Conference nyoss1::market_investing

    I think it's a division of Amway. The same ones that sell household
    cleaners and other stuff.

    All of the usual cautions that you can find elsewhere in this notes
    file should apply here. Plus this type of selling is usually more
    costly than most, so you would probably get less for your money than
    buying from a full service broker or an insurance company.

    
    i got the name wrong, it's World Marketing Association.
    
    thanks.  i'll re-read the other notes.
    
    jo

    does anyone know if the old INVESTING notes conference is still
    around?  it was mentioned in note 241.1.
    
    i'd just like to read up more on network marketing.
    
    i guess one thing that's good for my aunt is that there is no
    inventory to keep.
    
    jo

    WMA is not a division of Amway.
    
    I am not involved with WMA but I do know about it. I am preparing to
    become involved with Primerica Financial Services and have been
    comparing the two.
    
    From what I gather WMA is geared more towards the "wealthy" individual
    and tries to sell annuities and tax sheltered insurance. They also
    provide investing vehicles (i.e. mutual funds).
    
    PFS is geared more towards the "common" individual. Their policy is to
    sell term insurance where needed and have the individual invest the
    difference in mutual funds. They also just bought Travelers and do
    car,life,home insurance along with mortgages.
    
    
    Jeff Kinser

    
    
    
    re -1
    
    >> From what I gather WMA is geared more towards the "wealthy" individual
    >> and tries to sell annuities and tax sheltered insurance. They also
    >> provide investing vehicles (i.e. mutual funds).
    
    that's funny.  what they told us was exactly the opposite.  Primerica
    was not mentioned at all during the conversion.  they just talked
    about WMA.  they said that they catered more to the "common"
    individual and not the "wealthy".  the comparison given was
    a Smith Barney type customer who may have thousands of dollars
    versus people who don't have thousands of dollars.
    
    and they did mention that the individual selling must be licensed by
    the State.
    
    since it seems that you know a lot more about this how about a
    question.  how is WMA or Primerica different from and independent
    insurance broker?
    
    jo

    re: Primerica Fincial Services
    
    My first introduction to investing involved rolling over our IRA's into
    the Common Sense Growth funds. When I questioned the **9%** front load
    I was told it was standard, all funds have it. I didn't know any better
    and I didn't do my homework. It took a month to figure out that I got
    screwed. A year later the fund was up 7% and we were still down a
    couple of hundred dollars. 
    
    PFS Common Sense Growth, now there's an oxymoron!
    
    ~jeff 

There are a couple of "warning flags" when it comes to investing.

	* If a Mutual Fund has the word "strategic" in it
		- it means they are not accountable for losing money

	* If someone is giving you a service
		- it will not be free

	* Life insurance
		- it is not.   Life insurance just pays death benefits

	* If someone is selling you life insurance as an investment
		- it is a good deal for THEM, not you.

As always, just my opinion

Dave

    re .4
    
    thanks for the pointer to the old INVESTING notes conf.
    
    i did not find as much information on network marketing as note
    241 alluded.  but i did find a lot on insurance.
    
    jo

    I think that all of these Marketing Associations fit a certain type of
    an individual that has a big circle of friends and family that accept
    your advice off and on.
    
    WMA and PFS are both geared towards the middle class (your own
    definition of middle class is correct!!!!) that needs to invest, but
    has not started or started to wrong way.  
    
    All of them want to sell products by offering "CONFIGURATION SERVICES"
    at no charge.  Yes, most of their products are loaded and not with the
    highest RATINGs (from S&P or Moody's or A.M.Best etc).  
    
    If your LOVE the FINANCIAL WORLD and are willing to "SELL and
    INFLUENCE" people inside or outside your friend/family circle, then it
    is for you.  
    
    My wife is part of PFS and she's been to sessions on WMA.  WMA offeres
    a wider range of INVESTMENT CHOICES and focusses on INVESTMENTS and
    then moves onto INSURANCE.  PFS focusses on INSURANCE and then moves 
    to INVESTMENTS.  Buy Term and "INVEST" the Difference is their (PFS's)
    philosophy and I believe in it.   
    
    Hope this helps.
    
    Ken
    
    
    
    

    I agree with .-1
    
    PFS's primary goal is to determine where the individual is. If they
    need life insurance then they point them toward term life. They do this
    for several reasons but the main one is that they believe in keeping
    insurance and investing separate. 
    
    If they need car, health, or other insurance they will provide a quote
    for that also.
    
    They then try to educate the client about reinvesting the difference in
    mutual funds. They really don't care if the client uses their funds or
    if they want to do their own investing as long as they start a program
    that meets the clients needs.
    
    The difference between PFS and an independent agent is that PFS gives
    the agent a chance to recruit other agents under them. (it is not multi
    level marketing though) It is very similar to the real estate business
    where a broker will have many agents selling under him and he gets part
    of their commission.
    
    The answer is if you want help determining whether you are financially
    on track, give PFS or WMA a call for free or if you want to you can
    call a Financial Planner in your area and they will be happy to charge
    you a fee to do the same thing
    
    Jeff

    re -2, -1
    
    >> They then try to educate the client about reinvesting the difference in
    >> mutual funds. 
    
    i'm not sure i understand "reinvesting the difference".  from what
    i've heard so far this is not like whole life or variable universal
    life.  or is it?  what is the "difference" that's getting invested?
    or where is the "difference" coming from?
    
    i'm just trying to understand this.  thanks.
    
    jo

    re -.1
    
    The difference is the difference between premiums for whole (universal)
    life insurance and term insurance for same death benifit.  This
    difference can be substantial if you are young.
    
    /Bhooshan
    

    
    ah!  thank you very much.
    
    jo