Here's some really basic money advice for millennials
Advice for millennials (Investment News)
David Mirabito, a financial professional with the MetLife Premier Client Group, spoke to Investment News about how millennials can develop a plan for financial independence. Miabito says to find something you enjoy doing that can also support your financially independent lifestyle. In addition, Miabito thinks millennials should create a budget that prevents them from living an excessive lifestyle, but still allows them to do what they enjoy. Establishing an emergency fund of three to six months income (more if you are unemployed) is important, because you never know when you're going to need it. Finally, Mirabito told Investment News, it's important for millennials to pay down debt as quickly as possible and to make sure they are putting away money for retirement.
Volkswagen has another emissions scandal (Business Insider)
The German automaker announced that an internal investigation had discovered "irregularities in CO2 levels" in as many as 800,000 vehicles. It is unclear whether the irregularities are related to the recently discovered emissions scandal related to nitrogen-oxide testing. "Under the ongoing review of all processes and workflows in connection with diesel engines it was established that the CO2 levels and thus the fuel consumption figures for some models were set too low during the CO2 certification process," Volkswagen said in a statement. "The majority of the vehicles concerned have diesel engines."
Pimco's Total Return Fund saw another month of outflows (Reuters)
Pimco's Total Return Bond Fund saw investors pull $1.6 billion in October, making for a 30th consecutive month of outflows. According to Reuters, investors withdrew their money despite the fund outperforming 91% of its peers in th month, earning a return of 0.76%. "We took advantage of market pricing that reflected extreme worry about spillovers from China and global deflation in September," Scott Mather, portfolio manager for Total Return, noted.
The Department of Labor might eliminate advisor commissions (Financial Planning)
A new report from Morningstar concluded the Department of Labor's proposed fiduciary rule will "reshape the financial sector," according to Financial Planning. The report says the fiduciary rule will cause a major shift from commission-based investing to fee-based investing, accelerate the use of robo advisors and favor passive investment products compared to active ones. In addition, Morningstar warns the implementation of the rule will cost financial firms a total of $2.4 billion, well above the $1.1 billion cost the government is anticipating, Financial Planning says.
Advisors are on the move (Think Advisor)
A trio of advisors are bringing about $700 million AUM to UBS. Think Advisor says, Joe Hawk is leaving Morgan Stanley and bringing $450 million AUM with him. In addition, leaves SunTrust Private Wealth Management with $130 million AUM and Xi Qiao brings $150 million into the fold from Bank of America-Merrill Lynch. All together, the trio generates $3.3 million in annual fees and commissions.