December 20, 2014

About David John Marotta

David John Marotta+ is the Founder and President of Marotta Wealth Management, Inc. He played for the State Department chess team at age 11, graduated from Stanford, taught Computer and Information Science, and still loves math and strategy games. Favorite number: e (2.7182818...)

Fiduciary Fight Part 2: Additional Congressional Regulatory Oversight Can’t Be Trusted

Fiduciary Fight

Congress cannot protect you from the financial sharks who contribute to their campaigns, but they may protect the sharks.

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Contact Lens Regulations Cost Consumers Billions

Contact Lens Regulations Cost Consumers Billions

It is illegal to sell contacts in the United States without requiring a prescription. A Federal Trade Commission regulation provides penalties of up to $11,000 per violation.

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Inversion Is The Latest Corporate Tax-Cutting Strategy

Inversion Is The Latest Corporate Tax-Cutting Strategy

The United States is the only country that imposes a tax on all income the company makes whether it is earned within or outside the country.

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Interviews And Articles With Ken Elzinga

Ken Elzinga

“Markets have made possible the prospect of the bulk of an economy‚Äôs population not being poor and oppressed.”

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Fiduciary Fight Part 1: The Fight Over The Fiduciary Label

Fiduciary Fight

The fight is on! Everyone wants to be known as a fiduciary, but not everyone deserves the title.

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Interview with Ken Elzinga by Marotta On Money

Ken Elzinga

Ken Elzinga writes the popular Henry Spearman mystery novels under the pen name of Marshal Jevons. We caught up with Professor Elzinga for the following interview.

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How Not to Promote College Innovation

How Not To Promote College Innovation

These noble-sounding goals intuitively appear useful, but the federal government has only two ways to encourage change and neither of them helps in this case.

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The Mystery Of The Invisible Hand

The Mystery of the Invisible Hand

Read an excerpt from Ken Elzinga’s latest Henry Spearman mystery novel.

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November 2014 Returns for Our 6 Asset Classes

November 2014 Returns -6 Asset Classes

Here are the returns for our six Asset Classes from November 2014.

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August – October 2014 Returns for Our 6 Asset Classes

6 Asset Classes - 8-10-14

Here are the returns for our six Asset Classes from August 2014 – October 2014.

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How To Buy A College Degree

How to Buy a College Degree

Unfortunately, Obama’s good intentions are thwarted by the economic principle formulated by banker Charles Goodhart.

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What Investors Really Want

What Investors Want

“In reflecting on our experiences as advisers and investors, we’ve come up with what we believe are the key and often unspoken wants and needs of our investors.”

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The Economics of a Thanksgiving Turkey

The Economics of a Thanksgiving Turkey

The average factory-farmed frozen turkey from a grocery story is sold for as little as $0.67 per pound. Economics can offer five explanations.

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Five Principles Of Spending

Principles of Spending

How to judge if your money was well spent.

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Ten Red Flags Of Emails Trying To Steal Your Identity

Fraud pretending to be from Paypal

Eternal vigilance is the price of liberty.

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We Need a Partial Shutdown of Government

Partial Shutdown Needed

Unless McConnell is willing to risk a government shutdown, he will ultimately have to acquiesce to Obama’s wishes.

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Bogle’s Best Advice: Don’t Peek

Don't Peek

When it comes to finances, just shut your eyes and keep them closed.

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Do New Healthcare Plans Cost More?

Cost of ACA-Compliant Healthcare

Last year plans were being cancelled. This year, citizens are receiving notifications of rate hikes in the double digits. Is this really happening?

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The Influence of American Values on Garry Kasparov

Gary Kasparov

As a libertarian and former chess prodigy, I enjoyed very much an address by Gary Kasparov at the Cato Institute entitled, “The Influence of American Values.”

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Planning Clients Often Don’t Get What They Pay For

Sad Stop

While I agree with the study, I don’t know that I agree with the prescribed solutions suggested.

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The Drive of the Lottery

The Drive of the Lottery

The lottery is based on the most powerful way to motivate people and change their behavior: a variable reward in response to a specific behavior.

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How To Divide An Inherited Account Evenly

Money Divided

There is no accounting for how many heirs an account might need to be divided among in an estate plan. Here are the best practices for how to divide the estate.

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If You Wouldn’t Buy It, Why Keep It?

Lego Shop

The stock market is one of the few places that when things go on sale we are less likely to want to buy.

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The Mindset of the Lottery

The Mindset of the Lottery

The classic conversational pastime of answering the question, “What would you do if you won the lottery?” could help you or it could hurt.

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Radio: Are U.S. Markets Overvalued?

Marotta Smiling On Radio

This radio interview covers the basics of what investing is, and how to think about investing, especially in U.S. Markets with a constant stream of information available.

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Should You Be Building Bond Ladders In This Lower Rate Environment?

Ladder from above

There was an interesting article by Joseph Lisanti in Financial Planning Magazine entitled, “Should You Be Building Bond Ladders?” which read in part: As with many strategies, laddering works best for clients with sufficient assets to benefit fully from it. “It is a tried-and-true strategy,” says Morris Armstrong of Armstrong Financial Strategies, an RIA in [...]

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Which public policies help to decrease disparities in the distribution of wealth?

Be Stupid

What if only enough redistribution were applied so that the top 1% (or whatever top segment) has just 15% of all wealth instead of 40% or whatever it is now?

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The Luck of the Lottery

The Virginia Lottery

Government-run lotteries have a sordid and monopolistic past. Should we enforce a separation of sin and state?

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Advisors Focus On Panic Prevention In Volatile Market

Panic Button

Our brains are not wired well for handling the fluctuations in the stock market. Could a financial advisor help?

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Achieving Financial Peace Of Mind

Peaceful Sleeping

One goes to bed, while the other sits down to manage the family finances.

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Five Lessons from the Whiskey Rebellion

Protest

The Whiskey Rebellion established the sovereignty of “we the people” to tax and oppress any selected group.

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Active vs. Passive: Where Money’s Flowing

Fish flow

Here is the number one criteria you should use in your fund screen.

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How To Diversify Highly Appreciated Stock

Dog and Turtle

Exchange funds, also know as swap funds, can provide investors with one highly appreciated security a way to trade it for an equivalently valued but more diversified portfolio.

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Driving Emotions From Your Investment Process: A 12-Step Program

Brain Scan

Don’t let short term volatility ruin a brilliant long term investment strategy.

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Appreciating Donor Advised Funds

Wrapped Gifts

There are five ways that both you and the government could make charitable giving more significant.

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A Complete Guide To Using A Donor Advised Account For Your Charitable Giving

Gift

A donor advised fund makes giving easier.

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What Asset Allocation Should I Have For My Schwab Donor Advised Fund?

Pie Chart

Keeping your donor advised fund invested could result in more benefit to the charities you support.

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How Can We Make Medical Insurance Affordable?

Doctors at work

We must return, as much as possible, to a fee-for-service approach to health care and restore the traditional doctor-patient relationship.

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AAII 2014

David John Marotta presenting

The articles associated with David John Marotta’s presentation at the DC Metro chapter of the American Association of Individual Investors.

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Style Box Annualized Returns For The Past Three Years

Morningstar 3-year stylebox returns 2014-08

Morningstar data for the 3-year annualized returns based on style boxes shows us three interesting lessons.

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Why Do Physicians Permit, If Not Encourage, Futile Medical Care?

Mark Marotta

We can only afford to allow others the freedom to strive against death when we are not trying collectively to subsidize it.

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Radio: More on the Economics of Healthcare

Money Pills

Individuals should be free to weight the healthcare costs and benefits, risks and savings, and make the decision that best fits their circumstances.

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Mailbag: Screenings useful in cancer fight

2014-08-27 Letter

Again, we were asking if such screening saved insurance companies money, and the answer is, “No.”

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Real Returns Favor Holding Stocks

Real returns favor holding stocks

There are several important lessons to learn from this graph.

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Skin in the Game of Health Care

Piggy Bank on Money

“Shouldn’t patients and their families have some skin in the game as a brake on the profligate spending of other people’s money for health care?”

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Most Americans Want Financial Advice From Humans

Wise Old Owl

An article title caught my eye recently: “Survey: Most Americans want financial advice from humans.” The teaser linked to an article by Lydia Saad for Gallup which found that although there is great buzz about the rise of “Robo-Advisors” a majority of Americans prefer to work with a dedicated advisor, advisory firm, or at least [...]

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Cryptic Medical Bills And Health Insurance

Eyechart

Next time you receive an unintelligible medical bill, remember how hard it is for your doctor to get paid.

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Failed Experiment at the SEC

Chaos Lab

Those who don’t understand or experience regulatory capture wrongly believe in a team of angels at these federal agencies tirelessly working for the common good.

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Mailbag: What Cost Basis Method Do I Want For Vanguard Mutual Funds?

Mutual Funds Scrabble

In our example, your gain/loss could vary from -$1,000 to +$3,500 depending on the method used.

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U.S. Health Care Costs versus Health Outcomes

Teddy Bear Hospital

Asians in New Jersey have the best life expectancy of any racial or ethnic group.

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