Friday, September 11, 2009

Short Takes: Genetics of Asset Allocation, Fund Fee Court Battle, and Lining Financial Advisor Pockets

1. Larry MacDonald reports on a study that finds that our genes are partially responsible for our asset allocation choices. It seems unlikely that our genetic tendencies concerning risk are particularly useful for investing, but we have difficulty sticking to reason to make choices.

2. Thicken My Wallet gives a clear explanation of a court battle over US mutual fund fees. If US courts decide to shake up the mutual fund industry by limiting their ability to charge unreasonably high fees, it will be interesting to see if Canada eventually follows suit.

3. Preet gives us an insider’s look at a financial advisor technique for collecting huge fees just short of retirement. Unfortunately, all these extra fees have to come out of investors’ assets.

4. Larry Swedroe reports that Americans spend about $80 billion on active management for investments each year. That’s pretty good money for a group that collectively adds no value.

5. Rob Carrick reports on Vanguard’s investor forum in Toronto. Despite the title of the article, it seems that Vanguard has no plans to bring their low cost ETF operations to Canada.

6. Canadian Capitalist finds that the book Enough Bull has some good points, but also makes its own contribution to the amount of bull in the world.

7. Big Cajun Man is concerned about bank tactics in attracting new customers on university campuses.

8. Scott Adams shows how to easily manipulate people who like to disagree with everything you say.

9. Million Dollar Journey discusses the advantages and costs of setting up a corporation.


  1. Thanks for the link. I am suspecting if the U.S. Supreme Court decides in favor of the investor (a big unknown), I don't think you will see an immediate effect in Canada since the argument for higher fees in Canada has been smaller market, different regulation etc etc not to mention the Canadian citizen is less activtist than their American counterpart. Have a good weekend.

  2. I doubt Canadian investors would have any success fighting high fees through the courts. It is hard enough holding the finance industry to account even when there is reason to suspect malfeasance.

  3. Thanks for the mention, have a phenominal weekend.