Although the Morgan Stanley’s handling of the social media site’s disastrous stock offering is under scrutiny by just about every business news outlet under the sun, a Wall Street insider tells us the investment banking’s corporate communications warriors are blaming CNBC for engaging in some pre-IPO hyping of their own. CNBC senior vice president and editor in chief Nik Deogun “is under fire,” says the source. “Morgan Stanley is telling him, ‘How dare you criticize us when you guys promoted this IPO worse than anybody.’ ” The source recalls examples of CNBC’s on-air exuberance in the days leading up to the IPO, including treating Facebook CEO Mark Zuckerberg ’s entrance at the kick-off of the company’s investors road show at the Sheraton hotel in midtown as if it were “the President’s State of the Union Address” with multiple cameras and reporters. Then on May 17, the day before the actual IPO, the hosts of CNBC’s “Fast Money” appeared on camera wearing hoodies — a reference to Zuckerberg’s favorite fashion item, which came off like an homage to the baby billionaire. That same day, controversial “Mad Money” host Jim Cramer told his viewers, who tend to be mom-and-pop investors and market-playing college students, “If you can get in on the actual IPO, then I think Facebook is a no-brainer.” He added: “We all know this one’s going to pop like crazy on its first day of trading, so if you can get in on the deal, I think you should try to get your hands on as many shares as possible.”…CNBC spokesman Brian Steel said: “CNBC’s Facebook coverage has been widely acknowledged as fair, balanced and insightful.” [NYDN, related, related]
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You know what they say: You can’t choose your family, but you can choose your financial planner. Or something like that. One of the great things of being in charge of your money is choosing who (if anyone) will help you manage it. The choice isn’t always an easy one. How will you know that your planner is reputable and trustworthy?
These five red flags may be good indications of whether the financial planner sitting across from you is someone you should trust with your money. LearnVest Planning also provides an innovative 7-step program for your money where you work one-on-one with a financial planner. To see if this program is right for you, start with a free financial consultation.
1. She Isn’t Certified
“There are a lot of good planners out there who aren’t Certified Financial Panners™,” says Samantha Vient, CFP®, of LearnVest Planning Services. “However, CFPs® are required to adhere to the CFP® Board’s standards of professional conduct.We believe it’s always a good idea to work with someone who has the CFP® designation, which is issued after completing a CFP® Board-approved personal financial planning curriculum, passing a rigorous exam issued by the Certified Financial Planner Board of Standards, meeting experience requirements and passing an ethics and background check.
2. He Offers to Manage Your Money for “Free”
Financial planners are usually paid in one of two ways: Either through fee-only, which can be a set fee, hourly, retainer or a percentage of the assets they manage for you, or through commission, which means the planner is paid each time he buys or sells an investment.Fee-only payment structures can be more desirable to some clients, as there’s no financial incentive based on assets under management for a planner to buy or sell, whereas working on commission encourages planners to make trades, rather than solely look out for your best interest—called a “fiduciary” duty. (You want to be sure that the planner you choose is a fiduciary.)
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3. She Says She Outperforms the Market
“If a financial planner tells you that she can outperform the market, that’s a major red flag,” Vient explains. “In fact, due to government regulations, it’s illegal to advertise statements that promise a specific return.”Outperforming the market—that is, getting better investment returns than the market average—is extremely difficult to do consistently, and requires taking a lot of risks with your investments. It’s rare to find a financial planner who can consistently outperform the market—and results are never guaranteed. Either way, in the pursuit of these high returns, she’ll be exposing your investments to much higher risk than you may be comfortable with.
Instead, look for a CFP® who, when looking at your portfolio, can advise on proper asset allocation based on your risk tolerance and time horizon, as well as through economic ups and downs.
4. She Doesn’t Ask About Your Financial Goals
“Your planner isn’t just there to crunch the numbers,” Vient advises. “She’s helping you make a plan for your money and your life. You should be looking for someone who has similar values to you.”Ideally, you’ll likely want to work with someone who is in a similar life stage. Are you a parent? A planner with children may be better able to understand your need to save for college. Does your CFP® have a specialty? Some planners have an area of expertise, like insurance, estate planning, divorce or retirement—a fact you might want to consider if that’s a particular need of yours.
When meeting a potential planner, remember that you’re allowed to ask questions about their experience and priorities: “Do you think it’s more important to save for retirement or pay off debt? How do you feel about supporting kids through college? How do you mitigate investment risk as your clients get older?”
The choices you make with your money are intensely personal. The person who helps you make these choices should be able to understand and accept your financial priorities, and help you use your money to meet them.
5. His Management Style Makes You Uncomfortable
Financial planners can manage your money for you or manage your money with you. As different people have different needs when it comes to money management, there is no right way to work with a planner—it’s up to you to decide how hands-on you want him to be.
When you sign on with a financial planner, there will be a written agreement of how the two of you will manage your money. Read this carefully, and ask questions if you’re unsure about anything. Are you signing your accounts over to this planner? Will he check in with you before making a trade, or when rebalancing your accounts? If you’re uncomfortable with anything in the agreement, bring it up immediately.Learn more about LearnVest Planning and our financial planners by visiting learnvest.com. To book your free consultation today, email FA_Support@learnvest.com or complete your request online.
LearnVest Planning Services is a registered investment adviser. The opinions expressed in this article are that of LearnVest Planning Services, a registered investment adviser. The advice provided may not be suitable for your individual situation and you should discuss your situation with a financial professional.
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Jim Cramer told his viewers…“If you can get in on the actual IPO, then I think Facebook is a no-brainer.” He added: “We all know this one’s going to pop like crazy on its first day of trading, so if you can get in on the deal, I think you should try to get your hands on as many shares as possible.”
[youtube o3FVBKic5Ek&feature=results_video&playnext=1&list=PL557BEE304AD80A59 http://www.youtube.com/watch?v=o3FVBKic5Ek&feature=results_video&playnext=1&list=PL557BEE304AD80A59 youtube]
Hey assholes, that's our tagline. Get your own.
-Fox News
FACEBOOK IS FINE!!!!!!!!!!!!!!!!!
Not sure what's worse, that he stole Fox News tagline, or that he said something on CNBC was insightful
I was disappointed with all of the coverage on FB, as CNBC got away from their bread and butter- focusing on Joe Kernan's golf game.
NEW FLASH
CRAMER IS AN IDIOT
Please, MS claims that putting Wapner and Adami in hoodies is "hype?" Bullshit. If they really wanted to hype it up they would have had Drury and Bartiromo in bikinis poking each other.
Hey Zucky, smell my finger!
and by poking you mean?
i know cramer is a complete assclown, but did he actually say that stuff about fb being a "no brainer" and all of us knowing it was "going to pop like crazy"? good lord that guy's a disgrace.
your money is safe at bear stearns!
Fool me once, shame on you
Fool me twice, shame on you again
- MS
"…Bartiromo in bikini…"
I just threw up in my mouth.
AIG Vomit Quant
Cramer is a criminal. Unfortunately, SEC is sleeping at the wheel.
If you made an investment decision based on what "Cramer" screamed, you deserve to lose $.
Two words: Sue Herrera
CNBC is as insitefull as L. Tilton is pleasant to look at.
" insitefull"? seriously?
And "Guest" has the same level of spelling aptitude that Miss Teen South Carolina has at public speaking.
Thanks for that stunning insight.
Are you talking about oral skills?
Yeah, like a spokestool is going to say anything other than how responsible CNBC acted… why bother giving us the quote?
CNBC is pretty much useless… it will make a good partner for Yahoo.
because even cnbc knows "insightful" is a fucking reach and it's funny. any other brain busters?
you're an idiot.
FAIL!
That's Asian for insightful
Is "sleeping at the wheel" the new euphemism for jacking off to tranny porn?
Did anyone else catch CNBC.com website on 5/18? The entire front page was dedicated to facebook.
http://thumbnails.domaintools.com/screenshots-com…
Yeah, you guys definitely botched that one.
-Greece
Suddenly, I want to be long hydrochloric acid and short contact lens solution.