Friday, October 02, 2009

Merrill-Lynch

What's with M-L? Are they pushing investment in U.S. swindlers?

At work we have a pretty nice investment package where the company matches our contributions up to 6% of our income. Yesterday we had a Merrill-Lynch rep come to go over our plans with us. I had chosen a plan that is less safe (no bonds) and included a large percentage of international companies. The rep suggested I include more "less risky" U.S. companies, and specifically recommended a package that included a number of banks and financial institutes. At the same time, she showed me the earnings this past year, which as you may guess, were far better for the international companies. I told her I was satisfied to continue betting on the ones I have.

And she kept saying that I was willing to take more risk than most people but calling me "risk averse."

I admit I probably could use advice in financial matters, because I know zilch. But I don't think she's the person I'd want to take advice from. I don't have enough money to worry about, and our plan provides that no matter what the stocks do, we cannot lose the actual money we put into the plan. So I figure whatever I gain is free money. Why not take the most risk? It's somebody else's money.

And I know that "risk averse" does not mean willing to take risks.


....but hey, do what you want....you will anyway.


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