Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #66
Date: Wed, 30 Jul 1997 08:17:49 -0400 (EDT)
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persfin-digest Wednesday, July 30 1997 Volume 04 : Number 066
IN THIS ISSUE:
ADVERTISEMENT: MCI FAX BROADCAST SERVICE [Oppenheimer Software <Connect-]
RE: W4 Withholding Question [Peter & Karen Diamond <diamond@vsi.net>]
[none] [Randy Barnes <rbarnes@atl.mindspring.com>]
Picking Individual Stocks Is Much Better than Mutual Funds [The Editor <i]
When it can be good to churn? [Rich Carreiro <rlcarr@animato.pn.com>]
Re: Is 35 year old's Retirement Savings Plan On Target? [owowo@NetGuard.]
Re: Best Place to Retire - Site Info [Stephan <stephan@mail.org>]
Re: Vanguard MMF Minimum? [Jim_Shoenfelt@USFG.COM]
Re: Money Market Fund Recommendations? Vanguard! [David Meyers <dmeyers@p]
Re: Mutual Funds vs. Stocks - Remember the Tax Angles [David Meyers <dmey]
Re: Funds On-hand To Get Visa to Visit US? [plaul@sybase.com (Pummy Laul)]
RE: SAT bias - Basis for Class Action Suit? ["Schafer, Rick" <schaferr@en]
SAT FRAUD? [Stephen Brodeur <sbrodeur@draper.com>]
I LIke Pseudo-MMF From Ge Capital [dmak@tma-net.org]
re: W4 Withholding Question [Jacqueline.D.Richardson@Hitchcock.ORG (Jacq]
Fraud Alert: "Offshore Unsecured $5,000 Credit Card" Offers ["Mark J. Wel]
Re: Don't blame the free market [Rich Carreiro <rlcarr@animato.pn.com>]
Re: Non-deductible IRA? [Rich Carreiro <rlcarr@animato.pn.com>]
SAT tests Aren't Fraudulent [Jon King <kingjo@CS.ORST.EDU>]
Re: Gasoline Prices by State [Todd Korb <toddkorb@netzone.com>]
SAT bias - Basis for Class Action Suit? [lspoto@frk.com (Spoto, Leonard)]
Re: Vanguard question (Pers-fin) [Rich Carreiro <rlcarr@animato.pn.com>]
Re: Money Market Fund Recommendations? Vanguard! [Joe Cabrera <toonhead@t]
Re: Stocks vs. Mutual Funds - Try Index Funds [Joe Cabrera <toonhead@tiac]
Retirement Related Web Sites [Vicki Simons <probe@scescape.net>]
Re: Bank Reorg/IPO [Avrum Lapin <avrum113@cyberg8t.com>]
Re: Non Deductible IRA [Avrum Lapin <avrum113@cyberg8t.com>]
Re: College Entry criteria [Avrum Lapin <avrum113@cyberg8t.com>]
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Date: Wed, 30 Jul 1997 07:46:31 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
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------------------------------
Date: Wed, 30 Jul 1997 07:47:34 -0400 (EDT)
From: Peter & Karen Diamond <diamond@vsi.net>
Subject: RE: W4 Withholding Question
Ganesh,
I run into this problem every year because I have a small business in
addition to a full time job. I never know ahead of time how much profit
the business will show, so I don't know how much extra taxes we will have
to pay.
In January I figure it out based on the previous years numbers (and my
best guesses for the coming year). Then, in August or September I
calculate again based on all the numbers available, (new salaries,
business income, interest, dividends, etc...) Then I adjust the
withholding, usually adding a fixed amount each week. Since you can now
calculate how much extra you will need, just divide that by the remaining
number of pay periods and get as close as you like. Any time you have a
lot of untaxed income you will have to do this, there is no way around
it, unless you're interested in making quarterly estimated payments. (who
wants to do that?)
The way the Feds calculate the withholding at married 0, married 1, etc..
is only correct if you have no other income or deductions. You will have
to adjust it since you have substantial amounts of untaxed income.
You should check out IRS Publication 15 "Employer's Tax Guide". It has
tables showing how much you will have withheld at different exemptions
and statuses. You don't have to file "married" just because you are.
You can file single and they will withhold more. Check the tables.
I can e-mail you a copy of the document if you want, it's about 450K.
Peter
(I am not a professional, and I don't know the specifics of your situation.)
------------------------------
Date: Wed, 30 Jul 1997 07:49:16 -0400 (EDT)
From: Randy Barnes <rbarnes@atl.mindspring.com>
Subject: [none]
> From: grover@freenet.edmonton.ab.ca
> Subject: Mutual Funds are Better than Stocks for the Average Person
>
> As an investment professional and someone who has managed to amass a small
> fortune (becoming a large fortune), without much pain, I have to agree
> strongly.
Q: Is this small fortune from the small (15%) gains on your large fees
and commissions, or from very large (~60% annual) gains on your very
small fees and commissions? And, are your clients beating the market
consistently?
>I feel the average person has neither the time, money, skill or
> the resources to research stocks properly to make the correct decisions.
That may be true, but we on this list are not average. It takes very
little time or skill to become a successful stock investor. The key to
success is to ignore the "professionals" who are so totally incompetent
and ridiculously rewarded. My monkey consistently beats the top fund
managers and always will. As for money, once one reaches $2,000-3,000
they're in the game.
> Mutual funds offer huge advantages: easy diversification and professional
> management some of the biggest.
What you see as advantageous, is the reason I'd never own a fund.
Diversification at the levels of most funds means they'll never achieve
outstanding performance. Owning a handful of strong equities is the
only way to go, IMHO.
I probably own shares in 200-300 companies
> in the dozen funds I own. To get that diversification by buyihg stocks
> directly would cost millions, and I can do it with as little as $50 a
> month times the number of funds I wish to dollar-cost average into.
This could be a good way to build up a stake while "paper trading" and
learning about the real market. But care should be used in picking a
fund. Know what you are actually getting into.( You can trade a
simulated $100k at http://portia.advanced.org/3088/ )
> I can hire some of the most brilliant money managers to look after my money,
Brilliant money managers are, for the most part, no where near Wall St.,
or fund companies.
> I counsel everyone to invest in mutual funds,not stocks. This is a
strategy that is making my rich.
Selling mutual funds to average people has made many "money
managers/advisors" rich, not their customers.
> Comments? I may now get some critical e-mail from stock investors. that's
> okay. My strategy works great. I can demonstrate with my portfolio. It's
> safer and easy. that's good enough for me.
Mutual funds will never actually be safer, but they sure are easier. I
totally agree with you that the average Jane or Joe belongs in the
market via funds. The problems arise when they actually pick them. If
you have a 401k type plan you can usually pick from a small selection.
If looking at the entire market one will have no better luck picking a
fund than a stock.
> (Editor's Comment - In return for a bit of extra research, an individual
> investor can get a much higher return from stocks. Many stocks have
> doubled, tripled, and even quadrupled recently. Mutual funds will
> take a much longer time to do that. With DRIP investing, the risk can be
> spread out over 5-10 stocks easily, giving the same type of
> diversification as mutual funds without the management expenses. -IK)
Bingo IK - Only I'd say a much broader universe should be considered
beyond the DRIPs.-RB
Randy Barnes
------------------------------
Date: Wed, 30 Jul 1997 07:51:11 -0400 (EDT)
From: The Editor <ikrakow@shore.net>
Subject: Picking Individual Stocks Is Much Better than Mutual Funds
I mistakenly deleted the Subject: line from Randy Barnes' insightful (in
my humble opinion, since he agrees with me) post.
Ira
------------------------------
Date: Wed, 30 Jul 1997 07:51:47 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: When it can be good to churn?
Assuming no (like a no-load MF) or very low transaction costs, is
there any reason not to sell at a gain and immediately re-buy *if* the
gain will not be taxed? One would get the benefit of racheting up the
basis without paying any taxes.
For example, imagine an UGMA/UTMA account. The first $650 (indexed)
of investment income is tax-free to the minor. At the end of each
year if there is a net gain of less than $650 (reduced by any other
investment income the minor had), why not realize the gain (which
won't be taxed) and then immediately re-establish the position at what
will be a higher basis?
Again, assuming little or no transaction fees, am I missing any
pitfalls? I'd envision only doing this every year or so, so there
should be no running afoul of any anti-switching rules imposed by the
fund family.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 30 Jul 1997 07:52:18 -0400 (EDT)
From: owowo@NetGuard.Net (Richard)
Subject: Re: Is 35 year old's Retirement Savings Plan On Target?
>Steven Klein <SKLEIN@snm.org> wrote in #64
>
>I am 35 years old. I now have $35,000 in my pension plan. I plan on
>retiring between age 60-65. The $35,000 is invested in the following
>classes of mutual funds: 50% growth, 30% cap. appreciation, 20%
>International. I would like to reitre with $500,000 from these funds.
>
>The questions are:
>
>Is it fairly safe to assume the money should double every 7 years on
>average?
>
>Right now I put $8000.00 a year in to these funds, If I drop the total down
>to $4000.00 year do you think I can still hit the $500,000.00 goal?
>
At 7% yearly return on investment you will have (saving $8,000 a year)
$1,130,000 at age 65 and $772,000 at age 60. However, you want to retire
with $500,000 and I assume that is in todays dollar's -- therefore, at 3%
inflation rate, you will need to retire with $1,200,000 at age 65 or
$1,000,000 at age 60 -- that is, the $500,000 today will have the same
purchasing power as $1,200,000 at age 65 or $1,000,000 at age 60.
Keep saving, and save at at the maximum 401(k) rate you can afford. If you
max out your 401(k), then start an IRA (up to $4,000 a year for married
couple). Have fun!
Richard A. Bauer ---- St Louis MO
www.netguard.net/~owowo/index.htm
------------------------------
Date: Wed, 30 Jul 1997 07:52:58 -0400 (EDT)
From: Stephan <stephan@mail.org>
Subject: Re: Best Place to Retire - Site Info
I can't remember where I first heard about this site, so at the risk
of being redundant...
Cost of Living Calculator for different locales at:
http://www.virtualrelocation.com/Relocation/Best_Places/cost.html
Stephan
- --
at http://www.tpw.com/mi/siscoe
------------------------------
Date: Wed, 30 Jul 1997 07:53:33 -0400 (EDT)
From: Jim_Shoenfelt@USFG.COM
Subject: Re: Vanguard MMF Minimum?
Rich -
Do you know if the Vanguard $3,000 is a minimum to start up or does it need
to be maintained each month as well for the MMF?
------------------------------
Date: Wed, 30 Jul 1997 07:54:22 -0400 (EDT)
From: David Meyers <dmeyers@panix.com>
Subject: Re: Money Market Fund Recommendations? Vanguard!
>>I want a money market mutual fund, with checks, a higher rate, and
>>hopefully very low fees.
>
>How about Vanguard? Their total expense ratio on MMFs is around
>0.25%, you can write unlimited, free checks against the account
>(checks must be for at least $250), and the net return is around 5.4%
>(and since that return already includes their fees, you won't have to
>keep moving your account around as fee waivers expire). One catch is
>that there's a $3,000 minimum.
Vanguard, of course, should be the first MMF to check out.
However, it is worth looking into some others as well,
depending upon your needs - ie. lower minimum or maybe
the ability to write smaller checks, or possibly the
desire to have your MMF in the same family of funds as
some other investments (ie. to make automated transfers
a bit easier), etc.
Its also worth taking a look at IBC's Money Fund rankings,
published approx. weekly on the net: http://www.ibcdata.com
Be careful, though when looking rankings like this, as some
funds _temporarily_ waive expenses to boost short term
yield. Usually, when they stop waiving expenses, they fall
off the top of the list.
- --D
------------------------------
Date: Wed, 30 Jul 1997 07:55:41 -0400 (EDT)
From: David Meyers <dmeyers@panix.com>
Subject: Re: Mutual Funds vs. Stocks - Remember the Tax Angles
>From: Greg Panayoti <greg_panayoti@il.us.swissbank.com>
>For those of us who do not have our own business or real-estate,
>tax-free investments are still in order. There funds that are
>considered "Tax Friendly" and do not sell stock often .. therefore
>decreasing taxable distributions. They hold stocks longer and will try
...
>Basically, I believe the only *real* way to get wealthy in investing
>(besides luck), is to invest regularly *and* decrease your taxes on
>those investments. This would mean largly eliminating regular funds
>or individual stocks long term.
Take another look at stocks. If you buy and hold a stock
long-term, at this point, much of your gain is tax-deffered
in the form of accumulating capital gains, will be taxed
at a favorable rate when sold, and these days, most stocks
throw of very low taxable dividends. An extreme example
is Berkshire Hathaway -- has never thrown off a dividend
at all. Simply owning BRKA, you would be paying _no_ current
taxes, while the stock price has appreciated _enormously_.
Even more income-oriented stocks these days are
throwing off relatively low taxable dividends - for example,
the dividend on Phillip Morris, one of they _highest_
yielding of the DOW stocks is only 3.57%. Exxon's dividend
is only around 2.6%. Owning and holding them would not
create much in the way of current taxes either, all the while,
hopefully, their stock price would appreciate, and the taxes
ultimately due on that appreciation are both deferred _and_
taxed at the preferential long-term capital-gains rate. Or
never due at all if the stocks aren't sold but instead are
either donated to charity or become part of one's estate.
In fact, donating appreciated stock to charity gets one even
better tax treatment -- a big old deduction at the same time!
Similarly, low-turnover/tax-efficient funds generally have
little in the way of current, taxable income either. By
owning these sort of things, and _not_ trading them frequently,
it is possible to accumlate wealth all the while deferring tax
liabilities.
- --D
(Editor's Comment - The Clinton tax proposal will cut the capital gains
tax, even more for assets held over 5 years. This should encourage stock
market investing. -IK)
------------------------------
Date: Wed, 30 Jul 1997 07:56:14 -0400 (EDT)
From: plaul@sybase.com (Pummy Laul)
Subject: Re: Funds On-hand To Get Visa to Visit US?
HI Roger,
What you really need is the following..
1) Salary Certificates
2) Bank Statements
3) Brokerage Statements
4) Notarized Affidavit stating the you and your wife will be solely
responsible for all of your niece's expenses while she is in the US.
The first 3 items merely support your affidavit....
Hope that helps
Pummy Laul
------------------------------
Date: Wed, 30 Jul 1997 07:56:46 -0400 (EDT)
From: "Schafer, Rick" <schaferr@eng1.otis.com>
Subject: RE: SAT bias - Basis for Class Action Suit?
Wow... talk about a litigious society! Bob, any SAT prep book available
at your local book store (and probably via Ira's links as well) will
tell you all you need to know about the SAT's, including the fact that
some % of the questions are trial questions, being considered for future
versions of the tests. I think the official test literature says the
same.
Rick Schafer
------------------------------
Date: Wed, 30 Jul 1997 07:58:07 -0400 (EDT)
From: Stephen Brodeur <sbrodeur@draper.com>
Subject: SAT FRAUD?
BOB FORD <BOB_FORD@compuserve.com> wrote"
>
>If 1/3 of the questions on the SAT are not graded, this is a CLEAR CUT
>CASE FOR FRAUD in my mind.
Even if this is true, and regardless of whether anybody is ever told about
it, why would this be fraud?
- -Steve Brodeur (x2496)
------------------------------
Date: Wed, 30 Jul 1997 07:59:28 -0400 (EDT)
From: dmak@tma-net.org
Subject: I LIke Pseudo-MMF From Ge Capital
I've been quite pleased with a pseudo-MMF offered by GE Capital. It
is basically a MM account, but the borrower is GE Capital only (which
I believe is top rated anyway). The account offers your typical MMMF
benefits and pays high rates (around 5.25% for low balances, up to
around 5.9% for over $50,000). They're also giving a $25 bonus for
new accounts. The number for an info package is 800-433-4480.
------------------------------
Date: Wed, 30 Jul 1997 08:00:12 -0400 (EDT)
From: Jacqueline.D.Richardson@Hitchcock.ORG (Jacqueline D. Richardson)
Subject: re: W4 Withholding Question
- ----Ganesh.Swaminathan Wrote:
My wife and I are both working and our combined income tops 100+/year.
Our average Capital Gain is about 5K/year. We have been claiming 0 deductions
both in our W4 form fearing higher taxes.
- ------------
This post brought to mind a method I had heard about years and year ago and I
have used. However, recently on Persfin there was a discussion about the
"marriage penalty" with regard to taxes which has me thinking that the method I
am using is incorrect.
It was my understanding that if you wanted extra money taken out of your check
for taxes you should claim Single-0 even if you were married.
BUT, if you get taxed extra for being married, wouldn't it make sense to claim
MARRIED-O?
Unfortunately, I don't have access to the payroll tables they use when figuring
your check. Does anyone know which method would end up taking more out of your
paycheck? Like many two paycheck families we don't end up with enough taken
out unless we specify an extra dollar amount.
Thanks
jackie
Jacqueline.D.Richardson@Hitchcock.org
------------------------------
Date: Wed, 30 Jul 1997 08:00:54 -0400 (EDT)
From: "Mark J. Welch, Esq." <markwelch@ca-probate.com>
Subject: Fraud Alert: "Offshore Unsecured $5,000 Credit Card" Offers
I just received a phone call from someone who informed me of
an ongoing fraudulent multi-level marketing campaign (the caller
claimed that a net-scourge whom I previously wrote about was
the person behind this scam, though I have no way of verifying
this). I would like to share the information I have gathered in a
quick search of the internet, and to warn people to steer clear of
this scam. This scam is also of interest because it may appear to
some web publishers to be simply another commission-based
advertising program like those I describe on my page at
http://www.markwelch.com/bannerad.htm -- but it is not
anything like those programs.
A company called "Global Marketing Group" promises that
it will arrange for ANYONE to obtain a credit card that will
work with any ATM in the world, with at least a $5,000
credit limit and an interest rate of 5.95 or 6.95 percent,
regardless of credit history, without any credit check and
without reporting the credit card's use or availability to any
North American credit reporting agency. The claim is that
offshore banks are seeking to extend their market share and
that they will accept and extend credit to anyone.
Obviously, this cannot be true -- this is a classic case of a
deal which is unquestionably "too good to be true."
Nobody would extend unsecured credit to strangers without
any credit check.
Not surprisingly, the company seeks advance payment
of a $100 fee (plus a $25 per month additional fee forever
if the application is approved). The terms of the offer
vary: most versions claim that all applicants are
guaranteed to receive a credit card with a $5,000
credit limit, while some versions state that any applicant
denied a card will receive a $500 payment, and some
versions simply promise to refund the $100 application
fee to applicants who are rejected.
Of course, it turns out that the company collecting these
fees does NOT offer credit, is not a bank or lender, and
probably has none of the required licenses or approvals
to make offers regarding credit. According to the
application, Global Marketing Group is a Nevada corporation
using a mail "drop box" in Arizona; it supposedly will "help"
the applicant locate a lender willing to issue a credit card.
The application was clearly NOT prepared by an attorney
or with an attorney's advice, and is very vague about what
is actually actually being offered (unlike the "lead-in" page
which makes broad promises and claims), or what services
that "Global Marketing Group" will actually provide. I suspect
that once a consumer submits an application, he or she may
find an unending pyramid of additional fees before any card
is actually issued.
The same company also offers a "multi-level marketing"
scheme whereby each affiliate is paid a commission for
referrals, ranging from $1.25 to $25 for each applicant
below you on the "matrix" (once you fill out the six-level
matrix, the promise is that you will easily make $4,800+
per month). These commissions are credited to your credit
card, not paid in cash -- and yet the company says that it
will track and report your commissions if you merely embed
your phone number in the application. In other words, you
can pursue your dream of instant wealth even though the
company has not yet actually issued a credit card! (If you
later refuse to pay some unreasonable fee to obtain the
card, I assume all your "commissions" are forfeited.)
A search on Alta Vista (http://www.altavista.digital.com) for
+"global marketing group" +credit +offshore +unsecured
turns up HUNDREDS of links, apparently by individuals who
have been duped into sending in the $100 fee to participate
in this Ponzi scheme, in the hopes of generating more
applicants and thus earning more fees. Strangely, none of
the pages I saw contained any indication that the person
re-posting the page in hopes of earning profits had actually
obtained a credit card with a $5,000 limit; I certainly would
expect to see a testimonial somewhere if this were a legitimate
program.
I urge the FTC (mailto:consumerline@ftc.gov) to take
immediate action to stop this ongoing fraud which utilizes
the internet in an effort to defraud unsuspecting consumers.
- -- Mark J. Welch (510) 462-8483 http://www.ca-probate.com/
- -- Web Site Banner Ads (Networks, Brokers, Exchanges, Software, PSAs):
- -- http://www.markwelch.com/bannerad.htm
- -- Web Counters: http://www.markwelch.com/counter.htm
------------------------------
Date: Wed, 30 Jul 1997 08:01:36 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Don't blame the free market
>>(Editor's Comment - Many state universities admit anyone, but that doesn't
>mean everyone >graduates.
>
>That is the way is should be. There is NO FAIR WAY for a state college to
>admit one person and not admit another person. If you do not graduate
>from college, it is your own fault. At least you got the chance to try.
I have to utterly, totally, and vehemently disagree with you. I can see
no reason whatsoever why a college (even a state-run one) should be required
to take all comers. What gives you this sense of entitlement? Why should
programs be watered down and degrees devalued? And if programs are not watered
down and degrees are not devalued, there will be huge numbers of "students"
flunking out, which is neither good for the students, the school, nor the
taxpayers.
Tell me this -- would you argue that the state civil service should hire
everybody who applies to the state for a job?
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 30 Jul 1997 08:02:01 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Non-deductible IRA?
>I have recently moved to a new job where there is no company pension,
>401(k), etc. I need to make a contribution to an IRA. My wife and I earn
>too much for me to deduct any portion of the contribution from our taxes.
You've just stated that you are not covered by a retirement plan at work.
Is your wife covered by one? If not, the income limits for the deductibility
of IRA contributions *do not apply*. I note that if you changed jobs this
year and your previous job had a retirement plan you participated in for
even one day this year, then the limits do apply. But if you're in this
job all of next year and your wife has no retirement plan where she works,
then your entire IRA contribution will be deductible next year.
On the other side, obviously, if your wife is covered by a retirement plan,
you are both subject to the income test for deductibility.
>In this situation, what are the rules regarding my contribution? Can I
>contribute as much as I want, since I won't be taking an income tax
>deduction? Is the IRA still allowed to grow tax-deferred?
The rules as they always are. You can contribute the *lesser* of
$2,000 or your earned income. This is true whether some, all, or none
of the contribution is deductible. And yes, it is an outright crime
that our alleged leaders in Congress have not increased the amount
since IRAs were created.
This is all in IRS Publication 590, along with more gory details :-)
Finally, regardless of the deductibility of the contribution, all
earnings are tax-deferred. Also make sure to file an 8606 with your
return documenting the non-ded contribution so that you don't get
double-taxed on it when you ultimately start making withdrawals.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 30 Jul 1997 08:07:08 -0400 (EDT)
From: Jon King <kingjo@CS.ORST.EDU>
Subject: SAT tests Aren't Fraudulent
>> On the SAT only @ 2/3 of the questions are actually graded. The other
[...]
> Talk about an investment opportunity. Think of financing a class action
> suit for everyone who has take the SAT test. This could be the largest
> class action suit ever in the U.S.
I'm afraid I don't remember how the SAT worked, but about three years ago
when I took the GRE, it worked a little differently. Every person takes
three "tests" that are graded separately... Verbal, Analytical, and Math.
Every person taking the test had to actually take 7 test books... two of
each, and a third test in one of the categories. It was clearly stated
that the third test booklet was full of "trial" questions.
However, since the booklets are not done in order, and there is no way of
knowing *which* of the three tests was the sample one, there is no way for
a student taking the test to blow off the ungraded one. At the end of the
day, I know I took three analytical test books, but that's all! Makes
sense, from their point of view. It also makes sense from the students'
point of view as well, since the "work" of evaluating the questions is
spread uniformly over everyone taking the test, everyone benefits from
having "good" tests.
Presumably.
There's no deception to the practice, though. Everything's stated on the
instructions or said by the test administrator.
Jon
------------------------------
Date: Wed, 30 Jul 1997 08:07:43 -0400 (EDT)
From: Todd Korb <toddkorb@netzone.com>
Subject: Re: Gasoline Prices by State
To the question of saving money on gasoline purchases driving across the
country, the following thoughts are offered:
1. Buy at reputable major or regional minor branded stations. They
will most likely have fresher inventory, better quality control procedures
and proper additive packages.
2. Buy the lowest octane that you can that avoids engine knocking or
pinging. Extra octane above this level does no good -- just costs more.
3. Keep tires inflated to manufacturer's specifications.
4. Keep your engine tuned properly.
Above all, base your decision to make the trip on factors other than the $20
you may be able to save on gasoline -- other surprises will far overshadow
that amount.
------------------------------
Date: Wed, 30 Jul 1997 08:08:15 -0400 (EDT)
From: lspoto@frk.com (Spoto, Leonard)
Subject: SAT bias - Basis for Class Action Suit?
BOB FORD wrote:
"Talk about an investment opportunity. Think of financing a class action
suit for everyone who has take the SAT test. This could be the largest
class action suit ever in the U.S."
As if our legal system isn't clogged enough.... BOB wants to use it as an
investment vehicle.
BOB, it's people like you who have perverted our legal system......and don't
worry about suing me for slander...I have no money and it wouldn't be worth
your time.
------------------------------
Date: Wed, 30 Jul 1997 08:08:48 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Vanguard question (Pers-fin)
>Do you know if the Vanguard $3,000 is a minimum to start up or does it need
>to be maintained each month as well for the MMF?
$3,000 minimum to open, $1,000 minimum balance (if you go below $1,000
and don't get back to $1,000 within so many [60, I think] days,
they'll cash you out and send you a check). There may be a $10 annual
fee if you're under $2,500 as of a particular date, but I'm not sure
if that applies to their MMFs. Check the prospectus.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 30 Jul 1997 08:09:21 -0400 (EDT)
From: Joe Cabrera <toonhead@tiac.net>
Subject: Re: Money Market Fund Recommendations? Vanguard!
Rich Carreiro <rlcarr@animato.pn.com> suggested:
>How about Vanguard? Their total expense ratio on MMFs is around
>0.25%, you can write unlimited, free checks against the account
>(checks must be for at least $250), and the net return is around 5.4%
>(and since that return already includes their fees, you won't have to
>keep moving your account around as fee waivers expire). One catch is
>that there's a $3,000 minimum.
I recall reading something about Vanguard (because of how their unusual
structure) couldn't chip cash into their money market funds if their share
price ever broke a dollar. Not that this happening is very likely, but
there has been at least one money market fund before that broke a buck and
had to be saved by being brought back up to $1. What exactly are the
details regarding this and Vanguard? And is it unique to Vanguard?
------------------------------
Date: Wed, 30 Jul 1997 08:09:49 -0400 (EDT)
From: Joe Cabrera <toonhead@tiac.net>
Subject: Re: Stocks vs. Mutual Funds - Try Index Funds
>From "David J. Churchill" <churchilld@worldnet.att.net>:
> Right now it is a statistical fact that greater than 50% of mutual
> funds have not matched the return on the S&P 500 index.
What's the time period for this statistic?
------------------------------
Date: Wed, 30 Jul 1997 08:10:24 -0400 (EDT)
From: Vicki Simons <probe@scescape.net>
Subject: Retirement Related Web Sites
Since almost 25% of the citizens of my family's hometown (Aiken, SC)
is over age 65, I respectfully submit a diversified list of links
that may be of special interest to John D. Dennis, retirees, and
soon-to-be retirees:
Money's Your Best Places
http://www.pathfinder.com/@@hj7CcAYAD@9FKTP5/money/best-cities-96/seaindex.htm
Aiken, SC, Retirement; 1997 All-America City Award Winner
http://www.aiken.net/lifestyles/retirement.html
http://www.edpsc.org/update/all-am.htm
http://www.ncl.org/ncl/aac97.htm#aiken
"Great Places to Retire"
http://www.valic.com/251a.html
http://www.valic.com/269a.html
Retirement Benefits Software
http://www.midtown.net/~retiresw/dss.htm
Social Security Administration Retirement Benefits Booklet
http://www.ssa.gov/pubs/10035.html
The Florida Department of Elder Affairs Links
http://fcn.state.fl.us/doea/othrlnks.html
American Association of Retired Persons (AARP)
http://www.aarp.org/
Money's Retire in Comfort
http://www.pathfinder.com/@@GfTdGwYAKO85h26d/money/features/retire/index.htm
Maturity USA Online Magazine
http://www.maturityusa.com/
Interactive Nest Egg: Tools for Building Prosperity
http://nestegg.iddis.com/
Senior Selections Mature Living Choices
http://www.senioronline.com/
American Express Retirement Services
http://americanexpress.com/401k/retirement/
Financial Planning for Retirement
http://www.hec.ohio-state.edu/cts/osue/retplan.htm
Quicken Financial Network Retirement Center
http://www.quicken.com/planning/retire/
Retirement Net - Premier Retirement Living on the Internet
http://www.retirenet.com/
YPN, Your Personal Net (search window: retirement)
http://ypn.com
Financial Facts for Expats
http://kiplinger.com/magazine/archives/1996/February/expats.html
- --
Vicki Simons mailto:probe@scescape.net http://www.scescape.net/probe
Probe Consultants -- Recovering Refunds for Consumers Every Single Day
------------------------------
Date: Wed, 30 Jul 1997 08:11:16 -0400 (EDT)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Bank Reorg/IPO
>Bank Reorg/IPO (edited for brevity)
>
>I recently received a prospectus from the bank where we
>hold the mortgage on our home. Apparently, they have formed
>a new company (Bayonne Bancshares, Inc) .......
>
>..... The prospectus
>claims I get first right in buying shares in the new vehicle as
>well. ,,,,,,. Does this sound
>reasonable to people? What's the business advantage in doing this?
>Are there examples of other banks/holding companies doing this sort
>of thing?
>
>- --
>Scott Barnett
>sab@crisp.net
Peter Lynch authored two articles in Worth on this subject (AOL used to
have Worth on line and searchable, they may still have). His bottom line
was that if the S&L is sound then this is a terrific opportunity for
investors (he has the reasons why) who get in at the IPO. He has data to
show that you can expect over 50% growth in a year in most cases.
My S&L had an IPO in 4/96, I bought at 10, and after it struggled to 12 and
hung there for a month I sold it for 12 in 8/96 but I now note with envy
that it closed at 19 1/8 yesterday. (another megabuck left on the table
which is why I prefer mutual funds to individual stocks).
What you want to watch is selling costs for what may be a small quantity of
shares of a "barely known outside your home town" stock sold on the NASDAQ
exchange. Will there be a market maker.
Good Luck
Avrum Lapin
Upland., CA
------------------------------
Date: Wed, 30 Jul 1997 08:11:36 -0400 (EDT)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Non Deductible IRA
>From: "Brian O'Rourke" <borourke@strategies-u.com>
>
>I have recently moved to a new job where there is no company pension,
>401(k), etc. I need to make a contribution to an IRA. My wife and I earn
>too much for me to deduct any portion of the contribution from our taxes.
>In this situation, what are the rules regarding my contribution? Can I
>contribute as much as I want, since I won't be taking an income tax
>deduction? Is the IRA still allowed to grow tax-deferred?
Rememebr that what ever you put in the IRA is stuck there until age 59 1/2
(or there is a penalty for premature withdrawal). You might want to
investigate a low cost annuity where you can with withdraw the principal
in the future.
I haven't done the math so show what you give up in long term growth if you
choose the annuity - I am just pointing out an option if you have concerns
about liquidity.
Avrum Lapin
Upland., CA
------------------------------
Date: Wed, 30 Jul 1997 08:11:54 -0400 (EDT)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: College Entry criteria
A person who decides to go to college foregoes income, pays fees and buys
books. This usually involves a loan that has to be paid back and/or a
parental sacrifice.
A college that admits everyone who pays and only graduates a few is
perpetuating a fraud (or at least a cruel hoax) that is in the same
category as a proprietary trade school which signs barely qualified
students to long term financing knowing full well that most to not have the
capability to complete the course work but leaves them stuck with a debt
guarenteed by the govenment that is not discahragable in bancruptcy.
A college that admits everyone who applies and gives them a degree is no
better than the public school system which believes in "social promotion"
I see too many people who can barely read or do math who think that sitting
for two years at a community college is somehow going to make them
employable. Outside of "credential oriented" jobs in the public sector
most personnel departments can readily check out the job skills of an
applicant during the interview process.
Avrum Lapin
Upland., CA
------------------------------
End of persfin-digest V4 #66
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