The key is advice you’re getting. And fact is that many brokerage houses and Registered Representatives tend to be more interested in their profits than yours. Their investment advice is generally centered around Buy and Hold or dollar cost averaging and similar financially questionable recommendations. Hardly ever will you receive advice about when and why you should exit market, either because of accumulated profits or to limit your losses. Getting out of market is simply not in their best interest, though it may be in yours.

I must confess that, as a fee based advisor, I am somewhat biased and I prefer no load funds for my clients. I believe that this type of arrangement is best for all parties involved. It allows me to avoid any conflict of interest and to work exclusively for my clients’ financial benefit. And better my clients do, better I do.

I am able to choose no load funds and make buy decisions solely on basis of my mutual fund trend tracking methodology. Following its signals, I can get clients into market or out of it as often as is necessary to maximize profit or protect assets. And because I work with no load funds, other than a very occasional short term redemption fee, there are no transaction charges no matter how many times we move into or out of market.

If market conditions dictate that we stand aside in a money market for an extended time in order to avoid a bear market (as was case from 10/13/2000 to 4/28/2003), I can advise that because it is in best interest of my client. I am always thinking about what will benefit my client, not worrying about lost commissions. (Please see my article “How we eluded Bear in 2000” at http://www.successful-investment.com/articles12.htm).

Bottom line: Load fund vs. No Load mutual fund shouldn’t be issue. Having a methodical plan and reliable advice as to when to buy and when to sell is far more important and will help you to secure a prosperous financial future.

© by Ulli G. Niemann

This is no different than letting a newly graduated medical student with a fresh MD behind his name perform heart surgery. Or, hiring a new MBA grad to Chief Financial Officer of a Fortune 500 company. Yet financial services industry allows someone to get a license (after a fairly short course) and to immediately start making incredibly important and far reaching financial decisions for anyone he or she can sell their service to.

This is a worrisome trend in this industry. A CPA friend confirmed that he has been approached many times by firms wanting him to offer investment services.

Why? It’s easy money! Accountants and tax professionals have a great business base. They are in a unique position of trust, because of information their clients disclose to them. Whether they are employed by a company or they maintain an individual practice, there is probably no other person (other than your spouse) who knows as many intimate details of your financial life as your accountant ax preparer.

To abuse this trust for personal gain—no matter how noble motive may appear—is a total conflict of interest and a huge betrayal.

The bear market of 2000 has shown that investing must be a disciplined endeavor. Even most professionals have failed to recognize this. What busy accountant, in middle of tax season, can put necessary time and attention to a volatile investment market that may require action at a moment's notice?

As for Bob, he’s still with his accountant, and in same investments that brought his portfolio down. He’s hoping for a miracle recovery. As of this writing, stock market is engaged in something of an upswing and Bob, I'm sure, is getting his hopes up that he will recover some of his losses. However, I shudder to think that this rally may come to an end and bear market resumes. Where will Bob be then?

At 58 years old Bob is still playing Russian roulette with his retirement. He's apparently unable to make a decision to move to someone who has ability to make sense of market trends and discipline to follow signals they communicate. This is a decision that will have a profound affect on his financial future—and will determine whether his story has a happy or sad ending.