It's back to school season, and if you have school-age children, you might be used to ensuring that your kids have the vaccines necessary for school. Commonly required vaccines include shots for measles, mumps, rubella, tetanus, and polio, but how would you feel if you had to add one more to this list? There is intense debate between politicians and the medical community right now as to whether the vaccine for the H1N1 virus (Swine Flu) should be forced on individuals.
The Department of Health and Human Services hopes to vaccinate 160,000,000 people by this December. The vaccine was introduced for testing to adults and children in August and they hope to release the drug by mid-October. Many individuals raise issue with the vaccine, arguing that a few months cannot be long enough to truly determine the long-term effects of the vaccine.
There are also concerns about the ingredients and side effects. Thimerosol is a component of the vaccine. Thimerosal contains mercury and it's use has been linked to autism in children, among other neurodevelopmental disorders. The FDA's website even warns, "because of these concerns, the Food and Drug Administration has worked with, and continues to work with, vaccine manufacturers to reduce or eliminate thimerosal from vaccines."
There are also mixed opinions about the correlation between the H1N1 vaccine (both the vaccine being tested today and the vaccine used during the 1976 swine flu) and Guillain-Barre syndrome. There is much debate about whether the syndrome is a result of the flu itself or of the vaccine. Until there is conclusive evidence, the debate and concerns will continue.
It should be noted that there are no constitutional authorities that permit the government to force vaccinations on competent adults. The populations likely to face compelled vaccination are deployed military personnel, health care workers, and grade school and day care students.
I am not advocating for either argument. I certainly would not consider myself educated enough about this issue to make a case for or against mandatory vaccination. Instead, I think individuals should arm themselves with as much information as possible surrounding the issue and make the decision that is right for you and your family.
By Amanda Bashore, CFP(r)
arbashore@taaginc.com
Monday, August 31, 2009
Monday, August 24, 2009
Role Reversal
I have seen many clients struggle with caring for their parents, and I thought it would be years before my time would come. It is particularly difficult when you live in different cities.In May, my 68 year old mother-in-law, Charleen, had surgery to receive a pacemaker to control her arterial fibrulation. The operation seemed simple enough and she should be home the next day. Unfortunately, she experienced multiple complications due to a device malfunction and an inept surgeon. Finally, after her third operation, she is on the road to recovery.
My mother-in-law lives alone and my husband and I wanted to ensure that she continues on the road to recovery. We recently hired a Geriatric Care Manager, Terry, to meet with Charleen and communicate with her at least monthly. I found Terry through http://www.caremanager.org/. I selected her because she is an RN and JD. She has been a valuable resource to ensure that Charleen is getting the best care possible.
After an initial assessment of Charleen's health, she furnished my husband and I with a report listing all of her medications, any potential interactions between drugs, follow up questions for her next doctor's visit and a list of recommendations to make Charleen's life easier. Based on this report we now know she needs a cleaning service to help her with heavy cleaning on a monthly basis and that she has started feeling isolated as her arthritic knees limit her mobility. We now have local contacts for transportation during the winter and social activities for seniors.
The biggest benefit to hiring a Geriatric Care Manager is peace of mind for my husband and I, as well as Charleen. Because we cannot see her in person on a frequent basis, it is comforting to know that Terry can visit when needed and give us an assessment of Charleen's progress. Charleen likes having a medical professional she can call when she has questions that she wouldn't typically call her doctor to ask.
Our parents spend years taking care of us. Now it is time to return the favor. A possible knee replacement is in Charleen's future. With Terry's help, we feel much more confident assessing Charleen's options so that the decisions we make with her will have Charleen out and enjoying her retirement once again.
-By Chris Carleton CFP(r)
Clcarleton@taaginc.com
Monday, August 17, 2009
Scams are Back
Scammers are talented at taking advantage of people by tapping into their fears and desires to get ahead financially. Periods of high stress and abysmal returns often bring out promoters who promise miracle money strategies. Since the last two years have been particularly trying for investors, scammers know this is a great time to strike.
You do not have to be financially unsophisticated to be taken in. Many of the schemes are packaged to appeal to the very educated by appearing to be very complex and available only to wealthy investors. This was Bernie Madoff’s strategy, and his $50 billion dollar Ponzi scheme proved he was quite good at it. But you can find other examples right here in Cincinnati.
According to the June 1997 SEC litigation filing, Mark Gatch and Henry Schmidt solicited investors from February 1992 to March 1995 with the promise of 4-5% per month profits using a secret trading strategy marketed through Ben Mar Investments, an unregistered investment company. They found their clients at country clubs, within the Reds and Bengal rosters, and through relationships with other high net worth Cincinnati residents with an invitation only entrance requirement. By the time the scheme came to light, investors had lost approximately $12.2 million, including $4 million that Gatch and Schmidt took for themselves.
After suffering losses in 2008, many people are probably wishing for guarantees. From 1995 to 2002 George Fiorini's 10 Percent Plus Income Plan was advertised on TV, radio, newspapers and even bus benches across the Tristate. “There aren't many things in life that are guaranteed, but the Fiorini Agency's 10 Percent Income Plus Plan guarantees you an income for life — without any risks,” Mr. Fiorini promised on the radio. The late television celebrity Bob Braun, a face familiar to generations of Cincinnatians, backed him up. The problem was, there was nothing paying an annual tax-free interest rate of 10%, and any investment (like stocks) that could provide a high return was NOT guaranteed. In August, 2004 Fiorini finally plead guilty to mail fraud, income tax evasion and interstate transport of stolen money which ended more than four years of law-enforcement efforts against the one-time insurance agent.
The FBI is reporting a surge in investment fraud cases including high yield investment frauds, Ponzi schemes, pyramid schemes, foreign currency fraud and other plans. It sounds obvious, but if you are solicited by a friend or stranger with an investment idea that sounds too good to be true, no matter how credible it sounds – walk away!
By Jeannette Jones, CFP®
Jjones@taaginc.com
You do not have to be financially unsophisticated to be taken in. Many of the schemes are packaged to appeal to the very educated by appearing to be very complex and available only to wealthy investors. This was Bernie Madoff’s strategy, and his $50 billion dollar Ponzi scheme proved he was quite good at it. But you can find other examples right here in Cincinnati.
According to the June 1997 SEC litigation filing, Mark Gatch and Henry Schmidt solicited investors from February 1992 to March 1995 with the promise of 4-5% per month profits using a secret trading strategy marketed through Ben Mar Investments, an unregistered investment company. They found their clients at country clubs, within the Reds and Bengal rosters, and through relationships with other high net worth Cincinnati residents with an invitation only entrance requirement. By the time the scheme came to light, investors had lost approximately $12.2 million, including $4 million that Gatch and Schmidt took for themselves.
After suffering losses in 2008, many people are probably wishing for guarantees. From 1995 to 2002 George Fiorini's 10 Percent Plus Income Plan was advertised on TV, radio, newspapers and even bus benches across the Tristate. “There aren't many things in life that are guaranteed, but the Fiorini Agency's 10 Percent Income Plus Plan guarantees you an income for life — without any risks,” Mr. Fiorini promised on the radio. The late television celebrity Bob Braun, a face familiar to generations of Cincinnatians, backed him up. The problem was, there was nothing paying an annual tax-free interest rate of 10%, and any investment (like stocks) that could provide a high return was NOT guaranteed. In August, 2004 Fiorini finally plead guilty to mail fraud, income tax evasion and interstate transport of stolen money which ended more than four years of law-enforcement efforts against the one-time insurance agent.
The FBI is reporting a surge in investment fraud cases including high yield investment frauds, Ponzi schemes, pyramid schemes, foreign currency fraud and other plans. It sounds obvious, but if you are solicited by a friend or stranger with an investment idea that sounds too good to be true, no matter how credible it sounds – walk away!
By Jeannette Jones, CFP®
Jjones@taaginc.com
Monday, August 10, 2009
Personal Finance 101
One big wake-up call from the recent economic downturn is that the literacy rate in this country is at absolute crisis levels. Financial literacy, that is.
Millions of high school, college, even graduate level students leave their alma maters every year completely unable to decipher basic financial information. Whether it is how a mortgage works, the true cost of carrying a credit card balance or the importance of maintaining a high credit score, even the extremely well educated are often completely in the dark.
I’ve talked to many baby boomers recently who are concerned, some downright guilty, about the societal legacy they are leaving their children and grandchildren when it comes to living within one’s means. If we really want to try and right the ship, we should use this teachable moment, to use a popular phrase of late, to show today’s students the importance of financial literacy.
Fundamental finance should be required at the high school level, or, at the very least, as part of a balanced college curriculum. In my undergraduate studies, I took such courses as Geology of U.S. National Parks (aka Rocks for Jocks), History of Western Art – Prehistoric to Gothic, Beginning Photography and even Horseback Riding. I registered for the latter two only because Wine Tasting 101 and a class actually entitled “The Meaning of Leisure” were already full. While I understand, to a point, the role these courses play in shaping critical thinking and producing well rounded alumni, I do not think it will do too much damage to the liberal arts model to require students take a 1 or 2 hour class in basic personal finance.
More and more, we are starting to see positive change. Several local high schools are starting some kind of program in financial education. Until it becomes more mainstream, a tip of the cap to the American Institute of Certified Professional Accountants. They have created two websites worth a look for anyone wanting to learn about financial issues. The first, http://www.feedthepig.org/ includes great tips for how to save for all age groups and a link to a site especially made for young children. The second, http://www.360financialliteracy.org/ is a database of invaluable information, broken down by life stages.
What can you do? If you have the opportunity, let your local representatives, your high school or college alumni associations know that you support financial education as a core educational component of future generations. While we would be foolish to think we can stop the cycle of fear and greed that drives our economy, perhaps with a little basic education, those cycles do not have to be so drastic.
By Chip Workman
Millions of high school, college, even graduate level students leave their alma maters every year completely unable to decipher basic financial information. Whether it is how a mortgage works, the true cost of carrying a credit card balance or the importance of maintaining a high credit score, even the extremely well educated are often completely in the dark.
I’ve talked to many baby boomers recently who are concerned, some downright guilty, about the societal legacy they are leaving their children and grandchildren when it comes to living within one’s means. If we really want to try and right the ship, we should use this teachable moment, to use a popular phrase of late, to show today’s students the importance of financial literacy.
Fundamental finance should be required at the high school level, or, at the very least, as part of a balanced college curriculum. In my undergraduate studies, I took such courses as Geology of U.S. National Parks (aka Rocks for Jocks), History of Western Art – Prehistoric to Gothic, Beginning Photography and even Horseback Riding. I registered for the latter two only because Wine Tasting 101 and a class actually entitled “The Meaning of Leisure” were already full. While I understand, to a point, the role these courses play in shaping critical thinking and producing well rounded alumni, I do not think it will do too much damage to the liberal arts model to require students take a 1 or 2 hour class in basic personal finance.
More and more, we are starting to see positive change. Several local high schools are starting some kind of program in financial education. Until it becomes more mainstream, a tip of the cap to the American Institute of Certified Professional Accountants. They have created two websites worth a look for anyone wanting to learn about financial issues. The first, http://www.feedthepig.org/ includes great tips for how to save for all age groups and a link to a site especially made for young children. The second, http://www.360financialliteracy.org/ is a database of invaluable information, broken down by life stages.
What can you do? If you have the opportunity, let your local representatives, your high school or college alumni associations know that you support financial education as a core educational component of future generations. While we would be foolish to think we can stop the cycle of fear and greed that drives our economy, perhaps with a little basic education, those cycles do not have to be so drastic.
By Chip Workman
Tuesday, August 4, 2009
Why Don't You Just Give Your Broker a Gun and Tell Him to Shoot You?
(From Dan Solin's blog, Huffington Post, July 14, 2009)
A reader of my blogs sent me an e-mail with a Customer Agreement from a major brokerage firm. She asked me to look it over and tell her if she should sign it.
The first thing that struck me was this clause:
"Brokerage activities are regulated under different laws and rules than advisory activities and generally do not give rise to the fiduciary duties that an investment adviser has to its clients."
The agreement pointed out that the brokerage firm "...may face certain conflicts of interest and as such, its interests may differ from yours."
These statements are typically inserted in account opening agreements.
I asked the reader this question: Why would you entrust your assets to a firm that tells you it does not have to act in your best interests and further that it may have conflicts of interest with you which it will resolve in its favor?
It gets worse:
The agreement also provided that all disputes must be resolved by mandatory arbitration. Not before an impartial panel, but one appointed by FINRA, which is essentially a trade group for the securities industry.
William Galvin, the highly respected Secretary of the Commonwealth of Massachusetts aptly described FINRA's arbitration process in testimony before a congressional sub-committee as "an industry sponsored damage-containment and control program masquerading as a juridical proceeding."
Taken together, these clauses are a sucker punch for the unwary investor. The brokerage firm is telling you straight up that they will not act in your best interest. By consigning you to FINRA's mandatory arbitration, it is unlikely that you will get justice when you try to recover for their misconduct.
Why don't you just give them a gun and tell them to shoot you?
What's your option?
Don't play by their rules. Instead, if you need investment advice, retain a Registered Investment Advisor. They are required by law to be fiduciaries. If their agreements provide for arbitration, it will not be FINRA arbitration and you can often negotiate the removal of the arbitration clause altogether.
Just be sure the advisor focuses on your asset allocation and limits your investments to a globally diversified portfolio of low cost index funds, Exchange Traded Funds or passively managed funds.
The reader sent me this note: "Amazing how 90% of the public does not understand that they are the investor sheep heading to the Wall Street butcher shop."
My sentiments exactly.
The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein.
A reader of my blogs sent me an e-mail with a Customer Agreement from a major brokerage firm. She asked me to look it over and tell her if she should sign it.
The first thing that struck me was this clause:
"Brokerage activities are regulated under different laws and rules than advisory activities and generally do not give rise to the fiduciary duties that an investment adviser has to its clients."
The agreement pointed out that the brokerage firm "...may face certain conflicts of interest and as such, its interests may differ from yours."
These statements are typically inserted in account opening agreements.
I asked the reader this question: Why would you entrust your assets to a firm that tells you it does not have to act in your best interests and further that it may have conflicts of interest with you which it will resolve in its favor?
It gets worse:
The agreement also provided that all disputes must be resolved by mandatory arbitration. Not before an impartial panel, but one appointed by FINRA, which is essentially a trade group for the securities industry.
William Galvin, the highly respected Secretary of the Commonwealth of Massachusetts aptly described FINRA's arbitration process in testimony before a congressional sub-committee as "an industry sponsored damage-containment and control program masquerading as a juridical proceeding."
Taken together, these clauses are a sucker punch for the unwary investor. The brokerage firm is telling you straight up that they will not act in your best interest. By consigning you to FINRA's mandatory arbitration, it is unlikely that you will get justice when you try to recover for their misconduct.
Why don't you just give them a gun and tell them to shoot you?
What's your option?
Don't play by their rules. Instead, if you need investment advice, retain a Registered Investment Advisor. They are required by law to be fiduciaries. If their agreements provide for arbitration, it will not be FINRA arbitration and you can often negotiate the removal of the arbitration clause altogether.
Just be sure the advisor focuses on your asset allocation and limits your investments to a globally diversified portfolio of low cost index funds, Exchange Traded Funds or passively managed funds.
The reader sent me this note: "Amazing how 90% of the public does not understand that they are the investor sheep heading to the Wall Street butcher shop."
My sentiments exactly.
The views set forth in this blog are the opinions of the author alone and may not represent the views of any firm or entity with whom he is affiliated. The data, information, and content on this blog are for information, education, and non-commercial purposes only. Returns from index funds do not represent the performance of any investment advisory firm. The information on this blog does not involve the rendering of personalized investment advice and is limited to the dissemination of opinions on investing. No reader should construe these opinions as an offer of advisory services. Readers who require investment advice should retain the services of a competent investment professional. The information on this blog is not an offer to buy or sell, or a solicitation of any offer to buy or sell any securities or class of securities mentioned herein.
Monday, August 3, 2009
There's a Hole in Your Wallet
Chances are you waste a lot of money each month. You probably recognize some of the ways you could live less expensively, but here are a few you might not:
- If you're stashing your cash in an ordinary bank checking or savings account, you're missing out. It would work harder for you by sitting in a high yield savings account. You can even get an interest-bearing checking account. Check out ETrade or ING.
- Your home electronics are sucking juice (more than you would think, too) when they are turned off. If you can't bring yourself to plug and unplug all the time, you can buy power strips that will stop drawing electricity when the item is turned off.
- Do you complacently pay your insurance bill when it comes? Rates can vary drastically from insurer to insurer. Re shopping your home and auto insurance could save you a bundle. You'll also want to examine your deductibles and coverage every so often to make sure you still need what you're paying for.
- Say you're a diligent saver and you automatically invest a little each month into mutual funds. Make sure you're not paying an upfront fee, or load on that fund. You might also be paying a 12B-1 marketing fee, but these are less expensive and more difficult to avoid than sales charges.
- If you're a smoker, you don't need me to point out how much money you're wasting, let alone the more costly medical care you're signing up for in your future. A pack-a-day smoker at $5.00 a pack spends $1,825 a year on cigarettes. If you're a junk-food or tanning bed fan, that adds up too.
- Do you really need all those cable channels? I've even had luck reducing my cable and cell phone bills by calling and asking. It's worth a try.
- Don't pay for your credit report. You're entitled to your credit report for FREE once every 12 months from EACH reporting company. That means you could be even more diligent and remind yourself to pull your report from a different company once every 4 months. Make sure you visit annualcreditreport.com to pull yours. There are many other sites out there that will be happy to charge you for the privilege.
By Amanda Bashore, CFP®
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