Archive for the ‘Conflict of Interest’ Category
Do you know your financial advisor?
Posted by: Michael Zhuang on: February 17, 2010
Few people know that there are 2,613,000 financial advisors in the U.S. It is the fifth largest vocation, right after truck drivers and before janitors. Even fewer people know that, unlike attorney and CPA, financial advisor is a free title – there is no uniform legal standard or educational requirement for the title. Nobody will [...]
The investment risks you don’t see
Posted by: Michael Zhuang on: February 8, 2010
When talking to a prospect about my advisor services, I would ask him his philosophy about risk. The conversation would usually go like this: Prospect: “I don’t like losing money.” Me: “What do you mean? Can you be more specific?” Prospect: “I don’t mind giving up a little upside; I just don’t want to lose [...]
Profit from Harry Dent’s prediction? think again
Posted by: Michael Zhuang on: January 2, 2010
I am exasperated. A client of mine just sent me Harry Dent’s latest book, The Great Depression Ahead, with a note. My client was absolutely convinced that the Dow will go down to 3,800, and he wanted me to do something to profit from this inevitability. I don’t blame him. Dent is a brilliant man; [...]
Do you have “cancer” in your portfolio?
Posted by: Michael Zhuang on: June 7, 2009
“They are the cancer of the institutional investment world.” – David Swensen Would you consider forming a partnership with someone you don’t know, in which you would contribute the money and that someone would conduct a business that you don’t understand, and do the accounting as well? Most business owners would respond with a resounding [...]
How to Lost Money to Conflict of Interest
Posted by: Michael Zhuang on: April 8, 2009
“Avoid conflicts of interest.” – David Swensen, Yale Endowment CIO. Jose is the head of a ultra high-net-worth family. He has a number of accounts with Merrill Lynch (ML), the storied brokerage firm that paid their senior executives $4 billion in bonuses last year. Three of his accounts lost a great deal of money, not [...]
Does your financial advisor engage in “fee-ing frenzy”?
Posted by: Michael Zhuang on: February 26, 2009
“Avoid the fee-ing frenzy,” says David Swensen. Marion banks at Wachovia. When she needs to rollover her 401(k) into an IRA account, she naturally asks a Wachovia financial advisor for help. He helps her open an account and recommends she buy the Evergreen Asset Allocation Fund (EAAFX). Is there anything wrong with this picture? Plenty! [...]
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