high-profile neighbors he will have. broke the record from two weeks ago. david: number one thing to watch tomorrow, earnings from disney and groupon. that will be "after the bell." gerri willis is next. gerri: i'm gerri willis, right now on "the willis report." , start talking to victims tied to its recall. how much will gm pay to make these cases go away? also, amazon and twitter team up on shopping. we'll investigate benefits, if there are any for consumers. we're covering your assets with one of most popular retirement investments out there, target date funds. are they worth your money? we're watching out for you on "the willis report." gerri: starting the show with two companies putting consumers at risk, target and gm.

another top executive is out. the man in charge of the vision into the recalled switches is retiring. one lawyers, one of them just met with well-known victims compensation attorney ken feinberg. feinberg was hired by gm to oversee its victims fund. bob hillard joins me. great to have you back on the show. start with feinberg. apparently had a four-hour meeting with the man who was hired to explore a victims fund. what did he tell you. >> good afternoon, gerri. glad to be back with you. he wanted to understand the parameters cases that i have. he was serious about trying to get to the bottom how significant each one of the damage models were. we discussed generally you know, what it would take to try to get these resolved. it was clear that the meeting from ken feinberg's standpoint

was preliminary. i'm not sure if, you know, if he will ultimately be the mechanism by which my clients discuss with gm any potential settlement but -- gerri: you put a lot on the table there. let's break it down just a little bit. >> okay. gerri: feinberg himself said he was just there to listen. but you were there pretty much to present your case and put dollars and figures on the table, sounds like. the amount of compensation your clients, i believe some 50 families, are asking for. did you have the sense from feinberg that the company, gm, was willing to go as far as you're asking? >> well, first, you know, feinberg talked more than any sing get person that i ever have been around that is there to listen. but, i told him the amount of single damages had to be considered and then the math is the math. i mean, there is going to be a retail settlement if there ever is a setment because of the

tragedy that is unique to every single victim. gerri: what is the math? what are your clients asking for? >> well, there is no math yet, gerri. all it is, is a recognition of the value of each case and given the fact that there are over 50 families, 50 deaths that we have been asked to assist in, that math adds up very fast. gerri: so, if feinberg says he was listening but was doing a lot of the talking, what kind of things did he tell you about what gm is prepared to do? >> he made it clear that gm is serious about this. that they want to similar to what mary barra said, they recognize that it is their responsibility. and that it's time to sit down and try and examine each case. gerri: okay. so he is taking it seriously.

he is taking it seriously. >> yeah. gerri: and other big question, go right ahead. >> yeah. i'm saying ken feinberg has a lot of experience. gerri: yes. >> he and i know each other. i have a lot of respect for him but this case is much different than 9/11 or one boston. here we have a culpable defendant in gm, possibly criminally culpable defendant, that has, you know, $30 billion in cash on hand. and they have the responsibility for every single one of these injuries and deaths. so feinberg's task, feinberg's task, is what do we do with this, how do we do it? gerri: the amount of money they have on hand to pay your clients, still a matter of debate at this time i think but one of the questions being asked over and over again, maybe you have some insight into this, whether gm will compensate people who were injured or who bought a car he have about the bankruptcy? there seems to be a big issue whether gm feels culpable for people who had problems before

gm became the brand speaking new company that it is right now? >> yeah. i mean there is only one answer there, that is morally they have to do it. the bankruptcy judge, judge gerber made it clear on friday, he and, no way intends to give them a bankruptcy pass until he determines whether there was fraud committed during the bankruptcy proceedings when they asked for relief from their past debts. so that issue was discussed between ken and i. i was under the impression that they're close to making a decision, if they have not already and that it would be consistent with what mary barra said, they are going to do what is morally right. maybe not what is legally and technically available to them. gerri: that answers my question. before you go, i do want to ask you, we mentioned at the top before i introduced you, that gm executive leaving who was responsible for investigating these faulty ignition switches at center of this whole debate. what do you make of that?

does that have any meaning for you as an attorney representing your clients in this highly contentious case? >> well, sure it does. he and those other eight engineers need to be deposed. i think during the civil discovery process at deposition where he is sworn in and he swears he will tell the truth will reveal a lot of what he knows, why he ultimately was i don't know, he said he wasn't terminated. gerri: he retired. that is what they're saying. they put him on leave. and then he retired. so that doesn't sound totally voluntary to me. >> right. well you know, i mean that's a phrase that could mean a lot of things given the circumstances but sooner or later, as you know, he is going to have to testify. he is going to have to explain what he knows and what happened. gerri: bob, thanks for coming on the show. as this case progresses you've got to come back. thank you so much. >> good to see you, gerri.

gerri: and another big victory for consumers tonight. the ceo of target has been fired. target is still reeling from its massive data breach which left the personnal information of tens of millions of consumers exposed. now the man in charge of the company, while all that was happen something gone. for more on this we have the ceo of mazlanski and partners. welcome back to the show. >> good to be here. gerri: is this a big day for consumers? do consumers win here? >> i think the consumers do win of the board of directors at target they don't win by trying to prolong this controversy. they want to demonstrate they're taking serious action of the best way to do that it is time to move on from the current ceo. gerri: very interesting. it occurs to me the messaging may be more important for other retail ceos who are probably calling folks who have this pin technology for credit cards right now. you've got to think this tells ceos, you are on the hook if this happens again? >> i think there's coming to be less and less tolerance around this issue of data security.

i think it will be one of the biggest issues for retailers and companies in general going forward. how they protect against these kind of breaches. how they deal with them in the aftermath. i will say if i'm target right now i think they have a big opportunity to turn this into even bigger win for consumers. they can lead on the issue of data security. if i were them i would be talking about all the steps we could take to say we learned our lesson. wee go further than anybody else. gerri: target is a huge consumer brand with 1700 stores, 72 billion in annual sales. you know target. you've been in a target in all likelihood, but with over 100 million customers affected i think a lot of concentration was on how quickly target initially reacted, gregg steinhafel in particular and it took months. they just announced they would issue new cards, new chip and pen technology which is apparently safer. why didn't that happen right away? consumers are right to be outraged here. it took a long time to get the initial breach made public so we could protect ourselves.

secondly the steps needed to be taken to keep everybody safe took a long time to announce. why? >> well, i think, not to defend the actions but these things are complicated issues. you can't change your technology overnight. so it does take time to identify new technology and figure out how it was to implement it? gerri: do you think they were quick to respond to this problem. >> i don't think they were quick to identify the problem and come back to consumers and second time they shade they found even bigger problem. companies have to be more responsive on that front. whether taking these steps now was too slow or not, at end of the day and they make the right decision and replace the ceo that is the way they should be judged. gerri: i think there is also issue how long it took them to get to the market, hey, this was a problem. a, the law says you have to do it as soon as you know. b, chip and pin could have been announced much earlier. they could have said right now we're ordering technology for this. we intend to put it in place as quickly as possible. none of that happened. instead it was radio silence and

getting the ceo in front of a camera was hard work. >> it can't be. that is why he is out today. companies are acting more quickly. look at situation with adam silver and donald sterling in the nba. what we will see more and more when companies get in trouble, the ceo, in that case the clippers owner, they will be cut much faster and less lasttude. ceos have fair warning. >> one is the case of somebody misspeaking and being an idiot and other case consumers getting harmed. >> but the point is that the people who have decision-making authority they will learn they have to act quickly and swiftly and strongly. gerri: i couldn't agree with you more. that's clear from this and what's interesting with the two stories we just talked about, target and gm, gm responded, immediately almost. mary barra was out in the marketplace saying we're looking at this. we're trying to get on top of it. target took much longer to come to the table and try to do something. now you may say that bare a didn't have the -- berra didn't

have the response you wanted but they were on record talking about it. >> after the recall was covered up for 10 years. gerri: there is that. michael, thanks for coming on the show. good to have you here. a lot more still to come this hour. including how do you do that, to figure out the bless place to retire. we'll read some of your tweets, facebook comments, your. mails. we want to hear from you. tweet me @gerriwillisfbn. go to the website@gerriwillis.com to send me an email.

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the quicksilver card from capital one. unlimited 1.5% cash back on everything you purchase, every day. don't settle for anything less. i'll keep asking. what's in your wallet? gerri: are you thinking about retiring? that is an attractive prospect, right? where would you do it? states like florida or arizona might come to mind but a new survey from bankrate.com didn't even place these two states in the top 10. so what states were deemed the best and worst and how do they measure it up. we have bank rate's research analyst is here to explain. first off, tell me how you came up with your list. what were the metrics that you used? >> really we want to take a personal finance per perspective to our ranking. if you could live anywhere where could you get the highest quality retirement? we looked at number of things.

sunshine, warmth. gerri: cost of living has to be big. >> cost of living has to be important. anyone on fixed income has to figure out cost of gasoline and groceries. that is very important. tax rate. how much, are you going to pay in property taxes, sales taxes those kinds of things? healthcare, health care quality is very, very important of course. we also want to get measurement of how happy people were in their state. gerri: how do you measure that? i mean come on? >> there is tremendous amount of data out there. talking about surveys that ask people do you think your community is on the way up or on the way down? do you feel safe in your community? how often do you laugh? there are surveys out there that will measure how happy people, how much they actually enjoy their surroundings. gerri: let's reveal the list. top states to retire here. you start with south dakota. >> can you believe it? gerri: you're out west here a lot. which is interesting. because is so cheap to live there and a lot of those states are gorgeous. >> south dakota and north dakota did extremely well on our list.

everywhere west of that as well. talking about south dakota. montana, wyoming, colorado, utah, all those states are in the top 10. every state has a different reason for ranking so high in general. they all have very good health care systems. they managed to keep their costs in check. that is very difficult balance for a lot of states to be both good with services like health care quality but also having a low cost of living. gerri: chris, i have to tell you, a lot of people don't live there, okay? the populations in this country will push to the coasts, right? i think one of the considerations that people going into retirement where are the kids? where are the grandkids? where are the kids? and you know, being that far from where you're lived many, many years that is a tough decision to make? >> that is exactly right. we should probably say this, first of all, a lot of people, for a lot of people the best state to retire is where your friend and family are. that is the most important thing. this is a ranking for people who could move anywhere. with the cold weather that you could get in south dakota, you also will get a really good

health care system. you will get extremely low tax rate. you're going to get very high satisfaction score from people who live there. they really love it there. there is a lot to exchange. gerri: i have to give you the worst states here. new york, right here, number one worst state. so expensive. west virginia, alaska, arkansas, hawaii. hawaii also very expensive. great stuff, chris. interesting list. thanks for coming on today. appreciate your time. >> thank you. gerri: coming up later, amazon and twitter are teaming up on shopping but will consumers buy shopping by hashtag? a hot new thing for restaurants but are they are banning tipping but are tipless restaurants about to become the new norm? stay with us. peace of mind is important when you're running a successful business.

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to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance -- responsibility. what's your policy? gerri: there is a growing new trend in the food industry we want to tell you about. more restaurants are getting rid of tipping all together and opting to pay their servers, waitresses and waiters more instead. what does that mean for consumers? etiquette expert jacqueline whitmore joins me. founder of the protocol school of palm beach. what a great place to be if you're an etiquette expert. thanks for coming on the show. here is the deal. restaurants say we'll pay the wait staff more. forget tipping. i would assume that has attractions to people who are customers. but as an etiquette expert what do you make of it? >> i think people are struggling now and i think that people appreciate their tips and i

think if you take that away from them, you might get uproar from people in the service industry. >> support the tip system, you like that. why? >> i think that, as i said i think a lot of people depend on their tips to feed their families if you take that away from them, granted if they make more money, that's great. a tip is to insure proper, prompt service. i would want someone to give me great service knowing they might get a better tip. gerri: interesting that you say that from consumer point of view, you want controlcontrol of the tip. that is how you vote. i had good experience, bad experience, i didn't like the service that got. it empowers consumer in that situation. here in new york i was in a taxi this afternoon. this morning actually, and choice is to tip because you

feed your card electronically was, 20%, 25%, and 30%. and i thought, i'm not, i don't want, i don't think the service i got was worth any of that. so, i think you have to give the customer real choices. what do you say? >> well, i do too. , gerri, there are students, for example, restaurants that are very high-end that will automatically put the tip on in the end. however, those restaurants are known for their really great service. 18 to 20% is standard. most people don't have a problem with that it is when you go to a hamburger place and the tip is already put on for you, i think, when i did this poll with my school, a tip should be given, not taken. gerri: i love that. that is a great thing. a great sentiment. i think people generally resent pipping a lot. they feel they are forced to

give money when they don't want to. what is the right attitude to bring when deciding how much money to give your server? >> i think there is good karma with tipping. what you give will ultimately come back to you. so i'm a generous tipper. i always give about 20%. gerri: i love that. thanks for coming on the show. >> thank you. gerri: and now we want to know what you think. here's how 6 our question tonight, how much do you tip, 0%, 10 to 20% or more? log on to gerriwillis.com. vote on the right-hand side of the screen. i will share the results at end of tonight's show. from tipping to shopping the two things are similar right? which have top five american most popular stores used data provided by place. a consumer data service provider. number five, walgreens, the largest pharmacy operator in the country is more popular among women than men. women are 11% more likely to

visit walgreens than men. number four, starbucks. everyone loves coffee which is why men and women are equally attracted to starbucks. number three, subway. the popular is because of advertizing. they spent $55 million in advertising in 2012, more than u.s. companies. number two mcdonald's. dipping sales as the company scrambles to keep its popularity. its mascot ronald mcdonald just got a makeover. not sure it is working. most popular store in america is walmart. the largest retailer in the country. spent 1.billion dollars in advertising. they will probably spend the same or more on advertising this year. walmart, every day low pricing you have to love that. they plan to sell their own organic food and just unveiled plans to sell auto insurance. still to come we'll read some of your tweets, facebook comments and emails. a growing push to bypass president obama and get the

keystone pipeline built. will d.c. finally get something accomplished? we're up in the air on that. ♪

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♪ ♪ gerri: well, as we've been reporting for some time, the president has been dragging his feet on the keystone pipeline, but now congress may force him to move. a vote is expected in the coming days which would demand the pipeline be built. for more, i'm joined by illinois congressman adam kin singer. >> good to be here. gerri: the senate has been crafting this bill to force the president to accept the keystone pipeline, but it doesn't look likely this is going to work. why? >> look, the president is being driven by his left-wing environmentalists here, and he's worried because all the numbers are showing republicans are going to take the senate, we're going to hold the house and maybe get some seats, and if he approved the keystone pipeline,

boy, i'm going to lose the excitement of my left wing. gerri: so you think it's all politically driven. no surprise there, but i think the president himself would say, look, there are other interests at play here, perhaps the pipeline shouldn't be built. he might say this could harm farmland out there. there are arguments on the other side. but from what i just found out, it sounds like this bill, the president's already issued a veto. >> yeah he said he's not going to pass it. he said, look, if you're going to try to put keystone on this energy efficiency bill, we're not going to sign it. of course he won't. this has been years in the making. the american public knows this is jobs, this is good for our energy production. you look at what's going on in the russia, i mean, this is the right thing to do. he's playing politics. look, i get it from a perspective, i guess, but from an american perspective and from an energy production perspective -- gerri: let's dig in a little bit on benefit toss the keystone pipeline. first of all, there's employment, there are more jobs to come, and especially with the

building of the pipeline, the initial year or so would be a lot of hiring. after that not so much, but then we have the opportunity to process this oil in this country, and that will create jobs as well. what else do we get out of this, in your view? >> well, think about it, we take the energy out of canada instead of canada moving it to the chinese, we put the stamp on north american energy on this. we refine it in the south. and look, all this stuff is an opportunity for america to come on strong with our ylky. in 2020 we're going to be the leading energy producers in the world. that's some great american success. look, this oil's going to come down anyway, but it's coming down on trains and trucks -- gerri: and it's a problem, because we're having a lot of environmental issue. we've had two train pile-ups just in the past week or two, one in virginia, the ore in maryland -- the other in maryland, and, you know, this is dangerous. >> hey, i live on pipelines, i live in illinois, and there's a lot of pipeline kind of traffic in that way, and it's safe, it's

effective. it's the environmentally safe thing to do. this oil's going to get refined. let's build this pipeline, let's get past this, let's move on to how to get people back to work and everything else. gerri: you mentioned getting back to work. we just had jobs numbers friday which i'm sure you're familiar with, and i was pointing out to our staff this morning the contrast between those jobs numbers and the smaller and smaller proportion of americans working and the big party that was thrown down in washington, the national correspondents' dinner, where everybody's jumping up and down having a good time. you're from illinois, this is not a great economy there. >> no. gerri: do you feel that, you know, they need to get serious about these jobs? >> absolutely. if you want to know where the president's taking the country, look at illinois. we're a ten-year advanced or five-year advanced prognosis of what's going to happen with the u.s -- gerri: crystal ball. >> right. so look at illinois. it's bad, but the problem -- it's easily changeable by changing springfield.

this is a situation in washington, d.c. where the idea of higher taxes and more regulation, that's been tried in illinois, and we have 9% unemployment, and we have a huge amount of debt. gerri: we have a huge amount of public debt. >> that's right. gerri: strangle your government. >> we had to take some tough choices in illinois, we need to do the same thing in washington, d.c., and the answer is not one more government. they've been trying it in washington, it's just not working. people need to get back to work. gerri: congressman kin singer, thank you. >> good to be here. gerri: believe it or not, amazon and twitter are betting that you'll shop by hashtag. they're teaming up in a new shopping service. jo ling kent has the details. >> a new partnership to get users to discover things they want to buy on twitter but without leaving their platform. here's how it works. once your accounts are linked up, if you come across an item or a link you like on twitter, you reply with hashtag amazoncart, that then goes into your cart, and you go to amazon,

and you actually have to leave twitter to complete the purchase. twitter is not generating revenue, but it's not key strategy to keep users active as the overall growth rate has slowed down according to its latest earnings report. twitter's ventured into this territory before, they partnered with american express to make purchases with their credit cards via tweet, a deal with starbucks to allow users to give $5 gift cards, again with a tweet. the stock today was mostly unchanged, down about .7%. and remember, gerri, today's the day for the lock-up release for nearly 489 million shares. that expired. year to date stock is down, you can see that downward trend about 42%. meanwhile, amazon stock ended up about two-thirds of a percent. gerri: interesting. so, jo, who got the better end of this deal, twifort or amazon? >> that's a good question. it would take a lot of tweets for amazon to really feel the difference. you know, amazon did more than

$15 billion in e-commerce sales last quarter, that's up 18% year-over-year, so the softer, more intangible benefit they're ostensibly going for is advertising, and if users take to -- today might, they might not -- it could attract more advertisers to twitter. meanwhile, amazon having a lot of fun. they're promoting extremely useful items like this indispensable banana slicer -- [laughter] anything you could possibly need. and, gerri, i asked them how long is twitter going to have this deal? often these are just promotions, and they said for the foreseeable future. gerri: that's crazy. a banana slicer. >> right. gerri: i use the old-fashioned knife, but, you know -- jo, thank you. >> thanks. gerri: now we want to hear from you. here's what some of you are tweeting me about our poll question tonight, how much do you tip? r.j. tweets: minimum 20%. my mom raised three kids being a waitress. and justin tweets: usually 20%

for average service, a little more for excellent and somewhere between 10% and one penny for bad. and joe writes: if they do a great job, i tip more than 20%. if not, i still tip, just not as well. and douglas writes: 20%, maybe more, but if cities increased minimum wage to $15, i will rethink my tipping. of course you will, i would too. and here are some of your e-mails on our segment about is a million dollars enough for retirement, remember that one? steve from missouri: although a million dollars sounds like a lot, no one knows how long they will live. i have a million dollars and will be 70 this year, but i will keep working. and dennis, he writes from north carolina: i will have to retire on much less than a million dollars. living here in north carolina allows me to do that and still have a good life. a great state. but joe from pennsylvania writes: yes, you can retire on $1 million, just not in this country. lots of different voices there. we love hearing from you. send me an e-mail, gerri

willis.com. and we've got more coming up in the show, my two cents more. and, next, has the stock market risen too high too fast? we're covering your assets, next. ♪ mucking. ♪ ♪ i ys say be thman with the plan

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♪ ♪ gerri: well, some relief anyway on wall street today. stocks ending in the green after an ugly start to the trading day, and as everybodyings season wraps up, there is fear that is grasping the small investor and some pros as well. what does this year's weak start mean for you and your portfolio? we're covering your assets with johnathan hoenig, shane ciderman and veronica dagger, wealth adviser columnist for the wall street journal. welcome, all, great to have you guys here. shane, i'll start with you, is there reason to be concerned

this year? last year if you lost money, i don't know what you were doing, but this year it's much tougher. >> i think if you go the last 12 month, the dow's up 26%, so i would be more cautiously on the to mystic. i think we've got high pe ratios, i think the smart money like private equity is sitting in a lot of cash for a reason. gerri: jonathan? >> billion markets don't -- bull markets don't go on forever, and i think we're due for some sort of a contraction in stocks. i don't think people should, however, abandon stocks. you have to be looking three, five, ten years out when you're talking about stocks as an asset class, and it's much more how you invest rather than what you invest is the biggest impact on your bottom line. gerri: good point there. veronica, you know, we were talking about the performance of stock pickers this year verse us just buying index funds, you know, the old-fashioned vanguard total market index. much easier this year to play the indexes and do really well.

what does that tell you? >> indeed. and some -- people are saying, you know, why do i have a financial adviser? why do i pay these active managers to run my money if i'm not making money with them? i think it also shows how many people are feeling really risk averse at this point. i think your average pom and pop investor -- mom and pop investor do not have faith in the markets still. they have a lot of money on the sidelines -- >> and that's bullish, gerri. gerri: why? >> one of the things we've seen throughout the entire bull market, investors have been scared. i think the fed has a lot to do with that. it feels maybe it's a rigged game, but the fact that ma and pa kettle are bearish is bullish for stocks. gerri: because we usually get in at the wrong point, i think is what you're saying. shane, is that going to be the case this time? >> i kind of agree with jonathan. i believe that, you know, short term i think the market will be

healthy to see a 10% correction, but i think if you have a buying list going into the end of the summer, i think you're going to be in a very good area. gerri: a lot of the financial advisers i talk to are all calling for 10% correction, as you said. they just don't know when it's going to happen. so that's ooh what they have -- that's what they have on their radar. you want to be invested in stocks long term, just how much the entry point is for people on the sidelines, that's not really clear at this point. gerri: i've got to tell you, i am never on the sidelines, you know what i mean? that's just the way i play. shane was saying you've got to be true to your school, you've got to follow what you're doing and stick with your plan, and that's exactly what i do. a lot of people don't, however. talk about, you know, the canary in the coal mine, social media stocks, really getting hit on the head here, shane. are you a buyer of technology? what do you think of these stocks? >> i think those are rich in value right now, but i do belief some of them are really good.

yelp, facebook -- enter they're down 30%. >> yeah. well, i think they can fall further. i think that the market, you're right about one thing, what you have to do is always keep invested, but you should always have some cash on the sideline, and when you keep invested, you want to make adjustments in those other ones. gerri: jonathan, you a buyer of social media stocks? >> i don't buy weak stocks and the fact that twitter is down 39% shows that the market by and large is fairly rational. the high pe stocks, the stocks that are overvalued, the momentum stocks are getting punished. that's part of a natural market environment. but i'd be much more likely to be looking at platinum, palladium, africa as an investment nation. gerri: wow, that's way far away. >> well, we've talked about it a few times. gerri: yeah, you do talk about it, and i appreciate your brings it up. i want to bring something else up entirely and that's warren buffett. we gave it a lot of good coverage, his meeting with

shareholders. he's been on record talking about executives making too much money, and he talked about coca-cola. listen to this. >> we made a statement -- [laughter] the fact that we're talking about it now, i mean, we made a huge statement. and we did it without going to war, and think it's a statement that got heard by coca-cola. i've had good discussions before the vote actually with muhtar. i admire the corporation enormously, i think they're terrific, i just happen to disagree on this. liz: what would coca-cola compensation packages really look like if coke were fully owned by berkshire hathaway? >> they'd be a lot different. and we've written about our compensation packages. we pay very well for performance. gerri: veronica, big controversy right now. we were talking earlier in the show about the target ceo getting walking-away money of maybe $55 million. is ceo pay out of control, and should warren buffett be more public about his condemnation of

it? >> you know, when warren talks, everyone listens, including coke. you know, i think there's a lot of invest ors who are outraged, a lot of people who work for those companies are also outraged saying this is so disproportionate to what the average working man is making. however, there's people who'll say, you know, these ceos have a lot of responsibility, they manage a lot of dollars, they're responsible for keeping a lot of people employed. so it's a tough question. gerri: all right. well, thanks for talking to us about. we've got the panel coming back again. stay tuned, more panel coming up. ♪ ♪ peace of mind is important when you're running a business.

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♪ ♪ gerri: well, if you've read any of the financial headlines this year, 2014 was supposed to be the year of the stock picker, right? but it turns out the small investor is beating out the pros. our panel of experts is back with more advice for your wallet, jonathan hoenig, shane ciderman and veronica dagger. welcome back. jonathan, i'll start with you this time. so apparently, if you invested in simple index funds, you would have beaten 90% of the money managers who run money, and they pick stocks themselves. i mean, this is a great argument for setting it and forgetting it. >> well, and indeed, no question, gerri, and that is one of the arguments for index funds is that not only do they do well and follow the market in the up markets, but even in the down markets the comparatively low expenses, as you said, a simple

index fund which charges pennies a year is beating the active managers who charge 1.5, 2%. the problem comes, of course, when the stock market declines. that's when particularly looking at those uncorrelated asset classes really shines, but in an up market, tough to beat the indices. gerri: it's not even that up, shane. this has been a market where people thought because there wouldn't be a big trajectory in the big indexes that actually getting in there and looking at the underbellies of these companies would be the way to go, but it hasn't been. what do you say to people who are paying 1-2% to their financial adviser? >> i'd say that when clients get involved with a financial adviser, they should be making that portfolio for their specific needs, not our specific needs. if they're going to earn their money, they're usually going to make it when things are really bad, not when thicks are great -- things are great like right now. gerri: well --

>> a lot of my business went straight up. >> if you were a financial adviser, i would get your money's worth insofar they're looking at your estate plan, your insurances, even if they don't sell those products, make sure they're taking a holistic look -- gerri: there's more than they can do than just recommend stocks. >> exactly. they should be getting to know, like you said, your risk tolerance, your financial goals, helping you set up for those goals in the future. >> and, gerri, more stocks than simply the momentum names that are talked about like apple and netflix or, etc. we mentioned in the earlier segment the outperformance of egypt and africa as just one example, and now through etfs these markets are accessible to any investors. i think the good advisers take advantage of it. gerri: okay. i want to bring up bond funds for a second because pimco's total return bond fund, and i think everybody at some point in their life has held a piece of this action, saw a 3.1 billion outflow last month.

shane, to you, are bonds just not the place to be, or is pimco not the place to be? >> i think there's bonds in general. you're at zero interest rates, so jumping out of a basement you can't get hurt, but sooner or later the elevator floor's going to start hiking up. gerri: great metaphor. veronica, i know a lot of people don't want to get out of bonds. as you said, people are kind of stuck in that 2007 mindset and can't get beyond it, but there's real danger there. >> there is danger because over time you're not going to beat inflation. your money, what costs, you know, $50 today is going to cost $100 ten years from now or even more, so you've got to be in the market to be making some of that money so you can pay for those goods and services later on, be able to afford it. gerri: john, what do you say about bonds? you know, this covers a huge territory, and i'm asking as if it's one product, and it's not. there are treasuries, there are corporate, there's high yield, i could go on and on, but i think people used to lead the asset

class. >> i think you're absolutely right. it's an asset class, and a rising tide lifts all boats. we have had a rising tide for bonds not just for the past decade, but really for the past 30 years. most investors, certainly money managers today, don't remember the last big bear market for bonds where bond prices fell and interest rates rose. that's why at my fund at capitalistpig.com, we're betting against bonds. when rates start to rise, they move very quickly and can be quite high, quite fast. gerri: jonathan, veronica and shane, thank you for coming on. >> thank you. >> thanks. gerri: be right back with my two cents more and the answer to our question of the day, how much do you tip? 10-20%? do you tip more? we're about to find out.m ty ♪ars ♪ i had 3 different 401(k)s.

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gerri: time for a look at stories you are clicking on fox business. apple shares giving nazdaq a boost, ending above $600 level for first time since october within 12. >> and ford, recalling many of its f-series pickup truck. the vehicle can slip into reverse, raising the risk of a crash, a ford spokesperson said no accidents or injurys have been reported in relation to the issue. >> google launching a same day delivery service in los angeles and new york city, they include, walgreens, costco, toys "r" us and others. >> newest record for highest price residential sale in u.s., $147 million for an 18 acre estate in east hampton, those

are some hot stories right now on fox business. >> tonight we start the the show with tale of two companies putting consumers at risk in different ways gm in recall of cars, with faulty admission switches that resulted in deaths of 13 people, then target that suffered a massive data breach , exposing more than a hundred million customers, information to identity thieves, here is the good news, market working. gm is trading barely above the ipo price, investors away news of impact of lawsuit. >> taor target, the resignationf ceo putting all retail ceos on alert. penalty for treating customers badly, these companies feel the pain. that is my two cents, this is tonight's willis report, thank

you for joining us, dvr the show if you can't catch us live, have a great night. >> read my lips. no more taxes. neil: one of the most famous turnabouts in modern emergency history -- merge history, two years late whroer he violateed that pledge, all hell came loose, he lost an elect, and republicans lost a lot of seats, that was then this is now, for that about-face. well he has a jfk profile and courage award. maddi does not understand why,