199398569 – Empire of the Fund: The Way We Save Now by William A. Birdthistle
199398569 – Empire of the Fund is an examination of the way we save now. With the rise of the 401(k) and passing of the pension, the US has embarked upon the richest and riskiest experiment in our financial past. Over the next 20 years, nearly 80 million baby boomers will retire at a pace of 10,000 per day. The hypothesis of our experiment is that millions of normal, untrained, busy citizens can effectively manage trillions of dollars in a financial system dominated by wealthy, skilled, and powerful financial institutions, many of which have a record of treating individual investors poorly.
The key tools in our 401(k) plans and individual retirement accounts are mutual funds, which have ballooned to carry over $16 trillion. However these funds pose dangers to our savings in three ways: through structural susceptibilities that give money managers the incentive to focus on marketing over investing; through the very human trials of managing our savings decades into the future; and through the peril of financial professionals behaving badly, to our economic harm.
Though Americans typically get the importance of low fees in fund investing, few are aware of the astonishing array of ways that some financial advisers have illegally diverted money out of mutual funds, from supporting hedge funds to trade after the legal deadline, to inflating the assets on which they are paid a percentage, paying kickbacks for brokers to sell their funds. This book will forewarn Americans by demonstrating the structural flaws, perverse incentives, and litany of scandals that have bedeviled mutual funds.
Author: William A. Birdthistle
Pub Date: 6/29/2016
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