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Cedar Rapids Gazette (Newspaper) - April 19, 1974, Cedar Rapids, Iowa The Cedar Rapids Gazette: Tri.. Apr. 19, Th® | nvestor's liuide k 'J'* .JJM By Sam Shulskv Q. — Why do you criticize people for buying high-yield securities? What’s wrong with using the high yield to buy other securities? Why should only elderly people play it safe with income securities? A. — I guess I criticize as many elderly people for taking chances in speculative stocks as I criticize young people for investing too heavily in high-yield stocks. Elderly people must play it safe (and you can argue the meaning of that word. too) by investing, for example, in high-safety, high-vield bonds and preferreds because I) they need the money — now — and 2) they have no capital to lose — or. at least, can't replace capital if they do lose it. Younger people who don't rely on their investments for current income and are mainly concerned with building capital to meet college bills ll) years hence, or retirement 25 years hence could — if they chose — take the “safety" route too, but — 1) if they are employed and paying 20 to 30 percent or more in taxes, how much do they have left from an 8 percent bond investment? and 2) how can they hope to build capital with dollar-fixed investments (such as bonds)? If you’re asking me whether I’d rather have a 70-year-old retired couple playing around with cheap stocks or a 30-year-old couple socking all their money away in savings, treasury bills or corporate bonds, I d clearly prefer the latter. But with inflation running at IO percent a year, you’ve got to explain to me how a young or middle-aged couple can build capital by reinvesting 5 percent, or less, a year net. And if you come back with: “Yes. but common stocks haven’t done anything for the last six to eight years, either.” I ll agree you're right — for the last six to eight years. If I were convinced that’s going to be the market pattern for the next 16 to 18 or 26 to 28 years I'd say there s no use trying But I am not convinced Q — I notice a convertible debenture with a coupon of 5L* percent is selling in the 40s That would be a yield of about 12 percent — and convertible too. A. — Your figures are correct, bot you should also know that the company has had an erratic earnings record, and lately has shown losses; that the bond is rated CCC (speculative) and that the common would have to rise about 900 percent before the conversion factor became interesting. Q. — What is the advantage of a no-load fund over a load fund? A. — Simply, the no-load does not have salesmen and therefore does not charge a sales commission. * • • Q. — I have just began a plan under which I invest $50 a month — half into an endowment policy and half into a mutual fund. Is this more secure than putting the entire amount into a mutual fund0 A. — The endowment policy, of coarse, is an investment in fixed dollars You know now exactly what it will produce in X years. Sam Shulsky Q. — Thank you for your reply to several of my questions, but I’m disappointed because you didn t tell me whether or not to hold my mutual fund for recovery. \. — You’re disappointed Think of what it would mean to me if I really knew ' * * * Q. I’m an army officer over seas who may soon have to buy a home stateside. We have substantial amounts now in inherited securities and about $50.(KIO in savings. Would you r make any changes0 A. — Since you already have a substantial stake in equity securities I'd move much of that cash into tax-exempt bonds as soon as you know how much you will need for that new house The $25 which goes into the mutual fund is, of course, a risk investment in hope of capital gain ■* * * Mr Shulskv welcomes written Questions. but be will be able to provide onswers only through the column For information on retirement, and ore-re tirement planning, please include a self addressed, stamped envelope Address your requests to Sam Shulskv. care of The Gazette Researcher Tells Development of Superhard Metal LOS ANGELES (UPI) - A UCLA researcher announced Thursday that he had developed the second hardest material in the world, after diamonds. The discovery is “easily the most startling material development in recent years.” a UCLA spokesman said of the work by Prof. Rointan F. Bunshah, an engineering researcher The material is called titanium carbide, and it can be produced at one-hundredth to one-thousandth the cost of producing commercial grades of synthetic diamonds, for such uses as power drills, turbine blades, jet engines, heavy industrial cutters and other machinery uses, the UCLA announcement said. The regents of the university have taken the patent on the vapor deposition process by which the material is formed The metal titanium is vaporized by an electrical beam in a vacuum chamber, and the atoms combined with a hydrocarbon gas to form titanium carbide, which can be condensed and deposited at a rate of up to one-thousandth of an inch per minute, as a superhard coating, the announcement said Stolen Alarm Offer Flywheel As Solution to Energy Crisis PALO ALTO. Calif (UPI) -Stanford university scientists are considering as a proposed solution to the energy shortage — the flywheel, an invention thousands of years old. The versatile flywheel design presented to the Stanford energy seminar was introduced by Dr Richard Post, a professor at the University of California-Davis, and his son Stephen. The Posts said large flywheels similar to the one they designed could be used to store power in electrically run cars and trucks. Larger flywheels, they said, could possibly be used to store large amounts of energy produced by electric utilities, helping them to meet peak hour loads. They explained the new flywheels work as the ancient potter’s kickwheel, except that power comes from an electric motor-generator instead of an artist’s foot. The modern version of the flywheel is still in the theoretical stage, they said, but Stephen Post was optimistic: “I hope to drive home one nice day in my electric car, plug it into a windmill flywheel and then go inside of my solar-heated house.” Peanut Quota Each American eats of the average of 6.1 pounds of shelled peanuts a vear. 73-Year-Old 'Showboat' Boat Is Destroyed by Fire at Mooring (lf $.100.(10(1 in 1901, bul Alder man Travis Vance said the the Sprague.    Sprague’s    tourist    value    alone The vessel was built at a cost exceeded $500,000. VICKSBURG. Miss. (UPI) -The 73-year-old paddlewheeler Sprague which was the setting for the motion picture “Showboat”. has been destroyed by fire. The largest sternwheeler ever built was engulfed in flames at its mooring in the Mississippi river and was called a “total loss” by Mayor Mat Bullard. It had been converted into a tourist attraction on the waterfront and housed a museum, restaurant and theater, where “Gold in the Hills”, a melodrama about life in the gay 90s was staged each summer by the Vicksburg Lit tle Theater “I felt like I was losing a member of my family,” said Margie Rucker, who played the heroine Nell in the play, as she watched the smoldering hulk of New Jersey Votes To License Acupuncture TRENTON, N J. (UPI) -The New Jersey assembly has passed a bill to regulate and license the practice of acupuncture. About 20 doctors in New Jersey practice the ancient Chinese medical art which relieves pain and provides anesthetic relief for patients. Cedar Rapids Emergency Numbers Ambulance......... 366-7654 FBI..........402/348-1210 Fire............... 398-5343 Highway Patrol .... 364-5171 After Hours  363-5629 Police............. 398-5353 Sheriff.............398-3521 (Clip and carry in your billfold) LONDON (UPI) - Thieves broke into a London factory In that sense it is I over the weekend and stole the “secure" (although not pro- I burglar alarm system from the tected against inflation). wall, police said. OLD CREAMERY PLAYERS Present “The FIREBUGS” By Max Frisch Sunday April 21, IO A.M. After the performance, the cast will join the audience for coffee and discussion of the play. Public Invited. Free Will Offering. PEOPLES CHURCH 600 Third Ave. S.E. SHADE TREES — FLOWERING TREES Choose from a Large Selection of Locally Grown Trees SPECIALS- Sand Cherry Reg. $9.95 500    Crabapple Tree SC95 Reg. $12.95    V Build Your Own GREENHOUSE See Our Model On Display FREE EXPERT ADVICE We ore always happy to help you solve your landscaping problems, lf you're troubled by a problem area....bring us a snapshot for some Free Expert Advice. We want you to have beautiful, long lasting home surroundings. FLOWER & GARDEN- SHOP % LANDSCAPE DESIGNERS AND CONTRACTORS 5008 Center Pt. Rd. N.E. Cedar Rapids, Iowa Fruit Trees Raspberries Strawberries Horseradish Seed Potatoes Asparagus Rhubarb Blackberries Gooseberries Currants Seed Peanuts Edible Soybean Seeds Vegetable Plants Kohlrabi Broccoli Cauliflower Brussel SproutsFIRST BIG WEEK Sunday, April 21,1974 — 7:30 p.m."CRISIS IN THE MIDDLE EAST”in Bible Prophecy (Fully illustrated on the Giant Screen)Program Begins at 7:30 p.m. Each EveningColor Motion Pictore of Halle Crowson s Travels Regularly Sunday, April 21 “Middle East' Monday, April 22 “Satan Takes A Holiday'' Wednesday, April 24 What Was Abolished At The Cross?” Thursday, April 25 “The Christian Sabbath Tuesday, April 23    Friday,    April 26 “Are The Ten Commandments Old Fashioned’ The Change From Sabbath To Sunday’' SOMETHING NEW AND DIFFERENT!! ☆ UNIQUE BIBLE-IN-HAND CLASS EACH EVENING ☆ EACH LECTURE FULLY ILLUSTRATED ON THE SCREEN ☆ GIFT BIBLES FOR YOU TO USESeventh-Day Adventist Church HALLE G. CROWSON, Bible Lecturer of Minneapolis, is the guest speaker for this lecture series. Mr. Crowson has just recently returned from an extensive tour of the Middle East and the Holy Land and is showing his color movies and slides of places of interest. For a number of years, Mr. Crowson has been lecturing on the great prophecies of Daniel and Revelation throughout the Southland and the Midwest. His illustrated lectures are of interest to young and old alike. 42nd Street & Edgewood Road N.E. Cedar Rapids, Iowa ft »I ft ;

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