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Subject: persfin-digest V4 #108
Date: Tue, 2 Dec 1997 09:31:51 -0500 (EST)
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persfin-digest Tuesday, December 2 1997 Volume 04 : Number 108
IN THIS ISSUE:
ADVERTISEMENT: MCI INFOSOURCE
exchanging money in Japan?
Re: Mortgage bi-weekly payment offer
Biweekly Payment is a Ripoff
FW: "Equity-Acceleration" Plan
Re: Cheap Prescriptions - Check out Canada
403-B Plans and Other Questions
Re: IRA rollover question -- broker's fees? early redemption charges?
Re: Mortgage payment--monthly vs. biweekly?
Fidelity Credit Card?
Re: Bi Weekly Mortgage - Check Out Loan Locator Website
Old Stock Certificates?
Lease End Experiences - What To Do?
Re: Early Withdrawal Penalty on CD - Bank in NH Has It
Re: claiming expired miles...
special needs trust info
RE: Mortgage payment--monthly vs. biweekly? - Don't Do It
RE: Biweekly Mortgage payment - Don't Do It
RE: IRA rollover question -- broker's fees? early redemption
RE: IRA rollover question -- broker's fees? early redemption
prepay mortgage vs biweekly
Don't Give More Money To Your Mortgage Company For No Good Reason
Re:Mortgage payment--monthly vs. biweekly?
Re: Mortgage payment--monthly vs. biweekly?
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Date: Tue, 2 Dec 1997 08:44:33 -0500 (EST)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI INFOSOURCE
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------------------------------
Date: Tue, 2 Dec 1997 08:45:28 -0500 (EST)
From: Ryo Imamura <imamura@elwha.evergreen.edu>
Subject: exchanging money in Japan?
I am going to Japan next week. Considering the terrible Japanese market,
what is the best strategy for exchanging dollars into yen and back again
upon return? Would you recommend using an ATM card or traveler's
checks? Thanks.
Ryo Imamura
imamura@elwha.evergreen.edu
------------------------------
Date: Tue, 2 Dec 1997 08:49:51 -0500 (EST)
From: "Howard Kennedy" <poolshark@bigfoot.com>
Subject: Re: Mortgage bi-weekly payment offer
As I read your letter it is my understanding your mortgage Lender is asking
for a $295.00 enrollment fee and a participation fee of $5.42 per month in
order to save you money and payoff the loan 6.5 years faster. Not knowing
the amount you owe or the interest rate you are currently paying, I utilized
an example of $100,000 @ 7.000% on a standard fixed rate 30 year mortgage
and have drawn the following conclusion.
Take the fee of $295.00 they would charge and immediately apply it to your
principal balance. Pay your normal monthly payment plus an additional 1/12
th of the principal and interest payment plus the $5.42 participation fee.
The result is you would pay off faster than the offer given
Best of luck
------------------------------
Date: Tue, 2 Dec 1997 08:53:29 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: Biweekly Payment is a Ripoff
DARRELL
This bi weekly payment plan is a rip off. If you want to save $34K or
more in the interest you will pay on your mortgage, just make larger
payments each month. Indicate that the amount above the required payment
amount is to be applied to reduce the principal.
Check your mortgage to see if you can pay more each month. 99 percent of
mortgages will allow it. Usually you will see a statement something like
"payments are to be $xxx.xx or more" somewhere in the mortgage.
Some mortgages have a pre payment penalty if you pay more than a
certain amount each year. Check it out.
This method does not cost you any initial fees and no monthly fees. The
interest you pay on a mortgage is interest on the amount of money you
owe. The less you owe, the less total interest you will pay. You owe
less with each payment because your payment is part interest and part
principal. The principal part reduces what you owe so that the next month
your payment will have a larger principal amount and less interest amount.
Send me a private e-mail message if you need more information. I understand
that financial mathematics is a complicated subject.
GOOD LUCK
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Tue, 2 Dec 1997 08:54:50 -0500 (EST)
From: "David J. Churchill" <churchilld@worldnet.att.net>
Subject: FW: "Equity-Acceleration" Plan
Any mortgage-loan agreement I've ever signed has always given the
borrower (me) the option to make extra payments on the mortgage, subject
to the approval of the lender. Never have I seen in the agreements any
mention of extra fees. In fact, the only time I've ever heard of payment
of extra fees is on ads from 3rd-party companies advertising the type of
plan which your lender is now offering you.
I don't believe it is normal for a lender to charge a fee for this
service. Check your mortgage agreement. Try sending in an extra payment
with an explanatory letter and see what happens!! I've never know a
banker to not accept money!!
Dave Churchill
------------------------------
Date: Tue, 2 Dec 1997 08:56:16 -0500 (EST)
From: alexandr@cyberspc.mb.ca
Subject: Re: Cheap Prescriptions - Check out Canada
Avrum Lapin recently inquired where to get cheap prescriptions.
FYI: I live in Canada where our government acts as a huge single buyer
for medical services and drugs. Our system IMHO, seem to be similar to a
huge HMO.
Medication prices here for a many drugs, are 10-30% cheaper than the
same drugs in the U.S. and the U.K.. I have compared pharmacy prices for a
number of drugs in both countries and though some meds may be as expensive
here, "not one that I checked was cheaper in the U.S. than the same product
in Canada." With our Canadian dollar falling daily, potential savings may be
even greater.
Though American seniors' groups occassionally come up here to "load
up" on their medication requirements, there doesn't seem to be a general
awareness in the U.S. of price differentials between our wo countries.
I enquired from your FDA about the possibility of mailing prescriptions
from Canada to Americans in the U.S. if they faxed prescriptions up here and
a pharmacist filled them. They didn't like that idea, saying that drugs
entering the US by mail must be OK'ed by the FDA. They also said that drugs
in Canada may or may not be the same products as those sold in the U.S. and
they would have to OK them on an individual basis. This seems a
trade-barrier IMHO; the drugs I checked have the same name in each country
and are manufactured by the same company. But I am in no position to argue.
If anyone would like to compare drug prices between the U.S. and
Canada, send me an email. Tell me: how much you pay; for how many; of
"what"; and "where" if possible. I'll try to get you a comparable price in
Canada.
Regards,
David
------------------------------
Date: Tue, 2 Dec 1997 08:58:56 -0500 (EST)
From: Mike Morehouse <mikemore@rocketmail.com>
Subject: 403-B Plans and Other Questions
Dear Persfinners -
I really need some advice on this one. I expect in the next
several days to take new employmnet with a non-profit agency
that helps disabled individuals with vocational rehab.
The pension plan at this organization consists on a defined
benefit plan which I will be eligible to join in Mar. 99.
In order to participate, I will pay 5% of my earnings into
the plan on an after tax basis only. The plan will pay me
a monthly benefit on retirement per the following formula
.02125% x average monthly salary x years of service.
There is no other retirement plan available through the
organization. My basic question is this. What alternatives
do I have to save more than 5% toward retirement? My wife
works for a company that has no retirement plan so I am
aware that I can put $2000 fully deductible for each of us
into an IRA for 1998. Because of our income levels, normally
our IRA contributions are not deductible. We made 2000 non-deductible
contributions for each of us for 1997.
Do I have any other pre-tax or tax deferred alternatives
other than the std. IRA based on income deductibility limits.
I have read in a Vanguard retirement planning publication
that if I work for an eligible school or non-profit
organization, I may be permitted to arrange for an
individual 403B plan directly through an insurance company
or mutual fund.
Does anyone know if this is so or how I would find out for
sure? I'd like to put at least 15% on my income into
retirement savings but I'd obviously like to do it on a
pre-tax or tax deferred basis as much as possible. If I have
to I'll do it post tax but I'd hope I would have other
options.
I'd appreciate any response you could provide and the sooner
the better as I am closely reaching the date when I would
need to commit to the new employment and the retirement
options will enter into my decision.
Thanks for any help. Hope everyone had a great Thanksgiving.
Mike Morehouse
mikemore@rocketmail.com
Opelika, AL
Ephesians 2:8-9
_________________________________________________________
DO YOU YAHOO!?
Get your free @yahoo.com address at http://mail.yahoo.com
------------------------------
Date: Tue, 2 Dec 1997 09:00:07 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: IRA rollover question -- broker's fees? early redemption charges?
[Disclaimer: this is my opinion, not advice. I am not a professional.]
>It seems like a great idea (if you are making a non-deductable payment
>for an IRA in 97) to open a regular IRA account and then roll it over
>into a Roth IRA in 98.
If your AGI is less than $100,000. Otherwise you are barred from
performing the conversion. Also, if you have other IRA accounts
(especially rolled over 401(k)s), remember that a lot more of the
rollover may be taxable than you think.
>Question is how is the rollover done? Lets say you buy $1000 worth
>of stock & $1000 in a mutual fund, and don't want to change your
>investments -- you don't want to sell them -- just stay in them.
It's up to the fund companies and brokers. From what I've read,
there's nothing in the law that requires an actual cashout and
repurchase. You should simply be able to redesignate the account as a
whole or just do an account transfer. Don't be shocked if some
brokers and fund companies do require a cashout and repurchase in
order to pick up some extra $$$, though.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Tue, 2 Dec 1997 09:01:04 -0500 (EST)
From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Mortgage payment--monthly vs. biweekly?
>change my payment from monthly to biweekly (with electronic withdrawal),
>thereby reducing interest by 34K and payoff time by 6.5 yrs. and increasing
>my equity at a faster rate. Now, there is a "One-time Lifetime Enrollment
>Fee" of $295.00 and a "Participation Fee per Month" of $5.42.
>
> 1. Are these fees a normal charge for this type of plan?
I don't know know how normal they are, but I have heard of banks
and intermediaries charging fees for "converting" to a bi-weekly
mortgage. Frankly, I think it's a big rip-off. You will get almost
exactly the same effect by adding 1/12 of your regular payment to your
monthly payment and putting that against principal and there'll be no
fees (assuming your mortgage has no prepayment penalties).
> 2. Also, out of curiosity, which is more beneficial: this plan vs.
>keeping a monthly payment and paying an extra payment once a year
>strictly to principal?
Over the course the of the mortgage I'm more than willing to bet that
it's close to being a wash. Go to a loan analysis web site, or use
the loan analyzer in Quicken or Money, or the amortization worksheet
that comes with Excel to be sure.
Rich Carreiro
rlcarr@animato.pn.com
------------------------------
Date: Tue, 2 Dec 1997 09:03:14 -0500 (EST)
From: rfrego@mail.tel-net.com (Rodger Frego)
Subject: Fidelity Credit Card?
I only used it a few times, and have always paid my balance off
in the 25 day grace period. A few days ago, I received notice to
tear up this card and was issued a MBNA Platinum Plus Card in
its' place. It has a $8000 limit and many other benefits. What I
can't find in the info they sent me was anything dealing with a
"grace period". Does anyone have any information on this, or am I
correct in assuming there is no grace period on this card, and
thus have no use for it.
Cheers,
Sarge
------------------------------
Date: Tue, 2 Dec 1997 09:05:22 -0500 (EST)
From: "Jonathan B. Keough" <jkeough@loanlocator.com>
Subject: Re: Bi Weekly Mortgage - Check Out Loan Locator Website
Hi Darrell,
The Loan Locator website (http://www.loanlocator.com/) offers a
calculator that may help you in your decision. It is a Bi-weekly payment
calculator, and it is located at:
http://www.loanlocator.com/tutor/calcs/biweekly.vlc
Hope this helps in your decision making.
Jonathan Keough
------------------------------
Date: Tue, 2 Dec 1997 09:08:40 -0500 (EST)
From: CMascioli@aol.com
Subject: Old Stock Certificates?
Does anyone know of a service that will attempt to search and find the
status of a company and its stock certificates that were dated in the late
60s? I believe someone posted info regarding this recently but I have
been unable to find it. Thank you.
------------------------------
Date: Tue, 2 Dec 1997 09:09:30 -0500 (EST)
From: Rakesh Agrawal <rockya@usa.net>
Subject: Lease End Experiences - What To Do?
The lease on my car is coming to an end and I'm trying to figure out what
to do. I am interested in hearing from others who have gone through this
and what they've experienced.
Has anyone purchased their vehicle and negotiated a lower price than what
was listed in the lease contract?
Thanks.
Rocky
- --
Rakesh Agrawal (rocky@openpage.com)
------------------------------
Date: Tue, 2 Dec 1997 09:10:13 -0500 (EST)
From: varsh <varsh@concentric.net>
Subject: Re: Early Withdrawal Penalty on CD - Bank in NH Has It
>I've never come across a bank that doesn't charge a penalty for early
>withdrawal.
Neither had I, until our bank (Bank of New Hampshire) introduced
No-Catch CD. It looks like normal 6mo CD, but in addition you have a
chance to either withdraw money any moment without penalty (interest
is added monthly), or change to new interest rate (if it had risen).
You see, banks can be creative, too!
- -Boris
Dover,NH
------------------------------
Date: Tue, 2 Dec 1997 09:11:23 -0500 (EST)
From: Stephan <stephan@mail.org>
Subject: Re: claiming expired miles...
Bip lamented:
> somebody recently mentioned that american will reinstate exipired or
> expiring miles for a nominal fee. i just called american to do that
>and they said that they won't do it. ???
It was I...and I did this with American as recently as June '97; several
thousand miles back plus FedEx delivery of the tix for $40. I don't
recall how aged the expired miles were...
Stephan
- --
Useful Links for Business & Personal Success
at http://LinktoSuccess.com
------------------------------
Date: Tue, 2 Dec 1997 09:13:13 -0500 (EST)
From: "The Staeckers" <staeckers@hotmail.com>
Subject: special needs trust info
This is a request for information regarding trusts for dependent
children with special needs. We live in Massachusetts, and the answers
are probably state-specific. Can anyone give information on OBRA Trusts
or other other instruments designed for special needs situations?
Thanks,
Peter
------------------------------
Date: Tue, 2 Dec 1997 09:17:55 -0500 (EST)
From: "Jackson, Anthony D." <JacksAD1@central.SSD.JHUAPL.edu>
Subject: RE: Mortgage payment--monthly vs. biweekly? - Don't Do It
DD,
I don't think they should charge you $295.00 to enroll in this
type of plan and they definitely shouldn't be charging you $5.42 per
month to take YOUR money! Also these fees may not be deductible for tax
purposes. An alternative would be to accomplish the same results
yourself by sending in additional principal payments with your monthly
statement. You can use a business calculator, loan calculator, or other
resource to produce a amortization schedule that gives you the
additional principle necessary to achieve the desired goal (reduced
interest and early payoff).
Tony Jackson
jacksad1@jhuapl.edu
------------------------------
Date: Tue, 2 Dec 1997 09:19:11 -0500 (EST)
From: "Rodin, Barry H." <brodin@pica.army.mil>
Subject: RE: Biweekly Mortgage payment - Don't Do It
There is no reason to pay for this service or to restrict yourself to
paying extra only once a year. If you pay each month 13/12 of the
regular payment amount, you will accomplish the same thing as paying
biweekly.
For more flexibility, just pay whatever extra amount is convenient for
you each month. For example, you might want to round up to a higher
multiple of $100.
In order to avoid problems, pay the full amount in one check and be sure
to indicate that the extra amount is to be applied to principle (not
escrow). There should be some indication of this on the stub that you
send in with your check.
Barry
------------------------------
Date: Tue, 2 Dec 1997 09:22:40 -0500 (EST)
From: "Rao, Bharat" <bharat@scr.siemens.com>
Subject: RE: IRA rollover question -- broker's fees? early redemption
Maybe its bad form to answer your own question, but I got further
information. I finally got definitve information from Vanguard
that they would waive any fees associated with early redemption
if you rolled over into a Roth IRA (assuming obviously that you
stayed invested in the same funds).
I have not yet heard back from NDB (National Discount Brokers)
as yet.
Bharat
------------------------------
Date: Tue, 2 Dec 1997 09:23:44 -0500 (EST)
From: "Rao, Bharat" <bharat@scr.siemens.com>
Subject: RE: IRA rollover question -- broker's fees? early redemption
Should have waited a few minutes before sending out the last mail.
NDB (National Discount Brokers) sent me the following mail.
>From Brad Hoolahan [hoolahan@ndb.com]:
Dear Bharat,
It will simply be a matter of changing the registration. You will not
have to sell the securities and buy them back.
We still do not have the paperwork for ROTH IRAS. We expect to have them
shortly.
------------------------------
Date: Tue, 2 Dec 1997 09:24:46 -0500 (EST)
From: stockr1@juno.com (Russ Stock)
Subject: prepay mortgage vs biweekly
Darrell:
Most times, you can pay extra each month on your regular payment coupon,
and end up paying the loan off in the same timeframe (or sooner,
depending on how much extra you pay). Don't pay the extra $295 / 5.42
for nothing.
Call the customer service department for details. They should advise
;you that you can pay extra without the fees.
Russ Stock
Mortgage Banker
Stockr1@juno.com
Stockr1@aol.com
------------------------------
Date: Tue, 2 Dec 1997 09:27:07 -0500 (EST)
From: Scott Barnett <sab@crisp.net>
Subject: Don't Give More Money To Your Mortgage Company For No Good Reason
You can do what they're suggesting yourself for free. Your option 2
is essentially what they're doing. By paying twice a week, you make
26 payments of half your normal monthly mortgage - which equates to
13 months payment in 12 months.
Please don't give more money to your mortgage company for no good reason.
- --
Scott Barnett
sab@crisp.net
------------------------------
Date: Tue, 2 Dec 1997 09:28:19 -0500 (EST)
From: David Martin <dmartin@seabreeze.hc.ti.com>
Subject: Re:Mortgage payment--monthly vs. biweekly?
You can achieve the same thing simply by making extra
principal payments along with your regular payments. There should be
no fee for this. You can calculate on your own using a mortgage
caluclator or spreadsheet how much you need to add to each payment to
achieve the desired payoff acceleration. Note that there is the
additional feature that you can go back to the minimum required
payment if you have a cash crunch one month.
Electronic withdrawal is nice to have as long as it is done
correctly. However, the bank should offer this for no fee since it is
to their advantage as well.
And of course, don't make extra mortgage payments unless it is
your only remaining debt. First pay off any car loans, student loans,
credit car loans, etc. These usually have higher interest rates and
are not deductible.
Charging extra fees for changing your payment schedule is just
one more way that banks use to rip off naive consumers.
-David Martin
------------------------------
Date: Tue, 2 Dec 1997 09:29:17 -0500 (EST)
From: Jim McGrath <jimm@hi.com>
Subject: Re: Mortgage payment--monthly vs. biweekly?
I don't know whether the fees are customary, but they are surely a
ripoff.
> 2. Also, out of curiosity, which is more beneficial: this plan vs.
> keeping a monthly payment and paying an extra payment once a year
> strictly to principal?
It costs you nothing to make the extra payment vs. the fees the bank
charges for biweekly payments. A third option, and one that I use, is
to increase the monthly payment to principal such that it totals an
extra payment by the end of the year.
Jim McGrath
------------------------------
End of persfin-digest V4 #108
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