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Subject: persfin-digest V4 #59
Date: Tue, 15 Jul 1997 21:34:53 -0400 (EDT)
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persfin-digest Tuesday, July 15 1997 Volume 04 : Number 059
IN THIS ISSUE:
ADVERTISEMENT: LAN ACCESS TO MCI MAIL [Oppenheimer Software <Connect-Sal]
Re: Debit Card Article in the New York Times [David Cay Johnston <davidc]
On-Line Broker for Investment Clubs ["Timothy A. Budd" <budd@owl.csusm.ed]
Re: Banks Are Being Logical - Are Their Practices Predatory? [Greg Panayo]
The Motley Fool's Unemotional Value Investing Approach [ANDREA WELCH <ACE]
How Will Capital Gains Tax Law Changes Affect the Market? [curious@sirius]
Times Have Changed! [BOB FORD <BOB_FORD@compuserve.com>]
Re: Are Banks Predatory? ["Ken Meinken" <kmeinken@one.net>]
How Can One Make Small, Regular Investments? ["Ken Meinken" <kmeinken@one]
Re: How Can One Make Small, Regular Investments? [jphoebus@shore.interco]
Re: PhD vs Bachelor's [JONESW@CCSUA.CTSTATEU.EDU]
Re: tax lien certificates as investments? [Stephan Iscoe <stephan@mail.or]
Any Experience With Citizens Bank? [Ken Stone <kstone@pantheon.yale.edu>]
Where to get historic data on Month End NAVs for Mutual Funds? [Gary Lott]
Does a Debt Die With You? [BOB FORD <BOB_FORD@compuserve.com>]
Re: Long distance PhD - Not A Great Idea [GeorgeS <pip@shore.net>]
Money for College? [BOB FORD <BOB_FORD@compuserve.com>]
Re: How Can One Make Small, Regular Investments? [Susan Mangiero <mangier]
Re: Tax Lien Certificates as Investments [BOB FORD <BOB_FORD@compuserve.]
Information Needed for Elementary School Economics Projects [Martin Turna]
Three Types of Accounts [BOB FORD <BOB_FORD@compuserve.com>]
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Date: Tue, 15 Jul 1997 21:09:58 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
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------------------------------
Date: Tue, 15 Jul 1997 21:11:50 -0400 (EDT)
From: David Cay Johnston <davidcay@nytimes.com>
Subject: Re: Debit Card Article in the New York Times
Ira,
Two of your members posted items about my colleague David Morrow's front
page piece last Sunday on debit cards and today you mentioned me as someone
who reads your daily newsletter (a useful source for knowing which
tax/401(k)/pension issues are of significant concern to people.)
First, the answer to your musing about my possible role in the story: I
had none. I just returnewd from vacation and read the story like everyone
else when the paper hit my doorstep.
One of the two postings asked whether The New York Times "lifted" the
article. I suppose the same accusation of unethical conduct could be hurled
by any number of news groups since I just did a DEJA NEWS search and found
more than 1,800 postings on this subject in a variety of news groups.
A simple reading of David Morrow's Sunday story shows that this
accusation collapses with a simple reeading of the story. Mr. Morrow's story
shows that he conducted numerous interviews, using named sources throughout.
That is, he did his own research and did not "lift" anything. And there is a
great deal more in his story than what appeared in PERSFIN.
Cheers,
David Cay Johnston
Reporter
The New York Times
229 W. 43rd Street
New York, N. Y. 10036
212.556.3605 talk
212.556.4007 fax
------------------------------
Date: Tue, 15 Jul 1997 21:12:39 -0400 (EDT)
From: "Timothy A. Budd" <budd@owl.csusm.edu>
Subject: On-Line Broker for Investment Clubs
I am seriously thinking about starting an investment club. I've already
taken a look at the NAIC webpage, and am already starting to gather that
information. However, with respect to selecting an on-line broker, I need
some further (any) recomendations. I am avowedly not too familar with the
on-line broker concept, but I think it will be an easy way to keep track of
the Clubs portfolio. Any suggestions would be greatly appreciated. Thanks.
------------------------------
Date: Tue, 15 Jul 1997 21:13:33 -0400 (EDT)
From: Greg Panayoti <greg_panayoti@il.us.swissbank.com>
Subject: Re: Banks Are Being Logical - Are Their Practices Predatory?
Ken Meinken wrote:
>
> Greg,
>
> I must say that I am amazed at your response. Let's see, should we
> let the government protect these people who you feel are too
> incompetent to manage their own lives? Should we forbid the free
> market?
>
So, let's see ... According to you, all is fair in business and as long
as there's money to be made everything is OK. Well, I strongly
disagree. Business owes the people it makes it's money from more than
that.
> Your arguments are pretty weak. No bank is going to intentionally
> choose people they expect to fail. That would be stupid management.
> The real risk is that they become too easy and take too much risk in
> extending credit. Believe me, no bank wants to have customers unable
> to pay!
And you're being extremely naive. Banks and "financial services
companies" are in the "subprime lending market" to push people to the
brink of extinction (but agreeably not over). The 25%+ they make more
than covers the percentage of people that default. The prey on people
who have no where else to go either because of their own mistakes or
some other misfortune. To a large extent, they do provide a needed
service but whenever there is a dollar to be made there are issues. You
call it capitalism .. I call it greedy corporate loan sharking.
> IMO, it's been pretty well demonstrated that most people are more
> responsible than governments are. The free enterprise/capitalist
> system has brought us all (including the oppressed people you want to
> protect) a better life than governments have ever provided. In case
> you haven't noticed, the socialistic government approach has been a
> real flop! We have very little real poverty in the U.S. compared to
> what exists in most countries that have been run by socialistic
> governments.
Free enterprise good. blah blah blah ..capitalism good blah blah blah.
socialism bad.. It all sounds so simple. Why is it that anytime someone
questions the mainstream they are labled a socialist or a liberal?
I didn't say it was our capitalist system at fault - I say it's greedy
corporate America, Wall Street, and our government to blame. Greedy
corporate America speaks for itself. Wall Street shuns real companies
like Chrysler (see rising profits, falling stock prices) and applauds
companies in the "sub-prime" lending markets (loan sharks) and companies
using illegal 10 cent an hour child labor in depressed countries. That
they love. Government is to blame for not having any laws to govern
what these companies can and can't do. Is this SO extreme? I think
not.
We have laws that govern many professions and businesses to protect the
public (doctors, lawyers, realtors, BANKS, accountants, etc) and these
professions STILL make money and are very healthy. We SHOULD have laws
to protect us against the leaches in the "sub-prime lending business"
and better laws when dealing with banks.
See, when a bank (see Norwest, Nations Bank) wants to get into the
wallet-sucking business they set up a "financial services company".
There are very few rules these companies have to follow because this is
a relatively new and booming industry and is considered a "non-bank"
business. There are not FDIC insured and therefore do not have to
follow FDIC regulations. There also is no federal law governing how
much interest they can charge (although some states have them. NY is
capped at 25%. NJ has no usary laws.).
>The only way the rest of us "end up footing the bill" is by using the
> same cards and paying the monthly interest rates. You and I have
> choices and I can assure you, I am not subsidizing anyone with my
> credit cards
Again ... totally wrong and naive. The price of ALL goods and services
is not affected by people who ring up alot of debt and don't pay it?
Who do you think makes up the difference in the price of the goods you
buy and the amount of fees and interest you pay on those credit cards
and to your bank?! You're subsidizing way more than you think - don't
kid yourself.
> Well of course the rich folks haven't run up bills they can't pay! If
> they did, they wouldn't be rich, by definition! Your attitude is
> very patronizing.
Really? "Rich folks" is a whole other conversation - they have an equal
or more amount of debt proportionate to their income (compared to
everyone else). *Real* wealthy people have very little (destructive)
debt.
When a consumer group took Banc One to federal court when it applied to
acquire First USA earlier this year on charges that it "unfairly targets
minorities for high interest loans", the Fed acknowledged the complaint
"raises serious questions about fair lending at Banc One" - but the
merger went on anyway. Why? You figure it out.
> Competiton (including competiton in advertising) has been very good
> to American people. I am much more afraid of government and
> "do-gooders" than by capitalism.
>
> Ken
blah blah competition good, blah blah do-gooders bad. I hope some day
you never find yourself on the wrong side of the desk at the local
wallet sucking institution that you cherish so much. There are several
ways you could end up there besides being financially irresponsible just
in case you're telling yourself "That could NEVER happen to me!":
* Someone "stealing your identity", charging up your cards and ruining
your credit.. it's happend and is NOT very easy to correct (afterall ...
why would they want to correct it? - again very few consumer protection
laws in place here).
* You could also be drained by a court proceeding/divorce (ask OJ!)
* lastly you could be left virtually penniless by a major illness. (my
local hospital charges $1850 per day for a regular room. My father just
got done with a 7 day stay for his bad heart. Total bill for stay and
some tests: $30,000).
My apologies to everyone for a longer-than-usual message.
Greg Panayoti
------------------------------
Date: Tue, 15 Jul 1997 21:14:47 -0400 (EDT)
From: ANDREA WELCH <ACE.AWELCH@MEMO.ACEHARDWARE.COM>
Subject: The Motley Fool's Unemotional Value Investing Approach
Hello:
As a result of a persfin post regarding the "foolish four"
approach to investing, I've begun researching the various
investment approaches found at The Motley Fool web site.
Has anybody else looked at the "unemotional value" approach,
specifically the "uv2" model. Briefly, it suggests
taking the 10 Dow stocks with the highest dividend yields and
ranking them by stock price, low to high. You then check to see
if the #1 stock (the cheapest) is also the highest yielding - if
so it is dropped from the list. The traditional unemotional value
investor would then just buy the top stocks in equal dollar
amounts according to his/her requirements. The uv2 investor would
double up on the top two stocks. All investments should be held
for one year and then reevaluated.
According to TMF this approach has been the overall best performer
for the past 35 years ($10,000 invested in 1961 using uv2 would
have grown to approx. $9.4 million by the end of 1995).
Are any of you persfiners following the uv2 approach, or the
traditional unemotional value approach? If so, what are your
thoughts concerning it? I'm seriously considering taking the
plunge. However, I've never invested outside of mutual funds and
am apprehensive about losing the sense of security that pooling
money with other mutual fund investors brings me.
On another, but related, note - is anybody out there interested in
forming an investment club? If anybody would like to enter into
discussions regarding the possibility of investment club
investing, feel free to send e-mail.
Andrea
------------------------------
Date: Tue, 15 Jul 1997 21:15:36 -0400 (EDT)
From: curious@sirius.com
Subject: How Will Capital Gains Tax Law Changes Affect the Market?
Does anyone think that the possible impending capital gains tax law
changes could actually affect the market, because everyone is waiting to
sell after they go into effect?
I. Good
------------------------------
Date: Tue, 15 Jul 1997 21:16:39 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Times Have Changed!
>While I agree people should take responsibility for their own affairs, "we"
>should not make that more difficult than it has to be. "We" should be giving
>these people good advice and examples, not piss poor ones.
>It's also no secret that the majority of the people in these catagories
>are poor whites and blacks, women and young adults. It's
>discriminatory and wrong and should be stopped. I am not, however,
>naive enough to think it ever will.
>Greg Panayoti
My how times have changed. Just a few years ago the argument was made
that it was discriminatory that poor whites and blacks, women and young
adults could not get a credit card.
BOB FORD
------------------------------
Date: Tue, 15 Jul 1997 21:17:51 -0400 (EDT)
From: "Ken Meinken" <kmeinken@one.net>
Subject: Re: Are Banks Predatory?
Greg,
I must say that I am amazed at your response. Let's see, should we
let the government protect these people who you feel are too
incompetent to manage their own lives? Should we forbid the free
market?
Your arguments are pretty weak. No bank is going to intentionally
choose people they expect to fail. That would be stupid management.
The real risk is that they become too easy and take too much risk in
extending credit. Believe me, no bank wants to have customers unable
to pay!
IMO, it's been pretty well demonstrated that most people are more
responsible than governments are. The free enterprise/capitalist
system has brought us all (including the oppressed people you want to
protect) a better life than governments have ever provided. In case
you haven't noticed, the socialistic government approach has been a
real flop! We have very little real poverty in the U.S. compared to
what exists in most countries that have been run by socialistic
governments.
You seem to believe that people are totally incompetent and that
government can do so much better for them. No thanks!
The only way the rest of us "end up footing the bill" is by using the
same cards and paying the monthly interest rates. You and I have
choices and I can assure you, I am not subsidizing anyone with my
credit cards (unfortunately, I am subsidizing a whole lot of people
with my taxes wasted by government.)
> It's also no secret that the majority of the people in these
> catagories are poor whites and blacks, women and young adults.
> It's discriminatory and wrong and should be stopped.
Well of course the rich folks haven't run up bills they can't pay! If
they did, they wouldn't be rich, by definition! Your attitude is
very patronizing.
Competiton (including competiton in advertising) has been very good
to American people. I am much more afraid of government and
"do-gooders" than by capitalism.
Ken
------------------------------
Date: Tue, 15 Jul 1997 21:18:08 -0400 (EDT)
From: "Ken Meinken" <kmeinken@one.net>
Subject: How Can One Make Small, Regular Investments?
> My neighbor who is a city policeman inquired about whether it is possible
> to make regular small contributions to any stock or bond mutual funds. I
> don't know the answer and thought perhaps someone on this list serv
> might know. Also, I'm not sure what my neighbor meant by "small" but let's
> say about $50 per week. Thanks in advance.
Alger, Janus and I believe Invesco all permit small accounts if you
have automatic deductions from a checking account.
Ken
------------------------------
Date: Tue, 15 Jul 1997 21:18:45 -0400 (EDT)
From: jphoebus@shore.intercom.net (John K. Phoebus)
Subject: Re: How Can One Make Small, Regular Investments?
Bboth Twentieth Century (800-345-2021) and T. Rowe Price (800-638-5660)
allow even $50/mo. contributions to some of their funds.
Source: Andrew Tobias, The Only Investment Guide You'll Ever Need (1996).
------------------------------
Date: Tue, 15 Jul 1997 21:19:27 -0400 (EDT)
From: JONESW@CCSUA.CTSTATEU.EDU
Subject: Re: PhD vs Bachelor's
My post on Ph.D. costs came to the conclusion that financially, a PhD is
never a winning proposition assuming that the estimates that I used for
TA income and years to completion and salaries are correct. I tried to
explain my logic so that anyone else can substitute the numbers they think
are appropriate and come up with different dollar amounts, which in some
cases would show that the PhD comes out moderately ahead. Even when it
doesn't, it is often because the person chooses a lower-paying career such
as college professor, probably in the belief (as in my case) that a high-paying
job that is not especially enjoyable is not as good as half the money in a
really great job, as long as you have enough to live comfortably on.
My MAIN POINT was that inflation and taxes and annual increments and
corrections for the time value of money are all required for a good estimate
of the result for these kinds of calculations. This PhD situation makes for
a nice illustration, but the answer itself is not particularly important,
except for one reason: Some people think that PhD pull down obscene salaries.
The comparison I made shows that, in perhaps the majority of cases, the
higher salaries they get are not even enough to compensate them financially
for what they gave up.
Finally, I never intended to indicate that these financial calculations are
an important part of the decision to get a PhD; people who get PhD's have
more important reasons than money for getting them, though they expect to
earn a reasonably good salary when they finish them, at least enough to pay
off student loans.
For your information, my daughter recently began studies for her PhD and
I took my estimates from her situation; my own PhD studies are too long
ago to be of use in these estimates.
Bill Jones
------------------------------
Date: Tue, 15 Jul 1997 21:20:01 -0400 (EDT)
From: Stephan Iscoe <stephan@mail.org>
Subject: Re: tax lien certificates as investments?
Leo asked for more info:
Check out Joel Moskowitz' _The 16% Solution_, ISBN 0836280849.
Includes a very helpful state-by-state comparison of statutes and
interest rates and a section on Environmental Liabilities (if you're
considering investing in liens on commercial property).
Best of luck,
Stephan
at http://www.tpw.com/mi/siscoe
------------------------------
Date: Tue, 15 Jul 1997 21:21:13 -0400 (EDT)
From: Ken Stone <kstone@pantheon.yale.edu>
Subject: Any Experience With Citizens Bank?
So I left Fleet Bank because of all the new charges and openned a new
checking account at a local community bank: about 10 branches in the area.
Very friendly,good customer service and a favorable fee schedule.
Now I find out that this local bank has been bought by Citizens Bank and
the change-over to Citizens will be complete. The old bank will basically
cease to exist. Do any persfiners have experience with Citizens? Will they
have any regard for the old bank's business practices or will they just
merge the new customers into their larger structure (and likely higher fee
schedule)?
Thanks,
Ken
------------------------------
Date: Tue, 15 Jul 1997 21:21:50 -0400 (EDT)
From: Gary Lotto <gary.lotto@earth.execnet.com>
Subject: Where to get historic data on Month End NAVs for Mutual Funds?
I'm looking for mutual funds MONTH-END NAV's going back in history for as
long as possible (probably up to 10 years). I'm only interested in no-load
and low-load funds.
Can anyone suggest where I can get this data, either fee or free?
------------------------------
Date: Tue, 15 Jul 1997 21:22:34 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Does a Debt Die With You?
This question came up in a conversation recently. Perhaps some one can
give me the answer. Joe Smith died today. Joe had no assets of his own.
Every asset Joe owned was held in Joint Tenancy with his brother Jim.
The assets Joe and Jim owned were worth $100,000. Since Joint Tenancy
property does not go through probate and all of Joe's assets were Joint
Tenancy property, there will be not probate.
The question is " are Joe's creditors out of luck". None of the creditors
had a secured debt. Since there will be no probate, Joe's creditors will
not get notified to file a claim.
Does Jim who now owns all of the assets have any obligation to Joe's
creditors? Can the creditors file a lien on Jim's assets (which before
Joe's death were Joe's and Jim's assets) ?
BOB FORD
------------------------------
Date: Tue, 15 Jul 1997 21:25:22 -0400 (EDT)
From: GeorgeS <pip@shore.net>
Subject: Re: Long distance PhD - Not A Great Idea
>Analysis ... should prompt forward-looking academic leaders to .. use of
web to
>foster advanced studies and development ...
Oh, I'm not so sure this is a good idea. The most beneficial part to a PhD
is the relation between professor and student. When I got mine, the prof and
I had a disagreement over acoustics, the nature of whistles to be
particular. The dispartity in theoretical breadth made it impossible to
continue the discussion with pencil and paper (he could always win).
Instead, I learned how to construct an experiment like a logiclal argument,
with the results pointing to an inexorable conclusion. It was a joy to
watch him work out the consequences and implications of the experiments and
draw the same conclusions I reached. I learned this technique by emulating
his earlier work.
In a similar manner, when I was a prof, the most rewarding task was the lab
work with students in the wind tunnel. They would come to me raw and
unknown. My task was to elicit their talents and create conditions in which
they could flourish. Some had a bent for programming, others for apparatus
construction, and still others for experimental design. It is impossible to
know this in the beginning, the trick is to put opportunity in their path so
they could discover the true nature of their talent, much as my prof did for me.
The individual nature of the experience, the dialogue between prof and
student, is as old as Athens. Perhaps this dialogue can be transfered to the
web, but I doubt it. A similar transfer did not occur with the printed page,
or with the advent of film, or even ku band interactive satellite TV.
Despite these new technologies, advanced learning is still acomplished
person to person.
There is a dialogue that occurs when a truly advanced sholar writes a very
thoughtful book, Sontag's _Illness_as_a_metaphor_ comes to mind. In such
books you find a discusion with thinkers living and dead that makes physical
presence in the same millenia unnecessary. However, I think this level of
discussion only occurs among masters of the disciplines. I know, for a fact,
it did not occur among the raw material of my students:). I believe to this
day, the intimate dialogue between prof and student is essential to their
discovering their true nature.
Alas... but this is a long way from how to turn a buck and keep it. My
apologies Ira:)
(Editor's Comment - This magazine's purpose is to help people to live
well. As Socrates said (if Plato's notes are accurate), "The unexamined
life is not worth living." -IK)
------------------------------
Date: Tue, 15 Jul 1997 21:28:52 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Money for College?
A good friend of mine, a high school student John Doe (not his real name)
wants to go to college when he graduates from high school. His parents
income is in the $30 thousands so he will not qualify for financial aid.
There are 2 colleges in the town where John lives. There is State College
A and Private College B. The nearest college to John's home town is about
100 miles away. The fees and expenses at State College A are about $1500
per year. The fees and expenses of Private College B are about $11,500
per year. Because of John's parents limited income, John must go to
college in his home town and live at home.
John applied to State College A and at the urging of his high school also
applied to Private College B just in case they have some unclaimed
scholarship money. John was not accepted to State College A because of
his low SAT scores. John was accepted at Private College B but he must
pay the full cost of $11,500 per year.
There was no unclaimed scholarship money available for John.
State College A is a relatively new college and is not at capacity. It has
plenty of room for students. They have a rule however that they only
accept students with a SAT score of XXX or higher and John's SAT was
lower. John has a part time job and he saves his income from that job for
college expenses.
He understands that he will probably never be able to save enough money
from that job to pay the expenses of going to Private College B. In a
recent conversation with John, he asked some very tough questions about
his situation. I would appreciate any comments anyone might have abut
John's questions.
1. Is State College A discriminating against John on the basis of mental
ability? If it is discriminating, is it legal to do so?
2. Is State College A saying in effect "John, you are not smart enough to
come to our college and learn to be smart"?
3. Since both John and his parents pay state taxes that support the
college, and the college has plenty of room for John, is it morally and
ethically right to deny John admission no matter what his SAT scores are?
4. Is it morally and ethically right to deny John admission to college
because of his low SAT test scores when the same college gives full
scholarships to people with even lower SAT scores than John.
BOB FORD
------------------------------
Date: Tue, 15 Jul 1997 21:29:42 -0400 (EDT)
From: Susan Mangiero <mangiero@shu.sacredheart.edu>
Subject: Re: How Can One Make Small, Regular Investments?
Thank you very much for the suggestions.
> > My neighbor who is a city policeman inquired about whether it is possible
> > to make regular small contributions to any stock or bond mutual funds. I
> > don't know the answer and thought perhaps someone on this list serv
> > might know. Also, I'm not sure what my neighbor meant by "small" but let's
> > say about $50 per week. Thanks in advance.
>
>
> Alger, Janus and I believe Invesco all permit small accounts if you
> have automatic deductions from a checking account.
>
> Ken
>
------------------------------
Date: Tue, 15 Jul 1997 21:30:47 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Re: Tax Lien Certificates as Investments
LEO
Jim Napier has published an excellent book on the subject. His address is:
JIM NAPIER
BOX 858
CHIPLEY, FLORIDA 32428
850-638-0005
Tax lien certificates can be a good investment. I have purchased some in
the past.
You must be very careful when you buy them so you do not take a loss.
Here some things you must consider.
1. How do you get title to the property if the taxes are not paid. In some
states it requires a court appearance which means lawyers fees.
2. Can you get title insurance? Without title insurance, you probably can
not sell the property.
3. If the property is occupied, how do you evict the tenants? Get good
legal advice. If you try evict someone incorrectly, you may be liable to
them for damages.
4. Are other liens canceled when you get title. If they are not, you may
owe large amounts of money on the property.
GOOD LUCK
BOB FORD
------------------------------
Date: Tue, 15 Jul 1997 21:31:44 -0400 (EDT)
From: Martin Turnauer <mturnaue@runet.edu>
Subject: Information Needed for Elementary School Economics Projects
My wife is doing an economics project with her school (k-5) students. The
project will have students earning currency. They will spend it in a school
store. They will have banking services provided by the older kids in 4th &
5th grades. Bank records will be kept by these older students on a computer
data base.
She wants to know if there is a Consumer Reports for Kids still being
published? How can you reach the publisher about subscribing?
Are here any other finance/money-managing/banking/investing/economics
publications for children?
Are there any good data bases for 10/11 years to learn and use?
Thanks
Marty
____________________________
Martin S. Turnauer, Ph.D.
Professor, Health & Physical Education
Radford University
Radford, VA 24142
------------------------------
Date: Tue, 15 Jul 1997 21:33:16 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Three Types of Accounts
>What's the difference between the following types of accounts for
>a married couple.
> o Joint account in tenancy
> o Joint account with Right of survivorship
> o Community property
>How does this treatment differ for
> o Simple checking and savings account (1099-INT)
> o Mutual fund accounts (1099-DIV)
> o Brokerage account for stocks (capital gains and dividents)
>Again, for a married, is there any advantage to choosing one over the
>other? Thanks a lot.
>- -raj (raj@shiela.sbay.org)
RAJ
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.
Joint account in tenancy is Joint Tenancy. Everything that is held in
Joint Tenancy IS NOT subject to probate and can not be put in a will.
When one joint tenant dies, the other joint tenants own the property as if
the person that died did not exist.
Joint account with right of survivorship is what joint tenancy is sometimes
called.
Community property is only for married people and is only available in few
states. Assets held in community property get a stepped up tax basis upon
the death of husband or wife. This stepped up tax basis is useful for
assets that increase in value.
BOB FORD
------------------------------
End of persfin-digest V4 #59
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