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36

August 9 • 2007

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became registered
by stock picking. Asset
in the securities
allocation can be one of
industry in 1969,
the keys to investment suc-
three years before the
cess. Diversification can
Dow Jones Industrial
be accomplished in many
Average closed above
ways, even for those who can
1000. I couldn't help,
only invest small amounts.
after the Dow recently
Contact a good financial
crossed the 13,000
adviser to assist you.
mark, thinking back to
• Take advantage of your
all of the opportunities
Norton Stern
401-K or 403-B at work.
missed and fortunes
Columnist
Open an IRA and make peri-
made in my almost 40
odic investments. Consider a
year career as a financial adviser.
Roth IRA.
In 1970, the U.S. invaded
• Fee-based money managers
Cambodia and the market dropped.
should be a consideration. Check
The market dropped again in 1973
with your financial adviser to obtain
during the oil embargo, and a brutal
historical performances and fees
bear market in 1973-1974 pushed
from various money managers.
the Dow all the way down to 577.
Fee-based programs may not be
In 1974, President Nixon resigned.
appropriate for all investors and past
In 1976, New York City threatened
performance is not a guarantee of
bankruptcy. In 1977, there was an
future results.
energy crisis and in 1980 the Abscam
• Wipe your tears and press on!
scandal rocked Congress.
Don't think about the investment
In 1981, President Reagan and
that failed. Forget it. Don't let a bad
Pope John Paul II were shot. The year experience in the market stop you
1982 witnessed the worst recession
from continuing a long-term invest-
in 40 years. In 1983, the Soviets shot
ment plan. Remember asset alloca-
down a Korean airliner, and there
tion. Some of your investments are
was a record setting market decline
going to go down in value. That's how
in 1987 of over 22 percent. The junk
a well-diversified plan works.
bond debacle took place in 1989. On
• Be sure to have an adequate
Aug 2, 1990, Iraqi troops invaded
amount of long-term care and life
Kuwait setting off the first Gulf war.
insurance.
Of course, we all know that on
Along the way, people often ask
Sept. 11, 2001, the World Trade
me about stock market crashes
Center in New York City was attacked and investment losses. It's true
and along with the horror of the
that investing in the stock market
event itself, markets around the
involves risk. However, with proper
world closed and an uncertain Wall
diversification the risk to me seems
Street opened six days later down 15
less than not investing at all. I've
percent.
seen wealth and savings lost, but
What do we do during these
stock market crashes were usu-
turbulent times? It's easy to say in
ally not the sole cause. Get a good
hindsight that during these dips in
adviser, make a plan and stay the
the market, we should have invested
course!
more. But how does one know?
During these (and so many other)
Provided courtesy of Norton Stern, a reg-
events, which of us succeeded in
istered principal with Franklin Financial
attaining our investment goals and
Investments, Southfield. (248) 262-8810.
which of us did not?
Investment products and services are
From my experience, here are
offered through Wachovia Securities
some investing rules to consider.
Financial Network, LLC. This material is
• Have a plan. Know your time
distributed solely for information pur-
frame and your comfort level for
poses and is not a solicitation of an offer
investing to meet your goals. Get
to buy any security or instrument or to
advice from accountants and tax
participate in any trading strategy.
attorneys in setting up your plan.
• Diversify. Wealth is not obtained