Friday, April 25, 2008

Here's the problem........

Commission based stockbrokers need "velocity" of clients assets. As in the infamous words of the friend who hired me in the securities business way back in 1982, brokers need to "make the book sing". The hundreds of millions of auction-rate securities that duped retail investors into thinking they were safe, after being told by their brokers that they were "safe" shows precisely how Wall Street needs to operate. You see, cash is king and often enough as a money manager, doing absolutley nothing with a clients assets except sit in a cash fund or money-market fund is the proper and prudent course of action.

Unfortunately brokers need to twirl some commissions to pay THEIR bills. Very seldom will a broker ever recommend a client go to cash with a huge percentage of a clients assets because cash doesn't pay commissions. If you are tired of being "twirled" for commissions give us a call.

It may be the smartest call you will ever make for your retirement money.

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