September 1, 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...)

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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Radio: Third Party Payer Systems

Money Pills

David John Marotta was interviewed on radio 1070 WINA’s Schilling Show discussing the economics of third party payer systems.

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Mailbag: What Is The One Fund Should I Invest In?

Rainbow Stars

Here’s how to earn a slow million.

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How Do I Find An Estate Planning Attorney In My Area?

ACTEC

What is a better starting place than advertisements and phone directories?

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Why Are Insurance Companies Reluctant To Cover Preventive Care?

Pink and Blue Piggy Banks

Now there is absolutely no charge for a costly set of test and procedures on the all-you-can-spend preventive care buffet.

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How To List A Charity As Your Beneficiary

Charity

There is a tax benefit to leaving some assets to your favorite charity rather than leaving it to your heirs.

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Mailbox: How Can I Leave My Estate To A Charity?

Gift Boxes

Leaving a legacy can be a great benefit for the charity receiving the gift.

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Do We Need Price Controls to Stop Exorbitant Hospital Fees?

Injured piggy bank with crutches

After the birth of my (David’s) first child, my wife and I noticed we were being billed for a very expensive bedpan and box of tissues that we had never used.

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Third-Party-Payer Markets

Economics by Colander, Seventh Edition

Anytime a third-party-payer system exists market forces will not hold down costs as much as they would otherwise.

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Radio: The Potential for Government Thought Control

Marotta on the Radio

How much do the political parties agree that the government should be nudging people in as many ways as possible? What is the social cost of such nudging? Does it do more harm than good?

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Why a Monkey Throwing Darts Could Boost Your Returns

Mandrills are the world's largest monkey.

Not aiming for where the money is should boost returns.

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The Efficient Frontier Of Investing

Blended Efficient Frontier

Many investors don’t appreciate asset allocation or understand intuitively how a diversified portfolio can exceed the sum of its parts.

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Why Are Canadian Drugs Cheaper?

Money Pills

Why shouldn’t we just institute price controls in America?

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Misleading Statistics About Pharmaceutical Companies

We have charts and graphs to back us up.

It is difficult to reason with people who lie and mislead in their statistics because they believe that they have the moral high ground.

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Radio: Beware of Government Regulation Intended to Quell Competition

Marotta on the Radio

Listen to David Marotta discuss the dangers of government regulation, especially when invited by an industry to suppress competition in the name of “safety.”

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SEC Q&A: What should I do if the financial professional claims that he or she is “certified”?

Golden Champaign Glass

We believe that NAPFA advisors are a well sought minority of financial advisors.

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What Is The Most Important Attribute When Hiring An Investment Manager?

Mercat

Do you want to trust your advisor is acting in your best interests or do you want them to have the legal obligation and be free of commission-based conflicts of interest?

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Chipotle’s Wisdom

Chipotle line

These quotes are provocative for what they say about us as Americans.

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Is AmazonSmile Good For Charities?

AmazonSmile: You shop. Amazon gives.

There is no reason why charities should not be thankful.

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SEC Q&A: How do I find out whether an investment adviser ever had problems with a government regulator or has a disciplinary history?

Golden Glasses

You can get copies of Form ADV by accessing the Investment Adviser Public Disclosure (IAPD) website.

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Freedom Investing Since 2000

Freedom Investing 2000-2016-06

Recently we did an analysis of the returns of the MSCI Country Specific Indexes

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The Wealth Of Nations Is Their Freedom

Berry Hard Work

“When institutions protect the liberty of individuals, greater prosperity results for all.” – Adam Smith

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Freedom Investing Beats EAFE Index by 3.92% Annualized Over Past Decade

Freedom Investing 2014-06

Over the past decade the economically free countries have an annualized return of 11.34%. The S&P 500′s annualized return was 7.78%.

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SEC Q&A: How do investment advisers get paid?

Three Glasses

How your advisor is compensated matters. Make sure you can follow the money and know how they are getting paid.

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How Can I Tell Who Is Associated With A Broker-Dealer?

Pigs

If your advisor is on one of these lists you should be aware of how they are paid.

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Are We Lab Rats?

Lab Rat

If you are not paying for the product, you are the product.

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Facebook’s And Your Negative Feelings

Thumbs Down

In truth, the best way to mollify negative feelings might be to give up your Facebook account entirely.

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Radio: Financial Planning in Your 40s and Early 50s

Marotta Smiling On Radio

Here is a list of seven things which are important to ensure during these years

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Should I Tender My Allergan Shares To Valeant Pharmaceuticals?

Allergan

Perhaps they should make this into a mini-series.

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SEC Q&A: What questions should I ask when choosing an investment adviser or financial planner?

Questions to Ask Your Financial Advisor

Here are our answers and comments to the SEC’s eight suggested questions.

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Our Government Versus The People

Hammer Lock

Government has never been known for customer service. But today it is known primarily for being against the very people it is supposed to serve.

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Don’t Do Something. Just Stand There!

Sisters Forever

You learn a lot by the discipline of reading old news.

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The Economics Of Healthcare

Injured piggy bank with crutches

Michael Kirsch, a practicing physician and newspaper columnist, laments that there are questions he can never answer satisfactorily for his patients. His questions are central to the public policy debate increasingly being decided by voters and politicians rather than physicians and economists. Here are our answers to his questions and other articles on the economics [...]

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Mailbag: How Do I Open A Vanguard Trust Account?

Vanguard Personal Investors

I am the trustee for my mother’s living trust and I am trying to help her open an investment account at Vanguard. How do I go about opening a Trust account at Vanguard? – Trustee in Cville Most regular brokerage accounts can be opened online. Trust accounts need to use the paper form and provide [...]

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Time to Give Annuities a Second Look?

Two Giraffes

No. I thought we’d decided not to give them a first look.

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FINRA Supports Regulation to Quell Competition

Wolves in Sheep's Clothing

Beware of government regulation, especially when a portion of the industry thinks it’ll be good for business.

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Study on Investment Advisers and Broker-Dealers

Wolf

These are the wolves of Wall Street pretending to be the helpful sheep of investment advisors.

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SEC Q&A: What is the difference between an investment adviser and a financial planner?

Glasses of Gold Growth

This is why we call ourselves comprehensive wealth managers.

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How To Designate Charitable Gifts In Your Schwab Donor Advised Account

Schwab Charitable

Schwab Charitable Donor Advised Funds make the gifting process easier.

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Fight the NSA with Your Choice of Search Engine and Browser

Browser Choices

We are all embarrassingly honest with search engines.

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The Politics of Social Security

End of the line

Even half of what they collect in Social Security could provide a better private benefit.

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Does Every Client Get Put Into One Of A Few Investment Allocations?

Buckets

The short answer is, “No.”

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Capability Is Tyranny

Bullying

Those who stand by and do nothing are complicit in aiding the loss of freedoms for others.

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What Benchmark Should I Measure My Return Against?

Bad Benchmarking

Don’t let the noise of random returns ruin a brilliant investment strategy.

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Advisers Worry About Potential Costs Of Third-Party Exams

Hungry Fox

“Estimates range from $5,000 to $20,000; sharp opposition to Finra getting involved.”

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Fourteen Ways to Avoid Paying Capital Gains

Like water for money

The capital gains tax traps wealth in an investment vehicle requiring special techniques to free the capital without penalty.

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Roth IRA Conversions and Roth Segregation Strategies

Roth Segregation Accounts

Roth accounts have several advantages over traditional retirement accounts.

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Capital Gains Tax Gets More Complicated

Holding breath

Now you may pay one of at least four different capital gains rates. The strategies to deal with capital gains differ for each level.

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