This is the latest sign severe Winter Weather did hurt many companies. In the case of abercrombie fitch, it managed to post a narrower than forecast loss. That pushed shares six percent higher. The ceo is working to revive the teens stores. Today is may 29. Or, 529. That is the designation for the most Popular College savings plan. At the end of last year the College Saving plan never said they were nearly 204 billion in 529 plans. We decided to have debate for and against these plans. The chief executive and cofounder of advisor investments says 529s are not the only way to go when it comes to saving for college. Michael conrad, the 529 Program Director at jpmorgan, i want to think we know which side he is on. From jpmorgans perspective, 529 plans are not the only kind of investment that you should be making for college reparation. It is not the only investment. Families have a lot of options. To your point, given those 200 billion in these plans, it has become the premier way to save. Considering the tax advantages. And the control features. It is a tremendous way to save for college. How do you describe the 529 . You hear that. What do you want to know about the details . 529s in general have lousy investment options. The expenses can be extremely high if you go the advisor rube. Route. To the point of jpmorgan, the expenses on the funds in their side of the plan are four times the expenses for the doityourself index option through the vanguard side of then your plan. There is no disclosure about performance. You have to look really deep to find performance. Jpmorgan onto the plant less than three years ago. If you go to the 529 Site Community oneyear returns. If you go deeper in, if you go to jpmorgan site and look up these funds, you discover the returns are not very good. Most of them dont meet benchmarks. The third thing is the names on these plans are very confusing. The vanguard has an option called moderate growth. Jpmorgan has an option called moderate growth. 15 of that is in bonds. You dont do well inside 529s unless you use them as an Estate Planning till. As an Estate Planning till the are excellent. They can put 140,000 in right away. The tax is deferred. That is fantastic. Otherwise the investment options, the fact that most people can put enough money in these things to make them pay off anyway, it is not great. You are better off getting a very aggressive equity funds, put your money in, let it grow. You will do much better. If you pick a good fund, you will do a heck of a lot better. What you think that needs to change . I think my guest is making some generalizations. There are reason these have grown exponentially. There are no two plans are alike. Jpmorgan, being a newcomer to this space, has been advantageous. We have been able to look at the arco plays, listen to our clients. If you look at our program you will find a diversified solution. Just like any other mutual fund, no two are alike. We offer a plan that is going to give you diversification domestically and globally across stocks and bonds. And a tactical overlay as well. As markets evolve, and they do constantly, and in real time, we have the ability to manage. The strategy is not set it and forget it. What we have done is given a team the ability to be flexible and nimble. As we see headwinds come our way, we can pull back on the reins. Dan mentioned labeling these folios across the industry. There are some that i be called conservative. If you open up the hood, which i would encourage anyone to do, you might find the performed low is levered to pour fixed income. If you have a child, if your child is eight years old or 10 years old, or further along and youre in this conservative portfolio, once rate start to move you may have unintended consequences. Take a look at what is under the hood. Managed to evolve as the markets do. It sounds great. There is no track record that prooves it is going to do well. If you look under the hood, in the documents for the plan, and three basis point in performance that you can garner goes to building a better pool of money for tuition costs. The fact is they are taking four times as many basis points out just in expenses alone before you get into the investment. That is on their cheapest of their 529 options. After that they say you have to look at the long time performance. There is no data there. You can talk about being tactical. That is market time. I havent found one that can do it successfully. There is no evidence in these plans that they are going to come unless you put a lot of money in right away, that they are going to actually get you to college. D have response . The team that manages the portfolios, they manage our target Smart Retirement funds. Those same people are incorporated into the 529 plan strategy. These are a component. I could buy the lowest cost car there is. Im concerned about the performance of the vehicle. Im concerned about the handling. Bumps in the road. Im concerned about the comfort and smoothness of the right. There are tax advantages. You will find our plan is far different than the typical plainvanilla 529. Obviously we are not going to come together on this. The amount of money that goes into these plans, when it comes out, and it is used for educational purposes, this comes at with any tax . You dont pay tax. As long as you use it for education. The cost of college is going up. Much faster than inflation. Longterm College Costs have risen six percent per annum. They have ratcheted back a tiny bit. Six percent in an inflation world of two percent, College Costs are skyrocketing. Number one, you would have to put a ton of money away whether it is one of these plans, or in a very Aggressive Growth fund. I can give you the ones that i like. Vanguard Dividend Growth funds. Would you say do that, pay the tax, and these are not tax inefficient funds. The tax advantage is something the 529 people push. There is an advantage there. Youre getting crappier performance. If youre going to get lousy performance the tax advantage is moot. I would rather pay more in the taxes. I just want to ask you. You mentioned this idea of different spaces that have different 529s. How do you explain to people that you might live in one state, but you might end up with a 529 plan in another state . Are there advantages to that . There could be. The tax of images are the reason why many people invest in these plans. At the end of the day it is an investment. The investment is from one plan to another. It might make sense for someone if they live in a state where there is not a state tax benefits, look at the investment options. Take a look under the hood. Look at the team that is managing the money. I think about who is managing money for my little threeyearold girl . That is first and foremost. The other thing is, it comes down to planning. 40 of families do not have a plan to pay for college. I want to thank you very much for joining us. Very interesting. Dan wiener, advisor investments. My thanks also to Michael Conrad and jpmorgan asset management. I will take a look at a world war ii artifact used to encode a secret messages. It is expected to fetch 80,000 at auction. Details are ahead. On june 4 and june 5, bonhams is going to auction world war ii memorabilia. I spoke with Cassandra Hatton on what makes this auction so valuable. We have a First Edition on computable numbers. The groundbreaking work that introduced the logical methods that he used to prove a universal machine was possible. He was able to use that paper later on to create a computing machine. What is the estimate . 25,000 to 35,000. You have also got a book called surely youre joking. It was written by Richard Feynman. He was a rock star of physics. He worked on the Manhattan Project and the shuttle commission to the challenger disaster. A cool item that comes with it is a tape recording of Richard Feynman in his own voice. It was an interview done by a journalist writing an article. The interview is over an hour long. Richard feynman tells the story of how he almost died from a severe injury before the shuttle commission. He talks about the shuttle, a lot of fascinating things. It is so rare. There has never been recording of Richard Feynman coming up on the market. It will never happen again. If you want to get something, it is almost impossible. What is this also possible thing go for . We have never had anything like this come to market. We put an estimate of 5,000 to 8,000. It is a nice package. The following day, on the fifth of june, you have another auction. World war ii memorabilia. One of the things that is being auctioned off his an authentic original german enigma encoding and decoding machine. This is the type of machine that alan turing worked on deciphering during the war. These machines were polyalphabetic substitution machines. Someone would write that down. It would take it to a morris cohen person and have the code resent. Exactly. Is this in working condition . I havent tried to send messages with it. I believe it could be still be used actually. Where does this come from . It came from a private collector. Who would want such a thing . Is this it is broad appeal. World war ii collectors, museums, it is a scientific instrument. It is a piece of them are billion. It has a lot of appeal. What is the estimate for this . 50,000 to 80,000. They are quite rare. During the war, the germans were so worried about people breaking their code the first thing they would destroy was the day my machine. It is rare to find one that survived in excellent condition. Tell us about a poster. It is the poster that has big appeal currently. Could you describe keep calm and carry on. That is one of three posters that were set out by the British Government in the months preceding the war. They were motivational posters. The key peoples spirits up. The first were distributed wildly. This poster was never distributed. It was supposed to be used in case of catastrophe or invasion. It never really happened. The posters were destroyed. If you survived. Nobody ever solve them. It wasnt until 2000 that a bookseller in the north of england found one folded up in a box of books. He hung up in the shop. Customers would say i love that poster. Can i get a copy . He sentiment in copies. Then we have seen the explosion of tshirts. What is the estimate . 5,000 to 8,000. Is this something that will be collected by those interested in world war ii memorabilia . How do you determine which auction Something Like that goes in . Because it is a piece of history, it is from the world war ii era. People dont realize the grim background of it. Theyd understand the history of it. We market a wide group of people. Because of the popularity the poster to go to anyone really. My thanks to Cassandra Hatton of bonhams. Coming up, a mattress start up wants to simplify the way you get your sleep. That is next. Mattress shopping means lots of show rooms and inexpensive price tag they can run thousands of dollars for the perfect bed. Phil wants to change this with his mattress start up. It is called casper. They are featured in bloomberg businessweek, on newsstands now. Philip joins me now. Thank you for being here. A bed doesnt seem that complicated to buy one. You can get them in a lot of different stores. What problem were you trying to solve . The problems those stores play when selling to consumers. There is a lot of games in the industry. The consumer is the one that is taken advantage of. By going to consumers and selling beds for our website, we are able to cut out the middleman and avoid the games retailers play. When you first heard of this but did you think . You can buy a temper. He. There are these known brands out there. Do you think there is room for an upstart . Everyone hates shopping for a mattress. It is a make sense to anyone. You have the salesman who say, youve spent 2000 and you dont even know if you liked it. When we heard about this retailer, it sounded cool. It is online. They use all american products. It seemed like a better way. Described the mattress itself. The mattress is outrageously comfortable. We created a bed unlike anything out there. We create a bed that contours but has that traditional feel. The feedback since we have launch has been fantastic. What about the size . Does it come in different sizes and heights . What are the details . We carry it in all six traditional sizes. Twin through king. 850. Is that considered a lot . It is not. If you look at the materials it is comparable to beds that would be 3000 at show rooms. By leveraging the economics of a direct to consumer business and selling through our website, we are able to pass on the value provide savings to consumers. The delivery is cold. It comes in a box to your house. You open up the box and the mattress unfolds right there. So it is entertainment as well. One of the other things to mention is that you get to try the mattress out. You do. To the point earlier, trying a bed and making a Purchase Decision doesnt make sense. The only way to know they mattress is right for you is to play on it, try in your home, to sleep on it. We give people up to 40 nights to try. If you dont like it give us a call back and we will issue a refund. This model of selling only online. Rory parker are backers of you. You have raised 1. 6 million so far. Been leader who was an early investor has been a fantastic partner for us. We are excited about building the business. Thank you. We are energized to get some sleep. Philip krim of casper. Thank you for taking stock. Im pimm fox. Good night. Here that pop . See that popstar. When it comes to pop culture you have to think pepsi. The brand has been in the soda game for more than 100 years. Ats the story we all know. For more, we take you inside pepsico. It is all that and a bag of chips. There is more to pepsico than pepsi. It has 22 brands, each polling in 1 billion in sales per year. It started with brant street
comparemela.com © 2020. All Rights Reserved.