HW "Skip" Weldon wrote:
- quote -

Sounds like things are different than here in CA. A lot of the rules
changed recently when we transitioned to online registration through Web
IARD. Part of the rationale was "coordinating with other states", the
idea that they wanted to be uniform & follow the overall scheme outlined
by NASAA, where everyone registers online thru Web IARD instead of
filing paper forms (at lesat for Part I, they don't have Part II online
yet).

But of course every state passes its own laws & regs so the specifics
end up different. Do you register through Web IARD? I was under the
impression that anyone could look up their state-reg advisor there but
it sounds like that may be different in SC?

-Tad

While I think from all that is posted that the VUL is a bad idea, the DI
insurance shouldn't be swept out in the same motion.

If you can accumulate enough assets to effectively self insure yourself in
the event of a disability such as a stroke, then don't bother with it.

But given the service you've gotten here, I'd shop it around carefully.

"Paul Michael Brown" <pmb[at]his.com> wrote in message
newsmb-1410040132060001[at]max1ka-3.his.com...
- quote -

On Tue, 12 Oct 2004 12:16:03 CST, Tad Borek <borekfm[at]pacbell.netwrote:


- quote -

The Investment Advisers Supervision Coordination Act, P.L. 104-290,
authorized the SEC to cancel the registration of any IA that did not
meet criteria for SEC registration that was ammended 7/8/97. After
that date only certain IAs were eligible to maintain their SEC
registration. There were several such criteria, one of which referred
to having assets under management of $25 million or more.

All of those IAs in 1997 who did not qualify had to terminate their
SEC registrations and come under State control.

At that time, I checked with our State and there was no requirement
for State IAs to distribute Part II of ADV to clients. Again, State
rules on this may vary.

As far as I know, none of this has changed. On the other hand, I keep
my copy of the old ADV handy just in case. <grin


-HW "Skip" Weldon
Columbia, SC

- quote -

This is a good point. I think many investors try so hard to avoid or defer
taxes that they invest in things that are not suitable. Like tax-deferred
annuities, variable universal life insurance, etc.

- quote -

Another good point.

I like broadly diversified equity index funds -- especially for somebody
like the original poster who is: (a) young enough to tolerate the
volatility, and (b) looking to diversify a portfolio that is currently
heavy with investments in real property. I would recommend he put 80
percent of the money he plans to invest in a Wilshire 5000 index fund, and
20 percent in an index fund that tracks the Europe, Australasia, Far East
(EAFE) index. All the major mutual fund companies offers such funds. I'm a
Vanguard customer because of their low annual fees.

These are index funds, so they won't generate a lot of short term capital
gains distributions that are taxable as ordinary income. Moreover, the
Wilshire 5000 has a dividend yield of about 1.45 percent, which isn't too
shabby. (Especially considering the favorable 15 percent tax treatment of
dividends.) The EAFE fund won't generate dividends, but it will: (a)
diversify the original poster's equity holdings internationally, and (b)
do better when the value of the dollar is falling . With an 80/20 mix,
the original poster will own just about every stock on the face of the
planet that's worth owning.

He should dollar cost average into these funds by investing a fixed amount
once or twice per month. If he avoids selling any of his shares, his tax
bill will be limited to the tiny amount he owes on the distributions. And
if he holds any shares longer than a year before he sells, he'll only pay
the long term capital gains rate -- which is a modest 15 percent.

Finally, as the previous poster noted, investing in a taxable account
gives you all kinds of options to use the money later on. Sure, it's great
to let it grow for decades. But the original poster is a young man and
it's entirely possible he'll need the money sooner than that to pay for a
engagement ring, honeymoon, house down payment, or perhaps seed capital to
start his own business. Having a substantial amount set aside in a taxable
account means he can face his future without going into debt and that is
truly smart.

In summary: Why pay big commissions to some sales droid who's trying to
force a square peg into a round hole? Forget about the VUL and the
disability insurance. Instead, consider equity index funds.

- quote -

Not sure what single family attached homes are

Are they like duplexes?

- quote -

Same here Daniel. Im 46 and at time don't know what I
"want"

But my hats off to you for having the vision to start
investing and acquiring assets NOW at your age. Cause
of al the factors involved time is the biggest and most
important one.

Im 46 and don't have the assets you have and only wish
Id had the vision that you have at your age.

So..... thanks for answering my somewhat "nosey"
questions.... but I was just curious as to how you have
acquired such a great start

Again..... KEEP up the great work!

- quote -

Oh sure.... I agree!!

I was just curious how this young man did it. What his
circumstances in life are.

I wish Id had his "vision" at his age. <sigh

HW "Skip" Weldon wrote:
- quote -

Skip,
I don't know the rules in your state but if you follow the uniform rules
(and I thought all states did by now, with only minor variations), your
advisors should have a Form ADV filed with either your state or the SEC
or both. ADV Part I is filed online now, and you can look any firm up by
following the links on www.sec.gov that allow you to research brokers &
advisers. That system includes both SEC and state-registered investment
advisers. Part II is in currently still in paper form and is the part we
need to hand to all clients under the "brochure rule."

You don't need to have any assets under management to trigger
registration as an investment advisor. The uniform law is written
broadly to include any advice related to investments that you charge
fees for. Some people can claim exemptions if the work relates to
another license (accountants, lawyers, stockbrokers, insurance agents)
but those exemptions are pretty narrow. If someone is doing financial
planning that isn't completely tied to that license (eg a tax law
opinion done by a lawyer) and they charge fees they need to be an RIA, a
registered investment advisor.

"Fee based" usually means someone who earns both fees and commissions,
and who is licensed accordingly.

OK that's enough legalese!

-Tad

On Mon, 11 Oct 2004 18:57:56 CST, "BMS" <mcfarland[at]yahoo.com> wrote:


- quote -

Fee-only financial planning consultants (hourly rate or flat rate) are
not required to register with SEC. Accordingly, they do not have ADVs.
As for State registration, rules vary.

Money Managers do have an assets-under-management requirement for SEC
registration. As for State registration, rules vary.

As for "fee-based", I am not sure what is meant. To me it refers to
someone who is doing more than one thing. For example, he/she is both
selling on commission and, separately, doing other things for a fee.


-HW "Skip" Weldon
Columbia, SC

Tad Borek <borekfm[at]pacbell.net> wrote in message news:<f3zad.11598$nj.2340[at]newssvr13.news.prodigy.com> ...
- quote -

You guessed right, and I only choose them because I knew the advisor working there

"BMS" <mcfarland[at]yahoo.com> wrote in message news:<WYyad.159725$wV.98780[at]attbi_s54> ...
- quote -


I do remember my planner showing me something along those lines,
stating they may receive commission from certain transactions or
opening accounts, I should have paid more attention to it.

I am in New Jersey, very close to Philadelphia

- quote -


Just wanted to comment that "just" high school may be enough, depending on
the person. Remember, Bill Gates dropped out of college in his freshman
year. I think Michael Dell did also.

Elizabeth Richardson

me[at]privacy.net wrote in message news:<uuqjm0l9qia25ug7cn8cs3446po192lek9[at]4ax.com> ...
- quote -

in lower income areas, the market rent through section 8 gives me
about $300 month income after my PITI is paid. I was going to buy 3-5
more, but I don't know if I can handle them without a property
manager, I figured i'd give it a year or so and see if these 2 go
well.

- quote -

I am a mortgage processor for one of the biggest lenders
around, so for me to obtain financing it's really not a challenge,
plus after doing this for years it only made sense to me to buy a home
as soon as possible.

- quote -

I went to school on and off, but never really accomplished
anything, I just wasn't motivated enough, I never knew what I wanted
to do. I still don't! Hehe

I thought a fee based consultant that had over 25 million in assets had to
register with the SEC regardless of the state rule, SC different?

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
news:mhqlm0pni8g806odbic6i30smujsnl92uq[at]4ax.com...
- quote -

Dan,
You would not want to lock yourself into a VUL or an annuity at our age.
Your next option should be a taxable brokerage account: Invest in
Individual stocks held over one year (unless you see a tremendous gain),
Low-turnover stock funds and Short/Intermediate term ind. muni’s or muni
funds. This way your money is readily available for potential future
investments outside the account if they surface- such as: more investment
real estate, a start-up business, paying off some of the 3 mortgages you
currently hold and etc. Suggestion: Do your own DD, and start to manage
your own investments.

Dan M.

On Mon, 11 Oct 2004 13:47:46 CST, "BMS" <mcfarland[at]yahoo.com> wrote:


- quote -

The rules about ADVs vary by State. In my State, fee-only consultants
do not have ADVs because they are not registered with SEC.

-HW "Skip" Weldon
Columbia, SC

Talk with people who are successful and ask them, get names from your CPA or
lawyer. They often work with a variety and have seen the good, the bad and
the ugly.

Then interview them, ask for their ADV, that explains how they make their
money. If they hem and haw about not having an ADV or it's not worth looking
at, probably somebody you don't want to waste time with.

What part of the country are you in?

- quote -

Daniel wrote:
- quote -

Daniel,
Just a WAG but is this a name also associated with credit cards by chance?

I agree with the other post, that you apparently aren't talking to a
financial advisor, but rather a sales representative of an
insurance-focused firm. If you go in saying that you have extra money to
invest, and end up with a plan for VUL and DI without any investing
alongside that - and especially, if you're 23 and not a
very-high-bracket earner - something's up. You might end up with VUL but
it's not an investment - it's life insurance. For most people it's way
down on the list, frankly, for someone who has only a 401k Roth and
investment real property.

If you're looking for a fee-based planner the first thing I'd suggest is
asking around for a referral - that'll always save you some steps.
Failing that you might try to find one in your area through:
http://www.fpanet.org/

That group administers the CFP (Certified Financial Planner) trademark
and you can find a list of them on the site. Be aware that some CFPs
come from a pure insurance background, others work at brokerage firms,
others are independent, so the CFP mark alone won't necessarily find you
a different answer. You should check out a couple of firms to see which
one's approach you like the best.

-Tad
(disclosure: I'm an investment advisor, though not a CFP)

dan.gosser[at]comcast.net (Daniel) wrote:

- quote -

With capital gains and dividends being taxed at 15% currently, "tax free" is not
as important as it used to be. Investing in taxable, but tax efficient vehicles
such as low cost index funds or explicitly tax managed mutual funds can have a
net return after taxes as good or better than annuities. They are also more
flexible, there are no restrictions on how or when you can use the money, either
for a new car, house, sabatical or whatever.

- quote -

I'm self employed and had no trouble buying disability insurance. At your age,
I think it is very important to have (until you have enough assets that you
don't need to work). But if you have it from your employer, you're covered.

- quote -

Diversity in investments is very important. I had a friend who was doing very
well in real estate. He used essentially the same strategy as you are. He
filed for bankrupcy when the Texas real estate market collapsed in the 80's.

-- Doug

- quote -

What type of properties do u have?

Duplex for rentals maybe?