Minyan Mailbag: Fiscal Literacy
Editor's Note: Minyanville is a community of people who share an interest in fiscal literacy. As perspective is an important aspect of our daily routine, we share this email with hopes that it adds balance to your process
Apropos of some of your recent comments regarding people that are so thirsty for knowledge, they'll "drink the sand", I just got off the phone with the mother of one of our clients. We manage a court-supervised Special Needs Trust for her disabled 6 year old son, and she had a few questions about the quarterly report she had received. In the course of the conversation she mentioned that she and her husband had recently consolidated all of their accounts with a financial planner and she liked being able to look at their stocks online and check the balances every day, and that "it was kind of fun watching them go up"!
At that point, I had a feeling what was coming next, and sure enough, she had shown the report to their financial planner and he "had some concerns" about the portfolio, thought it was invested "much too conservatively for the child's long term time horizon" and with way too much cash. She then said the financial planner would be happy to call me and discuss a "more appropriate allocation" for her son.
Having dealt with these questions many times in the past, I gave our standard response which is that I would be happy to talk to him, but that we were an Independent Trustee serving at the appointment of the Court, that we make our own investment decisions, and as a fiduciary, particularly for Special Needs Trusts, capital preservation is the primary objective. (As we say internally here at the office, Rule #1 is Don't Lose the Client's Money, Rules #2,3,4,5 - See Rule #1.)
In my head, however, I was thinking that I would really like to see what her financial planner had them invested in - and what her reaction is going to be when it stops "going up every day". So I guess this is a lengthy way of saying that I very much concur with your opinion that there is still much work to be done in the area of fiscal literacy, and I hope that Minyanville will be a big part of that.
p.s. I know you don't do "advice" in MV, but I'm taking some of yours anyway, and taking my first summer vacation in 6 years next week (in the middle of earnings season no less!).
Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter