Editor's picks from around the Web — 5/20-5/24
By Vanessa De La Rosa
This week's picks include whether or not Web-based investment tools are competition for advisors, mistakes 60-year-old men are making about the economy, advisors' lack of succession plans, an opinion about the best annuity right now, ways to help middle-class clients with estate planning, and this question: Could Obama be America's best president in terms of our economy? Feel free to leave your thoughts and comments.
This is the biggest mistake 60-year old men make about the economy (The Atlantic)
"Give me Volcker, not Keynes. Give me penance, not prosperity. Give me hard choices, not easy ways out. But most of all, give me what worked in the past. That would all be fine if it were still 1979. It's not. The facts have changed. It's time for inflationistas to change their minds."
Why baby boomers need to get real about health and long-term care costs in retirement (Forbes)
"Millions of Baby Boomers are totally unprepared for the medical care and personal care they are likely to need in retirement. All the denial in the world won’t make those needs go away. And the consequences of ignoring the problem can be catastrophic."
Aging advisors lack succession plans (Financial Advisor)
"The shift in business from retiring advisors to a younger generation of advisors over the next decade will require advisory firms to address the retirement issue or risk losing clients."
Would you take financial advice from an algorithm? (CNBC)
"The Internet put research tools at private investors' fingertips, robbing money managers of some of their mystique. A portfolio-punishing recession further fed disenchantment, and as fees drained already-depleted gains, investors began demanding more transparency. The Web-based programs have moved into that breach."
5 ways to help middle-class clients with estate planning (LifeHealthPro)
"Of particular value is explanation of the various forms of power of attorney, such as how a durable power of attorney is stronger than the normal assignment, or what can trigger a springing power of attorney. It may be more comforting — and would definitely be less expensive — for a client to hear this advice from a financial expert rather than a lawyer."
What’s the best annuity right now? (MarketWatch)
"In my opinion, annuities should be owned for their contractual guarantees only and should not be purchased for any projected or hypothetical return scenarios. Most fixed-indexed annuity (now incorrectly hyped has "hybrids") and variable annuity agents still inappropriately sell the dream of market returns as the primary reason to own annuities. "
Economically, Could Obama Be America's Best President? (Forbes)
"Although we hear almost no one in the Obama administration taking credit for record index highs, they should. Because the President deserves attention for how well this economy has done during his leadership."
In debt, and (not) planning for retirement (On Wall Street)
"'Millennials will say It’s either I’m going to pay down my debt, or I’m going to save, but I just don’t see my way clearly to do both,’ said Karen Wimbish, executive vice president and director of retail retirement at Wells Fargo, at a presentation on Wednesday. 'That’s concerning because this generation, more-so than any other before them, is going to be primarily if not solely responsible for whatever their retirement looks like.'"
GOP needs to reframe IRS scandal (The Hill)
"The push to reframe this scandal must begin by putting a face on the citizens whose rights to form organizations were trampled. Get the investigation back to Cincinnati and the heartland where we can see the abuses of federal power and the impacts on ordinary people’s lives. Enough with the suits in Congress."