WHAT WARNING signs indicate that your broker or adviser is not telling the whole truth? Working Woman warns to watch for what it calls the "four biggest lies: "
"We can take care of all your financial needs -- insurance, accounting, legal, etc. -- right here." The article says, "One-stop shopping seems convenient but it's not in your best interest. You need objective advice from several unbiased sources."
"You must move all your money to me before we can start working together." Not true, says the article. "Shifting investments to a new adviser often triggers recommendations that you sell everything and start all over. But this assumes that nothing in your portfolio is worth keeping. Also, beware of taxes and commissions when you make major changes."
"We really don't need to meet regularly." That's just not true, says the article. "Who needs regular meetings? You do. No financial plan, however well thought-out, should remain on autopilot forever."
"Don't even try to understand this." The article says, "What a put-down! How presumptuous! Any broker who says this is lazy, dishonest or both. A broker should never push products he or she feels you can't grasp. Your next move: switch brokers."
CAPSULE CORNER: "For high-tax bracket investors, capital gains are now taxed nearly 50 percent less than dividend and interest income. Carefully consider that before making investment decisions." (Tax Hotline.)
"Your career provides your wealth. You'll generally make far more money from your business or profession than from the stock market." (Dick Davis Digest.)
"There's no `free lunch,' but locking in a low-risk utility stock that yields 5-6 percent and maybe rises 20-40 percent in a takeover bid is as close as you'll get." (Charles LaLoggia, Potomac, investment adviser.)
Pub Date: 3/12/99
