T. Rowe Priceless

March 31, 2009

As a T. Rowe Price account holder, I am truly lucky to be able to receive their quarterly magazine T. Rowe Price InvestorInsightful Strategies for the Informed Investors which offered up the following gems in their most recent issue:

“With the markets down and an uncertain economy, it may be tempting to cut back on investing, pay only the minimum toward outstandng debt, and turn to credit for new purchases. Doing so, however, can be financially detrimental, eroding your overall net worth.”

Oh really?!? Who are these people? Maybe people who have lost their jobs or are making less money as a result of the economy and have few other options, but who would find it “tempting” to consciously just put themselves in this undesirable position. And iIf one’s earnings have remained unchanged then what happened to the rest of the money? There’s no mention in he article about the virtues of increased cash reserves, just senseless statements like above encouraging you to eliminate debt so you have more money to invest in their funds.

Later in the article, Stuart Ritter, a certified financial planner with T. Rowe Price, suggests:

“When reviewing your mortgage options, consider that a fixed-rate mortgage usually provides the most predictability because your principal and interest will not change over the life of the loan.”

Wow, so let me get ths straight Stuart, the FIXED-rate mortgage with an unchanging, or fixed, principal and interest payment is “usually” more predictable than a mortgage with…say…an adjustable rate where no one can predict where the rate will be in the future? I’l have to ponder that one a while to realy be able to grasp its insightfulness, but in the meantime, please jack up the fees on my mutual funds so that you can afford to add additional pages to this invaluable financial resource. I mean 26 pages is hardly enough to convey such wisdom. On second thought, why not just print it on a softer, two-ply, easily torn paper so that this bathroom reader might truly be of some use to me.

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