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behavioral finance
By Christopher Carosa, CTFA | October 29, 2012
Avoiding a DOL audit, the politics of fiduciary and more fun with behavioral economics.
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Posted in Trending Topics | Tagged 401k, behavioral economics, behavioral finance, DOL Audit, fiduciary, Fiduciary Rule, Fiduciary Standard, Mary Shapiro, retirement, saving, SEC
By Christopher Carosa, CTFA | April 27, 2012
A special treat for those who attended my fi360 conference session.
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Posted in Due Diligence | Tagged behavioral finance, framing
By Joseph LoMando | October 4, 2011
Sign, sign, everywhere a sign. Here’s a study showing why segregation is a bad thing even when it comes to portfolio reporting.
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Posted in Education | Tagged 401k, absolute magnitude effect, aggregate reporting, behavioral economics, behavioral finance, Cass Sunstein, disposition effect, Fiduciary Solutions, financial literacy, investment volatility, liability, Myopic Loss Aversion, narrow framing, Nudge, performance reporting, Richard Thaler, risk-averse, segregated reporting, status quo bias
By Christopher Carosa, CTFA | September 27, 2011
New research suggests a better way to communicate critical investment information.
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Posted in Due Diligence | Tagged academic research, Bateman, behavior, behavioral economics, behavioral finance, Benartzi, Fiduciary Solutions, framing, graph, Thaler
By Christopher Carosa, CTFA | September 20, 2011
The research has been around for more than a decade. Why do regulators and the industry ignore it?
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Posted in Due Diligence | Tagged behavioral economics, behavioral finance, DOL, Fallacy of Large Numbers, Fiduciary Solutions, mutual fund, Myopic Loss Aversion, Paul Samuelson, performance reporting, Richard Thaler, SEC, Shlomo Benartzi
By Christopher Carosa, CTFA | August 30, 2011
Here are three easy practices a 401k plan fiduciary can implement to avoid one of the common investing mistakes identified by researchers in the field of behavioral finance.
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Posted in Education | Tagged 401k, 7 Deadly Sins, Anchoring, behavioral economics, behavioral finance, Black-Sholes, Capital Asset Pricing Model, ERISA, fiduciary, game theory, John von Neumann, Modern Portfolio Theory, Monte Carlo, Myopic Loss Aversion, Nudge, Richard Thaler, risk, Second Deadly Sin
By Christopher Carosa, CTFA | October 8, 2010
The two conducted simulations and discovered they can fully explain the Equity Premium Puzzle if investors look at their portfolios on an annual basis. Here’s how it works.
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Posted in Education | Tagged 3rd Deadly Sin, 7 Deadly Sins, behavioral finance, bonds, Equity Premium Puzzle, fixed-income, Modern Portfolio Theory, Myopic Loss Aversion, Richard Thaler, Shlomo Benartzi
By Christopher Carosa, CTFA | January 12, 2010
With the decline of Modern Portfolio Theory as the default operative model, sophisticated investors seek the Holy Grail – the theoretical basis for determining when active will beat passive and when passive will be active. Has it now been found?
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Posted in Due Diligence | Tagged active, behavioral economics, behavioral finance, Efficiency Hypothesis, Fiduciary News, FiduciaryNews, Index, Index Funds, indexing, Journal of Investing, Lipper, Lost Decade, Modern Portfolio Theory, Morningstar, passive, passive-active, Purity Hypothesis, Snapshot-In-Time Anomaly, Thatcher, The Journal of Investing, Willaim R. Thatcher
By Christopher Carosa, CTFA | January 5, 2010
Awful returns suggest investors should have shunned equities during the century’s first decade. Or do they? A closer examination reveals a surprising conclusion, one that might upset the fastest growing segment of the financial industry.
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Posted in Due Diligence | Tagged 401k, active, behavior, behavioral economics, behavioral finance, Dow, Dow Jones, Dow Jones Industrial Average, Due Diligence, fiduciary, Index, Index Funds, liability, Lipper, Lost Decade, Mutual Fund Survivorship, NASDAQ, passive, passive-active, recency, S&P 500, Snapshot-In-Time Anomaly, Standard & Poor's 500, Standard and Poor's 500, survivor bias, The Emperor Exposed, The Lost Decade, The Wall Street Journal, USA Today, USAToday, Wall Street Journal
By Christopher Carosa, CTFA | November 19, 2009
Worried while Washington fiddles? These three vital questions might just help you determine if today’s DOL ruling will increase your personal fiduciary liability.
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Posted in Conflicts of Interest | Tagged 12b-1, 12b-1 fees, 12b1, 401k, behavior, behavioral economics, behavioral finance, Borzi, broker, broker-dealer exemption, bundled, Bush, commission, conflict, conflict of interest, Conflicts of Interest, Congress, default, default investment, Department of Labor, Diagnostic, DOL, Employee Benefits Security Administration, ERISA, fiduciary, Fiduciary News, Fiduciary Standard, George Miller, House, House Education and Labor Committee, ICI, Investment Advice Rule, Investment News, investment option, Investment-Advice, liability, Miller, Modern Portfolio Theory, MPT, mutual fund, Obama, Phyllis C. Borzi, Plan Diagnostic, Plan Diagnostic Test, registered investment adviser, service provider, sweet-bun.info, target date, target date fund, vendor, Washington, Washington DC
FiduciaryNews Trending Topics for ERISA Plan Sponsors: Week Ending 10/26/12
By Christopher Carosa, CTFA | October 29, 2012
Avoiding a DOL audit, the politics of fiduciary and more fun with behavioral economics.
Read the full story...Posted in Trending Topics | Tagged 401k, behavioral economics, behavioral finance, DOL Audit, fiduciary, Fiduciary Rule, Fiduciary Standard, Mary Shapiro, retirement, saving, SEC | Leave a response