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  1. How can I find out more about a particular financial firm?
  2. How and where can I find the best financial adviser for the smallest cost?
  3. My broker has asked to have discretion over my account. What does that mean?
  4. What are the most common abuses by brokers?
  5. What's the biggest mistake investors make?
  1. How can I find out more about a particular financial firm?
    Check the business section of your newspaper. If the firm is publicly traded (bought and sold on a stock exchange), you will find it listed on the stock pages. You may request the Standard and Poor's (S&P) report on the company from a broker. The S&P report is know as a tear sheet. This report will provide you with the company's rating and pertinent financial information. Even if it's not a publicly traded company, any reputable firm will give you its annual report upon request. This will tell you the current financial condition and some historical background.
     
  2. How and where can I find the best financial adviser for the smallest cost?
    You will have to shop around just the way you shop for anything else, just like a new car. Brokerage products, such as mutual funds, limited partnerships, insurance products, and unit investment trusts, are basically the same from firm to firm. So ask the cost before you buy.

    Friends and acquaintances are a great source of referrals when looking for a financial adviser. We all love to share good news, and you will get a good inside track on who's happy and who's not by asking around. Another great place to check for referrals is with your lawyer and account, who have reason to work on a regular basis with financial professionals.
     
  3. My broker has asked to have discretion over my account. What does that mean?
    Discretion is the granting of power to your financial adviser to buy and sell securities in your account without your specific permission for each transaction. We do not recommend that you grant discretionary powers to your financial adviser. It is too great a temptation for abuse when you grant such power. Your financial adviser should have to call you before any changes are made in your portfolio so that you can both discuss the whys and wherefores. The final decision to buy or sell something should always be yours.
     
  4. What are the most common abuses by brokers?
    Since no one can be expected to care more about your account than you , watch out for these two common abuses:
     
    1. Churning: Excessive activity in your account for the purpose of generating commissions. Most churning occurs where a broker has discretion to trade the account. In such cases, it is not necessary that the broker receive prior approval from the client for completing a transaction.
       
    2. Unauthorized trading: Transactions that take place without your permission.
  5. What's the biggest mistake investors make?
    Most investors allow themselves to feel intimidated by the complex process and don't object when there is a deviation from their wishes. For example, if you sell a stock and end up with less money from the sale than you expected, ask why! Remember that it's your money and the adviser works for you.

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   Always keep in mind to:
  1. Spend less than you earn! People who spend every penny they make usually end up going broke.......
  2. Take enough risk on the money you save! Playing safe by putting your money under the mattress or in a savings account will not make you wealthy..

Remember that..... Fully one-fifth of humanity, some 1.3 billion people, struggles to survive on less than $1 per day. About 40% of humanity survives on less than $2 per day. More than a billion people around the world will go to bed hungry tonight. Life expectancy in some 32 countries is less than 40 years. If you have a few extra dollars in your pocket (you don't have to be a millionaire to make a difference), please share some of your financial good fortune with others who are in great need.


Think About It...  Being in the 'now' brings a freedom, unlike living in the past or in the future, which is a kind of imprisonment. This isn't a kind of a denial where you pretend life doesn't have problems. Life is full of problems, but most of those stresses and failures are reliving old hurts or worrying about future concerns. -- Carl Honore

When you 're diagnosed with cancer, you start to bargain with God: "Let me get through this, and I'll take better care of myself. I'll get my priorities in order. I'll learn to live every day to the fullest." Isn't it sad that you have to get sick before giving yourself permission to live life to the fullest? -- Robert Schimmel Look at Life in different & Positive ways