Money: Trusting a pro with your nest egg

I read this article today and would like to share with you. Very interesting information regarding your financial planner.

Rule of thumb: Never sign your papers on your initial meeting with your financial adviser. It is important to sleep on it, check things out. I guess this is applicable to every life changing decision.

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NEW YORK (Money) -- Question: I recently retired and visited a Certified Financial Planner on the advice of a friend. He developed a portfolio for me, at no charge, and presented me with an investment plan for a fee of 1.35% per annum. I scrutinized all the paperwork he sent me. It seems that in addition to the 1.35%, there are a number of hidden fees, including various fund fees within the portfolio that he said nothing about. What should I do?

The Mole's Answer: The first thing you should do is pat yourself on your back. I can tell you that I've never actually met anyone who scrutinized all of the paperwork their financial planner sent them, before entering into a relationship. I'm impressed.

continue reading: Money.CNN.com

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The Statement of Cash Flows.

I would like to share some useful information as I continue to learn it myself.

The statement of cash flows reports cash receipts and disbursements related to the three major activities of a firm:

1. Operations are cash transactions associated with running the business.
2. Investments are cash used in or provided by the firm's investment activities.
3. Financing is cash raised from the issuance of new debt or equity capital or cash used to pay business expenses, past debts, or company dividends.

Source: Nichels-McHugh: Understanding Business, 8th Edition page 471