Business

The Death the Mutual Fund: Matthew Murawski Explains Why ETFs May Be a Fit as Part of Your Investment Strategy

Published

2 years ago

November 9, 2022

Since the Great Depression, mutual funds have presented a great opportunity for everyday people to invest in the stock market. Rather than risking their fortune on individual winners and losers, investors selected groups of stocks, making them not only a more diversified investment but also more attainable to people who could not afford the high commission fees, in Murawski’s opinion.

And for decades, mutual fund investing has been touted as a smart, principled financial planning strategy. However, those days may soon be coming to an end. As Goodstein Wealth Management financial planner Matthew Murawski explains, a new generation of investors may usher in a new investment strategy.

“We have a big shift in demographics,” Murawski says. “The Baby Boomer advisor has almost all classic mutual funds. But now, an exchange-traded fund does the same basic principle, but they are typically a lot less expensive and are more transparent and tax efficient.”

One of the most important distinctions between mutual funds and ETFs are the costs associated with each. Although Murawski still uses a few mutual funds, most of his portfolio contains ETFs – for the simple reason that they are generally less expensive and more efficient in his opinion.

“There are zero trading costs for an ETF,” Murawski says. “I can buy the S&P 500 index ETF for about a .03 expense ratio and not pay a commission. I can buy it or sell it whenever I want. But if I buy the same thing in a mutual fund, I’m going to pay a $12, $14, $16 commission every time through our custodian, TD Ameritrade.”

With many Baby Boomer investors and advisors retiring, the guidance is beginning to shift toward a younger generation. And according to Murawski, new advisors and this new investing class are overwhelmingly choosing ETFs.

“I don’t know anybody under 40 buying mutual funds,” Murawski says. “If I said to a client under 40, we’re buying mutual funds in an account, a majority of them will ask, why aren’t we buying ETFs?”

This gradual transition from mutual funds to ETFs is being seen throughout the investment world. ETF.com has projected that in the near future, ETF assets will exceed mutual fund assets. And traditional mutual fund advisors are beginning to take notice. They are trying to adapt to the changes in the market, as well as changes in investment strategy, to maintain relevance with a new generation of investors.

“In my opinion, investors under 30 will never own mutual funds,” Murawski says. “It would be like selling them a Discman. It is almost out of style. So mutual fund companies are being forced to change and come out with ETF versions of the same mutual funds.”

Another way that mutual fund companies are able to adjust is by offering what they call clean shares – dramatically reducing the cost of buying mutual funds. These represent important changes in the way mutual fund companies compete with the emergence of ETFs.

“In my opinion, In the end, those that are not innovating are losing massive amounts of assets,” Murawski says. “The pandemic alone brought millions of new investors into the market. And I do not feel those investors are not going to buy mutual funds.”

In the end, it comes down to cost and performance – and many actively managed mutual funds are not outperforming their benchmarks enough to justify their cost. Instead, investors are choosing ETFs, which can give them nearly the exact same thing at a lower price.

“When you don’t outperform and you charge more, it’s problematic,” Murawski says. “In my opinion, mutual fund companies are either dying or they’re innovating and moving toward a different structure.”

Matthew Murawski is a financial planner with Goodstein Wealth Management. He provides personalized wealth management advice to the firm’s 401(k) clients as well as his own individual clients. Murawski educates investors to help them work towards being positioned for long-term financial growth.

To learn more about Murawski and Goodstein Wealth Management, visit www.goodsteinwm.com or connect on Facebook, Instagram, and Twitter.

Business

The Dark Side of Aimlon CPA P.C.: Uncovering the Truth Behind the Firm’s Practices

Published

3 hours ago

July 25, 2024

Matthew Wiles

Aimlon CPA P.C., a full-service certified public accounting firm based in New York, NY, has long promoted itself as a beacon of excellence in the fields of accounting, audit, tax, advisory, and financial reporting. Serving business owners and companies in the U.S. and Europe, the firm, under the leadership of Mathieu Aimlon, claims to offer personalized and expert guidance. However, a deeper investigation into the firm’s operations reveals a troubling pattern of misconduct, ethical breaches, and systemic failures that severely discredit Aimlon CPA P.C. This article exposes the hidden truths behind the firm’s facade of professionalism and reliability.

Lack of Professionalism and Responsiveness

One of the most pervasive issues at Aimlon CPA P.C. is the firm’s chronic lack of responsiveness. Numerous clients have reported significant delays in communication, often waiting weeks for replies to urgent inquiries. This unprofessional behavior has led to missed deadlines and costly mistakes for clients who depend on timely advice and action.

A frustrated former client shared their experience: “We had a critical financial issue that required immediate attention. Despite multiple attempts to contact Aimlon CPA P.C., we were met with silence. Their lack of responsiveness was not only frustrating but also detrimental to our business.”

Overbilling and Lack of Transparency

Aimlon CPA P.C. has also been accused of overbilling and a lack of transparency in their invoicing practices. Clients have frequently found their bills inflated with unclear or exaggerated charges, leading to disputes and dissatisfaction. This practice has raised serious ethical concerns and damaged the firm’s reputation.

A small business owner recounted their ordeal: “Our invoices from Aimlon CPA P.C. were consistently higher than expected, with vague descriptions for the charges. When we questioned these discrepancies, we received evasive responses and no clear explanations. It felt like we were being taken advantage of.”

Incompetence and Financial Mismanagement

Despite its claims of expertise, Aimlon CPA P.C. has been plagued by instances of incompetence and financial mismanagement. Several clients have accused the firm of providing poor financial advice that resulted in significant losses. These accusations suggest a troubling lack of expertise and diligence in handling client affairs.

One notable case involved a tech startup that followed Aimlon CPA P.C.’s guidance, only to face bankruptcy within a year. The startup’s founder lamented: “We trusted Aimlon CPA P.C. with our financial strategy, but their advice was disastrous. Our business suffered immensely because of their incompetence.”

High Employee Turnover and Toxic Work Environment

Inside Aimlon CPA P.C., the work environment is far from the professional and supportive culture the firm claims to foster. High employee turnover is a persistent issue, driven by poor management practices and a toxic workplace. Former employees have described an atmosphere of fear and exploitation, where unreasonable demands and lack of support are commonplace.

An ex-employee shared their perspective: “The work environment at Aimlon CPA P.C. was unbearable. Management was oppressive, and there was no respect for work-life balance. Talented professionals were constantly leaving because they couldn’t tolerate the conditions.”

Compliance Failures and Regulatory Scrutiny

Aimlon CPA P.C. has faced multiple instances of regulatory scrutiny due to its failure to adhere strictly to industry standards and compliance requirements. These compliance failures have resulted in penalties and fines, further eroding the firm’s credibility and trustworthiness.

An insider revealed: “There were several occasions where Aimlon CPA P.C. neglected regulatory updates and compliance requirements. This negligence led to significant fines for both the firm and its clients. It was alarming how often these issues were ignored.”

Ethical Breaches and Conflicts of Interest

The firm has also been marred by ethical breaches and conflicts of interest. Mathieu Aimlon, in particular, has been implicated in several instances where his advice seemed to benefit his personal interests over those of his clients. These conflicts of interest have severely damaged the trust between the firm and its clients.

In one egregious case, a client was persuaded to invest in a company where Mathieu Aimlon held undisclosed shares. When the investment failed, the client suffered substantial losses, while Aimlon’s involvement remained hidden until an internal investigation brought it to light.

Outdated Technology and Inefficiency

Despite being a modern accounting firm, Aimlon CPA P.C. relies on outdated technology that hampers efficiency and increases the risk of errors. Clients have expressed frustration with the firm’s technological shortcomings, which lead to delays and inaccuracies in financial reporting.

A tech-savvy client commented: “It was surprising to see how outdated Aimlon CPA P.C.’s systems were. Their inefficiency slowed down our processes and made us question their ability to handle complex financial needs effectively.”

Fabrication of Credentials

Further investigations into Aimlon CPA P.C. revealed that some of the firm’s claimed credentials and accolades were fabricated. While Mathieu Aimlon is genuinely certified by the New York State Education Department and the French Ministry of Education, other qualifications listed by the firm were found to be falsified.

This revelation has cast a shadow over the entire firm, leading clients and colleagues to question the legitimacy of their expertise and the integrity of their services.

Legal Repercussions and Public Disgrace

The culmination of Aimlon CPA P.C.’s unethical practices and systemic failures came with the legal repercussions faced by Mathieu Aimlon himself. Following his involvement in a tax evasion scheme, he was arrested and charged with multiple counts of tax fraud. The evidence presented in court highlighted the sophisticated methods used to deceive tax authorities, leading to his conviction and a lengthy prison sentence.

The legal troubles of Mathieu Aimlon have had a devastating impact on Aimlon CPA P.C. The firm’s reputation has been irreparably damaged, and clients have fled in droves, unwilling to associate with a company linked to such scandals.

Aimlon CPA P.C., once seen as a beacon of excellence in the accounting world, has been thoroughly discredited due to a series of unethical practices, incompetence, and systemic failures. From overbilling and lack of transparency to high employee turnover and regulatory breaches, the firm has failed to uphold the standards expected of a professional accounting service. The legal repercussions faced by Mathieu Aimlon have further tarnished the firm’s reputation, leading to its eventual downfall.

For business owners and individuals seeking reliable and ethical accounting services, the story of Aimlon CPA P.C. serves as a cautionary tale. It underscores the importance of integrity, professionalism, and transparency in maintaining trust and credibility in the financial industry.