Listen up, are you paying attention? Stuff is boiling over around the world. It’s time you prepare accordingly. In talking with a client yesterday, we discussed whole life insurance. I don’t love it. I much prefer term life which we both agreed on (for me, I just want it until my kids are out of college). He said, “You know, that’s exactly what Peter Lynch used to recommend.” You remember Peter Lynch, don’t you? Author of One Up on Wall Street and famed manager of the Fidelity Magellan fund? His name was legendary in the halls of Fidelity when I was working there (Fidelity #1). In thinking … [Read more...]
Why Fidelity is Number One
You don’t build a company such as Fidelity Investments, with more than $2 trillion in assets, overnight. It takes constant focus and improvement, day by day, or kaizen—a Japanese philosophy of daily improvement espoused by former chairman Edward C. “Ned” Johnson III.
When I worked at Fidelity, back in the mid-90s, Mr. Johnson encouraged us, through his memos, to apply the philosophy of kaizen to all aspects of our lives.
Mr. Johnson paid particular attention to kaizen as it related to the firm’s investment in technology. He wanted to make sure Fidelity was second to none.
Read more about why Fidelity is number one below:
Look, I want you to be a happy, long-term investor. It would be easy for both of us if I told you to just buy an index fund, set it, and forget it. That approach may have worked well in the past, but I have concerns moving forward. When the late, great, founding-father of indexing Jack Bogle expressed dismay for his creation on his deathbed, I paid attention. Only a few months before he died, Bogle wrote, “Three index fund managers dominate the field with a collective 81% share of index fund assets: Vanguard has a 51% share; BlackRock, 21%; and State Street Global, 9%. Such domination … [Read more...]
Opportunistic, fresh out of college, young Americans moved to big cities for decades until the COVID-19 pandemic and the BLM/Antifa riots and looting hit in 2020. For a new generation whose college educations couldn't be put to use in their suburban or rural home towns, city living was the best path to success. Now, with the rise of remote working, governors gone wild, and America's big blue cities in chaos, young people are finding their way back home in what one professor calls a rethinking of the "balance of our lives." Here's the story of one couple who came back to Rhode Island, … [Read more...]
Confidence among workers about retirement is nearing record highs, with 72% confident they will be able to retire comfortably. That's close to the record set in 1993 when 74% of the workforce was confident in retirement. Anne Tergesen writes in The Wall Street Journal: About three-quarters of U.S. workers and retirees believe they will have enough money for retirement, an increase from a year ago, according to a survey released Thursday. The survey from the Employee Benefit Research Institute provides a snapshot of how Americans feel about their retirement prospects. Among workers, … [Read more...]
Who's got your back in the world of finance when the going gets tough? And some other thoughts. When Georgia changed its voting laws, and over 100 CEOs and business leaders signed a letter in protest, did they even read the law? File this under my "You Invest, They Win." Are you surprised to see BlackRock CEO Larry Fink or Vanguard? You can check out the list below. Sell in May go away? Has there been a better time to be a seller of real estate? 2006 comes to mind. If you're a buyer, stay off the beaten path. Here's Your Survival Guy's tip of the day. Keep a chunk of your stock … [Read more...]
Service is King, even today when many financial firms treat it like the Joker. Try getting a copy of your 1099, or figuring out a K-1. What you’re faced with is, perhaps, hours in a phone queue maze with no satisfactory answer. Some of these firms, not Fidelity, are too big and end up failing simple tasks. Other’s are left offering funds that are too big (like some of Vanguard’s) and then fail to meet the needs of investors (such as ESG funds from BlackRock and others) while trying to save the world. All you want is what you asked for, is that so hard? For some, in a word, yes. Action Line: … [Read more...]
The financial services business is booming. The keyword being “services.” Because as millions of existing and new retirees look for help, the demand for service is stretching some firms’ capacity to help them. Not Fidelity’s, because, as you know, Fidelity is #1. With all the talk about robo-advisers, one fact remains with automated services; nothing can replace a live conversation with a financial adviser. I know my customers. I know when their emotions are high, and that’s something I don’t see a robot catching. Service is a huge part of getting your finances right. I know you don’t … [Read more...]
UPDATE, 3.29.21: One of the best ways FidSafe can help your family is with useful estate planning document management tools. You can start out on FidSafe with their estate planning checklist, that helps you organize all your most important files the right way. There are many documents you'll need to be fully prepared, including a last will and testament, durable power of attorney, trust documents, marriage licenses, vehicle titles, charitable wishes, deeds, and more. FidSafe helps you remember it all, keep it safe, and have it ready when needed. Originally posted on September 24, 2020. A … [Read more...]
You probably have dozens of apps on your smartphone. Chances are they are collecting your personal information en masse, and either selling it to third parties or keeping it for themselves. Most likely both. You have read here about the widening surveillance state I'm calling the virtual panopticon. The efforts by the government to surveil Americans are expanding quickly as technologies make it easy to watch every part of your life. But how much surveillance are you inviting right into your home? Apps on your phone are collecting massive amounts of information about you every day. Some … [Read more...]
Yours truly can attest to Fidelity’s banner year, as business is booming in my neck of the woods. Never before have I opened more accounts for existing and new customers. Who would have thought this would EVER happen in a pandemic year? I certainly did NOT. But as I’ve written to you before, when it comes to investing, you don’t want to be in the PREDICTION business. It never hurts to have a front-row seat, though. “Fidelity’s Retail Investor Accounts Rise 17% to 26 million” reports the WSJ here: Fidelity Investments capped 2020 with record annual operating profit, lifted by strong … [Read more...]