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April 1, 1999

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Subject: My lunch with the Wise
Author: dlcasey

It's been bugging me all day. I had lunch today with my financial advisers...nice guys but obviously Wise. Let me go on.

My situation...still working on some debt, so not investing aggressively yet, but I have about $27K in a rollover IRA that is in these Wise guys domain. I also have about $33K in a SEP-IRA which is funded very copiously by my employer. The Wise don't have this under their grip...I haven't let them. A couple of years ago when I rolled the Rollover money, I was not yet Foolish, and let them decide where it went. They chose 5 mutual funds for my money, none of which has touched the market's gains over the year or so since it's been there(though one is fairly close). Today when I was having lunch with them, mainly to discuss some insurance issues, I asked about the rollover IRA. I told them that to me this would be a good little account to "play with"...i.e. try out some stock purchases, etc. and be a wee bit aggressive. They clearly realized I'd been corrupted by the information explosion and quickly moved to thwart any plans I may have had to rule my own roost.

"I should dump these jokers now and roll my Rollover to E*trade or something and do what I want..."

"Well, you know DLC, it's not the fund's growth that's really important, it's your total asset allocation that we're concerned about...you know diversification...we want to keep you at low risk while still experiencing some growth." The other chimed in, "Yes, a lot of my other clients are opting for index funds (eyes rolled), and some are even (gasp) asking to be in individual stocks...you know DLC there's just a lot of sheep who're going to get shorn when the market corrects!" Before I could say, "...and you think the managed funds you have selected are going to be insulated against this correction..." the other fellow hit me with a ploy to get me to roll my SEP-IRA funds into some new fancy schmancy "Capital Vision Account" (because it required a 50K minimum) where there would be computer printouts and recommendations for portfolio changes on a yearly basis that he and I could either take or leave...geez it started to get deep. Now, I'm thinking, I should dump these jokers now and roll my Rollover to E*trade or something and do what I want...I'm ready, but then I got to thinking that if I do this these guys are gonna drag their Wise little feet so dang much on getting all my insurance in order that it won't be worth it because of all the stress I'll encounter...hell the reason I'm having to get new disability insurance is because they didn't do the policy right the first time (didn't allow for any increase in disability coverage amount in the future though they knew I was going to start making 5X my then current earnings in about 2-3 years...)

"I'm feeling a little resentful for being over a barrel in terms of my insurance policies, and feel that I'm a bit at their Wise mercy with my woeful investment holdings at least for now..."

I won't even get into the part about how these guys have pushed for VUL life insurance (and yes, I was ignorant and did it...)

So why did I rant all this? Well, just to purge I guess. I'm feeling a little resentful for being over a barrel in terms of my insurance policies, and feel that I'm a bit at their Wise mercy with my woeful investment holdings at least for now...

Bet your bottom dollar that they won't see my SEP-IRA funds, and when I clear out all my debt they won't see that either...but I guess since I was foolish (little f) a few years back, I'm a bit of a slave to the Wise for a little while longer.

Thanks for listening, and sorry to be so verbose.

Fool On!

DLC