Doug Fabian - the Mav

Top 18. Jan 29, 2001 4:07 PM

» snaimon - Re: The Mav is Full of It

In response to message posted by DennisL:

I agree with your "righteous indignation." Thanks for posting that article.

However, the fans in radio-land LOVE him. And, his loyal followers are WAITING for him to give the BUY signal to dump it all into the market, all 100% as soon as the S&P and another index (not sure if ANY will do or if he is waiting for the DJIA) crosses the 39 weekly average.

His ratings in Chi-town have gone up 300% from the last ratings period AND, instead of just being on 1 LA (West Coast) and 1 Chicago station LIVE, he is now on 100s (?) of business talk radio affiliates, some for 3 whole hours.

He is selling his Maverick Advisory services, either on the web or in hard copy. Just like someone else we know and "revere," no?

Thanks again.

Stan

-- posted by snaimon

Top 19. Jan 29, 2001 4:32 PM

» DennisL - To Stan re: The Mav is Full of It

In response to message posted by snaimon:

As I read your reply to my post containing Fabian's ten worst list, I formulated my reply. When I got to the end of your reply, I saw that you wrote exactly what I was going to write in my reply:

He is selling his Maverick Advisory services, either on the web or in hard copy. Just like someone else we know and "revere," no?

Isn't it amazing how the "sheeple" out there fall for this stuff? Even I am guilty of it. I subscribed to Brinker's newsletter for two years, until he started wheeling and dealing in QQQ last fall. Then I woke up and smelled the coffee and cancelled.

I listened to this Fabian guy once, soon after this Fabian discussion thread here at Suite was started. I swear, I thought I was listening to a used car salesman.

Hucksters, shysters, and sharks...the world's full of 'em.

Remember that song from The Wizard of Oz that went, "Lions and tigers and bears, oh no! Lions and tigers and bears, oh no!"?

How about, "Hucksters and shysters and sharks, oh no! Hucksters and shysters and sharks, oh no!"

8-)

-- posted by DennisL

Top 20. Jan 30, 2001 5:40 PM

» snaimon - Re: To DennisL - The Mav is Full of It

In response to message posted by DennisL:

Thanks for your GREAT reply! I started this thread so that people would as you put it "wake up and smell the coffee." I hope more of his avid fans and followers read these posts and follow YOUR lead!

Used car salesman..... great image!

1. He is so "in-bed" with his sponsors and has them on as guests.

2. He plugs his dad's book and steers callers to his dad's seminars and investment service.

3. Ditto his own stuff, like someone else we know and "revere."

4. All his web charts and stuff USED to be free. Now there is still a free section, but you don't get the Mav's comments and flag signals. You have to pay for that now.

That aside, I think a few of the things he says are noteworthy & positive.

For example, he rightly poo-poos the Wall Street hype.... Barbara Streisand he calls it.... BUY, BUY, BUY and never sell.

Example 2: you SHOULD have goals for investing.

Example 3: you should know when you are going to sell.... and I might add how much you will sell. I don't think BUY AND HOLD FOREVER is a totally accurate description of the advice Rande and Kirk preach. IF you are asset-allocating as they preach, then you must SELL or SELL and REINVEST to accomplish that AA.

For "skittish" investors (maybe investor is not the right term here -- maybe TRADER?), perhaps a 10% lower stop loss is wise. In 2000 a volatile tech fund we held (still hold) reached what I thought was my PRICE TARGET (Feb/Mar), so I sold 1/7 of the shares. We had to pay CG tax on it. And maybe I should have sold MORE. Fund is down 75% from that time NOW. Used proceeds to pay off mortgage, invest in bonds and pay estimated taxes.

Stan

-- posted by snaimon

Top 21. Jan 30, 2001 6:06 PM

» Kirk - Re: To DennisL - The Mav is Full of It

In response to message posted by snaimon:

I started this thread so that people would as you put it "wake up and smell the coffee

It was a good idea and appreciated by many lurkers besides just us regulars!

You got that right! 8)
I'm MUCH more active than Rande but that is because I've had a run of good luck (skill?) picking stocks that grew much faster than funds so my portfolio has move volatility, thus I can buy and sell more often. The hardest part for me is the selling as it means Uncle Sam and the State get some of the gains.

-- posted by Kirk

Top 22. Jan 30, 2001 6:13 PM

» Rande - Re: Re: To DennisL - The Mav is Full of It

In response to message posted by Kirk:

Let me just put it this way -- anyone who believes "buy-and-hold" means "buy-and-forget" has been misinformed.

-- posted by Rande

Top 23. May 21, 2001 5:53 PM

» snaimon - Maverick Investing Flash (May 16, 2001)

----------------------------------------------------------------------
Maverick Investing Flash -- Your Weekly Advisory for Building Wealth
----------------------------------------------------------------------

By Doug Fabian
Editor, The Maverick Advisor
President, Fabian Investment Resources
Host, Maverick Investing with Doug Fabian
http://www.fabianlive.com

MUST-SEE EVENT!!! Doug Fabian's appearing with Money Master Dick Fabian and Fabian Financial's Mike Kuhn at the Huntington Beach Central Library on Tuesday, May 22 from 7-9 pm. You'll learn how to implement the Maverick Turnaround Plan in your portfolio, what funds Doug's looking at for the next buy, and when you should consider a money manager. With the possible new advance and Maverick Buy signal ahead, this is one event you can't afford to miss. Register now!
http://www.fabianlive.com/store/home.tpl

******************************************************

IN THIS WEEK'S EDITION (Volume 24, Issue 20)

* MARKET TRENDS: Start of a New Uptrend? Or Sideways Ho?

* MAVERICK INVESTING: What Not to Buy in the Next Market Advance

* CURRENT POLL: What Will You Do Now that the Fed Has Cut Rates?

* SATURDAY'S SHOW (5/19): What's the Market Telling Us Now?

* RADIO SHOW HIGHLIGHTS (5/12): Maverick Investing A to Z

******************************************************

MARKET TRENDS: Start of a New Uptrend? Or Sideways Ho?

The market's reaction to yesterday's 1/2 rate cut? Depends on what you're looking at.

With everyone and their mother expecting the move, stocks gave the big yawn to Greenspan's & Co's decision on Tuesday then promptly turned around and rewarded investors with solid gains today (chalking up 342.95 points on the Dow with the Nadaq gaining 80.83).

Schizophrenic? No, typical of a market that's struggling for a clear direction.

Yes, stocks historically rise in the 12 months following a rate cut (and we've just had 5 good ones with the possibility of another to come). But keep in mind that the advance may have started today... or it could wait until 11 months from now.

That's why it's important to keep your eyes on the true market indicators -- the trends.

Over the past few weeks, we've seen a nice rally in leading indices but it remains to be seen if it can hold. With the rate issue out of the picture until the Fed's next meeting in June, the market's going to start focusing on second quarter earnings. That means even with today's action, it's possible that leading indices could continue in a sideways pattern, at least for awhile longer.

How will we know when the next market advance is really on the way? Look for these key index levels:

* Dow Industrials 11,000. If this blue-chip bellwether can continue to trade, above the psychological 11k mark it'll be the first time since September 2000. It's there now (closing today at 11,215) but has sold off at this point in the past.

* S&P 500 1300. While coming off its lows in recent weeks, the S&P hasn't seen the other side of 1300 since February 16. If it can escape new selling pressure at this point, we could have something to write home about.

* Nasdaq Composite 2200. This index has been all over the board this year, trading between a high of 2859 and low of 1638. Since it hasn't visited 2200 since March 13, a clear breakout above this point could help keep it on the right track.

Bottom line: the status quo cash recommendation remains until a true uptrend develops. We're getting close, but now's definitely not the time to jump the gun. (Tempted? Keep January's gains and the Nasdaq's 25%+ loss immediately afterwards in your mind.)

To keep in touch with major trends in the S&P 500, Nasdaq Composite, Wilshire 5000, Dow Industrials and Russell 2000 indices, be sure to check out our trending pages for a graphical look at the market's true direction.
http://www.fabianlive.com/tools/home.html

******************MAVERICKS ARE NEARING A BUY!*******************

If you're not already receiving my Maverick Advisor service, consider this RISK-FREE offer before the next BUY signal. You'll get my stock fund RECS and my exchange-traded fund picks. Plus,
you'll gain access to the web's ONLY screener with 4, 8, and 12-week performance sorting. 6-month "no-questions-asked" guarantee if you're not completely satisfied!
http://www.ppi-orders.com/index.htm?prom...

*****************************************************************

MAVERICK INVESTING: What Not to Buy in the Next Market Advance

As a Maverick, you've no doubt been gearing up for the next broad-based market advance with me. Running performance sorts for your risk category,
making a buy list. But in addition to knowing what to add to your portfolio once all systems point to go, do you know what to avoid? Here are my quick guidelines for what NOT to buy:

1) Any fund/ETF outside your risk tolerance level. Don't let your judgement get clouded by any strong 4, 8 or 12-week gains you see in the aggressive vehicles. If you're not an aggressive investor, these options aren't for you, especially since they'll experience large losses if the market suddenly turns. As I've said before, you can still meet your long-term financial goals using the Moderate or Conservative Growth choices.

2) Balanced/Asset Allocation or Blended funds. Balanced or Asset Allocation funds hold a certain amount in equities (typically 60%) with the remaining balance in bonds and/or cash. Blended funds hold both growth and value stocks. Both are designed to limit risk by spreading their assets among these different classes. But while that may be okay during market declines, these mixtures will hold back your overall performance in a solid advance. Instead, Mavericks limit risk by moving into money market funds when the market falls - market advances are when we need to step on the gas.

3) Sector-specific funds. Granted, most diversified funds have a large allocation to a certain sector of the market (be it technology or finance stocks to name a few). But if you're looking at a fund with over 50% of its assets dedicated to one market sector, you have a sector fund. These are more aggressive than diversified funds and require their own set of special buy and sell rules. If you're not ready for the added risk and monitoring, steer clear. (Not sure if sector investing's right for you? Check out
"Sector Strategies that Beat the Bear" at http://www.fabianlive.com/.)

4) Lemon Funds. As you know, a Lemon is any fund that has underperformed its peers by 25% over 12 months and lagged in the 3 and 5 year categories. Sure some may be posting good gains right now but keep in mind that it's not what a fund has done or may do for you lately, but what it will do for you in the long run. Stick with funds that show solid short-term strength but also show the ability to stay on par or exceed the performance of its peers.

Basically, there's no reason to select a Lemon if other funds, are performing just as well. For a list of the latest Lemon Fund crop, tap into
http://www.fabianlive.com/tools/home.html

CURRENT POLL: What Will You Do Now that The Fed Cut Rates?

Were you waiting for Alan Greenspan and his Fed buddies to act before you recommitted to the market? Now that they have, are you changing your
investment strategy to take the move into account?

Sound off on yesterday's rate move and tell me which action best reflects your current plan of attack.

With the Fed stance, are you going to...

a.) Move more of my stock assets into bonds or cash. I think the Fed is too far behind to save the economy.
b.) Transfer more of my cash holdings into stocks and stock mutual funds.
c.) Wait to see how the market reacts before I do anything. It's not the size of the cut, it's what Greenspan says about what's ahead.
d.) Change nothing. I let the market trends determine when to be in or out of the stock market.
e.) Change nothing. I buy-n-hold no matter what.

GO to the polls!
http://www.fabianlive.com/tools/poll/pol...

SATURDAY'S SHOW (5/19): Preparing for Wealth, Plus What's the Market Telling Us?

Whether you want to start creating wealth, or already have your nest egg and want to take it to the next level, I'll tell you exactly what to do now.

First, we're tapping into the Money Master Dick Fabian to find out how to create the wealth you truly desire, no matter what your age. You'll also learn when to consider a money manager, and the questions you must ask your current money manager if you expect your portfolio to grow.

Next, have you been toying with the idea of investing but not sure your finances will allow it? Is debt holding you back from getting on the
investment bandwagon? I'll show you how to balance the debt/investment pendulum to get you on the path for Maverick returns ASAP.

Finally, what's today's market telling us? There are some strong signs that point to a new rally, but will it last? Specifically, I'll tell you:

* What I'm waiting for before I recommit to equities.
* Why tech may not be where it's at the next time around and...
* What you need to do to get ready to buy now!

It's Maverick Investing with Doug Fabian. To get on the direct dial, call 888-300-DOUG toll-free from 9:00-12:00 (PST).
http://www.fabianlive.com/radio/on_tap/t...

RADIO SHOW HIGHLIGHTS (5/12): Maverick Investing A to Z

You can put the Maverick Investing principles to work in your portfolio to build the wealth you desire. I'll show you how. Plus you'll learn about the empowerment, the goal setting, why stocks, why funds, why selling is the most important decision an investor can make, why Wall Street wants your money, how you can get what you want from them.
http://www.fabianlive.com/radio/show_arc...

Exercise Your Right to be Rich,

Doug

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Copyright (c) 2001 Fabian Investment Resources. All rights reserved.

-- posted by snaimon

Top 24. May 22, 2001 11:17 AM

» Kirk - 100% long, WITH 5% Stop.

http://www.suite101.com/discussion.cfm/i...
Author: CaptRon
Date: May 22, 2001 10:27 AM
Subject: Re: Fabian Dan

BTW & FWIW, Doug Fabian did issue a buy signal at 23:09 yest on his "Maverick Investing Hotline" 100% long, WITH 5% Stop.

-- posted by Kirk

http://www.fabianlive.com/tools/poll/pol...

Top 25. May 30, 2001 3:17 PM

» snaimon - no mention of 100% invested in latest FLASH

By Doug Fabian
Editor, The Maverick Advisor
President, Fabian Investment Resources
Host, Maverick Investing with Doug Fabian
http://www.fabianlive.com

MUST-SEE EVENT!!! Dick and Doug Fabian are appearing at the Downtown Chicago
Marriott on 540 North Michigan Avenue, June 7, from 7:00 - 9:00 p.m. It's Maverick Investing 101... how to select stock funds and ETFs the maverick way! Plus, Dick will show you the steps to turnaround your portfolio and become a self-made millionaire. Admission is just $10.00 per person and seating is limited. So register today! Call 1-800-391-1118 Ext 280 or visit the link below!
http://www.fabianlive.com/store/home.tpl

******************************************************

IN THIS WEEK'S EDITION (Volume 24, Issue 22)

* MARKET TRENDS: Knock, Knock, Knocking on the Market's Floor

* MAVERICK INVESTING: Millionaires Pay Themselves First!

* DEBT BUSTER: Why Should I Check My Credit Report?

* CURRENT POLL: How Will the Tax Cut Plan Affect My Portfolio?

* SATURDAY'S SHOW (6/2): Tax Cuts and Your Investing Dollar!

* SHOW HIGHLIGHTS (5/26): Encore Presentation of Maverick Investing A to Z!

******************************************************

MARKET TRENDS: Knock, Knock, Knocking on the Market's Floor

Is the ongoing energy crisis casting a black cloud over the stock market? Is it too dark to see the light at the end of the bear cave?

Granted, 5 days of selling pressure is unlikely to make anyone jump for joy. But if you've been using the recent market strength to accomplish a short-term objective... say, make up for your tech losses... you're going to meet with many disappointments. Profit warnings, energy woes, recession fears, interest rate uncertainty -- these are short-term concerns that affect the
emotions of near-sighted investors.

Conversely, when you keep your eyes on your long term-goal -- if you stick to your long-term pursuit of achieving 20% compounded growth over the life of your portfolio -- you will be successful. No doubt about it!

As mavericks, we know that we can't arrive at our goal by losing half our money in a bear market; that's why we sold our aggressive stock assets last September and the rest of our stock assets last October.

At the same time, we can't achieve our pursuit by parking our principal in money accounts forever; that's why we move our money back into stocks when the prices of major benchmarks rise above their trends.

Right now, the Dow, Russell and Value Line are above their trends, whereas the S&P 500 and the Nasdaq are not. What this means is that tech and large-cap growth have yet to confirm intentions to go higher, whereas the large, mid and small-cap value stocks are still trending higher.

If you are already in stock assets, I trust you've concentrated your attention in the value arena. But remember to control downside risk. If the Dow and Russell and other indicators of market performance break below their trendlines, be prepared to sell. You never want find yourself in a position where you're picking yourself up off the market floor.

And what if the S&P 500 joins the other benchmarks above their long-term trends (39-week averages). Then you'll have even more evidence that a broad market uptrend is in full swing!

Stay in touch with the trend charts at FabianLive.
http://www.fabianlive.com/tools/home.html

**********A NEW BUY IS A "MUST" FOR MAVERICK INVESTORS!**********

Worried that the stock market will pass you by... again? Right now, mavericks can get FUND RECS for every portfolio type -- conservative, moderate and aggressive. You can get my favorite choices at Fidelity, Invesco, Vanguard and Janus. You can get my top selections at discount brokers like Schwab. Plus, you can get daily web updates, weekly e-mail or fax reports and my hard-copy monthly publication. And you can get it all with my 6-month, "total satisfaction guarantee." Check it out here!
http://www.ppi-orders.com/index.htm?prom...

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MAVERICK INVESTING: Millionaires Pay Themselves First!

The typical family is "underfunding" their 401ks or other employer-sponsored retirement plans. At the same time,the average family is consuming well above its means. In fact, the most recent numbers on consumer spending and savings habits showed that, despite a slowing economy, percentage increases in purchases are outpacing percentage increases in income.

What does this mean? It means that the average American is buying "feel-goods" with borrowed dollars!

If you're not part of the affluent crowd just yet... but you plan to be... then you need to follow a simple premise of wealth-building. PAY YOURSELF FIRST!

1.) Use your ATM debit card everywhere. Supermarkets, restaurants, drug stores, gas stations. Your ATM card is accepted in more places than an AMEX card, particularly those with a Visa designation. Yet you're not operating
on credit -- you are simply deducting from the cash that is in your account.

What's the big deal over which card you swipe? By using your ATM, you're paying yourself first; you're decreasing the part of your portfolio -- your credit card debt -- that is compounding at -12% to -18%.

In essence, your credit card debt is part of your overall portfolio. And you do not need a mutual fund in your portfolio that loses 18% year after year after year. A -18% return is not the way to create wealth.

2.) Transfer to lower FIXED cards. By now, everyone with more debt than they can stand transfers to 2.9% introductory APRs. Introductory APRs, while they help with large balance transfers, also encourage excessive spending on
the rate within the first six months.

And as you might suspect, nearly all of those attractive intros have regular APRs well in excess of the national average; if you don't pay off your balance in full before the regular APR kicks in, look out!!!

Switch to a credit card that has 10% or less fixed APR. Again, this goes back to paying yourself first. If you switch from a 15% to a 10% card, you are paying yourself the difference between a card that is compounding at 15% and 10%. (On a $5000 balance over 10 years, you would save somewhere in the neighborhood of $7000!!!)

3.) Make tax-deferred investing your NUMBER 1 priority. Your 401k with automatic, pre-tax contributions is the ultimate in paying yourself first. You never spend the money that you save because you never see it in your take-home. The government doesn't recognize the dollars as income today, so you save on your taxes immediately. And, your money compounds tax-deferred until you make retirement withdrawals!

Those that say they can't afford to pay more into their 401k plan, that they need cash flow today, don't realize another benefit of the 401k. When you raise your contribution level from 7% to 10%... you barely see the drop off on your paycheck.

Why not? Because again, these are pre-tax dollars that the government doesn't tax today. The net effect on your bottom-line, after-tax paycheck is
minimal... so just do it! Pay yourself first.

If you still need motivation, let me put it this way... let's say you're an average family with an average household income and you're taking in $50,000 a year. And for the sake of argument, let's say you never get another raise for 25 years. How much would your 401(k) have in 25 years if you put 10% of your pre-tax dollars into it? (At 20%, your account is worth $2.8 million
dollars!!!)

Pay yourself first and become a millionaire!!! See how much wealth you can build over time by checking in at the Fabian Wealth Calculator.
http://www.fabianlive.com/tools/home.html

DEBT BUSTER: Why Should I Check My Credit Report?

Every week, I receive a question or three about credit report accuracy and credit report importance. So I wanted to set the record straight for all Mav Flash readers.

You MUST make absolutely certain that your Credit Report is accurate. 100% accurate! Why? Because it affects every financial application you'll make in your lifetime.

Unfortunately, a great many people have Credit Reports that are filled with errors and omissions. That's because there are so many similar names, address changes and mistaken claims by collectors.

What do you do if your Credit Report has errors? Get them fixed immediately. The Fair Reporting Act says you have the right to challenge your report and have it corrected. In fact, the big 3 credit reporting agencies - Experian,
TransUnion and Equifax - must investigate, respond, or delete a challenged item within 30 days. NO MATTER WHAT!

How do you challenge a mistake on your Credit Report? At Experian, you can call toll-free at 1-800-567-5470. At Equifax and Transunion, you can go to the Contact Us portion of their web sites at equifax.com and transunion.com.

If you've got a debt-busting question for Doug, or you'd like Doug to consider a 401k Makeover, here's the link to get there.
http://www.fabianlive.com/helpmedoug/hom...

CURRENT POLL: How Will the Tax Cut Plan Affect My Portfolio?

Forget the political rumblings for a sec. When it comes to your personal wealth, will this gradual reduction of tax rates over time help or hurt your portfolio?

As an investor, I expect the 10-year, $1.35 trillion dollar, tax cut legislation to:

a.) Significantly benefit my investment portfolio. If it helps me get another $1000-$2000 a year, that's hundreds of thousands in compounding growth for my retirement!

b.) Moderately benefit my investment portfolio. The tax rebate this year will help, but lower taxes over the next 10 years won't put money in my pocket directly.

c.) No change to my investment portfolio. I may be able to spend a little more for some necessary items or pay off some bills, but the tax cuts are
too small for anything else.

d.) Significantly hurt my investment portfolio. The tax cuts will hurt the economy's growth and expand our national debt... ultimately hurting the stock market and my investments.

GO to the polls!

SATURDAY'S SHOW (6/2): Tax Cuts and Your Investing Dollar!

You've heard about the $1.35 billion package over 10 years. You've heard about immediate tax relief in 2001. But what does it all mean for your
investing future?

For example, how beneficial is the $600 married couple rebate in 2001. It depends on how you use it! Let's say you immediately put this in a tax-
deferred account and were able to achieve 20% compounded growth on the principal. How much money would you have in 25 years? $57,000!!!

This June 2nd, I'll talk about:

* What the tax changes are
* How maverick investors can profit from gradual tax cuts and immediate rebates. Plus...
* When and how to put unexpected dollars into the stock market!

It's Maverick Investing with Doug Fabian. To get on the direct dial, call 888-300-Doug toll-free from 9:00-12:00 (PST).

http://www.fabianlive.com/radio/on_tap/t...

SHOW HIGHLIGHTS (5/26): Encore Presentation of Maverick Investing A to Z!

Maybe you've been listening to MI for several years. Or perhaps you're a newbie to my national radio show... and you're getting excited about your financial future for the very first time.

Then this is the ONE week you can't afford to miss. Why not? Because I am going to review ALL of the maverick investing principles... and I'm going to tell you why you MUST discover a new way to invest.

The empowerment, the goal setting, why stocks, why funds, why selling is the most important decision an investor can make. These are just a few of the financial topics I'm going to cover. Tune in and discover what mavericks are doing RIGHT NOW to prepare for the future!

http://www.fabianlive.com/radio/show_arc...

Exercise Your Right to be Rich,

Doug

Maverick Investing Flash is sent out weekly by your request only.

Subscriptions are FREE. Tell a Friend!

To SUBSCRIBE or UNSUBSCRIBE from this FREE e-mail service just visit our website at http://www.fabian.com/tools/flash/fund_f...

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Questions & Comments: Send e-mail to service@fabian.com

-- posted by snaimon

Top 26. Jun 7, 2001 3:25 PM

» snaimon - June 6 Mav Flash

By Doug Fabian
Editor, The Maverick Advisor
President, Fabian Investment Resources
Host, Maverick Investing with Doug Fabian
http://www.fabianlive.com

MAVERICK SEMINAR IN CHICAGO!!! Tomorrow's the day. Doug and Dick will be appearing at the Downtown Marriott on 540 North Michigan Avenue, Thursday, June 7, from 7:00 - 9:00 p.m. Doug will get you jazzed about selecting the best ETFs and stock funds. Dick will show you the steps to turnaround your portfolio and help you pursue your path to financial freedom. Admission is just $10.00 per person. Register now! Call 1-800-391-1118 Ext 280 or visit the link below!
http://www.fabianlive.com/store/home.tpl

******************************************************

IN THIS WEEK'S EDITION (Volume 24, Issue 23)

* MAVERICK INVESTING: IRA Changes You Haven't Heard About!

* MISSION POSSIBLE MAKEOVER: Rollover IRA or 401k. What Should I Do?

* CURRENT POLL: How Will You Invest for Your Child's College Education?

* SATURDAY'S SHOW (6/9): Maverick Investing and Your Personal Finances!

* SHOW HIGHLIGHTS (6/2): Tax Cuts and Your Investing Dollar!

******************************************************

MAVERICK INVESTING: IRA Changes You Haven't Heard About!

Put you political feelings aside for the moment. Forget whether or not you believe the $1.35 trillion tax cut is fair to the American people or whether it even can help the U.S. economy. Instead, let's focus on the terrific new
legislation on Roth, Traditional and Education IRAs.

Let's start with putting kids through college. The vast majority of parents have the goal of investing for their children's educational future. And yet, up until recently, the choices for tax-deferred investing and saving have been abysmal.

The bill before George W. is going to change everything. Most notably, the annual limit of $500 a year is jumping to $2000 a year in 2002.

How big of an impact is this for millions of Americans? Consider an 18-year time horizon for $500 compounding at a rate of 15%. Parents save $44,000, which may not be enough to cover one year of college tuition and costs in the year 2019. In contrast, the ability to put away $2000 in a tax-deferred vehicle means $176,000 for the child at 15% and $300,000 at the maverick growth rate of 20%.

Net effect? The Education IRA has finally become a viable force in college planning. Not to mention that the distributions at college time will be tax-free! And remember, you can have an Education IRA, even if you have Roths and Traditional IRAs.

Speaking of Roths and Traditional IRAs, we're used to those limits of $2000 per taxpayer ($4000 per married couple.) Those will be changing dramatically as well, but they are going to be phased in over the next 7 years.

Specifically, the new contribution limit in 2002 will be $3000 per taxpayer; it moves to $4000 in 2005, and $5000 in 2008. That'll be a max of $10,000 per married couple.

While the phase-in process puts a thorn in the side of tax-savvy investors everywhere, let's take a longer-term perspective. Assume a married couple has $20,000 in their IRAs in 2007... 5 years from now. (That assumes a contribution of $2000 per partner per year and excludes any earnings.) What's the difference between achieving 20% compounded growth over 20 years
on $20,000 with maximum contributions of $4000 for married couples versus the same growth with the $10,000 per married couple limit in 2008?

Before the recent changes in tax legislation, a married couple would have $1.6 million in 20 years at 20% annualized growth. After the new changes? $3.0 million!

If there are any lessons with the new tax bill, it is the criticality of tax-deferral. That's why I continuously make the point with maverick
investors... your tax-deferred money is the most important money you have. Manage it well.

If you're looking for tax-deferred guidance, 401k and IRA help, or you just want to make sure you're doing the right things with your money... consider my Maverick Advisor service. Buys, Sells, Fund Recs, ETF picks, 24/7 web access, customized fund screener, weekly updates, special bulletins... the works! Try the Maverick Advisor for 6 months. If at the end of that time you
don't agree that I've made you wealthier, and helped you to feel more comfortable and confident in your investing, simply let me know and I'll
send you a prompt refund of 100% of your ubscription fee. Click below for details!
http://www.ppi-orders.com/index.htm?prom...

MISSION POSSIBLE MAKEOVER: Rollover IRA or 401k. What Should I Do?

After switching employers, Kevin has $49,000 in a money market account with the American Century fund family (Rollover IRA). He considers himself a moderate maverick and wonders if he should invest in American Century's Growth and/or Ultra funds.

At the same time, Kevin is leery of his new company's 401k program. They only match 25 cents on the dollar; the choices are limited and he questions their quality. He also questions whether the B shares are appropriate for him.

Kevin asks, where should I be looking to invest my American Century money? And... should I max a Roth IRA in lieu of my company's 401k plan?

Let's take a look at the Rollover at American Century first.

Kevin has nearly $50,000 to invest, which tells me that he should be thinking of 2 to 3 stock funds that meet his moderate maverick risk profile. At Am Cent, he has at least 12 stock funds to consider.

Assuming a stock market uptrend, and using the current market strength in small-caps, mid-caps and value, I'd recommend that Kevin allocate 33% to American Century Small Cap Value (where the momentum is) and 33% to American Century Equity Income (where the mid-cap strength is).

What about Kevin's predisposition toward Am Cent Ultra and Am Cent Growth? Kevin needs to look beyond the recent past... where tech and large-cap growth ruled the roost. Nevertheless, an allocation to American Century Growth with the remaining 33% gives Kevin large-cap growth exposure and helps diversify his holdings.

What about getting started in the 401k? Absolutely! Even 25 cents on the dollar is free money. Take it! Not to mention that you fund your 401k with pre-tax dollars, but fund a Roth with after-tax dollars.

Kevin's concern about B shares would be justified in accounts outside the 401k. However, back-end loaded commissions are typically excluded when they are part of a 401k plan.

Kevin's stock fund choices:

* MFS Emerging Growth B (LCG)
* MFS New Discovery B (Small Growth)
* MFS Research B (Large Blend)
* MFS Total Return (Hybrid)

The current strength is in the small-cap area. And since Kevin's just getting started, I'd allocate 100% of those new contributions to MFS New Discovery.

If you'd like the Mav to make over your portfolio, click below.
http://www.fabianlive.com/helpmedoug/hom...

CURRENT POLL: How Will You Invest for Your Child's College Education?

The new tax legislation has brought some beneficial changes to the Education IRA contribution limit, the Roth contribution limits, as well as the rules for 529 College Plan withdrawals. So how do you plan to take advantage? Which will be your vehicle of choice?

a.) Education IRA... now that they raised the limit from $500 to $2000.
b.) 529 College Plan... because I need to get more than $2000 year in a tax-deferred investment account.
c.) Regular or Roth IRA...because my 401k covers my retirement needs.
d.) VUL... becuase the cash value in the insurance policy can come out tax-free at any time.
e.) Taxable accounts... because I've already accumulated my money here.

GO to the polls!
http://www.fabianlive.com/tools/poll/pol...

SATURDAY'S SHOW (6/9): Maverick Investing and Your Personal Finances!

The Mav team is packing its Southern California travel bags and heading to Chicago. Our mission? To empower mavericks in the "Windy City" to take
control of their personal finances.

Debt planning, tax reduction, retirement needs, college education and yes, investing. How do you bring it all together? How do you manage the many
financial areas of your personal life to meet short- and long-term goals?

For instance, the new IRA limits are moving from a $2000 limit today to a $5000 limit by 2008. With the proposed phase-in, how can you optimize your tax-deferred investing and... simultaneously reduce your tax liability down the road. (Or today, if you or your spouse qualify for the traditional, deductible IRA.)

This June 9th, broadcasting LIVE form the "Package" at WCKG in Chicago, I'll talk about:

* How maverick investors can reduce their taxes and invest wisely for future needs
* Why the proposed laws to reduce the scope of bankruptcy filings is causing many to scramble today and...
* Where Chicago's very own Terry Savage stands on using Education IRAs for college investing.

It's Maverick Investing with Doug Fabian. To get on the direct dial, call 888-300-Doug toll-free from 9:00-12:00 (PST).
http://www.fabianlive.com/radio/on_tap/t...

SHOW HIGHLIGHTS (6/2): Tax Cuts and Your Investing Dollar!

You've heard about the $1.35 billion package over 10 years. You've heard about immediate tax relief in 2001. But what does it all mean for your
investing future?

In truth, the rebate and the lowered tax rates will benefit you if the money goes directly to investing. After all, a $600 summer rebate for married couples that goes into a tax-deferred account for 25 years... growing at 20%
annualized compounded growth... that's $57,000!

Yet the biggest bang really comes from the Education IRA limit going up from $500 to $2000 and the 401k limit going up from $10,500 to $15000. Think about how much extra tax-deferred wealth you can build with $4500 more a year!

Getting to the nitty gritty on the things that matter to you most... Roth IRAs, regular IRAs, Education IRAs. It's Maverick Investing with Doug
Fabian.
http://www.fabianlive.com/radio/show_arc...

Exercise Your Right to be Rich,

Doug

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-- posted by snaimon