How do I use the newsletter?

Five Easy Steps to Using The Airways Advisor:

1. Choose a model portfolio to follow.

2. Change your paycheck contributions to go into the money market fund and then once or twice per month, move this money into the current funds OR you can make the contributions match the portfolio percentages and update them each time the model is changed.

3. Check your account and compare it to the model portfolio you chose in step 1. Do they match (within a few percent either way)? If so, go to step 4. If not, you've got some work to do to make them match.

4. We recommend you take a few minutes daily and check the fund prices. If any fund price goes lower than its stop-loss price, sell it and move the money to the money market fund until further instructions.

5. That's it! Relax!

I can't open the .pdf version of the newsletter. Help!

In virtually every instance of a problem opening the PDF file, the problem was that an old version of Adobe Reader was installed on your computer. You must take the following actions to solve that problem...

1. Uninstall the old version of Adobe Reader by going the "Control Panel" and choosing "Add or Remove Programs" (or its equivalent - it's called different things in different versions of windows).

2. After step 1, go to the Adobe website and download the newest version of Adobe Reader. The website address is [http://www.adobe.com/products/acrobat/readermain.html]. This may change in the future, but it will always be on the Adobe website. The Reader program is FREE. Download it to your desktop.

3. Go to your desktop and double click on the Reader file to install and follow instructions. After installing, reboot your computer.

4. Try to open the newsletter PDF file again.

If you change the portfolio recommendation, should I also change my future contributions?

There are really two approaches to doing this. Neither is wrong.

Approach A: change the allocation to avoid having small amounts in funds we don't recommend owning.

Approach B: we think it's a whole lot easier and keeps your life simpler to just change all your future contributions to the money market fund. Then, when we change a model, you can just sweep all available cash into the new allocation.

This is how we do it.

Will you please explain the "stop-loss" values to me?

The stop-loss values are there to protect you between issues of the newsletter. If the fund price declines below the stop-loss price, immediately sell the position and put the money in the money market. Wait for further instruction.

Will the 401(k) plan provider set an automatic stop-loss for me?

No. Unfortunately, you must do this yourself. On the other hand, we're talking about your future and someday you'll look back in retirement with lots of satisfaction that you made it happen.

Where can I get current prices for the funds in my 401(k) plan?

Just two places.

First, you can log onto your company's 401k website and see all the current prices.

Second, you can call your company's 401k 800 number and get current prices.

There may be some funds carried in the newspapers, but don't rely on them. Many 401k versions of popular funds (take Fidelity Magellan for instance) have a different price in the public version that is reported in the newspaper. The only thing you can rely on when you read the newspaper is that if the public version increased in price, the 401k version did as well. To know for sure, use one of the two ways above.

I was on a trip and didn't sell when the fund hit the stop-loss. Should I still get out now?

The stops are there to protect you. If you missed this one, and the fund goes back up above the stop loss price, continue to hold until it violates it again. You were lucky to escape the bullet on that one. If it goes below the stop loss price again, sell. Note: If you continue holding, you're on your own. We won't be reporting stop-loss prices for funds the models are not holding. So either use the old price you missed the first time, or make up something you like better!

In the future, follow the stops closely. Every severe decline will start with a 5% loss! The only way to protect yourself from large losses is to be willing and disciplined to take small losses. A 5% loss is easy to make up with a 5.26% gain. A 20% loss requires a 25% gain just to get back to even. How often can you easily score a 25% gain? Not as often as you'd like.

Do I rebalance my account every time I get a new newsletter?

No. For example, suppose you purchase a 25% position in a fund and after two weeks it has grown to 28% of your portfolio. The newsletter model you're following may still show that position as 25%. There is no reason to rebalance if there are no other changes recommended. Let it ride until the newsletter recommends a change. If you rebalance too soon, you are eliminating the potential of your winners to grow.

How do I make the trades in my account?

Either on the web site or call the 800 number.

Am I supposed to do anything with the fund rankings?

No. We provide the fund rankings because some members use those numbers and put together their own investment strategy. If you're following a model portfolio, you can safely ignore the rankings and just consider them background material.

Do you always pick the top ranked fund to buy in the models?

No. The rankings reveal which funds are actually "earning their keep" currently. By ranking based on Ulcer Performance Index (UPI), funds that are in low volatility up trends tend to move to the top of the rankings. More aggressive models may use more volatile funds. Also, the rankings often change from one issue of the newsletter to the other. Once we own a good fund, we will recommend holding it until it violates its stop-loss value, or until the environment forces us to reduce exposure to equities.

If I can't check for the newest newsletter, can I call your office for the information?

Unfortunately, there are thousands of you and not nearly as many of us to answer your calls about things already printed in the newsletter and posted on the website. These days there is almost universal access to the Internet throughout the world. Just travel with your user ID and Password and you will always be able to retrieve the information you need.

Will you email us to tell us when to sell a fund?

No. Every issue of the newsletter says, "Watch those Stop-Loss Prices!" That's your number one job. Check regularly. Don't become complacent. It takes far less time to check the prices than to try to make up large losses.

What do I need to know BEFORE I sell a fund? What would cause a drastic drop in a fund price?

The SEC requires the funds to distribute the accrued dividends and capital gains at least once per year. The share price will drop and each shareholder get additional shares, if the money is reinvested. This is normal. You do not lose money when a dividend is paid. Nor is it a reason to sell a fund. Be aware that other funds will probably also do the same thing. Check carefully before you sell. If a sudden price drop is caused by a distribution, do not sell. We will send out new stop-loss prices as this happens.

Can I download the newsletter from any computer?

Yes, you can download the newsletter from any computer in the world that has Internet access.

Do I need the email that is sent to me announcing that the most current issue has been posted to be able to download it?

No. Simply enter the website address into your browser: www.airwaysadvisor.com , enter your login information and you can check to see if new information has been posted.

When I access the site and try to log in, I receive a message telling me my password and/or login is incorrect?

Double check that you have typed in the correct information first. If you still receive the error message, go into your Internet Options and delete your cookies and/or temporary Internet files. Close the browser, reopen it and try again. This almost always fixes this problem.

When I try to download the issue it won’t finish loading. It seems to lock up.

After clicking on Option 1, instead of opening it, choose Save and save it to your Desktop. Close your browser and open the file from your desktop instead. If it opens without any problems, then there are configurations on your PC that need to be changed.

I got a duplicate error message when I tried to renew!

You must wait at least 15 minutes before trying again. If you received a declined error the first time and then tried again within 15 minutes, you will get a duplicate error message. More then likely, your decline was because you used the wrong expiration date. Wait the 15 minutes and make sure to use the correct date and if you have the Security Code, use that too.