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Finance Articles
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Good News?
By Al Thomas
Debt Solutions It feels like your debts are spiraling out of control. With each passing month you are robbing Peter to pay Paul and the heavy cloud of debt is always hovering above your head. When you sit down to work out your money the simple truth is you have more going out than you have coming in. If this carries on there`s a real chance that you won`t be able to make the mortgage payments a few months down the line and then goodness knows what you are going to do. It`d be wonderful if you could pay a fixed monthly fee that would be affordable and keep your creditors off your back. There`s a good chance this can happen if you have a chat with a company that can provide a number of Debt Solutions. A debt management plan is just one of the options that the Debt Solutionscompany can provide. The scheme calculates what you can afford to pay each month and this sum is paid to the Debt Solutionsfirm. All it could take is one phone call to a trained advisor and you could be offered suitable solutions that will lift the burden of heavy debt from your shoulders.
It seems that us small investors are getting the usual window dressing to make it seem that we are getting a good deal, but when you go in the store to try on the merchandise it still doesn`t fit any better. Here is what the Securities and Exchange Commission passed as a new regulation for registered mutual funds. Instead of 50% of the Board of Directors being from outside the company they now must select 75% from outside the company. Can anyone tell me what difference that is going to make? The guys who own the fund will pick people who are friendly to their goals. Will they care any more for the investors than they do now? Window dressing. One new regulation I do agree should help a little (but very little) is the requirement to provide more information to shareholders about their contracts with investment advisors and how they are approved. Big deal. The mutual fund industry said this will raise their costs. How? They have the information. All they have to do is add it to their prospectus. Also remember that the prospectus was written for the Dilbert lawyers at the SEC to meet the regulations and not to give you understandable information. Do you remember what happened to your funds from 2000 to 2003? Most investors lost from 40% to 60% of their money. Let`s hope they don`t hire back those same analysts again, but they probably will. Just their contracts will be different. It is doubtful their results will change. Furthermore these new fantastic, wonderful rules (sic) will not go into effect for 18 months. I guess as one of the 95 million mutual fund owners I will have to wait, but I`m not going to hold my breath. What I did not hear from the SEC was that mutual fund managers should be paid on performance of how well they do with your money. Now they get paid by how much money they have or can get and keep in the fund. Sounds backwards to me. See if you can get your broker to refund all commissions if your fund does not make money. Don`t hold your breath on this one either. Eighteen months from now investors are going to feel a lot better when all that good news goes into effect. Yeah. 
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