Coffee heat rising

Check Up on Your Financial Adviser

 What do you know, really, about your financial adviser? Did you realize that America has more than 650,000 registered financial advisers, of whom 7% were disciplined for misconduct between 2005 and 2015, to the tune of a median repayment to customers of $40,000? About a third of these were repeat offenders, who are five times more prone to misconduct than average (Mark Egan, Gregor Matvos, and Amit Seru, “The Market for Financial Adviser Misconduct“).

It’s hard to know how to assess a financial adviser, at least not without using the person’s services over a lengthy period. But you can check up on a prospective adviser’s track record: FINRA runs a website called BrokerCheck. The site reports on whether a broker or brokerage firm is registered with FINRA, information that has been disclosed to regulators, the person’s work history and the brokerage firm’s history, and what the broker or firm is qualified to do based on exams and state licenses.

As financial tools go, this one falls into the don’t-leave-home-without-it category.

Naturally, as soon as I found out about it, I looked my guy up. Squeaky clean. His firm: a congregation of saints. His boss: platinum-plated.

So that’s good.

Out of idle curiosity, I looked up a friend who’s a financial adviser. I don’t  use his services because he’s paid by commission only and because he also sells insurance, both circumstances that invite conflicts of interest.

Lo! Up pops mention of bankruptcy proceedings. In the context it looks like a Black Blot. One wonders, though. There’s nothing like a divorce in the middle of the worst recession since the Great Depression to run you into the hole. So it hardly seems fair to assess the guy on that criterion.

Still: forewarned is forearmed. If you actually were in the market to do business with a financial adviser whose record included a bankruptcy or default, it would be worth asking about it.

Be sure to check the person’s employer or firm as well: My friend’s firm has had 22 “disclosure events” and 11 arbitrations. Some of these are very serious. Example:

WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT SINCE AT LEAST JULY 1, 2009, IT HAS DISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLE ORGANIZATION CUSTOMERS WHO WERE ELIGIBLE TO PURCHASE CLASS A SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALES CHARGE. THE FINDINGS STATED THAT NOTWITHSTANDING THE AVAILABILITY OF THE WAIVERS, THE FIRM FAILED TO APPLY THE WAIVERS TO MUTUAL FUND PURCHASES MADE BY ELIGIBLE CUSTOMERS AND INSTEAD SOLD TO THEM CLASS A SHARES WITH A FRONT-END SALES CHARGE OR CLASS B OR C SHARES WITH BACK-END SALES CHARGES AND HIGHER ONGOING FEES AND EXPENSES. THESE SALES DISADVANTAGED ELIGIBLE CUSTOMERS BY CAUSING SUCH CUSTOMERS TO PAY HIGHER FEES THAN THEY WERE ACTUALLY REQUIRED TO PAY….

THE FIRM WAS CENSURED AND REQUIRED TO PAY $602,322, INCLUDING INTEREST, IN RESTITUTION TO ELIGIBLE CUSTOMERS.

 Holy sh!t. That’s just one of the 22 disclosures…

FINRA RULE 2010, NASD RULES 2110, 3010: THE FIRM FAILED REASONABLY TO SUPERVISE, A REGISTERED REPRESENTATIVE ASSOCIATED WITH THE FIRM. THE FIRM HAD PLACED THE REGISTERED REPRESENTATIVE ON HEIGHTENED SUPERVISION WHEN HE REGISTERED WITH THE FIRM. DURING THE TIME HE WAS ON HEIGHTENED SUPERVISION, THE REGISTERED REPRESENTATIVE MISAPPROPRIATED APPROXIMATELY $122,000 FROM A CUSTOMER ACCOUNT. THE FIRM FAILED TO CONDUCT A MEANINGFUL REVIEW OF THE REPRESENTATIVE’S ACTIVITIES IN CONNECTION WITH THIS CUSTOMER’S ACCOUNT…

CENSURE
MONETERY/FINE: $50,000

Wow!
And Great Galloping Poorhouse Residents, Batman! It gets better!

NASD RULES 2210, 2211, 2110 AND 3010: RESPONDENT FIRM OFFERED ITS CUSTOMERS A FEE-BASED BROKERAGE ACCOUNT, AND RATHER THAN PAYING A COMMISSION ON EVERY TRADE MADE IN THE ACCOUNT, CUSTOMERS PAID AN ANNUAL FEE BASED ON THE TOTAL VALUE OF ASSETS IN THE ACCOUNT. RESPONDENT FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM REASONABLY DESIGNED TO REVIEW AND MONITOR ITS FEE-BASED BROKERAGE BUSINESS. NEITHER RESPONDENT’S PRACTICES IN SUPERVISING ACCOUNT, NOR ITS WRITTEN PROCEDURES FOR A FEE-BASED BROKERAGE ACCOUNTS WERE ADEQUATE. AS A RESULT OF DEFICIENCIES IN THE FIRM’S SUPERVISORY SYSTEMS AND PROCEDURES, RESPONDENT ALLOWED CUSTOMERS TO OPEN AND CONTINUE IN A FEE-BASED ACCOUNTS EVEN IF THE ACCOUNTS WERE INAPPROPRIATE FOR THE INVESTORS IN LIGHT OF THE FEE-IN-LIEU OF COMMISSION STRUCTURE, THE $1,000 MINIMUM ANNUAL FEE, OR THE REQUIRED $50,000 MINIMUM IN ASSETS. AXA COLLECTED FEES FROM THOSE ACCOUNTS AFTER THE ACCOUNTS WENT A FULL YEAR WITH NO TRANSACTIONS, IMPOSED FEES EVEN IF THE ACCOUNT STAYED BELOW THE MINIMUM ASSET LEVEL FOR A YEAR, AND CHARGED ASSET-BASED FEES FOR THOSE ACCOUNTS BEFORE THE ACCOUNTS EVER REACHED THE MINIMUM VALUE THAT WAS SUPPOSED TO TRIGGER THE ASSET-BASED FEE. AXA DISTRIBUTED INACCURATE AND MISLEADING SALES LITERATURE, PUBLIC COMMUNICATIONS, INSTITUTIONAL SALES MATERIAL, AND INTERNAL COMMUNICATIONS IN VIOLATIONS OF NASD RULES 2210(D) AND 2211(D).

FIRM IS CENSURED, FINED $1,200,000, ORDERED TO PAY $1,391,427, PLUS INTEREST IN RESTITUTION AND REQUIRED: WITHIN 90 DAYS TO COMPLETE THE REMEDIATION PROCESS TO CUSTOMERS REQUIRING REFUNDS; WITHIN 120 DAYS FILE A REPORT PROVIDING A DETAILED LISTING OF ALL QUALIFYING CUSTOMERS; AND TO DISCONTINUE OF ALL OF ITS FEE-BASED BROKERAGE BUSINESS….

This stuff goes on and on and on.

And how about my guy’s firm?

Nothing. Zero. Nil. Nada. No complaints.

PLEASE Keep Your Cat Indoors!

Maine_Coon_cat_by_TomitheosWhy do people insist on letting their cats roam loose?

Okay, I know the answer, which I’ll tell you in a minute.

But first let me inveigh against this habit. Obviously, if you let your cat roam around the neighborhood, you don’t care about wildlife and you don’t care about your neighbors. But presumably you like your cat.

Letting your pet out to roam as an “outside cat” is a form of animal abuse. It puts the cat at risk of injury, disease, and violent, painful death. In short, it’s criminal.

Outdoor cats run a good chance of being run over by cars, attacked and killed by dogs and coyotes, infected with feline leukemia and a variety of unpleasant parasites, infected with rabies (cats are now the main carriers of rabies to humans in this country), attacked and injured by other cats, carried off by hawks or barn owls, bitten by raccoons, accidentally poisoned by lapping up leaked antifreeze or rat poison, and deliberately poisoned, trapped, or shot by angry neighbors.

If you loved your cat, why would you put it at that kind of risk?

The answer, of course, is that you would not. Therefore, it’s only reasonable to assume you hate your cat (and your neighbors, and the wildlife for a mile in all directions), and you are deliberately abusing the cat.

Oh, no, you protest. You love your cat! It just won’t stay inside! It rips out the window screens and claws the paint off the doors trying to escape. To that, say I, bullshit. Who’s the human here?

Let me tell you the real reason cat owners let their cats roam around outdoors: They don’t want to clean up after the beloved kitty any more than you or I want to clean up after it. They let their cats outside so that the animals will deposit their urine and feces somewhere else. Admit it: if you do this, it’s because you get about half as much mess to have to clean out of the cat box (and your carpets, and the comforter on your bed, and the cushions on your sofa) as you do when you keep the animal indoors.

Before you fly into a Cat Lover Frenzy, hear me out. I have had a lot of cats in my life, beginning in infancy. Where we lived in Arabia, no dogs were allowed. Dogs would get into it with the jackals that routinely came into camp at night, and the jackals carried rabies. At that time, rabies vaccination for dogs was uncommon; in Arabia it was unavailable. So dogs were banned in camp.

But cats were not. Everyone had cats. At one point, a couple picked up a breeding pair of Siamese cats while they were on short leave in Paris. Before long, the place was overrun with Siamese cats.

Let me think…we had Buttons (an unneutered male that whose chronic war wounds were always in one of three states: open and raw, scabbed, or scarred); Whitey, a (surprise!) white female cat, which had kittens; her funny little white kitten that had a gray spot on its head, right between his ears, exactly in the shape of a pair of horns; Sheba, a seal-point Siamese; a gorgeous long-haired blue-point Siamese; one of his offpsring, a mentally retarded Siamese cat that we named Caslan,  said to be the Arabic word for “stupid.” In San Francisco, another Siamese cat (and its fleas). In Arizona, my mother’s Siamese cat. Then after I married, I ended up with my mother’s Burmese cat and its six kittens, whose chronic diarrhea was more than she could deal with. Then a lilac-point Siamese and a chocolate-point Siamese and two of the lilac-point’s kittens, all four at once. Then the famous Boozer and not long afterward two of her kittens. That would be…what? Yes.

Twenty-two cats, not counting the ones my mother had when I was too little to remember them.

The cats we had in Arabia were allowed to roam the camp. In the 1950s, that was just what people did. There was little traffic, and it was thought that cats would run from jackals, jumping up on cars or climbing trees to get out of reach. But when we came back to the states and bootlegged a cat into our apartment, my mother grasped the idea that cats are better off kept indoors.

And so for years, she and I both had indoor cats.

The last Siamese Tribe of Four, however, gave the lie to the idea that cats will always use a cat box.

Not necessarily so.

And when a cat learns that it can go outside the box, it will go outside the box. Nothing you can do will change the animal’s mind. And no, these cats did not have urinary tract infections and they did not have bladder stones and yes I did keep their damn cat boxes meticulously clean.

They peed and shat all over the house. Their favorite shithouse was the dining-room. They ruined about 2500 square feet of incredibly expensive, ultra-luxurious carpet, the like of which I had never seen before and have never seen since.

The people who sold us the house had fixed it up, planning to live in it permanently, just before the neighborhood’s property values exploded in a frenzy of gentrification. We got the house because its value had shot up so high they simply could not resist collecting. But because they’d figured to be there for a long time, they had installed top-of-the-line everything, including those amazing carpets.

The cats destroyed them.

Before my son was born, I found a new home for all four cats (believe it or not, a doting human took them all in, the poor wretch), had all the stinky carpeting torn out, and replaced it with outrageously expensive wool Karastan that couldn’t even hold a candle to the magnificent carpet the cats had ruined.

Soooo…..

The next cats were outside cats. That would be Boozer and her two kittens.

Why? Because I never wanted to clean up a mess like that again!

For that matter, I hoped never to have to clean and disinfect another cat box again. Although I did. Two of them. About every other day.

Boozer and Blue, her gorgeous male kitten, lived to a ripe old age. But Kit-Tan was poisoned by antifreeze, quite possibly left out by a neighbor who expressed his dislike of these loose beasts, who used the raised garden in his front entryway as their toilet. She suffered hideously. My husband — by then my ex-husband — could not bring himself to put her down. So she suffered hideously for weeks and then for months, becoming incontinent (among other things) and destroying yet another houseful of carpeting.

So I can say from experience that turning a cat out to roam the neighborhood is an act of unadulterated selfishness. No matter how much lip service you give to the joys of the cat’s picturesquely predatory nature, the truth is you do it because you don’t want to deal with a cat’s filth.

And it’s a blatant act of cruelty.

Some people are so besotted with their cats, though, that they simply do not and probably can not register the amount of devastation the animals inflict, the filth and disease they spread, the distress they cause to neighbors, and — most amazingly — the degree of risk a roaming cat faces.

My dear neighbor, lovingly known by her father as “Other Daughter,” is something of a cat lady. She’s the reason my yard’s walls are capped with carpet tack strips — which works pretty well, BTW, to keep the cats out of the yard. She walks around the ’hood a lot, and she sees things. She was horribly distressed when she found a cat run over in the alley. She was heartbroken when she found a cat in front of her house evidently killed by a coyote — she packed it sweetly in a little box and left it out for the dead animal patrol to pick up.

And yet…and yet… It does not register with her that her cats could get run over, her cats could get eaten by a coyote, her cats are a damn nuisance to the neighbors.

The only reasonable conclusion is that she doesn’t want it to register.

New Heights of Stupidity!

Oh god. I think I’m having an allergic reaction to stupidity. Did you see THIS news item? Four-year-old shoots Mom in the back as she’s tooling down the road in her vehicle with a horse trailer in tow.

???W???

???T???

???F???

The moron…sorry: the mom (I’m trying not to be judgmental…it ain’t easy)… The mom leaves a .45 pistol on the floor of the truck. (Oh, wait! Maybe it was her loving husband who did that. So we would still have a moron, but a different moron.) Then she evidently lets the kid bounce around loose inside the truck. If he were strapped into a seat belt, obviously, he wouldn’t have been able to reach the truck’s floor.

Well. It all turned out for the best, eh? The kid didn’t shoot himself in the head. What more could we hope for?

The gun-control vs gun-nut hysteria has already started. Again.

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Considering Grad School? 8 Things to Think About

Come on over to the Plain & Simple Press blog, where I just posted eight guidelines for people who are considering graduate school, especially a Ph.D. program. Or any degree that might lead to a job in higher ed.

Cruising Amazon for another purpose, I happened to run across a book on the same general subject as Slave Labor, apparently (judging from the comments) one whose author shares my jaundiced view of academe.

This led to a rumination: Do I regret having acquired a Ph.D.?

Well, yes and no.

If I had put the same amount of energy and time into climbing the corporate ladder as it took to jump through the Ph.D. hoops, by now I’d own Phoenix Magazine, my first employer in journalism. Or when my boss left Arizona Highways, I could easily have acceded to the throne…and believe me, I’d still be there today, had that been the case.

On the other hand, it did help me get into a few decent jobs, and at Highways it let me enter at the top of my pay grade. And ultimately, I did end up with a full-time, decently paying job in academe, even though it wasn’t on the tenure track. I got an offer for a tenure-track position…declined, because I didn’t want to move to South Carolina. Certainly not for $10,000 less than I was earning here!

If I had it to do over again, I would choose a different discipline: one that would open more doors to employment and that would pay better.

Such as…?

• For the mathematically challenged: a doctorate in educational administration will get you into an assistant or associate deanship or a vice-presidency at any number of colleges and universities. At the Great Desert University, these are decently paying, 12-month jobs, and some of them are even non-exempt. Obviously, such a degree would also buy entrée to a for-profit, proprietary school, if you don’t mind ripping off students even more extravagantly than GDU does.

• For those who can handle courses in statistics: the Ph.D. in economics renders you eligible for all sorts of national and international jobs in corporations, governments, and nonprofits. Think high-level banking jobs…

• A Ph.D. in psychology will let you hang out your shingle as a psychologist and also qualify you for other jobs outside of academia. These are rather more difficult to find than one would like. However…if you combine an M.A. in psych with an M.A. in nursing, presto-changeo! A psychiatric nurse-practitioner! Nurse-practitioners in general are highly sought after, and those with a specialty can easily earn six figures.

• For those whose eyes don’t glaze over easily: a Ph.D. in accountancy. At GDU, a brand-new, fresh-out-of-grad-school assistant professor can come on at six figures. Noooo problem.

• Microbiology could be promising: government jobs, and possibly some corporate jobs in agribusiness, environmental science, public health, or genetic engineering. Back in the day, I would cheerfully have majored in microbiology, except that women were not welcome in the sciences. Conspicously not welcome. Fortunately, that has changed.

It’s something to think about. Preferably before you start a program…

Morning in America! Who knew?

DawnInAmericaYou need to read this extraordinary short piece from The Economist. Folks, contrary to popular reports, America is not skateboarding toward Hell after all. Evoking Ronald Reagan’s campaign slogan, “It’s Morning Again in America,” the author contrasts the current doom-and-gloom mode of presidential campaigning with the more realistic vision of Warren Buffett and James Fallows.

Job growth is booming, largely because of innovation and entrepreneurship taking place in large cities and rust-belt regions. Unemployment is falling, and although wages ticked down slightly in February, the average US wage still stands at $25.35 an hour.

The Economist attributes this activity to three reviving forces:

  • “Old industrial skills are acquiring new relevance thanks to such things as advances in materials science.” These are leading to new technologies and improvements in synthetic materials, textiles, chemicals, and weapons.
  • Cheap property in old industrial cities has morphed into an unexpected asset. Large companies and small businesses are reoccupying and repurposing abandoned mills and warehouses; Silicon Valley-type entrepreneurs are seeking more reasonably priced space in fly-over country, and older industries are re-opening in rural districts.
  • Manufacturing has risen from the dead. “Startups are beginning to transform manufacturing just as they transformed service industries. . . . New techniques such as 3D printing, combined with a rapid decline in the cost of computing power, are making it easier for small firms to compete with big ones.” Crowdfunding sources abet this renaissance by making it easier for budding entrepreneurs to raise capital.

You know, we hear so much that is negative — monstrously negative — that if you read the news much you  become either depressed or crazed.

One of my colleagues remarked that a source of our daily angst is the constant drumbeat of doom and gloom, violence and hatred that sells web pages. She is so right about that. We live in an atmosphere of fear and dread. The Presidential campaign rhetoric distills that to a poisonous elixir.

Don’t drink it, friends. The Brits have got it right: “It is time for Americans to recognise that, for all its troubles, their country has not lost the ability to remake and revitalise itself.”

No, indeed. It’s what we do best.

The Ducks of Spring

Okay, by popular request: DuckDuck and Her Swain:

Ducks Saturday enhanced

Good photo of the Duck Princess. The drake is much handsomer than he appears here. His head is quite a bright bluish green and the flash on his wing is totally crazy blue.

It’s really hard to catch them on a camera. They don’t seem to appreciate being peered at — and they spot you even when you’re peeking out a window at them. They don’t spook as easily as, say, a sparrow, but they’re not as bold as a mockingbird or a hummer. But cameras are definitely not their favorite company. 😀

Another sign of spring: the iris under the olive tree are blooming.

Iris 2016