News From the Control Tower - 1/4/2023
News from the Control Tower: Our weekly curated list of news stories affecting you and your finances.
This week we see a recurring theme that is summed up well by The New York Times: “The gap in the market is access to affordable and trustworthy advice.”
The WSJ highlights savers leaving funds in low-yielding accounts from major banks (people losing money by putting too much trust in major banks), investors frustrated by roboadvisors (people not understanding the true cost of roboadvisors), crypto shills preying on Black investors (many of whom experience systemic racism in the financial system), and Latinas making gains in the retirement system – all because they received personal advice from trusted individuals and social programs.
Finally, there’s an interesting essay from a person who bought an ancient Roman sculpture at a Texas Goodwill for $35.
This week’s reads include:
1. The $42 Billion Question: Why Aren’t Americans Ditching Big Banks?
Big banks still pay next to nothing on savings, but their customers aren’t yet moving much money to higher-yielding alternatives
2. May I Speak to a Human, Please?
Younger investors who are navigating market volatility and trying to save for retirement are finding that roboadvisers lack the personal touch.
“The gap in the market is not access to investing opportunities — that’s what online brokerages are doing,” said Elizabeth Pennington, a senior associate at the financial planning firm Fearless Finance. “The gap in the market is access to affordable and trustworthy advice.”
3. Younger Latinas Are Making Gains Toward Retirement Savings.
As one of the longest-living yet lowest-earning groups in America, Hispanic women have challenges ensuring that their later years are secure. But things are changing.
4. Opinion: Crypto was billed as a vehicle to wealth. For many Black investors, it’s been anything but.
5. So the $35 sculpture you got at an Austin Goodwill was looted from a museum during WWII. Now what?