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☆ Billionaires and CEOs descended on Beverly Hills to talk recession, bank failures, and more. Here's the inside track.
▼ + stars: | 2023-05-07 | by ( Matt Turner | ) www.businessinsider.com time to read: +4 min

On the agenda today:But first: The big takeaways from the Milken Institute Global Conference in Beverly Hills. Senator Joe Manchin (D-WV) speaks at the 2023 Milken Institute Global Conference Mike Blake/ReutersThe big-money set jetted into LA last week for the Milken Global Conference. Biggest opportunityCampbell: The pullback in lending by banks is raising the hopes of those in the private credit industry. Read more:'Junk fees'Getty ImagesIt goes by many names: an administrative fee, a transaction fee, even a "regulatory compliance" fee. Akash Nigam, the founder and CEO of Genies, who is spending $2,400 a month on ChatGPT accounts for all his employees.

☆ How to Deal With Rising Auto Insurance Rates
▼ + stars: | 2023-05-05 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

The federation supports eliminating the use of credit scoring in insurance rating, saying it especially harms lower-income customers and people who live in minority neighborhoods. (At least three states — California, Hawaii and Massachusetts — bar the use of credit scoring in setting these premiums, and a few others limit its use.) Insurers defend giving better rates to drivers with good credit, saying it makes sense because those customers are less likely to file insurance claims. “The vast majority of customers get a better rate because we’re using credit scoring,” Mr. Passmore said. While many people “would rather get a root canal,” he said, getting auto insurance quotes isn’t difficult.

☆ Real estate agents are tacking ludicrous 'junk fees' on to every home purchase
▼ + stars: | 2023-05-03 | by ( James Rodriguez | ) www.businessinsider.com time to read: +15 min

The fee goes by many names: an administrative fee, a transaction fee, or even a "regulatory compliance" fee. Despite the controversy, all signs indicate that brokerages large and small have increasingly embraced the admin fee in recent years. The vast majority of real-estate agents are independent contractors who rely on commissions to earn a living. Admin fees may be one of the most polarizing topics among real-estate agents today. "I'm in a place in my business right now where I can justify paying that," the Las Vegas agent told me.

☆ An explosion of hidden 'junk fees' is making every home more expensive
▼ + stars: | 2023-05-03 | by ( James Rodriguez | ) www.businessinsider.com time to read: +15 min

☆ The cost of investing has been falling. Here's what investors should know
▼ + stars: | 2023-04-26 | by ( Pia Singh | ) www.cnbc.com time to read: +5 min

High fees can take a bite out of your portfolio returns, but the good news is that it's becoming cheaper to invest. Financial services firms charge clients a fee to invest their funds, typically withdrawn from their investment assets. Increased competition, notably in the ETF market and between direct-sold mutual funds, has also contributed to lower investment costs, Hauptman said. "It's important for investors to not just look at one piece of the investing puzzle to the extent that they're getting products and services," Hauptman said. Watch for other costs: If you're investing through a brokerage account, keep an eye out for transaction fees, which can be very painful for the most active investors.

☆ Here are the top 3 reasons to fire a financial advisor, say experts
▼ + stars: | 2023-04-21 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

The advisor doesn't care about your goalsMost investors who fired their advisor cite poor quality of financial advice and services or poor quality of relationship as primary drivers of their breakup, according to Morningstar. watch nowInstead, issues might arise if an advisor doesn't devote enough time to understanding who their client is as a person or their personal financial needs and goals. 3 most frequently cited motivator for firing an advisor, behind lackluster quality of advice and relationship, Morningstar found. "The way I like to frame it is, look at costs and quality," Hauptman said. Or, they can ask the advisor what their dollar fees are — and it's a red flag if they're hesitant to answer, Hauptman said.

☆ Most adults make this simple money mistake, and it’s hurting their financial well-being
▼ + stars: | 2023-04-03 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

These days, most Americans are stressed about money. And yet, when it comes to budgeting, saving and managing debt, many get some simple fundamentals wrong. Not only can carrying a balance lower your credit score, but sky-high annual percentage rates also make credit cards one of the most expensive ways to borrow money. More often, Americans are unsure, especially when pervasive money myths get in the way of good credit habits. While there is an important role for schools to play, a financial education should begin at home.

☆ Don't be fooled by these 9 common money myths, finance gurus say
▼ + stars: | 2023-04-01 | by ( Greg Iacurci | ) www.cnbc.com time to read: +8 min

CNBC polled eight personal finance experts to help answer one question: What are the biggest money myths out there for consumers? Dealers therefore can have an incentive to charge a higher rate because they will also make more money, she said. Myth #3: Financial 'advice' always has your best interests at heartThere's a misconception that every financial advisor is a "fiduciary," said George Kinder, who pioneered the "life planning" branch of financial advice. "Although households and regulators remain concerned about the cost of financial advice, it's the absence of holistic financial advice that turns out to be so expensive," he said. There are many different fee models for financial advice, and the cost doesn't have to be significant: Many advisors have hourly or project rates, for example.

Bad credit could mean paying more than three times as much on a $5,000 loan as someone with good credit. If the 3.5 million Americans taking out loans had bad credit, that difference in interest rate would cost them a cumulative $20 billion. The cost of borrowing money with bad credit adds up fastWe don't know exactly how many borrowers have good and bad credit, so there's no way to be sure how much more Americans with bad credit are paying on the whole. In other words, bad credit could mean Americans would cumulatively pay as much as $20 billion extra this year. A recent Credit Sesame survey of 5,000 adults in the United States also found Black and Hispanic Americans had lower average credit scores than white Americans.

☆ How to Pick a Financial Advisor
▼ + stars: | 2023-03-17 | by ( ) www.wsj.com time to read: +12 min

Read on to get started:Types of financial advisorsMany financial professionals, including financial planners, securities brokers, investment managers, and insurance brokers call themselves financial advisors so it’s important to know exactly what services an advisor provides before hiring one. Financial advisor designationsThere are myriad designations for financial advisors but only a handful that indicate the expertise most consumers need. CPAs, or Certified Public Accountants, can be certified with a Personal Financial Specialist credential, which combines their tax expertise with personal financial planning knowledge. How to find a financial advisorFinding a financial advisor is not so different from finding any other specialized service you’re in the market for. The right financial advisor can help navigate your financial life, from budgeting everyday spending to fulfilling long-term financial goals over a lifetime including the purchase of a home and a comfortable retirement.

☆ Want Better Customer Service? Join the (Membership) Club
▼ + stars: | 2023-03-01 | by ( Katie Deighton | ) www.wsj.com time to read: +7 min

Others such as online travel agent Booking.com and Sony Group Corp.’s PlayStation provide priority customer service for high-ranking members of their loyalty programs. Other companies that offer premium customer support also say the perk is often a small part of more comprehensive packages, and that its introduction doesn’t mean their standard customer service is lacking. “We’ve always provided fantastic customer service, but what we added was another layer on top of that,” said Genaro Perez, senior vice president of marketing for P.F. Other companies offer priority customer service to customers who have ascended to the upper tiers of loyalty programs that do not cost extra to join. The strategy may help profits, but could create the perception that “free” customer service is low-quality and amplify inequality by deprioritizing lower-income customers, she said.

If the 3.5 million Americans taking out loans had bad credit, that difference in interest rate would cost them a cumulative $93 billion. See Insider's picks for the best personal loans »Insider's Featured Personal Loan Companies LightStream Personal LoanMarcus Personal LoanSoFi Personal Loan Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. The cost of borrowing money with bad credit adds up fastWe don't know exactly how many borrowers have good and bad credit, so there's no way to be sure how much more Americans with bad credit are paying on the whole. In other words, bad credit could mean Americans would cumulatively pay as much as $93 billion extra this year. A recent Credit Sesame survey of 5,000 adults in the United States also found Black and Hispanic Americans had lower average credit scores than white Americans.

☆ 'It's a work in progress.' How Covid has changed the life insurance marketplace
▼ + stars: | 2022-12-01 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +6 min

But for the life insurance industry, experts say the long-term effects aren't yet known. Faced with a staggering loss of life, insurance firms saw payouts soar during the pandemic. The demand for life insurance policies also jumped as consumers rushed to protect loved ones. Individual U.S life insurance application activity increased by 3.4% in 2021, following a record-breaking year-over-year growth of 3.9% in 2020, according to the MIB Life Index's 2021 annual report. However, the life insurance industry is still wrestling with mortality changes and how these shifts may affect the underwriting process.

☆ As BlockFi files for bankruptcy, what to know about crypto investor protections
▼ + stars: | 2022-11-28 | by ( Greg Iacurci | ) www.cnbc.com time to read: +7 min

The ongoing FTX fallout — and bankruptcies earlier this year for lenders Celsius Network and Voyager Digital — is teaching crypto investors a hard lesson about their protections relative to more traditional asset classes. Howey Co., established the so-called Howey test to determine what constitutes a security, or "investment contract." More on how the Howey test works can be found below. Here's why this is important for crypto: It's unclear in many cases if digital assets are an "investment contract" under the 76-year-old Howey test. The Securities Investor Protection Corporation insures investors for up to $500,000 in the event a brokerage firm liquidates and their holdings are tied up in the insolvent firm.

☆ Why protections for crypto investors are linked to orange groves
▼ + stars: | 2022-11-21 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

watch nowHow orange groves impact crypto protectionsThe reason why largely hinges on a 1946 Supreme Court case about investors in Florida orange groves. Howey Co. — established the so-called Howey test to determine what constitutes a security, or "investment contract." (More on how the Howey test works can be found below.) Here's why this is important for crypto: It's unclear in many cases if digital assets are an "investment contract" under the 76-year-old Howey test. Why the 'security' distinction mattersThe Howey test has four parts to determine if something like bitcoin is an "investment contract."

Companies Hormel Foods Corp FollowNov 15 (Reuters) - Hormel Foods' labeling of a meat product line as "natural" despite using the same hogs and production methods as its other brands shows the U.S. meat labeling system needs reforms, said consumer advocates and documents released on Tuesday from a lawsuit the company is close to settling. “This is an endemic problem, not a Hormel problem.”Hormel said the company complies with USDA rules and guidelines for labeling and that it stands behind its Natural Choice products. "The term ‘natural’ is practically unregulated and can/will be used widely – as a result there is little to no difference between ‘natural’ meat and ‘conventional’ meat," read the slides, which were part of the document release. The presentation also advised companies to appeal to consumers' desire for wholesome products by packaging their meat in cardboard. Hormel and ALDF asked the court to dismiss the case last Thursday after agreeing to settlement terms.

☆ You may experience a 'mysterious disappearance’ on Halloween — and insurance probably won't pay for it
▼ + stars: | 2022-10-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Renters and homeowners insurance claims related to a "mysterious disappearance" increased by 5% on Halloween and 3% on Mischief Night, which is the night before Halloween, according to Travelers Insurance claims data from 2011 to 2021. Some have clauses that explicitly deny payment in cases of such a "mysterious disappearance." Why 'named perils' matter in insurance coverageHowever, you're not necessarily in the clear just because your policy doesn't explicitly omit a "mysterious disappearance." When it comes to personal property, insurance generally only covers renters and homeowners for a "named peril," Griffin said. So-called all-risk policies or open perils policies, by contrast, cover any event the policy doesn't specifically exclude.

☆ How to Find a Financial Advisor
▼ + stars: | 2022-10-21 | by ( ) www.wsj.com time to read: +12 min

Read on to get started:Types of financial advisorsMany financial professionals, including financial planners, securities brokers, investment managers, and insurance brokers call themselves financial advisors so it’s important to know exactly what services an advisor provides before hiring one. Financial advisor designationsThere are myriad designations for financial advisors but only a handful that indicate the expertise most consumers need. Advisor fees and minimumsHow a financial advisor gets paid can be as important as how much you pay them because you want an advisor whose paramount consideration is your best interest, not their own, and whether or not that is the case is largely determined by how you pay them. How to find a financial advisorFinding a financial advisor is not so different from finding any other specialized service you’re in the market for. The right financial advisor can help navigate your financial life, from budgeting everyday spending to fulfilling long-term financial goals over a lifetime including the purchase of a home and a comfortable retirement.

They also note that adjustable rate mortgages and other atypical home loans make up a much smaller percentage of total mortgages than what was seen during the 2008 crash. But consumer advocates and others close to the real estate industry warn that homebuyers could still find themselves in a precarious financial position when their mortgage interest rates reset and they find their monthly payments going up. “We are watching anxiously as we see more interest in these alternative mortgage products that often seem to involve some sort of initial teaser interest rate and the interest rate is going to go up,” said Sarah Mancini, a staff attorney with the National Consumer Law Center. “Now, they are feeling like, 'Oh, God, higher interest rates are coming, we want to jump on it, we don’t want to miss it again,'" said Holeman. In marketing material, mortgage brokers often suggest that buyers can refinance after the two-year period, suggesting rates will go down in the near future.

☆ Home cheat home: How real-estate agents are ripping off homebuyers
▼ + stars: | 2022-09-28 | by ( Mattathias Schwartz | ) www.businessinsider.com time to read: +20 min

The other day, Linda, the real-estate agent whom my wife and I used to buy our home, called me out of the blue. Real-estate agents, like doctors, are the friendly, knowledgeable face of a bewildering, price-gouging system. If Americans paid the same rate as the British, they would save more than $72 billion a year in real-estate commissions. The potential for big money, in turn, has led more and more Americans to become real-estate agents. Every dollar that is paid out in a real-estate transaction — to sellers, agents, inspectors, insurers, and the IRS — comes from you, the buyer.

First, it's quite likely your friends don't know what the heck they are talking about, whether it comes to recommending specific investments or brokers. AdvertisementHowever, the best financial advisors or broker doesn't have to be Bernie Madoff to tell you your friend's advice sucks. Take a look at a study entitled The Market for Financial Advice: An Audit Study, released earlier this year by the National Bureau of Economic Research. Related storiesYou just know that some of these testers were recommending their new guy to their friends too. The best financial advice is boring.

Persons: Warren Buffet, Bernie Madoff, Sendhil Mullainathan, Sohn, Jon Stein, Jon Organizations: Survey, Consumer Finances, Madoff, National Bureau of Economic Research, Harvard University, AARP, Consumer Federation of America, Investment Advisors, Sohn Investment, Securities Representative, Harvard University ( Economics, Columbia Business School

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