SYMPTOM |
PROBLEM |
REMEDY |
| Many stocks in portfolio are down 50% or more |
You're taking too much risk |
Sell your losers on next 10% rally and reinvest in our model portfolio selections |
| Mutual fund has lagged most similar funds 3 years in a row |
Mediocre management or high expenses |
Switch to similar fund on our recommended list |
| One stock amounts to half your net worth |
Dangerous lack of diversification |
Sell until no stock accounts for more than 5% of total portfolio |
| Unpriced partnership units make up more than 20% of portfolio |
Illiquidity, or lack of diversification |
Ask broker for current bid; if none, call NAPEX AT 800-356-2739 |
| Switched in and out of same mutual fund 5 times in past year |
Overtrading or emotion-based trading |
Start an automatic monthly accumulation plan |
| Annuity is paying 2% above comparable Treasury paper |
Insurer may be deep in junk bonds |
Check insurer's rating with Moody's or S&P; accept only AAA or AA companies |
| Gold-related assets (including coins) exceed 20% of portfolio |
Untimely posture for now |
Sell down to 5% limit |
| Real estate rents don't pay mortgage, insurance and taxes |
Untimely posture for now |
Dispose of properties with negative cash flow |
| Frequent unsolicited calls from brokers |
You've bought too much full-commission merchandise |
Find a discount broker |
| Mining partnership promises to deliver gold below spot price |
Probably a scam |
Check background of promoters with SEC (800-732-0330) |
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