Brice Thompson, AWMA, AAMS's Answers and Guides

I completely agree with Mr. Larsen. There is a growing trend of advisors(broker/dealers and RIA's) that work out of their homes. The importance of where your advisors works begins and ends with your comfort level. Do not be afraid to ask. I can see how advice-only advisors would not necessarily need a traditional office, but it does bring in questions of oversight and accountability. It is neither good nor bad. It is just what you, as the client, are comfortable with. The information age is upon us and I know many advisors who only meet via phone, email and Skype video conferencing and theire clients love it.

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Wow, Ethan! Why don't you ask a HARD question?!?!? I will give you my best answer. 1) Who knows for sure, but quite a bit of the down-side domestically has already been "baked in", apparently. 2) Spain is likely a bigger driver of uncertainty right now, but Greece is keeping this issue off of the front page. 3) It is possible that the Euro-Debt Crisis is worse than we think and that would be a drag on US markets, overall. 4) I don't think this a tradeable event(at least I'm not good enough to do it). 5) The good news is that these events may be the wake-up call our country needs to dramatically change this country's trend toward bigger government, and that change would be a hugely important positive stimulus to the equity markets. In summary, I'd advise against trying to trade these events and manage to your needs. Look for strong balance sheets, positive dividend histories, limited European exposure and be "tough". Also, I would suggest finding a few different sources for information to educate yourself. Do not depend on the network news agenies soley when making your decisions. I hope this helps you.

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Hi Dale, That seems to be a very important questions these days. The reason it is "important", in my opinion, is because of Marketing. Two things to remember: 1) You get what you pay for. 2) People do what they are compensated to do. The primary reason for the emphasis on "low fees" is that "low fee fund providers" make money when people choose to buy their fund over another. These low fee funds do not pay commissions to the licenses broker(who is expected to advise you) therefore you are not getting guidance because you aren't paying for it. This is fine for highly educated, experienced investors. There is no need in paying for what you do not need. On the other hand, maybe you do. I am in favor of using low cost investment and hiring an advisor that works for you on a transparent, tangible-fee basis. How much is too much? You decide based on what your needs are. Do not be fooled into thinking low cost is better just because the people that sell "low fee" investment tell you they are better. Concentrate on "good value versus bad value" not "cheap versus expensive". Using a Fee-based advisor allows you to know and control exactly what you are paying for based on what your needs are. If your situation requires a lot resources, you will pay more(I charge 2% annually, but use stocks and low expense ETF's and do not charge commissions). If you require less, you should pay less(I do not charge a fee to simply hold assets). To summarize, there are threedesirable components of asset management: Performance, Service, and Low Cost. You can only pick two and have them consistantly delivered. "Low Fees" are not everything.

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Hi Edward, How do you define "high fees"? Also, you do have several options for saving for retirement. You can open up tradtitional IRA or a Roth IRA, a tx-deferred annuity, savings bonds, a brokerage account. It sounds like you have an ax to grind, but aren't sure what to do with it once it is sharp. In other words, do not fall for the prevailing attitudes of negativity. America and capitalism have improved the standard of living for the entire word and created more wealth for more people than any other system. China repesents an oppurtunity to the exent that they recognize contract law and personal property(which they currently do not). Cheer up!

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You most likely do not. The current Arthur Anderson plan filed a Form 5500 that lists only a "Defined Contribution Plan". A pension would be listed as a "Defined Benefits Plan". Many companies have done away with pensions and rolled the required portions into 401(k)/Profit Sharing Plans into the accounts of the employees. To be certain, you can call the Plan Administration Dept at (630) 444-3760. hide

That is great information, but a few key specifics are missing. Your emergency fund should be 6-9 months of total monthly expenses, so if it around $45,000 it should be fine. Secondly, is the pension amount an aggregate for both of you, including Social Security? $50,000 each? Not including Social Security? But I personally believe the short answer you are looking for is Long-Term Care Insurance. I would suggest a single premium option(Lincoln MoneyGuard, for example). These type of products help protect your retirement resources from the biggest risk you face, but do not drain your liquidity(if you opt for the "guaranteed return of premium" option.

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Moody's is a company that investigates and rates the credit worthiness of companies, similar to services provided by Standard and Poor's and Fitch. It analyzes the company's financials and gives it a grade based on how likely the company is to pay it's obligations. They have 21 levels with Aaa being the best/safest rating all the way down to the worst level being C. The top 10 levels are considered "investment grade" or safe enough that conservative investors like Pension Funds can invest in Baa3 or better and resonably expect the company to be solvent. Below that is considered "speculative", in bonds it is sometimes called "junk bonds". A unit of Morgan Stanley, their fixed-income trading unit, is now rated Baa2 which is still levels above "junk" status, but 3 levels lower than they were. Essentially, it will just make it a little harder and more expensive for that unit to do business for a while. See? Easy stuff!

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Most 401(k) companies offer online access with the ability to request withdrawals, but you can always call the customer support number on your statements to guide you. Most Human Resources Departments can help you get set up with access, direct deposit, and tax withholdings options well before you retire. I would suggest starting there.

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You should always START your decision making tree at the end and work backwards. Therefore, your first question should be "what am I trying to accomplish?" and clearly define your needs, expectations and timeline.
GOLD like everything that you can spend money is great and terrible depending on what you are trying to do in the same way that a screwdriver is a great tool unless you need to drive a nail or cut a board. You could have just as easily asked "Is penicillin a good drug?". If you have an infection: YES. If you are allergic: NO. If you have a broken arm: NOT WHAT YOU NEED, BUT NEITHER GOOD NOR BAD. All of the answers given have merit, but you will always be more successful if you clearly define what "success" means to you. That is hard for investors sometimes because they do not know where to start. Start at the end.

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