21 February 2014

Weekend Reads for Finance Pros: Math, myRa, and Magic

Posted In: Weekend Reads

I was in Garden Grove, California, this week for CFA Institute’s Wealth Management 2014 conference. There were many great presentations, but one loomed large for me: the session on elder care planning. At the outset, we polled delegates on the percentage of their clients that have a plan in place for long-term care costs. Fifty-five percent said “less than 25%.” That’s a very worrisome — although not altogether surprising — result when you consider that at least 70 percent of people over 65 will need long-term care services and the fact that most people don’t realize Medicaid does not cover long-term care expenses.

Bernard A. Krooks, a founding partner of law firm Littman Krooks LLP, made an excellent point about the disconnect between what clients may need in the future, and the financial planning they actually put into place:

When financial advisers say ‘long-term care’, clients hear “nursing home” and tune out: @LittmanKrooks #CFAWealth

— Lauren Foster (@laurenfosternyc) February 20, 2014

Keep an eye on this blog in the coming weeks and months for content related to the conference — posts, webcasts, and podcasts. In the meantime, here’s a (slighty abbreviated) list of interesting articles, in case you missed them:

Retirement/myRA

“We Are from the Government and We Are Here to Offer You a No Risk, Guaranteed Return Investment Product” (Zerohedge)

Finance and Investing

“The Forever Elusive α” (Statistical Ideas)
“Performance Lessons from David Blaine” (TraderFeed)
“Does Trend-Chasing Explain Financial Markets?” (Noahpinion)
“Evaluating the Dearth of Female Hedge Fund Managers” (Dealbook)
Why is finance so complex? This post is from 2011, but is still a relevant and interesting read. (interfluidity)
“Beware Going Tactical, Allocation Guru Warns” (Financial Advisor)

Mathematics

“Math Explains Likely Long Shots, Miracles and Winning the Lottery” (Scientific American)
“Mathematics: Why the Brain Sees Maths as Beauty” (BBC)
After 400 Years, Mathematicians Find a New Class of Shapes (ars technica)
A webcomic about the frequency of random events. (xkcd)
“Am I Going to Die This Year? A Mathematical Puzzle” (NPR)

Is the Universe a Simulation? @edfrenkel says mathematical truths ‘are objective, necessary and timeless’. http://t.co/VYsWkFK7Wp

— Lauren Foster (@laurenfosternyc) February 18, 2014

Business

Two key strategy questions that many people get wrong: What business am I in, and who are my competitors? “The First Strategic Question Every Business Must Ask” (HBR Blog)
“Big Breakthroughs Come in Your Late 30s” (The Atlantic)

And Now For Something Completely Different

Just read this Roger Angell story, “This Old Man,” a 2nd time. What a beautiful, wise, perfect piece of writing: http://t.co/44QQwdxIyj

— David Grann (@DavidGrann) February 19, 2014

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.

Tags: alpha, investing, math, mathematics, myRA, Retirement

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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.