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March 21, 2019 (Melville, New York)
Lantern - a wealth management boutique, whose affiliated companies include a regional broker-dealer, a wealth management firm, and an insurance company - announces its latest team member, appointing Keith Douglas as Vice President - Fixed Income Markets. Keith’s responsibilities will include: assisting our Tri-Party clear through relationships, RIA partners, and Lantern’s financial advisors with fixed income portfolio strategies, portfolio construction, and idea generation.
When asked about joining Lantern, Keith said, “I am excited to assume this role and to be part of a boutique firm, rich in fixed income history. I look forward to providing tailored fixed income solutions to Lantern’s individual and institutional clients and to have the opportunity to contribute to the evolution of Lantern’s fixed income group.”
Keith is a financial services professional with extensive experience with top tier investment banks. Previously, as Director of Global Bank Sales Foreign Exchange at Citigroup Global Markets, he provided tailored fixed income and foreign exchange (FX) solutions to the firm’s financial advisors, their ultra high net worth (UHNW) clients, and to financial institutions.
On expanding its national fixed income group, Keith Lanton, President of Lantern, said, “We are very proud to welcome Keith Douglas. Lantern is committed to providing our clients with fixed income knowledge and solutions.”
Keith is an active member of the Fixed Income Analysts Society (FIASI). FIASI, founded in 1975, is a not-for-profit professional society dedicated to the education of its membership and the fixed income community at large.
Keith is married with three children. In his spare time, he enjoys playing golf, skiing, and spending time with his family. Keith is a founding member and director of the Joshua Kahan Fund, a not-for-profit foundation finding a cure for pediatric leukemia. Keith holds a BBA from the Lubin School of Business, Pace University.
Keith will be working from our corporate offices in Melville, NY. He can be reached at 631-454-2000 | kdouglas (at) lanterninvestments (dot) com | LinkedIn: https://www.linkedin.com/in/keithdouglas2/
Lantern is the shared marketing name for Lantern Investments, Inc., Lantern Wealth Advisors LLC, and Lantern Insurance Brokerage Inc. Lantern Investments, Inc., founded in 1993, is a full-service retail and institutional, regional broker-dealer with fixed income securities as its base. Lantern Wealth Advisors LLC., an SEC registered investment advisor, provides comprehensive asset & wealth management solutions as well as financial planning services. Lantern Insurance Brokerage Inc. provides life insurance solutions to help take care of loved ones in the case of an untimely death, long term care needs, and estate planning needs. In addition to our New York offices, Lantern has offices in California, Florida, Illinois, and Texas. Lantern Investments, Inc. A registered broker/dealer. Member FINRA | MSRB | SIPC. Lantern has custodial relationships with Pershing, LLC, a wholly owned subsidiary of Bank of New York Mellon Corporation, and Charles Schwab. To learn more about the Lantern group of affiliated companies, please visit the company’s website at https://www.lanternwa.com
The economy skirted another landmine on February 15 when Congress passed, and President Trump signed, a package of spending bills that funds the government for the rest of the fiscal year ending September 30.
Thanks to the government shutdown it will be a while before the data calendar returns to normal. In the meantime, economists, policymakers and investors are flying partially blind.
Read Lantern Investments latest newsletter March 2019
(January 2019) "Gathering Headwinds"
With the midterm elections behind us, the pollsters can breathe a sigh of relief that the outcome was generally consistent with their predictions, unlike the embarrassing misses in the 2016 election.
Read Lantern Investments latest newsletter January 2019
December 2018 The Federal Reserve, as expected, raised its bellwether policy rate again at its September meeting, bringing it to a range of 2 to 2 1/4 percent. Read Lantern Investments latest newsletter December 2018
The Road Ahead Will Get Bumpier
"With the economy closing in on the best year for growth in more than a decade, household and business spirits are understanably upbeat."
Read Lantern Investments latest newsletter November 2018
As a Silver Sponsor of the MBCNY, Lantern Proudly Demonstrates its Commitment to the Bond Industry
Lantern, a wealth management boutique with a national presence, is delighted to announce its Silver Sponsorship of the Municipal Bond Club of New York (“MBCNY”). The MBCNY was established in 1932 with the mission of promoting fellowship and integrity amongst business professionals by “providing an arena for education, charitable giving, and networking events.”
Lantern Investments, Inc. (Lantern), a full-service retail and institutional broker-dealer is pleased to announce the hiring of industry veteran Dwight A. Pike.
Dwight Pike is an experienced professional with over 35 years of investment experience. He has worked with institutions and individuals to create and manage fixed income and equity portfolios.
Prior to joining Lantern, Dwight was affiliated with Westport Resources Investment Services, Inc. Early in his career, Dwight managed an equity portfolio for Cowen Asset Management and was a founding partner of Unquowa Partners, an institutional brokerage firm.
We are excited that Dwight has chosen to join the Lantern team, stated Keith Lanton. We look forward to leveraging his knowledge and experience to enhance the Lantern Wealth platform.
Dwight earned his Chartered Financial Analyst designation in 1983. He obtained a B.A. degree in economics from the College of Wooster and an MBA® from the University of Connecticut.
About Lantern Investments, Inc.
Founded in 1993, Lantern Investments, Inc. is a full-service retail and institutional broker-dealer with fixed income securities as its base. Today, Lantern Investments is proud to be a leading bond specialist, finding value for clients across the country. In addition to three New York offices, Lantern has offices in Texas, Chicago, and California. Through its fee-based affiliate, Lantern Wealth Advisors LLC, Lantern provides asset & wealth management solutions as well as financial planning services. The Lantern group of companies services over $1 billion in assets for high net worth clients. To learn more about Lantern Investments, please visit the companyâ€™s web site at http://www.lanternwealth.com
Finra's $1.6 billion portfolio has returned 3.4% annually, versus 6% for a half-stock, half-bond portfolio.
By: Dave Michaels
Updated Oct. 5, 2017 4:08 p.m. ET
WASHINGTON: The Financial Industry Regulatory Authority is more than just a Wall Street regulator.
Rare among regulators and little known to many industry participants, Finra is also an investor and one whose subpar returns are compounding its members' financial challenges, say some of the brokerages that pay its fees.
From its inception in 2004 through the end of 2016, Finra's $1.6 billion investment portfolio has brought in $440 million less than what a balanced mix of global stocks and U.S. bonds would have yielded, according to Wall Street Journal calculations. Some brokerages are starting to question how it uses the stockpile.
"It would be prudent for them to take a second look at where that money is going," said Wendy Lanton, chief compliance officer for Lantern Investments Inc. of Melville, N.Y., a firm that employs 44 brokers.
Despite Finra's decision to initially pursue strategies associated with large endowments, such as investing in alternatives such as hedge funds, the portfolio has lagged far behind the market. It has returned 3.4% annually, versus 6% for the half-stock, half-bond portfolio, according to the Journal's analysis of figures disclosed in Finra's annual reports.
The returns have real ramifications for the brokerage industry. In years when Finra's fee revenue exceeds forecasts and investment gains are strong, the regulator can rebate fees paid by firms it regulates. It hasn't done that since 2014.
Instead, since implementing its portfolio Finra has raised some fees it charges its 3,800-member brokerage firms to support its $1 billion budget, partly because its revenue has come under pressure as smaller firms fail or merge. Finra membership is down from 4,600 in 2010.
Finra's actively managed portfolio--unusual for regulators, which normally invest their cash in short-term securities--dates to a windfall that it reaped over several years starting in 2001 after its predecessor, the National Association of Securities Dealers, sold off its interest in the Nasdaq Stock Market.
Finra decided in November 2003 to mimic the investment strategies of university endowments, such as those at Harvard and Yale. It didn't widely publicize the decision, which was opposed by some smaller brokerages that wanted Finra to distribute the Nasdaq payout to member firms. "Finra's investment portfolio is governed by a policy based on best practices of endowment funds," it wrote in its 2007 annual report.
At first, that meant embracing alternative strategies such as investing in hedge funds. In 2006, Finra's board debated whether to reduce its holdings of less liquid investments because the regulator's expenses were increasing faster than revenue, but ultimately didn't make substantive changes, according to an internal report that examined the history of its performance. Finra officials say they spend about 3% of the portfolio each year to pay operating costs.
After losing $576 million in the 2008 downturn, triple its worst-case estimates, Finra piled much of its portfolio into bonds, missing out on much of the subsequent stock-market rally.
"It's pretty drastic underperformance that would typically result in a change of who their consultants or underlying managers are," said Brad Alford, founder of Alpha Capital Management, an Atlanta firm that helps clients identify investment advisers. "They are underperforming a fairly conservative benchmark."
Over the past 10 years, Finra's portfolio netted an average annualized return of 1.9%, according to Journal calculations. That compares with a 5.7% return for endowments with assets over $1 billion, according to the National Association of College and University Business Officers. Finra discloses returns on a calendar year basis, while colleges and universities report performance over a fiscal year that runs from July to June.
Finra officials say they seek greater diversification than a simple basket of stocks and bonds. "We pursued a much more conservative approach than a 50/50 benchmark," said Nancy Condon, a Finra spokeswoman. "Judging risk in hindsight in this manner is meaningless." The portfolio tries to achieve "lower-risk returns that preserve principal."
Finra officials also disputed the Journal's estimated $440 million shortfall because the calculation doesn't use the precise dates of cash flows into and out of the portfolio. That information isn't provided in Finra's annual reports, and the regulator declined to supply it.
Finra tripled the share of its portfolio parked in bonds and cash in 2009, and yanked money from hedge funds and stocks, a decision that hurt its performance as riskier assets rebounded that year. The organization since then has kept about 12% in cash, according to Finra officials, which also hurts returns.
Finra's returns since 2009 have met a custom benchmark that Finra executives use to judge whether their outside money managers beat lower-cost alternatives, Ms. Condon said. But Finra's annual reports don't disclose the benchmark's performance or report how it is calculated.
Since 2009, Finra's portfolio has notched an annualized return of 5.3%, compared with 7.6% for a 50/50 balanced portfolio, according to the Journal's analysis.
Finra further adjusted its asset allocation last year, pulling $35 million from HighVista Strategies LLC, a private fund manager founded by former Harvard University professor Andre Perold that practices endowment-style investing.
The move will reduce fees that Finra pays to HighVista and will boost portfolio liquidity, according to Finra's 2016 annual report. Finra officials say they are pleased with the performance of HighVista, which didn't return calls seeking comment.
September 29, 2017
Lantern Investments, Inc. (Lantern), a full-service retail and institutional broker-dealer, announced today the hiring of industry veteran Brad Harris as Director of Fixed Income Investments.
Brad Harris is a seasoned professional with over 25 years of experience in finance. He is the third generation of municipal bond specialists in his family. Prior to joining Lantern Investments, Brad was Senior Vice President of the family-owned Douglas & Co. Municipals, a 45-year-old Municipal Bond firm. He brings with him expertise in bond trading, sales and asset management. Brad will run a branch office of Lantern in midtown Manhattan.
By Sal Favarolo
Owners of small businesses with no employees, except perhaps a spouse, often use a simplified employee pension (SEP) plan, a business retirement plan that allows for larger contributions than a traditional individual retirement account (IRA) ...
By Wendy Lanton
In their own way, words are nothing but metaphors indicating the objects they epitomize. Every word can be viewed as a metaphor representing something beyond its simple spelling and articulation. This is particularly true for some of the language featured in the industry standard new account form.
Cultivating a long lasting client bond is crucial to both the longevity of the relationship and future generations.
By Keith Lanton
September 10, 2015 at 11:25 AM EDT
Melville, NY -- (ReleaseWire) -- 09/10/2015 -- Hate to haggle for a bargain? You're not alone. So, imagine your excitement at having the opportunity to shop at a store where most prices are meaningfully discounted from where they were just a few weeks ago. Now, picture that a kind stranger just handed you a coupon to take an additional discount off the already reduced prices.
by Wendy Lanton
Teaching investors the role their financial representatives play is a crucial component of the educational process.
The recent barrage of articles regarding the “fiduciary standard” is not bound to cease but rather to endure. At the crux of the debate is the Department of Labor’s [DOL] intention to adopt and enforce a new standard that would, among other things, force brokers who work with retirement accounts to become fiduciaries.
By Wendy Lanton
Communication is a two-way street.
There is a symbiotic relationship between broker-dealer, advisor and client. They all rely on each other to manage a relationship that can be effective only if each party is honest and provides complete information.
By Keith Lanton
Buying municipal bonds empowers investors to retain 100% of their interest income.
Melville, NY -- (ReleaseWire) -- 06/26/2015 -- A wise man once said, "Choose your friends wisely. Not everyone has your best interest." Investors, please take note.
Savvy investors are the ones who most often choose to invest in tax-free municipal bonds. They have a very good reason for doing so—they avoid taking on a stealth partner, such as Uncle Sam or a state government, whose "best interest" is to take away a share of an investor's profit. In fact, by buying tax-free municipal bonds, investors may be able to keep 100% of their interest income.
Every time an individual receives a coupon payment form a taxable bond, earns interest from a certificate of deposit (CD) or a bank account, she or he is investing with a partner. Be it Uncle Sam or the US Government, that partner claims its partnership share of every interest payment received. Uncle Sam in particular is an astute partner. He does not claim his share at the time an investor receives interest payment. Rather, he asks for payment every year on April 15th. By demanding his share at a later date, as part of a complicated tax return, Uncle Sam makes it much harder for investors to realize the magnitude of his "participation" in their hard earned interest income.
For those who are in the highest federal tax bracket, Uncle Sam becomes a 39.6% partner of every taxable interest payment they receive. For investors living in high tax states, such as California or New York, the situation is even worse. For example, for an individual in the highest state tax bracket in California, in addition to Uncle Sam, the State of California joins the partnership by claiming 13.3% of every taxable interest payment she receives. Think about it! That investor puts up 100% of the capital to receive only 47.10% (100%-39.6%-13.3%) of the return!
Buying municipal bonds empowers investors to achieve two key strategic goals: 1) circumvent the risk of taking on unwanted partners; and, 2) secure their ability to retain 100% of their interest income. Currently, municipal bonds are trading at attractive historical levels relative to taxable bonds. Yields on 10-year municipal bonds are 105.16% of the 10-year Treasury and 20-year municipal bonds are yielding 114.39% of the equivalent Treasury. This has a very important implication for investors, as it means that despite the fact that municipal bonds' income is tax-free— consequently, their rates should be lower—their yields on maturities greater than 10 years are higher than those on treasury bonds! Of course, the latter are backed by the full faith and credit of the United States. Nevertheless, municipal bonds levels over 100% are high by historical standards.
So how can investors go about in finding the right bond? Here are 5 tips:
1) Think like a Banker! -- A bond is a loan, and the investor is the bank.
2) Time Horizon – An investor must decide when she wants the loan (bond) to end.
3) High yield is not everything – Is the extra return worth the potential loss of principal and the stress associated with it?
4) Credit Worthiness – Investors must evaluate how likely they are to get their money back
5)Tax Equivalent Yield – An investor must compare apples to apples by calculating upfront what interest rate must be received on a taxable bond to earn the equivalent tax-free yield.
No one knows where interest rates will be in the next few years. What is known instead is that, if investors buy a tax-free bond paying 4% and hold it until maturity, they will receive an attractive tax-free income. In fact, that tax equivalent yield will be 8% if the investor is in a 50% combined federal and state tax bracket. At maturity, as long as the issuer remains in good standing, the principal will be repaid in full.
About Lantern Investments, Inc.
Based in Melville, NY, Lantern Investments, Inc. is a wealth management firm that educates and guides multi-generational clients to achieve their financial goals by managing risk, growing assets and preserving wealth. The firm has offices in Westbury, NY, Chicago, IL, Houston, TX, San Francisco, CA and Hoboken, NJ. For more information call (631) 454-2000 or visit http://www.lanternwealth.com
About Keith Lanton
Source URL: http://www.releasewire.com/press-releases/release-606807.htm
By Wendy Lanton
While almost all broker-dealer and investment advisory firms recognize they need a plan to deter, prevent and detect cyber invasions, most advisors don’t seem to realize the vital role they play.
Simple steps can make the difference between keeping client data secure and suffering a cyber attack
By Wendy Lanton
Corporate culture is a top down approach. Management at member firms should take a close look at their corporate culture to ensure that what is being preached is actually being practiced.
Melville, NY -- (ReleaseWire) -- 04/06/2015 -- "Don't judge a book by its cover and your investment performance by its brokerage statement!" cautions Keith Lanton, President of Lantern Investments.
Lanton warns that investors continue to inaccurately assess the performance of their investments, especially around this time of the year, tax season, when they review their 1099 Form.
By Sherly Nance-Nash. Special to Newsday
By Keith Lanton
Holding tax-free municipals to maturity can make otherwise skittish investors more confident
The only certain thing about investing is uncertainty. That theme was validated last year and humbled the wise men of Wall Street. Seventy-two out of 72 economists polled predicted that interest rates would rise. Yet the 10-year Treasury yield fell to 2.20% from 3.00%. In addition, none of the economists foresaw the price of oil tumbling to under $60 a barrel from $110, yet it did.
By Wendy Lanton
Lately, registered representatives at FINRA registered broker dealer firms seem to be quickly heading for the doors to join RIA firms.
By Keith Lanton
Zero-coupon tax-free bonds may offer the best investment opportunity in today’s fixed-income market. Intermediate- and longer-term tax-free zeros are currently yielding about 20% more than comparable coupon-paying bonds. For example, an investor in a high-tax state can earn 3.50% to 3.75% on a 20-year tax-free muni. A client in a high federal and state tax bracket could see a tax-equivalent yield of 7.00% to 7.50%.