Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #34
Date: Sun, 11 May 1997 21:03:39 -0400 (EDT)
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persfin-digest Sunday, May 11 1997 Volume 04 : Number 034
IN THIS ISSUE:
ADVERTISEMENT: domainTNG [Oppenheimer Software <Connect_sales@mcimail.co]
Microsoft Offers Personal Finance Consulting For Free ["Marian Prokop (S&]
Re: Investment Clubs Web Sites [Scott Barnett <sab@newton.crisp.net>]
Re: Traveling for 2 1/2 months / ISP or e-mail [Ian Haggard <ian@shellus.]
Dow Jones News Service - Anyplace Other Than Prodigy? ["Gary M. Oppenheim]
Bankruptcy Question - Buy A House After Declaring Chapter 7? [Steven Klei]
Re: Jim's a travelling man... [WDStancil@aol.com]
Re: Tax Status of Neighborhood Association? [Kent Shaw <kshaw@erols.com>]
RE: Hiding muni bonds for child's college [WDStancil@aol.com]
Re: Acoustic Couplers [eric <73354.3477@CompuServe.COM>]
IRA and 401K plan - Can I Have Both? [Fred Schiff <f.schiff@ieee.org>]
RE: Life Insurance Change? ["Cal Lester C.L.U." <Cal_Lester@msn.com>]
Re: College Fund For Children ["L. Chen" <am302@FreeNet.Buffalo.EDU>]
whole life vs term insurance [JONESW@CCSUA.CTSTATEU.EDU]
Re: Online Payments / Fraudulent Charge Slips [Harry Matthews <matthews@p]
Re: Best currency exchange rates - Charge Everything [Harry Matthews <mat]
Re: Q regarding taxes ... [Rich Carreiro <rlcarr@animato.pn.com>]
Re: College Fund For Children [Rich Carreiro <rlcarr@animato.pn.com>]
Projecting the market - Can I Monitor Foreign Investment In Treasuries? []
Re: Life Insurance Change? ["Jackson, Anthony D." <JacksAD1@central.ssd.j]
Re: Paying Bills Less Than $2 - You Should Do It [bjhaines@juno.com (Robe]
managed futures? [Helen Andriette <ay807@FreeNet.Buffalo.EDU>]
Any Credit Cards with Rebates? ["Ronald L. Russell" <rlr@pop.mindspring.c]
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----------------------------------------------------------------------
Date: Sun, 11 May 1997 20:23:25 -0400 (EDT)
From: Oppenheimer Software <Connect_sales@mcimail.com>
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------------------------------
Date: Sun, 11 May 1997 20:26:33 -0400 (EDT)
From: "Marian Prokop (S&T Onsite)" <a-mproko@microsoft.com>
Subject: Microsoft Offers Personal Finance Consulting For Free
Greetings!
How would you like the advice of a certified financial planner on your
own financial situation - for free?
"Money Insider," a new personal finance Web site published by Microsoft,
is looking for people willing to share their financial profiles. All it
takes is a quick telephone interview with the financial planner, some
bare bone facts about your personal finances (including salary,
investments, mortgage payments and other expenses). The financial
planner will advise you on improving your financial situation.
We'll feature your story, the recommendations and action plan in our
"Reality Check" columns. Our readers will, in turn, gain insight on the
strategies used by people in the real world.
If you're interested, please write to me at a-mproko@microsoft.com
Thanks!
Marian Prokop
------------------------------
Date: Sun, 11 May 1997 20:27:37 -0400 (EDT)
From: Scott Barnett <sab@newton.crisp.net>
Subject: Re: Investment Clubs Web Sites
For a list of NAIC-associated clubs that have a web presence,
you can check out:
http://www.computerland.net/~missouri/index.htm. Click
on Investment Clubs.
I don't think this is an exhaustive list, but it's a great
start!
- --
Scott Barnett
sab@crisp.net
------------------------------
Date: Sun, 11 May 1997 20:32:09 -0400 (EDT)
From: Ian Haggard <ian@shellus.com>
Subject: Re: Traveling for 2 1/2 months / ISP or e-mail
Jim Reed asked:
> distance call. I'm thinking of signing up with AOL since they have a
> 1-800 number (maybe that will be less expensive than a long distance
> call). I don't know.......
You might want to try Juno if you only want e-mail. They are free. I
heard about them via persfin-digest and misc.consumers.frugal-living.
For an explanation of how they work, see http://www.juno.com. They also
have phone numbers all over the country. And your phone is only
connected to their phone when you are sending and receiving e-mail. You
read and write it locally. So although they don't have a (800) number
any more, it probably will be pretty cheap to call them even if they're
not a local call.
- --
Ian Haggard || ian@shellus.com (work) || IanHaggard@juno.com (home)
(Editor's Comment - AOL has a little-advertised "AOL-lite" subscription
for $4.95/month (3 hours). I subscribe to it (ikrakow@aol.com). If all
you need is email it should work fine. You can then dial 800 numbers
around the country to pick up your email. AOLers who only use the service
for less than 3 hours should consider switching to the lower rate. -IK)
------------------------------
Date: Sun, 11 May 1997 20:33:22 -0400 (EDT)
From: "Gary M. Oppenheimer" <0002180241@mcimail.com>
Subject: Dow Jones News Service - Anyplace Other Than Prodigy?
MCI Mail does offer this.
After subscribing to MCI Mail, you can connect directly to DJ, and use their
clipping service to regularly get info on your favorite stocks, company, person,
competitor, etc. Any time any information rolls across the wire services
related to what you've chosen, they'll e-mail it right to the mailbox.
If you want, MCI Mail can be configured to forward that to a fax machine, so
that receipt of the DJ information is completely passive on your part (no need
to turn on your PC to get the info).
DJ does offer a lot of information of a business and financial nature. Some
people look at it as an old and stogy service, but in reality, they've been
doing this for a very long time, and know their way around Wall Street quite
well.
I'll be more than happy to help any Persfiners who want to learn more
about this capability.
Take Care,
Gary
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------------------------------
Date: Sun, 11 May 1997 20:34:26 -0400 (EDT)
From: Steven Klein <SKLEIN@snm.org>
Subject: Bankruptcy Question - Buy A House After Declaring Chapter 7?
My coworker has alot of debt (write-offs, deliquency, collections etc.). In
other words her credit is a disaster. Right now she is a house renter and
would like to buy a house fairly soon (in 1-2 years) She was told by a
friend that if she declared Chepter 7 bankruptcy, then after 12 months
through the bankruptcy, that she would probably qualify for a FHA
mortgage as a first time buyer with a total max. down of 5-1/2 percent of
the purchase price (as long as the total purchase price is less than
$160,000).
Can you buy a house and qualify for this type of mortage while in
chapter 7?
Steve
------------------------------
Date: Sun, 11 May 1997 20:35:10 -0400 (EDT)
From: WDStancil@aol.com
Subject: Re: Jim's a travelling man...
Well, some others have been kind enough to post sites that will
email quotes to you. If that works OK, why not setup a Juno
account? Free email (with 800 number) for filling out a marketing
profile and putting up with a _small_ ad banner onscreen.
For more general access AOL offers 800 access for 10 cents/minute.
You might post some messages on USENET travel-related forums
to find sources for acoustic couplers and other suggestions on
surfing while travelling.
------------------------------
Date: Sun, 11 May 1997 20:36:12 -0400 (EDT)
From: Kent Shaw <kshaw@erols.com>
Subject: Re: Tax Status of Neighborhood Association?
> I have just taken over as treasurer of a neighborhood association which is
> responsible for maintenance of common areas and social functions in our
> development. The association is funded by voluntary dues payments by the
> homeowners and maintains a low 5-figure balance in an interest bearing
> checking account. Recently, our vice-president suggested moving some of
> these funds into short-term CD's to reap higher earnings. I questioned the
> former treasurer about this and was told that he had considered doing so
> but had been advised not to do because we might be perceived by the IRS as
> a profit-making organization and be required to file and pay income taxes.
> The association has a TIN, but does not file taxes.
Whether investment interest is derived from short term CD's or a checking
account will make no difference in the tax treatment. In general, all
homeowner associations are required to pay taxes and file tax returns.
Homeowner organizations are given an option of filing an 1120 Corporate
return or a 1120-H return specifically for homeowner associations. The 1120
often results in lower taxes. Under rare circumstances, you can be treated
as a non-profit organization if you qualify under IRC 501(c)(4) pertaining to
social welfare groups. I suggest that you contact the Community Associations
Institute, Alexandria, Virginia, and order some of their publications on
accounting and taxation for homeowner associations. Also, contact a local
CPA or enrolled agent that specializes in homeowner/condominiums and spend a
few hours with them discussing your tax situation.
Kent Shaw, CPA
------------------------------
Date: Sun, 11 May 1997 20:37:00 -0400 (EDT)
From: WDStancil@aol.com
Subject: RE: Hiding muni bonds for child's college
>Buy state and/or municipal zero coupon bonds in the name of the child.
>Get the bonds that have a physical bond (not a book entry bond) and take
>custody of the bonds and lock them up in a safe deposit box. Do not put
>the child's name as a person that can open the safe deposit box. Buy
>bonds that mature when the child starts college. You might have some
>bonds mature the first year of college and some the second year, etc.
>I do not recommend you tell the child where the bonds are being held
>however if you did it would not be a big problem as they could not get the
>bonds to sell them before they mature.
>Can any see any problems with this idea?
Well, since we don't have bearer bonds anymore the
child could contact the issuer and request replacements
(after all, they are in the child's name). And don't they still
count as assets of the child on financial aid forms?
------------------------------
Date: Sun, 11 May 1997 20:37:44 -0400 (EDT)
From: eric <73354.3477@CompuServe.COM>
Subject: Re: Acoustic Couplers
They are available by mail from Magellan (800-962-4943). They work but
not consistently- depends on the strength of the phone signal. For pay
phones there is no other choice. Magellan has lots of computer and phone
travel products.
------------------------------
Date: Sun, 11 May 1997 20:42:18 -0400 (EDT)
From: Fred Schiff <f.schiff@ieee.org>
Subject: IRA and 401K plan - Can I Have Both?
I have an IRA, which came about because of the money I got from the
401K plan at a previous job. Now I have a 401K plan at my new job.
Question is: can I put money (up to the $2000 yearly) into my IRA,
if I have the 401K at the same time.
Also: can I put the IRA money into my 401K?
Thanks
Fred Schiff (f.schiff@ieee.org)
------------------------------
Date: Sun, 11 May 1997 20:44:45 -0400 (EDT)
From: "Cal Lester C.L.U." <Cal_Lester@msn.com>
Subject: RE: Life Insurance Change?
> I'm 44 with a $100K whole life policy with New York Life, and its time
for the annual payment. Since we got that policy, we've become more
financially comfortable, and I'm starting to wonder if I really need
this.... might not a $100K term policy be better off for us, and if so,
which company offers the best policy and rates?
Any input would be appreciated.
>>>> Gary you seem to be looking for a simple answer to a verrrrrrrrrrry
complex question. You used the word "We", so I must assume that you are
married. You do not state how long ago you purchased the contract, nor how
much your premiums are. NYL is a "participating company", one that pays
dividends, but you do not mention how much the "annual dividend" is this year.
A NYL W/L policy has an "increasing cash value", and I would need to know
exactly how much that cash value increased for the past year.
Having said all of that, and not having any answers yet, I will
emphatically answer " NO " you would NOT be better off buying a Term
Policy at this time.
Some of the reasons are as follows:
a) Term insurance has an INCREASING premium COST each &
every year.
b) IF the existing policy is more than a few years old,
then most if not all of the acquisition costs have already been absorbed
( meaning that more of the premium that you are paying is accruing to YOU
c) You have to qualify for a new policy, whereas yours is
already in force
d) there are MANY options available to you with your
existing coverage, that would NOT be available with a term policy.
e) Your current dividend could either be used to "offset"
this years premium, OR be used to purchase ( at NO cost ) Paid Up
Additions, which INCREASE your Death Benefit
These are just a few of the many reasons for maintaining an IN FORCE W/L
policy, rather than surrender and buy anything NEW.
Cal Lester CLU
Insurance Course CoOrdinator
Broward Community College
------------------------------
Date: Sun, 11 May 1997 20:45:54 -0400 (EDT)
From: "L. Chen" <am302@FreeNet.Buffalo.EDU>
Subject: Re: College Fund For Children
>
> Buy state and/or municipal zero coupon bonds in the name of the child.
> Get the bonds that have a physical bond (not a book entry bond) and take
> custody of the bonds and lock them up in a safe deposit box. Do not put
> the child's name as a person that can open the safe deposit box. Buy
> bonds that mature when the child starts college. You might have some
> bonds mature the first year of college and some the second year, etc.
>
> I do not recommend you tell the child where the bonds are being held
> however if you did it would not be a big problem as they could not get the
> bonds to sell them before they mature.
>
> Can any see any problems with this idea?
>
> BOB FORD
The objective in most situations is to get a higher NET after-tax return
on the investments -- by putting the investments in the name of a lower-tax
individual -- which is not the same as avoiding tax. In that respect,
your suggestion failed since municipal bonds has lower interest rate and
are geared toward investors in high tax brackets.
In addition, if the child knows of the bonds, they are legally entitled to
it at the age of majority -- even if they don't go to college. And
regardless, no one other than the child can legally cash in those bonds.
And you can't hide them forever.
Lily Chen
am302@freenet.buffalo.edu
------------------------------
Date: Sun, 11 May 1997 20:46:44 -0400 (EDT)
From: JONESW@CCSUA.CTSTATEU.EDU
Subject: whole life vs term insurance
Gary Oppenheimer asks if he should replace his 100K whole life with 100K of
term insurance. For most people, whole life is moderately worse than buying
term and investing the difference in a variable annuity, because there is a
very hefty commission in the first two years or so. However, if Gary has had
his current policy for at least two years, he will probably be better off
keeping it -- the damage is done, and from here on the return is probably
quite good, though not necessarily. It can be tested it as follows:
(1) Decide when you will terminate the whole life policy (e.g., age 67). If
you would hold it until you die, even if you live past 90, don't cancel it.
(2) Get the rate for guaranteed renewable term for each of the 23 years from
age 44 and continuing until age 67, from a reasonably priced but financially
secure company (or from New York Life if its rates are cheaper).
(3) Use your spreadsheet to calculate how much you would have by age 67 if
you invested your current cash value in a variable annuity, and added the
difference each year between the term premium and the whole life premium,
assuming you earn 7% annually.
(4) Change the 7% to other rates and recalculate, until you hit the one that
gives your current whole life policy's cash value at age 67.
(5) Estimate whether you could earn on average that rate of return in the
variable annuity, after subtracting the 0.48% mortality expense (if you
choose Vanguard's variable annuity) or whatever expense rate you find.
------------------------------
Date: Sun, 11 May 1997 20:48:13 -0400 (EDT)
From: Harry Matthews <matthews@panix.com>
Subject: Re: Online Payments / Fraudulent Charge Slips
persfin-digest wrote:
> I wish that Online Payment didn't cost $5 per month, but I probably
> save about that in stamps each month, so it's essentially a free
> convenience.
Gee, here in the Big Apple, we pay $3 a month. Like you, I'm sure I
save that much in postage, but I cite the figure to encourage others to
do some comparison shopping. Given the trend toward truly national
banks, competition should drive these fees even lower; zero would make
sense, since we're saving the banks a lot of paperwork.
> How do I know all this? It happened to me when I went to India in
> 1993.
> When I visited Cochin, I went to one of the best clothing stores
> there
> (most prestigious by local standards). I made a purchase for some
> 7456
> Rupees (fairly odd number). Three months after my return to the US,
> I
> found two charges on my statement - one for 7456 Rupees and another
> for
> 4000 Rupees. I protested the Rs. 4000 charge. After a wait of
> another 3
> months I received a photocopy of both charge slips. I was astounded
> to
> see my signature on both slips. I still have the charge slips. I had
> no
> choice but to pay up. After all, the signature was mine.
C'mon, guy, the signature on the second slip was obviously *NOT* yours,
but a forgery. All you had to do is sign the affidavit supplied by your
card issuer, refusing this charge, and the ball would have been thrown
back into the merchant's camp, forcing the crooks to prove, in a US
court, that you had signed the second slip. Meanwhile, you get a credit
from your card issuer. Since the lying schmucks obviously did not have
a leg to stand on, they would never contest your claim and a simple
protest would have freed you from this extortion.
I've had a couple of forged charge slips (and even stolen checks) here
in the US, and it's always been my sworn statement (not any sort of
"expert" analysis) that got them wiped off my account. So never, ever
hesitate to stand up for your rights. The fact that the crooks are half
a world away actually makes your case stronger. Read the credit
agreement you got with the card, and you'll discover that "all disputes
are to be resolved under the laws of [the state in which the issuer is
based or incorporated]." In other words, Asian shysters have to meet
our standards before they get a penny.
In this increasingly impersonal corporate world, it's the loudly
insistent person who can make his voice heard.
> I just received a phone bill for $0.27 that is a long distance
> company I
> had used. I find it really hard to justify sending a check for
> $0.27 as it
> costs $0.32 to do that. I have considered calling and having them
> charge
> my credit card, but last time I tried that, I was told they are not
> set up
> to take credit cards. Any thoughts on what I should do?!?
Anyone dumb enough to spend 32 cents to demand a 27 cent payment
deserves exactly what he or she gets: ZILCH! Throw out the bill and
forget the losers. We have more colorful expressions here in New York,
but this is a family service....
------------------------------
Date: Sun, 11 May 1997 20:50:04 -0400 (EDT)
From: Harry Matthews <matthews@panix.com>
Subject: Re: Best currency exchange rates - Charge Everything
>
> Generally, you get the best exchange rates by charging everything
> (as well as
> drawing cash) on your credit card. This is because your foreign
> transaction
> gets converted to your home currency, by a large bank (your credit
> card issuer)
> at a rate very close to the interbank rate for that day.
Amen! I've travelled in Europe frequently over the past 30 years, and I
am amazed at how much easier it is to get good rates by simply using
plastic. In France and Spain, for instance, the national cash-card
network is connected to the international VISA network, so you can
charge a $20 lunch at a tiny cafe in an obscure privincial town and get
the "wholesale" exchange rate. In some countrues, especially Britain,
ATM's are as handy as they are in the US (though some US banks have
started imposing extra charges on overseas withdrawals).
> The only other option is to get cash or traveller's checks, but:
> - - the spread is wider than the interbank rate (because exchange
> houses add in a
> fee before turning around and covering the transaction with their
> bank);
> - - you pay fees and commisions (generally weighed towards one or
> the other);
> - - they get you coming and going (when you change back your
> excess).
Actually, TC issuers make a mint on the float, though this is shrinking
in the modern world. If you do take TC's try to change them at an
office of the issuer (American Express for Amex checks, Barclay's (in
Britain or the Caribbean) for Vias checks, etc.), where surcharges may
be waived.
> This is long-winded answer because there are no shortcuts. But as a
> couple of
> rules of thumb, I would say that if you're just taking a regular
> tourist
> vacation and plan on blowing a few hundred or thou, then don't
> bother with all
> these calcs - just use your credit card. But if you need large
> amounts of
> cash, then the best option is probably to shop around, including
> asking your
> bank, who though they don't advertise this service, will do forex
> for their
> customers if significant amounts are involved (and don't forget the
> US $10,000
> IRS declaration that any institution will file).
In my experience -- excellent advice! The amount an average tourist can
gain or lose is unlikely to exceed $100 -- hardly a sum to lose sleep
over. Credit cards offer both convenience and good rates, but if you
prefer TC's, be comfortable!
> (Editor's Question - How about taking a stash of $1 bills? That
> way, if
> you have to exchange money (and you'll need to do that for things
> like bus
> fare), you won't have to exchange too much in local currency -
> unless, of
> course that currency is stronger than the dollar - but then you'll
> still
> loss on the exchange back. -IK)
It's true that, in some parts of the world, tipping (or paying for small
purchases) in dollars is an accepted practice, and there's no harm in
offering greenbacks if you've run out of the local currency. (I once
made a profit by paying a Warsaw cabby in dollars, but that was under
the ancien regime.) But never, never, never stroll to the exchange
window with currency! You'll get hit with a much lower exchange rate
(factoring in the cost of re-patriating the currency by armed courier),
plus all the other charges. It's much cheaper to change a $50 TC (and
spend the excess local currency at the ariport souvenir shop or on the
plane) than change $10 or $15 in cash!
> From: Jim Yount <jimyount@ix.netcom.com>
> Subject: On-line Banking and On-line Bill Payment?
>
> I currently use Quicken 6 for Windows to keep track of my personal
> finances. I've never used the On-line Banking or On-line Bill
> Payment
> features, but I'm considering setting them up.
>
> I would appreciate feedback regarding people's personal experience
> with
> using the "On-line Features" of Quicken... both positive and
> negative.
On the whole, I'm satisfied, but you should be aware of a few problems.
Since Intuit is not a bank and does not know your balance, it almost
always produces and mails a paper check for your "Pay On Line"
transactions. The company (and its affiliate banks) are gradually
working out electronic transfer agreements with larger payees (like
utilities), who must agree to refund payments that prove to be drawn on
insufficient funds. But for now, payments are subject to nearly all the
problems you might encounter by mailing a check of your own. You can,
of course, call the bank and ask someone else to research your "lost"
payment (my bank, Chase Manhattan, allows me to file these complaints 24
hours a day, 7 days a week), but you pay for the privilege. ($3/month
at Chase)
Also, you should be aware of the fact that Quicken banking on line
involves several organizations. The quality of the service you get
depends both on Intuit (which, in my experience, has its act very much
together) and on your bank (Chase is great, Amex is wildly
undependable). Nonetheless, it is enormously useful to have this
information immediately at hand, and the module that matches your
register and online data is very good. (You can also edit the entry
before accepting it.)
If you use Quicken's investment features, you will also need Internet
access to update your quotes.
So why do I keep it up? Because it's really great to have the financial
data that I create and use myself compared to and corrected by the
financial service organizations I depend on. And in today's world of
massive, impersonal institutions, I like seeing it all on my home
screen!
Harry
------------------------------
Date: Sun, 11 May 1997 20:51:17 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Q regarding taxes ...
> This year he paid most of his money to Uncle Sam. Basically, he is single,
> separated, renting. Only deduction he had was 401K and the standard
> deduction. Money he is making is in the range of high figures.
As a small-l libertarian, I certainly feel that the govt wastes huge
sums of money and is involved in many areas that it has no right to
be, thereby burning up ever more money. I'm even less of a fan of
redistributive taxes. However, there's no way he paid "most" of his
money to the Feds. The top tax rate is 39.6%. The 6.2% FICA tax cuts
out at ~$65,000. The 1.45% medicare tax has no ceiling. So even if
all his income was taxed at the top rate and he had no deductions
(even the standard deduction) or exemptions, he's not going to pay the
feds more than about 42% of his income, which while far too much, is
still a far cry from "most." And when you do put back the standard
deduction, exemptions, and the graduated tax structure, he's probably
"only" paying something less than 30%, unless he's well into the 36%
bracket (or beyond).
> What he is interested is in finding out, are there any other ways he can
> try or do this year so that he does not have to pay to Uncle Sam all his
> money next year.
Not really. And remember this, a deduction is really only useful if
you were going to have that expense anyways. You cannot be better off
be getting a deduction solely for the sake of having one. Why?
Because deductions do NOT reduce taxes $1-for-$1, they reduce taxable
income $1-for-$1.
So if you decide, "gee -- I want a deduction, I'll spend $100 on
something deductible, just because" and are in the (say) 28% bracket,
your taxes will be reduced by $28. You still have a net cost of $72.
So unless that thing is worth more than $72 to you, there's no point
in buying it.
- --
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Sun, 11 May 1997 20:52:15 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: College Fund For Children
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>Buy state and/or municipal zero coupon bonds in the name of the child.
>Get the bonds that have a physical bond (not a book entry bond) and take
[snip]
>Can any see any problems with this idea?
(1) I doubt you can get a physical zero. Very few zeros (AFAIK) are are
actually bonds issued with a zero coupon. Rather, they are regular
coupon bonds that are stripped, with the interest coupons and the
corpus sold separately (at least this is true in the Treasury world).
(2) Buying the thing in the first place. You won't be able to get
an account in the name of a minor, plain and simple. I suppose
you could buy it in your own account, get the thing delivered,
and then have it reregistered in the name of the kid, but then
the transfer agent may well refuse to reregister to the name of
a minor.
(3) If because of (2) you use an UTMA/UGMA, you are at risk of being
sued if you don't turn over the assets when the kid turns 18 (or 21,
depending on the state).
(4) Given that you are talking about a state/muni bond, there won't
be any federal taxes, and probably no state/local taxes, so why
not just keep it in your own name, anyway?
(5) You'll still have to state the value of the bonds on the finaid
application as assets of the child. Failure to do so is fraud.
And the kid's assets are "taxed" six times more heavily than
parents' assets in the finaid calculation.
(6) I'd wonder about the issue of putting something that's in someone
else's name into a safe deposit box he has no access to. It's in
his name -- he owns it. I don't think you can legally stop him
from taking it, especially when he attains majority.
(7) All sorts of gift issues -- for something to be a gift there can be
no strings attached. By hiding the thing away, the IRS may well be
able to argue the payment was not a gift and it might somehow get
converted into taxable income to the child.
I certainly admit that some of these are probably quite unlikely, but
then if you are worried about your kid being untrustworthy to blow the
money, then you might want to worry about being sued if you improperly
withhold assets that legally belong to him.
I still feel that the tax savings (which are only on the order of $250
per year) are simply not worth the control issues, let alone that the
savings will in all likelihood be eated up by the far greater finaid
"tax" on the kid's assets.
- --
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Sun, 11 May 1997 20:53:44 -0400 (EDT)
From: "Jim Reed" <jreed1@airmail.net>
Subject: Projecting the market - Can I Monitor Foreign Investment In Treasuries?
Hi all
Jimmy Rogers, appearing on the TV show, the Money Club (on Friday), had
an interesting comment which I thought would be interesting to hear more
about.
He was stating the case for how important it was to watch what investors
outside the U.S. were doing.......Japan, the Japanese Bank, and others
ouside the U.S. He was also explaining how important their involvement
was to the rise and decline of interest rates here in the States.
For a while now, that has made a lot of sense to me, but I never knew how
to get access to this information. Jimmy went on to say that foreigners
had decreased their investing in the U.S. market for the past couple of
months or so.
The fact that he knew this means to me that there is some way to monitor
the flow of foreign investment into and out of the U.S. market.
I was wondering if anyone knew how this flow of funds was monitored and
if there are any resources that I could access to monitor this myself.
Thanks, as always......
Kindest regards,
Jim, in Texas
jreed1@airmail.net
------------------------------
Date: Sun, 11 May 1997 20:54:32 -0400 (EDT)
From: "Jackson, Anthony D." <JacksAD1@central.ssd.jhuapl.edu>
Subject: Re: Life Insurance Change?
I'm 44 with a $100K whole life policy with New York Life, and its time
for the annual payment. Since we got that policy, we've become more
financially comfortable, and I'm starting to wonder if I really need
this.... might not a $100K term policy be better off for us, and if so,
which company offers the best policy and rates?
Any input would be appreciated.
- --------------------------------------------------------------------
You can get the best term quote from several companies: Try QuickQuote,
www.quickquote.com or Quotesmith, www.quotesmith.com, 1800-556-9393.
Both web pages allow you to insert your info and they return the
companies with the lowest rates.
"TJ"
------------------------------
Date: Sun, 11 May 1997 20:55:10 -0400 (EDT)
From: bjhaines@juno.com (Robert J Haines)
Subject: Re: Paying Bills Less Than $2 - You Should Do It
In persfin-digest V4#33, Eric <er@clark.net> wrote ...
"Never heard of one of those $2 negative marks yet."
Well, my parents own a weekend/vacation cabin, and the local
electric utility has a minimum periodic charge -- since the cabin
goes unused during the winter months, the minimum charge
applies. My mom got into the habit of deferring this payment,
since it was such a small amount.
Since my name and my dad's name are similar, our credit bureau
info often "crosses." In 1990 or 1991, I was in the process of getting
a mortgage, and my mortgage company wanted an explanation for
the negative mark on my credit bureau report. Yup, you guesed it.
No, it wasn't two bucks ... perhaps more like $7.50. Still,
considering the hassle that it takes to clear off your credit bureau
records (I'm still waiting for the bureaus to get their much-overdue
comeuppance!), I wouldn't skip paying any bill, even if it was a
penny. Yes, it's a waste of time and $0.32 stamps, but so is
cleaning up your report.
Bob Haines
BJHAINES@JUNO.COM
------------------------------
Date: Sun, 11 May 1997 20:55:50 -0400 (EDT)
From: Helen Andriette <ay807@FreeNet.Buffalo.EDU>
Subject: managed futures?
Some financial advisors claim that the addition of a managed futures
account to a portfolio reduces volativity without a loss in return.
Does anyone have any experience with a managed futures account?
------------------------------
Date: Sun, 11 May 1997 21:01:01 -0400 (EDT)
From: "Ronald L. Russell" <rlr@pop.mindspring.com>
Subject: Any Credit Cards with Rebates?
I am looking for a Master/Visa card that has a rebate (monthly/annually
doesn't matter) when items are purchased on card. I have a daughter who
will be attending college soon and I will need to charge college expenses
(tuition/room/board, etc.) on it and on my current card (which I pay in
full each mo.) there is no rebate. I figured I might as well receive a
rebate especially with such large transactions as college expenses.
You may email me at rlr@syl.mindspring.com
Thanks for your help.
Ron
(Editor's Comment: Check out:
Discover Card (1-800-DISCOVER)
GE True Rewards (1-800-877-1050) They have a rebate but also a $25 fee.
BJ's Wholesale Card (1-800-308-6979)
You should be able to get about a 1%-2% rebate paying by credit cards.
- -IK)
------------------------------
End of persfin-digest V4 #34
****************************
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