Tài liệu Money _ The 8 habits of winning investors 5 pdf

In most states, you'll probably get the best rates on the indi- vidual market, where your premiums don’t have to cover the risks of others.. ‘The E*TRADE FINANCIAL fami of companies prov

Fun Headquartered and

manufactured in Toledo, Ohio

That's right, Toledo, Ohio, That's where the original Jeep, brand vehicles were

‘manufactured, Just as thousands are today And as anyone lucky enough to have had an adventure in one will attest, a Jeep 4x4 Is more than the sum of Its parts,

or even Its performance A Jeep machine Is, In fact, a fun machine That's the approach we take to bullding

‘every model, from the trall-hardened Wrangler Rubicon to the new street-smart Compass We don’t see an electronic front sway bar disconnect We see the passengers’ eyes widening as It negotiates a serles of rhino- sized boulders It's not so much a sealed central venting system It's the sound of giddy laughter as the mud splashes against the windshield Naturally, a 95.4-Inch wheelbase Is the footprint of fun And of course the sheer unapologetic joys of an available 458-watt, 9-speaker sound system are self-evident It didn’t start out this way,

no slr = or more appropriately, “Yes, sir, Mr Chief of Infantry, sitt” In 1940, the call went out from the Army for

a reconnalssance vehicle with, among other specs, a driving front axle with 2-speed transfer case (Including provisions for disengaging the front axle drive), a body of rectangular design with a folding windshield and

8 bucket seats, means for towing, a wheelbase of 80; and approach

‘and departure angles of 45 and 40 degrees respectively Plans

Were drawn up, designs were approved and prototypes were

bullt and tested And tested, and tested, and

tested The result was a milestone

of modem engineering, and its

DNA Is evident in the Jeep

vehicles we still proudly

roll out today Clearly,

the designers knew

What they were doing

In crafting the perfect

utility workhorse What

they didn’t realize is that they

were also Inventing the utility,

of fun, and that for every Jeep

vehicle that served, thousands more

‘would go on in the noble pursult of - you guessed

It fun, Over the years, we've learned that different kinds of

fun require different kinds of equipment One person's fun Involves

heavy-duty steel rock rails and a winch, while another's might call

for water-and stain-shedding Interior fabric One person's floorboard drain

plugs are another person's swing-down liftgate speakers And heaven knows we've had fun with paint packages

‘over the decades (visit the history section at Jeep.com) But one thing will always remain constant, and that Is the core purpose of a Jeep vehicle - to be, from the ground up, a dirt-throwing, creek- splashing, snow-gripping, hill-detying, pothole-shrugging, road-embracing, pink inner-tube toting, story-collecting fun machine There’s one waiting for you right now, Its headlights gazing out on both sides of a trademark seven-siot grille, Just waiting to play All It wants Is for you to show up, climb In and tum the key Jeep.com

Have fun out there, Jeep

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but you won't enjoy the considerable subsidy you probably get

from your employer Brace yourself: The average employer-

sponsored plan costs $11,480 annually for a family.) If you're

still uninsured when the 18 months are up, act fast to get an

individual policy—a federal law called HIPAA guarantees you

access to coverage without exclusions if you apply within 63

days of losing COBRA

Before you start hunting for a policy, look back at the past year

of your health care to determine what you need Inevitably,

the more extensive the coverage and the lower the deductible,

the higher the premium For the kind of low-deductible

comprehensive family policy you'd get through a job, for

example, you'd pay $950 a month or more Expensive as that

could be the most cost-effective option if you need

regular care and prefer paying up front

Ifyour family is fairly healthy, though, a high-deductible

health plan might be better, since premiums can run about

(60% lower Pick a qualifying plan—which will have a minimum

family deductible of $2,200 and a maximum out of pocket of

$11,000 in 2007—and you can save for those doctor bills in a

tax-advantaged health savings account (HSA) Families are

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whatever you don’t spend in agiven year can roll over tax-free into the next Still, if you choose this option, you want to be sure you'll be able to set aside funds up to the deductible

In most states, you'll probably get the best rates on the indi- vidual market, where your premiums don’t have to cover the risks of others Go to ehealthinsurance.com to shop your options Also consult with a handful of insurance brokers (find one in your area at nahu.org) Each one may have different companies and policies to offer you

Already missed the 63-day window to getting an individual policy without exclusions? Start by checking to see if an

industry group or a professional organization in your field

has negotiated a plan with guaranteed coverage The

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Freelancers Union, for example, offers policies to members in

New York regardless of health, and ata 40% discount to

typical premiums in the individual market, according to the

organization's executive director Not every organization will

offer you a break on rates, however As affiliation groups

become magnets for people too ill to find policies elsewhere,

more insurers have stopped writing coverage Those that

remain may well charge more t you’

Other options: Ifyou own a small business, you may be able to

find on your own

establish a group plan with as few as one employee (who could

even be you) Again, this is mainly a way to get around rejection

for pre-existi

that are not often covered under individual plans With such a

small pool, you probably won't find premit

in the individual market Many states also have state-sponsored

high-risk pools find them at naschiporg) to help cover the “unin:

surabley" but they run up to twice as much as individual plans

xg conditions or to get benefits such as maternity

s much lower than

If You Have No Other Option:

What if you can’t get covered at all or can't afford it? You may

atleast be able to protect your kids Some states expanded

the State Children’s Health Insurance Program (SCHIP), a

partner program of Medicaid, to allow middle-income

families to buy comprehensive, guaranteed coverage for their

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children (Partially funded with federal dollars, the program's budget is under debate in Congress, butit remains available

for now.) Otherwise, talk with your doctors about your pre- dicament Many are empathetic about h lth insurance costs

and are therefore willing to negotiate Or find clinies offering low-cost care at bphe-hrsa.gov For pre riptions, some pharmaceutical companies offer assistance; see rxa and needymeds.com, Many hospitals offer reduced rates or

financial assistance,

org rch for new insurance

As for the Brennans, a frustrating se finally had a solution Because of Sarah’s condition, they were unable to find an affordable family poliey in the individual market, and their trade group didn’t offer a group policy

Deciding that they'd rather pay a high deductible than high premiums, they rejected a small business policy, which would have run $900 to $1,300 a month, according to estimates by independent insurance broker Alan Leafman, But as it turns out, Sarah can qualify for a SCHIP policy with no deductible for about $160 per month, and the other Brennans can qualify

for a family plan with Humana for a $131 monthly premium,

$10,400 deductible and free well visits Total monthly outlay

$291 Babette says that such a policy sets her mind at ease

least this way I don’t have to worry about what we'll do if there's an emergency.” $

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Being anxious Being excited about the future about the future

Financial guidance should be for anyone who has a goal and wants to make it happen Stop

in to any Citibank branch for free financial guidance No matter how big or small your goal, we can help make it a reality Having a dream is great, but having a plan is better

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800.336.CITI or visit citi.com

FINANCIAL GUIDANCE savings goal planning retirement

buying a home

citi let's get it done

You’re Not a Kid

Stop Investing Like One

At your age, you have way more money at risk and

far less time to recover from losses Don’t blow it

How doyou know when you've

crossed the invisible line and you're

‘not young anymore? Maybe it’s the first

time you look at Billboard's top 20 list and

don'trecognize a single name Or when

your kids start staying out laterat night

than you can keep your eyes open Or

maybe ithits you when you realize that

ifthe stock market falls 30%, as it does

from time to time, you'll lose the equiva-

lentof ayear’s pay, not a week's, and you

don'twantto have to work forever to

‘make the money back

In the last caseat least, there’s asilver

lining, It means you've managed to put

away a substantial sum, reaping the ben-

»

efits of 30 or so years of steady saving and

compounding retums But that’s a once-

in-a-lifetime deal, You will never get

those 30 years back If you're aboomer,

in other words, the math has started to

‘work against you: Whether you're 49

(0° 56 or 60, odds are you have moreto

Jose than ever and less time than everto

recover if something goes wrong

So yourage demands thatyou become

more risk-averse And with the market

coming off recond highs, the housing

market taking forever to find abottom and

AG September MONEY MAGAZINE@35}1972-2007

ahost of other troubling financial signals, you've got reason to worry about stock prices tumbling (see the Invest section

‘on page 71) Yet with many good years

still in frontofyou, getting out of the

market isn’t an option either You need

your savings to keep growing to outpace inflation and reach your goals,

How are you supposed to do alll of

these contradictory things at on:

GET SOME PERSPECTIVE Although it

‘may not feel like it, you probably have time to ride outa decline Consider the bear market that started in 2000, one

of the worst ever Standard & Poor's 500

It took 30 years of saving and compounding

to get where you are But that’s a once-in-a-

lifetime deal You'll never get those 30 years back

dropped 49% over nearly three years, and the index took more than seven years to fully recover, Do you have seven years before you'll start drawing down your

savings? Plus, you're not going to with-

draw the whole shebang on Day One but

rather over20 to 30 years or more

Keep this in mind too: Drops of that

‘magnitude occur only about every 30 years Declines of 20% to 30% are more typical, and on average the S&P 500 gets

back to even 35 yearsaftera pullback begins, says Sam Stovall, chiefinvest-

ment strategist at S&P In every market

drop ofless than 15% since 1970 (there have been many), the index has fully recovered within a year

DOA GUTCHECK Thatdoesn’t mean you shouldn't take action to minimize your losses in a pullback, especially if you reach for the Tums every time you listen

to the financial news “If you're worrying

because you can't accepta market drop, now—before there's another big one— agreat time to adjust yourasset alloca- tion,” says Steven Sheldon, presidentof

SMS Capital Management in Houston

‘To assess your age-appropriate toler-

ance forrisk, aska few simple questions How much longerdo I want towork? Has my health declined? Do Ihave any large expenses fast approaching, like college tuition or elder care for a parent?

‘These will give you an idea of how much

‘money you'll need fairly soon and how securely it should be tucked away Pick

an asset mix that suits you—the sooner you need the money, the less you should hold in stocks—then rebalance once a year to maintain that blend For help, check outthe Asset Allocator tool in the

personal-finance section at cnnmoney

com A conservative recommended mix for someone who doesn't need current incomeand will retire in about 10 yea! 40% lange stocks, 15% small stocks, 15% foreign stocks, 25% bonds and 5% cash

We can help wake it @ NG

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401(k) ® Annuities ® College Savings * Life Insurance * Long Term Care lnsurance * Mutual Funds

within them Your stocks or stock funds,

for instance, should include foreign

shares and a mix ofsmall, medium and

lange companies, especially big com-

panies that pay a dividend and have

consistently grown eamings Your bonds

should be Treasuries and high-grade cor-

porates An inflation hedge like gold or

‘Treasury Inflation-Protected Securities

(TIPS) wouldn't hurt either,

How effective is broad diversification?

jer the Vanguard Wellington fund,

which takessuch an approach In the last

bear market—one of the worst ever—this

find actually rose 2.4%, Ithas lagged

the S&P 500 since then but by only a

small amount Then too, in the seven or

soyears thatthe large-cap S&P 500 was

fallingand clawingback to even, foreign

stocks rose 30%, small stocks doubled

and real estat

than doubled The amazing truth: Folks

who had properly spread their betsback

in 2000 didn’t eel much ofa pinch atall

Cons

investment trusts more

DON'T SELL AFTER PRICES FALL When

today's bull market finally ends—and it

will—don't give in to temptation and sell

It’s noteasy to stand firm But selling

after adrop almost always backfires In

fact, ifyour nerves can stand it, buy more

shares while prices are down, Although

making a bigbet on amarketbottom is

less, regimen of investing the same

dollar amount every paycheck, month or

quarter lets you actually benefit from

dips, corrections and bear markets This

discipline can't work quick magic on

large losses, but it virtually guarantees

thatyou'll bounce back faster So instead

of worrying about the nextbear market,

getready for it and sleep well—atleast

until the kids gethomeand wake you $

recl

Dan Kadlec is co-author of The Power

‘Years, a guide for boomers E-mail him at

boom years@moneymail.c

48 September MONEY MAGAZINE@35)1972

Loose Lips

When making investment decisions, believe

what your adviser writes, not what he speaks

If you're an Investment news Junkie, you may remember hearing about the SEC and NASD stepping up fines Inrecentyears on financial firms that give false or misleading statements

to customers The fines worked, toa point: The companies started clamp- Ing down on those kinds of statements Inwritten materlals that clients get

Statements Il

“Our annuity gives you the upside

of the market without the risk.”

Our awarel-winning research

means you don't have to settle for index-fund retums.”

“You won't pay a fee to invest in this.”

But don’t feel all safe and cozy Just because the watchdogs seem to be on the Job Some financlal advisers will still say anything to make a sale In fact, all three statements above were given to clients of mine by their previ- ous advisers—orally All are deceptive:

Annultles don’t give youall of the market’s upside, Just some of it, after heavy fees Most actively managed

funds won't beat an Index, and no amount of “award winning” research will help your adviser predict which few will Andall investments have fees, even if you don't see them or pay them directly

Even though my clients relled on these promises when they chose Investments, they had nothing In writing to prove It In fact, within minutes of making those misleading statements, the adviser probably had the client sign a multipage disclosure document that contained language (buried deep inside) directly contra- dicting the oral promise Advisers know no one Is actually going to read all the disclosures before signing Here's an easy solution When your adviser makes an extreme-sounding claim, send him nice, friendly e-mall articulating your understanding of whathe sald Ask him to confirm It—in writing Ifthe statement Is accurate,

he should have no problem fhe backpedals, dismisses your request by saying “That's inthe disclosure docu- ment” or Just calls you up to repeat his oral promise, get very suspicious Ifhe won't write, something's not right

The Mole is acertified financial planner and certified public accountant who—in the interest of fairness—thinks you should know what goes on behind the scenes, Have a topic you'd like i towrite about? E-mail themole@money

ILLUSTRATION BY MARK MATCHO