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URL:  http://boards.fool.com/gemini1-date-71499-251-pm-number-12167-his-11048347.aspx

Subject:  Re: A meeting with the WISE Date:  7/14/1999  3:48 PM
Author:  WilliamLipp Number:  12172 of 90110

gemini1 Date: 7/14/99 2:51 PM Number: 12167
His parents will most likely NOT be in need of financial aid, however, will keeping the money in his name affect my grandsons chances of receiving loans if he does need them?

The truth is that I don't know. But my BS detectors smell an urban legend here. I hear lots of stories about people getting educational loans that are a terrible burden after graduation, but I've never heard a story of someone failing to get an education because the bank said they were too rich for the loan.

When I told him that 80 % of mutual funds do not beat the S&P , he looked surprised that I knew this and agreed with me, but then said that was only for the last 3 years.

Hogwash. The first index funds were created because the vast majority of mutual funds had underperformed the index for the previous decade at that time. I just looked it up (I love the web!) - Vanguard 500 fund was founded August 31, 1976. So I'd look him in the eye and say "What's your source for that? I'm pretty sure most mutual funds underperformed the S&P500 every year for the last 30 years." Then I'd move on to some other advisor. I don't know if he's a lying manipulator or an uninformed buffoon, but I wouldn't need his help either way.
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