Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #76
Date: Wed, 20 Aug 1997 22:29:16 -0400 (EDT)
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persfin-digest Wednesday, August 20 1997 Volume 04 : Number 076
IN THIS ISSUE:
ADVERTISEMENT: MCI Infosource [Oppenheimer Software <Connect-Sales@mcima]
Roth IRA Basics for First Time Home Buyer? [Drew Blaha <drew_blaha@gilbar]
Ex-spouse's bad check [Mandragon <don_m@nde4.nde.state.ne.us>]
Re: Vigilance of Credit Card Companies [Rakesh Agrawal <rocky@startribune]
Re: Requesting info re: post-death trust administration ["Mark J. Welch, ]
variable annunities - right for me? [linda_buchanan@icpphil.navy.mil]
Re: Best Affinty Credit Cards? You Got Bad Info on GM [hrj@juno.com (Har]
Best Business Entity - C Corp, S Corp, LLC? [PJD <carpe@bright.net>]
Re: Roth IRA vs regular IRA? [Rich Carreiro <rlcarr@animato.pn.com>]
RE: Best Affinity Credit Cards? [ANDREA WELCH <ACE.AWELCH@MEMO.ACEHARDWA]
Costa Rica Trip Information ["Joseph Brouillette" <Broutek@worldnet.att.n]
Gold or Silver Dealer in LA? [MXK@netmail.morganfinnegan.com]
Re: *Rolling back* into a 401K ["Lester M. Levy, MD" <llevy@hoflink.com>]
Re: Estate Planning with Revocable Living Trust? ["Lester M. Levy, MD" <]
Re: taxing corporations fairly ["Lester M. Levy, MD" <llevy@hoflink.com>]
Need Help with 401(k) Allocations ["Timothy A. Budd" <budd@owl.csusm.edu>]
Re: NASDAQ (OTC) BID, ASK, spread.... [Rich Carreiro <rlcarr@animato.pn.c]
Re: Roth IRA vs regular IRA? [Endy Junan <endy@bigfoot.com>]
Taxable vs. Tax-Free Bond Funds ["Brian O'Rourke" <borourke@strategies-u.]
Re: Roth IRA vs regular IRA? [Rich Carreiro <rlcarr@animato.pn.com>]
National Foundation for Estate Preservation & Asset Protect? [kafer@crl.c]
Re: "National Foundation for Estate Preservation and Asset Protection" (Jay Mitton seminar) - BEWARE!!! ["Mark J. Welch,]
Re: Estate Planning with Revocable Living Trust [BOB FORD <BOB_FORD@comp]
Dead Affinity credit cards [maness@iip.ucsd.edu (Jay Maness)]
Confusion About Stock Broker [woodn@VAX.CS.HSCSYR.EDU (Nancy Wood)]
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Date: Wed, 20 Aug 1997 21:55:53 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI Infosource
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------------------------------
Date: Wed, 20 Aug 1997 21:56:50 -0400 (EDT)
From: Drew Blaha <drew_blaha@gilbarco.com>
Subject: Roth IRA Basics for First Time Home Buyer?
I believe that I understand the basics here; I can withdraw
$10,000 for a house if I am a first time home buyer.
Now, I bought a house some time ago. Then I got married.
Is my wife still going to be considered a first time home buyer?
I owned the house before we got married; she has never bought one.
Thanks,
Drew
------------------------------
Date: Wed, 20 Aug 1997 21:57:50 -0400 (EDT)
From: Mandragon <don_m@nde4.nde.state.ne.us>
Subject: Ex-spouse's bad check
> It is for about $60 with the fee on it. I gave it my all and now I
> think, let them do their worse (if they dare). I pay all my debts and
> this is not a lot of money for the hassle. But there is a principle
> to it, right?
>
> To all of you, Do I have anything to worry about?
Yes, you do. Up front, my advice would be to pay the thing and put it
past you. I know this is not what you want to hear, but in my
experience, your only recourse will be to spend much more money than the
$60 they are demanding.
I had a very similar experience myself. I was living with my (at the
time) fiance. We had a joint checking account. Eventually, we broke up
and closed the account, but then a check for about $3 bounced. It
didn't show up on my credit report for about 5 years, then suddenly
there it was!
I called and explained the situation. They were complete asses. They
were rude and called me names and threatened me. The downbeat is that
to rectify the situation, I would have needed a lawyer. The situation
was further muddled because at the time, my wife and I were trying to
buy a house and this stupid check from my past that had appeared out of
nowhere was screwing things up!
So, even though I was filled with righteous anger and holy wrath, I
gritted my teeth, told myself I had learned a lesson, made a mental note
that the career of debt collection must draw all the jerks in the world,
and paid the (by then) $30 they wanted.
In a situation like this, there is not really anything else you can do
unless you have the luxury of having your credit report screwed up while
you spend hundreds for a lawyer to fix it for you.
- --
Don Mayhew, Computer Analyst
Nebraska Department of Education
don_m@nde4.nde.state.ne.us
------------------------------
Date: Wed, 20 Aug 1997 21:58:28 -0400 (EDT)
From: Rakesh Agrawal <rocky@startribune.com>
Subject: Re: Vigilance of Credit Card Companies
>As you pointed out, though, since they didn't ask for identifying
>information, I could have been a credit card thief, and as long as the
>victim didn't notice the theft, I'd be all set for a nice little
>spree.
It's quite possible that they verified it was you without explicitly asking.
Many call centers these days are using Caller ID. When you call in, if your
phone number is registered on the account, your account automatically pops
up on the operator's screen. I read somewhere that AMEX once greeted people
by their name instead of just saying hello. People were startled so they
stopped doing that.
Of course, this isn't foolproof -- the thief could have been in your house
when they stole the credit card.
- --
Rakesh Agrawal
Web technology director
startribune.com
------------------------------
Date: Wed, 20 Aug 1997 21:59:06 -0400 (EDT)
From: "Mark J. Welch, Esq." <markwelch@ca-probate.com>
Subject: Re: Requesting info re: post-death trust administration
David Chaille wrote:
> An attorney-friend of mine drew up a revokable living trust
> * * * for my dad and me a few years ago. As my dad gets
> older, I am starting to wonder exactly what I do when he
> passes away. * * * I'm in California and would like some
> advice on what I would need to do to settle the estate.
> Any books that you can recommend? I haven't a clue
> as to where I would start. I'd rather start learning now than
> have to figure it out during an emotionally draining time.
There is very little information out there about how to
administer a trust after a death, but there are a number of
people working to change that. I am preparing a "California
Trustee's Manual" for this purpose, and expect that it will
be ready for publication by October. I'll send you email
when the Manual is actually available.
- -- 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, 20 Aug 1997 22:00:21 -0400 (EDT)
From: linda_buchanan@icpphil.navy.mil
Subject: variable annunities - right for me?
Dear digesters:
I am thinking a variable annunity might be what my financial plan
needs at this point. I am 15 years from retirement, fully
participate in a 401k-type plan which is capped at 5% and
annually contribute $2000 to a non-deductible IRA. I do not
have insurance needs.
I know there is a maze of fees and conditions to sort through.
Can anyone recommend an reliable annuity with a decent rate of
return and low fees?
Thanks
(Editor's Comment - I like Vanguard, because of their low fees (relative
to other VAs). -IK)
------------------------------
Date: Wed, 20 Aug 1997 22:02:41 -0400 (EDT)
From: hrj@juno.com (Harold R Justice)
Subject: Re: Best Affinty Credit Cards? You Got Bad Info on GM
(John Phoebus opined that GM had cancelled their affinity credit card
deal. -IK)
John,
You have received some erroneous info on the GM card. GM has not
cancelled their rebate program. What they did was lower the amount you
can earn per year on their Gold Mastercard to be the same as the rebate
on the regular card. For a few years you could earn 5% on each purchase
up to $1000 per year($20000 in purchases). Now the limit on both type
cards is $500 per year up to 7 years.
This card has been great for me. I have received over $3500 in rebates
and have built back up to about $700. But this is only a good deal if you
pay off the balance each month as the interest rate is quite high.
Harold
------------------------------
Date: Wed, 20 Aug 1997 22:11:07 -0400 (EDT)
From: PJD <carpe@bright.net>
Subject: Best Business Entity - C Corp, S Corp, LLC?
I currently am in a partnership with my mother. As my mother prepares
to retire, I've been told that a switch to a C Corp, an S Corp, or a
Limited Liability Company would be wise. Any suggestions on which
business form is best for our situation? Also, what are the tax
consequences of making the switch from our current partnership form to
one of the otherspersfin-digest wrote:
Paul Dolce
carpe@bright.net
------------------------------
Date: Wed, 20 Aug 1997 22:11:39 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Roth IRA vs regular IRA?
>If both IRA has a $2000 limit, wouldn't it be better to contribute
>$2000 post-tax as opposed to $2000 pre-tax? For someone in 28% bracket,
>that's like contributing ~$2777.78 pre-tax. Am I missing something?
Actually, you have it sorta backwards. If you have a net worth of $N
and make a $2000 *post*-tax contribution, your net worth remains $N.
If you make a $2000 *pre*-tax contribution, you will lower your taxes
that year by $777.78 (assuming the 28% bracket) and are thus able to
effectively make a $2000 contribution by only using $1222.22. So a
$2000 pre-tax contribution is like a $1222.22 post-tax contribution
(because you need $2000 post-tax dollars to make a $2000 post-tax
contribution but only $1222.22 post-tax dollars to make a $2000
pre-tax contribution).
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 20 Aug 1997 22:12:23 -0400 (EDT)
From: ANDREA WELCH <ACE.AWELCH@MEMO.ACEHARDWARE.COM>
Subject: RE: Best Affinity Credit Cards?
>>I'm wondering if any persfiners know of credit cards which still
>>offer worthwhile affinity programs.
>>John Phoebus
Chase Bank has the Shell Gold MasterCard available which gives you
rebate dollars redeemable for free Shell gasonline. Associates
National Bank offers both an Amoco Visa and a Unocal 76 Gold
MasterCard which work in much the same manner with those two Oil
Companies.
Then, there's my personal favorite, the Discover Card offered by
Greenwood Trust Company which redeems in cash at each year's
anniversary date.
In 1996 I saved a total of $165 on gasoline purchases and received
a $98 rebate check from Discover.
Incidentally, all of the above mentioned cards are sans annual fee
and have at least a 25 day grace period if you paid you're prior
month's balance in full.
Regards, Andrea
------------------------------
Date: Wed, 20 Aug 1997 22:13:31 -0400 (EDT)
From: "Joseph Brouillette" <Broutek@worldnet.att.net>
Subject: Costa Rica Trip Information
Hello Marcus - I have been to Costa Rica about 20 times over the years,
but haven't been in about 5 years. The country is over runned with tourist,
and it's too much for me - prices have gone up to the sky in some
instances. I have traveled to 50 countries - so I'm not a newcomer to
travel. I'm also a budget traveler.
Costa Rica is renowned for it's swindlers (Americans are the worst ones),
so don't let ANYONE talk you into investing in anything ( I could tell you
some stories about this that I heard from other poor souls). Also lot's of
pick pocketing going on, and grabbing jewelry. Don't wear expensive
anything, or costume that looks real.
I took a group of 21 down there 7 years ago. 3 of them got pick pocketed,
and one got his luggage stolen while it was being unloaded into the
Balmoral Hotel. The situation is supposed to be worst now. Never walk on
the street at night, but if you must, make sure you join, or you're close
to another group of people.
I stayed at a hotel called The Garden Court several times (60 rooms??). It
has rather small rooms, is fairly new, and a beautiful courtyard next to a
swimming pool, where and American (your choice), breakfast is served free
to you each morning. It was about $32 single. You can call long distance
and make reservations. This hotel is about 5 minutes ride to the central
square by taxi, and the taxi cost $1.
Unless they remodeled it, don't stay at the Grand Hotel De Costa Rica by
the old opera house in the square. It looks great on the outside, but
deteriorated inside. But right around to the back, and across Central
Avenue, is the Gran Hotel, a HoJo type hotel with reasonable rates,
probably under $40 for a single.
If you go on a hike to see jungle fauna, more then likely you will see
none. Marcus, I would certainly buy the Lonely Planet Costa Rica Book
before you do anything else.
Other then that Costa Rica is a wonderful beautiful country to visit, and
with great, kind, and gentle people. Buy your hotel by calling long
distance, the rest - arrange when you get there. Have a great trip.
------------------------------
Date: Wed, 20 Aug 1997 22:15:21 -0400 (EDT)
From: MXK@netmail.morganfinnegan.com
Subject: Gold or Silver Dealer in LA?
Hi all,
Can anyone recommend a reputable dealer of Gold and Silver
coins in the Los Angeles area?
Thanks.
Mark Kleszczewski
mxk1@aol.com
------------------------------
Date: Wed, 20 Aug 1997 22:16:49 -0400 (EDT)
From: "Lester M. Levy, MD" <llevy@hoflink.com>
Subject: Re: *Rolling back* into a 401K
In persfin-digest V4 #75, dan_devries@MENTORG.COM (Dan Devries) wrote:
As a long time lurker, I have read here about the benefit of keeping
401k money rolled into IRA's segregated from other IRA money. Over the
years,
I have indeed been careful to do this, and now the time has come for me
to take agvantage of the ability to roll this money back into my
employers 401k plan to allow me to borrow against it.
When I talked to the benefits person at my workplace, she stated that I
had to prove that all money had come from qualified plans. She suggested
1099 forms as a method of proof. There's the rub...
First off, this IRA was funded from 3 separate dispursements over a 10
year period. Further, the IRA has been held with 3 separate trustees over
the years, and the current trustee has never received a dispursements
from a 401k.
In each case, I had the monies transferred directly from the qualified
plan into the trust without ever taking possesion of the funds.
Likewise, the trustee transfers were handled directly.
I do not think I ever received 1099 forms, and if I did I cannot locate
them.
I may be able to find some of them, but the first dispursement was so
long ago that I am sure any documentation is long gone. I suspect that
failing to prove any of the amount effectively "taints" the entire
account. (true?)
The money is held in an IRA account labled "rollover" (its at fidelity)
and at each transaction, the trustees were informed about the rollover
status, and presumabily verified this fact.
Yes, you have to be able to demonstrate that all of your contributions
came from rollovers from qualified retirement plans. To do this, you
must be able to reconstruct convincingly what the contributions were
(not the earnings of the funds which were reinvested) and match each to
a disbursement from your qualified plans. If you have retained the
federal income tax returns for those years, there should be an entry on
the line for pensions and annuities (line 16a in 1996) (near the social
security line) showing the amount received. Since you rolled over those
funds the entry (16b) on the extreme right of that line should show zero
income. There maybe a form 1099-R attached to your copy of the tax
return showing the matching distribution amount. You would also need
copies of the mutual fund statements showing the contributions.. ideally
you would need a complete set to show there were no other contributions.
If you don't have these, possibly the mutual fund companies (even the
old ones) may be able to give you copies.
Despite statements that you can discard records after the statute of
limitations passes, your problem demonstrates that you really should
keep all these records for life, and later, so you can establish basis
for any gifts you may make in later life, and for many other purposes
which never are obvious when you decide to toss out the papers. Good
luck. (Not a tax pro.)
- --
-Lester M. Levy, MD llevy@hoflink.com
------------------------------
Date: Wed, 20 Aug 1997 22:17:33 -0400 (EDT)
From: "Lester M. Levy, MD" <llevy@hoflink.com>
Subject: Re: Estate Planning with Revocable Living Trust?
In persfin-digest V4 #75, David Chaille wrote:
An attorney-friend of mine drew up a revokable living trust (with backup
will, and power of attorney for medical care) for my dad and me a few
years ago. I understand that the trust avoids significant probate costs.
As my dad gets older, I am starting to wonder exactly what I do when he
passes away. The house we own in the trust is valued around $225,000. He
had a small insurance policy ($25,000), a rollover IRA ($30,000), CD's
($20,000) and small pensions which probably will have little or no
value. I assume therefore that the estate is valued well below the
$600,000 exclusion level.
I'm in California and would like some advice on what I would need to do
to settle the estate. Any books that you can recommend? I haven't a clue
as to where I would start. I'd rather start learning now than have to
figure it out during an emotionally draining time.
Be very careful about making the revocable trust the beneficiary of the
IRA, unless you are content to receive all the funds and pay the estate
AND income tax in the year after your father's demise. At some point
soon, your father will have to decide how he wants the IRA funds to be
distributed and over what period (his life alone, or jointly with the
beneficiary). If your father dies before the required beginning date
(RBD)(70-1/2), then the revocable trust become irrevocable at his death,
and the benficiary of the trust becomes the beneficiary of the IRA for
purposes of calculating the distribution period. If he lives after the
RBD, the trust will still be revocable at that time, and the Internal
revenue code and regulations prescribe that a revocable trust cannot be
looked through and for purposes of the distribution period has no life
span. Also do not make his estate the beneficiary of the IRA, only a
real live person. See Internal Revenue code 401(a)(9) and proposed
regulations 1.401(a)(9)-1.
Any asset which can designate a beneficiary such as a pension plan, an
IRA, a US treasury note or bond, a bank account in trust for, or payable
on death to will pass to the beneficiary without going through probate.
Typically property held in joint name with rights of survivorship will
also pass without probate. These need not be included in a living trust
unless there are other reasons. There should always be a will to catch
any assets which are inadvertently overlooked.
(Not a tax pro.)
- --
-Lester M. Levy, MD llevy@hoflink.com
------------------------------
Date: Wed, 20 Aug 1997 22:17:57 -0400 (EDT)
From: "Lester M. Levy, MD" <llevy@hoflink.com>
Subject: Re: taxing corporations fairly
Sometimes corporations can pass all or part of their taxes on to their
consumers in the prices they charge, and sometimes they cannot.. in
which case the taxes come out of corporate income, and the shareholder's
pocket, and the same money is taxed again when he receives some of the
money as dividends.
Think about it.. when there is a tax increase, can you pass your
increase on to your employer, so you don't have to suffer? Often market
competition, especially in the global economy with competition from
companies in other countries not subject to the same taxes, often
prevents prices charged from reflecting taxes paid and other costs as
well.
- --
-Lester M. Levy, MD llevy@hoflink.com
------------------------------
Date: Wed, 20 Aug 1997 22:20:37 -0400 (EDT)
From: "Timothy A. Budd" <budd@owl.csusm.edu>
Subject: Need Help with 401(k) Allocations
I need to turn in my allocations for our firm's 401(k). Since our fund
manager is Met-Life we are severely limited in fund options. However, this
year they are adding some private funds that have recently formed, these
are the Janus Mid Cap fund, the T.Rowe Price Small Cap Growth, the Scudder
Global Equity, Loomis Sayles High Yield, and the variety of Met Life
offered funds (Stock Index, Growth, Agressive Growth, Diversifed,
International, Income, fixed interest). I am fairly young (28), single,
and not too risk adverse. Last year I split my money 60% in agressive
growth and 40% in the stock index. Unfortunately, I think Met Life's
agressive growth was the only fund in the world to lose money.
Unfortunately, the new funds (Janus, T. Rowe, and Scudder) are very new,
the inception date is March 1997, so their isn't an acceptable past
performance. But since that inception date (6 months) the Janus fund grew
over 15%, the T.Rowe over 14% and the Scudder over 11%. SO I am looking
for some guidance with allocating my current portfolio, and perhaps
transfering my past account balance to other funds (away from the
"Agressive Growth."
Ideas?
THanks. Tim
------------------------------
Date: Wed, 20 Aug 1997 22:21:04 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: NASDAQ (OTC) BID, ASK, spread....
>The NYSE (and the AMEX) work on a different system that does not involve
>BID/ASK quotes, or spreads.
>
>But that's a topic for another post. I've rambled enough for today! OK,
>experts, how'd I do? ;)
You did fine until your last bit :-). While the NYSE and AMEX use a
double-auction with specialists as opposed to the Nasdaq market-maker
scheme, there are most certainly bid and ask quotes and spreads on the
exchanges. Call up your broker and ask for a full quote on any
exchange-traded stock and you'll see.
Again, I recommend the current edition of _How to Buy Stocks_ for a good
explanation of how trading works on the exchanges and the Nasdaq.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 20 Aug 1997 22:22:02 -0400 (EDT)
From: Endy Junan <endy@bigfoot.com>
Subject: Re: Roth IRA vs regular IRA?
Rich Carreiro wrote:
>
> >If both IRA has a $2000 limit, wouldn't it be better to contribute
> >$2000 post-tax as opposed to $2000 pre-tax? For someone in 28% bracket,
> >that's like contributing ~$2777.78 pre-tax. Am I missing something?
>
> Actually, you have it sorta backwards. If you have a net worth of $N
> and make a $2000 *post*-tax contribution, your net worth remains $N.
> If you make a $2000 *pre*-tax contribution, you will lower your taxes
> that year by $777.78 (assuming the 28% bracket) and are thus able to
> effectively make a $2000 contribution by only using $1222.22. So a
> $2000 pre-tax contribution is like a $1222.22 post-tax contribution
> (because you need $2000 post-tax dollars to make a $2000 post-tax
> contribution but only $1222.22 post-tax dollars to make a $2000
> pre-tax contribution).
>
Does that mean I can only contribute $1440 ($2000 - 28%) to Roth IRA as
oppose to $2000? If that's true, my calculations shows that there's
virtually no difference whether I contribute $2000 to regular IRA or
$1440 to Roth IRA (assuming 28% bracket in both cases). However, if I
can contribute $2000 to Roth IRA, I'd have to contribute $2777.78 to
regular IRA to get the same result.
If my argument is still confusing, let's assume $2000 grows R% for N
years into $100,000. In Roth IRA, I end up with $100,000. In regular
IRA, I end up with ($100,000 - tax). Clearly, Roth IRA is better.
Endy Junan
endy@bigfoot.com
------------------------------
Date: Wed, 20 Aug 1997 22:22:27 -0400 (EDT)
From: "Brian O'Rourke" <borourke@strategies-u.com>
Subject: Taxable vs. Tax-Free Bond Funds
I am planning on putting some money into a short-term bond fund to increase
my return over a savings account. My wife and I are in the 28% bracket. I
want to know if a taxable or tax-free fund would result in higher returns.
Does anyone know of a web site where one can enter some financial data and
obtain this type of information?
Brian O'Rourke
------------------------------
Date: Wed, 20 Aug 1997 22:22:52 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Roth IRA vs regular IRA?
>Does that mean I can only contribute $1440 ($2000 - 28%) to Roth IRA as
>oppose to $2000?
No. Assuming you meet the eligibility requirements, you can contribute
$2000 to a Roth IRA.
>If my argument is still confusing, let's assume $2000 grows R% for N
>years into $100,000. In Roth IRA, I end up with $100,000. In regular
>IRA, I end up with ($100,000 - tax).
True, but incomplete. You are correct with your Roth IRA example.
But with your regular IRA example you are neglecting to take into
account the tax reduction you get because of the contribution, which
can then be invested. If you make a $2000 deductible contribution,
you effectively are handed $777.78 that you can invest. The
($100,000 - tax) plus the result of investing that $777.78 can be more
than the $100,000 in the Roth IRA with quite reasonable assumptions.
Now, if you are comparing a Roth IRA to a regular IRA in which one is
unable to make deductible contributions, then you are correct -- the
Roth IRA is a clear winner.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 20 Aug 1997 22:23:48 -0400 (EDT)
From: kafer@crl.com
Subject: National Foundation for Estate Preservation & Asset Protect?
Who knows what about this organization, what they do, how well, and how
legal?? A four-page letter inviting me to their local conference,
accompanied by a four-page brochure. According to letter and brochure, they
can advise how to bulletproof, litigation-proof, and tax-proof income and
assets, up to $5 million. Speakers will be Jay W. Mitton, "Father of Asset
Protection;" Brad Tedeschi, a registered investment advisor who heads his
own tax planning organization; and Saen G. Higgins, exec vp of National
Assn for Secured Investments. "Four hours of intensive education," should
cost $79, but advance registration is discounted to $15 (bring two friends
free).
Frank W. Kafer, El Sobrante, CA
B.S. Journalism, M.A. Economics, M.S. Business Management, and
Transcripts from 15 colleges and universities. ;-)
------------------------------
Date: Wed, 20 Aug 1997 22:24:37 -0400 (EDT)
From: "Mark J. Welch, Esq." <markwelch@ca-probate.com>
Subject: Re: "National Foundation for Estate Preservation and Asset Protection" (Jay Mitton seminar) - BEWARE!!!
I've just been advised that Jay Mitton is returning to the San Francisco
Bay Area for a series of seminars on "Asset Protection," and I want to
WARN members of this list to STEER CLEAR of this con man's sales
pitch.
His pitch: lawsuits and taxes jeopardize all your assets, and there is
a MIRACLE CURE to stop all legal liability and all taxes, called the
"family limited partnership," and you can create one of these new
fangled things without a lawyer (those lawyers don't know what they
are talking about, after all, and they don't really want to help you, so
don't ask them and don't believe them if they tell you this is not the
right thing for you).
The $15-$30 seminar goes on for a couple of hours, and then
Mr. Mitton announces that he is making his set of legal forms
available to YOU at a VERY SPECIAL PRICE, but only if you
buy these today. RIGHT NOW. And people are lining up at
the back of the room, and if you don't hurry we'll run out and
you'll have to pay full price. ("Step this way, see the great
egress!")
Okay, I'm going overboard, but only because Jay Mitton's seminar
goes so far overboard that he's just plain all wet. He is NOT a
California attorney, and when I attended his seminar four years
ago, his presentation contained some incredible false statements
and many, many misleading statements. He downplayed the many
drawbacks (and ongoing costs) involved in a limited partnership,
and made it sound as if this tool was the hammer to pound every
legal problem you might ever have. This is a snake-oil sales pitch.
Don't do your estate planning at an overhyped seminar or with
a door-to-door salesman. Do some homework, consult with
friends and colleagues, and design an estate plan that actually
meets your legal needs.
If you want to go to the seminar, that's fine with me: it's actually
a very entertaining show (more so if you know more about the
laws related to asset protection and estate planning, because you'll
roll on the floor laughing at his false statements). And if you are
considering a career in sales or running seminars, it's a great
education. Just don't bring your checkbook or credit card.
- -- Mark J. Welch, Attorney at Law, Pleasanton CA (510-462-8483)
- -- http://www.ca-probate.com and http://www.markwelch.com
- -- This email is NOT legal advice, and is NOT confidential.
------------------------------
Date: Wed, 20 Aug 1997 22:26:00 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Re: Estate Planning with Revocable Living Trust
>An attorney-friend of mine drew up a revokable living trust (with backup
>will, and power of attorney for medical care) for my dad and me a few
>years ago. I understand that the trust avoids significant probate costs.
>As my dad gets older, I am starting to wonder exactly what I do when he
>passes away. The house we own in the trust is valued around $225,000. He
>had a small insurance policy ($25,000), a rollover IRA ($30,000), CD's
>($20,000) and small pensions which probably will have little or no
>value. I assume therefore that the estate is valued well below the
>$600,000 exclusion level.
>I'm in California and would like some advice on what I would need to do
>to settle the estate. Any books that you can recommend? I haven't a clue
>as to where I would start. I'd rather start learning now than have to
>figure it out during an emotionally draining time.
>Thanks.
(THE USUAL WARNING)
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 other
states may be different.
DAVID
There is an excellent book on this subject from Nolo Press called:
"HOW TO PROBATE AN ESTATE, CALIFORNIA EDITION" by JULIA
NISSLEY"
Nolo Press's address is 950 Parker Street, Berkley, Ca 94710
GOOD LUCK
BOB FORD
------------------------------
Date: Wed, 20 Aug 1997 22:26:51 -0400 (EDT)
From: maness@iip.ucsd.edu (Jay Maness)
Subject: Dead Affinity credit cards
(Editor's Comment - Is this happing with the Macintosh or Ford related
credit card rebates? -IK)
<reply>
Ira, the Apple card (5%!) program died about 18 months ago.
the best cards I know about now are the GE Rewards Mastercard and the
Discover Card
GE Rewards, I believe (data not in front of me)
$25 annual fee. I hope, cancellable on request.
.5% return on first $2500,
1% on next $2500,
1.5% on next $2500,
$2% on next $2500
and no return on charges over $10K per year.
Phone 1-800-677-1050
The Discover card, has the no annual fee
.25% return on first $1000
.50% return on next $1000
.75% return on next $1000
1.00% return on any charges above the $3 K.
No limit to the charges you can be reimbursed for.
------------------------------
Date: Wed, 20 Aug 1997 22:27:56 -0400 (EDT)
From: woodn@VAX.CS.HSCSYR.EDU (Nancy Wood)
Subject: Confusion About Stock Broker
I was hoping to get some advice about a stock broker I've been dealing
with. First of all, originally he called me (in response to an inquiry of
mine to a company about a prospectus) and I decided to go w/him (of course
I'm very new at this). The 2 stocks he recommended weren't doing anything,
just dipping a little below what I had paid for them. After approx. 2
months, I got a letter in the mail from a different brokerage company
stating that my account was being transferred to their company. I called
this other company and they informed me that my company had "gone under".
So, I finally decided to go w/a discount brokerage firm, filled out the
transfer forms and mailed them out.
Today I received a call from my original broker and he said he knew nothing
about all this and after some conversation, he persuaded me to sell both
stocks, completely, even though the one stock was finally going up and I
really wasn't anxious to sell it. He also had me, verbally, fill out
another application form w/him over the phone.
After thinking this over, I'm just wondering if he had me sell the stocks
because he believed that this was the right thing to do for me or, could it
have been because he had just received the transfer notice from Schwab and
wanted to protect his interests w/me? And would that account for his
insistence to sell off all my stocks and start from scratch? Right now my
money has been switched into some kind of money market fund w/his company.
I'm not sure at all about this. Actually, even w/his commission rates I
made some money on the transaction but I'm a little angry w/myself that I
let him talk me into selling totally out, especially that one particular
stock. I had heard it was close to being bought out by a much larger
company -- wouldn't that make the price of the stocks go even higher? He
didn't seem to think so.
Does anyone have any idea what really happened here? I'd appreciate any
comments, advice anyone could give me. Thank you.
N. Wood
------------------------------
End of persfin-digest V4 #76
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