Practical analysis for investment professionals
26 April 2013

Weekend Reads for Financial Advisors: Behavioral Finance, Retirement, and Bogle on Fees

Posted In: Weekend Reads

Have you heard about the Baader-Meinhof Phenomenon? I hadn’t until I was looking for a term to explain that feeling where you come across a piece of information (or see something), and then it seems to crop up again. And again. That’s what I experienced this week with regard to mutual fund fees and active versus passive investing.

First I spotted a tweet by my colleague Steve Horan, CFA.

Then I watched a Frontline documentary about America’s broken retirement system in which John “Jack” Bogle had some choice words about fees. (Two of my favorite lines: “The magic of compound returns is overwhelmed by the tyranny of compounding cost”; and when you own long-term, low-cost index funds, “you are a creature of the market and not of the casino.”) And then I stumbled upon a British video clip about passive investing. (Links to all of these are included below).

And that was in between catching up on some of the bigger news stories of the past couple of weeks: A graduate student named Thomas Herndon helped successfully challenged the findings of Harvard University’s Carmen Reinhart and Kenneth Rogoff, who claimed that nations with a great deal of public debt inevitably face slow growth or economic contraction. (The brouhaha even provided fodder for the late-night comedy show The Colbert Report.) Dzhokhar Tsarnaev was arrested in connection with the Boston Marathon bombings. The AP’s twitter account was hacked, causing panic and sending the Dow plunging. And the dollar moved closer to the psychologically important level of Y100 against the yen. (And by the time you read this, may have breached that level.)

So, if you didn’t get around to all the reading you had intended to, here’s a quick roundup of some of the articles and video clips you may have missed:

Behavioral Finance

Retirement Planning/Eldercare


Practice Management/Social Media

  • Next time you’re hiring, consider asking the candidate: “If I were to speak to colleagues or supervisors who weren’t on your reference list, someone who you didn’t always get along with, what would they say about you?” In a recent Corner Office column, Nancy Aossey, president and chief executive of the nonprofit International Medical Corps, explains: “It forces people to think about themselves in a different way, through the lens of others and not their own.” (New York Times)
  • Eight Things Financial Advisors Shouldn’t Do on LinkedIn” (Financial Planning)

The Industry

And Now for Something Completely Different

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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About the Author(s)
Lauren Foster

Lauren Foster was a content director on the professional learning team at CFA Institute and host of the Take 15 Podcast. She is the former managing editor of Enterprising Investor and co-lead of CFA Institute’s Women in Investment Management initiative. Lauren spent nearly a decade on staff at the Financial Times as a reporter and editor based in the New York bureau, followed by freelance writing for Barron’s and the FT. Lauren holds a BA in political science from the University of Cape Town, and an MS in journalism from Columbia University.

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