NBA star Tim Duncan has filed another lawsuit against his financial advisor, claiming he was duped into investing $1.1 million into a cosmetics business. Duncan, who previously filed a $25 million lawsuit against his advisor, Charles Banks, claims that Banks did not disclose that the business, Le Metier de Beaute, was on the brink of bankruptcy. Instead, he told Duncan that he, and others - including fellow NBA star Kevin Garnett - were investing in the firm and wanted to know if Duncan wanted in. Banks initially sought $500,000 from the NBA champion, but later asked for $1.1 million, which Duncan gave. Duncan is seeking his investment back, plus punitive damages against Banks.
A survey from global consulting firm Protiviti of more than 650 finance executives and professionals has assessed the top financial priorities for 2016. In an analysis of all respondents, margin/earnings performance was said to be the top priority, followed by strategic planning, tax planning/forecasting, periodic forecasting and budgeting. For Chief Financial Officers, cybersecurity was cited as significant for the year ahead. "From a finance perspective, there are significant concerns regarding the security of financial information as well as the financial impacts of the security of all data," said the study. "While IT often takes the lead in addressing the risk, cybersecurity is now a top boardroom issue as well as an area drawing substantial time and attention within the finance function." Financial services CFOs and professionals made up 13 percent of the study demographic, which was third largest behind manufacturing and energy.
When faced with a retirement shortfall, most clients would try to compensate by working longer and cutting out travel and charitable giving. According to a new survey by the AICPA of almost 400 CPA-certified financial planners, almost half of advisors say their clients are more likely to proactively reduce their spending first, then increase income and cash flows as needed. The top three categories were reducing gift plans, cutting down on travel and spending less in general. Yet about a third of advisors felt that their clients would not make proactive spending changes until absolutely forced--even if facing cash flow problems.
The ultra-rich just got more extravagant. This week a Patek Philippe watch went for $7.3 million at Phillips auction in Geneva this week, making it the most expensive wristwatch ever sold, according to CNBC. That is 10 times the low estimate for the watch at $700,000, the publication writes. The watch, however, was not as flashy as you’d think—no diamonds, jewels or gold bling. The second-most expensive was an 18-carat gold wristwatch that sold at Christie’s for $5.7 million in 2010.