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Good Morning, Memphis is one of those serious Free Thinkers -- He reads & studies a lot - he use to post at KTFA; and so did a lot of others - Well we know what eventually happens when someone thinks there's too many chiefs & not enough indians lol - Memphis now sends out his summaries, thoughts, opinions, etc to a mailing list and gets circulated to DinarLand - His writings are most of the time a little over my head but I feel sure many here will digest it easily -- whether they agree totally or not -- lol -- Maybe some here will share their perspective and understanding for all to benefit -- UNEEK "The problem ain't what people know. It's what people know that ain't so that's the problem." ~ Will Rogers I love that quote. It has come to mind often thruout this dinar journey. After typing thousands of pages of material in the past 3 yrs I look back and see that a good portion of it was simply pointing. Pointing to things, both global and domestic changes, that I saw clearly would have a lasting effect on us all. As Will Rogers astutely observed, we each have misconceptions of our world and my assumption is always that I am not alone in attempting to root them out. To minimize them and REPLACE them with reality. PICK A SIDE - ACTIVE OR PASSIVE Last time I made the statement: "Confidence may seem an elusive thing right now but it will come. Our obvious best friend towards this end is knowledge and as we grow in THAT, our confidence will soar." Most of my emails last year were not premeditated (be nice). As "real world" examples popped up, I pointed. I get extremely excited when I "see" something that has value KNOWING that few others will see it from the same perspective and thus risk missing a great opportunity to see more clearly how our world truly spins. To add knowledge. Tonight I am again excited to release this blog. What a shame if we have a real world practical example simply pass us by because we were looking elsewhere! In preparing for the challenges that lie ahead AFTER the re-pricing of the IQD we each have a hurdle to overcome, a new language to learn. The language of finance. These terms can largely remain abstract to us if not seen in the real world. Today's blog will illuminate one such term. For all but the seasoned investor, our financial future depends upon entrusting the right persons which first implies that we know enough to seek him/her out of a crowd! This then requires that we roll up our sleeves and "go to school". This school for me began a few years ago when I gave up my day job of paraphrasing Iraqi news articles and I can proudly report that I have just now scratched the surface! For most readers the majority of your investment choices will become "passive" in nature as the knowledge needed to invest "actively" is not for the faint of heart. Trust me on this. Talk is cheap but try making that REAL decision with REAL money? O well, I have never tried to convince folks on anything as it never works. We have to see it for ourselves and (I believe) soon we will. For others tho, those with a mind to actively manage their wealth, you'll need a rounded macro view of the entire globe as your world will quickly become about managing risk. Risk however is not a one dimensional problem but has many potential points that must each be recognized, analyzed and quantified. If the word passive is not part of your makeup then today's blog is tailored to you. It contains a practical "real world" example that will illuminate the discussion of "political risk", an important aspect of risk for any active investor that IMO receives too little attention. THE PERFECT GOVERNMENT? Before we look at Greece in our example of political risk can you imagine what the perfect gov't might look like? One that would present to us (as investors) a political risk as close to zero as possible? Many of you naturally would answer America here but as a contrarian I would suggest no. Never has a republic stood up against the eventual corruption from within (it's politicians) and without (those who would control the game). That form of gov't most likely to stand and resist such erosions is a pure democracy where the people decide all. This then makes Switzerland the poster child of possibility and (as investors) a nation that should be studied and watched in the years ahead. If I were to ask you to name one politician from Switzerland I doubt if any hands would be raised. Why is that? It is largely because the PEOPLE are center stage. To my point here, their politicians do not have great power and hold sway over all matters. It is by the vote that matters of importance are settled. Before arousing a political debate here (NOT my desire) let's shift to what may arguably be the opposite extreme. So,what does Greece have to do with our discussion on risk? Plenty. But only if we have ALL the information! If our "opinion" (our reality) is based on what we have seen on TV then we have SOME of the facts. These facts tell us that Greece may soon default on it's debt and exit the European Union. And they may, but is there more? If the above were the full story, and Greece DID default, then Greece would be a GREAT source of opportunity for capital as their economy would surely begin to heal very quickly. Confidence would soar and (not unlike Switzerland) capital would start pouring in to this tiny nation or at least that is my position. Confidence is everything and what we are witnessing, and about to witness to an even greater degree in the years ahead, is a great shifting in confidence. Imagine a loose cannon on the deck in a tempest tossed sea and you'll get the idea. This is where our little discussed aspect of risk comes into play. Fresh on the heels of the Greek election what do we know about the new controlling Syriza party? Is there anything of importance? Are they truly JUST the "anti-austerity" party as mainstream media is telling us? In defining risk, using a global mindset, we must always consider political risk. This is one of those terms that we must add to our new language but given the volume of new terms that surely are hard for us to quantify and give value to, I am today pointing to Greece and suggesting that (as investors) this is a perfect real world example of the supreme importance of defining ALL risks. Please don't fail to appreciate that there can be various risk categories applied but for today's purposes? One of the biggies that I see often ignored (seldom talked about) is political. After reading the article linked below you will forever remember the need to take into account political risk. Is Greece soon to be a hot spot for the value investor or is it more likely to be a turbulent home for only the sharpest of crisis investors? I think the latter but regardless THIS is a PERFECT example of the changes taking place in our world. It is then up to us to go seize the opportunity that is afforded. LIVING ON THE EDGE An important thought in closing. I have a habit that has been with me from my earliest memories. It has never seemed odd to me and until recent years I assumed that most folks shared my habit. That turned out however not to be the case. It appears that I am rather odd in that I take EVERYTHING to the extreme. Immediately after being presented with new information it is taken to it's possible extremes. It's my way of chewing on it. Both "worst case" and "best case" scenarios are imagined based on all probabilities at hand and then I attempt to find balance. In time an equilibrium forms and that is then where I become "settled" on the matter. Here's why I share this... Despite what we hear and read in alternate media SELDOM do we witness the extreme possibility become reality. This is important to ponder for what we now see manifesting in the world is exceptional. I won't go into the many factors driving things globally (other than to mention the extreme of sovereign debts) but allow me today to simply point out that we are witnessing the extreme in Greece. Extraordinary circumstances in that nation have brought about a radical shift in their government and this will have a ripple effect in the region, of that you can be certain. Is this to be an isolated example? I think not. What we once considered extreme is changing and I think this trend will continue. It goes with the word "volatility" like Robin goes with Batman and if we think back just 3 weeks another example pops up... The SNB made a surprising move in the middle of the day when they unpegged the Franc to the Euro. The result? An unprecedented move in their currency. This was an extreme event folks and extreme events? They change how people think, how they react and THIS is the secret to understanding how and why capital moves. Exciting times indeed!! Memphis Thinking as an investor of YOUR wealth, IMAGINE NOT KNOWING WHAT YOU ARE ABOUT TO KNOW: on Greece's new gov't: http://www.mauldineconomics.com/the-10th-man/socialism-is-like-a-nude-beachsounds-like-a-great-idea-until-you-get-there

For your contemplation & consideration - Something to possibly add to & grow on - UNEEK THREE STEP CASH-IN PLAN (in 4 Parts) By: Historian CASH-IN PLAN - OVERVIEW (Part 1 of 4) This Cash-In Plan walks you through some tasks and decisions you may need to address to prepare for cash-in. It is organized in steps from now to the time you set up Advisors (attorney, accountant, etc.). After that, your Advisors will help you plan cash-in and secure your new wealth, so you only need to make the first part of the journey on your own. Historian Note: This Cash-In Plan assumes that the IQD rate at RV will stay the same for some time or increase, and that it will not decrease within the first 12 months (the latter would require a different plan.) 3 BIG STEPS TO CASH-IN (that you must take on your own) Step 1: Your Transition - Organize funds to cover 6 months of expenses and activities Step 2: Your Wealth - Estimate your profit and wealth BEFORE you select your Advisors Step 3: Your Advisors - Select Advisors who specialize in your wealth level and “click†with you WHY IS THE PLAN FOR 6 MONTHS? There are practical considerations: You may need to set up or revise your legal and financial structure, and it may take time to find the right Advisors – you should interview several attorneys, accountants, etc. before settling on the right team. Scheduling and meeting with these people – especially if they are in demand – could take 2 weeks or could easily take 1 to 2 months. You need to plan for the longer possibility . . . so, 2 months. Your Advisors will need to set up the right legal and financial structure for you, and define a plan for you to cash-in. Attorneys and accountants – especially very good ones – are busy, so they will need to fit your work into their regular schedule. They will need to develop the plan, do paperwork and filing. This could take just 1 week or as long as 1 month. After that, you will need to set up bank accounts for the entities in your legal structure. The bank will need specific documents, and they may take more than 1 day to process these. Allow for 1 week. Only after you have set up your legal and financial structure, are you ready to cash-in the bulk of your IQD (or VND). You may need to schedule cash-in appointments. Allow for 1 week. So the time from RV to cash-in could be as little as 1 month or as much as 4 months. To make sure you are not worrying about living expenses and other financial issues, you need a plan that is comfortably longer than 4 months. That is why this Cash-In Plan is for 6 months. (End of Part 1 of 4) CASH-IN PLAN - STEP 1 (Part 2 of 4) STEP 1: YOUR TRANSITION - Organize funds to cover 6 months of expenses and activities. In Step 1, you set up a TRANSITION BUDGET. This will cover (a) Expenses for 6 Months including the cost of your Advisors, ( Debt Repayment, and © Rewards. WHY DO THIS: A TRANSITION BUDGET buys time for you to calm down, adjust and THINK CLEARLY again. It also: - buys time to get past any bait rates - buys time to let professionals help you pay off debts, cash-in and secure your new wealth - helps you avoid spending wildly and wasting your wealth (due to sheer excitement!) - trains you to start thinking like the wealthy person you now are – the wealthy all have a plan that outlines what % they will spend on different living expenses, luxuries and types of investments WHAT TO DO: Exchange the minimum amount of IQD needed to cover all the costs in Step 1. This may be one 10K or one 25K IQD note, or more. Make sure you have enough to pay for all of the following: Note: You may also be able to arrange a line of credit using your IQD as collateral. If so, you may not have to cash-in any IQD to cover your transition, but the rest of your Cash-In Plan will still be the same. a) Expenses for 6 months: Basic monthly living costs: - home costs: monthly rent/mortgage, utilities, phone, security, other - loan payments: monthly auto or other loans - personal care costs: food, meds, clothing, health care, dental, other - annual: property tax; insurance on property, vehicle, health, other - R&R: basic entertainment, recreation, travel/vacations, gifts - Other: any regular costs not already noted - Contingency: add 15% of the above - this is for emergencies One-time costs: - 6 months insurance for your IQD (and VND) if you do not already have it - repairs, maintenance or minor upgrades to home, auto, security, other - special personal costs – e.g. health care you have been waiting for - $10K to $25K to set up your entire legal and financial structure (including travel costs) Debt Repayment: Debts you can pay right away: - small current debts with NO PENALTY if paid off – (e.g. credit cards) - overdue bills and mortgage payments Debts you DO NOT INCLUDE: (see your Advisors first) - large current debts that HAVE A PENALTY if paid off – e.g. mortgage - large overdue debts - e.g. foreclosure, outstanding taxes * *Note: see your Advisors about this first; there are specialists who can help you minimize your costs, as well as settle any other associated legal or financial issues c) Rewards: Set aside a SMALL budget for treatsand toysthat are a HIGH priority – this will help you avoid wasting your wealth on impulse items that you later do not use – examples of treats and toys include: - Vacations – take your time planning each vacation and make sure you get maximum value; it is easy to travel because you can afford it, but you also want to make sure you enjoy the trip and get top value. (It is also prudent to secure your wealth first.) - Clothes – buy better quality or fill in gaps in your wardrobe, and know what you need. Avoid shopping sprees. It is easy to get carried away here – you cannot return it or sell it for much value. Once it is spent, it is gone . . . and part of your new wealth is gone forever. - Toys – pick up a few dream electronics, home, hobby or other items you have always wanted, mainly small ticket items – these toys will help you stay disciplined about your budget while you set up your Advisors and prepare for cash-in. Take several months to do this – buy one, enjoy it fully, calm down, then buy the next one (LOL). - Vehicles – if you can, get by with the present vehicle until cash-in. Your Advisors may recommend that your trust or corporation/LLC own the vehicle. If necessary, repair the present vehicle, rent a vehicle, or buy a low end vehicle that you can later upgrade. - Real Estate – it is best to select your Advisors BEFORE you buy a new property. This is the kind of item that they may suggest your trust or corporation/LLC own. Take 6 months to compare properties while you wait. Travel and experience new locations. d) Calculate your TRANSITION BUDGET: Expenses (a) + Debt Repayment ( + Rewards © = TRANSITION BUDGET e) Simple Tips to help you stay “On Budget†for 6 months: If you are disciplined about managing your money, you may not need to do this. If you tend to lose track of your funds, then this may help you stay within your budget: - open several bank accounts - put the funds for (a) and ( into one account - put the funds for © into another - set up a third account for putting aside tax money and tithing money as you cash-in (End of Part 2 of 4) CASH-IN PLAN - STEP 2 (Part 3 of 4) STEP 2: YOUR WEALTH - Estimate your wealth BEFORE you select your Advisors To keep it simple, Step 2 only considers the wealth you gain from cash-in of your IQD (and VND). It does not include any current wealth you may have, such as a home or savings, since this is likely to be a minor percentage of your new wealth. In Step 2, you calculate approximately what YOUR WEALTH will be after you cash-in your entire IQD investment and subtract all payouts. You will base this on the RV rate, and update the amount if the rate goes up. You need this information to help you select the right Advisors. WHY DO THIS: Knowing YOUR WEALTH is essential to securing and growing YOUR WEALTH. It will help you: - select Advisors that have clients similar to yourself in wealth and lifestyle - reset your priorities, now that wealth has given you new options - remind yourself that luxuries REDUCE YOUR WEALTH, so think before you spend - spend only on priorities and maximize YOUR WEALTH WHAT TO DO: YOUR PROFIT is the money you will make from cash-in of your total investment, less ALL payouts. To calculate YOUR PROFIT, do the following: a) Calculate your Proceeds from cash-in: Calculate the money you will receive from cash-in. Use the cash-in rate at RV (you can update this if it goes up). Calculate your Payouts: These include: - taxes on the proceeds (use the highest % for now) - tithing or causes c) Calculate YOUR PROFIT: Proceeds (a) – Payouts ( = YOUR PROFIT © YOUR WEALTH is what you will have left after you spend part of YOUR PROFIT on expenses, large debts and big purchases (excluding a new property). To calculate YOUR WEALTH, include the following: d) Your Transition Budget: Use the amount from Step 1 (d) e) Large Debts NOT included in the Transition Budget: These include large items you excluded in Step 1 ( : - current debts that HAVE A PENALTY if paid off – e.g. mortgage - overdue amounts - e.g. foreclosure, outstanding taxes f) Luxuries and Big-Ticket Items NOT included in the Transition Budget: These include: - high end vehicle or boat - luxury goods - big vacations - other g) Calculate YOUR WEALTH: YOUR PROFIT © - Transition Budget (d) - Large Debts (e) - Luxuries (f) = YOUR WEALTH (End of Part 3 of 4) CASH-IN PLAN - STEP 3 (Part 4 of 4) STEP 3: YOUR ADVISORS - Select Advisors who specialize in your level of wealth and “click†with you In Step 3, you select YOUR ADVISORS and work with them to develop your Cash-In Plan. Following this, you will proceed with the bulk of your cash-in. You need to know all of the information in Steps 1 and 2 in order to select the right Advisors. WHY DO THIS: Not all Advisors are equally qualified to help you. You need Advisors who are well versed in assisting clients with needs and considerations that are similar to your own. This is because: - they are deeply familiar with the laws and rules that will most affect you - they have perfected their theories on many clients (you will not be a guinea pig) - they know how to work with laws and rules to maximize the PROFIT from your cash-in - they know how to help you minimize taxes and manage your wealth year after year, so that you can achieve and maintain the life that you want WHAT TO DO: a) Interview your Advisors: You have set aside $10K to $25K to set up your entire legal and financial structure - DO NOT tell the Advisors you interview that this is your budget - Always come across as a well-heeled penny pincher - DO NOT tell the Advisors you interview all your details - Give them a high-level overview with ball park figures - Make sure you interview at least 3 candidates for each Advisory role - Look for Advisors who understand what YOU want (and do not push their views) - DO NOT sign any documents that charge you for a FREE consultation - DO NOT sign or pay for any documents or analyses you did not ask for - DO NOT accept any offers that appear to be generous "free" analyses - If you retain this Advisor, you may be charged later for the service - Once you have agreed on the specific services, you will likely need to sign a contract or form agreeing to these services. Read all the fine print, and make sure you understand absolutely everything that is described. Do not hesitate to ask for clarification. Your Advisors will respect you and give you better service. Select your Advisors Make sure your team can work with each other; they should not be “flying soloâ€. At the very least, your attorney and accountant MUST work as a team. - Ask the attorney if he/she can recommend a good tax accountant – the attorney will often already have accountants they prefer to work with; make sure it is because the accountant understands the legal work (what the attorney needs) - Do the same with the tax accountant – ask him/her about a good attorney - This will help you create a team that will work together to help you c) Give all the information in Steps 1 and 2 to your selected Advisors Have them set up your legal and financial structure, and your Cash-In Plan (e.g. the accountant may want you to delay cash-in if it changes your tax %). The Cash-In Plan should include: - where to cash in - how much to cash-in at a time - when to do it - where to deposit it - into which part of your structure (trust, corporation/LLC) - other advice Make sure both your attorney and accountant agree with your Cash-In Plan. d) YOU ARE NOW READY TO CASH-IN

How Much Money Would Make You Happy? By Joshua Kennon, When It Comes to Your Portfolio, Science Has an Answer As a new investor, you need to define what your goals are. What are your goals? Do you just want a comfortable retirement? Do you want to have your dream home with no debt? Do you want to own a private jet? The answer to those questions will determine the approach you might want to take when it comes to your investment portfolio. I ask because contemporary sociologists such as Dennis Gilbert define "rich" as those who live off investments and not occupational-driven income. By this definition, a doctor, even one earning $1 million a year, isn’t as rich as someone who earned $1 million from stocks, bonds, real estate, copyrights, or other passive income sources. The reason is because the investor can sit at home and make money, while the doctor stops receiving a paycheck if he fails to go into work. Turns Out, Most Investors Don't Want to Be Rich The truth is, most people don’t want to be rich. This was backed up in a major peer-reviewed study by Daniel Kahneman and Angus Deaton from the Center for Health and Well-being at Princeton University that proved money does buy happiness up to $75,000 per year. In other words, once you make $75,000 per year, your day-to-day experience doesn’t improve very much as your income grows. Your "life satisfaction" does – that is, how you feel about what you’ve accomplished. The degree to which you love your work is icing on the cake. It seems rational that most new investors should focus on how to earn that much each year, if they don’t already. That means that a successful investing program is one that is designed to help you: Live debt-free. If you have no debt, you can’t go bankrupt. Avoid financial stress by having diversified, high-quality investments that provide you with the lifestyle you want. Maintain adequate insurance coverage so you don’t have to worry about losing everything if something goes wrong. Have diversified income sources so you don’t rely on a single job or source of income that could put your family at risk if it disappeared overnight. The 4% Rule and Your Investments The statistical rule for new investors is that if you withdraw 4% of your account value at the end of year each, you should be able to survive even another Great Depression. That means it would require a net worth of $1,875,000 to generate $75,000 in annual passive income without ever running out of money ($75,000 divided by 0.04 = $1,875,000). That means that the average person, based upon research, needs a portfolio worth $1,875,000 to be happy without ever working again. How is that possible? Save $1,165 per month for 35 years at 8%. If you take advantage of 401(k) matching and other programs, you would only have to come up with a portion of that out of pocket. Alternatively, if you and your spouse have an income of $50,000 per year, you’d only need $25,000 from passive income. Following the 4% rule, that would require $625,000. That would only require saving $303 per month for 35 years at 8%. Again, if you used 401(k) plans or other benefit programs, only a portion of that would have to come out of your own wallet. The bottom line? If you are an middle-age or young, average American earning the median household income of $50,000 to $55,000 per year, your personal happiness is likely to tap out with a portfolio of $625,000 generating dividends of $25,000 per year on top of your salary, wages and benefits. http://beginnersinvest.about.com/od/investing101/a/How-Much-Money-Would-Make-You-Happy.htm

From what I have read from some folks sharing - not everyone will be millionaires after the RV - some folks have shared they will continue to work - maybe for themselves but nonetheless, will continue to work - the article here may offer some knowledge that will help down the road to manage what they have in such a way that it will provide an easier life for them than they have now - UNEEK Liquidity, Net Worth, and Net Income Are the Holy Trinity of Getting Rich By Joshua Kennon The Three Things You Need to Focus On If You Want More Money "Liquidity, Net Worth, and Net Income" Do you want to get rich? The answer lies in growing your liquidity, net worth, and net income. If you want to know how to get rich, the secret comes down to three things: Liquidity Net Worth Income (Profitability) Your job is to maximize the three in a way that is consistent with living the life you desire, while doing whatever it is you love to do. Your goal is not to die with the highest net worth possible. If you want to be financially independent, you should strive to increase the percentage of your household's earnings that originates as passive income each year so your family doesn't have to rely on your labor to put food on the table, clothes on their backs, and a warm fire in the fireplace. A family earning $500,000 from the income of a heart surgeon breadwinner is in a much riskier place than a family earning $500,000 in investment income from a portfolio of rental properties, bonds, and blue chip stocks, which will continue chugging out dividends, interest, and rents even if the breadwinner dies or is incapacitated. To better understand each of the holy trio of wealth building, let's examine them individually. Liquidity: The Liquid Resources You Keep on Hand for Opportunity or to Pay Bills Liquidity refers to how quickly you can convert your money into cash that can be spent or invested. In the past, we've examined the importance of liquidity and liquid assets so you already know this is a vital part of a good financial plan. It is possible to make a lot of money, enjoy tremendous success, and still find yourself in bankruptcy court because you didn't manage your liquidity needs well. Nearly all bankruptcy filings are ultimately the result of liquidity shortfalls; a bill or debt comes due and the money isn't in the bank. Default is triggered, setting in motion a chain of events that can be very expensive and financially devestating. This is the reason many financial advisors insist on having enough cash on hand or in the bank to cover six months worth of expenses so you or your business could survive without any income. Some famous business leaders took this policy to the extreme. Currently, Warren Buffett at Berkshire Hathaway is hanging onto more than $40 billion. In the early years, Bill Gates of Microsoft kept the company completely debt-free and had enough cash to cover all of his expenses and payroll for a minimum of one year, even if they didn't sell a single item, giving him twelve months to adapt or shut down without wiping out his family's personal resources. Cash is king, and you should always have a decent amount of it available to protect yourself in the event of unpleasant surprises or in case opportunities come up that you didn't expect. Investors who had cash and other forms of liquidity on hand during the Great Recession were able to get fantastic deals on stocks and bonds that were available at fire sale prices. Net Worth: Assets Minus Liabilities Your net worth is what you would have left if you sold everything you own and paid off all of your debts. If you are successful, over time, your net worth should climb ever-higher. It won't be a steady, gentle, upward slope, especially if you are a long-term investor in the stock market, but that is the nature of life; I call it the Cinderella Principle. It is best to judge your progress in five-year rolling periods. You should also focus on the quality and diversification of your net worth. Two investors, both of whom are worth $2,000,000, might look the same on paper but if one owns a very successful, debt-free private company that has strong competitive advantages and the other has a portfolio of run-down rental houses in a bad part of town that is depreciating rapidly and falling into a spiral of unemployment and crime, the second guy has a much lower quality net worth because it is built on a less stable foundation. Profitability: Your Bottom-Line After-Tax Net Income A profit is when you bring more money in than you pay out, leaving a surplus. Profit is how you grow your net worth. Profit can be used to pay down debt, build liquidity, fund investments, or give to charity. You can measure your profitability in two ways: Profit Margins: There is the gross profit margin, operating profit margin, and net profit margin. Return on Capital: There is Return on Assets and Return on Equity However you choose to measure your profitability, make it higher as time passes. You should be generating a bigger profit at 30 than you were at 20; at 50 than you were at 40. Getting Rich Really Is As Simple As Focusing on the 3-Item Checklist It may seem too easy, but those of you who are smart enough, disciplined enough, and have a bit of luck along the way, can vastly improve the circumstances of your life by arranging your family's balance sheet to focus on liquidity, net worth, and net income. When you do this, you avoid many of the common traps that ensnare the average American, such as credit card debt or student loan debt. http://beginnersinvest.about.com/od/Saving-Money/a/Liquidity-Net-Worth-And-Net-Income-Are-The-Holy-Grail-Of-Getting-Rich.htm

I submit this to you as a courtesy for your own contemplation -- Be wise - Be safe - Be Very Cautious -- It is called a "safe" deposit box -- not a "safety" deposit box - and NOT necessarily safe -- UNEEK PS - I am not promoting "fear" - CAUTION - yes--UNEEK http://worldtruth.tv/do-not-use-safety-deposit-boxes/ U.S DEPARTMENT OF HOMELAND SECURITY HAS TOLD BANKS - IN WRITING - IT MAY INSPECT SAFE DEPOSIT BOXES WITHOUT WARRANT AND SEIZE ANY GOLD, SILVER, GUNS OR OTHER VALUABLES IT FINDS INSIDE THOSE BOXES! According to in-house memos now circulating, the DHS has issued orders to banks across America which announce to them that "under the Patriot Act" the DHS has the absolute right to seize, without any warrant whatsoever, any and all customer bank accounts, to make "periodic and unannounced" visits to any bank to open and inspect the contents of "selected safe deposit boxes." Further, the DHS "shall, at the discretion of the agent supervising the search, remove, photograph or seize as evidence" any of the following items "bar gold, gold coins, firearms of any kind unless manufactured prior to 1878, documents such as passports or foreign bank account records, pornography or any material that, in the opinion of the agent, shall be deemed of to be of a contraband nature." DHS memos also state that banks are informed that any bank employee, on any level, that releases "improper" "classified DHS Security information" to any member of the public, to include the customers whose boxes have been clandestinely opened and inspected and "any other party, to include members of the media" and further "that the posting of any such information on the internet will be grounds for the immediate termination of the said employee or employees and their prosecution under the Patriot Act." Safety deposit box holders and depositors are not given advanced notice when failed banks shut their doors. If people have their emergency money in a safe deposit box or an account in a bank that closes, they will not be allowed into the bank to get it out. They can knock on the door and beg to get in but the sheriff’s department or whoever is handling the closure will simply say “no” because they are just following orders. Deposit box and account holders are not warned of the hazards of banking when they sign up. It is not until they need to get their cash or valuables out in a hurry that they find themselves in trouble. Rules governing access to safe deposit boxes and money held in accounts are written into the charter of each bank. The charter is the statement of policy under which the bank is allowed by the government to do business. These rules are subject to change at any time by faceless bureaucrats who are answerable to no one. They can be changed without notice, without the agreement of the people, and against their will. People can complain but no one will care because this is small potatoes compared to the complaints that will be voiced when the executive order that governs national emergencies is enforced. That order allows the suspension of habeas corpus and all rights guaranteed under the Bill of Rights. A look at the fine print of the contract signed when a safety deposit box is opened reveals that in essence the signer has given to the bank whatever property he has put into that deposit box. When times are good people will be allowed open access to their safe deposit box and the property that is in it. This also applies to their bank accounts. But when times get really bad, many may find that the funds they have placed on deposit and the property they thought was secured in the safe deposit box now belong to the bank, not to them. Although this was probably not explained to them when they signed their signature card, this is what they were agreeing to. During the Great Depression in the early 1930’s people thought that many banks were going to fail. They were afraid they would lose their money so they went in mass to take it out, in what is known as a run on the banks. The government closed the banks to protect them from angry depositors who wanted their money back. Throughout history, governments have acted to protect the interests of banks and the wealthy people who own them, not the interests of depositors or box holders. In a time of emergency, people will have no recourse if access to their safe deposit box and bank accounts is denied. If they are keeping money in a bank that would be needed in an emergency or in a time when credit is no longer free flowing, they may not be able to get it out of the bank. The emergency may occur at night or on a weekend or holiday when the bank is closed. The solution is to take emergency cash or valuables out of the safe deposit box or bank account and secure them somewhere else, like in a home safe. An even better idea may be to close the safe deposit box account completely, letting someone else entertain the illusion of safety. Americans have learned a few things since the Great Depression. They now have the FDIC to liquidate any failed banks. The FDIC promises to set up a series of dates and times when safe deposit box renters can access their boxes by appointment to remove their property and surrender their keys. The FDIC also promises to mail bank customers an announcement of the dates for such events and include a question and answer page that addresses safe deposit box access. The people have the FDIC to give them back the money they had on deposit that they were unable to get out of any failed bank that carries FDIC insurance. Sheila Bair, head of the FDIC, promises that depositor`s money will be available in 24 hours or less. But people should remember that the FDIC is just another bureaucracy, and it`s probably best not to rely on a bureaucracy in an emergency. THE SAME HOLDS TRUE FOR STORAGE FACILITIES DON'T PUT ANYTHING VALUABLE AND/OR NON-REPLACEABLE IN ANY BANK OR STORAGE FACILITY

PART 1 How to Choose a Financial Adviser 18 Questions to Ask Prospective Advisers — and Three Points to Ponder Before You Do From The Truth about Money, Part XIII - How to Choose a Financial Adviser. Point to Ponder #1: Do you really need to meet prospective advisers in person? In the old days — meaning before the Internet — all business was local. People always went to the bank and to the offices of their lawyers, accountants, and financial advisers. Them’s the old days. And them days is going away fast. Today, millions of people work with the financial industry without ever meeting face-to-face the people who serve them. Internet banks are fast replacing brick-and-mortar branches, and your friendly neighborhood tax preparer may well be shipping your papers (via the Internet) to India, where a very inexpensive recent college graduate fills in the blanks on your 1040. And so it’s no surprise that millions of people now get their financial advice solely via the telephone or Internet. Think about it: Have you ever visited your mutual fund company? (We’ve even experienced this in our firm. Although we have dozens of offices around the country, we have thousands of clients whom we’ve never actually met face-to-face, because we don’t happen to have an office where they live. In fact, I still vividly recall the first time an out-of-town caller inquired about hiring us. Although we were a little nervous about it at first, we’ve found that distance is not a problem at all, and we’re able to get to know our clients and provide them with effective advice and service just as easily over the telephone and through email as we can face-to-face.) Think about it: Do you really need to hire a local adviser? If you insist on that, you’ll be limiting your search to the local talent pool, possibly denying yourself great advisers who don’t happen to live in your neighborhood. How important is it, really? Think about how often you meet with your current adviser — I bet it’s no more than once a year, and it may even be less. Instead, you’re probably talking often via phone or email. Does it really matter what city the adviser is calling from? If it does, what will you do if you decide to relocate? If you move to another state, will you fire your adviser because he’s no longer local? That would make little sense — which explains why my firm now has clients in all 50 states: Many relocated for a new job or moved in retirement so they could be closer to their grandchildren. But we’re able to serve them equally well regardless of their (or our) zip code. So, think carefully before you decide that you must only select from a list of local advisers. Point to Ponder #2: Do you understand what he’s saying? Sadly, some advisers try to impress (or intimidate) clients by talking too fast or using technical jargon ordinary consumers can’t comprehend. No matter what anyone tells you, the field of personal finance is not all that complicated. If you don’t understand it, don’t do it. Best test: Try to tell others what the adviser said. If you can’t, don’t proceed with that adviser. Point to Ponder #3: Don’t bother asking for references. And beware advisers who offer them. When you were looking for a job, your resume probably said, “References available upon request.” Did you ever submit to the Human Resources Department the name of that guy who hates you? Every adviser has at least one client who hates him. Think you’ll ever get that name as a reference? That explains why asking for references is a waste of time. All you’ll be doing is contacting the adviser fan club — hardly the basis for making a sound hiring decision. And never hire any adviser who mentions the names of other clients. Not only is it a violation of client privacy (will he pass your name around to others one day, too?), testimonials are generally prohibited by the SEC. That’s because there’s no guarantee you’ll have the same experience as other clients. It’s a great idea to ask for references when hiring a plumber or dentist. Both are in control of their work, and one of them is going to spend unmonitored time in your home. But advisors work in a field where the results of their recommendations are beyond their control — and that makes client references of questionable value. If you think failing to ask for a reference constitutes a glaring omission, relax. Soon, you’ll see how to glean the information you want in a more effective way. With these three points in mind, here are the 18 questions to ask when interviewing prospective advisers: Interview Question #1: Are you licensed as a stockbroker, insurance agent, or investment adviser? Asking this question serves two very useful purposes: First, and most importantly, it cuts through all the marketing hype and bamboozlement. No matter what title a practitioner gives himself or what designations he’s obtained, asking how he’s licensed will tell you how he earns a living — and what kind of product recommendations you are likely to get from him. No matter what he might claim to the contrary, a practitioner who’s solely licensed as a broker or insurance agent makes a living selling investment or insurance products. His need to earn a living will inevitably affect his recommendations. The second benefit of asking this question is that you’ll be making it clear to the candidate that you’re knowledgeable — dramatically reducing the risk that he might try to bamboozle you. Interview Question #2: How are you compensated? As you’ve seen, many practitioners hold multiple licenses. Therefore, you need to get a clear understanding of exactly how he or she earns a living. In addition to learning whether you’ll pay fees, commissions, or both, ask if the practitioner earns any compensation from third parties. Many do. As I told you in Chapter 26, sometimes money managers, insurance companies, wrap account sponsors, mutual fund companies, and others pay brokers and agents extra commissions for hawking their products. In some cases, brokers and agents who sell lots of a certain product are rewarded with trips to exotic locations, expensive jewelry or watches, fancy dinners, or trips to sporting events and concerts. In other cases, practitioners receive free computers or software to help them operate their practices. Although this is more benign than tickets to the Super Bowl, it’s still an incentive for practitioners to recommend something that’s in their best interests instead of the best interests of their clients or customers. Such payments are called “soft dollar” or “third-party” compensation, and your advisor should disclose it. Interview Question #3: What costs will I incur in addition to your compensation? As we’ve seen, there can be a huge difference between what your adviser charges you and how much you actually pay. If you open an IRA account, for example, will you have to pay a set-up fee? Will you pay a termination fee when you close the account or transfer money to a different account? Some brokerage firms and insurance companies charge annual maintenance fees or other charges. You won’t know in advance what these costs are unless you ask. So make sure you receive complete disclosure about the total costs you will pay to implement the recommendations that your adviser will give you. And make sure you receive this disclosure in writing, before you agree to retain the adviser services or invest any money. Interview Question #4: What are your services? Before you walk into a doctor’s office, you already know where it hurts. Likewise, you know what you need from your adviser. Does he provide those services? The typical services needed include financial planning (including college and retirement planning), insurance analysis, tax advice and preparation, investment management, and estate planning. But many advisers only handle one or two of these areas, leaving the rest to other practitioners you have to hire. Make sure your advisor’s expertise and services match your needs, and if you need additional services, ask if the advisor will assist you in coordinating all those services or whether you must do so on your own. A related question pertains to documentation. Will the advisor handle all record-keeping chores for you and provide you with all the information you’ll need for tax preparation? How often will you receive statements and can you check the status of your accounts at any time online? If the advisor issues performance reports, make sure they conform to the Global Investment Performance Standards, which dictate how firms calculate and report investment results. Interview Question #5: What is your investment methodology? Ask if the advisor has a fundamental philosophy that guides his investment approach, and if so, ask him to describe it fully. Many don’t have a formal approach to investment management; instead they merely sell a variety of investment or insurance products without any established methodology or approach. If there is a formal approach in place, find out what that is and how the advisor came to develop it. Did he create it alone, or is there a formal Investment Committee operating under specific policies and protocols? Find out how long the current approach has been in place — which leads to the next Interview Question. Interview Question #6: Describe what your practice was like before, during, and after the 2008 credit crisis. Learn what kinds of advice and investments he was typically recommending in 2005–2007 and whether he is still giving that type of advice today. Ask how many clients he had in 2007, and how many of them are still with him today — if he’s experienced significant turnover in clients, you’ve just obtained information that’s far more valuable than you’d ever get from calling a reference or two. If many of his clients left him, it could be because the investments he had recommended didn’t perform well, or he hadn’t clearly explained the risks of those investments, or he hadn’t remained in close contact with those clients during the market meltdown and proved unsuccessful in meeting their needs. Any of this must make you wonder if you will be happy with him over time. Interview Question #7: Do all the advisers in your firm manage investments the same way as you? The nation’s big brokerage firms, banks, and insurance companies employ hundreds of thousands of brokers and insurance agents — and each is free to sell whatever products he or she wants. Within a single firm, for example, one adviser might be telling a client to sell a stock that another adviser in the firm is telling clients to buy. One could be trading options while others pitch muni bonds or annuities. In short, there is no consistency regarding the advice and recommendations offered by salespeople who work at big firms. It is often the same at smaller advisory firms. When dealing with organizations that operate this way — where each adviser has full discretion to handle each client however he wants, with no regard for how others in the firm handle their clients — you must choose your adviser very, very carefully. After all, you can go to the best hospital in the world, but if your surgeon is a klutz, you’ll die anyway. That’s why you want to know if your adviser works collaboratively with the other advisers in the firm. If he does, you have a higher degree of confidence that the advice you’re receiving is the product of many people — and two (or fifty) heads are better than one. You also get the benefit of knowing that there’s more than one person you can turn to for information or help when needed (see the next Interview Question below). Conversely, if your adviser is a solo practitioner or works independently at a larger firm, you have to hope that you’re selecting the best adviser in the firm. Unless you interview them all, you can’t be sure — and since every adviser in the firm has clients, it’s obvious that someone has made the wrong choice. Knowing that your adviser works with his colleagues rather than acting on his own regardless of what they think can help you get better advice. After all, no matter how good, experienced, or smart an adviser is, you really don’t want your life’s future financial security to be dependent on the actions or advice of just one person.

Interview Question #8: If something happens to you, what happens to me? I’m not talking here about your adviser getting hit by a bus or running screaming from the office never to return (although I’ll get to those scenarios in a moment). No, I’m just wondering what happens if you need help while your adviser is out sick or on vacation. Sure, cell phones and email help a lot in ensuring that your adviser is never far away. But what if he’s on an airplane or hiking down some canyon out of cell range? Ask the candidate how he handles occasions when he’s out of the office. This can be a real problem if your adviser is a solo practitioner who works part-time (as many insurance agents do) or without any assistants (common for many brokers and agents). It’s common for advisers in larger firms to buddy up, covering for each other when one is away. Find out if the adviser you’re interviewing has such an arrangement, but don’t stop there. It’s one thing to know that someone else will answer the phone or respond to an email, they need to be able to do more than merely say, “Harvey will be back on Thursday.” You want to verify that Harvey’s buddy is able to actually help you. That means he has the ability — and authority — to handle transactions (especially liquidations, because if you need cash quick, you want to know that you can get it, even if Harvey is away). And if you need advice — say you have to make a financial decision and there’s a deadline that can’t wait — is that buddy familiar with your financial situation, or is he just some broker or insurance agent in the office who was forced into taking other’s phone calls? Ideally, you want to know that if your adviser is away, there are others in the firm who are very familiar with the investments and insurance you own, and who can talk with you knowledgeably and offer advice just like your adviser could. I’m talking here about depth of talent, and it’s of tremendous importance when hiring an adviser. Don’t let your financial future be dependent on the advice — or sheer availability — of just one person. Of course, the above describes the inconvenience of having an adviser away on vacation or out sick. But what happens to you and your account if your adviser quits, retires, or dies? I’m talking about a succession plan. Does your adviser have one? Most don’t, despite the fact that one of those events is eventually going to occur. So ask the candidate how long he plans to continue in this field and what will happen to your account if he sells his practice, quits the firm, or leaves due to death or disability. Are there others in the firm who can take over with minimal disruption to you? Sure, you’ll have to get to know the successor, but you’d have to do that anyway if your adviser departure forced you to find another adviser. And if you are forced to start over, you may find yourself having to transfer accounts, sell assets, and buy new ones, resulting in fees or taxes. Talented advisers realize they have an obligation to ensure that their clients will be cared for after they are gone and they have succession plans in place to assure continuity of services. Make sure your adviser has a plan in place. And learn its details. Don’t merely let a prospective adviser say, “Yes, I have a plan.” Make him describe it, so you can decide if it’s well thought out and realistic. What is the name of the person who he expects will take over? What will be the transition process? Make sure you are comfortable with these answers. And if you’re not, make sure you’re comfortable with the idea of having to find a new adviser if this one dies, quits, or retires. Interview Question #9: Do you personally own the same investment and insurance products you’ll be recommending to me? I’ve learned over the years that a great many brokers, agents, and advisers never personally invest in the products they tell their clients to buy. It’s reasonable to assume there might be some differences in what your adviser buys for his own account compared to what he recommends for you — his personal situation might be quite different from yours, after all — but if he’s telling you to invest your life’s savings in annuities and he doesn’t own any of them himself, or if he’s recommending a third-party manager but he hasn’t placed his own money with that manager, well, you just have to ask yourself a question: If he doesn’t buy what he’s selling to you, are you sure you want to buy it? Put another way, would you dine at a restaurant whose chef refused to eat there? Interview Question #10: What kind of people do you usually work with? Do not tell the candidates about yourself right away. Instead, ask them to describe their typical clients. If they describe you, it could be a good match. If they describe someone quite different, you could be out of place. As part of this question, ask how much money their typical clients invest. If you have $50,000 to invest, you don’t want an adviser who works primarily with millionaires, or you’ll probably be ignored. Likewise, if you have $1 million and the adviser works mostly with assets of fifty grand, the adviser may not have the expertise you require. Ideally, you want an adviser who has extensive experience working with people just like you. Never be a surgeon’s first patient. And never let a podiatrist operate on your spleen. Interview Question #11: How long have you been in this business? Don’t assume that age translates to experience. A great many stockbrokers, insurance agents, and investment advisers are career-changers, and their gray hair belies the fact that they’ve been in the field only a year or two. Interview Question #12: What is your ratio of support staff to professional staff? If the adviser works alone or has only limited access to support staff, then you’re paying for your adviser to lick envelopes. You want an adviser who operates in a professional environment, not a solo practitioner who must do everything himself. An effective office operation will have no less than one support staff member for every professional. Interview Question #13: Do you conduct background checks of your staff? It’s obvious that your adviser will be in possession of your date of birth, Social Security Number, and detailed information about your bank accounts, investments, and insurance policies. (That’s why I’ve shown you how to check your adviser regulatory history.) But your adviser staff will also have access to this information as well. Are they trustworthy? Your adviser should never hire anyone without checking their criminal record and credit report. After all, people with checkered pasts or who are under financial pressure are more likely to engage in improper behavior than those who enjoy more stable lives. Ask your adviser if he conducts background checks of all job applicants — and be concerned if he does not. Also make sure that your adviser periodically re-checks his staff ’s background. After all, many people’s lives drastically changed during the latter part of the ’00s. Millions were laid off, suffered massive investment losses, or lost their homes to foreclosure. Did any of this happen to the adviser staff (or their spouses)? If so, an employee might be experiencing severe financial difficulty, and temptation could place your money or identity at risk. You should not trust your financial future to an adviser or firm who does not take basic steps to protect you. Interview Question #14: What is the adviser reputation, both in the field and in the local community? Those who have roots and solid reputations to protect tend to be more careful than someone with neither. Interview Question #15: Do you have a clean regulatory record? Don’t be afraid to ask this question and, if you like, follow it up by contacting the regulatory authorities. Every legitimate practitioner holds at least one FINRA or insurance license, so it’s easy to find out if there have been any complaints. To check with the SEC directly, go to www.adviserinfo.sec.gov and click on “Investment Adviser Search.” To check with FINRA, go to www.finra.org/brokercheck. Interview Question #16: Do I have to sign a contract? Most Registered Investment Advisers require clients to sign contracts; brokers and insurance agents never do. What does the contract require you to do? What limits does it place on you? What abilities does it grant the adviser? For example, some advisers don’t allow clients to terminate the relationship or make withdrawals without 90 days’ notice. Others allow the adviser to make all investment decisions without your prior consent. Some require you to pay in advance. Read the contract carefully, and make sure you’re comfortable with everything it says. And our final two questions … Interview Question #17: Why did you choose this work? Aside from giving an occasional stupid answer (“I needed a job”), advisers who are asked this question tend to give a response that falls into one of two categories: They either talk about their fascination with investments, economics, financial planning, and other numbers-oriented topics, or they talk about their fascination with people and how the dynamics of family relationships, emotions, attitudes, and desires interact with effective financial decision-making. You have to decide if you prefer to work with an adviser who is more interested in the markets, or more interested in how you will interact with the markets. Interview Question #18: Why should I choose you? This is a fair question, and the answer will reflect the adviser experience and depth of character. The answer should be a reflection of the adviser skills and abilities, with an emphasis on how he can help you. Beware any candidate who treats this question as an opportunity to disparage others. True professionals do not need to diminish the competition in order to make themselves shine. When you’re done with the interview, you should be able to ask one final question — of yourself: Do you like this person? Don’t hire someone you dislike.

The Most Important Financial Decision You Will Make By now, you need no convincing that you must pay attention to your personal finances. You need to eliminate debts, build cash reserves, buy and manage investments, prepare your tax return, develop an estate plan, save for college and retirement, make the best use of workplace benefit programs, and buy the right types and amounts of insurance. Oh yes, let’s not forget the importance of making the right decisions when buying homes, obtaining mortgages, arranging automobile purchases, helping family members, and dealing with a multitude of other financial issues. For sure, I don’t have to convince you of your need to tend to all this. Rather, there’s really only one question you must answer: Do you want to tackle these issues yourself, or would you prefer to delegate these chores to a financial professional? You see, although Barron’s named me the #1 independent financial adviser in the nation*, in some respects I’m really just … Jiffy Lube. Here’s what I mean. You know you need to change the oil in your car. You know that if you don’t, the car’s engine will eventually seize. So, you can run to the store to get some oil and then go home and do the work yourself, or you can take your car to Jiffy Lube and let those friendly folks do the work for you. Interestingly, Jiffy Lube doesn’t promise to put better oil in your car than you could yourself. Instead, it promises that you won’t get your hands dirty. Thus, Jiffy Lube simply provides a service, and you pay a fee to receive it. Is the fee worth it? Absolutely, if you don’t know how to change the oil, if you don’t know which type of oil to buy, if you don’t have the time to change the oil, or if you simply don’t want to do it yourself. In any of these cases, Jiffy Lube is well worth the modest fee it charges. In short, everyone needs to change the oil in their car, but not everyone needs to hire Jiffy Lube. And by the same notion, everyone needs a financial plan, but not everyone needs a financial planner. This book is called The Truth About Money, and the truth is that there are really only three reasons you might need to hire a financial adviser: 1. You lack the knowledge to make the right decisions. 2. You lack the time it takes to properly tend to your investments and personal finances. 3. You lack the desire to spend your time on these chores; you’d much rather spend your time elsewhere.If any of this describes you, then you need to hire a financial adviser. And that decision — choosing your adviser — becomes the most important financial decision you will ever make. So read on to learn how to make this decision successfully. Financial advisers can be found in banks, brokerage firms, accounting firms, trust companies, insurance companies, and of course, in financial planning firms. Although their titles and credentials vary, they all have the same job: to help you identify and achieve your financial goals. They do this by examining your situation and giving you advice across the full spectrum of personal finance —the very topics we’ve explored throughout this book. As you know, the world of personal finance is broad and complex. Consequently, so is the landscape of financial advice and those who provide it. Therefore, this final part of the book will show you the different kinds of advisers that exist, how the services they offer may differ, and explain how they are licensed, regulated, and compensated. You’ll also learn how to select the adviser who’s right for you and how to get the most value from your relationship with him or her. Understanding What You’re Really Paying For As I explain thoroughly in my book Discover the Wealth Within You, a properly constructed financial plan begins with setting goals. You determine what you want to do, when you want to do it, and how much it will cost. You then examine your income and assets, comparing them to your expenses and debts, so that you can determine how much you need to save and what kind of investments you need in order to reach those goals. As Part XI showed you, a properly constructed financial plan also helps you determine what kinds and amounts of insurance you need. Some people skip the planning part and go straight to buying investments and insurance. But either way, you’ll find yourself faced with the decision of buying investment and insurance products. Yes, products. In the end, the financial services industry is in the product manufacturing and distribution business. So the real question you must answer is rather simple: Do you want to pay for advice (that tells you what you need to do) or do you want to pay for the purchase of products? This question is at the core of the entire discussion that follows, because, as you’ll see, some advisors are paid to give advice, while others are paid to sell products. Some are paid to do both. And just because your intent is to pay for one doesn’t mean you won’t also pay for the other. Sound confusing? If the federal and state laws and regulations that govern the field seem complicated, well, they are only reflecting the field itself. But hang in there — by the time you’re done reading this part, it’ll all make sense. And you’ll be ready to interview potential advisers — or re-evaluate your current one. *Barron’s ranking "Top 100 Independent Financial Advisers" (Aug. 27, 2012/Aug. 28, 2010 / Aug. 31, 2009) based on the quality of the advisers’ practices, including client retention and compliance record, contribution to the firm’s profitability, and the volume of assets

Questions to Ask Private Bankers or Tax Attorneys/CPAs Probably a good time for a refresher on this or for new investors. Here is a list of questions to ask your private banker: Our readers frequently ask for advice on how to select a new adviser. Many private banking clients are insecure about the method to identify the critical information they need to know before they pick a new private banker. Usually in the first meeting an adviser buries you under company brochures and gives you a nice standard speech. However, our experience shows that this kind of information does not even scratch the surface of what you really need to know. As a first-aid kit we have prepared a list of 12 indispensable questions you should ask your wealth manager or private banker during the first meeting. Questions on the organization of the bank/private banker: What is the minimum amount to be invested? (This gives you a good feel whether the bank targets private banking clients that are similar to you) What is the value of assets under your firm’s management? (The number shows if it is a big institution with international reach or a smaller boutique. Do not forget to ask if the number has been growing or falling lately, and why) Since when have you been in the business of private banking? (Gives you a feel about their level of experience) Questions on the investment philosophy: Describe your investment philosophy (Should match your philosophy as closely as possible) What are your weaknesses? (If they can’t name any, then it stinks) What sets you apart from other wealth managers and private bankers? (Don’t be satisfied with a general answer, insist on specifics) Are your performance figures verified by an independent third party? (Yes: good, No: bad) What is the process you follow for making investments? (There should be a clear step-by-step process which involves a written evaluation of your preferences and wishes) Questions to the private banker directly: To the adviser, directly: What qualifies you to provide wealth consultancy? (Again, you should insist on specifics like his level of experience or business degrees) What is the your personal remuneration based on? (Is it based on how much fees he generates from you? Or is it based on the overall performance of his clients’ portfolios. If there is no clear answer assume the former) Questions on private banking fees: What are your fees? (Ask specifically about transaction fees, flat fees, ticket fees, government fees...there are many ways by which they plan to part you from your money) Are there any hidden costs in the portfolio? If yes: How large are they typically? (Like fund fees, kickbacks) These are the questions that you should definitely ask in the first round to get all the basic facts and a good first impression about the private banker. However, we highly recommend you to dig deeper before you make you final decision.