Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #5
Date: Sat, 8 Mar 1997 08:11:21 -0500 (EST)
Articles sorted by: [Date]
[Author]
[Subject]
persfin-digest Saturday, March 8 1997 Volume 04 : Number 005
IN THIS ISSUE:
ADVERTISEMENT: MCI FAX BROADCAST SERVICE
My Excellent Online Buying Experience With TurboTax
FHA Mortgage Question
RE: To Lock or Not To Lock (Interest Rate)?
How Difficult Is It To Copy from One Computer To Another?
Re: CD's, treasuries Questions
Re: Can I Open an IRA While Contributing to a 401(K)?
Re: To Lock or Not To Lock (Interest Rate)?
UIT's?
Re: PBHG Growth, J1 visitor tax form
Need E-Mail Addresses of PC Advice Responses
Re: Paying Off The Mortgage
just locked-in a mortgage rate....
Year 2000 Issues - Do a 30 Year Bond Calculation on Your Spreadsheet
Negative Amortization and Taxes
How To Test Your PC for Year 2000 Problems
Re: possible incorrect IRA deduction
New Long Term Care Insurance Info Page
Re: MLM with the Debt Mastery System?
====================================================================
Neither Ira Krakow nor Persfin-Digest is responsible for the content
of any Persfin-Digest Sponsor Ad. Posting a Sponsor Ad does not
indicate endorsement of the product or service by Ira Krakow or
Persfin-Digest. You're on your own.
This issue is sponsored by:
Oppenheimer Software - An Official MCI Messaging Agency. Features:
MCI Fax Broadcasting Service
MCI Fax Reply Service
MCI Connect for cc:Mail
MCI AutoForward
internetMCI
Lan Access to MCI
Telephone: 800-390-9379
FAX: 800-492-6862
E-Mail: Connect-Sales@mcimail.com
Also sponsored by Wholesale Products. Why pay retail?
Visit our PAL/NTSC/SECAM electronics site, featuring VCRs, converters,
TVs, appliances, etc., geared to the international marketplace, at:
http://www.wholesaleproducts.com/non-usa.html
Audio Specials:
Denon AVR-5600 Dolby Digital Receiver $1,895 + s&h
Denon AVR-2600 Dolby Receiver $725 + s&h
Calculators:
HP 48GX: $180.28 + s&h
HP 48G: $ 91.78 + s&h
Hot Specials on Canon ELPH Cameras, Digital Cameras, Russian Translator,
220 Volt products!
JVC GR-DV1 Camcorder Now Reduced to $1695.95. PAL Version $1699.95.
Visit our Blank Videotape Kiosk at:
http://www.wholesaleproducts.com/videotapekiosk.html
Visit our newly updated and expanded Web site, at:
http://www.wholesaleproducts.com
Special Orders: wholesal@shore.net
Phone: 1-800-574-7253 (9am - 5:30pm Boston time)
Fax (24 hrs): 617-438-8307
For information on placing a Persfin-Digest Sponsor Advertisement, e-mail
ikrakow@shore.net
====================================================================
Personal Finance Bookstore: http://www.krakow.com
Personal Finance Web Sites: http://www.tiac.net/users/ikrakow/pagerefs.html
To post a question or an answer, send email to: persfin-digest@shore.net
The messages posted to the Persfin-Digest are opinions and are not
intended to substitute for qualified professional advice. Subscribers
should seek the services of qualifed professionals for such advice. The
publisher, Internet provider, advertisers, and Digest contributors cannot be
held responsible for any loss incurred as a result of the application of any
of the information provided here.
Copyright (c) 1995, 1996 Ira Krakow
REQUESTED SUBSCRIPTION FEE: $20/year. Monies will go directly to defraying
publication costs, compensating for the time and effort of the Publisher,
and enabling the Publisher to create additional useful sources of
information on the Internet. Send cash, check, or money order (U.S.
funds), payable to "Ira Krakow", to:
Ira Krakow
12 Clearview Road
Stoneham, MA 02180-1918
Contribution will be acknowledged by e-mail if you include an e-mail address.
To Subscribe: e-mail majordomo@shore.net, text: subscribe persfin-digest
To Unsubscribe: e-mail majordomo@shore.net, text: unsubscribe persfin-digest
----------------------------------------------------------------------
Date: Sat, 8 Mar 1997 07:35:15 -0500 (EST)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI FAX BROADCAST SERVICE
MCI Fax Broadcast Service
A High Volume, Very Low Cost, Fax Broadcasting Service
Send 50, 500 or 5000:
Newsletters, Catalog Revisions, Late Changes, Political
Announcements, Product Updates/Recalls, Legal Class Action
Notifications, Special Events, Party Invitations, Bids,
New Rules/Regulations, Advertisers Deadlines, Investor
Relations, Portfolio Advisories, Contract Opportunities
...in minutes, using your Fax Machine or Delrina WinFax Pro
Secure and Private
Free List Management Software
Cost Allocation/Accounting Reports Available
Automatic Retries on Busy Fax Numbers - up to 24 Hours
Toll Free 24X365 Customer Support for those Late Night Jobs
Low Cost List Conversion Services available (dBASE, ACT!, and more)
Rates as Low as $.17/minute (domestic) Off Peak for Select Customers
Oppenheimer Software Authorized MCI Messaging Agency
Tel:800-390-9379 E-Mail:Connect-Sales@mcimail.com
Fax:800-492-6862
------------------------------
Date: Sat, 8 Mar 1997 07:51:39 -0500 (EST)
From: The Editor <ikrakow@shore.net>
Subject: My Excellent Online Buying Experience With TurboTax
I'm the unofficial tax preparer for my family. I had earlier bought
the Federal and Massachusetts versions of TurboTax. Then, my son, who
works in Pennsylvania, sent me his tax information and I discovered I
needed the Pennsylvania state version.
Looking through the Intuit documentation, I saw that I could buy the
state versions and download them online at:
http://www.intuit.com/turbotax
Benefits:
1) No sales tax (if you don't live in the state that TurboTax does
business in).
2) No shipping charges.
3) No diskettes and extraneous advertising to clutter your office.
4) It's available immediately, instead of up to a week.
The online ordering, via a secure SSL form, was easy. My credit card
was processed in seconds. The download was automatically set up.
I started the download and, unfortunately, did not wait until it
completed, although I thought I did. I called tech support
(1-800-4INTUIT) and was connected within 1 minute to a tech support
person.
Having once managed a tech support operation and doing database support,
I've been in his position and I know quality when I see it. THIS WAS THE
MOST PROFESSIONAL TECH SUPPORT CALL I'VE EVER EXPERIENCED. The person
calmly directed me through the different options and possibilities, first
within TurboTax, then within Windows95 (we even went into Safe Mode to
retry the install), and finally, directing me to a Web page where I could
retry the download. All the time, he was entering notes in his database
and when he didn't have the answer, he asked his support resources (within
1 minute he was back) for options.
The retry worked. The install was as clean as if I had the diskette.
My conclusion: this is the future. Short Egghead and CompUSA. This was
not only better than waiting for the UPS truck but also cheaper.
Any other experiences?
Ira
------------------------------
Date: Sat, 8 Mar 1997 07:52:10 -0500 (EST)
From: John <kahuna@financier.com>
Subject: FHA Mortgage Question
My son is considering a FHA mortgage as a first time home buyer. I know
that it presents more "concerns" for the seller due to the inspections
and repairs that may be needed in order to sell to one seeking an FHA
mortgage.
Are there any disadvantages to the purchaser. I know that there is a
penalty if one sells the house within 10 years but not sure of any other
restrictions or things to take into consideration.
Your comments appreciated.
John
------------------------------
Date: Sat, 8 Mar 1997 07:53:13 -0500 (EST)
From: "Peter Palma" <rpalma@msai.mea.com>
Subject: RE: To Lock or Not To Lock (Interest Rate)?
To answer your question, if you had a reliable way to predict
interest rates, you could be rich and wouldn't need to worry about
a petty 30 year mortgage.
Here's a thought (which will probably start a long heated thread).
Start two loan applications with two different companies that
have low initial application fees.
Lock one and let the other float for the month (or until right before
you need to close). Then, take the whichever loan has the lowest rate at
the time.
It's not illegal, and as long as you haven't signed some sort
of penalty contract, it won't cost you anything except a lost application
fee.
The ethicality of it gets mixed reviews. Most people selling mortgages
say it's unethical. Most people trying to get one think it's fine =-).
You are out the application fees for the mortgage you don't take
but it's a good hedge against rising or falling rates. Many banks
have a "low cost application" so you may be forfeiting only $75-$100.
Whether this will work for you depends on if the bank/mortgage company
requires you to put money down to lock the rate in. Many places don't.
Also, be sure and shop around for your loan. I called 10 places locally
and the rates varied over half a point from place to place for the same
loan (fees were very similar). Luckily, the local newspaper every Sunday
listed mortgage rates for @ 100 local mortgage companies so it was easy
for me to do the comparison over a few weeks and see who was consistently
lowest.
There are services that for $10 or so will send you a list of mortgage
lenders local to your area and their current rates so you can make
a comparison.
Pete
------------------------------
Date: Sat, 8 Mar 1997 07:54:30 -0500 (EST)
From: Scott <sco@snowhill.com>
Subject: How Difficult Is It To Copy from One Computer To Another?
>>>(Editor's Comment - I use another computer as a backup. That way, I know
the backup works and I don't have to restore from the backup. Also, if my
primary computer is in the shop, my backup computer is available, and I
can swap out devices (monitors, modem) if necessary. A secondary computer
may be as expensive as a tape drive.<<<
How difficult is it to copy directly from one computer to another? Is there
a simple cable hook-up available? Considering the low value of used
386/486's now, is turning an old computer into a backup a good alternative
to a zip drive or tape?
(Editor's Comment - You want to buy LapLink. It's software that does
exactly that and includes the cables in the package. -IK)
------------------------------
Date: Sat, 8 Mar 1997 07:55:59 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: CD's, treasuries Questions
>My brother got $15K from the sale of a house. He won't need it for 6 mos.
>Should he buy a US Treasury for better return than a bank CD?
Unknown. You'll have to compare treasury rates to CD rates.
Sometimes treasuries may do better, sometime CDs might. But when
doing the comparison, remember that treasuries are exempt from state
and local income and intangibles taxes, which can boost the effective
yield of the treasuries.
>Is there even such thing as a 6 mo treasury?
Absolutely. 26-week T-bills (there are also 13-week and 52-week
T-bills, and if you go through a broker, you can get a T-bill with a
maturity from one day to one year).
>If so, does it yield more than bank CDs?
It might, it might not.
>Are treasuries sold for as little as $15k?
If bought through TreasuryDirect:
T-bills are sold in multiples of $1,000 with a $10,000 minimum.
T-notes with maturities less than 5 years are sold in multiples of
$1,000 with a $5,000 minimum. Longer T-notes and T-bonds are sold
in multiples of $1,000 with a $1,000 minimum.
If bought through brokers:
You'll be subject to at least the above minimums, and the broker might
have higher ones for T-notes and T-bonds.
>Do you need to use a broker to buy treasuries?
No. You can buy them directly from the Fed or the Bureau of Public Debt
through the TreasuryDirect program.
>If so, what charge should he expect?
No charge through TreasuryDirect. Probably around a $30-50 flat fee
from a broker (or it might be with no explicit commission, but a
mark-up in price).
>Are CD's FDIC insured?
If the issuer is an FDIC/FSLIC/NCUA member and the CD is for less than
$100,000, then I believe so.
Rich Carreiro
rlcarr@animato.pn.com
(Editor's Comment - My bank is offering a "No Penalty" 15 month CD paying
5.5% interest. I don't think that's such a bad deal. Are bank CDs coming
back? -IK)
------------------------------
Date: Sat, 8 Mar 1997 07:56:28 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Can I Open an IRA While Contributing to a 401(K)?
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>3%. My question is, can I open an IRA while making contributions to
>a 401(k)? Would any IRA contributions be tax deductible? Is there
>a good resource for de-mystifying IRA's? Especially in relation to
>other tax-sheltered retirement options.
Yes, you can open an IRA. Whether the contribution is deductible
depends on your income level (because of being in a 401(k)). You may
be able to deduct some, all, or none of the contribution, depending on
your modified adjusted gross income (MAGI). The instructions for Form
1040 have a worksheet to compute this test. Finally, you can get more
details on IRAs from IRS Publication 590 "Individual Retirement
Arrangements."
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Sat, 8 Mar 1997 07:57:51 -0500 (EST)
From: Jerry Dugal <jerdugal@tricky.com>
Subject: Re: To Lock or Not To Lock (Interest Rate)?
I found that for tracking mortgage rates there was no better place than
"http://www.hsh.com/today.html". You can also purchase "The Homebuyer's
Mortgage Kit" that includes a report for your area as well as "How to Shop
For Your Mortgage", a 56-page, totally revised booklet packed with info on
loan types available, options and features that could save (or cost) you
money, how to trim up-front fees, and more. Worksheets to determine the loan
types and amounts you can qualify for, compare different rate/point
combinations, and calculate your initial monthly payment. Also available
from HSH associates is the PC Mortgage Update. PCMU is the only
mortgage-shopping program with current terms from local lenders. It's the
Homebuyer's Mortgage Kit for DOS PCs. You receive the same current info on
your market --- plus the ability to do instant prequalification, search
for mortgages you qualify for, sort loans by any criteria (even monthly
payment or the amount of cash you'll need), and more. this is available at
ftp.hsh.com/pub/pcupdate/pcmu41.zip.
Other programs that helped me do my shopping and calculations were Insight
Softwares Mortgage Analyzer available as MRT204.ZIP & APR Payment Calculator
available as APRCALC22.ZIP.
IMO you will probably sleep much better if you lock in now. Locking in
also gives you a little more leverage if there is a snag in the deal.
JERRY DUGAL http://www.tricky.com
NEWBURGH, NY 12550 jerdugal@tricky.com
------------------------------
Date: Sat, 8 Mar 1997 07:58:24 -0500 (EST)
From: wall@kodak.com (Rob Wall (726-9782) - IOR - PR)
Subject: UIT's?
Persfin digesters,
I have recently been exposed to an investment option
known as Unit Investment Trusts (UIT's). I am now trying
to gather information on UIT's.
(1) Does anyone have any experience with these as either a
broker or an investor?
(2) What are the pros and cons of these investments?
(3) Are they a good idea/investment?
(4) The one firm I have gathered info on so far is Nike Securities L. P.,
and their line of products are called First Trust. Does any one
know of any other firms that offer these trusts? Has anyone had
any opinions on Nike Securities L. P. or First Trust?
Any advice or opinions are appreciated. Please either respond
through the digest or directly to me via e-mail.
Thanks.
Regards,
R. Wall
wall@bisco.kodak.com
------------------------------
Date: Sat, 8 Mar 1997 07:59:05 -0500 (EST)
From: Francesca Pardo <fp10@cornell.edu>
Subject: Re: PBHG Growth, J1 visitor tax form
PBHG funds use a "momentum" strategy for picking funds. This means
that they like to buy stocks which are going up at an accelerating
rate. There have been a lot of these stocks over the last couple
of years. The problem with stocks that go up at an accelerating
rate is that eventually they become too highly priced. That's true
of much of the market now, despite Alan Greenspan's recent recantation.
The "momentum" strategy, which seems to work quite well when the stock
market is moving up, should be expected to lose MORE than the overall
market during sudden downturns, because there is no mechanism in the
strategy for selling stocks that have ballooned to much more than their
underlying value unless the stock prices stagnate for awhile before
dropping.
There are also people who claim that PBHG just has too much money right
now to get in and out of the market quickly like they used to. I suspect
that PBHG is in for a rough ride for awhile, but will eventually come up
again. (I own their emerging growth fund myself.) Your best bet is to
choose some other funds with different stock selection strategies (value
funds) to balance out the PBHG behavior.
- -Francesca
__________________________________________
Scribler wants to know what tax form a J-1 visitor should use.
My coworker who's also a J-1 visitor says to use the 1040NR (or the
1040NR EZ if you have no capital gains, no itemized deductions, etc.)
- -Francesca
___________________________________________
------------------------------
Date: Sat, 8 Mar 1997 08:00:02 -0500 (EST)
From: "David F. Cameron" <dcameron@harper.cc.il.us>
Subject: Need E-Mail Addresses of PC Advice Responses
I am very chagrined to say that I need the e-mail addresses
of those of you who asked for a copy of my compilation of
responses to my question regarding buying a PC.
I apologize... for those of you that know UNIX, I saved
the last batch of messages using > instead of >>.
Sorry,
Dave Cameron
dcameron@harper.cc.il.us
------------------------------
Date: Sat, 8 Mar 1997 08:00:35 -0500 (EST)
From: nowak@comm.mot.com (Mark Nowak)
Subject: Re: Paying Off The Mortgage
nram@ix.gen.com writes:
"I've had other people WARN me about losing the tax credit on the
mortgage interest paid. B U T tell me if I have a good understanding
of this procedure: I pay one dollar of interest and get 28 cents in
return as a tax credit. It doesn't seem like such a good deal - trading
$1.00 for 28 cents. Last year I paid about $11,000.00 in interest and
got $3,080 in tax credit. A person could go broke with that kind of
higher finance! The sad thing is that most people never think about
it and assume it's a good deal. Everyone should think about how
long they have been & will be doing that."
It does seem crazy and this always bothered me too, but the way I
understand it is this way. Assume you are deciding between renting
and buying a house. You have so much cash that you can either invest
or put down as a downpayment. If you get a $100,000 loan at 8%, at the
end of the first year, you will have paid $7969.85 in interest alone.
But you will get a tax deduction at 28% of $2231.56.
So in effect you will have only paid $5738.29 in interest for that first
year. You can look at it as paying off your debt with an "effective"
interest rate of only 5.8%! You're still paying the bank and losing
money, but in Uncle Sam is letting you keep more of your own, so the
net effect makes it so that you're losing less than you thought.
In future years as your principle is paid off, you owe less, so
you pay less in interest and your tax deduction is reduced, but the
effective reduction in your interest rate is still there. In a way
Uncle Sam is helping you pay the interest on your mortgage by not
taxing you as much.
In contrast, if you invest 100,000.00 at 8 percent, you'll make $8000.00
that first year, but Uncle Sam will take 28% of that, so you'll only
end up with a gain of $5760.00 -- an effective reduction of your
interest rate to 5.76%!
Mark
------------------------------
Date: Sat, 8 Mar 1997 08:01:30 -0500 (EST)
From: "Dalmia, Bipin K." <DALMIABK@phibred.com>
Subject: just locked-in a mortgage rate....
hello everyone: we just locked in a 1-year adjustable FHA rate at 6%
with no points and 1% origination. the rate caps are 1% per year and 5%
lifetime. the property we are buying is a condo, new construction, and
we plan to be in it for no longer than 2-3 years (hence the 1-year ARM).
i'd like your comments if we made the right decision.
thanx, bip
------------------------------
Date: Sat, 8 Mar 1997 08:02:42 -0500 (EST)
From: "Barry H. Rodin" (FSAC) <brodin@PICA.ARMY.MIL>
Subject: Year 2000 Issues - Do a 30 Year Bond Calculation on Your Spreadsheet
(Allan Spann suggested doing a 30 year bond calculation to test the Year
2000 problem.)
Using Excel 97 I found the split to occur at a different point:
1/1/29 --> 2029
1/1/30 --> 1930
This could be a problem if one were not aware of it.
However:
1. If you enter a year as 4 digits, Excel will record it that way.
2. The problem only occurs upon *entering* data. Once it is entered,
Excel records it internally as a 4-digit year, and it stays that way
regardless of the passage of time or the change to a new version of Excel.
Barry
------------------------------
Date: Sat, 8 Mar 1997 08:03:22 -0500 (EST)
From: amckendr@palm.com
Subject: Negative Amortization and Taxes
My home mortgage started off with a teaser rate and included a
restriction on how much the bank can raise the payment on a yearly
basis.
The result is that now that the teaser period is over, the full
mortgage payment is $XX, but the bank only requires a payment of $YY
which is less than the full payment. By only paying the required $YY
amount, I would end up with negative amortization with the excess
interest added to the principal.
If this deferred interest is paid before the end of the year, I can
deduct this from may taxes, but what if I don't and allow it to roll
into the next year? Does anyone know if it is still deductible the
following year, or do you have to pay it off in the year the interest
applied in order to deduct it?
Thanks in advance for any help!
- Ain
------------------------------
Date: Sat, 8 Mar 1997 08:04:29 -0500 (EST)
From: "Alan E. Hersh" <webwise@juno.com>
Subject: How To Test Your PC for Year 2000 Problems
Http://www.sbhs.com/y2k/index.htm
'Will It' is a software program developed in Australia for the
purpose of testing computers for the effects that the millennium bug
will bring.
The millenium bug will be here faster that you think! 'Will It' will
test your PC for the following
Roll-Over Results
2000 Leap Year Compliance
2001 Non-Leap Year Compliance
"Will It?" Is Free to download, it is freeware and can be copied and
distributed freely as long as no fee is applied and the programme
remains complete and unchanged.
AEH
http://www.web-site.com/WebPro
------------------------------
Date: Sat, 8 Mar 1997 08:06:24 -0500 (EST)
From: "Barry H. Rodin" (FSAC) <brodin@PICA.ARMY.MIL>
Subject: Re: possible incorrect IRA deduction
>From: "Louis J. Schwarz, CFP, RFC" <sfc@clark.net>
>From: Shane Brewer <BREWERSH@UVSC.EDU>
This past year we mistakenly contributed a small amount
(<$500) to my wife's IRA (regular not spousal.) The problem
is she is not working and so the contributions we illegal
(?). We also claimed this as a deduction (contribution to
spouse's IRA) on Federal Taxes! I have no IRA and am the
only working member of our household. That is the
situation.
I have talked to my broker and he said he could remove the
illegal contributions from my wife's IRA (claiming them as
over contributions) and use them to start an IRA for myself,
thus eliminating the illegal contributions. In so doing, we
still can legally claim the IRA contribution deduction on
our taxes. The net result is that we will have claimed the
deduction as a contribution to my spouse's IRA instead of a
contribution to my IRA. Is this a problem? If so, how do
we correct it? Your timely response would be appreciated.
- - --
Cannot answer correctly because of lack of more information re the
adjusted gross income and whether the wage-earned taxpayer is a
participant in company's retirement plan. However, you can split any
amount between $250 and $2250 for IRA account for both married spouses
as long as there is a maximum of $2,000 in either account. In your case,
it is all right that your spouse can have $500 but all you do is to
change from regular IRA account to spousal IRA account. May not be
necessarily to amend the tax return.
Be advised that this is only applying to the years prior to 1997.
Beginning with 1997, each IRA account can go up to $2,000 each.
Louis J. Schwarz, CFP, RFC
Silver Spring, Maryland
- ----- End of forwarded messages
As I understand it, a "spousal IRA" has the same form of account as a
"regular IRA" -- the only difference being the amount that can be
deducted.
When opening a new brokerage account the forms ask if it is to be an IRA,
but I don't recall any forms asking if it is to be a "spousal IRA".
So how does one "change from a regular IRA account to spousal IRA
account" ?
Barry H. Rodin, B.S., M.S., M.S.
------------------------------
Date: Sat, 8 Mar 1997 08:08:07 -0500 (EST)
From: ElderLTC@aol.com
Subject: New Long Term Care Insurance Info Page
Howdy,
Thought folks on the Personal Finance Digest Mailing List would want to know
of this new site...
Announcing the Long Term Care Insurance Info Page:
http://members.aol.com/ElderLTC
The page is full of information and links about Long Term Care and the
benefit of Long Term Care Insurance ... See you there !!
Thanks...
Doug Burg
Long Term Preferred Care
elderltc@aol.com
http://members.aol.com/ElderLTC
------------------------------
Date: Sat, 8 Mar 1997 08:08:34 -0500 (EST)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: Re: MLM with the Debt Mastery System?
Mark Huber described a debt consolidation program that he
heard about. It sounds like a scam to me. One area for deception is:
> >The client completes a 1 page data sheet and pays $20.00 for a
> >Computerized Personal
> >Analysis that will show them THE DATE THEY WILL BE OUT OF DEBT AND THE
> >PROJECTED INTEREST SAVINGS OVER THE DEBT PERIOD. They pay 2.5%
> >of the total projected interest savings; THEREFORE, THEY ONLY PAY FOR
> >RESULTS, and a $25.00 fee per month for drafting the money out of their
> >checking account
Note that it is the company which determines how much you are
saving, but they don't say what formula they will use. Suppose they
assume that your only other option is a mob loan shark charging 50%.
This would mean they could charge you 20% and still claim huge savings
of which you must pay 2.5% plus the $25 fee.
Another area for suspicion:
> >This is the best Multi Pay Program around. The average sale is about
> >$1,000. You and
> >your agent does not have to get licensed. The application and contract
> >is only one page and
> >no service work is required.
Perhaps they don't _want_ people with a license, i.e., people
who supposedly adhere to an ethical standard and can see through
scams.
A final reason for suspicion: If they really are providing a
good deal, they wouldn't need you to refer clients to them in the
first place.
-David Martin
------------------------------
End of persfin-digest V4 #5
***************************
Articles sorted by: [Date]
[Author]
[Subject]