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Subject: persfin-digest V4 #143
Date: Wed, 1 Apr 1998 19:57:51 -0500 (EST)
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persfin-digest Wednesday, April 1 1998 Volume 04 : Number 143
IN THIS ISSUE:
Re: Lipper Index?
Re: MCI charges
RE: Tax question and emergency cash question
ADVERTISEMENT: MCI FAX REPLY SERVICE
How to increase the FICO score?
Tax on Foreigners For Dividends and Capital Gains?
Letter to MCI re:National Access Fee
MCI response to National Access Fee inquiry
Good Book on Financial Statement Analysis
bankruptcy
re: Mac decompression
Re: emergency cash question
Re: Taipan
IRA conversion question
Long- term care insurance?
====================================================================
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Date: Tue, 31 Mar 1998 20:50:08 -0500 (EST)
From: Steven Klein <SKLEIN@snm.org>
Subject: Re: Lipper Index?
Lipper index is WSJ
The Lipper index that prints everyday in the WSJ for mutual funds- are
the numbers in the WSJ an average for each class of fund or are they
the highest return for each type of fund?
sklein
------------------------------
Date: Tue, 31 Mar 1998 22:32:30 -0500 (EST)
From: Steve Brodeur <sjbrodeur@alum.mit.edu>
Subject: Re: MCI charges
>rpalma@msai.mea.com (Peter Palma) wrote:
>Subject: More fun and games from MCI internet offer
>
>
>There's also a fee on the bill for $1.07 that's a fee MCI charges
>because the local phone company charges them to gain access to the local
>lines. MCI says they've been passing this charge to the customer since
>January.
>
>Does MCI add this charge for customers who get billed through the
>local phone bill?
>
Peter-
This is a new charge that they charge everybody, even people billed through
the local phone company. And it is true that this is a new fee they pay to
the local telephone companies as mandated by the FCC. HOWEVER, the $1.07
they collect translates to only a $0.53 payment (or less) to the local
provider! Source:
Fact Sheet: The FCC's Interstate Access Charge System
http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/access2.html
"In 1998, the maximum Presubscribed Interexchange Carrier Charge per line
per month for primary residential lines and single-line business lines is
$.53."
Furthermore, this "new fee" was implemented in conjunction with a reduced
"per minute" fee. So MCI is profiting _TWICE_ from this "FCC fee"!
>I don't remember seeing this charge when I was using AT&T.
>Is AT&T doing this as well, now?
>
I switched to ATT after complaining to several layers of MCI customer
service. I told MCI in no uncertain terms how furious I was at their double
dipping profits, at the expense of the gullible government averse consumer,
and blaming the FCC all the way to the bank.
I don't know (yet) how ATT has handled the new fee structure. We'll see if
they lie and mislead the way MCI does!!
>There's no email address listed at the web site to send questions
>or complaints.
>
There are additional toll free phone numbers. But they lead you to reps.
who are simply better coached than the average reps. The MCI "company line"
is that you should call the FCC and the public utilities- it's all their
fault. I feel that MCI is actively misleading and campaigning to get the
consumer angry at the government, possibly to build pressure to lobby
changes in the structure, while MCI gouges the consumer and makes a wind
fall profit to boot!!
I'll go home and post a copy of the letter I sent as well.
>
>I did finally find an email address for them and sent them a several
>page letter telling them exactly what I've thought of their
>"service" so far. I haven't received a reply yet.
>
You'll probably get the same form letter that I did. I'll try to scan it
and post that as well, so everybody can judge for themselves what MCI is up
to. Basically, it repeats the same story without explaining the difference
in the charges vs. fee structure.
>I haven't decided whether they are incompetent or intentionally
>trying to take advantage of people.
>
My opinion, in case you haven't guessed, is that it's very intentional. And
profitable, unless enough people get upset and leave.
- -Steve Brodeur (x2496)
------------------------------
Date: Tue, 31 Mar 1998 22:45:55 -0500 (EST)
From: "Porter, Jim R" <jrporter@switch.com>
Subject: RE: Tax question and emergency cash question
>Being a Nervous Nellie, with a slight case of the bag-lady syndrome, my
>main goal is to have 6-12 months of mortgage pmts put aside so that no
>matter what, I won't risk losing my house should the employment market
>take a nose dive.
>I was leaning towards keeping it in my money market, but what would the
>pros and cons be of making additional coupon pmts instead? So rather
than
>sending in 1 pmt in a month, I'd send in a payment every two - three
weeks
>until I was paid ahead by 6-12 months. Again - it's not so much a
>reduction in principal I'm concerned with but a hedge against
unemployment
>- - mortgage pmt stress.
Paying extra on your mortgage will obviously reduce the principal amount
you owe, but the mortgage company will still want a payment from you
every month. You will not be able to skip monthly payments, so for what
you are trying to accomplish (hedge against unemployment) it would be
better to keep the money in a money market fund.
------------------------------
Date: Wed, 1 Apr 1998 19:36:51 -0500 (EST)
From: Oppenheimer Software <Connect-Sales@mcimail.com>
Subject: ADVERTISEMENT: MCI FAX REPLY SERVICE
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Tel:800-390-9379 E-Mail:Connect-Sales@mcimail.com
Fax:800-492-6862
------------------------------
Date: Wed, 1 Apr 1998 19:48:29 -0500 (EST)
From: The Editor <ikrakow@shore.net>
Subject: How to increase the FICO score?
I've been doing some research on mortgages, and discovered that there's
an automated creditworthiness scoring system called "FICO" (First Isaac
somethingorother). It's basically a compter program with some artificial
intelligence built in to perceive patterns of credit use and then score
you using the data in the credit bureaus (Equifax, Experian, or TRW).
The result of my research is a page of links to mortgage information Web
sites, at:
http://pfinance.miningco.com/msub61.htm
Two of the links deal with FICO. One, from Freddie Mac, seems to be a
puff piece that defends this automated scoring system, but in there they
explain the components of the FICO score. I think Freddie Mac has some
financial interest in FICO, similar to the College Board's interest in
the SAT exams.
The other, from Bayhouse, is decidedly negative on the whole program. One
example - each time you apply for a credit card, your FICO score
decreases, even though you may want to apply for many credit cards to get
the best interest rate or the highest rebate.
So my question is - before you apply for a mortgage (1st or 2nd), what
strategy should you use to enhance your FICO score? Everyone knows if you
take an SAT prep course you'll do better on the SAT (in spite of what the
College Board says). Any tips on doing better on the FICO?
This strategy could save a lot of money because if your FICO score is
lower than it could be, you might get the loan but be forced to pay a
higher rate (another item the BayHouse article mentioned). Also, the SEC
has ruled that your FICO score is confidential information.
So I encourage you to read my article, the articles I link to, and to
respond either to the Digest or on our bulletin board at:
http://pfinance.miningco.com/mpboards.htm
or both.
Ira
------------------------------
Date: Wed, 1 Apr 1998 19:49:38 -0500 (EST)
From: Zain Shammas <SHAMMAS.ZAIN@ntrs.com>
Subject: Tax on Foreigners For Dividends and Capital Gains?
Can someone please advise on taxation of non-US citizens in respect of
Stock/fund dividends and capital gains (and money market funds).
Example, foreigner invests in mutual fund. Mutual fund pays out a dividend
and capital gains of $1.00 per share. The fund withholds 30% of the $1.00
for tax purposes. A W-8 is already on file.
Is there a way to reclaim this 30% or part thereof? Is there a form to
complete and submit to the IRS? How is this done?
Please advise and thanks, Zain
------------------------------
Date: Wed, 1 Apr 1998 19:50:52 -0500 (EST)
From: SJBrodeur <SJBrodeur@aol.com>
Subject: Letter to MCI re:National Access Fee
If anyone is interested, here is the letter I drafted to MCI to inquire about
their National Access Fee policy. Please keep in mind that this letter is my
opinion only, based upon information cited from the FCC consumer site and
conversations with MCI representatives. You should make your own judgments
about the truth of the statements and follow up with your own research.
February 24, 1998
MCI Consumer Relations
1925 Boyrum Street
Iowa City, IA 52240
Dear MCI,
I am writing to inform you of my decision to switch long distance carriers as
a result of your policy decisions regarding the "National Access Fee", and the
misleading approach you have adopted to sell your policy to subscribers. I am
sending a copy of this to your fax number to provide you with an opportunity
to respond in a timely manner. I participate in a number of consumer
discussion groups on the internet. I intend to share the results of my
research and inquiries with these groups so that they may make their own
informed decisions about long distance carriers.
I noticed the charge on my January MCI statement, along with the explanatory
note provided by MCI. I wanted more specific information about the new
regulation, so on February 16, 1998, I spoke with Amy at the customer service
number. Amy could not provide any more information other than to parrot back
the statement on the MCI invoice. She recommended that I contact the "Public
Utilities Commission". She did not know whether this would be a state or
federal organization.
Since MCI identified the fee as a "National Access Fee", and since MCI claimed
that the fee is the result of an FCC requirement, I decided to contact the FCC
to get the information that MCI was unable to provide. I found information
about the FCC's Interstate Access Charge System on their consumer information
web page on the internet
(http://www.fcc.gov/Bureaus/Common_Carrier/Factsheets/access2.html). After
reading the FCC fact sheet, I still had some questions.
On February 21, I called the customer service number and spoke to Robert. I
told him that I needed more information about the "National Access Fee" and
wished to speak to a supervisor. Robert told me that nobody could help me, but
I could call the MCI Premier Financial Service line during regular business
hours. So, I called on February 23, 1998 and spoke to Reggie. I asked Reggie
why MCI is charging me $1.07 a month when the FCC fact sheet says, "In 1998,
the maximum Presubscribed Interexchange Carrier Charge per line per month for
primary residential lines and single-line business lines is $.53"? Reggie said
that the fee varies between states. I found this hard to believe, since the
FCC is a Federal Communications Commission, since this is a "National Access
Fee", and since neither MCI nor the FCC mentions a state fee in their
descriptions. Reggie then recommended that I complain to the FCC and local
public utility commissions. I told Reggie that I wanted to inform MCI that I
was switching because they were charging me $1.07 a month for a $0.53 fee. He
recommended that I contact this address.
I am still interested in learning why MCI billed me $1.07 a month for a fee
that the FCC claims is no more than $0.53 a month. And I would be interested
in learning why MCI did not mention the new per-minute rate reductions enacted
at the same time as these flat monthly fees (according to the FCC fact sheet),
which MCI has apparently NOT chosen to pass along to each usage customer.
As I said before, I will be sharing this information with a variety of
consumer groups, and I welcome a response from MCI.
Respectfully,
Stephen J. Brodeur
5 Loker Lane
Woburn, MA 01801-2670
SJBrodeur@aol.com
------------------------------
Date: Wed, 1 Apr 1998 19:51:33 -0500 (EST)
From: SJBrodeur <SJBrodeur@aol.com>
Subject: MCI response to National Access Fee inquiry
Since I do not have a scanner available, I have typed in the text of the
response I received from MCI. If there are formatting errors or typos, I
apologize in advance. I wanted to be fair and present the MCI response in
the same issue that my inquiry is posted.
March 11, 1998
Dear Stephen J. Brodeur:
Thank you for your recent inquiry about the new National Access Fee
appearing on your MCI invoice. The following information is intended to
provide you with a clear understanding of this new charge.
The FCC requires all long distance companies to pay a fee to the local phone
companies for originating and terminating your long distance calls. Effective
with January 1998 invoices, MCI will begin assessing a charge labeled
"National Access Fee" to residential customers as a flat, recurring invoice
charge. MCI has decided to itemize this charge on your bill so there will be
no impact to the low per minute rates you currently enjoy with MCI.
Every month you will be assessed a National Access Fee of $1.07 for each
account you have with MCI, regardless of the number of telephone lines under
each account.
MCI is committed to bringing you the quality service you expect and low rates
you enjoy today. If you still have questions about the information provided,
please call our toll-free customer service number, 1 800 444-3333 and speak
with one of our helpful service associates.
Sincerely,
Gloria White
MCI Customer Service
==================
End of MCI response
==================
I note that this letter does not address the two concerns I raise in my
inquiry:
1. Why does MCI charge $1.07 for a fee that the FCC states is no greater than
$0.53?
2. Why does MCI not mention (or refute) the reduction in per-minute access
fees charged to long distance carriers, according to the same FCC site?
------------------------------
Date: Wed, 1 Apr 1998 19:52:18 -0500 (EST)
From: HuiSion Teh <hsteh@singnet.com.sg>
Subject: Good Book on Financial Statement Analysis
I'm taking my Financial Accounting course and there is a lot of emphasis on
financial statement analysis, i.e using liquidity ratio, solvency, market
test ratio, gearing ratio, roi etc. Is there any good books out there that
can help in understanding and applying fsa skills?
thanks+regards
------------------------------
Date: Wed, 1 Apr 1998 19:52:47 -0500 (EST)
From: BOB FORD <BOB_FORD@compuserve.com>
Subject: bankruptcy
>From: JBednarzyk <JBednarzyk@aol.com>
>Subject: Tax question and emergency cash question
>Snip tax related questions and one 'emergency cash' question:
>1. My sister filed bankruptcy last year and listed $ that she owed to me
>on her papers. Someone at work mentioned that declaring a bad debt would
>increase my chances of being audited. Opinions? Other than that, my
>return will be pretty darn vanilla this year. I do have a copy of the
>court papers, and the amount is only $800. I was thinking of calling the
>IRS directly, but would really rather not unless I had to.
>Snip
>Thanks for any and all advice!
>Juli Bednarzyk jbednarzyk@aol.com
Juli
I am not an attorney nor a tax pro. I have had several people file
bankruptcy on debts they owed me.
In my experience, just because some files bankruptcy DOES NOT mean the debt
will not be paid. A lot depends on what class of creditor you are and the
assets of the person that owes you the debt. You may get paid in full.
GOOD LUCK
BOB FORD
BOB_FORD@COMPUSERVE.COM
------------------------------
Date: Wed, 1 Apr 1998 19:53:25 -0500 (EST)
From: eric <73354.3477@compuserve.com>
Subject: re: Mac decompression
I have a Mac and rarely have to decompress- only if the file is very big.
(I get persfin via compuserve.) If so, I use wordperfect. No problem at all.
------------------------------
Date: Wed, 1 Apr 1998 19:54:48 -0500 (EST)
From: "Paul J Stadnik" <paul.j.stadnik@bangate.tek.com>
Subject: Re: emergency cash question
On 30 Mar 1998 Juli wrote:
>> Being a Nervous Nellie, with a slight case of the bag-lady syndrome, my
>> main goal is to have 6-12 months of mortgage pmts put aside so that no
>> matter what, I won't risk losing my house should the employment market
>> take a nose dive.
>> I was leaning towards keeping it in my money market, but what would the
>> pros and cons be of making additional coupon pmts instead? So rather
than
>> sending in 1 pmt in a month, I'd send in a payment every two - three
weeks
>> until I was paid ahead by 6-12 months. Again - it's not so much a
>> reduction in principal I'm concerned with but a hedge against
unemployment
>> - - mortgage pmt stress.
This sounds like you are assuming that making extra payments ("paid ahead
by 6-12 months") gives you the option of not making payments if, for
example, you become unemployed. This is NOT true! If you have a fixed
mortgage, your agreement states you will make the payment each and every
month or you are in default.
The extra payments will lower your principal and pay off your loan
faster. For example, if your mortgage amortizes to $1000 per month for 30
years, and you make some extra payments, you still have the $1000/month
obligation, but you will pay off the loan quicker, say in 25 years. This
is why financial planners suggest an emergency cash reserve as the most
effective hedge against financial emergencies, such as unemployment.
------------------------------
Date: Wed, 1 Apr 1998 19:55:26 -0500 (EST)
From: eric <73354.3477@compuserve.com>
Subject: Re: Taipan
Have seen their ads for years. THERE IS NO FREE ( OR VERY CHEAP)
LUNCH!
Eric
------------------------------
Date: Wed, 1 Apr 1998 19:56:18 -0500 (EST)
From: SCN User <bh314@scn.org>
Subject: IRA conversion question
Currently my IRA consists of approx 15k, all in one mutual fund.
Each yearly IRA contribution that I made to this fund was deductable.
In 1997, for the first time, I started to be covered by a 401k plan.
Question: can I deposit my (non-deductable) 1997 IRA to a different
mutual fund, then convert it to a Roth? And then contribute my 1998
IRA to this same fund?
I'm not clear about the role or status of my 15k IRA in the one mutual
fund, and how it relates to or impacts my 1997 contribution to a
different fund. Is there anything I need to do to my existing 15k IRA,
or can I just leave it as it is?
Help appreciated--thanks in advance!
bh314@scn.org
------------------------------
Date: Wed, 1 Apr 1998 19:56:42 -0500 (EST)
From: eric <eric_marcus@compuserve.com>
Subject: Long- term care insurance?
Any recommendations? Do any of you have AARP insurance? Good or bad
experiences?
Eric
------------------------------
End of persfin-digest V4 #143
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