Hot off the press

From Investment News:

Schapiro exiting, Walter named acting SEC boss

President Barack Obama’s selection of Elisse Walter to replace outgoing Securities and Exchange Commission chairman Mary Schapiro will have a big impact on whether a potential regulation that would significantly change the standard of care for investment advice becomes a reality.

Mr. Obama announced that he is appointing SEC commissioner Walter as chairman, when Ms. Schapiro departs in December. Ms. Walter is eligible to serve as the chair until the end of 2013 — unless she is named to permanently fill the role, which would require approval by Congress.

Full story at

Good Gig

Headline from the Investment News story . . .

Best job in America? Financial adviser makes CNN’s list

I’m not surprised but certainly pleased that the media recognizes how cool our job really is.

Real People

If you’re not familiar with the concepts of behavioral finance it’s worth exploring. BF is concerned with real people (i.e., our clients), not the “rational” investor we so often read about. My partner Deena and I recently spoke at the U.K. financial planning convention where we had the opportunity to meet Greg Davies, a Barclay Managing Director and Head of Behavioural Finance and Investment Philosophy who introduced us to some of the work his firm is doing in this area. If you’re a newbie to the field, an excellent source to begin your education with is the Barclay’s Wealth Management site – If you’re an old hand, it’s still an excellent resource.

Is It Really Uncle Sam?

A good tip from the IRS via my partner Deena.

Don’t Fall for Phony IRS Websites
The Internal Revenue Service is issuing a warning about a new tax scam that uses a website that mimics the IRS e-Services online registration page. The actual IRS e-Services page offers web-based products for tax preparers and payers, not the general public. The phony web page looks almost identical to the real one. The IRS gets many reports of fake websites like this. Criminals use these sites to lure people into providing personal and financial information that may be used to steal the victim’s money or identity.

The address of the official IRS website is Don’t be misled by sites claiming to be the IRS but ending in .com, .net, .org or other designations instead of .gov. If you find a suspicious website that claims to be the IRS, send the site’s URL by email to Use the subject line, ‘Suspicious website’.

Be aware that the IRS does not initiate contact with taxpayers by email to request personal or financial information. This includes any type of electronic communication, such as text messages and social media channels. If you get an unsolicited email that appears to be from the IRS, report it by sending it to

Not very exciting

If you have clients making retirement plan contributions it’s important to know that retirement plan deferral limits are increased in 2013; just not very much.

The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500. The PLANADVISER article also discusses changes in other plan areas.

Full link to the PLANADVISER article:

Bill Gross vs. the Equity Cult – the Test is Over

Test is over. Congratulations to those of y’all who figured it out.

For those of y’all who may have been a bit confused, it may make more sense starting with page 1 (my last link was to page two – sorry).

Bill Gross vs. the Equity Cult

An interesting but sobering article by Professor Michael Finke, my associate at Texas Tech.

I love an optimist

We all read such scary headlines in the media I thought you might enjoy the musings of one optimist.

In a Bloomberg Businessweek interview, when asked “Did I see earlier in the year that you broached the possibility of Dow 15,000 by next year?” Professor Jeremy Siegel answered: “Oh yeah, I’m sticking with that—now, this is important: by the end of 2013, not the end of this year. I still think it’s over 50-50 that we’ll be above 15,000 by the end of next year. I would not at all be shocked if we got to 17,000.”

Fingers and toes crossed.

Harold Evensky Speaks at Wharton

From RIJ Advisor:

“Last May 4, venerated financial advisor and author Harold Evensky delivered the dinner keynote address at the 2012 Pension Research Council Symposium at the University of Pennsylvania. The 39-minute address is worth hearing in its entirety.”

Click here to watch the video.

Dow’s Worst Days

Some interesting statistics from AdvisorOne

There were 70 trading days between October 28, 1928 and April 20, 2011 on which the Dow lost more than 5.0% in a single day. The following chart lists the worst days in the DJIA. Twelve were from the 1929 crash and ensuing depression. Four occurred in 2008, two in 1987, one in 1997 and one in 2001.

Date Loss %
10/19/1987 -22.61%
10/28/1929 -13.47%
10/29/1929 -11.73%
10/5/1931 -10.73%
11/6/1929 -9.92%
8/12/1932 -8.40%
1/4/1932 -8.10%
10/26/1987 -8.04%
6/16/1930 -7.87%
10/15/2008 -7.87%
7/21/1933 -7.84%
12/1/2008 -7.70%
10/9/2008 -7.33%
10/18/1937 -7.20%
10/27/1997 -7.18%
10/5/1932 -7.15%
9/17/2001 -7.13%
9/24/1931 -7.07%
7/20/1933 -7.07%
9/29/2008 -6.98%