I remember the first time I helped a colleague of Tony’s switch out of a horrible 403(b). Tony had come to me aghast over what he had seen; an annuity with 4% in fees and longstanding surrender fees. We had no idea that this was not the exception to the rule; nor did we realize that this would become our full-time obsession. Here was an educated, savvy woman who had absolutely no idea how badly she was being ripped off. It turns out that there were many more teachers, just like her, who had listened to recommendations from esteemed (but ignorant) colleagues. One-by-one they formed a chain of the blind leading the blind and, in spite of their intelligence,they all went right over the same cliff. Secretly I wondered if I could have been one of these people, if I didn’t know what I knew. The answer is probably. Let’s face it, most people would rather not spend their free time researching where they should squirrel away funds for a rainy day some decades into the future. If Read on...
Matters of the Heart
I learned, at a fairly young age, that life can change as quickly as it takes a heart to beat. It was the day before Thanksgiving, 1973, when my father suffered a heart attack. He was 56 and I was 8. As the sole breadwinner, I am sure all the worries he had about caring for his wife and seven kids (four of whom were minors) were pinging in his head, keeping time with his rapid pulse rate. Thankfully, after several weeks in the hospital, he was allowed to come home in time for Christmas. It was a gift; but frankly, the anxiety over his health issues would haunt me throughout his lifetime. Fortunately, he lived into his late eighties; but having no way of knowing that he would be blessed with longevity, I began the egg-shell walk that would span decades. It took me well into my adulthood before my fears eased up a bit. Perhaps experiencing milestones that I worried might never come, like having my father walk me down the aisle, allowed me to exhale. And now, at the age of Read on...
Sexism, Lies and Videotape
I received an interesting call; or should I say my husband, Tony, did. Though I introduced myself as Tony's business partner, there was much reluctance to speak with me. I guess this gentleman thought I was a 'gal Friday.' Finally, he decided to take up his solicitation with me, though it wouldn’t have mattered to whom he spoke with – the answer would have been the same. He tried to sell me on the idea that we should reward our top clients with a trip to some elite golf tournament. Never mind that the only person less interested in golf than me would be Tony – or me, were I buried six-feet under. He argued that this would help us show our appreciation and allow us to hobnob with other prestigious and wealthy potential clients. When I explained that we don’t operate that way he asked how we reward our top clients and how we attract prospects. “By doing a damn good job,” I said. I went off on a tear. “By always putting their needs first. By Read on...
Morgan Stanley Clients: Assume the Position
Morgan Stanley clients should think long and hard about what’s in it for them, seeing how that is all Morgan Stanley is thinking about. According to Sarah Krouse and Michael Wursthorn of The Wall Street Journal, “Morgan Stanley has already decided that as of next week its brokers will no longer be able to sell clients new positions in Vanguard mutual funds.” Because offering clients quality, low-cost funds is a horrible thing to do? No, Morgan Stanley would rather push product that pays the firm more (even though it may be at the expense of clients’ returns). Thank you, sir. Can I have another? It’s bad enough to get screwed over; but to pay for the privilege? Pass! Sadly, I’m not surprised. In fact, almost 30 years ago I had a painful glimpse of the ugly underbelly of Dean Witter Reynolds (“DWR”). Ironically, the firm merged with Morgan Stanley back in 1997; just one of many birds of a feather, I’m afraid. I worked in the external mutual funds department; a Read on...