RE: welcome back and a question

From: "Ira Krakow" <ikrakow_1999@yahoo.com>
Subject: RE: welcome back and a question
Date: Sun, 25 Mar 2001 17:38:40 -0500

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Ken,

   I looked at their Web site (www.allmerica.com).   It appears that they
sell different types of insurance.  The type of advice a representative (aka
salesperson) might give you would be slanted towards insurance products.
For example, if you asked for retirement advice, they might be tempted to
recommend a variable annuity, since they sell them.  That may be exactly
what you need, or it may not.  Variable annuities have high expense charges,
which means income to Allmerica, and you may nor may not get the best
investment alternatives.  And even if a variable annuity is good for you, do
you think the Allmerica representative might recommend another VA (like
Vanguard) that might have lower expenses and/or better returns?

   In other words, you may be getting an insurance salesperson instead of a
financial planner.  It's very important to find out how the advisor is being
compensated.  Everyone's getting into the act - even my local bank has a
financial planner.  Brokers like Fidelity, Schwab, and Vanguard will do
their version of "financial planning" if you ask (and sometimes even if you
don't!).

   One interesting alternative is a fee-only financial planner.  There, you
pay for the plan, but presumably it's more impartial.  So that's a charge
you don't get from Allmerica.  However, you have to ask if the advice you're
given is biased and might cost you down the road in the form of higher
expenses and or worse performance.

   There's an organization of fee-only planners (National Association of
Personal Financial Advisors) at www.napfa.com where you can explore the
issue further and get names of fee-only planners in your area.

    Hope this helps.

Ira
ikrakow_1999@yahoo.com

- -----Original Message-----
From: owner-persfin@lists.xmission.com
[mailto:owner-persfin@lists.xmission.com]On Behalf Of Ken Stone
Sent: Saturday, March 24, 2001 8:49 PM
To: persfin@lists.xmission.com
Subject: welcome back and a question

In a message dated 3/24/01 at 12:03 PM -0700, BOB_FORD@compuserve.com wrote:

> What a surprise to get this list.  I thought the list was dead.
> At one time it was a very active list and had a lot of good people to
> give some excellent help to others

Bob, my sentiments exactly.

I have recently been recommended to a financial advisor who works for an
outfit called Allmerica Financial. I am aware of the usual warnings
regarding some advisors but I just do not have the time to keep on top of
my savings. Considering that this is a solid reference from someone I know
and trust, it is not as if I am answering a cold call or solicitation.

Anyone have any knowledge of this group?

Thanks,
Ken

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