From: owner-persfin-digest@lists.xmission.com (persfin-digest) To: persfin-digest@lists.xmission.com Subject: persfin-digest V5 #11 Reply-To: persfin Sender: owner-persfin-digest@lists.xmission.com Errors-To: owner-persfin-digest@lists.xmission.com Precedence: bulk X-No-Archive: yes persfin-digest Sunday, May 10 1998 Volume 05 : Number 011 In this issue: Re: persfin-digest V5 #10 WSJ inquiry Relocating questions Re: persfin-digest V5 #10 Selling mutual fund shares experiences with AIG insurance? Payroll Tax question Does anyone know of a web site that compares bank cd rates?? An Easier Road T razes residential customers rates WSJ interview (Danialle) hard money loans WallStreet Reporter clarifies URL WSJ interview (Danialle) Re: Setting an interest rate for a private loan Usurious Interest rate? (Digest #10) State G.O. Muni bonds Calling card calls e trades Legislation afoot for qualified plans 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, 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) 1998, Jeff Salisbury POSTED SUBSCRIPTION FEE: $20/year. Payment is optional. You will not be billed. The Digest is available to all subscribers, whether or not they pay. I do not discriminate either in favor of paying subscribers or against nonpaying subscribers. If you feel that the information presented here is worth the fee, and you feel comfortable paying it, send cash, check, or money order (U.S. funds), payable to "Jeff Salisbury", to: Jeff Salisbury 65 North 1300 East Logan, Utah 84321 Payment will be acknowledged by e-mail if you include an e-mail address. Subscribe: e-mail majordomo@xmission.com, text: subscribe persfin-digest Unsubscribe: e-mail majordomo@xmission.net, text: unsubscribe persfin-digest ---------------------------------------------------------------------- Date: Thu, 7 May 1998 11:33:38 -0400 From: GeorgeS Subject: Re: persfin-digest V5 #10 WSJ inquiry >My name is Danialle Weaver and I am a freelance writer who contributes to >the CyberInvesting column of the Wall Street Journal Interactive Edition. Just curious, and please correct me if I'm wrong, my understanding is that the WSJ managed to *ahem* not quite keep up with the S&P500 (by a substantial amount) during the 90's boom So.. how did all those WSJ wunderkind manage to miss out on all the fun? If I were a stockholder in the company, I'd be even more curious. Can I suggest an article: why not interview the WSJ CEO and find out just how they missed the boom... - - ------------------------------ Date: Thu, 07 May 1998 08:50:27 -0700 (MST) From: Phillip Jennings Subject: Relocating questions Hello all, I will be moving from Salt Lake City to Cincinnati this summer. This will be the first time I have ever relocated since buying a house, having a career, etc. As such I feel quite stressed over all the details. I have found a couple of books about relocation that answer some of my questions but not others. Maybe some of you could offer help. 1. I have > 6 figures in my 403-b. Can this stay as it is or do I have to roll it over into an IRA? I like my current funds in the 403-b (Fidelity). If I do a roll-over is there a time frame before or after termination of employment in which this must be accomplished? 2. My wife and I both have group term life policies thru our employer. As there will be 6 weeks between jobs for me and even longer than that for my wife, what is the best way to keep life insurance in force? 3. What about health insurance coverage? I know COBRA mandates some sort of continuation of insurance after termination, but does this apply to someone who voluntarily "retires?" 4. All of our assets are in a revocable trust. Does the change of state affect the trust. I would think that our wills need to be redone, but what about the trust? 5. Finally, anyone have advice on how to close on a house long-distance? Our time frame for moving is not that great. We will only have a few days off work to find a house in Cincinnati and this will not be until the first of June. We will plan on moving the first of July and I start work August 3, so it is likely that we will have to arrange a lot of the housing details long-distance (i.e. making offers, getting inspections, possibly closing). Anyone with experience in these matters who could offer advice would be greatly appreciated. Sorry for the long post. Thank you. Phillip Jennings Salt Lake City, UT pjennings@deans.pharm.utah.edu or lovelight@juno.com - - ------------------------------ Date: Thu, 07 May 1998 11:19:16 -0400 From: Tom Gaffney Subject: Re: persfin-digest V5 #10 A- > >------------------------------ > >Date: Tue, 5 May 1998 13:27:23 -0700 (PDT) >From: Sandi Rollins >Subject: Setting an interest rate for a private loan > >My mom has a question: > >She and my step-dad make "hard money" loans as a way to >supplement their retirement income. Recently, a lawyer told them >that the written agreement they had with one of their >less-than-stable borrowers was illegal, since the agreed-upon >interest rate of 18% (for a private, unsecured personal note) >was usurious. > >However, he did NOT tell them what was considered a fair >and legal amount. > >Any ideas where to find out? This is in California. > >Thanks in advance, > >Sandi > > > Sandi, I might start with my state's attorney general's office. They probably have a web site in California. I've contacted our state's (Ohio) Attorney General (via the State's HomePage) for responses on several issues I have had. They responded quickly and courteously. If they cannot help you, they can probably point you in the right direction! Thomas J. Gaffney, CPA, CIA Senior Auditor University Auditing Kent State University E-Mail= tgaffney@kent.edu Phone= 330-672-2341 Fax= 330-672-5434 http://www.kent.edu/ksuAuditing/ - - ------------------------------ Date: Thu, 07 May 1998 11:08:48 -0500 From: "Robert R. Kalt" Subject: Selling mutual fund shares When I sell mutual fund shares I realize it is best to sell the shares I paid the highest price for in order to show the smallest profit and incur the least taxes. I do have records of what I paid for all shares I bought but what happens to shares the fund itself bought for me and reinvested? - ----------------Thanx-----------------Bob------------------------------- - - ------------------------------ Date: Thu, 07 May 1998 09:20:49 -0700 From: Mike Broadhurst Subject: experiences with AIG insurance? Hello listers: I recently received with my monthly mortgage statement a solicitation from American International Group (AIG) auto insurance company. My wife and I, residents of Los Angeles, are currently covered by Mercury Insurance. Mercury was the lowest cost insurer that I could find in my market. Anyway, I called AIG for a quote and learned that their rates for identical coverage are more than 15% lower than my current insurance carrier's. So, I'm curious to hear any experiences -- good or bad -- any of you might have had with AIG insurance. Are they responsive and efficient? Any info would be appreciated. Thanks in advance, Mike Broadhurst - - ------------------------------ Date: Thu, 7 May 1998 10:02:01 -0700 (PDT) From: Jamester Subject: Payroll Tax question Persfinners: I changed job about a couple of weeks ago and have just received my unused vacation check from the old company. I looked at it and compared it with the old regular paycheck. What I found was they actually took straight 28% out of my vacation check for fed and 6% for State (Calif). While on the regular check they used Method B of payroll deduction (from IRS Publication 15) which came out to be less taxes. They did take out Social Sec, Medicare, CA SDI and the percentages are correct. The fed & state figures are questionable. As an example, a check for $900 shouldn't really have $250 taken out for Federal tax, while a check for $1000 (arbitrary regular paycheck amt) only have about $160 taken out, should it?? Am I getting ripped off here? Is it normal for companies to use diferent formula to deduct taxes out of a vacation check? Is it supposed to be 28%? Thanks in advance for the response.. James - - ------------------------------ Date: Thu, 7 May 1998 12:13:52 +0000 From: "alkon" Subject: Does anyone know of a web site that compares bank cd rates?? I used to have a bookmark on a web site that compared the best bank cd rates in the nation. Unfortunately, my bookmarks recently disappeared and I am having a heckuva time finding the web site once again. BTW, the site did not have a charge to provide this information. If you know of one I would appreciate it if you could pass it along. Pls respond to me by e mail at alkon@hal-pc.org and post here. Thanks, Al Kondo - - ------------------------------ Date: Thu, 7 May 1998 13:15:10 EDT From: Jrice45515 Subject: An Easier Road Danialle Weaver wrote: <> A short note to new or potential investors who want to investigate the possibility of significantly shortening the path described in the above "theory"; check out the Motley Fools whose clear tutelage quickly brought me (a LOW-net worth and market-UNsavvy individual) through the advice-needed stage without the costly and dubious aid of a full service broker. Since discovering the Fools in Nov96, I have been successfully handling my own investing online with Discover (nee Lombard) at discount rates. Now when you hear that word "successfully", bear in mind that virtually any idiot in the market only since Nov96 would probably have done well. You want to prepare yourself to survive in an unfriendly market. So I know you all are busy but take time to visit www.fool.com; and No, I don't work for the Fools nor for Discover - I'm unemployeed and looking. - - ------------------------------ Date: Thu, 07 May 1998 12:41:47 -0700 From: Lloyd Colston Subject: T razes residential customers rates At http://www.washingtonpost.com/wp-srv/WPlate/1998-05/06/036l-050698-idx .html and also reported by CNN that Long-distance telephone company AT&T is charging residential customers an extra 95 cents per month, saying it needs to recover the cost it pays local telephone companies to complete long-distance calls. AT&T imposed the fee in April for its 45 million customers who subscribe to one of its discount calling plans. The firm will charge its remaining 35 million customers a monthly fee of up to 95 cents beginning July 1, a spokesman said Wednesday. -->Chmn calls for reduction in local-access fees ..... http://cnnfn.com/hotstories/companies/9805/06/q_phone_fee/ No I did not make a mistake in the subject. Let me know how more I can help. Lloyd Colston Excellence is not an accident Pryor, OK USA social worker, writer, editor Member: International Small Business Consortium KC5FM Home page http://www.viagrafix.com/colston/ Family ISP coming > http://globalads.com/gfn-prelaunch/kc5fm Shopping made easy at http://www.spree.com/default.asp?x=kc5fm Low cost Global Communications at http://ld.net/?kc5fm - - ------------------------------ Date: Thu, 07 May 1998 13:27:39 -0400 From: eric Subject: WSJ interview (Danialle) I'm interested, but puzzled about your catagories. Eric ph 619-792-1066 - - ------------------------------ Date: Thu, 07 May 1998 14:48:53 -0400 From: BOB FORD Subject: hard money loans >Date: Tue, 5 May 1998 13:27:23 -0700 (PDT) >From: Sandi Rollins >Subject: Setting an interest rate for a private loan = > = >My mom has a question: = >She and my step-dad make "hard money" loans as a way to >supplement their retirement income. Recently, a lawyer told them >that the written agreement they had with one of their >less-than-stable borrowers was illegal, since the agreed-upon >interest rate of 18% (for a private, unsecured personal note) >was usurious. = >However, he did NOT tell them what was considered a fair >and legal amount. > = >Any ideas where to find out? This is in California. > = >Thanks in advance, > = >Sandi SANDI = (THE USUAL WARNING) I am not an attorney and the following is not legal advice. It is just m= y opinion. It is based on my experience in California. The laws of other states may be= different. = Your mom and dad should consult an attorney AS SOON AS POSSIBLE. The last thing you want to happen is for your mom to explain to a judge that she made a hard money loan at usurious rates. That would make you one of the judg= es least favorite people. If you are not paid on the loans, you may have a big problem collecting o= n them because you can not take the debtor to court. Just hope everyone pays wh= at they owe. = Hard money loans in California are subject to several laws and regulation= s. Get advice from your attorney on what can and can not be done. Making hard money loans is a business. If you are in that business, you should protect you= r personal assets by having your corporation make the loans. GOOD LUCK BOB FORD BOB_FORD@COMPUSERVE.COM = = = - - ------------------------------ Date: Thu, 07 May 1998 13:56:08 -0400 (EDT) From: Danialle Weaver Subject: WallStreet Reporter clarifies URL Jeff-- For some reason--perhaps the sudden volume of people suddenly visiting my site-- the URL forwarding service I have seems to no longer be working. I have gotten a couple messages from list subscribers today and wanted to make sure no one thought I was trying to pull one over on them. The URL that was listed: http://www.bigfoot.com/~danialle The URL it should be redirecting to: http://members.tripod.com/~danialle_weaver/index.html Sorry. One of those unforeseen things. Danialle - - ------------------------------ Date: Thu, 07 May 1998 13:27:39 -0400 From: eric Subject: WSJ interview (Danialle) I'm interested, but puzzled about your catagories. Eric ph 619-792-1066 - - ------------------------------ Date: Thu, 7 May 1998 16:00:23 EDT From: WDStancil Subject: Re: Setting an interest rate for a private loan > [My mom] and my step-dad make "hard money" loans as a way to > supplement their retirement income. Recently, a lawyer told them > that the written agreement they had with one of their > less-than-stable borrowers was illegal, since the agreed-upon > interest rate of 18% (for a private, unsecured personal note) > was usurious. States usually set a maximum interest rate - which is why credit card companies move to states without usury laws. :) What do local banks charge for overdraft loans? Overdraft loans are unsecured, and would seem to be a good guide as to what interest rate to charge. My bank (NC) charges 16.9% on overdraft loans. - - ------------------------------ Date: Thu, 07 May 1998 14:29:41 -0700 From: elaine steward Subject: Usurious Interest rate? (Digest #10) > Date: Tue, 5 May 1998 13:27:23 -0700 (PDT) > From: Sandi Rollins > Subject: Setting an interest rate for a private loan > interest rate of 18% (for a private, unsecured personal note) > was usurious. > I question this input. If 18% - 21% is not usurious for Visa et al, why would it be usurious for your parents. I'll be interested in input from folks who actually KNOW the answer. elaine - - ------------------------------ Date: Thu, 07 May 1998 12:46:19 -1000 From: Don DeLair Subject: State G.O. Muni bonds currently own a lot=A0 of zero coupon Hawaii State General obligation bonds.=A0
They are laddered in increasing amounts mautring every year from 2002-2009.
Moodys recently downgraded the state of Hawaii from AA3 to A1.
I am a retired senior citizen, and these bonds represent the bulk of my nestegg.
My concern is ---How safe are the bonds?
I don=92t plan on selling any of these bonds prior to maturity. My main concern is
what are the chances of a DEFAULT. I have considered diversifying , but the bids
I can get at retail are awful. I would much prefer to hold them to maturity but also
need some peace of mind.

Are State G.O.s generally safe.
Is =93a1=94 to low a rating to feel comfortable with.

I am pulling my hair trying to make a decision.
Should I hold or take a bath by trying to sell?

Any help/comments would be greatly appreciated.

Don

- - ------------------------------ Date: Fri, 08 May 1998 15:41:13 -0400 From: eric Subject: Calling card calls I have just been told that the FCC allows an extra 30 cent charge applie= d = to 800 # calls made from certain privately owned public phone booths. Right or wrong (again!)? - - ------------------------------ Date: Sat, 9 May 1998 07:32:43 EDT From: KroegerD Subject: e trades I recently registered with Datek and have execue 2 trades. Service was perfect, and their online tools are excellent. Why would anyone pay more than $10 for a trade? >From: "Carol B. Tan" >Subject: Online Trading >I hope this is the right address to post this: >I am checking to see if anybody has had experience (good or bad) with online trading companies such as E-Trade, Datek, Lombard, etc. Is this as reliable as going through a live broker if I already know which stocks I want to purchase? Why is there a difference in the fees (ranging from $9.95 to $19.95) aside from the variance based on the number of shares purchased? Thanks! Carol. - - ------------------------------ Date: Sun, 10 May 1998 10:22:34 -0600 From: jmorgan@ecentral.com Subject: Legislation afoot for qualified plans In "Pensions for small-biz workers get boost", in the May 8-14, 1998 _Denver Business Journal_, Sougata Mukherjee writes that Reps. Rob Portman, R-Ohio and Ben Cardin, D-MD introduced a bill on May 6th that would, among other things: 1. Raise the contribution cap on a SIMPLE IRA from $6,000 to $10,000. 2. Raise the contribution cap on 401(k) plans from $10,000 to $15,000. 3. Provide a "catch-up" feature for workers ages 50 and older, allowing them to contribute as much as $5,000 above the cap to their qualified plans. 4. Mandate faster vesting of employee contributions to qualified plans, requiring full vesting after three years of service, or graduated vesting in 20% increments over the first 5 years of service. 5. Raise the age at which minimum distributions must begin from 70.5 to 75 years. We'll see how this one flies.=A0 Time to contact your legislators and ask them to support the worker bees again. Cheers. Jeff Morgan - -- J. Morgan - jmorgan@ecentral.com - - ------------------------------ End of persfin-digest V5 #11 **************************** - To unsubscribe to persfin-digest, send an email to "majordomo@xmission.com" with "unsubscribe persfin-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.