Business & Professional

FINANCE

The Power Of Planning

I

became registered in the securities
industry in 1968, four years before the
Dow Jones Industrial Average closed
above 1,000. I couldn't help, when the Dow
crossed the 13,000 mark, thinking back to
all of the opportunities missed and for-
tunes made in my almost 40-year career
as a financial adviser.
Now, in the midst of an historical drop
in the Dow, the question now is which
course an investor should take. Do we now
take advantage of what some believe is an
over-sold stock market or do we stay safely
tucked away in cash not wanting to chance
a deep and unforgiving recession?
In 1970, the U.S. invaded Cambodia and
the market dropped. The market dropped
again in 1973 during the oil embargo,
and a brutal bear market in 1973-1974
pushed the Dow all the way down to 577.
In 1974, President Nixon resigned. In 1976,
New York City threatened bankruptcy. In
1977, there was an energy crisis. In 1980,
the Abscam scandal rocked Congress. In
1981, President Reagan and the Pope were
shot. The year 1982 witnessed the worst
recession in 40 years. In 1983, the Soviets
shot down a Korean airliner. There was a
record-setting market decline in 1987 of
over 22 percent.
The junk bond debacle took place in
1989. On Aug 2, 1990, Iraqi troops invaded

Richard Bernstein, a Farmington Hills
attorney, was one of six inspirational ath-
letes honored by the Governor's Council
on Physical Fitness. The six have overcome
great challenges and continue to pursue
physical activity as part of their daily
routine. In June, Bernstein completed an
Ironman Triathlon in Idaho. It took him
more than 14 hours to complete; in the
past 10 years he has completed 10 mara-
thons.

Dr. Jan Rival of Bloomfield Hills, a senior
staff internist at Detroit-based Henry
Ford Hospital, received the annual Fred W.
Whitehouse Distinguished Service Award.
To be honored with the award, a physician
with the Henry Ford Medical Group must
have exemplary clinical practice and/or
clinical research; contribute significantly
to teaching; earn a national reputation in
his field; represent distinguished prin-
ciples of professionalism; and provide ser-
vice on medical group committees. Rival
has held such positions as: governor of the

Kuwait, setting off the first Gulf
War. Of course, we all know that
on Sept. 11, 2001, the World
Trade Center in New York was
attacked; along with the hor-
ror of the event itself, markets
around the world closed and an
uncertain Wall Street opened six
days later, down 15 percent.
What do we do during these
turbulent times? It's easy to say
in hindsight that during these
dips in the market, we should
have invested more. But how
does one know?
From my experience, here are some
investing rules to consider:
• First, don't be Alice. Remember?
"Would you tell me, please, which way I
ought to go from here?"
"That depends a good deal on where
you want to get to:' said the Cat.
"I don't much care where — ," said
Alice.
"Then it doesn't matter which way you
go," said the Cat.
— Alice in Wonderland by Lewis Carroll

• Have a plan. Know your time frame
and your comfort level for investing to
meet your goals. Make certain to have
enough cash on hand in the event of a

Michigan Chapter of the American College
of Physicians, president of the Henry
Ford Medical Association. In addition,
Michigan Chapter of ACP has bestowed on
Dr. Rival the Lifetime Achievement Award
and the Laureate Award — both for his
years of contributions to the college.

Naomi Hazan Maletz,
formerly of Michigan,
has joined the office
of Taft Stettinius
& Hollister LLP in
Columbus, Ohio. She is a
party of the firm's busi-
ness and finance group
Maletz
and will concentrate her
practice in the area of
healthcare representing physicians, physi-
cian groups and healthcare entities.

Several Dykema attorneys have been
ranked by their peers as leaders in their
respected fields as reported in the Best
Lawyers in America guide. Among them

financial emergency. Most
experts advise six months to
a year of living expenses. Get
advice from your financial
adviser, accountants and tax
attorneys in setting up your
plan.
• Diversify. Wealth is not
obtained by stock picking.
Asset allocation can be one of
the keys to investment success.
Diversification can be accom-
plished in many ways, even
for those who can only invest
small amounts. Contact an
experienced financial advisor to assist you.
• Take advantage of your 401-K or 403-
B at work. Consider opening an IRA and
make periodic investments. Look into a
Roth IRA.
In my opinion, fee-based money man-
agers should be a consideration for many
investors. Check with your financial advis-
er to obtain historical performance, fees,
investment objectives and other relevant
information from various money man-
agers. Fee-based programs may not be
appropriate for all investors; past perfor-
mance is not a guarantee of future results.
•Wipe your tears and press on! Don't
think about the investment that failed.
Forget it. Don't let a bad experience in the

are Albert Ernst of East Lansing (energy
law), a member of the Government
Policy practice group; Martin Jay
Galvin of Grosse Pointe Woods (labor
and employment law), a member of the
Employment practice group. Those in the
Bloomfield Hills office include: Maria
B. Abrahamsen of Bloomfield Village,
health care law); Fred J. Fechheimer of
Bloomfield Hills, real estate law; Alan M.
Greene of Bloomfield Hills, land use and
zoning law and real estate law; Howard
B. Iwrey of West Bloomfield, antitrust
law; Joel D. Kellman of Huntington
Woods, real estate law; Ronald L. Rose
of Birmingham, bankruptcy and credi-
tor-debtor rights law; Sheryl L. Toby of
Sylvan Lake, bankruptcy and creditor-
debtor rights law.

Gary A. Krochmal of West Bloomfield,
with the Farmington Hills office of Gary
A. Krochmal PLLC, has been named as a
Michigan Super Lawyer in the 2008 survey
conducted by Law & Politics magazine.

market stop you from continuing a long-
term investment plan. Remember asset
allocation. Some of your investments are
going to go down in value. That's how the
markets and a well diversified plan works.
• Be sure to have an adequate amount of
long-term care and life insurance.
Along the way, people often ask me
about stock market crashes and invest-
ment losses. It's true that investing in
the stock market involves risk. However,
with proper diversification, the risk to me
seems less than not investing at all. I've
seen wealth and savings lost, but stock
market crashes were usually not the sole
cause. I recommend you get a good advis-
er, make a plan and stay the course! LI

Norton Stern is a senior vice president with

Burns Investment Group Inc., Farmington Hills
(248-553-4500). Investment products and ser-
vices are offered through Wachovia Securities
Financial Network LLC (WSFN), member SIPC,

a registered broker-dealer and separate non-
bank affiliate of Wachovia Corp.

Asset allocation and diversification cannot
eliminate the risk of fluctuating prices and

uncertain returns. Burns Investment Group Inc.

and Wachovia Securities Financial Network do
not provide tax or legal advice. Insurance prod-
ucts are offered through affiliates.

Krochmal concentrates
his practice in the areas
of medical malpractice,
personal injury, including
automobile no-fault, and
vaccine injury compen-
sation cases, for which
he
as been admitted to
Krochmal
practice in the Court of
Federal Claims in Washington, D.C.

Paul Hack of
Birmingham, senior vice
president of investments
at Raymond James &
Associates, was recog-
nized by Barron's maga-
zine as one of Detroit's
leading financial advis-
Hack
ers. He has achieved his
success in large part due
to maintaining a long term orientation
and a calm big picture perspective about
market cycles and risk tolerance.
Memos on page A40

November 20 * 2008

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