly answer your question of CPA's being competent on tax matters - yes obviously they are, being competent to develop a comprehensive financial plan? Um...No they are not
quote:So a CPA isn't competent to develop a comprehensive financial plan, but a CPA is qualified to attest to someone else's competence. Makes sense to me.
Q10: IF I AM SELF-EMPLOYED OR PROVIDE PERSONAL FINANCIAL PLANNING ADVICE PRO BONO, CAN THIS EXPERIENCE BE APPLIED TOWARDS THE EXPERIENCE REQUIREMENT?
A10: Individuals who provide personal financial planning advice as defined by CFP Board's standards as an independent or outside of their employment will need to provide the signature and contact information of a qualified individual who can attest to the nature of their work. An attester must hold one of the following qualifications:
CFP® professional
Chartered Financial Consultant (ChFC)
Chartered Life Underwriter (CLU)
Chartered Financial Analyst® (CFA®)
Ph.D. in business or economics*
Doctor of Business Administration*
Licensed attorney – (inactive license acceptable)
Licensed Certified Public Accountant (CPA) – (inactive license acceptable)
*Degree must be from an accredited U.S. college or university.
Posted on 7/19/12 at 12:08 pm to Poodlebrain
quote:
So a CPA isn't competent to develop a comprehensive financial plan, but a CPA is qualified to attest to someone else's competence. Makes sense to me.
You do not understand what they are asking. You must something like 600 hours if I remember right of financial planning experience before you can use the CFP marks. This requirement is satisfied generally from your B/D signing off on the requirement being met. In the instance that you are self employed, then others professionals can attest that the work was done and the experience requirement met. They are not attesting to competence, just that it was done.Posted on 7/19/12 at 12:36 pm to amsterdam
The attestor is being asked to attest to the nature of the work. That can mean the type as well as the quality. Do you think an attestor would sign off on work he considers inadequate? I know I would never vouch for someone's professional competence unless I believed they were competent.
Posted on 7/19/12 at 10:54 pm to LSUHSC-S T-Fanatic
Hire an experienced professional for financial planning advice, not a message board. It's worth it.
Posted on 7/20/12 at 12:59 pm to AngryBeavers
quote:
Agreed. They tend to focus on selling you whole life insurance because they make big commissions off it.
The standard FA can't even spell whole life, much less suggest it. The cookie cutter is some Fidelity, some American Funds, maybe some Coca-Cola, and then a round of golf.
Posted on 7/23/12 at 11:42 am to LSUHSC-S T-Fanatic
quote:
We'll have real earning potential when we finish, and I have a financial advisor hounding around quite aggressively...emails every other week. He works with several recent grads who are now really involved with Stock markets and many other financial ventures. I'm by nature (A poor La boy), and really conservative with money. Would you guys/girls advise getting involved with someone like this? Is it worth the money? Or should I stay conservative until my debts are done and kid is a stable situation?
LSUHSC-S T-Fanatic, there may be a few responses that have attempted to answer your original post, so without reading as redundant:
You should do that which you are comfortable. It is my stance that those who do not understand what they are offered either lose money/value or don't participate. It is very rare that the unknowledged actually succeed.
If anyone is hounding me, I do not advance this relationship. But your definition of "hounding", as "emails every other week", does not meet my criteria for aggression. Is simply reads as though that you are not comfortable with this individual, and that is important.
As I currently understand your post, with the limited information given, your first priorities should be asset protection (personal property, income, life, appropriate documentation), liquidity, income production--meaning, focus on your job duties--and debt elimination, all in a simultaneous method. May read as heavy, but it isn't.
Focus on your marriage, save @15% of your income (when you are out of residency program), enjoy your new child, and then come see me in Nashville.
Posted on 7/23/12 at 6:17 pm to BestBanker
There is a financial advisor in Ridgeland, MS that you and your wife may want to contact. Nancy L. Anderson, Ph.D, CFA, owns an investment firm, business professor, business writer for Clarion-Ledger and Mississippi Business Journal.
Fee only - 1% I believe, no commissions.
She has a website.
Fee only - 1% I believe, no commissions.
She has a website.
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