JFOREMAN10[at]houston.rr.com wrote:
- quote -

I suppose your advisor will sell you on the fact that you're guaranteed
to receive at least your original investment after the deposits mature
(10 years). That isn't worth as much as it may sound. I doubt your
advisor will stress that you won't receive the S&P500 dividend yield
(nearly 2%), which is borderline criminal.

Packaging a product like this with a very confusing prospectus and
selling it to unsuspecting clients is sleazy. I'd say that it, despite
coming from an established, well-known firm like Merril Lynch, is
nothing less than a scam.

JFOREMAN10[at]houston.rr.com wrote:
- quote -


I hope it wasn't presented literally as "the return of the S&P 500 index
with no downside potential" - it doesn't look to be that.

Without getting into a convoluted answer, I'd suggest you ask how it is
supposed to fit into your overall portfolio, what the purpose of it is.
Wall Street conjures up some pretty complicated investment products to
meet "needs" that most people never even guessed that they had. Why
would you want the return of the S&P 500 index (minus dividends), with
the liquidity restrictions and less-than-ideal tax treatment of this
product? Pose that question to the advisor of course.

-Tad

In article <3xNQd.9495$911.76[at]fe2.texas.rr.com> ,
<JFOREMAN10[at]houston.rr.com> wrote:

- quote -

Your last word sums it up for me--never, ever invest in something
that you don't understand. If you don't understand it, take a
pass on it. Or find an advisor who can explain it to you, and
show you how it makes more sense than a low expense S&P 500
mutual fund or ETF.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

My advisor is reccommending market participation deposits. Supposedly to
achieve the return of the S&P 500 Index with no downside potential. I am
just wondering what the catch is. I read the prospectus
(http://eln.ml.com/docs/MPDs/February/FebAvgPrelim.pdf) but it is rather
confusing.


Thanks in advance,