On page 6 of the Forbes June 7, 2010 issue under the “Readers Say” column, I’d like to point everyone’s attention to the second heading, “Alphabet Soup: CFP Versus CFA.” I’ll reproduce: “I enjoyed your article on fee-based brokerage accounts (reference). While certified financial planners (CFP) can be a fine resource for general financial planning, the chartered financial analyst (CFA) designation is the worldwide gold standard for investment management. Many CFPs have their own “branded” products to sell, which replicates the problems some investors have with certain brokerage firms, CFA investment managers, on the other hand, largely use only exchange traded assets. Thus the risk of conflicts of interest are even further reduced when working with a CFA. -Matthew Eads, CFA Portfolio Manager, Eads & Heald Investment Counsel (Atlanta, Ga.)” Aside from the multiple violations for referencing the CFA Charter, what the heck is this guy talking about. A CFA investment manager largely uses ETFs? I can just see the value of the charter diminishing by the second as the public reads this comment.
Its funny, the difficulty of obtaining the charter and the aggregate intelligence of the charter pool are inversely correlated. I guess thats what happens with scale.
ValueAddict Wrote: ------------------------------------------------------- > On page 6 of the Forbes June 7, 2010 issue under > the “Readers Say” column, I’d like to point > everyone’s attention to the second heading, > “Alphabet Soup: CFP Versus CFA.” I’ll > reproduce: > > “I enjoyed your article on fee-based brokerage > accounts (reference). While certified financial > planners (CFP) can be a fine resource for general > financial planning, the chartered financial > analyst (CFA) designation is the worldwide gold > standard for investment management. Many CFPs > have their own “branded” products to sell, which > replicates the problems some investors have with > certain brokerage firms, CFA investment managers, > on the other hand, largely use only exchange > traded assets. Thus the risk of conflicts of > interest are even further reduced when working > with a CFA. > > -Matthew Eads, CFA > Portfolio Manager, Eads & Heald Investment Counsel > (Atlanta, Ga.)” > > Aside from the multiple violations for referencing > the CFA Charter, what the heck is this guy talking > about. A CFA investment manager largely uses > ETFs? I can just see the value of the charter > diminishing by the second as the public reads this > comment. He is not referencing ETFs, but exchange traded assets (stocks and bonds). This would be in contrast to “branded” investments like a Hartford annuity.
> > “I enjoyed your article on fee-based brokerage > accounts (reference). While certified financial > planners (CFP) can be a fine resource for general > financial planning, the chartered financial > analyst (CFA) designation is the worldwide gold > standard for investment management. Many CFPs > have their own “branded” products to sell, which > replicates the problems some investors have with > certain brokerage firms, CFA investment managers, > on the other hand, largely use only exchange > traded assets. Thus the risk of conflicts of > interest are even further reduced when working > with a CFA. > > -Matthew Eads, CFA > Portfolio Manager, Eads & Heald Investment Counsel > (Atlanta, Ga.)” > Fail. I disagree that the conflict of interest is reduced because of the 3 letters after your name. And the CFA/CFP designation doesn’t (from what I can see in the wealth-mgmt side of the business) make you more or less likely to use “branded products”. The biggest driver of that tends to be the compensation scheme of the advisor. In my opinion, the only financial planner I would use would be a fee-only [not fee-based] CFP accredited by NAPFA, National Association of Fee only Planners. I don’t care if you’re a CFP with a CFA and a JD/MBA from HBS - if you’re incentivized to sell your clients XYZ fund, you’re going to use XYZ fund more than you probably need to. Please don’t take the above as a “financial planners are crap” message. I don’t think that at all; I just feel that getting the compensation/incentives right is crucial for any transaction - especially one regarding money management and advice.
Thats pretty funny, I wonder if he is going to get a letter from CFAI for the violations regarding referencing the Charter. “When working with a CFA”, Seriously?
You never know how the letter was edited. He may have written it in compliance, but let’s admit it, using it as a noun is a lot easier and readable for the magazine editor.
No worries, I’ve already called 911. This douche is gonna burn for this.
His bio says he went to Georgia Tech - Douchiness confirmed.
supersadface Wrote: ------------------------------------------------------- > > > > “I enjoyed your article on fee-based brokerage > > accounts (reference). While certified > financial > > planners (CFP) can be a fine resource for > general > > financial planning, the chartered financial > > analyst (CFA) designation is the worldwide gold > > standard for investment management. Many CFPs > > have their own “branded” products to sell, > which > > replicates the problems some investors have > with > > certain brokerage firms, CFA investment > managers, > > on the other hand, largely use only exchange > > traded assets. Thus the risk of conflicts of > > interest are even further reduced when working > > with a CFA. > > > > -Matthew Eads, CFA > > Portfolio Manager, Eads & Heald Investment > Counsel > > (Atlanta, Ga.)” > > > > > Fail. I disagree that the conflict of interest is > reduced because of the 3 letters after your name. > And the CFA/CFP designation doesn’t (from what I > can see in the wealth-mgmt side of the business) > make you more or less likely to use “branded > products”. The biggest driver of that tends to be > the compensation scheme of the advisor. > > In my opinion, the only financial planner I would > use would be a fee-only CFP accredited by NAPFA, > National Association of Fee only Planners. I > don’t care if you’re a CFP with a CFA and a JD/MBA > from HBS - if you’re incentivized to sell your > clients XYZ fund, you’re going to use XYZ fund > more than you probably need to. > > Please don’t take the above as a “financial > planners are crap” message. I don’t think that at > all; I just feel that getting the > compensation/incentives right is crucial for any > transaction - especially one regarding money > management and advice. I agree. I am a CFP certificant also and a fee-“branded” products at all.
always an adjective, never a noun
JustPass Wrote: ------------------------------------------------------- > His bio says he went to Georgia Tech - Douchiness > confirmed. Poor guy, probably hasn’t gotten laid in decades.
I wrote the “original” opinion piece. 1) The text that appeared in the final Forbes edition was vastly different than what I submitted to them. They insisted on editing it heavily. I eventually complained and told them to pull my piece altogether since it had been so heavily edited against my wishes. They refused stating that they had already committed the text and needed to fill the space. 2) In my original piece which I sent in reply to their original article, I specifically derided them for mis-use of the CFA label. I told them that the CFA logo must be used per its legal copyright regulations. 3) I appreciate “mwvt9’s” correct analysis above that “exchange traded assets” refers to stocks and bonds.
Matt, Glad you were able to jump in and let us know what was up. As I am sure you saw, other people correctly deduced that your original work was indeed ‘heavily edited’ and that it completely skewed our perception of your grasp on ethics. As far as getting laid, well, youre certainly getting on the regular more than I am. Nice to know ya’ll still got the ‘fire’ after 12 years. My sex life is relegated to Thursday Friday and Saturday (and Sunday on weekends like this). I was going to post my Saturday night story in the back office because it was pretty awesome. So it’s safe to say by Wednesday night I am starting to develop small patches of hair growth on my palms. Are you still in Atlanta, Matt? I am from Atlanta (currently living in Miami).
Matt, you lost us at “mature”. But its good to see someone with actual credentials on the forum with all us goofing off to feel better about how pathetic most of our lives have most likely become over the last few months. It sucks that a magazine as well known as Forbes wouldnt allow your revisions because we are all hoping the CFA designation holds a greater degree of respect from those that are most likely the general Forbes audience. Per the Standards I am going to disassociate myself from any further Forbes related activity until they get their S together. Cheers.
PS Matt, you have to admit. Being from GT getting laid is the exception, not the norm.
colleville Wrote: ------------------------------------------------------- > I wrote the “original” opinion piece. I’ll > address the mature and courteous comments above, > and maybe have a little fun at the end of my reply > below - if you can dish it, you have to be able to > take it. Some of you should really get your facts > straight and/or do more homework before you mouth > off to a well-respected and successful member of > the CFA community: > … > Matt Eads, CFA Charterholder Matt- Nice of you to jump in, good to hear your explanation. I’m curious though - you didn’t address my post. You may have viewed it as a little puerile [it does start with the word ‘fail’], but I don’t think my argument is without merit. Your original piece may have explained it better, but whatever made it to Forbes comes across as oversimplified to me. As I mentioned earlier, I think that in any transaction involving money management or financial advice, it’s important to get the incentives right. Having the CFA charter is - as you point out - the gold standard in investment management. It has nothing to do with reducing the conflict of interest between adviser and client. Not using branded products means you’re not affiliated with or tied to a specific firm or firms as far as the solutions you offer your clients. Again, that improves choice for you and the client, but it doesn’t reduce an advisers conflict of interest, right? If you’re not against it, why not upload your original piece here or somewhere online and discuss it? It’d be nice to see what you *meant* to say as opposed to whatever Forbes decided would fit best in a 3x2inch box.
This thread took an unexpected, but entertaining turn. Suprised it was published so differently, but I suppose they need to do something when it is a readers comment. I’ve had various articles published (not Forbes) & I always had the last say. At least you have the correspondence traffic should the CFA police turn up on your doorstep. Finally, nice dishing back the dirt there. Way to go!
Matt, don’t take us too seriously. Remember everyone here is either just a pimple-faced back office monkey with big dreams, or an IT programmer who thinks the CFA comes with a $150k+ job and a hot girlfriend. Just go easy on us and we might let you join our online dungeons & dragons game okay? meep
^ How hard is the jump from BOM to IT? Does CFA L1 help you get your foot in the door for a 3-year-to-HF-PM track? How do I add up all the numbers in one column in Excel? Thx.
If anyone is interested, here is how the dude looks like. Make your own judgements. http://www.eadsheald.com/overview/biographies_mse.htm