Money from the family is helpful be wary of crocodiles and the IRS

The Ticker

January 17, 1996|By JULIUS WESTHEIMER

DIGGING OUT, we uncovered these random facts, figures and forecasts about your money:

"Nearly 25 percent of first-time homebuyers get a monetary gift from relatives for the down payment." (Federal Reserve Bank of Boston study)

"Don't try to hide. IRS is looking harder than ever for unreported income." (CPA Jack Heaney, former IRS employee)

"Mutual fund investors must love a strong market; cash surged into funds during the Nov.-Dec. rally." (Worth, Jan.) Ticker Query: Isn't this the reverse of smart investing?

Repeated by request: "If you put $25 a week into stocks that gain 10 percent a year (just under the 10.2 percent average), you'll have over $103,000 in 22 years." (Money magazine)

"By using a charitable remainder trust, you can give away assets -- stocks, bonds, etc. -- and still keep an income stream." (Kaminitz, Uhlfelder Tax Letter)

"Slippery sidewalks can lead to lawsuits," warns Kiplinger's Personal Finance Magazine, Feb., adding, "Check your homeowner's policy."

"Variable annuities offer tax deferral and many fund choices to cover full range of objectives." (Legg Mason Investment Letter)

"Grumbling at your low paycheck? If your company offers employee benefits, you're earning a lot more than you think -- often an extra 35 percent of your salary, untaxed." (Good Housekeeping, Jan.)

Bell Atlantic, yielding 4.1 percent, appears in "Income Portfolio" in Personal Finance, Jan. (Yield doubles average stock return.)

"Pay more! If you have a 10 percent, 30-year, $75,000 mortgage and hike monthly payments to $700 from $658 owed, you cut 7.5 years and save $47,944 interest." (Tightwad Gazette)

"You shouldn't fall in love with any stock, even though it's up 500 percent. Love is out of place in Wall Street." (Laszlo Birinyi in Forbes, Jan. 22)

"This is the year of the aging bull. It won't be a repeat of 1995, but it should be a fairly good year." (Kenneth Fisher, same Forbes)

"To prevent loss, always compare your 401(k) payroll deduction stub with your account balance." (Kiplinger's Personal Finance Magazine, Jan.)

This week's (Jan. 15) Barron's runs an Alex. Brown "Strong Buy" recommendation on Global DirectMail stock.

"1996 cars with lowest expected repair costs: Toyota Celica, Hyundai Elantra, Chevrolet Caprice-Impala, Buick Roadmaster." ("The Car Book," 1996 edition)

"Average doctor's annual income dropped 6 percent to $92,000 in 1994, first decline in 10 years." (American Medical Association)

"I learned the hard way that 'Rosy Scenario' was a seductive temptress. Maybe investors are being set up now by 'strong earnings' talk. Never forget 1973-'74 'bright profits' chatter while stocks plunged over 40 percent." (Charles Allmon, Growth Stock Outlook)

"More working people dress casually now, but if you wear jeans and a sweater when you meet with blue-suit prospects, you lose credibility." (Entrepreneur, Jan.)

"Did you realize IBM is the only pure technology stock in the Dow Jones industrial average?" (Worth, Feb.)

"Reports of inflation's demise are highly exaggerated. It flourishes in many world commodity markets." ("The Investment Biker" by Jim Rogers.)

"Each family's share of the U.S. debt is about $64,850. The debt increases $10,000 a second." (CNBC News)

"Real reason to own U.S. stocks is because our corporate sector is far better off than competition in any major industrialized nation." (Investment Counselors of Maryland)

"As long as interest rates and inflation look favorable, buy cautiously into market sell-offs." (Business Week)

"Family loans can be written off if they are not repaid, even if not fully documented." (Randy Blaustein, tax attorney)

Referring to last week's "quiet sell-off," a local broker quoted this Malay proverb: "Just because the river is quiet doesn't mean the crocodiles have left."

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