WSJ video highlights plain English for financial advisors
The Wall Street Journal continues to highlight the case for plain English. An article, “A Tip for Financial Advisers: When Possible, Use English,” expands on the ideas introduced in the video. If you like this article-video combo, you may also enjoy former SEC Chairman Arthur Levitt’s opinion essay, which I discussed in “The Levitt test […]
Projected: A word geek’s nitpick
Sloppy or mistaken word usage pops out at me. For example, “A projected 5,000 people hold shares in this mutual fund.” The sentence misuses “projected.” Projected refers to an estimate for the future. Here’s a correct use of the word. “A projected 5,000 people will hold shares in this mutual fund one year from now.” […]
Reader question: How can I ask clients to follow me to a new firm?
When financial planners, wealth managers, and portfolio managers change firms, they want their clients to follow them. But clients don’t fall in line as easily as ducklings following their mother. After an advisor asked me for advice about composing a letter asking clients to switch firms, I created the list below. Your letter should be […]
Advertising makes you stupid–even if you’re smart or rich
Highly educated and wealthy investors make dumb mistakes. This is my oversimplified take on one section of “Mutual Funds: Advertising, Behavioral Models, and Investor Choice,” an article by John Haslem, which appeared in the Spring 2011 issue of The Journal of Index Investing. “There is a strong positive relation between advertising and investor dollar allocations,” […]
Reader challenge: Fix the metaphor overload
Metaphors are “Poetry for Everyday Life,” as New York Times op-ed columnist David Brooks said in his April 12 column. However, it’s best to stick to one metaphor per sentence. Brooks highlighted the following sentence as “clunky” because it uses four metaphors. Britain’s recovery from the worst recession in decades is gaining traction, but confused […]