Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #86
Date: Thu, 25 Sep 1997 20:40:37 -0400 (EDT)
Articles sorted by: [Date]
[Author]
[Subject]
persfin-digest Thursday, September 25 1997 Volume 04 : Number 086
IN THIS ISSUE:
ADVERTISEMENT: MCI FAX REPLY SERVICE
Is the Roth IRA Too Complicated to Bother With?
Is BJ's Cutting Off Its Prompt Paying MasterCard Customers?
Get Rid of PMI
Internet Oriented Upstart....
RE: Do you have any advice on shrinking or eliminating debt?
Re: Life Insurance Trust
403b limit?
Re: BEYOND EXPECTATIONS
Re: Questionable financial planner practice
RE: Can my teenage daughter open an accessible saving account??
Quicken and Microsoft Money
PMI
Roth question
IRS Withholding
RE: Stockbrokers - Are They Really Needed?
Re: income tax penalty on marriage
re: income tax penalty for married people
What's involved in mediation/arbitration of a real estate transaction?
Re: Low-fee/No-fee IRA accounts
Re: Auto Accident-Pay Myself or Claim?
Best free mutual fund info. on the Web
Re: Question About Professional Expenses
Help with DRIPs
Use Mortgage to Pay Off Student Loans?
Re: Low-fee/No-fee IRA accounts
Loan Locator Web Site
Tracking home improvement costs
====================================================================
Neither Clearview Associates, Inc. nor Persfin-Digest is responsible for
the content of any Persfin-Digest Sponsor Ad. Posting a Sponsor Ad does
not indicate endorsement of the product or service by Clearview
Associates, Inc. or Persfin-Digest. You're on your own.
This issue is sponsored by:
Oppenheimer Software - An Official MCI Messaging Agency. Features:
MCI Fax Broadcasting Service
MCI Fax Reply Service
MCI Connect for cc:Mail
MCI AutoForward
internetMCI
Lan Access to MCI
Telephone: 800-390-9379
FAX: 800-492-6862
E-Mail: Connect-Sales@mcimail.com
Also sponsored by Wholesale Products. Why pay retail?
Specialists in HP320LX palmtops - the hot new HP palmtop that runs
Windows CE. Pocket versions of Internet Explorer, Excel, and Word are
included. Connectivity to PC applications. It's in stock and
orderable. Price: $565 + $19.95 shipping (in USA).
Visit our PAL/NTSC/SECAM electronics site, featuring VCRs, converters,
TVs, appliances, etc., geared to the international marketplace, at:
http://www.wholesaleproducts.com/non-usa.html
Calculators:
HP 48GX: $180.28 + s&h
HP 48G: $ 91.78 + s&h
Sharp Viewcam rebates! $150 rebate on VL-E500U, $100 rebates on VL-E600U
and VL-E650U
Visit our Blank Videotape Kiosk at:
http://www.wholesaleproducts.com/videotapekiosk.html
Visit our newly updated and expanded Web site, at:
http://www.wholesaleproducts.com
Special Orders: wholesal@shore.net
Phone: 1-800-574-7253 (9am - 5:30pm Boston time)
Fax (24 hrs): 617-438-8307
For information on placing a Persfin-Digest Sponsor Advertisement, e-mail
ikrakow@shore.net
====================================================================
Persfin Digest Archive (maintained by Ameristock Mutual Fund):
http://www.ameristock.com and
http://www.ameristock.com/pda/persfin_home.htm
Ira Krakow's Mall: http://www.krakow.com
Personal Finance Web Sites: http://www.tiac.net/users/ikrakow/pagerefs.html
To post a question or an answer, send email to: persfin-digest@shore.net
The messages posted to the Persfin-Digest are opinions and are not
intended to substitute for qualified professional advice. Subscribers
should seek the services of qualifed professionals for such advice. The
publisher, Internet provider, advertisers, and Digest contributors cannot be
held responsible for any loss incurred as a result of the application of any
of the information provided here.
Copyright (c) 1995, 1996 Clearview Associates, Incorporated
REQUESTED SUBSCRIPTION FEE: $20/year. Monies will go directly to defraying
publication costs, compensating for the time and effort of the Publisher,
and enabling the Publisher to create additional useful sources of
information on the Internet. Send cash, check, or money order (U.S.
funds), payable to "Clearview Associates, Incorporated", to:
Clearview Associates, Incorporated
12 Clearview Road
Stoneham, MA 02180-1918
Contribution will be acknowledged by e-mail if you include an e-mail address.
To Subscribe: e-mail majordomo@shore.net, text: subscribe persfin-digest
To Unsubscribe: e-mail majordomo@shore.net, text: unsubscribe persfin-digest
----------------------------------------------------------------------
Date: Thu, 25 Sep 1997 19:37:02 -0400 (EDT)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI FAX REPLY SERVICE
MCI Fax Reply Service
A Flexible, Low Cost, Fax on Demand Service
Distribute Your Information When They Really Want It -
Not When You Think They Want It
New Rules/Regulations, Advertisers Deadlines, Investor
Relations, Media Information, Technical Support, Late
Changes, Newsletters, Profressional Advice, RFPs, Project
Updates, Application Forms, Schedules, Catalog Revisions,
Political Announcements, Product Updates/Recalls, Legal
Class Action Notifications, Special Events, Brochures,
Inventory Availability, Mortgage Rates, Product Datasheets
Supports Multiple Catalogs
Multiple Retries on Busy Numbers
Toll Free 24X365 Customer Support
Detailed Transaction Reporting Provided
Fax Transmitted Within Seconds of Request
Professional Actor Voice Prompts Available
Update Documents Directly From Your Fax Machine
Rates as low as $.31/minute for select customers
Oppenheimer Software Authorized MCI Messaging Agency
Tel:800-390-9379 E-Mail:Connect-Sales@mcimail.com
Fax:800-492-6862
------------------------------
Date: Thu, 25 Sep 1997 19:44:55 -0400 (EDT)
From: The Editor <ikrakow@shore.net>
Subject: Is the Roth IRA Too Complicated to Bother With?
In my last statement from a mutual fund company I do business with was
the most complicated worksheet I'd ever seen - a planner for determining
if the Roth IRA was worth investing in or converting to (from a non-Roth
IRA). You had to enter assumptions such as:
1) Your life expectancy.
2) How many years you expect to keep the money in the IRA.
3) Expected rate of return when keeping money.
4) When you want to start withdrawing the money.
5) Expected rate of return when withdrawing.
6) Current tax bracket.
7) Expected tax bracket when withdrawing.
8) Expected inflation rate.
Perhaps I missed a few - I got so frustrated that I threw the worksheet
out. How can anyone, even financial planners, enter these assumptions
with a straight face? There's so much uncertainty in any of these
assumptions that the total uncertainty factor is too much to warrant
serious consideration, in my opinion - sort of like predicting where in
California the next earthquake will hit.
Am I missing something? Is there a simpler way to figure out if the Roth
IRA is a good deal?
Ira
------------------------------
Date: Thu, 25 Sep 1997 19:47:13 -0400 (EDT)
From: The Editor <ikrakow@shore.net>
Subject: Is BJ's Cutting Off Its Prompt Paying MasterCard Customers?
I heard that customers who use BJ's MasterCard and pay on time will not
be renewed, and that BJ's bank (Beneficial National) is forcing this. Is
this true?
Ira
------------------------------
Date: Thu, 25 Sep 1997 20:18:07 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Get Rid of PMI
>Subject: PMI Mortgage Insurance - How To Avoid?
>How difficult is it to get rid of the PMI Mortgage Insurance payment on
>your house, after reaching 20% equity (that would have been required
>upfront to avoid PMI), after lets say 2 years when you reapraise the
>home.
>Has anyone done it or had a hard time, any experiences good or bad will
>be welcome.
>Thanks in advance.
As a real estate investor for many years, perhaps I can help you get rid of
PMI. I have done it several times.
(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.
It may or may not be possible to get rid of PMI. A lot depends on the
state where you live and who owns your loan now.
If you have an FHA insured loan, you can NEVER get rid of PMI because it
is not really PMI.
First contact the people that collect your payments and ask what has to be
done to get rid of PMI. If they tell you it is possible , ask what is
necessary to do it. If they require an appraisal, find out what
appraisers they will accept. You must pay for the appraisal. Get and
record the names of everyone you talk to.
If they will not let you cancel PMI or cause you problems when you try,
find out who owns your loan and contact them directly. You may have to go
to the county recorder to find out this information.
Some states have laws that PMI must be removed when the loan to value
ratio is less than 80 percent. Find out if your state has such a law.
Here is a creative idea you might try if your property's loan to value is
LESS than 80 percent. Get a second loan on your home from a friendly
lender. Try your credit union. If you do not have a credit union, find
one you can join.
The loan will be of an amount that will lower your first loan to a loan
to value ratio below 80 percent. That is you pay down your first loan
with the proceeds of your second loan.
The interest rate on the second loan will usually be higher than on your
first but the total payments on the first and second will be less because
you no longer have PMI.
The total amount of your loans (first +second) will not change. Also the
interest on your second is deductible on your income tax while PMI is not.
I do not know if the new tax law changed that.
If all of your efforts fail, try this. Pay the PMI and sue in small claims
court each month for the amount. This usually gets PMI canceled no matter
what the regulations call for. It cost a loan owner a lot to go to small
claims court (no attorneys are allowed in most states) each month even if
they win in small claims court (which is unlikely) they loose money. If
they do not show up in court, you win which is usually the case.
One other option you might consider is to LEGALLY harass the loan owner or
organization that services your loan. I will not post how to do that but
if anyone is interested, contact me privately by e-mail. This should be
a last resort if all else fails. The people that own your loan are
investors and their only interest is to make money. If you can do things
that will cost them money, they will become reasonable very fast.
Please send me private e-mail if you need more information.
GOOD LUCK
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Thu, 25 Sep 1997 20:21:29 -0400 (EDT)
From: "Gary M. Oppenheimer" <0002180241@MCIMAIL.COM>
Subject: Internet Oriented Upstart....
We own new company that has a new internet service on the market... got a
bunch of customers using it, including some large corporations.
We're under a very tight budget (typical of start ups), and I'm seeking
guidance as to which might be the best vehicles/media outlets/tools to get
the word out.... our market is MIS managers and E-Mail managers... not
the users themselves.
Any guidance would be appreciated.
Thank you,
Gary
------------------------------
Date: Thu, 25 Sep 1997 20:21:27 -0400 (EDT)
From: ANDREA WELCH <ACE.AWELCH@MEMO.ACEHARDWARE.COM>
Subject: RE: Do you have any advice on shrinking or eliminating debt?
>>If some of you have any suggestions on a plan of action for debt
>>elimination...
>>Jason Wayne <jasonwayne@rocketmail.com>
Firstly, if you haven't done so already, stop using your credit
cards. The more you charge, the deeper the hole you're digging
yourself.
Secondly, a good way to begin to get a handle on personal debt is
to identify exactly where all of your income goes. Do that by
carrying a small notepad and recording all of your expenses on a
daily basis. Record everything from coffee to newspapers to
mortgage payments. Once you've compiled a month's worth of
expense data enter the categories in a spreadsheet and see for
yourself exactly where your money is going. It helps a lot to
view the numbers in a graph. Don't stop at one month, but compile
your expenses for at least 3-4 months so that you get a more
complete picture of expenses and can include those that you pay
less frequently than monthly such as insurance premiums.
You'll probably find that way too much of your income is being
allocated to non-deductible interest payments. A debt
consolidation loan or a very low interest credit card that allows
you to consolidate your balances might be the answer to high
interest payments.
Thirdly, once you've got a handle on where your money is going,
create a budget for yourself. To follow are some "acceptable"
household budget percentages that I've seen used.
Auto - 12.0%
Clothing - 5.0%
Debts - 5.0%
Entertain/Recreation - 5.0%
Food - 12.0%
Health care - 4.0%
Housing - 34.0%
Insurance - 5.0%
Investments - 8.0%
Savings - 5.0%
Miscellaneous - 5.0%
You'll note that only 5% is allocated to debt. If you find that
you must exceed that you've got a couple of choices. Either
increase your income or reduce another category's percentage.
It's all give and take. One word of caution, don't cheat
yourself, it's always a good idea to "pay yourself first". Have
money automatically deducted from your pay and deposited to
savings or mutual fund investments. No matter how small the
amount you can allocate, you'll be getting yourself on the right
track by paying yourself.
Fourthly, become more frugal. Frugality is the best possible
defense against getting into debt trouble in the first place and
will certainly help you both get out of debt as well as keep you
out of debt. Keep the three "Rs" in mind: REUSE, REDUCE,
RECYCLE.
To get some additional information that you might find helpful
check out Ira's Personal Finance Web Sites at
http://www.tiac.net/users/ikrakow/pagerefs.html under the topic
"Credit Cards, Bankruptcy and Debt Management".
Good luck to you Jason.
Regards,
Andrea Welch
------------------------------
Date: Thu, 25 Sep 1997 20:21:51 -0400 (EDT)
From: "Mark J. Welch, Esq." <markwelch@ca-probate.com>
Subject: Re: Life Insurance Trust
curious@sirious.com wrote:
>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?
The question posed is quite valid: if the goal of the insurance
is solely to fund the anticipated estate tax, which will be owed
only by one person (the insured's only child), then the use of a
life insurance trust is a waste of time and resources, unless
there is a worry that the child will fail to act reasonably (for
example, if the child chooses not to maintain the life insurance
policy, or borrows against it so that the balance is not available
to reduce future premiums). As Cal Lester notes, if your son
owns the policy, there is nothing to stop him from assigning an
interest to his (soon-to-be-ex-) wife.
In general, the Life Insurance Trust is a vehicle that is best
suited to holding life insurance to fund an estate tax for larger
families (2 or more children) or where minor beneficiaries are
to be included. It can also be used to try to protect the beneficiary
from imprudent decisions (such as using your annual gift of
$10,000 to buy a car or pay off student loans instead of paying
for the current year's premium on the life insurance, which
then lapses).
If you anticipate that an estate tax will be owed, you should
consult with an experienced estate planning attorney. The
attorney will help advise the best course of action for your
specific situation. If you are uncomfortable with a particular
attorney (for example, if the attorney won't spend time to
explain his recommendations or to discuss your specific
family situation), fire the attorney and hire someone who
better matches your personality and needs.
Cal Lester replied (in part):
> The primary difference, is that the TRUST is usually a
> Corporation, bonded and almost guaranteed to be there
> when you need it.
This is NOT CORRECT. In most cases, the trustee of the
insurance trust is a family member or close friend, and there
is no bond or guarantee. If you wish to have a licensed
trust company serve as trustee of a Life Insurance Trust,
that's fine, and the trust company will have a bond to ensure
against theft or other malfeasance, but I don't view that as
a reason to use a Life Insurance Trust in the first place.
The primary reason to use a Life Insurance Trust is to
accomplish specific goals (often to pay the estate tax
when due without forcing the sale of other assets) that
can NOT be accomplished using less complicated and
less expensive planning techniques.
I don't consider myself a handyman, but I do have a
tool box with a hammer, some screwdrivers, and other
basic tools. I also have a circular saw (inherited from
my Dad). I think the circular saw is "cool." But I don't
start each day with the thought, "gee, can I use my
circular saw today?" Instead, I occasionally encounter
situations where I must fix or build something, and I
look for the tools that will best help me do the task
at hand. So far, none of the tasks in my life have
called for the use of a circular saw.
A Life Insurance Trust is ONE estate planning "tool."
You don't start the planning process by looking at the
tools at hand, but by looking at the problems that must
be solved. Once you identify the legal issues and
obstacles to efficient management and transfer of
your assets, you can start looking at different tools
to deal with those obstacles. No one can tell you whether
a particular tool is appropriate for you unless they have
completely analyzed the problems you face and the
alternatives available to you.
As an attorney, I have done estate planning for about
six years, representing hundreds of clients. I have
discussed the possible use of a Life Insurance Trust
with many dozens of clients who anticipated owing
large amounts of estate tax. To date, I have only used
a Life Insurance Trust ONCE to meet a client's estate
planning needs. (I have also discussed the use of
Charitable Remainder Trusts with dozens of clients,
and I have never created one because there were
always other, less complex, solutions to meet the
clients' needs.)
Keep in mind that the son might NOT be the only heir of the
estate. For example, the son might have children of his own,
and grampa may make bequests to those grandchildren
(either out of love or out of concern about the effects of
multiple estate taxation or the "generation skipping transfer
tax"). If so, the grandchildren may owe a pro-rata share of
the estate taxes (absent contrary language in grampa's
estate plan). Of course, Dad/grampa may also remarry
one day. Or Dad may or may decide to disinherit the son
after he squanders his life savings (including the cash
value from the life insurance policy) to run (unsuccessfully)
for Congress as the candidate of the "wrong" political party.
- -- Mark J. Welch, Esq. (510) 462-8483 http://www.ca-probate.com/
- -- This message is NOT legal advice, and is NOT confidential.
- -- Web Site Banner Ads and Web Counters: http://www.markwelch.com/
- -- Small Office / Home Office Consumer: http://www.sohoconsumer.com/
------------------------------
Date: Thu, 25 Sep 1997 20:22:19 -0400 (EDT)
From: Susan Mangiero <mangiero@shu.sacredheart.edu>
Subject: 403b limit?
I tried to order a book which was once recommended by someone on this
listserv. It was not available. I'd appreciate any information on how the
limit for 403b investing is determined. It's not always $9500 and I'm
not sure why. Also, is it based on only the Supplemental Retirement
Annuity offered by TIAA-CREF only or is the % the employee contributes to
the base retirement program also considered? Thanks.
Susan M. Mangiero
Sacred Heart University
------------------------------
Date: Thu, 25 Sep 1997 20:23:46 -0400 (EDT)
From: "Louis J. Schwarz, CFP, RFC" <sfc@deafcfp.com>
Subject: Re: BEYOND EXPECTATIONS
>From: kristina@net.com (Kristina Miranda)
I got this email the other day and I don't really believe it but I was
wondering if anyone else knows anything about such a group and what
their scam actually is? I'm guessing you pay alot of money and then they
talk down your debts or something? Any ideas?
- ----
That is another MLM (Multi-Level Marketing) scheme! and your job is to
find more people to be placed under you in order to make more money and
to pay off your debts.
- --
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: Thu, 25 Sep 1997 20:24:31 -0400 (EDT)
From: "Louis J. Schwarz, CFP, RFC" <sfc@deafcfp.com>
Subject: Re: Questionable financial planner practice
It is no sense to put a tax-deferred (qualified) annuity inside the IRA
account - a tax-deferred annuity itself can be an IRA!
Only difference is whether the investor be comfortable with an IRA
without insurance (that may contain cash, savings, CDs, mutual funds,
stocks, bonds, etc) or with either fixed annuity, which is directly
covered by the insurance company or a variable annuity, which has one or
more mutual fund-like pooled securities, with the insurance coverage
provided by the insurance company at a nominal extra cost (premium) for
protection and longer annuitized life. All investors need to know is to
compare between apples and oranges.
- --
Louis J. Schwarz, CFP, RFC
------------------------------
Date: Thu, 25 Sep 1997 20:25:07 -0400 (EDT)
From: Clayton Rogers <CROGERS@stewart.com>
Subject: RE: Can my teenage daughter open an accessible saving account??
Dear Al Kondo,
Check out SFNB (Security First Network Bank) at http://www.sfnb.com.
They offer no fee checking and savings for balances over $100. Internet
access. 20 free bill pays. Postage paid mailers for deposits. They
charge no ATM fees.
I have been using them for almost a year and am very happy.
Clayton.
------------------------------
Date: Thu, 25 Sep 1997 20:25:27 -0400 (EDT)
From: "Jim Reed" <jreed1@airmail.net>
Subject: Quicken and Microsoft Money
Hi...I had an interesting thing happen a few days ago. I thought perhaps
some of you who follow the competition between Quicken and Microsoft Money
might find interesting.
I've been using Quicken for several years now....and have always been
curious about how Microsoft Money might work for me. I most often will
always purchase Quicken's newest version as they publish it.
Microsoft recently announced the availability of a 3 month trial edition of
it's Money 98 software. In the write-up, I found that this new version was
supposed to convert all previous versions of Quicken files to Money files.
I decided to give it a shot......logged on to the Microsoft web site, and
went to work.
Well....the download, installation, etc. of Money 98 went fine, but, when
the Quicken file conversion was attempted, it failed (with no explanation
of what the probem was or how it could be corrected). I repeated the
process, made sure I was doing everything correctly.....and I confirmed its
failure for my file.
I left an email with Microsoft (in their bug department) telling them of my
problem (and hoping they would tell me how to correct it). I am thinking
that I am probably the type of customer that they would like to convert to
a Microsoft Money user.
The next day, I logged on to Microsoft again to check the status of
everything.....and, now, their site gives a "site not found" error message.
For the past couple of days, I've tried to log on and the same thing
happens.
Has anyone else tried to log on to the Money section of Microsoft recently?
I'm wondering if Microsoft has decided to remove their site from the web
for the time being.
I'm also wondering if anyone else has experienced the same thing. BTW, I've
recently learned that Quicken 98 will be in the stores in October.
Competition keeps people on their toes. Yes? <smile>
Kindest regards,
Jim, in Texas
jreed1@airmail.net
------------------------------
Date: Thu, 25 Sep 1997 20:25:52 -0400 (EDT)
From: rrk@aps.anl.gov (Robert Kalt)
Subject: PMI
Hello Ira & All,
When I got rid of my PMI I simply wrote a letter to my bank
stating I believed I met their conditions for dropping PMI
which were:
- -no late payments for a certain amount of time that I can't remember
- -I have had the mortgage for at lest 2 years
- -I have 20% equity.
It was completely painless. Hope you have the same luck!----Bob
------------------------------
Date: Thu, 25 Sep 1997 20:26:35 -0400 (EDT)
From: JBednarzyk@aol.com
Subject: Roth question
I had planned on opening a non-deductible IRA this year since I will be
maxing my 401(k). I have regular IRAs, but now am not sure if I should do
this or just wait until next year to open a Roth IRA.
A lot has been written regarding the pros and cons of switching deductible
IRAs to a Roth IRA, but nothing has been written about non-deductible ones:
1. Are there any benefits?
2.Is it automatic?
3. Would taxes need to be paid on any gains?
4. If you had one and switched it, would this mean you would only need to
fill out the IRS form for non-deductible IRAs but once?
5. Or should you just keep the situation as is?
I would rather not get tangled up in too much paperwork, but 2K *is* 2K.
Thanks!
Juli Bednarzyk
------------------------------
Date: Thu, 25 Sep 1997 20:27:35 -0400 (EDT)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: IRS Withholding
Yan writes:
>I don't mean that I want to cheat, just wondering how IRS knows if someone
>is married or not. I think it is so unfair that married people without
>children become most discriminated by IRS.
>It is the IRS withholding rate that
>messes things up. Why will we get punished?
As far as the witholding, you can estimate (as you have
already done, apparently) what you will owe for tax year 1997. Just
adjust your witholding to have it all witheld, and you shouldn't have
any problems.
As for your complaints about the IRS being unfair, well of
course they are unfair! They have way too much power and no
accountability. Many of their rules are illogical, irrational, and
applied in a capricious manner. The politicians don't do much to fix
it despite all of their rhetoric.
The worst story I have heard about the IRS is about a man who
was being harrassed so much by the IRS that he couldn't take it
anymore and killed himself.
As far as what you can do about it, you personally should
follow the rules as much as possible, document EVERYTHING, and make
sure that you don't overpay or underpay your taxes by very much. That
way, you can reduce the chances of attracting the attention of the
IRS. As a society, we should change the system. How do do that is left
as an exercise for the reader.
-David Martin
------------------------------
Date: Thu, 25 Sep 1997 20:28:24 -0400 (EDT)
From: "David C. Baker" <ee03647@goodnet.com>
Subject: RE: Stockbrokers - Are They Really Needed?
>
> >investment education. So, if I had XX shares of XYZ Corp for sale (at
> >market price of course), I could sell them directly to you, following
the
> >above procedures, without involving a broker or any of the exchanges at
> >all? And it would be a perfectly legal transaction? Very cool.
>
I would caution anyone who would buy into such a transaction to be wary.
Know who you are dealing with. If the certificates happen to be forgeries
or stolen, you are on the hook. --Dave.
------------------------------
Date: Thu, 25 Sep 1997 20:29:04 -0400 (EDT)
From: Nancy Slator <neslator@amherst.edu>
Subject: Re: income tax penalty on marriage
> From: yzheng@saturn.vcu.edu (Yan Zheng)
> My second question. After marriage, we both changed our tax withholding
> status from single to married. Now we found that our tax withholding is not
> enough due to the withholding rate for married people is lower than single.
> We are told we will have to pay penalty if the underpayment is over $500.
> Now we have to ASK FOR extra withholdings so that our tax due won't be over
> $500 at the year end. My question is what if we only find out at the tax
> time next year that we owe IRS a lot, I don't think we should pay penalty,
> or should we? We followed the rules.
When we ran into this, I found some small print that said the *first* time
we underwithheld, we didn't have to pay the penalty if we'd had some
change in circumstances that caused the problem. (We had -- I was
collecting unemployment for a while). I would guess that getting married
and changing filing status would get you off the hook for this year. The
second year, though, you can't use the excuse that you didn't know you
were underwithholding, because you do know. You just said so. :-)
- -- Nancy
------------------------------
Date: Thu, 25 Sep 1997 20:30:09 -0400 (EDT)
From: Timothy.E.Zickus/IT/VGI
Subject: re: income tax penalty for married people
>My second question. After marriage, we both changed our tax withholding
>status from single to married. Now we found that our tax withholding is not
>enough due to the withholding rate for married people is lower than single.
>We are told we will have to pay penalty if the underpayment is over $500.
This happened to my wife and I last year when she started earning a
very substantial salary for the first time. I had to sell a bunch of stock at
a really inopportune time to cover the tax bill. Ugh...
If you each fill out the W-4 form as it stands, the amount of withholding
will be too small! You need to read the fine print and look at the
two-income worksheet on the back of the form to determine what the proper
number of exemptions and/or extra withholding you need.
It's bad enough that the withholding of personal income tax from your
salary is indentured servitude, it gets worse when the IRS's own forms
send you off to penalty-ville!
- - Tim
------------------------------
Date: Thu, 25 Sep 1997 20:30:45 -0400 (EDT)
From: Jim Beavens <jbeavens@ichips.intel.com>
Subject: What's involved in mediation/arbitration of a real estate transaction?
I'm in a situation where I have backed out of a contract to buy a new
home, and am trying to get my earnest money back.
Without going into any of the details (which I can provide via private
email upon request since the majority of this list probably doesn't care),
a case can be made for both sides; there are valid reasons why I should
get the earnest money refunded, and there are valid reasons why I shouldn't.
I have signed a release form that relenquishes my rights to the property,
and requests the $1,000 earnest money to be refunded. The listing agent
is going to present this to the seller today (she represents both me and
the seller; I did not use a buyer's agent). If he refuses to release
the $1,000 to me, then the ball will go back into my court. I can either
give up the $1,000, or we can take the case to mediation/arbitration.
In order to better weigh my options, I thought I would query the list as
to what is involved in mediation/arbitration. Would I need to obtain
a lawyer? Would there be any other out-of-pocket expenses required in
such an endeavor? Losing the $1,000 wouldn't be the end of the world,
and in fact I signed the release knowing full well that I may lose it.
So if I need to invest major time or money in this, I won't do it.
If, however, it is just a matter of presenting all the facts to a third
party and awaiting their decision, then I might try it. Does anybody
know what's involved here?
Thanks in advance,
Jim
------------------------------
Date: Thu, 25 Sep 1997 20:32:06 -0400 (EDT)
From: dulnev@jhu.edu (Jason Dulnev)
Subject: Re: Low-fee/No-fee IRA accounts
Check out Fidelity. Their fees are waived for quite small balances
like $2000 or $3000 and the fees themselves are much lower than
everywhere else I looked. Also, they look at your combined balance
from all accounts when deciding whether to waive the fee.
Jason Dulnev
dulnev@jhu.edu
------------------------------
Date: Thu, 25 Sep 1997 20:32:55 -0400 (EDT)
From: dulnev@ANTI-SPAM.jhu.edu (Jason Dulnev)
Subject: Re: Auto Accident-Pay Myself or Claim?
>
>I bumped into the front corner bumper of another car, causing some
>paint to scrape off of the other car (but no damage to my car). I
>estimate the repair to run maybe $200-$400.
>
>Is it wiser to pay this myself so I won't have a record on my
>insurance policy or let insurance pay since it's so small? My
>insurance company says that claiming it will NOT affect my rates
>since the accident was less than $1000 in damages. I have not had
>any claims in 3 years with this insurance company.
I wouldn't trust your insurance company on this issue. It is my
understanding that any accident where you're at fault counts against
you. $400 seems like a VERY low price to pay to have a clean record
with CLUE. CLUE is a National database accessed by all insurance
companies that has information on all insurance claims submitted in
the country. Even if your current insurance company doesn't count that
accident against you (they will still report it to CLUE), your new
insurance company may, if you switch insurance carrier. it may even
prevent you from getting insurance from some carriers.
ANTI-SPAM measures in place. Remove ANTI-SPAM to e-mail.
Jason Dulnev
dulnev@ANTI-SPAM.jhu.edu
------------------------------
Date: Thu, 25 Sep 1997 20:34:04 -0400 (EDT)
From: "Cajun Joe" <Broutek@worldnet.att.net>
Subject: Best free mutual fund info. on the Web
Hello everyone - I was surfing the net and ran into a new site that gives
you loads of information. Just read the email they sent me back and slowly
inspect the sight - you will be amazed.
Our Mutual Fund Profiler provides almost what you're looking for.
If you type a ticker symbol in the entry box on the main page,
the page for that fund will have buttons for Short Term performance
(1, 2, 3, and 4 weeks) and Long Term performance (1 month, 3 months,
year to date, and 1, 3, 5, and 10 years). Hopefully this is what
you're looking for. If not, let me know.
Thanks for using InvestorGuide,
Tom
http://www.investorguide.com
------------------------------
Date: Thu, 25 Sep 1997 20:34:46 -0400 (EDT)
From: TaxPlanner@aol.com
Subject: Re: Question About Professional Expenses
In his posting dated September 6, Ken Stone indicates he's a salaried
professional, who is reimbursed for business expenses incurred on behalf of
his employer. He wonders if this arrangement (the reimbursed expenses are
deducted pre-tax) is "kosher."
Ken, for this arrangement to be accepted by the IRS, your employer's expense
allowance arrangement must be a so-called "accountable plan." I.e., it must
meet all of the three following requirements: (1) your expenses must have a
business connection; (2) you must "adequately" account to your employer for
these expenses within a reasonable period of time, and (3) you must return
any "excess reimbursements" to your employer within a reasonable period of
time.
These rules can be complicated, so you and your employer should have a clear
understanding about the method of reimbursement being used. As long as you
and your employer follow the "accountable plan" rules, the reimbursements you
receive are not reportable as income on your W-2 and you are not required to
show the expenses on your tax return.
[See IRS Publication 463. This publication can be downloaded (in .pdf
format) via the IRS website. Or call the IRS at 1-800-829-Form and request
that a copy be mailed to you.]
Edie Silvestri
------------------------------
Date: Thu, 25 Sep 1997 20:35:13 -0400 (EDT)
From: james cook <i000404@disch3.disc.dla.mil>
Subject: Help with DRIPs
Presently I'm in 2 DRIPs (Exxon & P&G) and I'm thinking about
getting into more. I'm trying to find a list of companies that
offer Drips. I checked out NAIC and they list only about 100
and I have to believe that more companies than that offer DRIPs.
Could someone steer me in the right direction on how to find more
companies. Some companies require that you purchase at least one
share thru a broker before you can join. Can anyone recommend a
broker willing to do this who won't charge a arm & a leg? Or should
I join NAIC to purchase the initial shares? Any pros or cons on DRIPS?
Thanks,
Jim
jcook@discg1.disc.dla.mil
------------------------------
Date: Thu, 25 Sep 1997 20:36:03 -0400 (EDT)
From: "Timothy A. Budd" <Tbudd@pacbell.net>
Subject: Use Mortgage to Pay Off Student Loans?
Ok, here is a dilema. A friend, let's call him Joe, is a typical recent
law school graduate with staggering school loans and too much consumer
debt. Joe's parents will be receiving a somewhat sizable devise from the
dearly departed. Originally, they planned on paying off their mortgage
with this money (they would still have money left over). What I suggested
to Joe, (let's assume the parents are willing to take the risk), is that
his parents use the money to pay off his loans and consumer debt and then
make the payments on the mortgage (which is at a significantly lower rate
of interest than the loans). Does this make sense?
The parents will still get the benefit of the tax deduction on the
mortgage, and they will no longer have to pay their mortgage. Joe will get
the benefit of paying a much lower interest rate, perhaps give him the
option of refinancing the mortgage to get lower payments for the next
couple of years when his earning power is not what it will be.
Comments?
------------------------------
Date: Thu, 25 Sep 1997 20:36:38 -0400 (EDT)
From: tcruz@calicotech.com (Tito Cruz)
Subject: Re: Low-fee/No-fee IRA accounts
Here is one place to try out:
http://www.fool.com/Media/DiscountBrokerageCenter.htm
After digging around, I was able to find an IRA account with
no Maintenance Fees, no Set-up Fees, no Minimum Size, and they
have $12 online trades (I would guess there may be a fee for
closing/transferring an account away from them?). I have sent
away for their info to check out the small print. ;-)
They are at www.waterhouse.com -- hope this helps!
------------------------------
Date: Thu, 25 Sep 1997 20:37:36 -0400 (EDT)
From: Jonkeough@aol.com
Subject: Loan Locator Web Site
Hi,
I came across an interesting site that Inman did a review on
(http://db.inman.com/inman/inf/inman/d-archiv.cfm?archive__ID=970923c) and
thought that people would be interested in taking advantage of it when
searching for a mortgage or other type of loan. The site is called Loan
Locator (http://www.loanlocator.com), and it is designed to allow consumers
to get real-time loan quotes and to apply for the loan of their choice
online. The best part of all is that the company that runs the site is not
affiliated with any banks, and thus is an impartial party.
The site contains some really useful features too, like an engine that finds
property taxes by zip code (the rates include: the property tax rate,
assessment rate and transfer and recording tax rate for homes in that area.)
In addition, the site currently offers a variety of calculators, an "interest
rate locator", a "loan tutor" who walks you through the loan process, and
more.
Apparently it is also going to be offering, later this month, a "lender
locator", a "mortgage alert" to notify consumers of the loan they've been
looking for, and more.
Anyway, that's the gist of it. I thought it was a really good idea and
haven't seen a site that comes close to it in both functionality and design.
Thanks for your time,
Jonathan
------------------------------
Date: Thu, 25 Sep 1997 20:39:09 -0400 (EDT)
From: "Paul J Stadnik" <paul.j.stadnik@bangate.TEK.COM>
Subject: Tracking home improvement costs
There has been discussion here regarding the wisdom of tracking home
improvement costs, even under the new tax law because:
a) the tax law could change, and gains become taxable
b) you could exceed the $500k cap
c) needed to compute adjusted basis if home has rental or business use
New question: Do I still need to maintain records of home improvements for
previously owned residences whose gain has been rolled over into my
current residence?
Take an example: someone purchased a home (purchase price $400k) prior to
the new tax law taking effect. They rollover gains of $100k from the sale
of previous homes and report this on Form 2119, making the tax basis in
the new home $300k. The rolled over gain would have been $150k if not for
home improvements of $50k over a period of years.
Receipts for these improvements need to be kept to document this basis.
If the home were sold today (under the new tax law), and less than $500k
gain is realized, then no capital gains tax is due, and all improvement
receipts could be discarded.
The basis of any new home purchased would simply be its purchase price.
Until the sale of this home, do the home improvement records for previous
homes need to be maintained? Can the basis of the current home simply be
its purchase price ($400k)?
------------------------------
End of persfin-digest V4 #86
****************************
Articles sorted by: [Date]
[Author]
[Subject]