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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (4850)	1/3/2000 11:52:00 AM
From: Arik T.G.	Read Replies (1) \| Respond to of 5676

Yeah, like the Hindenburg. What's TL & EV ? ATG

To: Mike M2 who wrote (4850)	1/4/2000 11:43:00 AM
From: set	Read Replies (1) \| Respond to of 5676

this is reprint from a listserve. I didn't get permission to repost it, but I doubt that's a problem ---------------------------------------------------------- Reply-To: James Taylor <jptaylor@advsoftware.com> In the December 1999 issue of Financial Planning Magazine, there is an article called "Planning in Middle America", which details a new 'financial planning' system being delivered (perpetrated) to middle class Americans. Here's how it works, Mr. Bert Whitehead recommends to his middle class clients (defined as ones with little to no savings to speak of, no financial plan, but a job of some kind and some 'equity' in their homes) totake out home equity loans in order to 'invest' in the stock market. He believes his system is so revolutionary, he is (spreading the gospel) teaching fellow financial planners how to do it (structure it) for the small training fee of $12,500 and $125 per month retainer fee. For this fee, a planner receives a six-day training program, software, forms, a homepage and 40 interning hours. "That's when you actually sit in on client appointments with us, so you can experience firsthand how we work," Whitehead says. The strategy of tapping home equity for debt and 'investment' purposes stands out. Most controversial, however, is the fact that advisers are encouraged to buy credit card machines so that clients who can't afford to pay them by cash or check, can s till pay them. Whitehead argues that the plan is benefiting the clients since he consolidates their debt, by paying off other credit cards with a portion of the money borrowed via the home equity line of credit, which is also tax deductable. When this market tanks, I wonder how he will explain to his clients just how it was possible that they lost their homes and the equity money they saved for a lifetime for the thrill of gambling in the stock market.