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Subject: persfin-digest V4 #87
Date: Tue, 30 Sep 1997 20:53:33 -0400 (EDT)
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persfin-digest Tuesday, September 30 1997 Volume 04 : Number 087
IN THIS ISSUE:
ADVERTISEMENT: MCI CONNECT FOR CC:MAIL
Congratulations, Mark Welch
Yes, BJs Bank Is Cancelling Credit Cards of Prompt Payers
Re: Roth IRA Complex Worksheet
Re: new tax law: gain on sale of a home
Any Opinion on Hungarian, Polish, or Russian Index Funds?
Subdividing acreage?
Re: Is the Roth IRA Too Complicated to Bother With?
Re: IRS Withholding (How do they know?)
Real Estate Arbitration
Re: Jim's Question on DRIPs
SIMPLE IRA?
What are best "medium-term" investments ?
RE: Internet Oriented Upstart
Re: Ira's Roth IRA Quandary
RE: Low-fee/No-fee IRA accounts
Education IRA?
Socially Responsible 403 Plan?
IRA'S IRA Question/Estate Taxes
Re: Roth question
Have you successfully saved for a house or retirement?
RE:Is the Roth IRA Too Complicated to Bother With?
RE: Help with DRIPs
My BJs Card Was Renewed
Re: Can my teenage daughter open an accessible saving account??
cashing check in British pounds
Opening Account for 4 Year Old
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Date: Tue, 30 Sep 1997 19:42:20 -0400 (EDT)
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------------------------------
Date: Tue, 30 Sep 1997 19:43:29 -0400 (EDT)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Congratulations, Mark Welch
Frequent contributor Mark Welch is the subject of an article in
this weeks Busniess Week for his efforts in trying to stop corporate Spam.
Now if he could just get rid of those guys who clutter my mailbox
with "Earn Big $$ Through Bulk Email" etc.
Avrum Lapin
Upland., CA
(Editor's Comment - I echo Avrum's congratulations. -IK)
------------------------------
Date: Tue, 30 Sep 1997 19:44:34 -0400 (EDT)
From: Dave Adams <dadams@BayNetworks.COM>
Subject: Yes, BJs Bank Is Cancelling Credit Cards of Prompt Payers
It appears to be true:
http://biz.yahoo.com/finance/97/09/26/bj_bnl_y0_2.html
and
http://biz.yahoo.com/finance/97/09/26/bj_bnl_y0_1.html
Dave
------------------------------
Date: Tue, 30 Sep 1997 19:48:03 -0400 (EDT)
From: Kalpesh Sheth <ksheth@BayNetworks.COM>
Subject: Re: Roth IRA Complex Worksheet
Hi,
I also received such complex work-sheet. But I thought no matter
what assumptions you make, it's purpose is not to pin point you to
exact amount which you will have, rather it was trying to show for
a give assumption which IRA (out of Roth, Deductible or non-deductible)
is better for your situation. By changing assumptions you will change
numbers for all three of them, so relatively it gives you an idea
as to what to choose. They also gave another work-sheet to calculate
that, is it worth to convert your existing decuctible/non-deductible
IRA to roth IRA or not?
I find it very good (though complex) as a person like me who doesn't
know much about accounting can make "relatively" informed decision.
Any suggestions?
- -Kalpesh Sheth
(Editor's Opinion - There's a big upfront tax hit in transferring funds
from an existing IRA to a Roth IRA. Even with the spread out over 4 years
(in 1998) if you're still earning income, it's probably not such a great
deal. -IK)
------------------------------
Date: Tue, 30 Sep 1997 20:24:07 -0400 (EDT)
From: balaji@juno.com (Balaji V Ramanathan)
Subject: Re: new tax law: gain on sale of a home
>Date: Mon, 22 Sep 1997 19:53:24 -0400 (EDT)
>From: Rich Carreiro <rlcarr@animato.pn.com>
>Subject: Re: new tax law: gain on sale of a home
>
>Well, it depends. Most cynically, there's no guarantee that Congress
>won't change the law in the future, and tracking all those
>improvements may well matter again some day.
This thought brought up another issue I have been
wanting to discuss on this forum for a little while now. It
is concerning the Roth IRA. What is the guarantee that
withdrawals from the Roth IRA will be tax-free forever?
What if a future congress changes the laws? I guess I
am wondering whether I should just take the bird in hand
(a regular IRA) or go for the two in the bush (the Roth IRA).
Any thoughts on this one?
Also does anyone have any references or anecdotes on
tax laws changing in such a way that people are penalized
for taking advantage of previously existing laws?
bye/balaji/
(Editor's Comment - Try quantifying that risk in a spreadsheet. -IK)
------------------------------
Date: Tue, 30 Sep 1997 20:25:11 -0400 (EDT)
From: Arif <pemcon@paknet3.ptc.pk>
Subject: Any Opinion on Hungarian, Polish, or Russian Index Funds?
Dear Sirs,
Please advise what is your opnion on investing in Index particiapting
certificates for Stock Exchanges of Hungary, Poland, and Russia.
Please advise if Hungary and Poland and Russia are good long term
prospects.
Regards
------------------------------
Date: Tue, 30 Sep 1997 20:25:46 -0400 (EDT)
From: Sam Andrusko <sand@loc.gov>
Subject: Subdividing acreage?
Hello, everyone,
Has anyone ever had any experience with real estate development he
would care to share? Am wondering about purchasing a 15 acre farm and
subdividing it into three 5-acre lots and wonder if anyone else has tried
his hand at this? How much of a hassle was it? Would it be better to sell
the lots or better to actually build on each lot and sell lot+house? How
complicated is the process of subdividing (surveyor? zoning? other?)
Should I let an agent sell the lots or do it FSBO? If it is better to
build a house, how can this be financed?
(Ummm, have extremely negative feelings towards most developers in the
area where I live, so feel sort of strange contemplating doing such a
contemptible, perverse thing--but salve my conscience by intending to
subdivide it into three lots as opposed to the seven or so zoning would
allow)
Thanks in advance,
Sam Andrusko
------------------------------
Date: Tue, 30 Sep 1997 20:31:50 -0400 (EDT)
From: "Louis J. Schwarz, CFP, RFC" <sfc@deafcfp.com>
Subject: Re: Is the Roth IRA Too Complicated to Bother With?
Both the Congress and the unforeseen economy scenarios make it so
difficult to compare the outcomes of the Regular IRA and the Roth IRA in
a simple way. You have to consider many factors to come up with the
realistic projected figures - we have many uncertainties in our future
years! That is the reason that we must project our possible assumptions
to do the complicated worksheet - to assist us obtain the better
possibilities! What's more - we will never know if the income tax rates
may be increased or decreased as well as the indexing factor.
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: Tue, 30 Sep 1997 20:32:49 -0400 (EDT)
From: Stephan <stephan@mail.org>
Subject: Re: IRS Withholding (How do they know?)
Yan writes:
>I don't mean that I want to cheat, just wondering how IRS knows if someone
>is married or not.
In case you're wondering, no, the IRS doesn't _routinely_ do a
cross-check against marriage/divorce records, bank account/loan
applications, employment records, etc.
_Usually_ they only "know" what you tell them (penalties for false
statements apply).
An exception is when you file electronically - this information is
compared to each filing; number of deductions, dependents, SS#s, etc.
are all checked and if there are variations then an explanation with
appropriate forms is required.
IMHO, the less any government, business, institution, or neighbors know
about you the better!
All the Best,
Stephan
------------------------------
Date: Tue, 30 Sep 1997 20:34:18 -0400 (EDT)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Real Estate Arbitration
>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.
>In order to better weigh my options, I thought I would query the list as
>to what is involved in mediation/arbitration.
(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.
>Would I need to obtain a lawyer?
Read your purchase offer very carefully to see what it says about whether
you can be represented by an attorney at the arbitration.
>Would there be any other out-of-pocket expenses required in
>such an endeavor?
Somebody has to pay the arbitrator. Check your purchase contract to see who
pays AND HOW MUCH.
There are no hard and fast rules when it come to arbitration. Every
situation is different. Who chooses the arbitrator? Who pays, etc. What
happens if you win your case and the seller will not give your deposit
back?
I have been a real estate investor for many years. When I purchase
property, I NEVER agree to have disputes settled by arbitration. There is
no way you can assure arbitration will be fair. It there is a dispute, I
want my attorney to present my side of the dispute to a judge who must
follow the law.
GOOD LUCK
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Tue, 30 Sep 1997 20:36:16 -0400 (EDT)
From: Colene <cpa@gis.net>
Subject: Re: Jim's Question on DRIPs
Jim, (I am definitely no expert--only a 2-year member of an NAIC
investment club, still a learner in the toddler stage.) There is a book
out on DRIPs called Buying Stocks Without a Broker, by someone named
Carlson, and here are a bunch of links on DRIPs at
http://www.investorama.com. (Several sites focus on DRIP
information/education).
Douglas Gerlach, whose site this is, also is an active member of NAIC, so
there are also lots of other resources for long-term investors there as
well. As for the "cons" of buying stocks through a DRIP, our club's
experience with this is that it sometimes takes a LONG time (in one case
it took 6 months) to complete the purchase.
Also record-keeping can be complicated, so that you need to
make sure you're keeping good records off the bat as I understand tax
reporting when you sell can be very complicated if you don't understand
all this. I have not read Carlson's book, but would assume he covers
that. A "pro" is that there is no brokerage fee involved, and for
individual investors, it is a good way to dollar-cost-average, once you
get set up (and begin transferring $ on a regular basis to your DRIP
acct). Many companies are offering their stock through DRIPs now. You
have to set up the account through a transfer agent. (9/22 in the
Persfin Digest there was a helpful post from Rich Carreiro which
explained what a Transfer Agent is).
Hope this helps. Good luck,
Colene
------------------------------
Date: Tue, 30 Sep 1997 20:37:40 -0400 (EDT)
From: John Moutz <johnmoutz@absorb.com>
Subject: SIMPLE IRA?
The new SIMPLE IRA option for the self employeed and for small employers
is not so simple in determining an employees limit on contributions.
The basic rule is that an employee may contribute on a pretax basis up
to $6000 to a Simple IRA and the employer may make matching
contributions up to 3% of the employees earnings.
The question I can't find an answer to is what goes against the $6000
limit. For instance I am now self employeed, but previously when
employeed made an after tax contribution to my regular IRA and both
after tax and pretax contributions to my employers 401K.KCan any one
answer how much, if any, of these contributions must be taken into
account against the SIMPLE IRA $6000 limit?
John Moutz
johnmoutz@absorb.com
------------------------------
Date: Tue, 30 Sep 1997 20:38:05 -0400 (EDT)
From: John Wallace <JWallace@karta.com>
Subject: What are best "medium-term" investments ?
Does anybody have an opinion as to the best way to invest a medium-sized
nest egg (say $50,000) when your "time-horizon" is in the range of,
say, 6 months to 2 years, and you are looking for low-to-moderate risk
(i.e. less risk than common stocks) and moderate liquidity (i.e the
ability to convert the assets to cash within a few months if & when it
became necessary). Is there a difference between various Money Market
funds ? Are some Insured and others not ? Are all the insured ones
equally safe ? Thanks in Advance.
------------------------------
Date: Tue, 30 Sep 1997 20:39:17 -0400 (EDT)
From: "Richard A. Bauer" <owowo@netguard.net>
Subject: RE: 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.
I'm not an expert by any means and I do not know the best way to get good
e-mail lists. However, (1) do have your page set up with good indexing
and do send your home page to many of the "indexers"-you can find their
services by searching the net and (2) do advertise other links and
suggest others put your name in their "suggested other sites."
Richard A. Bauer St. Louis, MO
http://www.netguard.net/~owowo/index.htm
------------------------------
Date: Tue, 30 Sep 1997 20:40:19 -0400 (EDT)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Ira's Roth IRA Quandary
Try http://www.strong-funds.com
however I suspect that you still need the same information especially to
determine the "breakeven" point
The following is their response to a hypothetical case where the responder
is aged 60 I guess it is okay to quote directly
[Strong][Investing for Your Retiement @ Strong]
Should I Rollover to a Roth?
If you do not rollover your current IRA to a Roth IRA:
After-Tax Future
IRA Type Value Today Value1
Regular IRA $500,000.00 $425,000.00
If you rollover your current IRA to a Roth IRA
and pay taxes from your existing IRA balance:2
After-Tax Future
IRA Type Value Today3 Value1
Roth IRA $425,000.00 $425,000.00
If you rollover your current IRA to a Roth IRA and pay taxes
from another source outside of your IRA4:
After-Tax Future
IRA Type Value Today Value1
Roth IRA $500,000.00 $500,000.00
The calculations above assume no further contributions to your
existing IRA.
Furthermore, the after-tax comparisons do not take into
consideration any premature distribution penalties that may be
imposed on distributions prior to 59 1/2. Please consult your tax
advisor or legal counsel for further tax information.
1We have calculated your FV of both your Deductible IRA and
Non-Deductible IRA with the variables that you have submitted.
These include your current IRA balance and initial contributions
for your Deductible IRA and Non-Deductible IRA, expected rate of
return, current tax rate, expected tax rate at retirement, and the
number of years until retirement.
2 Conversion of a Regular IRA into a Roth IRA is treated as a
distribution subject to rollover provisions. If you rollover a
Deductible IRA, the entire amount must be included in income when
you convert it. On the other hand, you do not have to include
Non-Deductible IRA contributions as income. You only have to
include accumulated untaxed earnings as part of your income.
3 If the rollover occurs before January 1, 1999, income that must
be recognized on the conversion can be spread over 4 tax years
beginning with the tax year of your rollover. For the simplicity
of this calculation, we have assumed that you will pay the entire
tax in year 1 rather than spread it out over 4 years. Please
consult your tax advisor or legal counsel for further tax
information.
4If you should choose, you may wish to pay taxes due from
converting a Regular IRA to a Roth IRA from a source outside of
your existing IRA. Although this will provide you with a larger
IRA value today, you should consider and evaluate all of your
investment options. You may want to consult your tax advisor or
legal counsel for your particular situation.
Avrum Lapin
Upland., CA
------------------------------
Date: Tue, 30 Sep 1997 20:41:21 -0400 (EDT)
From: Jeff Morgan <Morgajs@parsec.com>
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!
I had an IRA at Waterhouse for a while. Yes, there is a termination
fee of $25. The maintenance fee was waived for $10,000+ accounts,
but this may have been lowered.
The only bad experience I had was that it took a couple of months
to get the rollover from American Century completed, which may
say more about American Century than Waterhouse.
- --
Jeff Morgan - morgajs@parsec.com
------------------------------
Date: Tue, 30 Sep 1997 20:42:24 -0400 (EDT)
From: Rod Bustos <bustos_ra@Mercer.EDU>
Subject: Education IRA?
Does anyone have comments about the new Education IRA that will be
available in 1998? As I understand it, you can set one of these up for
your child's education expenses and you can contribute up to $500 a year
into it tax-free. Admittedly 500 bucks annually is not a whole lot, but
with a newborn I think that money invested well could compound into a
fairly decent sum by the time the child reached college age.
What are the list's thoughts on this new investment vehicle?
Thanks,
Rod
Rod A. Bustos Voice: (770) 986-3281
Public Services Librarian Fax: (770) 986-3270
Mercer University - Atlanta Internet: bustos_ra@mercer.edu
------------------------------
Date: Tue, 30 Sep 1997 20:43:31 -0400 (EDT)
From: Margaret Lewis <mlewis@egusd.k12.ca.us>
Subject: Socially Responsible 403 Plan?
Socially Responsible 403 Plan
Is there any such thing?
Thanks.
Peggy Lewis
mlewis@egusd.k12.ca.us
(Editor's Comment - "Socially responsible", like beauty, is in the eye of
the beholder. -IK)
------------------------------
Date: Tue, 30 Sep 1997 20:45:04 -0400 (EDT)
From: JONESW@CCSUA.CTSTATEU.EDU
Subject: IRA'S IRA Question/Estate Taxes
IRA's IRA QUESTION
The decision rule about the Roth IRA for over 90% of people is simple:
IF (1) your tax rate when you take it out (in retirement) will be 15%,and
(2) your tax rate when you put it in (now) is 28% or higher, THEN take a
deductible IRA or a 401(k) with low fees is better than the Roth IRA. In
almost all other cases, the Roth IRA is better (in particular, for a
nondeductible IRA).
Similarly, convert a deductible IRA to a Roth IRA unless your tax rate in
retirement will be 15% and your tax rate now is 28% or more. Finally, convert a
nondeductible IRA to a Roth IRA even if the tax rate will drop a lot, unless it
has already more than doubled in value (the 50% breakeven point for this last
decision can depend on future rates of earning).
A good tactic, if the above implies that you should have a Roth IRA, is the
following: Create a NONdeductible IRA for the 1997 tax year, even if you are
allowed a deductible IRA. Then early in 1998, convert it to a Roth IRA (paying
virtually no tax at all, since the earnings will be small).
ON THE USE OF A LIFE INSURANCE TRUST
I suggest that a life insurance trust is never necessary if you have just one
heir who is an adult with no mental handicap. You simply arrange a life
insurance policy in the heir's name and give the heir the money to pay the
premiums.
Yes, it is possible for that heir to spend the annual gift you give him/her for
premiums on other things and let the policy lapse. Who will suffer by this?
You? No, you will be dead. The heir? He made a decision and lost by it. That
is what adults do. Don't worry about it. It is not your problem anymore, once
you have made adequate arrangements that the heir screws up. Of course, once
you see he let the policy lapse, you may decide to just leave most of the
inheritance to charity instead of that idiot. That is another perfectly
effective way to avoid estate taxes.
Bill Jones
------------------------------
Date: Tue, 30 Sep 1997 20:46:12 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Roth question
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>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:
I'll say off the top that I can see no reason whatsoever to continue
to contribute to a non-deductible IRA now that the Roth IRAs are
available. I also believe there is almost no reason not to turn a
non-ded IRA into a Roth if you are eligible to do so.
>1. Are there any benefits?
Yes. There are no taxes upon ultimate withdrawal, quite unlike a
traditional IRA.
>2.Is it automatic?
No. You must take a positive action to convert a traditional IRA
to a Roth.
>3. Would taxes need to be paid on any gains?
Yes. In order to convert to a Roth, you must take as income and pay taxes
on the difference between the value of the IRA and the value of the non-ded
contributions.
>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?
Unknown. Have to wait until the IRS issues specific conversion rules.
>5. Or should you just keep the situation as is?
Doubtful. The Roth is a huge win for people unable to make deductible
IRA contributions.
However, note that you must have an AGI of under $100,000 filing
singly, $100,000 (not a typo) filing jointly, or under $0 (also not a
typo) filing married separately to be able to *convert* an existing IRA
to a Roth.
Also, you must have an AGI under (I believe) $80,000 filing singly or
separately, or under $160,000 filing jointly to be able to make annual
contributions to a Roth.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Tue, 30 Sep 1997 20:47:02 -0400 (EDT)
From: MoneySecre@aol.com
Subject: Have you successfully saved for a house or retirement?
I'm a journalist writing an article for a national women's magazine on how to
successfully meet your financial goals. I'm looking for two couples to
interview: one that has successfully saved for and bought a house and another
that is successfully saving for retirement. Both couples should be in their
thirties or early 40s.
I don't need to ask about detailed financial strategies -- just what your
goals were and how you got on the road to accomplishing them. If you're
interested in being interviewed for the piece or know someone who would be,
please contact me directly at MoneySecre@aol.com.
Thanks!
------------------------------
Date: Tue, 30 Sep 1997 20:48:25 -0400 (EDT)
From: Keith Mealy <kmealy@cincom.com>
Subject: RE:Is the Roth IRA Too Complicated to Bother With?
A year or so ago, Persfin had an extended discussion about the
difference between front-end load and back-end load sales charges.
The conclusion was they work out mathematically to the same return on
the same fund. I think this is just another way to look at the Roth IRA --
the "load" is the income tax you must pay. So, the only important
considerations from your list are 6 and 7 -- current and future tax
rates. If you expect that your tax rate is higher now than when you
need the money, keep it in your current IRA. If you think your tax
rate will be higher when you retire, convert to the Roth IRA.
Of course none of us can predict what those rascals in Washington will
do with the tax rates by the time we retire.
There are some other non-numerical considerations, such as the Roth
not having the same withdrawal requirements at 70.5 years. I've also
made some assumptions that you can get the same return on either.
Perhaps I missed something?
------------------------------
Date: Tue, 30 Sep 1997 20:49:23 -0400 (EDT)
From: ANDREA WELCH <ACE.AWELCH@MEMO.ACEHARDWARE.COM>
Subject: RE: Help with DRIPs
>>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?
>>
>>james cook <i000404@disch3.disc.dla.mil>
Hi Jim,
Check out The Motley Fool web site at http://www.fool.com. They
are in the process of creating a DRIP portfolio and have lots of
background information regarding DRIPs available as well as a
special deal with The Moneypaper for low-cost initial share
purchases. I believe the deal is something like: you subscribe
for about $40 to The Moneypaper service and you then can buy
initial shares in DRIP companies for $15-$20 per share for one
year. You also get a newsletter and a book on DRIPs as part of
the deal.
I won't ramble on too much on the specifics because I'll probably
get them mixed up, but do check out what's available at The Fool
site. It's well worth a visit.
Regards,
Andrea Welch
------------------------------
Date: Tue, 30 Sep 1997 20:50:11 -0400 (EDT)
From: Jason Dulnev <dulnev@jhu.edu>
Subject: My BJs Card Was Renewed
I don't believe so because mine was renewed and I've never carried a
balance. They had a delay in processing and sending out new cards so I
got my card at the end of month that it was supposed to expire.
Jason Dulnev
dulnev@jhu.edu
------------------------------
Date: Tue, 30 Sep 1997 20:51:10 -0400 (EDT)
From: dulnev@jhu.edu (Jason Dulnev)
Subject: Re: Can my teenage daughter open an accessible saving account??
>
>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.
Not quite correct. The minimum balance has been $1,000 for quite
awhile now because too many people opened accounts there and never
made them primary bank. Otherwise you are correct: it's the best deal
in the US banking industry. It's been my parent's primary bank for
almost a year now and it's working out great. The yield on their Money
Market is also unmatched by anyone.
Jason Dulnev
dulnev@jhu.edu
------------------------------
Date: Tue, 30 Sep 1997 20:51:35 -0400 (EDT)
From: wheeler library <akennedy@connix.com>
Subject: cashing check in British pounds
Am I making a big deal out of nothing? I have a check from Britain for
1000 pounds. My local Connecticut bank would have to send it to a bigger
bank (Fleet) to cash and I will incur service charges from both. My bank
can't tell me what my final amount will be. I just have an account with
this small local bank, and money with Fidelity. Any ideas on how I can
get the most from this transaction? thanks. amy kennedy
akennedy@connix.com
------------------------------
Date: Tue, 30 Sep 1997 20:52:18 -0400 (EDT)
From: "Odvar Bjerkholt" <bjerkholt@bjerkholt.com>
Subject: Opening Account for 4 Year Old
I would like to give some money to my son who is 4 years old... to
put it in his name.. so he can access it when he is older...
I am not a US Resident nor is my son
Custodial accounts are only for US Residents
Ninors can not open accounts
How do I do it?
And how can my son avoid paying Estate Taxes which seem to be very
high and with no deductibles for non residents...??? Non resident pay
very little taxes on investments when they are alive but too much
when they die!!!
Can somebody help? Any pro's willing to do it for a fee?
Thanks
------------------------------
End of persfin-digest V4 #87
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