Comments for The Finance Deal

Comment on Which financial institution is currently the best for retirement accounts? by gosh137

gosh137 — Mon, 24 Nov 2008 16:33:14 +0000

T. Rowe Price has many great mutual funds and will allow you to start with only $50 if you agree to have at least $50 (The lowest minimum I have found) electronically taken out of your bank account each and every month until you reach their usual minimum of $2500 ($1000 for IRAs), so T. Rowe will gladly accept your $200 per month.

Comment on What role did the Japanese Financial Crisis of the early ’90s play in the subsequent E.Asian financial crisis? by Jurij-EU

Jurij-EU — Mon, 24 Nov 2008 12:10:19 +0000

I think it’s one of causes in chain for consequent crisis, though not so heavy-weighted.

Comment on What Percentage Of Financial Planners Invest In The Funds They Recommend? by MVD34

MVD34 — Mon, 24 Nov 2008 06:10:38 +0000

While I think you are on the right track (FP’s would buy what they are selling only if it was good), I would recommend that you slice open the pie and inspect the ingredients carefully in this situation.

Although I rather doubt the number is that high…except maybe on the insurance side, where the majority of the products are simply too awful for a knowledge person to even consider…there are good reasons for the phenomenon as well as bad.

Good — in addition to what others already mentioned — sometimes the adviser and the client have assets that qualify them for different funds. DFA funds are a good example. $10k grand gets you a no fee, low cost index fund at Vanguard, but it can take a million bucks or more to get everything you want at DFA. DFA is better, in my opinion, but Suzy Sixpack doesn’t really have that option. Bob the FP might.

Comment on How can I get financial help to buy a home in Florda so I can relocate my family and continue ministry work? by estielmo

estielmo — Sun, 23 Nov 2008 14:07:45 +0000

Ask the organization you will be working for/with for help.

Comment on What Percentage Of Financial Planners Invest In The Funds They Recommend? by Scott K

Scott K — Sun, 23 Nov 2008 07:54:55 +0000

I think this would be a hard figure to keep track of since every client has a different risk tolerance. I would say who cares if they are investing in what they are recommending as long as you like the stocks or mutual funds they are picking. No one will care more about your money than you so at least do a little research on the stocks or mutual funds they like. If you are questioning the pick, then ask them why they like it and tell them why you are questioning it.

Comment on What Percentage Of Financial Planners Invest In The Funds They Recommend? by Kiker

Kiker — Sat, 22 Nov 2008 19:14:25 +0000

The number fluctuates. Use to be a FA. I did not invest in Funds, as my Risk Tolerance Philosophy is highly aggressive. However, we were required to operate within the Risk Philosophy of the client, not ourselves. FP/FAs are NOT hedge fund managers, though that would be a lot of fun.
The people I worked with were no where near as risky as I was, so they all invested in Funds.
So, i think the stat is largely a moot point.
FA/FPs (same thing) are not allowed to dominate your investments. They are strictly monitored about telling you to sell something while they are buying it….as the SEC believes that if it was so important for you to sell, why did they buy? This is pretty heavily monitored, especially if they buy after you sell, or vice versa, as your contribution could have artifically adjusted the market, allowing them to enter at a more desired price. Its not prohibitted, cause your risk tolerance may have led to the sell or buy decision, whereas the FAs risk tolerance may have qued a buy.

I encourage everyone to learn about investing on their own. Why pay someone that only sorta knows you. No one knows your values and your money more than you. So jump into the fray for yourself, cause you will likely do far better than an expensive FA who has 300 other clients to contend with as well.

Comment on What Percentage Of Financial Planners Invest In The Funds They Recommend? by NetAdvisor

NetAdvisor — Sat, 22 Nov 2008 09:02:00 +0000

I don’t know where these stats came from. But you need to know that everyone has different risk tolerance, time horizons, investment objectives, age levels, and of course, various amount of money to invest.

It would not be suitable for a financial planner or broker to tell you to just buy what he or she is buying. It may be risky given your situation.

I don’t think one can verify accurate stats on your question.

Comment on How Financial Crisis affected small business owner? What are you going to do to through this difficulty? by Mac

Mac — Sat, 22 Nov 2008 05:24:35 +0000

i suggest you don’t fire anybody. It will not affect your business, better make meeting with your employees & partner to solve it. Make cost cutting plans, and tell them to do hard work and give extra time and do more work, so that company can face these problem.

Comment on What determines whether a financial instrument is classified as a money market instrument? by gosh137

gosh137 — Sat, 22 Nov 2008 03:55:32 +0000

Money market instruments must invest in government or commercial bonds/notes/paper with a due date of 90 days or less.

Comment on What determines whether a financial instrument is classified as a money market instrument? by Yardbird

Yardbird — Fri, 21 Nov 2008 13:24:44 +0000

The money market fund or account manager determines what kind of assets they consider worthy. Read the prospectus for the fund or account. In addition, the fund or account manager has some flexibility in how they implement the fund or account guidelines. There may be some federal standards too. Not sure about that.

Buyer Beware!

The “gold standard” for money market funds is Vanguard’s treasury MM fund, which invests entirely in treasury bonds.