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Subject: persfin-digest V4 #113
Date: Tue, 16 Dec 1997 22:28:35 -0500 (EST)
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persfin-digest Tuesday, December 16 1997 Volume 04 : Number 113
IN THIS ISSUE:
ADVERTISEMENT: MCI CONNECT FOR CC:MAIL
Student Loan Deductability Questions
Re: gold - will price go up?
Re: Quicken
Insurance For Bone Marrow Transplant?
Re: Quicken 6 - Thumbs Down
Pub 590 Figure Needed
Re: Quicken & Business Plans
MSAs & Heath Cost Discounts
Re: resources for business plan
Re: Roth - contributions after conversion?
Re: New Tax Law - Student Loan Deduction?
RE: Treasury Direct
Roth IRA vs IRA ?
Re: Upgrading to Quicken 98
Re: Subject: gold - will price go up?
RE: RE: Tax Side of Child's Income
Re: Treasury direct
NAIC IRA Questions
Negotiated Lower Price than Lease?
how long tax deduct losses...
Past Post About Death Documents
RE: Brokerage Fees
Personal Flexible Spending Accounts
Roll over a brand new IRA?
Re: Estate plan / Probate / Wills
car dealer problem - (LONG)
Tips on renting a car?
Reply about Treasury Direct
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Date: Tue, 16 Dec 1997 21:06:50 -0500 (EST)
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------------------------------
Date: Tue, 16 Dec 1997 21:08:10 -0500 (EST)
From: "Lyle G. Miller" <lylegm@goshen.edu>
Subject: Student Loan Deductability Questions
Tony Jackson (jacksad1@jhuapl.edu) wrote:
> Anybody have a feel on with the interest on student loans being
>deductible starting 1998 will the provision be grandfathered? That
>those currently paying as long as they haven't been paying over 5 years
>will the remaining interest be deductible?
>
> Does this mean graduates should postpone payments until 1998 if
>they can? Are those that have been paying over 5 years and have more
>to go (big Med school loans) out of luck under the new provision?
There's a good site regarding the Hope Scholarship Credit, Lifetime
Learning Credit, Education IRAs, removal of the penalty for early
withdrawals from IRAs for education expenses and student loan interest
deductibility at the following site:
http://www.acenet.edu/programs/DGR/irs.html
After stating all the standard disclaimers, my read on your questions is:
Yes, it's grandparented to the extent that you're still within the first
five years.
Yes, if you can delay, you probably should, assuming that the savings in
deductibility is larger than any extra interest you might owe by waiting.
Yes, if you've already paid five years, you're out of luck.
Lyle Miller
LyleGM@Goshen.edu
------------------------------
Date: Tue, 16 Dec 1997 21:08:45 -0500 (EST)
From: "Lloyd Colston" <colston@viagrafix.com>
Subject: Re: gold - will price go up?
Well, I am contrarian about Gold AND Asia. I am in both through
Mutual funds.
Gold is at a 12-year low. It can go lower but it has been SO much
higher. The Asian mutual fund (Price New Asia) that I use is trading
below its 52-week moving average but within the last six months, it
has been within $1 of the moving average line. I see the upturn
potential there as greater than with gold over the near term.
Let me know how more I can help.
Lloyd Colston Success comes in cans, not can'ts
Pryor, OK USA social worker, writer, editor
------------------------------
Date: Tue, 16 Dec 1997 21:09:21 -0500 (EST)
From: "Lloyd Colston" <colston@viagrafix.com>
Subject: Re: Quicken
I got a newer version of Quicken last Christmas. At that time, I
told myself that I would NEVER upgrade from anything I ever have from
Intuit again until ... well I just won't.
I have been an owner of Quicken products starting with DOS 4 and now
Windows 6. I will just be happy with those.
Intuit has severe customer service problems. When you email and fax
only to get the information one can obtain online, there is nothing I
can do but move on. Phone calls are a joke.
My advice is used the Windows 6 version or below. If you need
something more, Peachtree offers a great set for business, I am told.
Let me know how more I can help.
Lloyd Colston Success comes in cans, not can'ts
Pryor, OK USA social worker, writer, editor
------------------------------
Date: Tue, 16 Dec 1997 21:10:16 -0500 (EST)
From: KATHLEEN OWENS <ACE.KOWENS@MEMO.ACEHARDWARE.COM>
Subject: Insurance For Bone Marrow Transplant?
Hi,
I have a nephew about 3 years old who has been diagnosed with a
rare genetic disorder (Marateaux-Lamy). Already he has had a bone
marrow transplant and will need more surgery down the line.
As of January 1, 1998, he will no longer have insurance because
his father (my brother in law) is an electrician and needed to put
in 1200 hours in order to keep full benefits. He only worked 980.
As a result, they will are and will be financially drained with
medical procedure and prescription costs.
Questions:
If they get insurance in the future, will my nephew condition be
considered "pre-existing"?
Other than COBRA, is there any insurance out there my nephew can
get that would be cheap?
Does anyone know of any charity organizations/foundations that I
can contact for monetary assistance with regards to his disorder?
Thanks in advance!!!
------------------------------
Date: Tue, 16 Dec 1997 21:11:11 -0500 (EST)
From: elaine steward <esslady@ix.netcom.com>
Subject: Re: Quicken 6 - Thumbs Down
>From: "George Podhiny, Jr." <georgep@chesco.com>
>Subject: Quicken 98 - I'm Not Upgrading
*snip*
Quicken 6 removed some functionality that existed in Quicken 5. In
addition, charging $45 to upgrade is costly to do every year. I will
continue with Quicken 6, unless something better comes along. Are there
other Person Finance Digest readers that have the same opinion?
- ---------
Amen! If I'd REALLY known what Quicken 6 was going to be like, I'd NEVER
have upgraded.....
elaine
------------------------------
Date: Tue, 16 Dec 1997 21:12:19 -0500 (EST)
From: dmak@tma-net.org
Subject: Pub 590 Figure Needed
Does anyone have Publication 590 handy? I'm looking for the IRS
Minimum Distribution Incidental Benfefit life-expectancy factor
(Appendix E in Pub 590) for a person who is 70 years old.
Thanks!
------------------------------
Date: Tue, 16 Dec 1997 21:51:45 -0500 (EST)
From: Stephan <stephan@mail.org>
Subject: Re: Quicken & Business Plans
Let me try to bang these two threads together:
Quicken's business services site at http://www.intuit.com/bizservices/
has planning, marketing, and financial advice and links...Quicken's
Home page at quicken.com also has a good selection of personal finance
links.
p.s. I use Q98, the only "feature" I didn't care for was forcing me to
use MSIE instead of my already installed and familiar Netscape.
Stephan Iscoe
- --
------------------------------
Date: Tue, 16 Dec 1997 21:53:23 -0500 (EST)
From: ldavis@ix.netcom.com (L R Davis)
Subject: MSAs & Heath Cost Discounts
I am very interested in getting an MSA. I have no problem with the
idea of a high deductible, as my medical insurance runs significantly
more each year than we spend. The savings from several years would pay
for a rather substantial emergency.
However, I had two questions:
Most insurance plans have substantial discounts negotiated with
healthcare providers - 30% is not uncommon. Similarly, most drugs if
part of a drug formulary are part of a rather modest per member per
month fee.
Does someone paying for healthcare services out of their MSA account
have ANY way to access these kinds of discounts, or must we pay RETAIL?
Question #2:
Can I set up the MSA and high deductible insurance for my wife and
myself, and have my kids on a normal HMO plan? They are the big users
of healthcare services on a regular basis, and the HMO insurance is
very inexpensive for them.
THANKS!
Lynn Davis
Fremont, California
------------------------------
Date: Tue, 16 Dec 1997 21:54:00 -0500 (EST)
From: Scribler <scribler@geocities.com>
Subject: Re: resources for business plan
> From: Lloyd Colston <colston@viagrafix.com>
>
> [ ... ]
> MasterCard has a free book, "The Small Business Financial Resource
> Guide". Contact them at http://www.mastercard.com or phone 914 249
> 2000 or 800 727 8825. Their postal address is 2000 Purchase Street,
> Purchase, NY 10577-2509.
I called the 800 number and was directed to a publishing company
who apologized for not being able to "sell" the book to me
or simply "give" it to me. However, one of their buyers is
US Chamber of Commerce whome I called at (202) 463-5503.
The guy was very helpful, took my name and address and mentioned
a few other publication that I could use and he is mailing them to me.
------------------------------
Date: Tue, 16 Dec 1997 21:54:58 -0500 (EST)
From: Shankar.Prasad@Eng.Sun.COM (Shankar Prasad)
Subject: Re: Roth - contributions after conversion?
> I was recently (mis?)informed by a rep for a large mutual fund
> company that after converting regular IRA A to Roth IRA B, I
> would no longer be able to contribute to IRA B, although I would
> be able to open a new Roth IRA C and make contributions to it.
>
> Truth or fiction? Being the paranoid, er, cautious type, I'm
> inclined to think it's just an excuse to collect another yearly
> maintenance fee...
I would agree with what the rep. told you. i.e. keep separate
"Roth Conversion IRA" accounts for conversions in different
tax years (multiple conversions done in the same year can
probably be kept in the same Roth-Conversion account). Also,
make regular contributions to a separate Roth-Contributory
Account. I believe the rep. was incorrect in saying that
you "cannot" make contributions to a Conversion a/c, just
that it is a good idea to avoid doing so.
For reasons, please look at the penalties which the Technical
Corrections Bill (HR 2645) imposes (this is not yet law, but
expected to become so). In particular see (b)(3)(B) &
(b)(3)(C) & (b)(4)(F)
- --
Regards
Shankar Prasad
sprasad@eng.sun.com
------------------------------
Date: Tue, 16 Dec 1997 21:56:03 -0500 (EST)
From: Jon King <kingjo@CS.ORST.EDU>
Subject: Re: New Tax Law - Student Loan Deduction?
> From: "Jackson, Anthony D." <JacksAD1@central.SSD.JHUAPL.edu>
>
> Anybody have a feel on with the interest on student loans being
> deductible starting 1998 will the provision be grandfathered? That
> those currently paying as long as they haven't been paying over 5 years
> will the remaining interest be deductible?
>From a quick look, it doesn't appear to make any difference whether or not
you are already paying, just whether or not you're within the first 60
months of repayment.
> Does this mean graduates should postpone payments until 1998 if
> they can? Are those that have been paying over 5 years and have more
> to go (big Med school loans) out of luck under the new provision?
Yes, I think they're just out of luck. And along these lines, I just have
to put in a little bit of a rant. This provision does NOTHING to help
people who are ambitious and go to college to LEARN a skill and gain a
career. Particularly for married couples who are both professionals. The
deductibility phases out from $40-55k for singles and from $60-75k for a
married couple. If you have two reasonable incomes, you're screwed. As
far as I'm concerned, this bill just validates all those people who were
majoring in God Knows What and who had no plan for after graduation. As
someone who has just completed undergrad & grad school (with NO help from
parents, and a relatively high debt load), I was at first excited to hear
that they were going to institute such a provision. A first read
immediately depressed me, however. In your case, what doctor (out of
internship) isn't going to make more than $55k per year? In my case,
what engineer (MS) isn't going to do the same?
Useless, it's just useless. Guess that's enough of that. ;)
Jon
------------------------------
Date: Tue, 16 Dec 1997 21:58:34 -0500 (EST)
From: HLO2-1/H12 225-4218 <horton@pasta.ENET.dec.com>
Subject: RE: Treasury Direct
>From: GeorgeS <pip@shore.net>
>I'm interested in buying non-competitive bid Treasury direct 5 year 10K
>note. Currently, I've got the money buried in a Fidelity cash Reserve
>account.
George, one may buy 5-year notes for a minimum of $1000 and in $1000 increments.
Since this is rainy day money, you might want to spread your $10k annual
investment over several offerings, say, $2k in Jan, Mar, Jun, Aug, Nov. This
way you're never more than a couple of months away from a couple grand.
Disadvantage: you'll have more transactions to track.
> Exclusion from local state take (~6% in MA) is of some interest to me.
Sorry, but the income tax rate on interest and dividends in the
People's Republic of Massachusetts is 12 percent.
>This money is money I do not want in stocks, it is the money I'd need for
>short term expenses if I was laid off. I do not expect to be laid off, but I
>do want some money in a secure account. My understanding is you can
>transfer the note out of Treasury direct and into a broker account for sale
>if you need to cash in early.
The Treasury Direct program now lets account holders sell some or all of
their holdings on the open market through the Federal Reserve Bank of
Chicago. All you have to do is send your local office a form authorizing
the sale; a couple of days later FRB of Chi. obtains three dealer quotes on
your issue(s) and sells at the best quote (flat $34 fee for each issue traded).
Proceeds show up in your bank account a day or two later.
>
>One item of interest is the direct deposit/direct withdrawal feature on the
>treasury direct form. I'd like to shunt the money in and out (automatic
>withdrawal for buying the note(s), automatic deposit for receiving the
>interest) of the FCR account directly. T notes, unlike T bills, pay
>interest each year. I know I can do this from/to a bank account, but, I'd
>rather not store my $ in a bank. Fidelity is no help here. I called the help
>line, and neither the agent, nor the supervisor was familiar with Treasury
>direct, nor could they give me an unequivocal answer as to whether or not
>they would respect the authorized withdrawal form submitted to the Treasury
>direct bank.
George, I too would rather have my TD funds go to/from a money market fund
account, a credit union, or some other non-bank account. Unfortunately
the U.S. Treasury doesn't do such transfers. Each time I get an interest
payment to my commercial bank I transfer the amount over to my MMA or CU.
It's a pain, but it works.
>
>Can anyone discuss the pros/cons of the treasury direct program, as opposed
>to say, Fidelity Spartan Government Income, which has, roughly, the same
>duration and yield as 5 year treasuries. My understanding is that Spartan
>Gov Income invests in US agency instruments, and that it is subject to State
>tax.The other point is that the Spartan Yield varies, whereas the T note
>yield, once purchased, is fixed for the duration of the note.
And having a known, fixed return is a comfort, enough to make the extra
paperwork worthwhile.
>
>My goal, such as it is, is to buy 10K note per year, reinvesting when they
>are due, until I have about 100K set aside. At current rates, this would
>yield about 5.76%.
>
------------------------------
Date: Tue, 16 Dec 1997 21:59:47 -0500 (EST)
From: "schong" <schong@planetall.com>
Subject: Roth IRA vs IRA ?
Can anyone explain the difference between the new Roth IRA and the regular
IRA?
Thank You
Steve
------------------------------
Date: Tue, 16 Dec 1997 22:00:40 -0500 (EST)
From: "Mike Stefani" <mike-stefani@orgella.com>
Subject: Re: Upgrading to Quicken 98
> From: "George Podhiny, Jr." <georgep@chesco.com>
>
> I have used Quicken since 1990. My version is Quicken 6, and I will not
be upgrading to Quicken 98. The folks at Intuit are running > out of ways
to enhance the product. Quicken 6 removed some functionality that existed
in Quicken 5. In addition, charging $45 to > upgrade is costly to do
every year. I will continue with Quicken 6, unless something better comes
along. Are there other Person > Finance Digest readers that have the same
opinion?
I'm going to wait and see. I'm also see no compelling reason to upgrade
yet, except the possibility of losing access to the automatic portfolio
update feature. I remember reading that Intuit only promised to support
that for 1 year when I upgraded to version 6- but I can't remember if that
was for free access to the 'net via Intuit, or also for those who have
their own ISP. If I do get forced to upgrade to maintain this, then
Quicken Basic (now selling for $17 to $19 retail net of rebate vs. $45 for
Deluxe) is probably good enough for me.
Regards,
Mike Stefani
------------------------------
Date: Tue, 16 Dec 1997 22:01:15 -0500 (EST)
From: "Ken Meinken" <kmeinken@one.net>
Subject: Re: Subject: gold - will price go up?
> From: "Mangiero, Susan" <MangieroS@sacredheart.edu>
>
> Any contrarians who think gold prices might go up? If so, please
> elaborate. Thanks. Susan M. Mangiero
>
Sure the price will go up...someday. But how much will it go down
before then, and how much will it go up?
A lot of people have believed in gold because "it has intrinsic
value". But what _real_ value does it have? It's only value is
determined by supply and demand, no different than a US dollar. It
appears that government banks are re-evaluating the value of holding
gold. As they decide it's not worth it, the value, and the demand
goes down.
The only essential need is for jewlery, electronic components, etc.
Beyond that, it's pure speculation.
IMO, gold has no more intrinsic value than iron or coal or oil.
Beyond that, it's all hype. (Oh there can be great value in hype, be
it in gold, or oil...)
Ken
kmeinken@one.net
------------------------------
Date: Tue, 16 Dec 1997 22:03:11 -0500 (EST)
From: "L. Chen" <am302@FreeNet.Buffalo.EDU>
Subject: RE: RE: Tax Side of Child's Income
> From: Steve Foulks <steve_foulks@up.bresnan.net>
> Subject: Re:Tax Side of Child's Income
>
> If I only made $900 and was 16 I probably wouldn't contribute to an IRA.
> Why don't you make her a gift of a contribution? Maybe not tell her, and
> sometime later in life surprise her with the good news. I do that for my
> kids. Actually I started contributing to an IRA fro them a few years ago
> and contributed an amount equal to their allowance, since they have to work
> to get it. When you start an IRA for an 8 year old, and maybe continue
> through college, it won't take much money, or effort on their part to
> prepare for retirement.
What work do they do -- Work around the house or other work? If household
chores, would it stand up on IRS audit?
Chen
------------------------------
Date: Tue, 16 Dec 1997 22:09:20 -0500 (EST)
From: "L. Chen" <am302@FreeNet.Buffalo.EDU>
Subject: Re: Treasury direct
> [.......................]
> This money is money I do not want in stocks, it is the money I'd need for
> short term expenses if I was laid off. I do not expect to be laid off, but I
> do want some money in a secure account. My understanding is you can
> transfer the note out of Treasury direct and into a broker account for sale
> if you need to cash in early.
The market value at time of sale may be more or less than your purchase price.
> One item of interest is the direct deposit/direct withdrawal feature on the
> treasury direct form. I'd like to shunt the money in and out (automatic
> withdrawal for buying the note(s), automatic deposit for receiving the
> interest) of the FCR account directly. T notes, unlike T bills, pay
> interest each year. I know I can do this from/to a bank account, but, I'd
> rather not store my $ in a bank. Fidelity is no help here. I called the help
> [...............]
Treasury Direct has an email contact (for answering questions) on their web
page. They told me last summer that they can't do that -- only bank accounts,
no mutual funds.
> Can anyone discuss the pros/cons of the treasury direct program, as opposed
> to say, Fidelity Spartan Government Income, which has, roughly, the same
> duration and yield as 5 year treasuries. My understanding is that Spartan
> Gov Income invests in US agency instruments, and that it is subject to State
> tax.The other point is that the Spartan Yield varies, whereas the T note
> yield, once purchased, is fixed for the duration of the note.
Janus told me that income from their Gov't Agency fund is exempt from State
taxes. And she gave me that info. after checking. Did they gave me wrong
information?
T note yield is fixed (once purchased) -- as long as you hold it to maturity.
>
Chen
------------------------------
Date: Tue, 16 Dec 1997 22:11:00 -0500 (EST)
From: Paul Apollo <apollo@ime.net>
Subject: NAIC IRA Questions
Hello!
Does anyone have any experience using the NAIC-sponsored IRA plan run by
First Trust (it's called the Value Plus IRA)? I'm considering
consolidating my DRIP IRAs into one plan, and on its face this plan
looks promising. But, I have some issues I want to resolve before
committing to this plan, and would appreciate tapping anyone's
experience.
First, I can roll over any DRIP IRAs I have going now. Also, I can
start accumulating stock in companies that allow NAIC members to
purchase their first share through the NAIC plan. In both cases I can
purchase additional shares ( or fractions) through the DRIP plans,
bypassing their broker. However, I am unclear as to whether I can
invest using non-NAIC plan DRIPs, or would be forced to use First
Trust's brokerage service to purchase all my shares. For example, I
want to add Gillette to my IRA holdings. Gillette has a DRIP, but it is
not on the NAIC list. After I purchase my first Gillette share (using
First Trust's broker), would I then be able to use Gillette's DRIP to
purchase additional shares, or would I have to use the First Trust
brokerage service for each subsequent purchase?
Next question: I am in a 401K plan where I work. I have no plans to
leave either my job or the plan anytime soon. However, I have only 4
choices for investments, and two are fixed-rate choices. Also, the fees
I am charged are quite onerous. Can I remove my contributions (not my
employer's match) from my 401K (say, every 6 months) and have them
directly transferred to the First Trust IRA, thereby having more contol
over how my money is invested? Or is this not allowed until I leave the
company? If it's not allowed, would that be due to an IRS regulation or
a plan policy?
Third question: I have some $$ in a 401K from a previous employer. I
don't want to roll it into my present 401K, for the above mentioned
reasons. If I roll it into my proposed First Trust IRA, will that
rolled-over money count towards my $2000 yearly IRA contribution limit?
I don't want a separate rollover IRA - the money would be rolled into
and comingled with my present IRA money. (A separate rollover IRA means
another $35 yearly fee, which I'm trying to avoid!!)
Paul
------------------------------
Date: Tue, 16 Dec 1997 22:13:15 -0500 (EST)
From: wdstancil@juno.com
Subject: Negotiated Lower Price than Lease?
>Has anyone purchased their vehicle and negotiated a lower price than what
>was listed in the lease contract?
Look up the wholesale price online. Your negotiating room is between
that price and the lease contract price. www.edmunds.com for prices, any
other URLs people like?
------------------------------
Date: Tue, 16 Dec 1997 22:13:53 -0500 (EST)
From: cazlo <cazlo@yahoo.com>
Subject: how long tax deduct losses...
Hi.
I had a business in N.Y. that had to close up 2 years ago, 1995. I
had a substantial loss as a partner of the business.
My question is now that I am down in Florida (from NY), can I still
use the loss towards deductions for this years taxes, 1997?. I did not
come close to having the amount I showed as a loss on the 1995 return,
being deducted from my income since then. If so, how long can I keep
carrying it, and how do I go about filing it?
Do I just include a copy of the schedule E form from 1995 that
showed the loss, along with this year's tax forms?
Thanks for any insight you may have....
Cazlo
------------------------------
Date: Tue, 16 Dec 1997 22:15:24 -0500 (EST)
From: dollymadis@megsinet.net
Subject: Past Post About Death Documents
Recently there was a series of posts with regard to what steps need to
taken in the event of someone's death. At the time of these posts I didn't
have the pressing need for this information but with the sudden death of my
father-in-law I now would like to review this information in depth.I would
very much appreciate it if someone could e-mail me personally a copy of
this information.
Thank You,
Tom Gilbertson
dollymadis@megsinet.net
------------------------------
Date: Tue, 16 Dec 1997 22:17:54 -0500 (EST)
From: "Stanley E. Cahn" <stockman@mtolympus.ari.net>
Subject: RE: Brokerage Fees
From: APRESTON@server.vcccd.cc.ca.us
Subject: jerry conley's question about brokerage fees
jerry conley wondered why anyone would have mutual fund transactions
through a broker. he asked what he said may seem to be a silly
question: "is there some advantage to trading (mutual funds) through a
broker?"
no. the minute you give a broker 3, 4, 5 or 8% you have lost the
opportunity to make ANY money on the amount you just gave away. it is
gone forever. why on EARTH would anyone do that?
(Editor's Comment - The worst are the in-house mutual funds from brokers
like Merrill Lynch. They lock you in with front end and back end loads.
- -IK)
Why pay a broker to buy mutual funds
Answer: To get good reliable advice!
Ira's comment is not accurate, and poor advice. Many funds including
ML's have charges of different types. If you wish to pay upfront - You
buy "A" Shares. You can also buy "B" Shares which entail a penalty if
you sell your sales early.
However the buyer does not, Does not, have to pay twice, as Ira seems to
think.
That error is a good reason, why the average do it yourself investor
does not do as well as they think they do.
In investing as in Law, Doing it yourself means you have a fool for a
client.
------------------------------
Date: Tue, 16 Dec 1997 22:18:35 -0500 (EST)
From: "Dill, Mary" <mdill@jhancock.com>
Subject: Personal Flexible Spending Accounts
Hi -
My brother is self-employed and facing a large medical bill his
insurance will not cover. Is it possible to set up an account similair
to the ones made available by large corporations?
Thanks in Advance.
------------------------------
Date: Tue, 16 Dec 1997 22:21:57 -0500 (EST)
From: drstone@gsvms2.cc.gasou.edu
Subject: Roll over a brand new IRA?
Happy holidays to all pers-finers:
I have never had an IRA, although I've participated in a
tax-deferred 403(b) plan for many years. The Roth IRA is appealing because
it seems to be simple -- no tax owed when the money is taken out.
Do I have this figured correctly: if I open a $2000 non-deductible
IRA for 1997, then in early 1998 roll it over into a Roth IRA, then tax
would be due only on the small accumulation? And I could then add in
another $2000 for my 1998 contribution?
Alternatively, my 1997 IRA could be initiated in 1998 (prior to
April 15). So could I simply begin with $4000 in early 1998 -- all in one
transaction, with no tax owed?
Thanks for your help.
David
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
David R. Stone Office Phone: 912-681-5335
Department of Mathematics and CS Office Fax: 912-681-0654
Georgia Southern University drstone@gsvms2.cc.gasou.edu
Statesboro GA 30460-8093 Home Phone: 912-681-4048
"It is as absurd to argue men, as to torture them, into believing."
Cardinal Newman
------------------------------
Date: Tue, 16 Dec 1997 22:22:24 -0500 (EST)
From: MONYMANN <MONYMANN@aol.com>
Subject: Re: Estate plan / Probate / Wills
In response to your question about your mother and estate taxes, there are
many trusts that will allow your mother to maintain the rights to part of her
assets and still reduce her estate. Do some research on Private Foundations
and Private Annuity Trusts. The latter of these would generate a lifetime
income for your mother that includes the principle as well as the interest.
(Unlike a Charitable Remainder Trust) If you contact a good estate planner in
your area, he/she should be able to give you some direction.
Probate is a process by which the courts determine new ownership of assets
when the previous owner is no longer alive. If in an estate, there are assets
that have a title or deed, the probate process is needed to determine who the
new owner will be. A will is simply a petition to the court directing the
disbursment of those assets. It does not avoid the process.
Probate is a public process and a will becomes a public document that any
citizen has the right too.
Kevin D. Bowler
Certified Estate Planning Advisor
Registered Principle
------------------------------
Date: Tue, 16 Dec 1997 22:23:04 -0500 (EST)
From: JBednarzyk <JBednarzyk@aol.com>
Subject: car dealer problem - (LONG)
Hi,
I'm writing this for a friend without net access. She purchased a new Ford
pickup about 6 weeks ago. After signing an initial document on a Saturday,
she went back and signed a purchase contract for the same amount the following
Monday evening. This contract had been reviewed by the sales mgr and business
mgr.
A few days later, she was contacted by the salesperson saying that there was a
mistake in the contract and could she come in again so they could revise it.
She asked what the problem was and how would it effect her monthly pmts. He
said he'd get back to her and never did.
She went through all her papers with a fine tooth comb, and discovered that
they had applied 2 of the rebates twice. In other words, they took the amount
listed in the newspaper ad in big bold print and used that as the starting
point rather than the end point. However, no one called her back that week.
The manager called her back and asked why she hadn't come in. She again asked
what the problem was and how it would effect her pmts. Still no solid
answer.... Now, if they had worked with her, she would have come in and re-
signed if they had given her a lower interest rate so that her pmts would stay
the same. She argued with the sales mgr and later rec'd a call from one of
the owners.
He started off in a polite manner, but things rapidly went downhill. He said
that if she didn't come in, the salesman would be fired, trying to play on her
emotions. She informed him that she thought he was upset because they got
burned in their own game of confusion. This enraged him and he called her a
scam artist.
Now, my friend has never owned a new vehicle, but nonetheless is relatively
sophisticated consumer. But she did not intentionally set out to cheat
anyone. She was there 3 hours on Saturday, and 3 hours on Monday, and since
she is a single mother, she had both of her small children with her. The
owner then threatened to send a tow truck out that night and take back the
car, and return hers. With a signed contract?!? He later said that the
didn't get as much money on her car when they sold it as they had given her
for an allowance for trade-in. So obviously, they no longer had the car and
couldn't swap it out.
Early last week, he called and threatened to bring in lawyers. On Friday, he
he called again and left a nasty message. They have not submitted the
paperwork to the financing company nor to the state. We've figured that they
may have lost up to $1000 on the deal, although they claim to be a 2k error.
The dealer said that if they had made a $2K error that benefitted them, they
would have returned the money to her. (We had a good laugh with that one.)
How do we get them to stop harassing her? They have no legal recourse, true?
IMHO, a contract is a contract, and it went through many hands prior to her
signing it. She called Ford and they said that it was between her and the
dealer..... A lawyer could be an option, but again, she's a single mother
with very little spare cash.
Any opinions would be appreciated.....
Thanks,
Juli Bednarzyk
JBednarzyk@aol.com
------------------------------
Date: Tue, 16 Dec 1997 22:23:48 -0500 (EST)
From: bh314@scn.org (SCN User)
Subject: Tips on renting a car?
I'm thinking about renting a car to travel
from Seattle to San Francisco.
I've never rented a car before, so I'm
wondering if anyone has any tips and advice
on getting the best rental rate, recommendations
for rental companies, things to watch out for, etc.
I was going to fly, but someone told me that it
might be possible to rent a car for less than
the airline fare. Since I like driving, I might
try it--
Comments and advice appreciated--
Thanks in advance--
bh314@scn.org
------------------------------
Date: Tue, 16 Dec 1997 22:24:55 -0500 (EST)
From: HLO2-1/H12 225-4218 <horton@pasta.enet.dec.com>
Subject: Reply about Treasury Direct
George, one may buy 5-year notes for a minimum of $1000 and in $1000 increments.
Since this is rainy day money, you might want to spread your $10k annual
investment over several offerings, say, $2k in Jan, Mar, Jun, Aug, Nov. This
way you're never more than a couple of months away from a couple grand.
Disadvantage: you'll have more transactions to track.
>Exclusion from local state take (~6% in MA) is of some interest to me.
Income tax rate on interest and dividends in the People's Republic of
Massachusetts is 12 percent, so the exemption is even better than you
thought!
>This money is money I do not want in stocks, it is the money I'd need for
>short term expenses if I was laid off. I do not expect to be laid off, but I
>do want some money in a secure account. My understanding is you can
>transfer the note out of Treasury direct and into a broker account for sale
>if you need to cash in early.
The Treasury Direct program now lets account holders sell some or all of
their holdings on the open market through the Federal Reserve Bank of
Chicago. All you need do is send your local office a form authorizing
the sale; a couple of days later FRB of Chicago obtains three dealer quotes on
your issue(s) and sells at the best quote (flat $34 fee for each issue traded).
Proceeds show up in your bank account a day or two later.
>One item of interest is the direct deposit/direct withdrawal feature on the
>treasury direct form. I'd like to shunt the money in and out (automatic
>withdrawal for buying the note(s), automatic deposit for receiving the
>interest) of the FCR account directly. T notes, unlike T bills, pay
>interest each year. I know I can do this from/to a bank account, but, I'd
>rather not store my $ in a bank. Fidelity is no help here. I called the help
>line, and neither the agent, nor the supervisor was familiar with Treasury
>direct, nor could they give me an unequivocal answer as to whether or not
>they would respect the authorized withdrawal form submitted to the Treasury
>direct bank.
George, I too would rather have my TD funds go to/from a money market fund
account, a credit union, or some other non-bank account. Unfortunately
the U.S. Treasury doesn't do such transfers. Each time I get an interest
payment to my commercial bank I transfer the amount over to my MMA or CU.
It's a bother, but it works.
>Can anyone discuss the pros/cons of the treasury direct program, as opposed
>to say, Fidelity Spartan Government Income, which has, roughly, the same
>duration and yield as 5 year treasuries. My understanding is that Spartan
>Gov Income invests in US agency instruments, and that it is subject to State
>tax.The other point is that the Spartan Yield varies, whereas the T note
>yield, once purchased, is fixed for the duration of the note.
For some people having a known, fixed return is a comfort, enough to make
the extra paperwork worthwhile.
>My goal, such as it is, is to buy 10K note per year, reinvesting when they
>are due, until I have about 100K set aside. At current rates, this would
>yield about 5.76%.
But $100K in cash is an awfully big rainy day fund. I think you'd do
better by investing at least a portion of this in blue chip stocks. Keep
enough in cash to support you through year or two of lost income, but let
the rest grow with the economy.
- -Jerry
------------------------------
End of persfin-digest V4 #113
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