Cedar Rapids Gazette (Newspaper) - August 9, 1974, Cedar Rapids, Iowa
The Cedar Rapids Gazette: Fri., Aug 9, 1971
I PUT A BELLON HEATHCLIFF TO KEEP HIM FROM SNEAKING UP ON BIRDS.'"
he Investors ^uide
By Sam Shulskv
Q — I ve enjoyed your column for many years and use it in my inv°sti»ients class at college. In a recent column you sidestepped a request for a “yield to maturity’’ formula The approximate yield-to maturity is quite simple: You add current yield plus the annual rise to par at maturity (for a discount bond) and divide that sum by the average price of the bond over its remaining life to maturity. This latter (denominator) figure is merely the present price, plus lot), divided by 2.
A — I do appreciate your comments and formula. You’re right when you say it is simple. You are also right when you say it gives an approximate yield to maturity.
Every time I mention this formula I get dozens of answers, ranging from your handy formula to some which cover two pages. Yours certainly is adequate. I think it is fair to point out, however, that the current yield figure used in the numerator is an approximation, since the steadily rising market price of I he bond changes this factor constantly'.
However, I repeat, I do appreciate your offering and recommend it to those who want a good approximation. Being naturally lazy, I go to the
bond yield book
* « *
Q — During the mid-HIK I had three MIB plans with a company which had only a Wall Street post office box number. Now I can find no records A — I can’t imagine what’s going on here. But you better get to the member firms department of the N. Y. Stock exchange, ll Wall Street, New York City 10005— fast.
* * •
Q — Five and a half years ago a mutual fund man sold me a $4<l-a-rnonth plan to run for IO
years. I ani close to retirement and hoped this fund would help me supplement my social security payments. How good is the plan? I never realized that so much if the money went to the agt at. Should I withdraw and put the money into savings9 (’an I get all my money back?
A — It is clear you went into a $4,800 investment plan without the slightest idea of what you were doing. Sign in haste and worry at leisure.
I don’t know how close “close to retirement’’ is If retirement
is closer than four and one half years, how did you figure that a 10-year program initiated five and one half years ago would become ripe by retirement? Of course, you can always stop a mutual fund plan, but if you went for a ■front-load’’ program (which meant prepayment of up to 50 percent of commissions in the first year) cancelling out before the IO years are up would mean that you’ve prepaid some commissions for purchases you aren’t going to make.
How good is the plan? Add up all your $40 payments (which I would assume to come to $2,H40). Add to that all reinvested dividends and capital gains. (You received quarterly and annual slips on these figures.) The total is what you paid in. Next, multiply the number of shares you hold (see last report slip) by $6 41 — the bid (asset) price of the stock as this is written. If the amount you paid in is less than $6.41 times the number of shares you now own you are ahead of the game. If it comes out to more, you have a loss.
If you want to know what it cost you, total, to buy the shares, subtract the asset price of $8 41 from the offering (“asked”) price, $7.02 currently, and you get HI cents. Div ide 61 cents by 8.41 and you get 9.51 percent. That is your commission cost The fund has had a fair, middle-of-the-road. so-so record. It’s been a rough five and a half years for investors
— big and small. If you have a few years to retirement, you might as well continue and hope for better times when you retire.
There is no such thing as “getting ail your money back’’ when you go into an equity investment. You can get less, the same, or more And no one can guarantee anything . . . repeat
♦ * *
SHORT: A term indicating that one owes stock — as “I’m short UMI General Motors,” meaning that he’s sold the stock and must, at some future time, buy it in order to deliver the shares.
Mr Shulsky welcomes written ques tions, but he will be able to provide answers only through the column For information on mutual tunds, please include a self addressed, stamped en* velope Address your requests to Sam Shulskv, care of The Curette
ON THIS DATE in 1898. Spain formally accepted peace terms ending tin1 Spanish* American war
They'll Do It Every Time
6errma a tumble fkma the aihpobt electx/c eye
KEYS, CO*NS. W frt TH£
AN’ A PENCIL W fiNfOii;.. AN1 TH 16 I GOT any
TOBACCO / rrrup.2 METAL
WIN AT BRIDGE
By Oswald & James Jacoby
How was I tit know?” asked the studenl “The club play was a pure guess, wasn’t it?’’ “Not at all,” replied the professor “You have really embarrassed me right iii the middle of the Jacobys’ be-kind-to-declarers week.”
West had led three rounds of diamonds. The third lead was ruffed in dummy. East could not overruff, so tin1 student had played ace and one trump. West took his king and led a third trump. Dummy won A low club was led and tilt* jack finessed Dummy’s ace and king of hearts wert' cashed to allow one club discard and the time of decision had arrived. If East hold the unguarded king of clubs a low club was the right play. If West held the IO and East king-small the queen play would bump the IO
♦ J 9 7 6 f A K 6
♦ q9H3 WEST EAST
A K 52 A 4
V 8 a f Q J 9 7 5 4 2
♦ AEQ IO 72 ♦ fi 3
VMS ♦ K H 7
♦ A Q 10 8 3
♦ .I 8 4
♦ A J 4 2
West North East South
24 3+ Pass 4*
Pass Pass Pass
Opening lead — K4
The student took some time, led a small club and was one down Actually, he had made a hopeless play. West had shown up with three spades, two hearts, six diamonds and one club Only one card was unaccounted for. East could not hold the unguarded king and the queen was the right play.
The bidding has been: 9
West North East South
2* 24 Pass 3+
Pass 44 Pass 54
Pass ti* pass 1
You, South, hold 4 A Q 6 5 4 VA Q6544AK42 U ha! do you do now'.’
A—Just hid six spades. Your partner is suggesting seven, bul remember (hat his first two bids were rather wea’k.
You hold the same hand. Your partner opens one club. W'hat do you respond*’
Hooter Helps Tolltaker Stay Awake
JI'RITER. Fla. (AP) - The owl and the tolltaker sit side by side, keeping each other company night after night at a lonely turnpike exit.
“I talk to him all night.” says Charlie Wargo, 52. “I ain’t got nothing better to do, you know.”
Wargo, an army retiree, works the ll p.m. to 7 a m. shift at the Florida Turnpike’s Jupiter exit, about 15 miles north of West Palm Beach.
He says his night owl companion began visiting him earlier this summer and usually stays for most of the shift.
The owl perches on an ultraviolet insert lamp at War-go’s toll booth or on a nearby sign, occasionally swooping down on a bug.
Wargo says he isn’t sure what kind of owl his feathery friend is, but he hoots.
Until a few weeks ago, Wargo said, two other owls would drop by for short spells He said they would whistle and he'd whistle back But the whistlers haven’t been seen around lately, only the hooter
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For Some People, Delusions Are Very Real
Bv Dr. S. I,. Andelinan
Most people at .(line time or other have told themselves lit tie lies or indulged in moments of wishful thinking to satisfy an inner need or protect themselves against anxiety However, when a person can no longer distinguish between facts and fiction, he is the victim of a delusion Efforts to present such a person with factual evidence disproving his delusion arc randy successful
To him, the delusion is real Ile is a psychotic to whom fantasy is necessary to supply wha! real life has denied him The type of delusion the psychotic patient expresses is determined by the personality problems and needs that prevailed before he became psychotic The sources of his problems may often be found in thwarted trends and drives, frustrated hopes, inferiority feelings, rejection, unfulfilled desires, feelings of guilt and
othc r emotional disturbances that require a defense against anxiety.
The delusion of grandeur arises from feelings of inadequacy, insecurity or inferiority. The patient who insists he is God or Napoleon is escaping from the negative feelings he had in the world of reality
Delusions of self-accusation arise because of guilt feelings
not expressed The sense of guilt is transformed into selfaccusation or self-punishment.
Persecution is the most frequent form of delusion The person who is dissatisfied with himself or hostile to others may refuse to admit-that he has these feelings but instead imagines that other people* are dissatisfied or angry with him
Psychotics are often the* victims of their own or their
parents’ overly high aspirations Unable to accept defeat, they may resort to brooding. distrust, suspicion. misinterpretations resentment and ideas of persecution. Many of these people have been critical, resentful, suspicious and unhappy since childhood
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