Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #36
Date: Thu, 15 May 1997 22:20:15 -0400 (EDT)
Articles sorted by: [Date]
[Author]
[Subject]
persfin-digest Thursday, May 15 1997 Volume 04 : Number 036
IN THIS ISSUE:
ADVERTISEMENT: MCI FAX BROADCAST SERVICE [Oppenheimer Software <Connect-]
Any tips for buying a small business? [Sam Andrusko <sand@loc.gov>]
Re: money for child's college ["Jim Reed" <jreed1@airmail.net>]
Two Family Home ["Kenneth Murray" <kmurray@tiac.net>]
IRA........for minors [Paul Landsberg <paws@vlsi.columbia.edu>]
Re: IRA and 401K plan - Can I Have Both? [Rich Carreiro <rlcarr@animato.p]
Re: Microsoft Diversification [Rich Carreiro <rlcarr@animato.pn.com>]
Microsoft Has A Right To Free Enterprise [Satish Kethineni <satishk@paul.]
Re: credit cards with rebates [Francesca Pardo <fp10@cornell.edu>]
Female Sports Companies Web Site? [Susan Mangiero <mangiero@shu.sacredhea]
Re: IRA and 401K plan - Can I Have Both? ["Lester M. Levy, MD" <llevy@hof]
Re: Any Credit Cards with Rebates? Web Site to Check [Endy Junan <endy@b]
2nd Mortgage with little equity [Mandragon <don_m@nde4.nde.state.ne.us>]
Re: credit cards with rebates [alufml@fanniemae.com (Francois-Michel Lang]
Borrow Against 401K For House Down Payment? ["Timothy D. Brown" <00021054]
SBA Online - Possible Inexpensive EMail [colston@viagrafix.com (Lloyd Col]
Re: Tax Consequences for Home Sharing [BOB FORD <BOB_FORD@compuserve.com>]
Bankruptcy and Home Buying [BOB FORD <BOB_FORD@compuserve.com>]
Re: Paying Bills Less Than $2 ["Peter Diamond" <diamond@vsi.net>]
Re: buy home after bankruptcy? [Stephan Iscoe <siscoe@worldnet.att.net>]
rental car companies in Salt Lake City? [Martin Turnauer <mturnaue@runet.]
consolidating loans? ["Michelle Francois"<Michelle_Francois@hmco.com>]
====================================================================
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?
Specialists in HP 200LX and HP320LX palmtops. The first shipments of
HP320LX will be on May 14, 1997 and can be ordered now. Price: $689 +
$19.95 shipping (in USA).
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
Calculators:
HP 48GX: $180.28 + s&h
HP 48G: $ 91.78 + s&h
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
====================================================================
Persfin Digest Archive (maintained by Ameristock Mutual Fund):
http://www.ameristock.com and
http://www.ameristock.com/pda/persfin_home.htm
Ira Krakow's Mall: 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: Thu, 15 May 1997 21:24:30 -0400 (EDT)
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: Thu, 15 May 1997 21:26:05 -0400 (EDT)
From: Sam Andrusko <sand@loc.gov>
Subject: Any tips for buying a small business?
Hello, everyone,
A friend of mine is thinking of buying a small business, a restaurant
(not a fancy one, a small one (seats about 40)). It's for sale for
$125,000. Any advice, tips, warnings about the pre-purchase negotiating
would be quit welcome. For example, is the sales price an indicator of the
amount of business the restaurant does--with rental real estate it is, but
what about with businesses?
Many thanks.
Sam Andrusko
------------------------------
Date: Thu, 15 May 1997 21:32:27 -0400 (EDT)
From: "Jim Reed" <jreed1@airmail.net>
Subject: Re: money for child's college
Paul had the below comment about parents trusting children:
>I am always a touch puzzled by the gyrations people go through when they
>consider a college fund for children. Time after time you will see people
>suggest that you avoid a UGMA account because "the kid might blow it
>when he turns 18." So let me get this right. You, the parent, absolutely
>do not trust your child to make the right decisions after he/she turns
>18? We are talking about the "child" that now can vote and do military
>service (implication be called upon to go to war). I'll be honest, this
>level of distrust of a family member surprises and disturbs me.
Thank you, Paul, for your post.....
I understand your concern but, actually (having raised two children with
another teen who will also being going to college in a few years)......I
think this is a pretty kind thing to do for a child.
A secure investment in a college education is one of the kindest things
you can do for your child. And, to be honest with you, it has very little
to do with how much I trust my own child. It does have *all* to do with
my perception of the world he has to deal with.
I'll have to admit, with me being a mature adult (I hope so anyway), with
many, many years of experience with my own mistakes and my own
successes.....I still get snookered by those who are smarter, more
experienced, and more willing to exploit others than me. I'm still
learning to do better (I hope), but I'm still human. We all make
mistakes.
In my humble opinion, age 18, I believe, should be a time when you can
have the latitude of making a few mistakes here and there without it
causing you suffer for it for the rest of your life. A college education
is too important to risk, I believe.
I recognize that my son (at age 18) will have to make some decisions that
may affect him the rest of his life. He may have to fight in a war (yes),
he may decide to have unprotected sex, he may have to decide whether to
drive a car when he has had too much to drink......yes..... But I plan to
help him all I can. We *all* need it.
Kindest regards,
Jim, inTexas
jreed1@airmail.net
(Editor's Comment - I totally agree. My children are competing against
the entire world. The collapse of the Soviet Bloc abroad and the
expansion of educational opportunities at home means my children need all
the help they can get. The competition is much more fierce than a
generation ago. -IK)
------------------------------
Date: Thu, 15 May 1997 21:34:07 -0400 (EDT)
From: "Kenneth Murray" <kmurray@tiac.net>
Subject: Two Family Home
Hi,
My fiance and I are considering (going to try) to purchase a two family
home with a 15 year mortgage. If we can find one we like. I'm sure it
will be a long search. Everyone I've spoken to says it sounds like we
are on the right thinking track. We would like to try our hand at being
a landlord only because we think we would make good ones compared to the
way we have been treated in the past and to have some real estate
investment. I'm not the handiest guy but am willing to work hard (What
in life ever comes easy?). I would like to have some questions answered
and some feedback from all of you as to your experiences and opinions on
owning a two family home.
I apologize if you've gone over this before. If you have can you direct
me to an archive?
1. What real estate traps should I look for?
2. Should be able to determine a bad boiler or roof or foundation?
3. Any tax benefits or downfalls?
4. Liabilities?
5. Any suggested reading on mortgages? Scoping out Property? Owning a
Two Family?
6. Major Expenses?
7. What would you have done differently or prepared for if you had to do
it again?
Thanks,
Ken Murray
This is the best mailing list... People helping People
My $20 is in the mail...
------------------------------
Date: Thu, 15 May 1997 21:54:08 -0400 (EDT)
From: Paul Landsberg <paws@vlsi.columbia.edu>
Subject: IRA........for minors
Imagine your finances if you didn't have to put very much, if anything
aside for retirement? Maybe this wouldn't be a fantasy if a parent
had put money into an IRA when you were a minor. Ah, the joys of
60 years of compounding.
[exit dream, enter question]
As per a recent post, money can be put into an IRA up to the amount of
a person's earned income (I might have misquoted). Has anyone done
this for their child(ren)?
Paul Landsberg
paws@vlsi.columbia.edu
(Editor's Comment - While I will do all I can to help my children's
college education, I think planning for *their* retirement goes beyond the
pale. At some point, they have to plan their own life. Also, there are
severe penalties for early withdrawal of IRA money, which means less money
for their life up to retirement. -IK)
------------------------------
Date: Thu, 15 May 1997 21:54:53 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: IRA and 401K plan - Can I Have Both?
>However, you can put upto $2000 of post tax money (no deduction on 1040)
>into an IRA, or split upto $2250 between your wife and yourself. If you
Nitpick -- starting in Tax Year 1997, the "spousal IRA" limit has been
raised from $2250 to $4000.
- --
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Thu, 15 May 1997 21:58:00 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Microsoft Diversification
>Are there any other examples of a company this diversified?
General Electric (GE). They are huge, they are diverse. Of every
$100 you spend, on everage at least $4 of it ends up in GE's coffers,
perhaps more.
- --
Rich Carreiro
rlcarr@animato.pn.com
(Editor's Comment - They own NBC, for example. At one time,
diversification was a corporate religion (called "synergy"). ITT was a
paradigm of this. Nowadays, "downsizing" and "spinoffs" and "focusing on
the core business" are the mantras. Reminds me of the Buddhist concept of
time as cyclical. -IK)
------------------------------
Date: Thu, 15 May 1997 22:01:08 -0400 (EDT)
From: Satish Kethineni <satishk@paul.rutgers.edu>
Subject: Microsoft Has A Right To Free Enterprise
Scott,
Please note I am not a MSFT employee nor do I have anything to gain
personally, other than the fact that I am a shareholder of the company.
I just felt like saying, that I am so tired of people saying that MSFT
is doing too many things and are lamenting the fact, I think any company
has the full right to do what they think is going to enhance their profits
while serving their customers in a better way, is anybody compaining that
GM is into too many things ? I mean GM is into cars, aeroplanes,
electonic utilities, tv, newspapers etc etc.. but nobody thinks that
they are taking over the world ?
Get real, this is capitalism at its best, ever hear of free market
economy ?
regards
Satish Kethineni
(Editor's Question - Can a company acquire a monopoly position, squeeze
competitors, and drive prices up, with no regulation? -IK)
------------------------------
Date: Thu, 15 May 1997 22:02:04 -0400 (EDT)
From: Francesca Pardo <fp10@cornell.edu>
Subject: Re: credit cards with rebates
Ronald L. Russell wrote:
>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
You might look at credit cards which give you credit at a store where you
typically spend a lot of money. I have a credit card which gives me 2%
back in gift certificates good at Tops grocery store. At the moment
there's no cap on the rebate, and I can easily redeem hundreds of dollars
of gift certificates while buying food that I would have to purchase anyways.
Since my gas credit card gives a 4% rebate on gas purchased at Sunoco, I
make all my Sunoco purchases on that card, and everything else on the Tops
card. If I have a really atypical month and hit the maximum on the Tops
card, I can charge other stuff on the Sunoco card for a 1% rebate.
It is really important to pay these cards off in full each month, since
they charge a fair amount of interest. For me it's also important that there
be no annual charge because that would eat up most of my rebates given my
annual spending.
- -Francesca
(Editor's Comment - One more thing - at least a 25 day grace period before
interest accumulates. -IK)
------------------------------
Date: Thu, 15 May 1997 22:03:14 -0400 (EDT)
From: Susan Mangiero <mangiero@shu.sacredheart.edu>
Subject: Female Sports Companies Web Site?
Hi. Can anyone recommend an information site so I could learn more about
firms in the sporting/sports management area? I want to learn more about
firms which are responding to the growth in female participation in
sports. Thanks. Susan M. Mangiero
------------------------------
Date: Thu, 15 May 1997 22:03:51 -0400 (EDT)
From: "Lester M. Levy, MD" <llevy@hoflink.com>
Subject: Re: IRA and 401K plan - Can I Have Both?
Query in part:
<<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.
I said (in part):
However, you can put upto $2000 of post tax money (no deduction on 1040)
into an IRA, or split upto $2250 between your wife and yourself.
Correction:
This was true through 1996. For 1997, you can share $4000 with your
spouse, working or non-working, if the family gross adjusted income is
at least $4000.
- --
-Lester M. Levy, MD llevy@hoflink.com
------------------------------
Date: Thu, 15 May 1997 22:04:13 -0400 (EDT)
From: Endy Junan <endy@bigfoot.com>
Subject: Re: Any Credit Cards with Rebates? Web Site to Check
Here's a website I usually check whenever I need a new card:
http://www.ece.gatech.edu/users/flur/cards/
Anybody know better site?
Endy
------------------------------
Date: Thu, 15 May 1997 22:06:14 -0400 (EDT)
From: Mandragon <don_m@nde4.nde.state.ne.us>
Subject: 2nd Mortgage with little equity
Hello everyone.
I have a question about getting a second mortgage to consolidate
consumer debts. My wife and I received a mailing that offered us a
second mortgage. After getting details, we were very interested for
several reasons:
1) our monthly debt payments would be lowered,
2) there is almost no prepayment penalty,
3) the interest rate would be lower than on some of our consumer debt,
and
4) most or all of the interest would be deductable at tax time.
This all sounds great to us. The problem I have is that they are
offering approx 125% of the value of our home even though we have very
little equity built up. I realize that this could cause a problem if we
needed to sell the house. But if we were willing to assume that risk
(that we won't have to sell before we get the 2nd mortgage paid off) are
there any other dangers to this? Is it maybe even a scam?
The company name is First Consumers Mortgage Co. in Walnut Creek, CA.
If anyone has had any bad dealings with them we would appreciate
knowing...
My wife and I are not sure what to do. This seems like a really good
deal for us but we have no experience with anything like this. Any tips
or advice would be greatly appreciated!
- --
Don Mayhew, Computer Analyst
Nebraska Department of Education
don_m@nde4.nde.state.ne.us
------------------------------
Date: Thu, 15 May 1997 22:06:46 -0400 (EDT)
From: alufml@fanniemae.com (Francois-Michel Lang)
Subject: Re: credit cards with rebates
I have VISA/MC cards from Shell, Amoco, and Sunoco.
Each pays a 2% rebate (redeemable in gasoline purchases) on all
purchases, and an additional 1% on purchases of their own products.
There's a $70/yr limit on the 2% rebates, so after I amass $3500
of charges on one card, I switch to another. Exxon also has
a card that offers a 1% rebate on all purchases with no $70/yr limit.
I haven't spent much money on gas recently...
------------------------------
Date: Thu, 15 May 1997 22:09:03 -0400 (EDT)
From: "Timothy D. Brown" <0002105445@mcimail.com>
Subject: Borrow Against 401K For House Down Payment?
I have seen the commentary on the question I am about to pose, but
do not remember the answer. Should a 1st time home buyer borrow against
their 401k for the down payment of a house? Also, I am in grad school
and will not have to start repayment of school loans for over a year.
How will that factor into my pre-qualification?
Thanks.
------------------------------
Date: Thu, 15 May 1997 22:09:55 -0400 (EDT)
From: colston@viagrafix.com (Lloyd Colston)
Subject: SBA Online - Possible Inexpensive EMail
>> .............. snip ..............
>> 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.
>> ................ snip ...................
>Juno has discontinued most, if not all, 800 numbers.
>Another possiblity is the local library. More and more public
>libraries are providing internet access -- although I don't know
>whether they limit its use to local residents.
>Lily Chen
>am302@freenet.buffalo.edu
If you can pretend or, better yet, prove that you are a business, can
use an offline mail reader, and are careful not to post advertisements, you
can qualify for a free email account at SBA online
(telnet://sbaonline.sba.gov ). The service has a free 800 number sponsored
by Sprint which works nationwide. One will need a terminal dialer and
offline mail reader program. I use QmodemPro but any program that supports
QWK files would be fine.
Being a business is not hard. :)
Along with Juno cancelling their 800 numbers, they still offer a pretty
extensive callup sites in various major cities around.
I hope this is helpful.
Lloyd Colston Success comes in cans, not can'ts
Pryor, OK USA social worker, writer, editor
Internet business group: http://www.isbc.com
http://www.viagrafix.com/colston/comm.htm
------------------------------
Date: Thu, 15 May 1997 22:10:32 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Re: Tax Consequences for Home Sharing
ANDREA
I am not a tax pro so what follows is my opinion.
When you rent something, you are in a business. You can deduct the
expenses of the business from the income of the business and possibly from
your other income.
You can also depreciate the parts of the house that is used exclusively for
rentals.
You need to check with your tax advisor to be sure you are actively
managing the rental property (you are not a passive investor) to get all of
the tax write offs.
BOB FORD
------------------------------
Date: Thu, 15 May 1997 22:13:11 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Bankruptcy and Home Buying
I am not an attorney and the following is not legal advice. It is just my
opinion. It is based on my experience in California. The laws of your
state may be different.
>Can you buy a house and qualify for this type of mortage while in
>chapter 7?
>The primary reason is that it is relatively easy to repossess
>a house in the event of default, unlike repossession of small
>appliances, clothing, meals, airline tickets, and intangibles
>purchased with revolving credit. The bank is reasonably
>assured it can recoup the investment unless real estate
>values decline drastically.
As a lender, I must disagree. A lot depends if you are in Chapter 7 or
have completed the process. If you are still in bankruptcy, a lender CAN
NOT repossess a property without the Bankruptcy Court approval. This is
not easy and is always expensive. You will have attorney fees and a long
wait.
If you have completed your bankruptcy, you can always file again. If you
file for bankruptcy, an automatic stay is issued which stops all efforts
to repossess. This stay last for 3 to 6 months depending on the bankruptcy
courts schedule.
All lenders know that a bankruptcy is going to cost them a lot of money no
matter how it turns out.
BOB FORD
------------------------------
Date: Thu, 15 May 1997 22:13:58 -0400 (EDT)
From: "Peter Diamond" <diamond@vsi.net>
Subject: Re: Paying Bills Less Than $2
Another story of the absurd...
One month my credit card statement came and the balance due was just over
$1. I called them and suggested that since I was a good customer and paid
my bill in full every month, and since it was going to cost both of us more
than $1 to pay and process it, could I let it roll into the next month and
pay it then?
They said that was fine with them, but they said "interest accrues on all
unpaid balances, regardless of the amount." They had no way to deal with
that situation. So I sent my check...
Peter
------------------------------
Date: Thu, 15 May 1997 22:14:45 -0400 (EDT)
From: Stephan Iscoe <siscoe@worldnet.att.net>
Subject: Re: buy home after bankruptcy?
Sometimes no credit history is worse than bankruptcy...
but to follow-up on Bob Ford's comments - beginning in 1969 thru 1996
I bootstapped myself from flat broke undergrad to real estate 'tycoon'
(on paper) thru various no-qualifying , assumable and FHA mortgages.
A great little primer is _How to Buy a House When You Don't Qualify for
a Mortgage (No Credit Required)_ by Mungo & Yamaguchi. The copy I have
is Signet, 1993. It's full of creative ideas and real life stories.
I can't wait to try "Adverse Possession" ;^)
Stephan
- --
------------------------------
Date: Thu, 15 May 1997 22:15:15 -0400 (EDT)
From: Martin Turnauer <mturnaue@runet.edu>
Subject: rental car companies in Salt Lake City?
Does any one know of inexpensive/discounts rental car companies in the Salt
Lake City area? I need a car for 2 weeks this summer.
Thanks
Marty
Martin S. Turnauer, Ph.D.
Professor, Health & Physical Education
Radford University
Radford, VA 24142
------------------------------
Date: Thu, 15 May 1997 22:16:06 -0400 (EDT)
From: "Michelle Francois"<Michelle_Francois@hmco.com>
Subject: consolidating loans?
Hello,
I have a question about loan consolidation. After graduating from college
in 1996, I had to being paying about 233/month toward student loans. This
takes out quite a chunk from my entry level salary. I am considering
consolidating my loans and extending the loan payback period to 15 years
rather than 10 in order for the monthly payment to be reduced(I read that
this can be done). Is this a prudent decision. I'm not really sure how to
go about doing it and I was wondering if anyoe new the disadvantages of
such an action. Thanks for any information.
Michelle
------------------------------
End of persfin-digest V4 #36
****************************
Articles sorted by: [Date]
[Author]
[Subject]