Exit could cost pimco 400 billion. What about you . Should you follow the herd of Institutional Investors dumping we have the director of managing research from morningstar. We also have the manager jkk Capital Advisors and jack hough of barrons dotcom. My concern if youre something in the fund what kind of trouble will you get into . How will this rebound to individual investors, jack . I think new managers of the fund are quite good. Russ kinnels made one morningstar manager of the year. If theyre forced to sell at some point, that forced selling will hurt the bond market and everyone particularly in that fund. I looked how much cash gerri how, how . Hang on a second. I want to know how it will hurt the individual investors . I think, gerri, the problem is a fund manager wants to know they have a constant flow of cash coming into the fund. When theyre forced to liquidate and investor, you want to buy or sell on your terms, your timing, your decisions not when unexpected circumstances force you to do it. That is the last thing you want to do be forced to dump a lot of bonds on the market that knows you need to dump those bonds. The bond market may be liquid but it is not stupid. You want to be with a manager waiting for bargains to pick up stuff at cheaper price. Gerri russ, to you. What kind of difference does this make . Does this put pimco behind the eight ball. Too theyre certainly under the gun. Negative a years worth of controversy and redemptions are accelerating. The bond is very liquid. The fund has a lot of liquid positions. I dont necessarily think this means gloom and doom but theyre under the gun. Gerri we have a problem pimco managing its fund, doesnt put them in the drivers seat but as individual Investor Holding shares in pimcos fund, what happens to me . Well, you know, really the funds are still priced on the underlying securities. So it is not going to have a big impact initially, unless we have massive, massive redemptions, and 10 billion out of 210 billion is not that much actually. Unless we have that much, then it will not have that big of an impact. Longer term, obviously we have new regime, new younger managers taking over to guide the fund. But it doesnt mean you need to make a decision tomorrow. Gerri well get to that. You have time to evaluate it. The fund has been experiencing 16 months ofout flows out of the fund. It is pimcos job to do two things. Physicians creed, which is do no harm. In other words prepare that portfolio for these redemptions. That is the first thing they need to do, make certain theyre prepared for it. The second thing, work on investor confidence. Explain to the investors why they should gerri they were out doing that today. I have to tell you, frank, they were all over the place talking to Morgan Stanley who has been dissing them in the media. Were here to stay. Well be around. You about the point is, when you spend your decade building around the name bill gross, that is why you have your money with us, now that you have to change the narrative, how do you do isnt. Gerri imless concerned about pimcos management problems but more concerned as individual investor, jack otter, what i find and what will happen to me. Biggest problem with Bond Investors weve had 30 years after bond bull market. Everyone said it is endings, it is ending. Im not sure it has ended yet but it will not go forever. Gerri doesnt this put pressure on people to find the right manager and things could change any moment . You know me coming on here advocatings index funds. I think there is a place for active management in bond funds but i cant tell you who is the right guy. Bill gross, dan luck. Spread your bets. Have some of those guys managing a portion of your retirement portfolio. Put a little bit in the index and cross your fingers. I want to get back to russ for a he can. Russ, you have told everybody, morningstar is telling everyone youre removing ratings. Will reconsider ratings on the pimco fund. What will you be considering . Seems to me you will probably consider the things i should know as an individual investor. Thats right. Were looking at the quality of the new managers. They have got some very good managers. Understanding how is that team going to Work Together . Will they hit the ground running on day one or will it take some time. We want to understand flows, liquidity situation. Seems like a very liquid fund. We want to understand that. And we all want to understand how everything is going to fit together at the new pimco, how theyre going to work things out. Also understand what is going to take some time for the dust to settle before well really see where theyre going. So there is some things we can figure out now. There are some things later. Really there is a lot of moving pieces. How long will it take you to get the new ratings out . Were hard at work on that. So i hope it is not too long but we want to make sure weve got all of the important facts in front of us before we make that rating. Gerri right. And then from then on well wait until the dust settles and see three months, six months from now, how do things look. Gerri i think people want answers right now. I was looking at janus for example. Look at the fees that will be charged on this bill gross fund, frank . Out of control. There is a sales charge on the ashares, 4. 57 . C shares will have backend load of 1 . All of the fees higher than pimcos. Is it worth buying into that fund. A home run for janus, lets face it. Gerri what about the individual investor . That is who i care about . Individual investor, it is not bill gross or pimco. We have many options. That is the beauty of being individual investor. A lot of money managers, bond managers reported inflows already with more money coming in. There is a field that out there. Not one or the other. Gerri who are big winners . Big winners are all the fixed income managers across wall street. Those are the big winners in this whole thing. As far as individual investors go, they need to ask them because it was bill gross and is that good for those high fees . That is question that you have to gerri i think janus will be charging high fees. I would say till will be interesting to watch he will swing for the fences. He wants to go out good. He wants to do really well. He can move the needle with a 10 billion fund. Gerri he will be agile, fleet of foot. Easy for him to show some kind of gains. If you want to pay for it. That is the big problem. That is why they brought him on to bring in money. Some money will follow bill gross, regardless of the fee. That is why he is there. Gerri russ, tell me. You said good things. Morningstar had good things to say about the new management of the pimco fund. Are you still satisfied with those folks . One of them was a 2012 bond fund manager of the year the do you have a lot of confidence they can really run this thing and go great guns . Well, we have a lot of confidence that these are very good managers. But, they are in a new situation. Talk about going into a hot seat . Taking over the Biggest Bond Fund in the world at a moment when Everyone Wants to redeem at such a shocking moment it is a challenge for them. Theyre very good and worth understanding a fund like this is couple of managers. There are traders, analysts, a lot of specialists contributing. That is one thing gross wont have at janus. He is starting from scratch and building a new team, and so, i think it is worth understanding that youve got hundreds of investment professionals at pimco contributing versus bill gross starting off on his own. Other folks have pointed out, there are many other bond shops you can choose from as well. Gerri it is a fascinating quandary for individual investors. Well leave you out of this question, russ, because i know youre concerned with getting new ratings out but frank and jack, i want to ask you this question, buy, sell, or hold, pimco total return bond fund. I think investors should reconsider positions in light of bill gross leaving pimco. Gerri you say reconsider but what exactly do i do . Do you have me watch their performance over time . Six months benchmarked against others in the industry. Pimco is not going away. This is not liquidating hedge fund where they liquidate the portfolio. Pimco is not going away. Performance has been mediocre anyway. Middle of the pack. Allstar days of bill gross are long gone. You have performance in the middle of the pack. Investors need to say do i want to be involved with all these headlines with mediocre performance and i can go anywhere else get same thing throwing a dart at bond fund listed. Gerri i like that. Jack . I say hold. I know its a wimp out. I like new Management Team very much. On the other hand redemptions scare me. It is so big, even with the redemptions, it is such a huge fund it is tough to move the needle. If they take a 1 , that is huge. If they outperform 20 basis points, how much does that help you the individual investor . I have to tell you very, very little. Gerri hard to make big fund. Magellan. Gerri people dont have to move as everybody said on the panel with lightning quickness because it is not a stock. Its a mutual fund. Thanks to all here, russ, frank and jack, pardon me for forgetting your name for a split second. Thanks for coming on. Really good conversation. Great to be here, gerri. Gerri we always cover shenanigans on wall street, right . We like to let you know when bad guys get caught. Two former wells fargo employees charged with Insider Trading. According to sec a Research Analyst at the firm wrote market moving upgrades and downgrade of stocks tipped off one of the traders before his reports came public. They come one week after wells fargo paid a 5 million fine for Insider Trading by another one of its stockbrokers. Still a lot more to come at this hour. Including your voice. Your voice is important to us. During the show facebook me or tweet me gerriwillisfbn. Send me an email by going to our website gerriwillis. Com. At the bottom of the hour i will read your tweets and emails. Massive blow to the head. Look at this, left michigans quarterback dazed and confused. Why, why did he continue to play the rest of the game . Well have a conversation about that. Join us after the break. You pay your Auto Insurance premium every month on the dot. Youre like the poster child for paying on time. And then one day you tap the bumper of a station wagon. No big deal. Until your Insurance Company jacks up your rates. You freak out. What good is having insurance if you get punished for using it . Hey insurance companies, news flash. Nobodys perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Liberty mutual insurance. Gerri university of michigan head coach brady hoak under fire for keeping his quarterback in the game after a violent tackle here. Even espn commentators said it looks like a concussive hit. Aaron cochran. He can barely stand up right now. They have got to get him out of the ball game into totally with you. He has got to come out. Wow. Coach hoke in a press conference defended his decision, that doctors cleared morris to keep playing. A nfl agent and associates, gene lee. We formally dont cover sports, every once in a while you have to dip n weve been talking a lot about concussions. Little kids play football too, all levels people play this game, getting hurt. How is it the young man was not taken out of the fame because he took a incredible hit. You chef been taken out of the game, first and foremost. The issue with a lot of these concussions the symptoms are latent sometimes. Hard to see player exhibit. Gerri not here. It was visible here. That was the difference. He should have been taken out of the game. Gerri looked like he was wandering. Had his hand on his head. He really looked like he was in pain and even confused. You could see it and commentators made just those nets. The bigger key here, that brady hoke allowed him to reenter the game after he had taken him out. That is the reason for the public outcry. Gerri what responsibility does he have. The nfl the response would have been different, right . The nfl postconcussion protocols are very defined. If this happened in the nfl, the university of michigan and brady hoak would be fine and suspension. Gerri fine and suspension. This is what hoke had to say. The player was evaluated by our experienced athletic trainers and Team Physicians and were confident proper medical decisions were made. The university of michigan has a distinguished group of certified athletic trainers and Team Physicians who are responsible for determining whether or not a player physically able to play. Our coaches have no influence or authority to make determinations if or when an injured player returns to competition. It sound convincing. Is it convincing to a trained ear like yours. No. As a player advocate, your clients longterm wealth and wellbeing is long term concern beyond dollars and cents. Should be primary concern for the head coach as well. Gerri these are people on college team. Theyre not getting paid directly. Maybe some people would make the argument, money isnt involved. Is that true. That is true. He had said that drew morris wanted to stay in the game. He wanted to remain in the game as competitor. Gerri right. Decision should not be up to the player. It should be up to the head coach. I was at uconnbuffalo game. I saw a player for uconn defense, visably had his bell rung. Teams medical personnel examined him. Determined he should knot go back into the game. Someone took his helmet to prevent him from going back into the game. Gerri they forced him to stay on the sideline. Someone should have taken drew morriss helmet. Gerri this team was losing in a big way when all of this happened. It is not like you were, in the throes of almost beating, no. They were way behind. Like 37 or something. It was 307 with 11 mens in the game. There was no reason for brady hoke to risk long term injury for this player when the game was out of reach. Gerri what would you tell this player if he were your client . Make the right decision. Make sure his best interests are covered. His safety is first and foremost beyond any wins he can achieve for the program. Gerri sound like a good way to go about it. Eugene, good to see you. Thank you. Gerri we want to know what you think. Here is our question tonight. Are coaches putting college kids at unnecessary risks on the field . Log on to gerriwillis. Com. Vote on righthand side of the screen. I will share the results at the end of tonights show. Later in the show, why have markets been so volatile late ily . We help you find somebody to help you navigate that. We have advice finding a good financial advisevisor. Stay with us. Mr. Daniels. Mr. Daniels. Look at this. Whats this . Clicks are off the charts. Yeah. Yes, sir more shipping more shipping [ beeping ] [ beeping ] hello. You can go ahead and have a nice flight. Re. Music plays music plays traveling can feel like one big mystery. Youre never quite sure what is coming your way. But when youve got an entire company who knows that the fewest cancellations and the most ontime flights are nothing if we cant get your things there, too. Its no wonder more People Choose delta than any other airline. Gerri hiring an advisor to manage your Retirement Savings could be like a financial strip search. You share all of your Financial Secrets and you pray that the advisor is up to the task. Fortunately, if you find a good visor the trouble can be worth the effort. How do you find that perfect fit . Ed butowsky, wealth manager, financial visor and managing partner at chatwood investments. Ed, great to see you. A lot of people want to hire a financial visor. They dont know how to get started. What are steps number one to get the perfect person . I mean the perfect person, first of all they must ask one question right off the bat, if youre sitting down with a financial visor or planner and they dont ask you, how much money do you need to make . If a lot of times people will show up and start telling you need this mutual fund and this stock and that bond and they never asked you at any point in time what do you need to make and how much downside can you handle in a 12month period . If they dont ask you that question, walk away. Gerri ed, another complicating factor, there are all kind of different sorts of people you can hire. Hire an oldfashioned broker. Thats right. Gerri hire a certified financial planner. It is alphabet soup of people with different kind of training. What make sense for the average investor . One thing i would not do, i will get a lot of emails, i would stay away from people who sell Insurance Products because theyre out there selling a product. There is not a lot of Financial Planning behind them. I like financial planners. I speak at a lot of Financial Planning conferences. I learn a lot from those people. I think theyre excellent. Try to focus on a lot of big investment firms. They have a lot of Great Software that helps you understand what you have, what you think youre growing to have down the road in terms of continuing, continuing to invest your money and i like them. Gerri big first, dont the big firms, specialize in telling their guys how to sell product . Isnt isnt that what theyre all about . They eventually get there, gerri, that absolutely true. At the same time they have good software. Some big firms invested a lot of money. Its a good place to start. You will have different product salespeople in there. Be careful of that. But they have got good software. If youre looking i would look there along with financial planners. Gerri im hoping i dont use the software. Im hoping they use the software to give me good recommendations to invest in. Yeah. Gerri one of the questions i have, how much am i willing to play . I know how to pay for mutual fund, advisor for his or her services. What should i have to pay . A great point and great question, people who do what i do for a living, our income on assets have dropped 70 in the last 10 years and it is going lower. So i would not let anybody charge more than 50 basis points, a half of 1 on the money they manage and dont ever let them charge a money market or on bonds or on concentrated stock positions that y