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Subject: persfin-digest V4 #83
Date: Wed, 17 Sep 1997 18:51:12 -0400 (EDT)
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persfin-digest Wednesday, September 17 1997 Volume 04 : Number 083
IN THIS ISSUE:
ADVERTISEMENT: domainTNG [Oppenheimer Software <Connect-Sales@mcimail.co]
Re: Stockbrokers-Are They REALLY needed? ["Louis J. Schwarz, CFP, RFC" <s]
Re: Stockbrokers REALLY needed? Answer: NO!!! ["Victor Daniel a.k.a The M]
Re: Using a Computer Bill Paying Service ["Jeff Carpenter" <jeffcarp@usa.]
Any Recommendations for TOLL-FREE long distance service? [mahesh@knuth.mt]
Re: Health Insurance in Texas [Richie <nrichard@startext.net>]
Insurance Claims Question [Jim_Shoenfelt@USFG.COM]
Re: House Appraisals [georgene@secular.org (Georgene Harkness)]
Re: House "Appraisals" Are Not Worthwhile [Stephan <stephan@mail.org>]
Tax Counseling for the Elderly---Tax-Aide [kafer@crl.com]
New Tax Law/Question on Precious Metals Capital Gains? [koyn <koyn@fastra]
New Tax Law/Questions on real estate capital gains? [koyn <koyn@fastrans.]
Question-REITS & correlation to Stock Market [koyn <koyn@fastrans.net>]
Question-Gold Funds & correlation to Stock Market [koyn <koyn@fastrans.ne]
Question-How to purchase precious metals [koyn <koyn@fastrans.net>]
Renters Insurance Question [Steven Klein <SKLEIN@snm.org>]
need resource data on asset class returns [Elizabeth Clawson <fpc@net66.c]
Interactive Investment Technology Fund? [eric <eric_marcus@compuserve.com]
E-mail while traveling? [eric <eric_marcus@compuserve.com>]
Wachovia Credit Card at 8.5% ["A. Spiering" <spiering@hevanet.com>]
Interactive Investment Technology Fund [BobWo@aol.com]
Life insurance trust? [curious@sirius.com]
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Date: Wed, 17 Sep 1997 18:27:54 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: domainTNG
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------------------------------
Date: Wed, 17 Sep 1997 18:29:47 -0400 (EDT)
From: "Louis J. Schwarz, CFP, RFC" <sfc@clark.net>
Subject: Re: Stockbrokers-Are They REALLY needed?
(Victor didn't think stockbrokers were necessary.)
Yes, I know about DRIPs, but not all publicly-traded companies offer
them, and many that do require you to buy your first share or two through
a broker. My point is, these days anyone with a computer and internet
access can get stock prices off the web, so why not go to the next logical
step and have people be able to go to NASDAQ or NYSE on the web and buy
stock directly? Why should someone have to have a stockbroker's license to
do so?
(Editor's Comment - If you just want to execute trades and make your own
investment decisions, you don't need a broker. E*Trade seems to be
popular. -IK)
- --
Simple picture:
Buyer -> Broker -> Trader -> Floor (or Computer) <- Trader <- Broker <-
Seller
There must be a brokerage, even it is E*Trade, to handle the
transactions, whether it is a human broker or computer broker (which can
be a brokerage house)! The Trader (which can be the brokerage house,
again) is a necessity to handle the transactions between a buyer and a
seller on the floor (or computer). In any mean, no one can trade any
public share without going through the proper channels. Only exception
is a private transaction on private securities!
In any means, there have to be some proper channels to protect all
investors in public! If any goes wrong without any broker, you are on
your own!
Louis J. Schwarz, CFP, RFC TTY 301-587-5996
Schwarz Financial Concepts FAX 301-587-5997
814 Thayer Avenue, Suite 301 Voice Relay 800-735-2258
Silver Spring, Maryland 20910-4500 Mailto:sfc@deafcfp.com
------------------------------
Date: Wed, 17 Sep 1997 18:30:58 -0400 (EDT)
From: "Victor Daniel a.k.a The MacNut" <macnut@access.netaxs.com>
Subject: Re: Stockbrokers REALLY needed? Answer: NO!!!
I recently sent in the post about whether we really needed stockbrokers
to trade on the stock exchange. Our esteemed editor, Ira, replied with a
reference to E*Trade, the Web-based stock trading firm. Being the
curious sort, I went to their web site <http://www.etrade.com> to take a
look around. After that look-see, all I can say now is;
D'OH! (Sound of hand slapping forehead)
So, it looks like it's perfectly possible for someone to trade stocks
directly without having a stockbroker's license. It was out here on the
internet all along, and I never realized it. I always though E*Trade and
other such firms were simply deep discount brokers. Double d'uh on me.
Once again, the digest manages to educate. Keep up the great work, Ira!
The MacNut
Victor Daniel a.k.a the MacNut vdaniel@thunder.temple.edu
macnut@netaxs.com Home Page: http://www.netaxs.com/~macnut
------------------------------
Date: Wed, 17 Sep 1997 18:31:58 -0400 (EDT)
From: "Jeff Carpenter" <jeffcarp@usa.net>
Subject: Re: Using a Computer Bill Paying Service
>At least as important - and the biggest reason I won't consider electronic
checks - getting screwups fixed. I've heard a couple of horror stories
about incorrect debits, unpaid bills, etc - and getting these things
_fixed_ - I've never heard anyone say "one phone call and it was
straightened out".
One call and it was all straightened out. Seriously. I've used the
services of Checkfree for 3 years now. I've had two problems. Both were
caused by the merchant I was paying. Both were resolved by Checkfree
directly with the merchant. I didn't have to lift a finger to resolve the
issues.
>I used to work in the Customer Service department of a computer bill
payment service. I would not use the service. If there is a problem, it
can take a LONG time to fix.
Maybe that says something about the company you worked for? I can't speak
for any other service but Checkfree, but 90% of the comments I hear from
people are positive about their experience with them. This includes the
people on the internet newsgroups which are notoriously filled with
whiners. Don't blast a technology just because of your experience with one
company. That is like saying "I will never drive a car again, because my
Ford is horrible." Don't buy a Ford.
>The worst are American Express and Sallie Mae for student loans. If you
want >more specific information, e-mail me personally and I will give you
some horror >stories that just might get your eyes to pop out of your
head. George P.
Look, people experience SOME problems with EVERY store, every service and
every technology their is. Lexus automobiles consistantly rank high is
quality and customer service surveys year after year. You think there are
people out there that have had a negative experience with Lexus? Of
course. Does it mean anything significant? No.
------------------------------
Date: Wed, 17 Sep 1997 18:32:21 -0400 (EDT)
From: mahesh@knuth.mtsu.edu (Mahesh)
Subject: Any Recommendations for TOLL-FREE long distance service?
Hi
I am looking for getting a toll-free(800/888) service for my business.
Any good company who has reasonable rates? I have read about matrixtel
but looking for info on any providers.
thanks
mahesh
mahesh@knuth.mtsu.edu
------------------------------
Date: Wed, 17 Sep 1997 18:33:36 -0400 (EDT)
From: Richie <nrichard@startext.net>
Subject: Re: Health Insurance in Texas
Many Chambers of Commerce have a group health insurance plan (almost
always an HMO) with no medical ratings. I work for a small Chamber in
North Texas. A Chamber membership with 3 or fewer employees costs $200
a year. The health insurance plan is called PCA. It is $136 per month
per person. Seems like a family plan is about $350 a month. There are
no medical questions and no exclusions for pre-existing conditions.
Some bigger Chambers in this area (Dallas-FW) have several group plans
available.
Call your local Chamber of Commerce and ask them to send you info
on membership AND insurance plans.
------------------------------
Date: Wed, 17 Sep 1997 18:34:56 -0400 (EDT)
From: Jim_Shoenfelt@USFG.COM
Subject: Insurance Claims Question
SKLEIN@snm.org asked>
>I am a renter in a townhome. Last week a water pipe burst and flooded
>part of the house. I had some damage to my belongings and my renter
insurance will cover >the cost of replacing these items. The appraiser for
>my insurance company has informed me that they will go after the
>landlords insurance company to recoup the money paid to me.
>If this is the case, and they win (my insurance company that is) willI be
entitled to a >refund of the $250.00 deductable.
>Any opinions.
Your agent would be a good person to ask. But, I think you should get the
money back.
When my car was totalled by an at-fault driver, my insurance kicked in. I
paid the deductible. When my insurer got the money from the at-fault
driver, I got my deductible back. (It certainly makes sense that you
should get your deductible back if you don't end up using your insurance).
Now, if your landlord should be underinsured and your insurance would have
to kick in, it would make sense for the insurer to keep your deductible.
------------------------------
Date: Wed, 17 Sep 1997 18:36:09 -0400 (EDT)
From: georgene@secular.org (Georgene Harkness)
Subject: Re: House Appraisals
>It is in the best interest of the bank in many ways to "spill the beans"
>to the appraiser so that it comes in close to the purchase price. We
I'm signing a contract Saturday to purchase a home. The agreement is
I will pay $142,000 if the appraisal supports it, but in any case no
more than the appraisal. If the appraisal comes in at less than
$142,000 the seller can either sell it to us at the appraised price,
or refuse to sell and reimburse the appraisal fee. I have spoken with
the loan officer and she says that they "usually" tell the appraiser
the "desired" price. I think I have convinced her to let him do a
blind appraisal, and let the chips fall where they may. This will be,
if nothing else, an interesting exercise.
We will be paying 25% down, so PMI is not a factor here.
I think I have managed, this time, to avoid a major pitfall in
purchasing a home. I am refusing to allow myself to "fall in love"
with a house, keeping in mind that I found this one and I can find
others.
When the appraisal comes in, I'll post the results, if anyone's
interested.
------------------------------
Date: Wed, 17 Sep 1997 18:37:00 -0400 (EDT)
From: Stephan <stephan@mail.org>
Subject: Re: House "Appraisals" Are Not Worthwhile
Here's why I get an independant professional appraisal before I _buy_
property:
In addition to the property value, the appraisal report, which runs to
several pages, includes historical data, demographic data, likely
growth, significant land use, population, quality of life issues and
area employment statistics and local government issues - all things that
a realtor or seller may not know or volunteer.
All the Best,
Stephan
- --
No More Alarm Clock!
at http://www.tpw.com/mi/siscoe
------------------------------
Date: Wed, 17 Sep 1997 18:41:07 -0400 (EDT)
From: kafer@crl.com
Subject: Tax Counseling for the Elderly---Tax-Aide
PersFiners--
There have been questions about the Tax Counseling for the Elderly (TCE)
Tax-Aide program. If you have WWW access, you can find answers to your
questions at the AARP web site, address below.
http://www.aarp.org/taxaide/coujobs.htm
Navigating around the site will give you a thorough introduction to the
program, from the official AARP point of view. With something like 31,000
volunteers nation-wide, a lot of people enjoy helping other people with
their taxes and believe the program is worthwhile. In my own county, our
volunteer tax counselors range in age from about 50 to 83 years young.
Anyone thinking about volunteering should really want to help someone else,
rather than only be motivated to learn to do personal tax returns better.
This is because the training is aimed at reasonably simple tax filings for
moderate-to-low income seniors (60+). Further, doing another person's taxes
requires a somewhat different focus than doing one's own taxes.
Generally, we prepare Forms 1040, 1040a and Schedules 1, 2, 3, and 1040EZ;
a few Schedules A, B, C-EZ, D, EIC, H, R, SE, X; and a few Forms 2119,
2441, 888 and 9452. Comparable state forms are prepared. In our county
there is not a vibrant VITA program for low income younger people, so many
of our taxpayer clients are young. In their cases, we wrestle with a little
more complexity, such as earned income credit, child care and dependency,
and head of household issues. Taxpayers with more complex tax issues are
referred to the yellow pages listing paid preparers, such as licensed
agents, enrolled agents, CPSs or storefront tax services.
FRANK W. KAFER, Retired!! Hooray!!!
B.S. Business-Industrial Journalism
M.A. Economics
M.S. Business Management, and
Transcripts from 15 colleges and universities.
"I don't understand all of the little I know!"
------------------------------
Date: Wed, 17 Sep 1997 18:41:29 -0400 (EDT)
From: koyn <koyn@fastrans.net>
Subject: New Tax Law/Question on Precious Metals Capital Gains?
I am wondering how the new tax law just passed handles capital gains on
precious metals (coins/bullion)? Do these qualify for the lowered 8%-20%
maximum cap gains rate? Would coins be considered collectibles (28%
rate)? What requirements would gold/silver coins need to meet to not be
considered a collectible, if there are conditions on when they are
considered to be a collectible? Is the 28% rate on collectibles limited
by a person's tax bracket? E.g. if a person is in the 15% bracket, would
a 15% rate apply?
Thanks in advance for any assistance or insight. Please email any
response to koyn@fastrans.net as well as posting here.
------------------------------
Date: Wed, 17 Sep 1997 18:41:55 -0400 (EDT)
From: koyn <koyn@fastrans.net>
Subject: New Tax Law/Questions on real estate capital gains?
I understand that the new tax law just passed reduces the capital gains
rate on real estate to the 8-20% range. However, it I heard that that
portion of gain attributable to prior depreciation would be subject to a
25% rate (recapture).
Does this 25% rate apply, if the tax payer is in the 15% bracket? Or
would the recapture portion be at 15%, with the rest at 8% (5 year
holding) or 10% (18 month holding).
How is the capital gain calculated if the tax payer is normally in the 15%
bracket, but the gain places him in the 28% bracket? Perhaps you might
consider this example to answer the question:
Ordinary income: $10,000 short of what is needed to enter 28% bracket if
it were the only income.
Capital Gain on sale of real estate held for 18 months or longer:
$15,000 ($9,000 attributable to depreciation, $6,000 not).
How much would the capital gain tax be for this hypothetical transaction?
Under the old law, how is a captial gain attributable to depreciation
handled? Was it taxed as ordinary income?
Thanks in advance for any assistance or insight. Please email any
response to koyn@fastrans.net as well as posting here.
------------------------------
Date: Wed, 17 Sep 1997 18:42:17 -0400 (EDT)
From: koyn <koyn@fastrans.net>
Subject: Question-REITS & correlation to Stock Market
I am considering a mutual fund that invests in REITS, but I am wondering
if it really provides any protection via diversification if the stock
market should crash. I am wondering if anyone has any historical
information on the correlation of REITS and real estate mutual funds with
the stock market as a whole. Do these behave more like real estate or
more like stocks?
Thanks in advance for any references or information. Please email any
response to koyn@fastrans.net as well as posting here.
------------------------------
Date: Wed, 17 Sep 1997 18:42:38 -0400 (EDT)
From: koyn <koyn@fastrans.net>
Subject: Question-Gold Funds & correlation to Stock Market
I am considering a mutual fund that invests in gold and/or other precious
metals, but I am wondering if it really provides any protection via
diversification if the stock market should crash. I am wondering if
anyone has any historical information on the correlation of precious
metals funds and stocks with the stock market as a whole. Do prices of
these investments move more with precious metals prices or stock prices?
Thanks in advance for any references or information. Please email any
response to koyn@fastrans.net as well as posting here.
------------------------------
Date: Wed, 17 Sep 1997 18:43:00 -0400 (EDT)
From: koyn <koyn@fastrans.net>
Subject: Question-How to purchase precious metals
I have considered purchasing a small amount of precious metals as
diversification and am wondering what the best way to acquire precious
metals. For coins, I would be interested in those that come closest to
the commodity price of the metal, as opposed to introducing the variable
of collectible value.
Thanks in advance for any assistance or insight or recommendation. Please
email any response to koyn@fastrans.net as well as posting here.
------------------------------
Date: Wed, 17 Sep 1997 18:45:13 -0400 (EDT)
From: Steven Klein <SKLEIN@snm.org>
Subject: Renters Insurance Question
I rent a townhome, and am wondering how much renters insurance I
need. In particular the personal liabilty part of insurance. Here is a little
background:
Similar houses to the type I rent currently sell for about $200,000. In a
worse case scenerio (lets say there was a fire and the house was
destroyed and I was at fault) I have $300,000 liability coverage. This
obviously would be enough money to replace the house I occupy.
However do I need additional liability coverage for my neighbors
property (if there property also had damage due to my fire). Or is this my
landlords responsiblity?
Also is there a general rule of thumb in regard to determing how much
liablity coverage one needs while renting a residence?
Thanks
Steve Klein
------------------------------
Date: Wed, 17 Sep 1997 18:46:06 -0400 (EDT)
From: Elizabeth Clawson <fpc@net66.com>
Subject: need resource data on asset class returns
Can anyone direct me to some resources? I am trying to locate a source
or sources of historical annual returns on asset classes from 1926 -
1996. By asset classes I mean large, mid and small company stocks,
government bonds, index funds, bonds, etc. I want the data in a table
format on a year by year basis. I can use books, the Internet or
software. Is there one source that is all inclusive for all asset
classes? Thanks.
Liz Clawson, CPA
fpc@net66.com
------------------------------
Date: Wed, 17 Sep 1997 18:46:52 -0400 (EDT)
From: eric <eric_marcus@compuserve.com>
Subject: Interactive Investment Technology Fund?
It's a good mutual fd. I've made 18.5% so far.
(Editor's Question - Over what time period? -IK)
------------------------------
Date: Wed, 17 Sep 1997 18:47:25 -0400 (EDT)
From: eric <eric_marcus@compuserve.com>
Subject: E-mail while traveling?
I travel a lot, but don't want to take my laptop. Uniden makes somewthing
that receives e-mail. Does a PDA do it also? Any suggestions?
------------------------------
Date: Wed, 17 Sep 1997 18:48:23 -0400 (EDT)
From: "A. Spiering" <spiering@hevanet.com>
Subject: Wachovia Credit Card at 8.5%
Regarding credit cards:
I found Wachovia through "Consumer Reports" magizine about 1 year ago.
They named the company one of the best deals back then. I beleive I
received an introductory rate at 5.9% for 6 months.
I then converted to Prime Plus (or something like that) one of the
choices I had to convert the card into. The card cost me around $85 up
front, for which I receive 8.5 % interest on my balance. I keep a big
balance so this works for me.
There are other options with this company to chose from. If you have
questions call:
Wachovia 1-800-742-8229
8am-10pm M-F EST
9am-6pm Sat. EST
------------------------------
Date: Wed, 17 Sep 1997 18:48:52 -0400 (EDT)
From: BobWo@aol.com
Subject: Interactive Investment Technology Fund
Certainly I've heard of this very hot fund. It is the number one performing
fund over the past 3 years. This months "Smart Money" magazine has a
splendid article on the Interactive Investment Technology Fund?
------------------------------
Date: Wed, 17 Sep 1997 18:49:19 -0400 (EDT)
From: curious@sirius.com
Subject: Life insurance trust?
I've been advised to set up an irrevocable life insurance trust because
my assets are over 600K and I'm single. I'm wondering if I could just
get a policy in my son or brother's name instead. I have only one
child, he's in college and I trust him completely. It seems a lot
simpler. Are there any ramifications I should be aware of?
I. Good
------------------------------
End of persfin-digest V4 #83
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