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Subject: persfin-digest V4 #90
Date: Wed, 8 Oct 1997 20:09:17 -0400 (EDT)
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persfin-digest Wednesday, October 8 1997 Volume 04 : Number 090
IN THIS ISSUE:
ADVERTISEMENT: LAN ACCESS TO MCI MAIL
Can You Separate Deductible from Nondeductible IRA Money?
Growth Stock Outlook (GSO)?
Car Accident Question
RE: Nursing Home Insurance
Theft waiting to happen...
End of marriage penalty?
Re: Nursing Home Insurance
Valuation of Automobiles
Re: How to get off credid card solicitation lists
Re: Nursing Home Insurance
Roth IRA Or Nondeductible IRA?
RE: Subdividing
Re: moneypaper
Insurance for 50's couple
nursing homes
Re: Deductible IRA vs. Roth IRA
Bond Information Web Site?
My Place On the USA Income Distribution Curve?
Insurance proceeds?
credit report service - Good Deal?
Re: Gains on Stock Investments? Do Dividends Count?
Re: Sunset For The Index Funds? :)
Discover card nits to pick
Getting off credit card solicitation lists
Interested in a certified financial planner career
Re: How to get off credit card solicitation lists?
Education IRAs - Not Crazy About It
tax free accounts for kids?
Re: Sunset For The Index Funds?
Estate Planning for Non-citizens ?
====================================================================
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Date: Wed, 8 Oct 1997 19:38:01 -0400 (EDT)
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------------------------------
Date: Wed, 8 Oct 1997 19:40:32 -0400 (EDT)
From: The Editor <Ira>
Subject: Can You Separate Deductible from Nondeductible IRA Money?
If you have both deductible and non-deductible IRA money in prior
accounts, how do you specify which money is going to be transferred to a
Roth IRA?
Ira
------------------------------
Date: Wed, 8 Oct 1997 19:41:04 -0400 (EDT)
From: Faisel Saeed <scribler@gocities.com>
Subject: Growth Stock Outlook (GSO)?
has anyone had any experience with Growth Stock Outlook (GSO)?
they offer newsletters as well as a sample portfolio.
I wonder if anyone has followed it? and had what kind of results?
- -Faisel
------------------------------
Date: Wed, 8 Oct 1997 19:41:44 -0400 (EDT)
From: Casey Huang OPS <a210592@brazos.fmr.com>
Subject: Car Accident Question
Hi,
I was involved in a 3-car accident. Here is what happened:
I was driving home on 121 and all of a sudden a car hit me from behind
and I hit the car in front. Let's call the person in front Frank and
the person from behind Ben. The speed limit on 121 is 55 and I was just
following along the traffic flow at 40-45. When I got off the car, I asked
the person from behind what happened and he replied
"I didn't see you."
When the police arrived, Ben admitted that it was his fault so the police
report stated that John failed to control the speed and followed too closely.
Then Frank and I asked John for his insurace information. After we wrote down
his insurance information, he said to us "I am sorry, guys but I am glad that
nobody gets hurt." Then we said good-bye to one another. I thought the case
would be simple. But it turned out to be more complicated than I originally
thought.
I called Ben's insurance company and they recorded our conversation the next
day when they called. I thought it was over. But serveral days later, they
declined my claim on the ground that John told them I cut in front of him and
that Ben told them that he felt two impacts. I couldn't believe that they
would decline my claim so I talked to an attorney. And the attorney told me
that two impacts felt by the car in front made a big difference because, he
exlained, when Frank in front felt two impacts the normal scenario is that
I hit him first and then the car from behind hit me then I hit the car in
front again. In this scenario, I was at fault so he was feeling uncomfortable
representing me.
By the way, my car was totaled and it was 91 Honda Accord LX. I have spent
more than one thousand dollars for car rental, towing fees, storage fees etc
because of this car accident.
So now I am asking persfiners if anyone of you has similar experience and
would like to share with us as to how you get it resolved. Or I should simply
drop it. Your reply will be greatly appreciated.
- -Casey Huang
------------------------------
Date: Wed, 8 Oct 1997 19:43:09 -0400 (EDT)
From: "Cal Lester C.L.U." <Cal_Lester@classic.msn.com>
Subject: RE: Nursing Home Insurance
Ron asked:
I was wondering if anyone has advice on the pro/cons of Nursing Home
insurance? My mother (78) is considering such and has asked me to look into
it for her. Some of the premium quotes are starting at @ $250 mo. for first
yr., then $380 2nd. yr. , etc. She has sufficient funds in her name to pay
cash for a #yrs., however she is afraid of nursing home cost after seeing a
friend linger in a home for a few years.
>>>> Hy Ron;
I can state categorically, that there ARE Pro's & Con's for the purchase
of ANY Long Term Care policy ( which includes Nursing Home Insurance ). First,
let's start out by defining WHAT Nursing Home Insurance IS. It is a contract
that will provide DOLLARS ( not care ) if the Insured is CONFINED in a Nursing
Home, and meets the stipulations in the contract. Generally speaking, it will
NOT ( unless there is a RIDER to the effect ) provide any Dollars for In Home
Nursing Care.
Next, the cost of care in a Nursing Home, Nationwide, is something in the
area of $100 per day, $3,000 per month, $35,000 to $40,000 per year. If an
individual has LITTLE money or assets, then they will in all probability
qualify for some form of MEDICAID. That is the National Government Program
that covers a great deal of the Health costs for Senior Citizens. One has to
generally be "Medicaid Poor" to meet their qualifications.
For those who do NOT qualify for MEDICAID coverage, they would be forced to
pay for there own care. If you have a "modicum" of assets, you would use those
up, and then apply for MEDICAID to pick up the balance of the expenses.
For those who have CONSIDERABLE assets, they should look to preserve those
assets, because they will NEVER qualify for MEDICAID, through the use of LTC
Insurance.
What are other alternatives available, if any, that can be used to
offset this cost aside from taking chances using her own cash that she may
not be confined for a long period?
If your Mother does NOT want to attempt to qualify for MEDICAID ( and many
refuse due to the stigma of appearing to be a Pauper ) then if her current
cash flow will permit, she should purchase a contract that will provide Long
Term Care, WHEREVER it might be required. I am referring to a Combination
policy, that will pay for care received either at home, in an assisted living
facility OR a nursing home. It is obviously more expensive, but offers MUCH
more benefit. In effect, the contract will pay for care received NO MATTER
WHERE IT IS GIVEN, rather than a specific policy, which only pays if care is
given in the facility covered in the policy.
This answer has been a bit lengthy, because the subject is very diversified.
If you have any additional questions, you can contact me directly at
Cal_Lester@msn.com.
Cal Lester CLU
Insurance Course Coordinator
Broward Community College
------------------------------
Date: Wed, 8 Oct 1997 19:44:02 -0400 (EDT)
From: Jon King <kingjo@CS.ORST.EDU>
Subject: Theft waiting to happen...
>From: GeorgeS <pip@shore.net>
>Subject: How to get off credit card solicitation lists?
> FWIIW, the reason to avoid these solicitations is to avoid credit fraud.
> Should someone else get an offer intended for you, they can merrily
> charge against your name. And then... welcome to credit report hell.
The worst are the ones that come with a "check" enclosed. We have one
company that keeps sending us checks for $7500... "Just cash the enclosed
check to open your account."
Talk about potential danger. I wouldn't mind learning how to get off
these lists either...
Jon
------------------------------
Date: Wed, 8 Oct 1997 19:44:28 -0400 (EDT)
From: rbhumbla@ames.ucsd.edu (Ravinder Bhumbla)
Subject: End of marriage penalty?
Rich Carreiro <rlcarr@animato.pn.com> wrote:
# Here's something to keep your eyes on (and to lobby for) next year.
# The GOP says it is planning to introduce legislation next year that
# will allow married people to file as married jointly, married
# separately, or *as two singles*, whichever they want.
#
# If passed, this would mean the end of the marriage penalty.
I remember reading in this forum, or on Usenet, that this idea has
come up before but they did a study and found that the loss of revenue
from this income-tax reduction would be too great. So I wouldn't bet on
this legislation ever passing.
Ravi
------------------------------
Date: Wed, 8 Oct 1997 19:45:36 -0400 (EDT)
From: "Richard A. Bauer" <owowo@netguard.net>
Subject: Re: Nursing Home Insurance
Ron wrote:
>>>I was wondering if anyone has advice on the pro/cons of Nursing Home
insurance? My mother (78) is considering such and has asked me to look
into it for her. Some of the premium quotes are starting at @ $250 mo.
for first yr., then $380 2nd. yr. , etc. She has sufficient funds in
her name to pay cash for a #yrs., however she is afraid of nursing home
cost after seeing a friend linger in a home for a few years.
>>>What are other alternatives available, if any, that can be used to
offset this cost aside from taking chances using her own cash that she
may not be confined for a long period?
Here is my 2 cents worth:
Insurance covers the average cost for the average case, plus a profit for
the insurance company. 80% of people never enter a nursing home. 80% of
those that do enter have a total stay of less than a year. (My
statistics may be off a bit, I mention them from what I recall). The
point is, very few people have a long stay in a nursing home.
My advice: Let your Mom spend down and be independent. If she runs out
of money, there is always Medicaid.
My father was in a nursing home for 3 years. My mother has been in 7.5
years. She is still financially able to pay her way - my father was a
blue color worker and invested wisely!
Learn a spreadsheet program and work out the cash flows yourself. Be
sure to consider inflation, etc.
Richard A. Bauer St. Louis, MO
http://www.netguard.net/~owowo/index.htm
------------------------------
Date: Wed, 8 Oct 1997 19:46:15 -0400 (EDT)
From: Kent Shaw <kshaw@erols.com>
Subject: Valuation of Automobiles
A few weeks ago, someone asked for help in appraising a car that he planned
to give to charity. There's a free online blue book service at
http://www.kbb.com/ that provides retail and trade-in values. Just
provide the year, make, model, options, and mileage.
------------------------------
Date: Wed, 8 Oct 1997 19:47:15 -0400 (EDT)
From: B Regester <marr@digisys.net>
Subject: Re: How to get off credid card solicitation lists
I read in USA Today that on Tuesday changes to the Fair
Credit Reporting Act took effect. Keeping credit bureaus
from selling your name to credit card and insurance
companies that send out pre-approved credit offers, is
among these. You may call the bureaus (TRW etc) and
request being removed but if you call it's only in effect
for 2 years. To permanently opt out, you must call for a
form to put your request in writing. Hope this is of
help.
B Regester
------------------------------
Date: Wed, 8 Oct 1997 19:48:42 -0400 (EDT)
From: Avrum Lapin <avrum113@cyberg8t.com>
Subject: Re: Nursing Home Insurance
Nursing homes cost about $40,000/year. If your are a senior and indigent
the government through MediCal (or its equivalent in your state) will pay
the cost as long as your assets (less your house and a few other small
items) are less than $2K and your income is less than $30/mo (they use the
rest to pay the nursing home). - If you have a spouse or a dependent child
you can set aside about $79K in assets and $2K/mo for the spouse. There are
a collection of rules which limit your transfer of assets prior to entering
the home. MediCal will lien your home
I suspect that the MediCal people have negotiated a minimal comfort rate
with the nursing homes
The nursing home insurance ($100/day, 3 years runs $6-7k/yr for someone who
starts at age 79) so the benefits quoted for the $250/mo policy are
probably a lot less.
If I was your grandma and I was entering a nursing home from which I did
not expect to leave except through death I would consider taking my assets
and disappating them in a Waldorf type nursing home and then going on
MediCal at minimal comfort because that is the only way I will ever recover
my investment in taxes over the years - yes I'm selfish
Insurance makes sense only you think that you will leave the nursing home
and be able to return home to resume your "normal" life, or if you have a
spouse at home to consider or you really want to leave an estate.
While I have seen all sorts of statistics which state that most of us will
spend some time in a nursing home I have seen nothing which states that x%
of us will spend less than a year, and y% will spend more than 3 years.
Obviously things like Alzheimers, Parkinsons and sever arthritis have long
term stays.
For what it's worth, my friends in our AARP chapter whose spouses died in
nursing homes have all gone out and had living wills (Pull the plug
documents) drawn up.
>From Kiplinger's 5/97: Buy Insc if assets <$100K, Income <$40K but don't
pay more than 6% of income. Also most stays are < 3mo, the average stay is
is <3 yrs
>From Money 2/94: Dont buy if Income >$50K, estate >$100K +home)
Forbes 6/19/95: Buy if assets >$100K, < $1M (obviously thinks differently)
14% of men, 31% of women aged 65 will spend >1 yr in nursing home.
>From Smith Barney flier (4/96) - they sell insc - buy if you have assets
>$150K at age 65 to protect (why are you protecting the assets)
Avrum Lapin
Upland., CA
------------------------------
Date: Wed, 8 Oct 1997 19:51:06 -0400 (EDT)
From: Michael Gordon <gordonm@cc.denison.edu>
Subject: Roth IRA Or Nondeductible IRA?
It's legal now, but may not be for long. According to an article in
the Journal last week, the IRS and Congress see a potential for abuse
here. I can take my regular IRA, roll it over into a Roth IRA on January
1 and then take it all out on January 2. I'll have to pay taxes on the
rollover (but over four years), but in effect I can use this method to
take money out of my IRA without penalty. The feature that enables this
is that the original contributions to a Roth IRA can be withdrawn at any
time without penalty. The limitations on withdrawals only apply to
earnings.
------------------------------
Date: Wed, 8 Oct 1997 19:51:56 -0400 (EDT)
From: SMC <smc1@hotmail.com>
Subject: RE: Subdividing
>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?
SAM
========================================================================
The response Bob Ford gave to this topic is a good primer to the
complicated topic of real estate subdivision. Bear in mind that
depending upon the municipality in which you acquire a potential
subdivision, you will also be required to pay the legal and engineering
fees incurred by the municipality to review your plans and impact
studies. This typically can cost you as much as 5% of the value of your
subdivision depending on Zoning and Planning Commission requirements.
In addition, since your subdivision involves dividing one 15 acre parcel
into three new parcels, your project will probably be considered a
"major" rather than a "minor" subdivision and will necessitate certain
infrastructure improvements that could run into tens of thousands of
dollars.
As an experienced real estate developer, I would advise you to consider
if this project is really worth the time, money and aggravation that you
will incur. If it is, be certain that the real estate market is robust
enough to insure that you are able to sell the lots in a reasonable
amount of time. Additionally, if you do purchase the 15 acre parcel, be
sure to allow yourself a "due diligence" time period to conduct the
necessary research to assess if the project is economically viable.
Needless to say, it will be necessary to engage the services of a real
estate attorney and an engineer experienced with subdivision in your
area. This is NOT a do-it-yourself project!
PRIMO
primo@fast.net
------------------------------
Date: Wed, 8 Oct 1997 19:52:28 -0400 (EDT)
From: flynndj@juno.com (David John Flynn)
Subject: Re: moneypaper
I've used the money paper and really like it. When one company was slow
in getting me the stock, the money paper contacted the company to find
out why even before I noticed it was a little late. They really seem to
do a good job. You might check out various drip web sites. I understand
that many, many companies allow you to buy direct now without having to
even use the money paper. Even disney now offers a drip ( again ) but it
requires 10 shares, or $1k, or $100/mo.
dave flynn
flynndj@juno.com
------------------------------
Date: Wed, 8 Oct 1997 19:52:52 -0400 (EDT)
From: "Jim Reed" <jreed1@airmail.net>
Subject: Insurance for 50's couple
D.R. wrote:
>My question is indirectly related to personal finance. I desire to
>retire at the age of 50. The only thing I see that would make this
>difficult is the issue of affordable health insurance for me and my wife.
>
>Does anyone have any suggestions or about this subject which
>would assist me in my goal?
Yes, I understand your situation. My wife and I are in the same.
I've found that seeking insurance for a couple in their 50's is a real
battle. I'm been self-employed most of my life and the issue of health
insurance continues to be difficult at best.
We've now settled on a policy through the National Association for the
Self-Employed. The company itself is named PFL Life. It's not perfect, but
it was the best we could do. We feel lucky that their premiums increased
only 4.7% last year. <smile>
The most recent issue of Fortune magazine has an article that you'd be
interested in reading. It discusses your subject.
Good luck and kindest regards,
Jim, in Texas
jreed1@airmail.net
------------------------------
Date: Wed, 8 Oct 1997 19:54:01 -0400 (EDT)
From: "Jim Reed" <jreed1@airmail.net>
Subject: nursing homes
Yes, David, I understand how this could happen. My father said the same
thing about 6 years ago. All of my family members (including me) agreed
that he would never go to a nursing home. We committed to one another that
we could always work something out, so his wishes could be carried out.
Well....things don't always happen the way we want.
After over two terrible years of trying to care for my father in his home,
the whole family was spent, stressed, and my mother's health suffered. For
the last year, we even had a live-in that could take up the slack when we
could not perform the care. That still wasn't enough.
David, I think it would be worthwhile for you and your family to take a
good look at exactly what it takes for someone to die at home.
I believe that things are somewhat better now with hospice care available;
but, remember, even a hospice service may not really want to loose a
client. Dad was on hospice care for about 6 months.
My father is now in his third year of nursing home care. We learned that
good nursing homes can be found if you are willing to look hard
enough......and the quality of my father's care is much better now.
It is very difficult to outfit a house in a way that high quality medical
care can be provided. I believe what we did was the most kind thing we
could do for my father and our family. Of course, your situation could be
different.
Kindest regards,
Jim, in Texas
jreed1@airmail.net
------------------------------
Date: Wed, 8 Oct 1997 19:55:14 -0400 (EDT)
From: "rip west" <rip@montrose.net>
Subject: Re: Deductible IRA vs. Roth IRA
Rich Carreiro said.......
>>2. When compared to a regular deductible IRA a ROTH IRA is a no brainer
>>choice . The younger you are, the higher return you get, and the higher
>>your tax rate, the more attractive the ROTH IRA looks.
>
>Here I have to disagree. I've done out the calculation, and under various
>quite reasonable assumptions, either can come out ahead. The main
determinant
>is current tax bracket vs. future tax bracket. Indeed, if those brackets
>are equal, a regular IRA and a Roth are in fact a wash.
Here, I have to disagree. You have to consider the time-weighted value of
the initial deduction that you receive, which could amount to a lot more
than a tax liability (at the same rate) 20 years in the future.
rip
------------------------------
Date: Wed, 8 Oct 1997 19:55:49 -0400 (EDT)
From: "Mr..Zahid Shafique" <shafiq@paknet1.ptc.pk>
Subject: Bond Information Web Site?
Dear Persfin-Digesters
I would like to know if there is a good World-Wide Web site for obtaining
information on bonds (govt. bonds, company bonds, international bonds,
etc.). There are various sites which provide information on equity funds,
but I have yet to come across one for bonds. Does anyone know of such a
site ?
Thanks
Zahid Shafiq
shafiq@paknet1.ptc.pk
------------------------------
Date: Wed, 8 Oct 1997 19:56:40 -0400 (EDT)
From: borisv@mailhost.ctron.com
Subject: My Place On the USA Income Distribution Curve?
Hi persfiners,
Last weekend I tried to find on the Net the answer on one of my
curiousity questions:
Is there way to find your percentile in national household income
distribution? Given a family income, can I find "where we are"?
At 50%, 75%, 99% (Hi, Mr.Gates! :) mark?
The search revealed few very interesting tables for some states, and
pointed mostly to the Census Bureau database. In there I found a
plenty of info, but not to my point (or I merely misinterpreted
it). After an hour of surfing I gave up :(
The ideal would be a single graph with descending curve "percent of
households/total income"...
Can you suggest where to look into? URL, book, whatever...
Thank you,
- -Boris
Dover,NH
------------------------------
Date: Wed, 8 Oct 1997 19:58:45 -0400 (EDT)
From: Steven Klein <SKLEIN@snm.org>
Subject: Insurance proceeds?
I recently had flood damage in my home, and was paid for damages by
my insurance carrier. Now I have decided to keep 2 of the damaged
items (a sofa and dresser) for which we were paid by our carrier.
I intend not to give the money back to the insurance carrier.
Can I do this?
Steve K.
(Editor's Opinion - Yes. Just like when you collect from your insurance
company after an auto accident, you're under no obligation to repair your
car. -IK)
------------------------------
Date: Wed, 8 Oct 1997 19:59:20 -0400 (EDT)
From: "Phillip Jennings" <pjennings@deans.pharm.utah.edu>
Subject: credit report service - Good Deal?
Is anyone familiar with Credentials Credit Report Monitoring Service?
This is a company that provides you unlimited credit reports free of
charge and notifies you anytime someone or some company requests your
credit report. The advertised advantage of this is that you may
potentially find out within days of someone illegally obtaining
credit in your name.
I received an advertisement to receive a credit report with no
obligation to subscribe to the service. I just received the report
(it looks fine), but I am wondering whether I should or should not
subscribe to the service (for $49.95 annually). Does anyone have an
opinion on this service or maybe how often you should check your
credit report. With all of the credit fraud reported on this list and in the
news, is this a well-spent $50??
Phillip Jennings
------------------------------
Date: Wed, 8 Oct 1997 20:00:33 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Gains on Stock Investments? Do Dividends Count?
>I've been following the capital gains and losses thread on the digest, and
>I've trying to understand something. Please forgive me if this sounds
>basic, but I'm still learning. The impression I'm getting, from the digest
>and other sources, is that the main return on investment in shares of a
>company comes from the increase in the company's stock price, and that any
>dividends the company chooses to pay are only incidental to that return. Am
>I getting the right impression?
It depends :-)
After all, if the price of a stock stays flat but the stock throws off
a 5% dividend, the dividend is your entire return on investment.
Historically, in fact, dividends have provided about half of the market's
total return, hardly merely "incidental." It is of course true that in
the past two or so years dividends haven't accounted for much, but I don't
necessarily see any reason for that to continue indefinitely.
>In other words, if I buy stock in ABC Corp for $15 a share, and a year
>later, ABC's shares are trading at $30 a share, the value of my investment
>in ABC can be said to have doubled?
Assuming you own the same number of shares, then yes, the value of
your investment in ABC has doubled (rate of return = 100%). If ABC
throws off a dividend and its stock doubled, then your RoR would be
greater than 100%. Basically:
total return = %change in price + dividend yield.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 8 Oct 1997 20:01:13 -0400 (EDT)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Sunset For The Index Funds? :)
>"...For the first time in recent memory, managed funds
>last quarter outperformed index funds. In a big way,
>too. According to Lipper Analytical, actively managed
>funds on average doubled -- and sometimes tripled --
>the return of index funds for the quarter..."
>
>What a relief for all of us not investing in the Index craze! :)
Don't get too cocky... :-)
>From what I've seen, the term "index funds" in that quote is shorthand
for "Standard & Poors 500 index funds." The SP500 index is *heavily*
large-cap weighted. In the quarter just ended, small-cap stocks as a
class did better than large-cap stocks. Therefore, one would have to
be shocked to not see lots of actively managed funds do better than
that "index funds." The above quote is thus rather meaningless.
What would have meaning, IMHO, would be the answers to the following
questions (which I would like to see somewhere -- I don't know the
answers):
(1) How did large-cap actively managed funds do relative to SP500 index
funds?
(2) How did small-cap actively managed funds do relative to the appropriate
index (Russell 2000, perhaps)?
In general, comparing actively managed funds to index funds only makes
sense if you are comparing apples to apples. You've got to compare it
to a relevant index, or the comparison is meaningless.
In fact, if you want to properly evaluate your actively managed funds,
you should construct a custom benchmark. For example, pretend fund
XYZ consistently is 50% large-cap, 20% small-cap, and 30% long-term
Treasuries (or it swtiches things around, but over time averages to
that allocation). It would be totally inappropriate to compare it to
the SP500, Russell 2000, or a long-term bond index.
However, if you created your own "index" such that the rate of return
of your "index" was equal to 50% of the RoR of the SP500 plus 20% of
the RoR of the Russell 2000 plus 30% of the RoR of a long-term bond
index, then the difference between the return your fund got and the
return of your "index" would tell what value-added your fund manager
was giving you.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 8 Oct 1997 20:02:12 -0400 (EDT)
From: Dean_Goulding@tufts-health.com
Subject: Discover card nits to pick
Two nits to pick with Discover card.
I had asked that my Cashback Bonus check be credited to my account.
Friday, I received the check in the mail. I sent it off to be
deposited in my GE Interest Plus account. I was told by the Discover
Card rep on the phone that they cannot stop the anniversary package
that contains the check from going out. They can only put a stop
payment on the check and then issue a credit. Huh? Does that make
sense to anyone? "I can't pour you a glass of milk, but I can spill
one on the floor, mop it up and put the squeezings in a glass for
you".
I sent in two checks totaling my balance with my last invoice.
Noticing only one check was credited, I was told that the machine that
opens the envelopes, removes the slip and the check. If there are two
checks in the envelope, the second will be destroyed. Cool!
Now I get to pay a finance charge on the outstanding balance from the
destroyed check, plus a stop payment fee on the destroyed check!
Ain't automation great!
FYI... fuming in my coffee, Dean
------------------------------
Date: Wed, 8 Oct 1997 20:03:02 -0400 (EDT)
From: MoneySecre@aol.com
Subject: Getting off credit card solicitation lists
GeorgeS wrote:
"How do I get off credit card soliciation lists?
You know the ones I mean, they offer low low balances if only you would use
their card. Well, I just am not interested. The last time I looked at my
credit report (TRW) it was loaded with inquires from these companies.
I'd like to get off the solicitation lists. I heard, on NPR, that congress
recently passed a law that says the credit report companies will keep your
credit history from these companies if you so request."
I recently wrote an item about this in my column for Kiplinger's magazine.
Here's the scoop: The law -- an updated version of the Fair Credit Reporting
Act -- states that beginning Sept 30, the credit bureaus have to give you the
option of opting out of preapproved credit card solicitations. Here are the
phone numbers for the credit bureaus:
Equifax: 800-556-4711
Experian: 800-353-0809
Trans Union: 800-680-7293
There's no need to call all three, though. They're supposed to share the
info between them (also in the law). The only thing is if you make your
request by phone, you only get off the lists for 2 years. If you want to be
off permanently, you have to ask for a written form. Hope this helps.
- --Stephanie Gallagher
------------------------------
Date: Wed, 8 Oct 1997 20:03:50 -0400 (EDT)
From: Lawrence Wang <lwang@qal.berkeley.edu>
Subject: Interested in a certified financial planner career
i'm contemplating a career in this field & would like to find out
more information. what exactly does this career entail? does one
tend to work for a financial firm or is it more private practice? what
is the trend these days regarding that? how does one go about getting
certified? how long is the certification process & how many parts of the
certification test are there? do you need financial work experience
before getting certified and if so, for how long? is there an organization
out there which provides information booklets and if so, how can i
contact them? lastly, are there many intern possibilities out there for
financial planning? i might want to intern to find out if i like it
before going full throttle in this field. i would appreciate any
responses to these questions; thanks in advance.
- -larry
------------------------------
Date: Wed, 8 Oct 1997 20:04:46 -0400 (EDT)
From: "Alan E. Hersh" <CyberWiz@web-site.com>
Subject: Re: How to get off credit card solicitation lists?
:
: In addition to the phone numbers I sent for the
: credit bureaus, you can write to:
:
: Direct Mailing Association Mail Preference Service
***
They have a web page at
http://www.the-dma.org/consass5/consasst-mps5a3.shtml
- ---
Alan E. Hersh (Editor)
The Hersh Web Site Observer (http://CyberJournalist.com/)
Fax = (805)496-6171
P. O. Box 2067 - Thousand Oaks, California 91358-2067 USA
- ---
http://Tax-Advice.com/
------------------------------
Date: Wed, 8 Oct 1997 20:05:51 -0400 (EDT)
From: "Wiedwald, Dave" <wiedwd@WHQPOS3A.DAYTONOH.ncr.com>
Subject: Education IRAs - Not Crazy About It
>As most of you know, saving in the kids' names adversely impacts the
>financial aid process. If a parent is aware of this and still wants to
>save in a child's name, I would generally recommend an UGMA or an UTMA
>before an Education IRA. Here's why:
>2. In spite of the "kiddie tax" rules, a child under age 14 can still
>have up to $1300 per year of income at no/low rates (650 is taxfree, next
>650 is taxed at 15%). If a parent only sets aside $500 per year, the
>child will be over 14 before that pool of money is generating 1300 per
>year of income.
>3. Similarly, in an UGMA/UTMA, a parent can set aside more than $500, if
>they want to. At a 10% earning rate, a child can accumulate 13,000 of
>assets in his/her name (1300 divided by .10) before the income is taxed
>at the parent's higher rate.
>4. UGMA/UTMA assets are more flexible--they just need to be used for the
>child's benefit. That means a new computer or summer camp, if needed.
>The Education IRA proceeds, on the other hand, must be used strictly for
>higher education costs.
I was under the assumption, this wasn't an either or situation. Why
would it not be in the best interest of the parent to annually fund $500
into the child's Education IRA and where necessary supplement with gifts
to the child via UGMA/UTMA?
------------------------------
Date: Wed, 8 Oct 1997 20:06:33 -0400 (EDT)
From: stevehua@synopsys.com (Chun-yao Huang)
Subject: tax free accounts for kids?
Hi,
I was told that there're some tax-free investment accounts that we can
open for our kids. Could anyone tell me how/where to open those accounts?
Thanks.
------------------------------
Date: Wed, 8 Oct 1997 20:07:00 -0400 (EDT)
From: Jim McGrath <jimm@hi.com>
Subject: Re: Sunset For The Index Funds?
> What a relief for all of us not investing in the Index craze! :)
>
> - -Boris
> Dover,NH
Why do you call it an index craze? I think that index funds are fine
for the large cap portion of a portfolio. The turnaround of actively
managed funds is being driven by small and mid cap stocks making a
comeback. I think that active management can add value in this area.
Jim
------------------------------
Date: Wed, 8 Oct 1997 20:07:36 -0400 (EDT)
From: John Wallace <JWallace@karta.com>
Subject: Estate Planning for Non-citizens ?
Does anybody know of a reference book, or other information source,
that discusses in _detail_ the special problems that occur in Estate
Planning when one or more of the potential beneficiaries / trustees /
etc. are not US citizens ? (II have the book by Martin Shenkman, but he
really only devotes a page or two to this topic.)
Also: Does anybody know of a reference source that focusses on how to
use (or not use) Trusts to shield assets from future creditors. Most of
the books that I have seen are primarily focussed on Tax considerations,
and only mention judgement-proofing briefly as an afterthought ......
Thanks !!
------------------------------
End of persfin-digest V4 #90
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