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Author: cdr46 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: TMF Money Advisor Date: 9/6/2001 1:13 PM
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Thanks for your kind comments.

However, as I said in my original post, there is nothing wrong with TMF offering this service.

I agree with you 100% that for some people - lazy, too busy, or whatever - it would make sense to pay for advice - assuming that they would then act upon that advice.

Of course people who pay for advice face other hurdles: to name a few -
*they must find an ethical advisor.
http://www.google.com/search?q=%22financial+planners%22+%22Lawsuits%22&sa=Google+Search&cat=&hl=%28null%29
http://www.businessweek.com/1996/31/b348618.htm

*they must find a knowledgeable advisor who will not defraud them
http://www.google.com/search?q=%22financial+planners%22+%22abuse%22&sa=Google+Search&cat=&hl=%28null%29
http://sites.state.pa.us/PA_Exec/Securities/investor/ibulletin/financial.html
"AVOIDING FRAUD: While many honest, skilled people work as financial planners, state enforcement actions suggest that the industry provides "deep cover" for a substantial number of swindlers, con artists and abusive and unethical promoters. Even in the legitimate part of the industry, agents and brokers sometimes use the title "financial planner" to help them sell the products they've always sold"

*they have to afford all of the "needed" products a hired gun recommends.
In my opinion, consumers who pay for advice end up "overpremiumed and underinsured", which means that other crucial financial needs in their life are left unexecuted.

*they will not procrastinate because everything is so complicated.
In my opinion, the financial industry obfuscates the financial planning process as an incredibly complex arena that "requires" professional help. HOGWASH - any consumer that falls for that line of "BS" will be faced with a lifetime of commissions, deferred contingent penalty charges and 12b-1 trailing fees.

A passive investor would be well advised to visit the following sites before paying for advice:
http://www.armchairmillionaire.com/portfolio/bowen.shtml
http://www.fool.com/school/basics/investingbasics002.htm
http://www.coffeehouseinvestor.com
http://www.suzeorman.com/resources/

I would also suggest that some individuals just don't give a darn about there future or their family's future - financial or otherwise.

Example:

There are many books, articles and financial web sites on the Internet that informs consumers: that given the appropriate time horizon and reasonable rate of return that any body can accumulate $1,000,000.

Here are some brain advice "guaranteed" to make "you" a millionaire!

*A current 20 year old pack-a-day smoker ($2.50/pack/per day) could accumulate $1,000.000 by his/her age 63 - assuming he/she lived that long and earned a 12% tax-free or tax-advantaged annual return.

*If parents with a new born child invested just $210.78 per year (that's just .58 cents per day!) and inculcated investment education and training in their child instead of buying every new "toy" they are exposed to - their offspring would have $1,000,000 by his/her age 55 assuming a 12% tax-free or tax-advantaged annual return.

There are "1,000s" of examples that can be shown where consumers can accumulate $1,000,000 if they only applied the basic principle of investing by spending less than they earn.

One more example:

TMF's price for advice of $175.00 per year - inflation ignored - would grow to $1,000,000 at 12% tax-deferred (regular IRA) or tax-free (ROTH IRA) in 57 years! Do I need to point out that one can reach the $1,000,000 goal by investing more and/or by increasing their return by accepting more risk?

cdr46
Learn to earn so you won't get burned
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