Go to Jeff Salisbury LWGate Home Page.From: persfin-digest <owner-persfin-digest@shore.net>
Subject: persfin-digest V4 #104
Date: Wed, 19 Nov 1997 21:11:15 -0500 (EST)
Articles sorted by: [Date]
[Author]
[Subject]
persfin-digest Wednesday, November 19 1997 Volume 04 : Number 104
IN THIS ISSUE:
ADVERTISEMENT: LAN ACCESS TO MCI MAIL
Safe Investment of $10K?
New or Used Car? I Go For Used
Cremation
Credit Cards w/Frequent Flyer on any airline?
MAKE A WILL
Re: 125 PERCENT LOAN
Re: Converting from Deductible to Roth IRA
Re: Deductible IRA Question - End of "Tainted Spouse" Rule
Re: tax-deductible IRA
Re: Deductible IRA Question
Claims Loss Underwriting Eval (CLUE)?
Cryonic Burial
RE: Cryonics
Re: Getting Copy of Insurance Policy
====================================================================
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?
The new HP360LX palmtops (Windows CE 2.0 and 8MB RAM) can be ordered.
Price $650 + shipping.
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: $470 + $15.95 shipping (in USA).
Check out our ProScan wide screen TVs and satellite receivers!
Motorola 56KB MobilSURFR PC Card/Fax Modem with Cellular capability -
$189.99
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 newly updated and expanded Web site, at:
http://www.wholesaleproducts.com
Special Orders: wholesal@shore.net
Phone: 1-617-438-8622 (24 hours)
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: Wed, 19 Nov 1997 20:43:39 -0500 (EST)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: LAN ACCESS TO MCI MAIL
LAN Access to MCI Mail
Link your LAN to the Rest of the World
Global Accessability
Toll Free Access.... No Need for Data Lines
Secure:Helps Keep Hackers Out of Your Network
Ideal for MultiOffice & Dispersed User Applications
Supports cc:Mail, MS-Mail, Groupwise, VINES, MHS,X.400
Includes:
Internet E-Mail
Internet Vanity Domain Name Option Available
X.400 E-Mail (Secure, Private, Trackable e-mail)
Fax Delivery (Alternate Delivery Option Included)
Telex, Pager and Postal/Courier Hardcopy Options
Oppenheimer Software Authorized MCI Messaging Agency
Tel:800-390-9379 E-Mail:Connect-Sales@mcimail.com
Fax:800-492-6862
------------------------------
Date: Wed, 19 Nov 1997 20:45:22 -0500 (EST)
From: Chuck Vaughan <cvaughan@snowhill.com>
Subject: Safe Investment of $10K?
I need some advise on how to safely invest about $10,000. I'm looking
for the greatest amount of return without high risk. This is for my
grandmother, who recently came into a little money. She wants me to take
care of it for her. So i want to do something that's safe but draws more
than what just putting it in a savings account would make.
Any and all ideas are welcome....
Thank you,
Chuck Vaughan
cvaughan@snowhill.com
------------------------------
Date: Wed, 19 Nov 1997 20:46:09 -0500 (EST)
From: dollymadis@megsinet.net
Subject: New or Used Car? I Go For Used
>According to Car Talk, the cheapest way to own an automobile >is to buy an
>old, used vehicle that has been well maintained. Then, when >something
>breaks down, get it fixed. Unfortunately, by taking this route >you have
>high costs in inconvenience and in the risk of standing by the >side of
the
>road.
My experience has been that I seem to have spent as much time standing by
the side of the road with new vehicles as with reliable used ones and the
cost advantages of used are obvious. Tom Gilbertson
------------------------------
Date: Wed, 19 Nov 1997 20:47:16 -0500 (EST)
From: Elizabeth Kennard <kennard.3@osu.edu>
Subject: Cremation
If anyone is considering donating your body to a medical school :
One cannot simply stipulate this in one's will. One must arrange this
through the medical school. My aunt tried to leave her body to the med
school in her will and ended up in a cemetary because she hadn't talked to
the school.
I'm sure different schools do things differently. Ours had a memorial
service at the end of the year. I don't believe the ashes were returned to
the family--though that might be arranged.
------------------------------
Date: Wed, 19 Nov 1997 20:48:03 -0500 (EST)
From: karenh@mcsi.net (Karen Henderson)
Subject: Credit Cards w/Frequent Flyer on any airline?
Providian National Bank offers a VISA card with a rewards program where you
earn one point for every $1 charged. Earn 25,000 points and you can take a
flight within the continental United States on any airline, any day of the
year without paying an annual fee.
Karen
------------------------------
Date: Wed, 19 Nov 1997 20:50:12 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: MAKE A WILL
>Subject: RE: MAKE A WILL
>I'd like to add some comments to your list.
>SNIP
Jeff
Thanks for the useful comments. You made some excellent points and I will
incorporate them in my class. Experience is always the best teacher. I
invite anyone that has been through the experience of a death in the
family to privately e-mail me suggestions about how planning could have
helped them or any other suggestions that would be useful to other people
going through the same experience. I am always in the learning mode and
any suggestions will be appreciated.
I know death is something we do not usually like to talk about.
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Wed, 19 Nov 1997 20:53:08 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Re: 125 PERCENT LOAN
>From: "L. Chen" <am302@FreeNet.Buffalo.EDU>
>>> > I am just curious. The "125% loan" refers to 125% of the purchase
>>> > price? or 125% of appraised value?
>>>
>> It is always 125% of appraised value.
>What is the reason/basis/rationale for giving you a loan that is 125% of
>appraised value? The loans have to be documented. [They can't simply say
>that they think the appraised value is lower than it should be. If they
can
>do that, they don't need an appraisal to begin with.]
>Lily Chen
>am302@freenet.buffalo.edu
The reason for making this type of loan is that they are very profitable to
the lender. On these loans, the lender charges high interest rates and
high loan origination fees. A lender wants to make loans that will be
paid back at the highest interest rate and highest up front fees possible.
Only people with excellent credit can get these loans without other
considerations. The lender figures that the value of your home secures 4/5
of the loan and the other 1/5 of the loan is made on the basis of your
credit.
However most people that want a 125 percent loan do NOT have excellent
credit. In fact they usually have marginal credit. The way a borrower
can compensate for marginal credit when getting a loan is paying LARGE
loan origination fees like 18 to 20 points. So if a lender makes a 125
percent loan on your home and charges you 20 points, isn't the lender only
loaning you 105 percent of the value of your house. It doesn't stop
there. Any lender can find another 5 percent profit in the fees it
charges borrowers. Now the lender only loans 100 percent of the value of
the property but you make payments at a high interest rate on 125 percent
of the value of the property. These loans also are due in 10 to 15 years
which means very high payments.
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Wed, 19 Nov 1997 20:54:19 -0500 (EST)
From: JONESW@CCSUA.CTSTATEU.EDU
Subject: Re: Converting from Deductible to Roth IRA
The key fact about Roth conversions is that you should NEVER convert an amount
of money from a deductible IRA to a Roth IRA if you make the conversion at the
28% tax rate or higher and that money plus its earnings would otherwise be
withdrawn later at the 15% tax rate.
As far as the best investments for an older man who has enough money to live on
and does not know much about stock investing, I suggest putting it all into a
ladder of 5-year treasuries or inflation-proof treasuries or the like.
Bill Jones
------------------------------
Date: Wed, 19 Nov 1997 20:55:30 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Deductible IRA Question - End of "Tainted Spouse" Rule
>I read in Money magazine that the recently passed tax bill allowed one to
>deduct his IRA even if his wife has access to a tax-sheltered retirement
>account. Does anyone know if this deduction will be phased in? Or will it
>take effect all at once in 1998?
The "tainted spouse" rule was repealed effective for Tax Year 1998.
So one's IRA contribution will only be subject to the income test on
deductibility if one participates in a qualfied plan. Whether or not
one's spouse does becomes irrelevant.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 19 Nov 1997 20:59:32 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: tax-deductible IRA
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>(1) By IRS rule, one can open an IRA before April 15 of next year in order
>to take the advantage of tax deductibility for the year. Roth starts on
>Jan 1st, 1998. Can he open an IRA at any time before April and convert it
>to Roth the next day in 1998? We think in this way, he can have $2000 tax
>deductible for 1997 and does not have to pay much tax for withdrawal. But
>is it allowed?
I'm pretty sure he can, but what's the point? He'll get the tax
deduction for 1997, but the entire conversion will be taxable income
in 1998, so he'll give the savings right back the following year.
Your friend should do some number-crunching. While picking a Roth
over a NON-deductible IRA is practically a no-brainer, the comparison
between a deductible IRA and a Roth can go either way under many
reasonable assumptions.
>(2). This friend is 58 years old. At the moment he is at 28% tax rate,
>but he thinks his tax status may go lower if he retires. Is it worth to
>convert the IRA to Roth? Also, what are good investment strategies for an
This one of the scenarios where a deductible IRA may well do better
than a Roth (assuming the tax savings from the IRA contribution are
invested). You really should run some numbers.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Wed, 19 Nov 1997 21:00:31 -0500 (EST)
From: Steve Foulks <steve_foulks@up.bresnan.net>
Subject: Re: Deductible IRA Question
>
>I read in Money magazine that the recently passed tax bill allowed one to
>deduct his IRA even if his wife has access to a tax-sheltered retirement
>account. Does anyone know if this deduction will be phased in? Or will it
>take effect all at once in 1998?
>
>Brian O'Rourke
There is no phase in and it takes effect on 1/1/98. There is a phase "out"
for high tax bracket taxpayers.
Steven M. Foulks, CPA, CFP, PhD
Professor of Accounting & Finance
Northern Michigan University
<www.nmu.edu/instruct/business/sfoulks/>
------------------------------
Date: Wed, 19 Nov 1997 21:01:52 -0500 (EST)
From: dmak@tma-net.org
Subject: Claims Loss Underwriting Eval (CLUE)?
My car insurance agent mentioned that all accident claims get
reported to a service called Claims Loss Underwriting Evaluation
(CLUE), which is run by Equifax. Does anyone know how to obtain a
copy of your CLUE record (is it similar to getting a copy of your
credit report)? Thanks!
------------------------------
Date: Wed, 19 Nov 1997 21:06:20 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Cryonic Burial
>Date: Mon, 17 Nov 1997 21:59:13 -0500 (EST)
>From: Jeff Morgan <Morgajs@parsec.com>
>Subject: RE: MAKE A WILL
>Thank you for your thoughts, Bob. The items on your list have
>come in handy already as my wife and I embark on the long
>overdue task of putting our own affairs in order.
>I'd like to add some comments to your list.
>>>YOUR WISHES ABOUT AN AUTOPSY
>This may not be your decision. It may be made for you by a coroner or
>medical examiner.
JEFF
As a strong believer in of Cryonics, this is a subject that is very
important to me and one that I have done a lot of research on. As to
funeral cost, Cryonic burial is the most expensive of all methods. It cost
up to $100,000 so it is not for everyone. Most people just have a life
insurance policy for the $100,000 to cover the cost.
If you are planning for a cryonic burial, you definitely do not want an
autopsy. There are no absolute guarantees that you will not have one, but
you can greatly increase the odds of not having one by signing a form
called "Religious Objection to an Autopsy". You file this form with the
medical examiner/coroner of the county where you reside. This form is not
available in all states.
I understand that I am in a very small minority of people that believes
cryonics is based on sound science and will work and that the current 10
year research project to prove it will work will be successful.
Cryonics burial for people that have not heard of it before is burying a
person in liquid nitrogen. At that temperature all cell activity stops.
The hope is that science in future will find a way to cure what
caused the person to die, fix that problem and revive the person. If that
can be done the implications are enormous, for science, religion, and
also financially for the organization that does it first. Imagine that
you own stock in a company that has a patent on the process of reviving
people. The market for your product is every person on earth. Would that
be a good investment?
BOB FORD
BOB_FORD@COMPUSERVE.COM
(Editor's Comment - Isaac Asimov wrote a story once about a society where
nobody died. Eventually, each person had 1 square foot of living space
and food became an enormous problem. -IK)
------------------------------
Date: Wed, 19 Nov 1997 21:08:08 -0500 (EST)
From: Jeff Morgan <Morgajs@parsec.com>
Subject: RE: Cryonics
Bob, I understand and respect your views regarding cryonics.
When my mother died of cancer, after a long illness, the medical
examiner insisted on an autopsy. I would suppose that when one
dies at home, expectedly or unexpectedly, especially under
circumstances that may be construed as either suspicious or
at the most "Kevorkianlike", the medical examiner would have
every right to request an autopsy, religious objections or not...
If I may digress for a moment, did you know that the L.A.
Lakers cloned and preserved one of their star players
via cryonics? Now they have all these iced Kareem clones...
Sorry, I had to toss that in.
Cheers.
- --
Jeff Morgan - morgajs@parsec.com
(Editor's Comment - Actually, he was cloned and is now a running back for
the Miami Dolphins. He even wears number 33! -IK)
------------------------------
Date: Wed, 19 Nov 1997 21:09:51 -0500 (EST)
From: Jeff Morgan <Morgajs@parsec.com>
Subject: Re: Getting Copy of Insurance Policy
One quick note to Bob and others:
> A. IT IS NOT UNUSUAL TO NOT BE ABLE TO FIND A COPY OF THE
> LIFE INSURANCE POLICY. IF THAT IS THE CASE CONTACT
> AMERICAN COUNCIL OF LIFE INSURERS
> 1011 PENNSYLVANIA AVENUE NW
> WASHINGTON, D.C. 20004
> ASK FOR A POLICY SEARCH FORM. THEY WILL CONTACT
> ALMOST ALL U.S. COMPANIES TO SEE IF A PERSON IS INSURED
> WITH THEM.
We've contacted this organization, and they say they no longer
do policy searches, and haven't for a number of years.
Are you aware of any other organizations that might serve a
similar purpose?
Thanks in advance.
- --
Jeff Morgan - morgajs@parsec.com
------------------------------
End of persfin-digest V4 #104
*****************************
Articles sorted by: [Date]
[Author]
[Subject]