Friday, August 6, 2010

Short Takes: Financial Tuneups and more

1. Canadian Capitalist had some harsh words about a web site’s financial tune-up services. The retorts were entertaining, but far from relevant.

2. Preet takes BMO to task for trying to add “ETF” to their index mutual fund names to cash in on the popularity of ETFs.

3. Money Smarts has another funny tenant from hell story.

4. Big Cajun Man is fretting about his huge cash outlays for his kids’ schooling.

5. Planning a trip to Europe? Million Dollar Journey has a list of 8 ways to save money in Europe.

6. Financial Highway explains that while a credit card can be for emergency purchases, it shouldn’t be an emergency fund.


  1. Chevreau takes Pape to task for ignoring ETFs. But it's hard for an old dog to learn new tricks. Pape built a career around dispensing advice on mutual funds (remember those annual gudes to buying the best mutual funds)?

  2. I read that Dan Richards columns too. While I agree that I wouldn't personally want to do all the work and not get paid either, I'm not sure DSC is the right answer. IMO, the negatives such as temptation to unnecessarily churn the portfolio, earn fat fees for doing little or no work outweigh any positives DSC may have.

    Thanks for the mention!

  3. Thanks for the mention, I am fretting, but dealing with it. Have a pleasant weekend.

  4. @Larry: Instead of looking for reasons to ignore ETFs, Pape should properly examine the relative benefits of mutual funds and ETFs.

    @CC: The biggest problem with DSCs is that the costs are way too high compared to what the typical investor gets for his money. Richards trots out an example where the advisor does a pile of useful work for a client, but this is hardly typical.

  5. Thanks for the mention - have a great weekend!

  6. Dan's example of the advisor spending over 100 hours on a client who eventually moved is the exception to the rule. While I was working as an FA the most common case was client's being neglected by their FA's until they moved portfolios. Agree with CC that DSC may not be the best compensation method, at least there should be minimum client service requirements.

    Thanks for the link!