07/12/09: Financial News of the Week

" And -- show is online. The on demand. Turned to Rick -- Saturday's one before Sunday's nine to noon on."

" The markets. The market. Gave back a bit this week that down is that down seven. For the year the NASDAQ is actually up eleven and the S&P is down. Just about three. And basically this is this is typical for the summit this summer usually -- market which is good they call the market going sideways. And that's sort of what it is and so. You know everything's fine. I want to. Talk about last week or the week before. There was a big piece. In the paper about a local on. Travel agencies that offer travel insurance and the person couldn't get their money back in the name was vantage. Well this week I get calls from three of my clients saying they had signed up. -- Vantage and in that canceled a trip and had done real money back none of that chip so -- it. I don't apologize clearly it's some clearly it was a weird case serve anything like that or -- And you just handed me yet one more learn I thought you investment advisors scamming seniors. And secretary of the commonwealth William Galvin charged Robert Blake is still in three affiliated firms. With tricking 26 investors into buying three and a half million dollars of unregistered and unsuitable securities. Would read and read it read the very last paragraph here. That the defendant denies any wrongdoing and claim there's no indication annually in lost money or failed to get promised interest mr. blaze still thought. And was led to believe that these are very conservative safe investment."

" Now mr. plays as a financial adviser. It and in the middle of -- does -- say in the prospectuses that you could lose a lot of money so either he stupid or he's -- has avoided us and south. I'm in I've been -- BF financial adviser and he led to believe I'm supposed to do the research for the people he's solid stuff through exactly yes -- Along. And and we get these pretty frequently you know probably every month and a half or so unfortunately. Don't let the guests at leave your name know what you're invested in and this this is all about bonds which are once again and the reason I'm gonna show that you as you've been. Jumping on in the last month or two how bonds can be just as dangerous and in the -- signal people and to believe that."

" And I meant to question -- adviser. It it might be a terrible time for my family. How soon can play liquidate my account yet and get a check and if they say you are is anything more than three days. And you have to have much further investigate yeah you get problems. Fees have really come down. The cost of investing in mutual funds fell again last year. And essentially. Now. With all of the pressure mutual fund fees and expenses are dropping precipitously. And the lowest they've been in ten years this manner effect."

" Kids moving back into the home."

" We've written it yet did people like forty years old -- I don't think they're kids. That's. Exactly true symbol not. General with the -- and --"

" Parents children but not -- not they're not kids by any stretch of human issues that come up rent even if you're gonna forgive it. Even if you're going to -- and even if you're going to I am -- gonna put that. They should be charged rent this is the grown up world bright and therefore you may choose to give it back to then to make a gift to -- sport but. They should be charged rent."

" Drawn a child that was prisoners before."

" They should have jobs to do you don't you don't live in a house that they should have jobs. And -- is yeah."

" If you go back in with you if you can if you have the 35 and you can. You know have I don't know how people do a you can move back in with a parent you can also work at McDonald's. They can actually get until you get -- over at -- usually aimed at real not add that I'm not dissing people were down but -- a career tight job."

" And as you know -- did money informal survey. And in this area I found to Starbucks looking for work looking for people to hire and bomb. Container Store and was another one. And to. Clothing stores that that the Natick ma if you do your job well and you do it honestly then it doesn't matter what is UB product I've their garbage man who are. Excellent -- job and they they should be proud of that. There's nothing to be ashamed especially in this economy. Faults prize. Will clearly yes it will really carry. I had some of these calls and and essentially. Shares in General Motors are worthless. Many investors don't understand. That when a company is bankrupt then. If they then -- up. Into something else and issue new -- you don't participants say new it's nickel it's the new -- it's the new GM shares is destined to become worthless gained 37%. From people buying them things. -- members took a few weeks ago few my clients called my sudden and Obama. And apparently -- a lot of people out there. Do not by GM's stock. It will be worth is zero if they then reconfigured GM and issue new stock. And you believe in GM that may be the place but not it is not that new stocks I don't know -- Which out of there and several articles about claiming Social Security benefits. Again and essentially you can start when you're 62 -- 63. You only do that if you're earning thirteen thousand dollars a year or less. If you're earning more than that you'll lose some of your Social Security benefits. If you go out to -- 65 or 66 whichever is sheer magic age you can then learn a billion dollars. And it's still. Not lose any of your Social Security. And so that's really the issue. Actually narrowly. All the choices are of the same just like when you have a pension. The actuarial tables each alternative is exactly equal it's only a -- knows something they don't know. Like Q have a terminal disease. Like Q have genes were everywhere in your family missed the 110. All of that. But it's important that you don't diminish your Social Security. A benefits. US trade deficit eased in May to its lowest level in the decade. Exports jumped one point 6%. While the recession continued to decrease American appetite for imports. This is why it's so important. Two there are many many variables everyone's saying this deficits gonna kill us a printing money in that that that the well the trade deficit is there and all of these financial events have about. 5000. Component that there everything's integrated even if you've correctly identified. A thousand which nobody does that usually citing two or three things aren't you missing -- 500 more. You're missing 500 -- you cannot predict the future even the most brilliant people in the world cannot predict the future. And so you don't wanna make bets based on that. Another a waste states are boosting their revenue is they're selling surplus inventory. And a lot of it up for grabs that a very deep discount. What's for sale everything from machinery to real estate. Price of the steel and often excellent condition are forklifts tractors trains buses boats cafeteria equipment fuel pumps garbage trucks electrical equipment. A lot of -- and -- of garbage truck. The -- smart -- Why am bringing this up. Is settle a lot of young people. Who started this man who want to do something that. You don't need brand new things in fact I had to higher on the -- very little little job. And if there was it is that. Very nice young man who's been started business his own moving business and in -- going to have to rent -- truck as he couldn't afford to buy it. Well. This is a perfect example of going to the state and buying some this used big equipment. At a fractions what you mean. Especially trucks trucks go for average the at buying a new truck. Really is in ninety I don't know what percent in very large percent of people use trucks for business really should not be buying a new. One of the other things is that three insurers have been given negative ratings. Mass mutual new York life and CIA craft. They've been hurt by investment losses and a lot of the variable annuities that you had Europe for a three these in. Are in these vehicles. Be careful this is why we say get it out of there when you retire roll it over and get it out also and this is sidelined I was talk about this -- this is why. Insurance companies and investment banks and what have you should not have been allowed to get in the investment industry. Again membership of the other thing on the 250000. Dollar FDIC guarantee for the bank vehicles. Goes through 2013. Not just the end of this year -- 2000."

" Thanks for downloading and listening to the money show with the Rick -- Come back -- Boston's talk evolution. But these 69 WTKK. -- on line and on them."