Advisor, U. S. Banks, Bloomberg discussed on Bloomberg Radio New York Show
Now. Global News Update. Here's the latest news. It's been years since the coronavirus first emerged in Wuhan, China. Government officials announced the lockdown of the city in central China in the morning of January, 23rd 2020 to try to halt the spread of the disease that the virus spread to the entire province, affecting some 56 million people when the lockdown was lifted in April. City leaders said they had officially recorded over 50,000 infections with fewer than 3900 deaths. A person in northern California who received a coded 19 vaccine is dead hours after receiving the dose, according to the Placer County Sheriff's Office. The person tested positive in late December and receive the vaccine Thursday. Health officials say the risk of a severe reaction is exceedingly rare. And by the end of the day, we'll know who made in Super Bowl 55 in the battle of the bays. Green Bay Place Tampa Bay for the NFC Championship at Lambeau at 305 eastern in the can. The city chief, says the Buffalo Bills at Arrowhead in Kansas City, starting at 6 40 Eastern. The winners play the Super Bowl on February 7. That's the latest I'm Lisa Taylor. You're listening to Bloomberg opinion on Bloomberg Radio. I'm junior. Also finding a financial advisor can be a daunting task. Most Internet searches on the subject produced nothing but spam and bad advice. So what's the best way to find someone you can trust? Bloomberg opinion columnist. Teresa Ghilarducci, a professor of economics at the new school for Social Research, and the co author of Rescuing Retirement is here to give us some advice. So you say, If you're looking for a financial advisor, don't ask your family and friends now that has to be the way that most people get financial advisors by asking around. Yeah, It's not a good idea. Your family and friends are probably getting advice that they're getting advice at all, you know, from random newspapers or worse. Round conflicting advisers, You know you're in there are about 630,000 people who can legally give financial advice. They are brokers and dealers and really some variety of the sales person. You know they're selling financial assets, and they're allowed to give financial advice and they're covered legally, if they don't lie to you. Um, there are about 1 12,048 who are really professional and I've I've looked at, you know, maybe 100 advice columns on the Internet about how they start financial planning, and they always say Ask your friends and family. We don't really point out that you know, we used to go to the barber for dental advice and nobody was seriously think about Taken advice from the face cream lady of Macy's about a suspicious small or believe so stormy from personal trainer So I don't really know why people will let a sales person tell them what to do with their retirement account. Or ask your You know your friends or family? What bills for from there like it doesn't make any sense that we really have to modernize the way we manage our money. So then how do you find someone? Because if you look online, or you look at lists, I mean, you're faced with hundreds of names. Yeah, just like you would. If you asked someone who can give me advice about my skin of my teeth, so it's really important to know. You need a registered and a trained professional In my column. I talked about one website that will give you names of trained professionals. They're called registered Investment Advisors. They are registered fiduciary. And in my column, I talk about the kinds of questions. You should ask anybody who says they want to give you financial advice, and there are only really two questions that That really mean anything. And they don't give you the right answer. Which is? Yes. And yes, You should just politely dismiss yourself from the conversation or talk about the weather. And the question you asked anybody who wants to give you investment advice is Are you a fiduciary? And can you put that in writing? If they say Yes, then you want That inviting and then you want to ask them if they're income depends upon whether or not you take their advice. A true professional like a doctor. Would be indifferent to whether or not you get that gall bladder surgery or not, You know, you're not going to go to a doctor who owns the gall bladder surgery, you know machines, you're going to go to an independent advisor. And if that person says Well, yes, I get a commission from the products used the left. Then you really need to change the You know the conversation to the weather. So you say there are three things three things that you should do with the very least. 25 minutes to make a budget 30 minutes to list your wealth and debts and then take a walk with your partner yourself. So it doesn't tell us about that? Yeah. Okay, So say you find a judiciary. You know somebody who you're going to pay $500 or $1000 to, you know to go see? Well, you you have to really prepare for that for that meeting. You have to walk in to that meeting. With a piece of paper that says how much you really spend for months and it's not like how much you really eat for days because everybody underestimated by 10%. You really have to go in there with how much you really do. Send You know, per month and that takes a while to collapse and be honest about do it for the last month and then add 10%, you know, for all the little lies you tell yourself Um, do you have to walk in with a budget and you have to walk in with an idea about what you want out of that financial advisor. You want a short term money so that you can fix that car on that roof or or send that kids with that over five by the college? Or a part of yourself, Or does your partner really wanted? Say long term to be absolutely secure, you know, in retirement on those kinds of Else desires and wishes. Then maybe there really kind of buried in your son Causes need to come out consciously, So the first thing is to have a budget. The second thing is to know what you want, and the third thing is You know what questions You want to ask that advisor? But even if you ask them 3000 times, you know what? I'm not there for this, Harry and whether or not they get it connected. You need to do it again. Would you sit down? Thanks so much. Theresa. That's Bloomberg opinion columnist Teresa Ghilarducci, a professor of economics, the new school for Social Research and the co author of Rescuing Retirement. Fixed income trading was largely responsible for carrying the biggest U. S. Banks. Through the worst of the covert 19 pandemic. However, that bubble seems to have burst with the latest round of big bank earnings. You to tell us. What happened is Brian Shikata, a debt columnist for Bloomberg opinion. So, um, with US banks reporting tell us how the bond traders did. You know, the bond traders were one of the few points that the banks that actually didn't do very well. Four of the six largest U. S. Banks reported basically bond trading revenue that missed expectations. You have Goldman Sachs City. And then I'm also BancAmerica actually gave people were technically feet by just a sliver, but they had outstanding results overall across the board, but it was really the fixed income currencies and commodities trading. That that really weighed them down a little bit. It was a negative this quarter. Was that sort of expected with interest rates where they are. It wasn't necessarily surprising that you could be a paring down of bond trading revenue from, say, the 2nd and 3rd quarter when there was more interest rate volatility when Corporate bond issuers. We're coming to market hand over fish. But it was still kind of surprising to see missing expectations because usually the bank's condition analysts to beat estimates across the board. Whether it That's been taking over all that income on and training as well. So they beat on equities. But the bond trading actually came in stop, so it'll be entering the watch going forward whether that can pick back up again. You write that fixed income trading was largely responsible for carrying the biggest U. S. Banks through the worst of the covert 19 pandemic. Explain that Yeah, well, especially for a lot of the consumer facing banks as well. The JP Morgan. Thank you. America Citigroup. It was their consumer divisions that were really struggling. They discredit side Ah lot of money for potentially bad loans for her losses there. And so effectively trading revenue was able to make up the voice there and still produced pretty incredible profits throughout 2020 for a lot of the big bank, But now going forward 2021. It looks like the trading revenues going to pare back. So one of the things that you have to watch out for is just how much the bank scaled back those loan loss provision because that is a way to effectively in some ways artificially boost profit..