I’ve been away for a while.
Big changes are on the horizon on the professional front but more on that in a separate post.

Photo by Mikes Photos on Pexels.com

How Much Do Interest Rates Matter to the Stock Market?
(A Wealth of Common Sense)

Ben Carlson finds that how the inflation rate plays out matters a lot more than where interest rates go. I guess this makes sense since interest rates respond to the inflationary environment more than the inflationary environment responding to the inflationary environment.

Adobe shares plunge on deal to acquire design platform Figma for $20 billion (CNBC)

50x annual recurring revenue (ARR). I saw a former student on instagram commenting on the business economics of the deal and I had to send him a message to look at Sun Microsystems circa 2000. For those too young to know what I’m referring to, you can read all about it here.

Tales from the Dark Side (The Big Picture)

Over the years, I’ve seen plenty of former students get into the financial planning industry. While most of them get into the industry with the best of intentions (the standard line about helping clients in their moment of greatest financial need due to unfortunate events occurring), I can’t help but wonder if any of them have taken a step back to actually assess the value they bring to their clients.

I say this because from their private social media accounts, many of those that join the financial planning industry end up having goals that seem contrary to what they purport to do for their clients. The most common goal I see is for them to end up qualifying for the Million Dollar Round Table (MDRT) which only happens if they achieve a certain amount of commissions from sales.

Hitting a certain benchmark for commissions can only happen in a few ways. One, the financial planner must sell products with low commissions to a lot of clients, or two, the financial planner must sell products that provide higher commissions to fewer clients.

Logic would state that for the company and financial planner, it is easier to take the second route than the first. Logic would also state that the insurance company would be willing to pay higher commissions for certain products only if the product is more profitable for the company. Unfortunately, the odds are that what is profitable for the company is not as good for the client.

Also, from the same social media accounts, the culture of most financial planning teams seems to be one where the average age of the team is fairly young and the culture is all about having a good time by dressing up, going on trips, dining at fine restaurants, buying fancy cars, and chasing fads.

I understand that the image above helps to sell the impression that a person is financially successful but image and reality can be very different. If your financial planner friend fits the description in the previous paragraph, he/she is definitely a good salesperson. Whether that same person is going to help you plan your finances successfully remains to be seen.