Hot Topic: Fiduciary Rule

Now the Pope is involved.

Yes, Pope Francis. Just last week the Vatican in Rome issued a bulletin in which Pope Francis took aim at the financial services industry. His broad topic was how financial advisers manage the “savings” of their clients. By “savings” it was taken to mean the savings, investments and accounts of clients. His Holiness even used the word fiduciary criticizing “advisers who failed to act as a fiduciary by not avoiding conflicts of interest and not working as a prudent professional”.^

How about a fun little game of Q&A?

I’m going to provide you with some basic data (no opinions, just facts), and then I’m going to ask you a couple questions.

The Data: Most of us have heard that the stock market has averaged about 10% returns per year for the last 100 years or so. That data point is very close to accurate, although 100 years is high, as the analytical pundits don’t really feel great about the data prior to 1926 (the computers weren’t quite as robust in 1925…). What we can say with certainty is that from 1926 – 2017 (91 years), the stock market – as defined by the S&P 500 – has returned almost exactly 10% per year.

Job Migration: Is it Because of Taxes?

Have you heard about the increasing move or “migration” of jobs and corporate headquarters to cities OTHER than New York and San Francisco? Recent reports highlight not just the move of mere jobs but also the move of the CEO and corporate HQ! Several underlying factors including taxes and home affordability are worth considering.

Nashville made a big splash in the world of investment management when Alliance Bernstein announced it was moving its corporate headquarters to Nashville from New York City!
Nashville made a big splash in the world of investment management when Alliance Bernstein announced it was moving its corporate headquarters to Nashville from New York City!