Wall Street Potholes: Insights from Top Money Managers on Avoiding Dangerous Products
Simon A. Lack
Recognize Wall Street tactics for what they are, and make smarter decisions with your money
Wall Street Potholes shares insights into the money management industry, revealing the shady practices that benefit the salesman far more than the client. Bestselling author Simon Lack brings together a team of experienced money managers to give you straight-from-the-source intel, and teach you how to recognize bad advice and when it's better to just walk away. Investors are rightly suspicious that many products are sold more because of the fees they generate than their appropriateness to the client's situation, and that's only the beginning. This book lays it all bare so you can walk into your next deal with your eyes wide open. You'll learn just how big the profit margin is on different products, and why Wall Street intentionally makes things as complicated as possible. You'll learn expert tactics for combatting these practices, so you can avoid buying overpriced products and confidently discriminate against advisors who put their own interests first.
For all the volumes of investment advice on the market, dissatisfaction with the financial services industry has never been higher. This book describes the reason for that disconnect, and tells you how to see through the smoke and mirrors to make the best decisions for your money. Discover the profit margin built into some popular products Learn the reason behind bundling and why Wall Street fears comparison shopping Consider the importance of benchmarking, and why so many firms avoid it Become better informed so you can easily recognize poor investment advice
If asking questions of your financial advisor only nets more confusion, if you want to have more control over your money, you need a firm grasp of how these firms manipulate your trust. Wall Street Potholes tells you what you need to know to become a smarter investor.
notes that are linked to swap rates and play on the shape of the yield curve can be up to 15 years long. When long maturities are coupled with complete illiquidity, risk rises substantially. Fifteen years is a long time to sit with exposure to any borrower, but it borders on foolish when you cannot sell that exposure should the credit conditions of the borrower change during the life of the note. This issue of credit quality was thrown into stark relief during the crisis of 2008 and the
True. Although hedge funds have long been associated with fabulous wealth, a little-appreciated fact was that substantially all the profits generated by hedge funds had been eaten up in fees paid to the hedge fund managers themselves. Funds of hedge funds and consultants had taken the rest, with the result that, while hedge funds had been fantastically profitable investments, those profits had not made their way through to the clients. The book caused quite a stir within the hedge fund industry.
putting the interests of their clients first. I have friends who do just that, and I'm not trying to criticize a whole industry. But they're not all good, and the bad ones create a problem for their clients as well as for the rest of us. Some feel it would make a lot of sense for the people who work at brokerage firms and call themselves financial advisors to adopt a fiduciary standard, the same as investment advisors. (Yes, I know it's confusing. Financial advisors sound like investment
following table. The most well-known designation is the CFP® certification. As of Dec. 31, 2014, there are 71,296 CFP® professionals in the United States (CFP Board). I have been a CFP® professional since 1992. The CFP® board does not like us to use the term “Certified Financial Planner” because it implies that we have been specifically certified or approved. Instead, it prefers us to call ourselves CFP® professionals. The number of certificants has grown steadily since the early 1970s birth of
else, the absence of a clear benchmark is invariably to the advantage of the one whose responsibility it is to generate the results. My question was receptive to a wide range of answers. The manager could suggest almost any measure of assessing results, as long as it was measurable. He could select comparison with an obscure hedge fund index I'd never heard of, or state a number, such as “at least 10%” (although we'd also have to agree on a risk measure, too, since without it a 10% return target