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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (66247)	9/25/2002 10:04:57 AM
From: BWAC	Read Replies (1) \| Respond to of 70976

<Please elaborate. > Play a round of golf, and say that you went to the appointment.

To: michael97123 who wrote (66247)	9/25/2002 4:25:07 PM
From: Terry D	Respond to of 70976

Michael - Only since you are a downtowner (I loved those people who say things like I never go North of 14th Street - or Houston - I lived in the W Village - Perry St - for 10 years) A "financial planner" - takes your age, risk parameters (meaningless words) plugs them into a simple program that spits out an asset allocation. Younger - more equities. Higher risk tolerance (what the ^%$& does that mean, anyway?) - you get your equities with small cap/ growth (squishy term) bias - based on Jeremy Siegal's small cap performance bonus work -which has been completely discredited. You are 57, you have been hammered in the mkt - you get bonds, bonds, bonds. The fundamental flaw of buying something (fixed income) at historic highs (like the NASDAQ in Q1 2000) is not part of the decision process - because bonds are held forever. If he is really clever - you get some kind of annuity-ish wrapped fixed income product with an EEEEEEEEEEEEEEnormous front end load. And there you are - locked in - with LIBOR at 1 1/2% and a back end fee to get out. When money market would have been a better choice. Lord could I vent - it is just the prepackaging that kills you and costs you - packaged products, packaged advice - it covers their butts - they only buy 5 star funds. What do 5 star funds return - AFTER they are 5 star funds? In most cases you are betting on the winner of the last race w/out looking at macro questions. If it goes down - it is Morningstar's fault. You want to see AIMR compliant return numbers - for ALL assets under management - not a model portfolio. Oops - I gotta go - td