Wall Street Potholes

Wall Street Potholes
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A guide to promoting literacy in the digital age With young children gaining access to a dizzying array of games, videos, and other digital media, will they ever learn to read? The answer is yes—if they are surrounded by adults who know how to help and if they are introduced to media designed to promote literacy, instead of undermining it. Tap, Click, Read gives educators and parents the tools and information they need to help children grow into strong, passionate readers who are skilled at using media and technology of all kinds—print, digital, and everything in between. In Tap, Click, Read authors Lisa Guernsey and Michael H. Levine envision a future that is human-centered first and tech-assisted second. They document how educators and parents can lead a new path to a place they call 'Readialand'—a literacy-rich world that marries reading and digital media to bring knowledge, skills, and critical thinking to all of our children. This approach is driven by the urgent need for low-income children and parents to have access to the same 21st-century literacy opportunities already at the fingertips of today's affluent families.With stories from homes, classrooms and cutting edge tech labs, plus accessible translation of new research and compelling videos, Guernsey and Levine help educators, parents, and America's leaders tackle the questions that arise as digital media plays a larger and larger role in children's lives, starting in their very first years of life. Tap, Click, Read includes an analysis of the exploding app marketplace and provides useful information on new review sites and valuable curation tools. It shows what to avoid and what to demand in today's apps and e-books—as well as what to seek in community preschools, elementary schools and libraries. Peppered with the latest research from fields as diverse as neuroscience and behavioral economics and richly documented examples of best practices from schools and early childhood programs around the country, Tap, Click, Read will show you how to: Promote the adult-child interactions that help kids grow into strong readers Learn how to use digital media to build a foundation for reading and success Discover new tools that open up avenues for creativity, critical thinking, and knowledge-building that today's children need The book's accompanying website keeps you updated on new research and provides vital resources to help parents, schools and community organizations.

Оглавление

Simon А. Lack. Wall Street Potholes

Preface

Acknowledgments

Chapter 1. Non-traded REITs: A Security That Shouldn't Exist

Poor Advice

Why Not Get a Listing?

Disingenuous Advice

Whose Side Is Your Financial Advisor On?

Where Are the Regulators?

Overall Returns Are Poor

The Importance of Benchmarking

Puts and Calls

Financial Advisors Need to Do Better

Chapter 2. Why Investors Pay Too Much for Yield

The Mysteries of Closed-End Funds

Investors Can Overpay to Simplify Their Taxes

The HFT Tax

When Managers Run a Company for Themselves

The Ham Sandwich Test

If the Prospectus Says You'll Be Ripped Off, It Must Be Legal

Timing Is Everything

Chapter 3. Why Structured Notes Are Rarely the Best Choice

Caveat Emptor!

Structured Note Basics

Why Buy Structured Notes?

The Heart of the Matter: The Arguments Against

Chapter 4. Update to The Hedge Fund Mirage

Hedge Funds Remain a Great Business

Industry Reaction to the Dismal Truth

Why Hedge Funds Are Still Growing

Some Accounting Rules Are Dumb

Politics Drives Asset Flows

Too Much Capital

For Once, the Retail Investor Wasn't Duped

Chapter 5. Why Is Wall Street So Inefficient?

Why Is Finance So Expensive?

Trading Doesn't Build a Secure Retirement

Invest Time before Money

Sex and Investing

Complexity Sells

The Hidden Costs of Municipal Bonds

Some Bankers Just Don't Think

Chapter 6. The Un-Portfolio and Better Portfolio Management Techniques

Background

Un-Portfolios and Diversification

Fees and the Black-Box Models

Other Examples of Un-Portfolios

Exchange-Traded Funds

Mutual Funds and Fees

Load Funds

Fiduciary Duty

Portfolio Management Basics

Summary and Conclusion

Bonus Section

Chapter 7. Annuities

Introduction

What Is an Annuity?

What Are the Different Types of Annuities?

Variable Annuities

Associated Risks

Other Risks Are Lack of Flexibility

Variable Annuity Riders

Illiquidity, or the Lack of Being Able to Get to Your Money

Evaluation of Returns: Investment Options inside of Variable Annuities

Fee and Charges

Options If You Already Own an Annuity

When Should You Consider Using an Annuity?

Recent Developments with Annuities

Savings Bonds: Little-Known Good Deal

Chapter 8. Is the Most Important Professional in Your Life Even a Professional?1

My Start as a Broker

Pressure to Generate Business

Why You Don't Invest with Borrowed Money

Has the Industry Made Any Progress?

Is Financial Advisory a Profession?

Why You Want a Fiduciary

More Things to Consider When You Choose Your Advisor

A Better Way to Measure Results

Chapter 9. Putting Investors First

The Future of Finance

Understand Who Your Advisor Works For

Really Understand the Fees

Try Asking These Questions

What Else Can Be Done?

The Role of CFA Institute

Bigger Isn't Always Better

About the Contributors

About the Author

Bibliography

Index

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Отрывок из книги

Financiers were never especially well liked prior to the financial crisis of 2008. The bank bailouts compounded a general belief that bankers always make money regardless of the outcomes for their clients. This popular view had never sat easily with me as one who had made his career first in London and then on Wall Street. Although there were inevitably bad actors, I clung to the idea that part of the reputational challenge was the result of poor understanding by the general public.

Then I met Penelope, as described in Chapter 1, and was prompted to learn about non-traded REITs (real estate investment trusts), a murky corner of the securities markets that can only damage the reputation of anybody involved in the sale of these instruments to the general public. The fees, conflicts of interest, disingenuous marketing, and more fees were breathtaking. That it was all legal, because of its disclosure via a thick, densely written prospectus, was astonishing.

.....

However, not all REITs are good, and a particular class of them called “non-traded REITs” is generally to be avoided. Penelope had unwittingly invested some of her savings in the wrong kind of REIT, one that provides substantial guaranteed fees to the broker selling it while often generating disappointing returns for the investor.

Public securities are registered with the SEC under the 1940 Investment Company Act. Registering a security requires the company to meet various tests for accounting standards, transparency, and so on. The advantage of registering is that the security can be sold to the general public. Unregistered securities have a far more restricted set of potential buyers. The investors have to be “sophisticated” (meaning wealthy, in this case), and the seller of such securities has to adopt a targeted marketing approach, going directly to people he thinks may be interested. You won't often see an unregistered security advertised, because the laws are designed to prevent that.

.....

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