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Subject: persfin-digest V4 #45
Date: Mon, 9 Jun 1997 17:40:59 -0400 (EDT)
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persfin-digest Monday, June 9 1997 Volume 04 : Number 045
IN THIS ISSUE:
ADVERTISEMENT: MCI AUTOFORWARD [Oppenheimer Software <Connect-Sales@mcim]
E-brokers for US citizens abroad? [Gary Schwartz <gary@netcomuk.co.uk>]
Re: Land Taxes in Upstate New York [RHEALEY@CENTER.COLGATE.EDU]
Re: Excess Pension Distribution? [RHEALEY@CENTER.COLGATE.EDU]
FAQ For Non US Citizens Buying a Car in US [Lloyd Colston <kc5fm@bigfoot.]
Free e-mail? ["Gary M. Oppenheimer" <0002180241@mcimail.com>]
Re: Does My Sister Need a Financial Planner? [David Meyers <dmeyers@panix]
Trading Increment Changes, DJIA [Rich Carreiro <rlcarr@animato.pn.com>]
Re: Followups to "Family Finances" post [David Meyers <dmeyers@panix.com>]
Re: Preschool paying for bruised finger [Boris Varshavsky <borisv@ctron.c]
Used cars and depreciation [Peter Kim <tkimp@tus.ssi1.COM>]
Health Insurance in New York? [Steve0465@aol.com]
Need for Financial Planner/Insurance Salesman/ Estate Planning ["Cal Lest]
Re: Estate Planning [owowo@NetGuard.Net (Richard)]
Opinions and calculating the future value of investments? ["terry turner"]
Dual State Tax Question ["Manamperi, Arjuna" <Arjuna@manex.org>]
IRA question [Ken Stone <kstone@pantheon.yale.edu>]
Re: Central NJ Investment Club [Scott Barnett <sab@newton.crisp.net>]
Request for info on under priced homes in North Atlanta [Tony Patel <tr]
Another IRA Question [Ken Stone <kstone@pantheon.yale.edu>]
Re: Low Minimum Accounts [kristina@net.com (Kristina Miranda)]
Errors and Omissions Insurance for Authors? ["Mangiero, Susan" <MangieroS]
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Date: Mon, 9 Jun 1997 16:56:10 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI AUTOFORWARD
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------------------------------
Date: Mon, 9 Jun 1997 16:57:11 -0400 (EDT)
From: Gary Schwartz <gary@netcomuk.co.uk>
Subject: E-brokers for US citizens abroad?
I'm an ex-pat American living in London, and I'm looking for a
brokerage to handle my IRA account. Any recommendations would be most
welcomed.
My requirements are: electonic trading is a necessity, whether on the
internet or through dialup services. I'm currently trading with
Schwab and using Street Smart for the Macintosh - the dial up goes
through Compuserve's network here. In addition, low commissions are a
plus (of course)!
If they have a London office it would also be helpful, but I'm not
sure that's necessary.
I'm leaving Schwab because they're unable to keep promises with regard
to delivery of funds, and would appreciate recommendations for a
broker who would provide a higher quality service.
Thanks in advance,
gary
G.Schwartz@4CAST-analysis.com
------------------------------
Date: Mon, 9 Jun 1997 16:58:12 -0400 (EDT)
From: RHEALEY@CENTER.COLGATE.EDU
Subject: Re: Land Taxes in Upstate New York
Julie asked for comments on the following: "she owns 1/4 of an acre of land.
It was
recently discovered that for the past 30 years she has been paying taxes
equivalent to someone owning 2 acres of land. She lives in a small town
in upstate New York. The town has admitted that they made a mistake."
I, too, live in upstate New York. A couple of years ago, I bought a cabin
for my daughter (with 2 1/2 acres) and almost immediately, the assessment
was raised. I went to the county office building and did my research and
discovered that places with more acreage had lower assessments. When I
brought this up to the assessment board, I was told that all acreage under 5
was assessed at the same rate. I am surprised to hear that the town admitted
to any mistake.
The assessment is broken into two parts, dwelling and land. You might check
those records for what they're charging neighbors to see if you have a leg
to stand on before making a fuss.
Rashea
------------------------------
Date: Mon, 9 Jun 1997 17:04:46 -0400 (EDT)
From: RHEALEY@CENTER.COLGATE.EDU
Subject: Re: Excess Pension Distribution?
Steven Faulks said: "...(maxed my contributions)...also my IRA and Keogh
plan contributions. With the advent of the 15 %
excess pension (tax sheltered asset ) accumualtion penalty if you die with
too large an accumulation, and the 15 % excess pension (tax sheltered
asset ) distribution penalty (currently on hold until 1/1/2000), coupled
with the income taxes due on most distributions, the wisdom of maximizing
your tax sheltered saving is questionable, unless you will use them up
before death."
WHAT?! How can they tax "excess" pension? No one knows with certainty when
they will die. This is ridiculous. What's "too large an accumulation?" Who
determines it? What's this 15% excess pension distribution penalty? More
info please....
Rashea
(Editor's Comment (not a tax expert) - If you withdraw in any one year,
either:
$750,000 for lump sumps qualifying for averaging; or
$150,000 for IRA distributions plus all other qualified pension, profit
sharing, stock bonus, annuity plans, or annuities,
there is an excise tax (not in effect until 2000) of 15% of the excess.
This is over and above the income taxes due on the distributions. These
still apply even during the waiver period. Cheers, and consult a tax
expert experienced in navigating these murky waters. -IK)
------------------------------
Date: Mon, 9 Jun 1997 17:05:43 -0400 (EDT)
From: Lloyd Colston <kc5fm@bigfoot.com>
Subject: FAQ For Non US Citizens Buying a Car in US
I have a FAQ for International who wish to come to USA and buy a
car. It is at http://www.viagrafix.com/colston/drivefaq.htm
Thanks for the link.
------------------------------
Date: Mon, 9 Jun 1997 17:06:44 -0400 (EDT)
From: "Gary M. Oppenheimer" <0002180241@mcimail.com>
Subject: Free e-mail?
In the category of "there is no such thing as a free lunch", its not
surprising that Juno went to toll numbers. Its still a free e-mail
service... only now, you are paying the phone companies to get to it.
If your e-mail needs are modest, you should consider MCI Mail (which we
advertise in Persfin). For $15/month, you send up to 50 either e-mail
messages of about 2 pages each 1 page domestic faxes, receive an unlimited
amount of e-mail, and do it via a single nationwide toll free 800 number.
That means that if you travel a lot, there is no trying to figure out the
local access number, or paying a surcharge for 800 access.
Take Care,
Gary
NY4
| | www.oppenheimer-software.com | |\
| Gary Oppenheimer | Sales Office |212-724-9785 |MCI ID:218-0241 | |
| Carol Hayes | Customer Support |301-371-7460 |MCI ID:234-9875 | |
| MCI Mail NY4 | Fax Number |212-787-2416 | | |
| New account registration fax number |800-I-WANT-MCI | |
| **Vanity Internet Name Support now availale from sales@dataTNG.com** | |
------------------------------
Date: Mon, 9 Jun 1997 17:07:37 -0400 (EDT)
From: David Meyers <dmeyers@panix.com>
Subject: Re: Does My Sister Need a Financial Planner?
>Please help me settle a dispute between my sister and her husband. One of
>them feels they need a financial planner and the other does not. They have
This could be a difficult issue - it comes down to a question of
one of them feeling competent to deal with their finances on their
own (or at least feeling capable of learning enough to be competent)
and the other either not feeling as capable, or not _wanting_ to
spend the time and energy to learn. This is clearly a very personal
and individual thing, and I would not really want to get tangled
in between them. I would, however, make sure that they have
enough information to make an informed decision as to whether
they need help, and at least as importantly, make sure that they
know how to choose a financial consultant -- it may be possible
that a single visit to a fee-only planner will be all they need,
and that single visit could provide them with enough insight
to further decide whether they can learn or if they should go
again.
I _highly_ recommend a book such as Eric Tyson's "Personal Finance
for Dummies". Bad title, ugly yellow cover, but _very_ good
book - both from the perspective of learning a lot about
your own issues, and from knowing how to choose and get
some outside help.
>both have retirement plans at work and he has about 45,000 in a IRA which is
>invested in Fidelity funds. I think they should open an account with Schwab
>and switch out of Fidelity into something like Vanguard. I don't think they
>need a planner and I send them info whenever it seems to apply to them. They
>do a good job saving. I would appreciate the opinions of others on this
>topic. Let me know if more info is needed. TIA
Well, two accounts alone do not give nearly enough information
for full financial planning - lots of other issues need to be
addressed - things like adequate insurance, wills, cost of
living, homeownership, expected retirement plans, ages, etc.,
not to mention children and college expenses, etc. etc.
If we can assume that all the other related issues have been
dealt with and all you are talking about is portfolio
management of retirement savings, it may be pretty simple.
Again, I'd recommend Tyson's book, and possibly a subscription
to a magazine like Kiplingers. You are probably right that
they don't need professional planning - I don't think most
people do - but they do need to spend a little time and
energy and incentive to learn about these things. Of course,
even if they do hire a planner, they _still_ ought to learn,
if not to second-guess or verify, at least to _understand_
what that planner is telling them.
- --D
------------------------------
Date: Mon, 9 Jun 1997 17:08:44 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Trading Increment Changes, DJIA
The NYSE surprised the investment world by endorsing a changeover
to decimal pricing and $0.01 trading increments. The Big Board says
its computers will be ready in a year or so, but it will wait until
the entire industry is ready, which is expected to be around 2000.
In the meantime, the NYSE has joined AMEX and NASDAQ/NMS in switching
to a 1/16 increment.
On another front, Dow Jones, Inc. has licensed out the DJIA for investment
products for the first time. There will now be a DJIA unit trust along
with options, futures, and options on futures based on the DJIA.
== Rich
rlcarr@animato.pn.com
(Editor's Comment - I've seen some NASDAQ quotes in 1/32 increments. -IK)
------------------------------
Date: Mon, 9 Jun 1997 17:09:18 -0400 (EDT)
From: David Meyers <dmeyers@panix.com>
Subject: Re: Followups to "Family Finances" post
>>* Be more aggressive, especially with retirement, you still have a
>least
>>20 years. 30% fixed is probably too much at this point. Move some of
>>that money to equities.
>Agreed. Convincing my spouse of this may take some doing, however.
Of course, if you have money tagged for things other than
retirement, like house purchase or car purchase or even
college, you do not want to be as aggressive with that portion
of your portfolio. Make sure you know what you are planning
to do with what money/investments.
>>* Get some level premium term insurance. You can get 20 yr/$500K
>Also high on my list. There isn't much room in our cash flow for this
>right now, would it be better to cut funding for the college fund,
>retirement, or the emergency fund to accomplish this? My answer
>would be the college fund, but I'm interested in other responses.
I'd be inclined towards cutting from college fund for this, too.
Retirement money may be shielded from loan/grant calculations
at college time, and the emergency fund is for emergencies,
not for insurance (though it is a form of insurance itself!).
Remember - particularly if you have kids - this insurance
itself may very well end up paying for college, not to mention
day to day living expenses if something were to happen to you!
Level premium term life is pretty cheap for what you get,
particularly if you are fairly young - but you have to
get a good idea of what that insurance is _for_. If you
have no dependents, you may not need much/any at all. There
is a very good discussion about this in "The Wealthy Barber",
by David Chilton (I think - I'd have to check to be sure of
his name).
>>* See if you can get disability insurance through one of your
>>professional organizations. You didn't mention your profession but each
>>of you need about 70% if you can't work.
>Again, cash flow problem, same as above.
This could be even more important than the life insurance,
especially, again, if you have no dependents.
>>* Take advantage of the IRA both you and spouse even if its
>>non-deductible.
>
>Absolutely. I'm putting in the max $2000, my spouse still has room
>to put more into the 401k, which should come before another IRA.
>I hate to keep falling back on cash flow, but we're doing what we can
>with what we have.
I would not make funding a NON-deductible IRA as high a
priority as I'd make other things, assuming you are already
maxing out a 401k. If you have enough to make non-deductible
contributions on top of 401k max, you might want to consider
investing in some other relatively tax-efficient things
like an index fund - most of the gains are unrealized and
the dividends are relatively small - yielding effectively
similar benefits in terms of tax deferral, but without
the paperwork and lack of accessibility of the IRA.
>>* Do the Big Picture on all your investments. Use excel
>spreadsheet and
>I do this with Excel, and am reasoably satisfied with the current
>asset allocation. Remember, *I* might prefer to be a little more
>aggressive, but my spouse differs. We have to tread the line.
Again, consider what the money will be used _for_. If
you are, say, saving up for buying a house and will need
the down-payment in the next year or two, it would be
quite reasonable to have what looks like an _overall_
conservative position (ie. lots of cash relative to
stocks), but if all the cash is your down-payment savings
and all your stocks are your retirement account, your
retirement account is not conservative at all.
>OK, fair enough. I was just trying to gauge whether the
>emergency fund should take precedence over paying down
>the mortgage. We're both employable and have good job
>security. Of course, when times are good, the emergency
>fund is viewed as less important...
If you pay down the mortgage but have no emergency fund,
and, say, you both lost your jobs - how would you make
mortgage payments? Your mortgage is probably the cheapest
money you will ever borrow. There is nothing wrong with
paying it down, but I'd doubt that paying down the
mortage is something you could possibly consider to be
and "emergency" and thus not likely to be a good use of
your emergency money.
>Yes, I realize I'm underinsured, but as stated above, we don't have
>the extra cash, and I'm unsure what to cut to free up cash to pay for
>insurance. We each have a durable power of attorney naming the
>other as executor.
Make sure that backups are added. You and your spouse are likely
to be together much of the time and in the event of an accident
which triggers the necessity of that power of attorney (sorry,
it is morbid, but consider a car crash for example).
> We have wills, but they were written when we
>were newly married. We've since had kids and bought a house, so
>I know we need new wills. Reciprocal guardianship of the children
>has been discussed fleetingly with relatives, but nothing is in writing.
You need to do this NOW - possibly more important even than
getting that life insurance in order. For me, at worst, my
assets go to places I don't want. For you, your _kids_
are at stake. Get this dealt with immediately.
Best of luck. You are doing the right thing - lots of people
don't even think about this stuff and you are light years
ahead of them. Sounds like you need a little tweaking and
only two or three high priority issues (life and disability
insurance and wills).
- --D
------------------------------
Date: Mon, 9 Jun 1997 17:10:00 -0400 (EDT)
From: Boris Varshavsky <borisv@ctron.com>
Subject: Re: Preschool paying for bruised finger
Just to clarify your perspective...
If your kid is visiting a friend in his house, and does the same thing
with a bathroom door, would you insist on calling upon their homeowners
insurance?
- -Boris
Dover,NH
------------------------------
Date: Mon, 9 Jun 1997 17:10:40 -0400 (EDT)
From: Peter Kim <tkimp@tus.ssi1.COM>
Subject: Used cars and depreciation
Bob was talking about used cars.....
>
> When I heard that, it made me want to sell ours. I'd
>jump at the chance to use a new car for 5 years for a total price of $2900.
>
Somesh responded:
>Methinks your friend got taken for a ride. A $4000 ride.
>According to Edmunds, the prices for a 92 Honda Accord LX is
>
>4 Dr LX Sdn
> Trade-in $6,500
> Market $8,440
>Add $245 for AT-4 Transmission
Somesh and others,
There is one thing that Somesh failed to account for. The price on
edmunds web site is the starting point. But if you read their pages
very carefully, you'll notice that there are many items that add to
their "base price." They usually have a table for each car and items
that add to the final price. Items include things which were _standard_
on the vehicle model - alloy wheels, air conditioning, spoiler, AM/FM
radio, etc. I was in the market for a used car for last two months
and was wondering why Kelly's Blue Book price was so much higher than
edmunds until I figured out their "accessory" table. Also after examining
many different types of used cars, I came to this conclusion: don't
buy a used Honda or a used Sports Utility Vehicle. SUV's are in fad
right now - everybody and their dog wants one. This leads to a market
imbalance where the demand is significantly higher than the supply.
Just check out the used SUV prices - you'd be amazed. At auctions this
demand is rather dramatic - every SUV fetches very high price and every
single one of them finds a buyer. Hondas always have held their value
and so I also don't consider the used Honda prices to be acceptable.
Any Hondas/Acuras bought today should be a new one. (But for SUVs,
even the new ones are total rip-offs) As for me, I bought a used VW.
The price depreciates very fast and nobody wants one. A '91 car (67K) for
less than $5000 was a pretty good deal for me - I also know how to fix
these cars since I owned another VW for 10 years (170k). For people who
think used cars are the only way to go, consider my story -
I had a very specific model in mind. And I shopped exclusively
for this one vehicle model. Before I actually bought one, I think I
must have seen 30-40 vehicles (of the same model and year range).
I only saw 2 cars which had not been involved in some sort of a frontal
accident. I estimate that about 10 cars had their odometer turned
back. The belief that people sell their cars because they have some
sort of a problem with them has quite a bit of truth to it. It takes
skill, time, and patience to buy a used car that is an acceptable value.
- Peter Kim
------------------------------
Date: Mon, 9 Jun 1997 17:11:17 -0400 (EDT)
From: Steve0465@aol.com
Subject: Health Insurance in New York?
My son, age 23, has recently graduated from college and plans to take up
residence in NYC. I'd like to find a reliable and reasonable HMO provider
for him, and know nothing about what's available in New York. Any
suggestions??
------------------------------
Date: Mon, 9 Jun 1997 17:29:07 -0400 (EDT)
From: "Cal Lester C.L.U." <Cal_Lester@msn.com>
Subject: Need for Financial Planner/Insurance Salesman/ Estate Planning
>Subject: Does My Sister Need a Financial Planner?
Please help me settle a dispute between my sister and her husband. One of
them feels they need a financial planner and the other does not. They have
both have retirement plans at work and he has about 45,000 in a IRA which is
invested in Fidelity funds. I think they should open an account with Schwab
and switch out of Fidelity into something like Vanguard. I don't think they
need a planner and I send them info whenever it seems to apply to them. They
do a good job saving. I would appreciate the opinions of others on this
topic. Let me know if more info is needed. TIA
>>>> From what you write, it does not seem that they need any help at all. A
Financial Planner would be of nominal assistance for their WORK retirement
plans. He has a nominal investment with an established Mutual Fund ( which YOU
may or may not like ). Unless they have a great deal more of assets, I see no
reason to pay anybody anything to make them a few cents more in potential
earnings.
Cal Lester CLU
>Subject: Looking For Insurance Salesmen
If you are an insurance salesman, I would like to ask you a few
questions regarding the industry privately in email.
This is not something I am trying to sell you. I seek
information only. No salesman will call. :)
- - --
Lloyd Colston
Pryor, OK USA
Internet business group: http://www.isbc.com
KC5FM Home page http://www.viagrafix.com/colston
>>>> If you truly seek information, ask away ! ! ! ! !
Cal Lester CLU
Cal_Lester@msn.com
- ------------------------------
>Subject: Estate Planning
I believe a basic concern of many persons in their middle years who are
still fortunate enough to have their parents alive, is what steps can be
taken to protect a family's moderate estate from the potential hazards of
long term care in a nursing home. My understanding is that
Medicare/Medicaid and other insurance carriers will not cover long term
facility care until an estate's assets are liquidated.
>>>> MEDICARE will pay 100% of the cost of a SKILLED CARE NURSING HOME after a
three day stay in a hospital. They will then pay for the cost of a
Semi-private room with a $95.00 DEDUCTIBLE for the next 80 days. They will pay
NOTHING after 100 days.
MEDICAID, IF you qualify, and the qualifications are different in each State,
but it is mainly for people who have little or no assets other than possibly
their home, Will pay the ENTIRE cost of care in a Nursing Home ( but ONLY if
you qualify).
Insurance Carrier's will pay regardless of circumstance, based on the
benefits in the policy that you BOUGHT.
If this is true, are there strategies us average Americans can use to
protect our family stature, whatever that may mean to you. I refer to
estates of $3 to $6 hundred thousand, including real estate, personal
property, pension assets etc.
>>>> The BEST strategy is to purchase Long Term Care coverage, preferably a
combination policy, one that pays for care no matter what facility use, as
YOUNG as possible. Generally speaking, the cost below age 65 is nominal. There
is a BIG jump at age 65, and multiplies thereafter. However please be aware
that under the new Kennedy Kassenbaum Bill, some or all of that premium can be
Income Tax Deductible.
I have heard that elderly can sell their home to younger family members for
$1, and then pay rent in amount of taxes etc to the younger members, to remove
the house from this equation.
>>>> I would suggest that you discuss this with your Attorney. That same
Kennedy Kassenbaum Bill provides severe penalties ( I do not have them at hand
at this moment ) if you transfer property to anyone to become MEDICAID POOR
during a certain time period.
Cal Lester CLU
Insurance Course Coordinator
Broward Community College
------------------------------
Date: Mon, 9 Jun 1997 17:30:19 -0400 (EDT)
From: owowo@NetGuard.Net (Richard)
Subject: Re: Estate Planning
>Robert Wrote in #44:
I believe a basic concern of many persons in their middle years who are
>still fortunate enough to have their parents alive, is what steps can be
>taken to protect a family's moderate estate from the potential hazards of
>long term care in a nursing home. My understanding is that
>Medicare/Medicaid and other insurance carriers will not cover long term
>facility care until an estate's assets are liquidated.
>
>If this is true, are there strategies us average Americans can use to
>protect our family stature, whatever that may mean to you. I refer to
>estates of $3 to $6 hundred thousand, including real estate, personal
>property, pension assets etc. I have heard that elderly can sell their
>home to younger family members for $1, and then pay rent in amount of
>taxes etc to the younger members, to remove the house from this equation.
Several thoughts for you to consider:
Giving away assets within five or three years of death will disqualify one
from Medicaid (check with your state).
Why not let elderly parents keep there money and provide for their own care?
That is the dignified thing to do.
Always have elderly parents have a will, durable power of attorney for
financial affairs, durable power of attorney for health care, and living
will (that is four distinct documents). Also, elderly with over $200,000 in
assets, should have a revocable trust to eliminate probate costs.
Nursing home insurance must be actuarially sound. Therefore, getting it or
not is a toss-up. I prefer not to get it. Why pay the insurance company
for being the middle agent? If you can select against the insurance
company, go ahead and get it.
Richard A. Bauer ---- St Louis MO
www.netguard.net/~owowo/index.htm
------------------------------
Date: Mon, 9 Jun 1997 17:33:44 -0400 (EDT)
From: "terry turner" <tgturner@vnet.net>
Subject: Opinions and calculating the future value of investments?
I am 38 and invest $1000 per month into a DPS plan, several mutual funds
and individual stocks. When Jan. 98 arrives, my contribution will be
raised to $1200 per month. When Jan. 99 arrives, my contribution will be
raised to $1500 per month.
I will then contribute $1500 per month for the next 20 years. At that time
I will be 60 years old and plan to retire. All my investments are
established as automatic account withdrawals. Here is a breakdown of the
$1000 invested each month:
$300-pre-tax payroll deduction, Philip Morris Co. stock
$166-Lexington Corporate Leaders Fund, wife's IRA
$100-Janus Worldwide Fund, husband's IRA
$85-T. Rowe Price European Fund, husbands's IRA (9 months per year to avoid
penalties)
$100-Proctor&Gamble stock, DRIP
$100-Exxon stock, DRIP
$100-Merck stock, DRIP
$100-Coca-Cola stock, DRIP
Will soon be adding Home Depot stock.
The time value of money is powerful. I'm an aggressive, long term investor.
You experts reading this, what are your thoughts about this portfolio?
I'm planning for an average annual return of 9% over the next 21 years.
Expext to be in a 28-32% tax bracket with average annual inflation of 4%.
Where is a Web site that can calculate the future value of my
contributions?
Dividends will be a bonus.
I'm just an average person who took time over the past 6 years to learn how
to do this.
Thanks to many nationally recognized experts for their help: Peter Lynch,
Sir John Templeton Bob Brinker, Danny Fontana, Bill Staton, and our own
Ira Krakow.
(Editor's Comment - I'm humbled by being mentioned in such austere
company. :) -IK)
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Date: Mon, 9 Jun 1997 17:34:16 -0400 (EDT)
From: "Manamperi, Arjuna" <Arjuna@manex.org>
Subject: Dual State Tax Question
If my wife is a resident of one state (KS) and I am a state resident of
another (CA - after moving from KS) what are consequences of the
following:
1. If we file joint federal tax returns, can we file separate state tax
returns.
2. If I buy a house in KS (my residency is in CA) how will that affect
claiming deductions at the federal and state level.
3. Is it a good idea to buy a house in CA or KS from tax point of view,
given the fact that it is I who will be making the payments from my
earnings in CA? Will the decision to buy the house in KS make me a
resident of KS instead of CA where I reside? Else can I make my wife
the sole owner of the house in KS and then make payments myself and
claim deductions?
Thank you.
AM
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Date: Mon, 9 Jun 1997 17:35:02 -0400 (EDT)
From: Ken Stone <kstone@pantheon.yale.edu>
Subject: IRA question
After filing an extension, I have finally gotten around to filling out the
1040. It is after midnight and I am bleary-eyed. An IRA question that I
thought that I had resolved earlier during this year's tax planning has now
come up.
I file jointly. My wife does not work.
My income is greater than 50K.
I was eligible for (and contributed to) a 403b for the first six months of
1996.
Due to a change of employment, I was ineligible for any retirement plan for
the second six months of 1996.
Question: what is the total deductible and non-deductible IRA that I and my
wife are eligible to contribute for 1996?
Thank you,
Ken
P.S. May I take advantage of this forum to ask a minor tax form question:
what is supposed to be entered in Schedule C in Box B (principal business
code)?
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Date: Mon, 9 Jun 1997 17:36:11 -0400 (EDT)
From: Scott Barnett <sab@newton.crisp.net>
Subject: Re: Central NJ Investment Club
Sandra,
We started a club in Central NJ last June (1 year anniversary!). We
are using the NAIC principles to guide us. I think the experience
has been a great learning experience, as well as fun.
I could go on for a while about how we got to where we are. If you
have any specific questions, I'd be happy to answer them. I would
strongly recommend that you contact your local NAIC "Director". These
are volunteers who help spread the gospel on NAIC and do training
and coordinate seminars, classes, etc. We had our local NAIC Director
come to our first meeting and explain what needed to get done to start
the club. Invaluable, in my opinion. There are also classes every month
within the state on all aspects of investing, many of which have direct
value to us and our club.
- --
Scott Barnett
sab@crisp.net
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Date: Mon, 9 Jun 1997 17:36:30 -0400 (EDT)
From: Tony Patel <trp@sprynet.com>
Subject: Request for info on under priced homes in North Atlanta
Hi,
I am looking for resources to get information on purchasing foreclosure
homes, homes that are repossesed and homes that will generally go for
less than their market value because of some kind of need to sell fast
such as a divorce settlement or perhaps a death in the family, for homes
in the Northern suburbs of Atlanta. Does anyone know of any ?
Thanks in advance.
Tony
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Date: Mon, 9 Jun 1997 17:36:49 -0400 (EDT)
From: Ken Stone <kstone@pantheon.yale.edu>
Subject: Another IRA Question
If we make a non-deductible IRA contribution for a non-working spouse ($250
for 1996), is this reflected on the working spouse's 8606? Do we file a
separate 8606 for the non-working spouse? Or does it not get reported?
Thanks.
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Date: Mon, 9 Jun 1997 17:37:52 -0400 (EDT)
From: kristina@net.com (Kristina Miranda)
Subject: Re: Low Minimum Accounts
I don't know what area you are from but in No. California we have a brokerage
called Quick & Reilly. I opened an acct with them a few years ago (2?)
with only about $500 or $700. I bought small amounts of some cheap stocks
and they don't even charge me a monthly management fee. I do get a statement
every month and I keep a few bucks (<$30) in their money market acct. which gets
"swept" daily or monthly for interest payments. I opened the acct. primarily
because I needed a holding place for my employee stock purchases and they
didn't charge me anything to do a transfer and receive certificates from my
employer on a quarterly basis. I have been very happy with them. Their purchase
fee is about $37 for smallish transactions which is kinda high for small
transactions but all of the less expensive brokers I've looked at do require
higher balances.
Good luck and congratulate your son for making such a smart decision about
how to save his money.
Kristina
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Date: Mon, 9 Jun 1997 17:38:10 -0400 (EDT)
From: "Mangiero, Susan" <MangieroS@sacredheart.edu>
Subject: Errors and Omissions Insurance for Authors?
I am considering authoring a book on investments. Someone mentioned to
me that I should consider buying E&O (errors and omissions) insurance
for book authoring and/or consulting. Is there anyone who can tell me
more about this type of insurance and whether it is even necessary?
Thanks.
Susan M. Mangiero, Ph.D., CFA
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End of persfin-digest V4 #45
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