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Profits Eclipse Heritage at TIAA

Recently, I came across an article in the New York Times in which I learned some behind the scenes practices of the financial firm TIAA and I must say, I was disappointed. TIAA (Teachers Insurance and Annuity Association) has long been seen by educators, medical professionals, administrators and researchers as different than many other financial institutions in their commitment to putting their clients’ interests first. Although that may have been the heritage of TIAA, it appears that their current practices might be calling that commitment into question. “According to interviews with 10 former employees, TIAA management assigned outsize sales quotas to its representatives and directed them to meet the quotas by playing up customers’ fears of not having enough money in retirement and other “pain points.” In addition to this, whistle-blowers have alleged that the company willingly placed investors into products that did not offer additional benefit, were unsuitable and deliberately charged more in fees than other products.

We are not usually ones to bad mouth other financial institutions. Consider this simply passing along a public service announcement. The statement, truth is stranger than fiction, applies here. I could have never made up the depth and breadth of the behavior for TIAA.  They are just one of many larger institutions who act in a less than favorable way towards their clients for their own gain.

For years we have helped professors navigate TIAA's labyrinth of options. We never understood how certain products would always be in the portfolio of a client when it may not be in their best interest. This exposure has helped answer some of those questions. TIAA is not wholesome financial institution that was a part of their original charter.

We encourage you to read the full article and don’t forget, we have been a fiduciary will always be a fiduciary. Without a doubt, our clients interest always come first.

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Recent Market Volatility: What Affects a Stock's Current Price?

After a long period of relative calm in the markets, the increased volatility over recent weeks has resulted in renewed anxiety for many investors.

Since February, the US stock market has experienced some ups and downs resulting in many investors wondering what the future holds and if they should make changes to their portfolios.[1] While it may be difficult to remain calm during a volatile stock market, it is important to remember that volatility is a normal part of investing. Additionally, for long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself.

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Looking for Answers in the Wake of the Recent Market Correction


The recent drop in the stock market has most people looking for answers. What is going on? Why have stocks dropped so much in such a short amount of time? Market-timers and short-term traders move markets in the course of hours, days, or even months, but we believe the long-term profitability of the companies we own is what drives long-term stock returns. We also know that the kind of movement we are currently experiencing is little more than noise that can safely be ignored. 10% declines in the market on average will happen every year. We have been insulated from this large a decline since the last drop in 2008-2009. There has been a long continuous run up since then with little volatility. In 2017, there were only 8 trading days when the US stock market went up or down by more than 1%. This low volatility and gradual positive gains may have lulled some into unreasonable expectations for stock market performance.

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What is The Value of Diversification?


It’s not always easy to grasp the value of diversification—why, in other words, it’s better to own many stocks inside a mutual fund than one or two stocks on their own. But recent research conducted by Arizona State U. finance professor Hendrik Bessembinder offers some insight.

Bessembinder is not afraid of numbers. He calculated every one month return of every U.S. common stock traded on the New York and American Stock exchanges, and the Nasdaq exchange, since 1926. Even though nearly half of the 25,782 stocks that have been in existence over this time period lasted 7 or fewer years, this still accounted for 2,524,849 individual monthly returns from July 1926 through December 2015.

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Update! Rescheduled! Tune in to Sirius Channel 111 on 1/23/2018 @ 6:20pm to listen to Ryan Vogel on Your Money hosted by Kent Smetters

Due to an unexpected illness, the radio show host had to reschedule the interview with Ryan Vogel for 1/23. Be sure to tune in then!

Private Wealth Management Group Senior Wealth Advisor and Partner, Ryan Vogel CFP®, will be a guest on the satellite radio show “Your Money” with Kent Smetters on January 23, 2018 at 6:20 PM. The show runs from 5-7 PM on Business Radio powered by the Wharton School and can be found on channel 111 via satellite on SiriusXM.

Business Radio features world-renowned and distinguished professors and alumni as regular weekly hosts, plus executives, entrepreneurs, innovators and other experts as special hosts and guests. Broadcasting from Wharton’s Ivy League campus and Silicon Valley, Business Radio covers every aspect of business in an informative, entertaining and approachable manner — from the biggest headlines of the day to the nuts and bolts of how to build a business from the ground up — with some shows offered via live, call-in format.

Ryan will be interviewed by Kent and then take questions from listeners on the topic of tax-managed investing and charitable giving. If you are a satellite radio listener, be sure to catch Ryan this evening on channel 111.

Your Money

5:00pm - 7:00pm

Host Kent Smetters talks first with author Brian Tracy about his latest book, "Believe It to Achieve It"--including how to set the right kind of goals, financial and otherwise. After that Kent welcomes two certified financial planners, who help him take calls from listeners who need personal finance advice.

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