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From: jck@uvacs.UUCP
Newsgroups: net.invest
Subject: Re: Looking for info on "financial planning"
Message-ID: <103@uvacs.UUCP>
Date: Mon, 20-Jan-86 09:16:46 EST
Article-I.D.: uvacs.103
Posted: Mon Jan 20 09:16:46 1986
Date-Received: Thu, 23-Jan-86 21:03:22 EST
References: <1080@druxo.UUCP>
Organization: U.Va. CS dept.  Charlottesville, VA
Lines: 38

> 
> 	Having a growing family and a house (i.e. mortgage) in suburbia sort
> 	of changes ones perspective on what to do with "spare" dollars.
> 
> 	Recently I've been looking into "financial planning"
> 	and "financial planners" to attempt to prepare for the
> 	inevitable (don't ask what is inevitable, but something must be).
>                         .......... 
> 					rob mitchell
> 					druxo!rob

Sometime ago I asked the net if anybody had any experience with financial
advice from IDS American Express.   I received no replies but I went ahead
with the IDS analysis anyway.   Since Rob Mitchell is now asking for comment
on this general topic, I thought the net might be interested in a brief summary
of my experience.
First, it cost $250 plus lots of time collecting records.   The results, a
listing from a very naive analysis program - I mean really naive.   The problem
is that they base their analysis on numeric ratings of your assets and NEEDS.
Now in response to the question "What income would you like for your wife if
you die?" many people would respond "the same as now", and that is what gets
entered.   The results for me was to recommend $500,000 in life insurance....
The process of financial analysis needs some brains put into it not just
checking off boxes in a questionnaire.
None of their recommendations were completely off the wall except the life
insurance but then most of the advice was obvious to anybody with a brain, a
calculator, and a few hours of time.
Was it worth the price?   Well yes because (a) its tax deductable, (b) it made
me collect records, and do some planning that I would not otherwise have done,
and (c) I have not finished talking to them, and with my brains doing the
planning their knowledge of financial instruments, it might actually be
worthwhile.   My advice - go to the library and read everything you can find
on planning, then make your own analysis for each aspect of your financial
affairs that matters using a sensible estimate of inflation and return on
investments.
                                                         -- John Knight
                                                            CS Univ of Virginia
                                                            ..!uvacs!jck