Advice was on the money

By Carol Hazard

Published: November 21, 2008

To sell or not to sell?

The question was posed by people who sought free investment advice yesterday at the Byrd Theatre in Carytown.

Joe Scott said he came to get input from an unbiased person. "No one is trying to promote their company or sell anything," he said. "This is a wonderful opportunity."

Scott was one of about 25 people who had one-on-one consultations yesterday as part of a Your Money Bus Tour, a financial-education event sponsored by the National Association of Personal Financial Advisors, TD Ameritrade Institutional and Kiplinger's Personal Finance magazine.

Scott is a musician, so he is self-employed. "I have to take care of all my investments myself. I don't have a corporate retirement plan or a 401(k)."

He said he will stay in the market and ride it out. "In this market, it's a bad time to move investments."

About 18 financial advisers from Virginia participated in the 12th stop of the 60-city tour. The advisers were not seeking new clients. They were not handing out business cards. They were offering advice as part of a community outreach effort.

"It's a hard time to be a financial adviser," said Pam Poldiak, an adviser from Roanoke. "We want to protect our clients' investments but we also don't have a crystal ball."

Most people should stick to their financial plans, Poldiak said. "The stock market has always recovered."

If people sell, then it's hard to know when to get back in, she said. Plus, they could miss out on a big upswing in the market, which can come quickly, she said.

Major market indexes are down more than 40 percent for the year.

Al Rackley, who retired from the construction industry and lives in Henrico County, came to find out what to do about his investments. "We have had quite a hit on our mutual funds and annuities," he said.

"One of the big things we were exploring is whether there is something out there where we might be able to recoup our money a little quicker."

And is there such an investment?

"There is no pat answer," his volunteer adviser, Brian Carlton of Lynchburg, said after their consultation.

"It's a paper loss now, but if it's sold, it's a realized loss," Carlton said. "That is what people have to be careful of."

Rackley, a widower, has two children. He and his adviser also discussed the benefits of a revocable living trust over a will, which would need to be probated.

Michael Joyce, president of the Consumer Education Foundation for the National Association of Personal Financial Advisors, said the majority of people seeking advice were older. "But we had some college students."

The next stop on the tour is tomorrow in Charlotte, N.C.
Contact Carol Hazard at (804) 775-8023 or .