Cedar Rapids Gazette (Newspaper) - May 20, 1974, Cedar Rapids, Iowa
The Cedar Rapids Gazette: Men., May 28, 1974
"^he Investors (guide
Bv Sam Shulsky
Q. — Almost nine years ago vee* bought an annuity w hi< Ii is Hiving us some concern. Several years ago we showed Hie annuity to a relative who is an insurance agent and expressed our doubts — after reading some of your columns. Ile said it was a good policy and added “I sell insurance — he (meaning you) sells investments.” Now we believe we made a mistake. We have over $10,(MMI invested for a return of $75 a month, and an* disturbed that we cannot touch the principal if we should need more money. We would like to cash iii this annuity and put the money into government bonds.
A. — Let’s set a few things straight at the very beginning.
I do not sol I investments, if by “Investments” you mean stocks, bonds or any other specific investment media. All I am interested in doing is pointing out various methods of putting your money to work and helping you select the one which would suit your needs best.
Second — I do suggest annuities and often recomim rid them for those whose age bracket, lack of estate responsibilities, income needs, etc, etc. are best met by annuities.
I can’t toll from your letter whether you are already drawing income from this annuity or not. II you are, then forget about “cashing it in.” You can’t draw benefits from a lifetime annuity for nine years then decide you want “out.” A lifetime annuity is a lifetime contract
I don't know when you bought this contract, either. AII I can say definitely, as of today, is that $10,000 invested in top quality bonds would yield $85(1 a year without any invasion of principal. You would then have $111,000 iii bonds to leave to your children Obviously, $75 a month, $900 a year, from an asset which disappears at your death is not as attractive as $850 a year from an investment left intact
lf you mean you are now buying an annuity which will begin paying you an income some time in the future, then you must consider what the* money so invested (or, the
money you could get out) would bring you iii some other form of investment. But make sure that canceling out the
annuity program does not leave you without life insurance protection.
♦ * *
Q. - I have $30,OOO U.S. Steel 4*^s of 1986 which I bought at par. Should I sell out, take my loss and reinvest in higher yielding bonds? My top income tax bracket is about 40 percent.
A. — At a recent price of 71*2, the d'/^s of '80 yield about ti1 i percent. In addition, of course, there is the “built in” ($285 per $1,000 bond) recovery over the 12 years to maturity.
lf you took $715 out of each bond and reinvested the proceeds you could get annual income of $00 7775 a year instead of tin* current $45 — so that would be one way to increase annual cash income. Offsetting factors would Im* the “plus” of a 281^-pomt capital loss. which would help reduce current taxes — and the “minus ' of passing up the 28l2 pmnt recovery of your capital over the1 next 12 years.
Finally, there is the question of your high tax bracket. Currently’, you are paying income taxes on only $45 per bond — and the* recovery to par would be tax-free (since* you paid par for the* bonds in the* first place).
If you do sell and take the deductible tax loss, perhaps you should consider reinvesting in tax-exempt bonds.
“Bid and Asked” — This is often refe rred to as a (imitation, or quote. The “bid” is the* highest price a potential buyer has indicated he* would take*. A trade is made when (I) the sidler accepts the“bid” price*, or the* buyer raises his bid to tin* “asked” price, or (2) when a compromise is reached in the* area between the* two.
They'll Do It Every Time
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■ti. 1 It*IO* l»|fr
Typo of Account
RATES PAID ON SAVINGS
All interest is paid quarterly Monthly income checks available on all certificates. All accounts insured up to $20,000 OO by FSUC A SUBSTANTIAL PENALTY IS REQUIRED FOR EARLY WITHDRAWAL OF CERTIFICATES.
Our Monticello Branch Office is NOW OPEN-1 ll East 1st Street
savings & loan association
1135 7th Ave., MARION 377-3781 IU East 1st St., MONTICELLO 465-5406
for Better Health
Acupuncture May Help The Deaf
By Br. S I, Andelman
Imagine I hat your name* is Carl Trowbridge of Fort Orange*, Fbi. Iii the 1920’s you ran an electric crane iii a railroad yard, working over boller and air hamme rs fur a number of years. The long-range result of those year you spent above the* factory noise was a progressively worsening ease of ne*rve* deafness
You visite*e! spe c lalists ariel still the* only sounds you heard came through two hearing aids fitted for both ears. You have re*signe*d yourself to the* fact that you’ll go through life with more electronic device's attached to your head than an astronaut. Unfortunately batteries pose an energy crisis — they we*ar out. You’re caught without a spare on Florida beaches or dampness makes them short out, which happens ofte*n when you’re hot ariel sweaty.
Now acupuncture — long used in the* Fast — is helping people like* Carl Trowbridge. Nerve deafness is one* of the* areas in which ac upuncture has shown the most effee-tiveness in rehabilitation and the only area in which actual improvement can fie* documented through the* use* of audiograms.
The Ned Ching Acupuncture center in Washington, B.C., is quite simply the* Mayo Clinic of acupuncture in the United States. Its staff of MBs requires all prospective pa-tie*nts to undergo a complete medical examination to be certain that acupuncture is right for the patient. Dr. Gregorio Ross, who heads the medical staff, often insists on additional information from bis medical experts.
For example, before he ll permit a patient suffering from migraine* headaches Ie* be treated, a diagnostic test is done to cheek for brain tumors. Those* who can be* helped are then treated by Chinese acupuncturists under the direct supervision of Dr. Ross. Ia*ss than IO percent are* turne*ei
S. L. Andelman
away after undergoing Hie* complete medical exam.
Like* many people, Carl Trowbridge was a skeptic at firs! Willing to Iry anything, ins treatmerit consisted of the insertion of four needles in specific acupuncture points along the* jaw line* of each (‘ar. The* needles remained in tile* e ar for one* hour And afte*r three* treatme nts Carl was able* to make a longdistance phone* call tu his family.
Total restoration of his hear mg may even be* possible*. “The only thing I could possibly miss,” Carl says, “is being1 able* to turn off the* hearing anis whenever I dieln’t want to he*ar what was going on.” Now he* eau walk on the* beaches without worrying about dead batteries.
LAFF - A -
“Your homeworks improving lately are you and your father getting outside help''”
By Oswald & James Jacoby
Oswald “Bael (flayers tend to give themselves no chance to bring home a doubtful eon tract Fair players usually find a way that may succeed, while really good players give them selves every chance. ”
Jim: “South was a fair player. He watched ins opponents start with three rounds of diamonds. W'e*st ruffed the third le*ael and shifted to a club. South led a trump to his ac e* and a second trump back to dummy’s queen. Then be tried the* heart finesse If it had worked tie would have* been able to ruff his last heart in dummy, but it faded ariel In* was down one.”
Oswald: “It was lough luck
The* bidding has been: 20
West North Fast South
IA Dble. Pass Pass Pass
You, South, hold:
A K 2 ? A J 7 6 5 4 A 6 4 94
What do you lead?
A — Lead the king of spades. Your partner has shown good trumps. Try to pull declarer’s trumps as quickly as possible.
The* bidding has been I A double, (lass.
You South, hold ♦Q965VK4 4 7 4 3 2 4 IO 6 3 What do you do?
but an expert would have given himself an extra ( hance* and made* (tie hand lh* would have lid a trump to his ace just as Soul ti ti a et done, tint then he* would play out Ins last diamond West would not have be*eri able to ruff and a low heart would have- been dis carded from dummy. After that start South would cash his ace of hearts and ruff his last two hearts in dummy.”
Jim: “The extra chance* was that West had started with just two trumps lf West held a third trump, lie would ruff; dummy would ove*rruff and South could then try the heart finesse. He would still be down one because there had been no way to make the* contract ”
4 Q 10 5 ¥ J 4
♦ A J 7 6 3 WEST
4 6 3
9 K IO 87 53
♦ 9 3
SOUTH (DI 4 A K J 9 8 V A Q6 4 Q J 8 2
EAST 4 74 2
4 A K IO 5 ♦ K Q 10 9
Both vulnerable North East
Opening lead — 4 9
Protect Your | Inmtment ^ In Clothing 'f
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® 1974 by Chicago Tribune-N V New* Sync! Hic WortO Righto Reaved ► *
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AT 122W SERIAL
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TERMS TO FIT YOUR BUDGET
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se*/# SAVINGS — 4 lb Beef Roast
49•/» SAVINGS — 4 (8 oz) Baked Potatoes
SI*/* SAVINGS —Two Layer Yellow Cake
7f*/» SAVINGS — Frozen Broccoli (10 oz boil in pkg )
•Comparison of microwave oven and electric range made by Sacramento utility District.
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72*/. SAVINGS — 2 lb Baked 50*/« SAVINGS 1 cup of Instant
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70*/. SAVINGS -4 Lobster Tails ,*/• savings from the Fry Pan
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51*/. SAVINGS —11 lb Turkey oz. et )
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