Financial Advice

Boston University economist Zvi Bodie is as candid as ever in a recent interview published in Money Magazine. Bodie believes that the vast majority of consumers have been deceived by conventional financial advice: The standard models that are used to give investment advice to millions of Americans are fundamentally wrong. We're told that over time, stocks get less risky, but that's bull. Stocks are always risky -- whether in the short or long run. Prices dropped by 37% last year. While...

The Obama Administration is interested in reform that would remove some of the conflicts of interest that exist in the world of financial advice. Financial planners, however, are concerned that these regulatory proposals which are intended to impose fiduciary obligations on all types of financial advisors may result in overall standards that are less stringent than what currently exists. Current fiduciary standards apply to an advisory account and largely impact registered investment advisors (...

The Wall Street Journal reports that more people are turning to accountants for the type of advice typically provided by financial planners and investment advisors. Accountants are justifiably seen as sources of prudent, objective and professional financial advice. These "boring" qualities are in higher demand in the wake of the financial crisis and market meltdown. The American Institute of CPAs reported a 25% increase in of CPAs with Personal Finance Specialist credentials in the past five...