Weekend Reads for Finance Pros: Math, myRa, and Magic

I was in Garden Grove, California, this week for CFA Institute's Wealth Management 2014 conference. There were many great presentations, but one loomed large for me: the session on elder care planning. At the outset, we polled delegates on the percentage of their clients that have a plan in place for long-term care costs. Fifty-five percent said "less than 25%." That's a very worrisome — although not altogether surprising — result when you consider that at least 70 percent of people over 65 will need long-term care services and the fact that most people don't realize Medicaid does not cover long-term care expenses.

Bernard A. Krooks, a founding partner of law firm Littman Krooks LLP, made an excellent point about the disconnect between what clients may need in the future, and the financial planning they actually put into place:

Keep an eye on this blog in the coming weeks and months for content related to the conference — posts, webcasts, and podcasts. In the meantime, here's a (slighty abbreviated) list of interesting articles, in case you missed them:

Retirement/myRA

• "We Are from the Government and We Are Here to Offer You a No Risk, Guaranteed Return Investment Product" (Zerohedge)

Finance and Investing

• "The Forever Elusive α" (Statistical Ideas)
• "Performance Lessons from David Blaine" (TraderFeed)
• "Does Trend-Chasing Explain Financial Markets?" (Noahpinion)
• "Evaluating the Dearth of Female Hedge Fund Managers" (Dealbook)
• Why is finance so complex? This post is from 2011, but is still a relevant and interesting read. (interfluidity)
• "Beware Going Tactical, Allocation Guru Warns" (Financial Advisor)

Mathematics

• "Math Explains Likely Long Shots, Miracles and Winning the Lottery" (Scientific American)
• "Mathematics: Why the Brain Sees Maths as Beauty" (BBC)
• After 400 Years, Mathematicians Find a New Class of Shapes (ars technica)
• A webcomic about the frequency of random events. (xkcd)
• "Am I Going to Die This Year? A Mathematical Puzzle" (NPR)

Business

• Two key strategy questions that many people get wrong: What business am I in, and who are my competitors? "The First Strategic Question Every Business Must Ask" (HBR Blog)
• "Big Breakthroughs Come in Your Late 30s" (The Atlantic)

And Now For Something Completely Different

Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.

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