FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Tim Duncan is suing his former financial advisor over a make-up company (ESPN)
San Antonio Spurs star Tim Duncan is suing his former financial advisor again.
“The lawsuit, filed last week, claims Charles Banks of Atlanta urged Duncan to invest $US1.1 million in a cosmetics company that Banks said was profitable when it was actually about to become bankrupt,” according to the report.
Back in January, Duncan filed the initial lawsuit against Banks, claiming that his ex-advisor “hustled” him.
Americans think caring for two ageing parents is more demanding than caring for two toddlers (Financial Advisors Magazine)
A new survey by Northwestern Mutual suggests that American adults aren’t ready to take care of their ageing parents. 60% of those surveyed think caring for two ageing adults is more demanding than caring for two toddlers.
“66% say paying the extra costs would make a large financial impact on them and 38% say they have not planned for these costs,” reports Karen Demasters. “When asked where the money would come from, 48% say they would cut discretionary living expenses, 27% say they would take it from their retirement savings and 20% say they would get another job.”
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Brazil wants to get its act together, but it’s going to be a long haul (Advisor Perspectives)
Brazil hasn’t taken China’s slowdown well. So now, newly re-elected president Dilma Rousseff is finally trying to spin out of the old strategies and come up with new ones. For starters, she has re-opened trade negotiations with Europe and is pursuing more prudent fiscal policies.
“The reform should encourage Brazilian investors, but after almost two full decades of ill-conceived policies, it will take a long time to bear fruit. Even with political support — and that is by no means sure — reform can at best only go slow,” argues Milton Ezrati of Lord Abbett. “The lingering effects of all these past errors will not only weigh directly on the economy but also constrain the pace of reform.”
“America’s effort to expand access to student loans — a fundamentally good initiative, aimed at enabling more people to pursue higher education — carries [economic] risks,” argues Mohamed El-Erian, chief economic advisor at Allianz.
“What policymakers must determine is how to invest in education in ways that maximise these benefits, without creating new risks.”
As such, El-Erian suggests that, firstly, the US government should look not only to boost growth, but also to avoid a reduction in long-term growth potential. Second, universities should “rein in” their costs. And third, US households should be encouraged to start saving earlier for education.
Four brokers managing $US700 million, Ross Fox, Matthew Papazian, Marti Awad, and Sarah Keys, have resigned from their positions at Merrill Lynch in order to launch their own private practice, Cardan Capital Partners, WSJ’s Michael Wursthorn reports.
“More financial advisors at the major firms are ditching their positions at companies like Bank of America and Morgan Stanley to launch their own practices or join one already established, in part, because of the allure of an ownership stake in a private practice
,” writes Wursthorn.
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