The magic of retirement plans and the lure of blue chip stocks

The Ticker

September 11, 1996|By Julius Westheimer

TODAY, we present suggestions about your money and your career.

GROW LIKE TOPSY: "The most valuable benefit that retirement plans provide is tax deferral for compounded investment returns. Over a period of years, this can be much more valuable than the one-time tax saving from your contribution to the plan." (David Rhine, partner, BDO Seidman Co.)

LET THEM PAY: "If you plan to take a class this fall, ask your company to reimburse you for the tuition. Many companies do this. Not only do you save money, but you also increase your earning potential." (The Cheap Report.)

NO WALL FLOWERS: Want to buy some widely held blue chip stocks? Here, from the latest Hulbert Financial Digest, are some of today's most popular stocks: American Express, Chevron, Coca-Cola, Disney, General Electric, Intel, Merck, Microsoft, Nike, Pfizer.

Bristol-Myers Squibb, Federal National Mortgage, Heinz, NationsBank, Philip Morris, Schering-Plough and United Asset Management are companies with strong dividend growth and superior potential, according to the S&P Outlook.

WHAT'S IT WORTH? Responding to several queries, here are names and phone numbers of organizations which will tell you the value of old stock certificates you may have:

Stock Search International (800-537-4523) charges $85 per company, plus 30 percent of any recoverable value. Also, for $75, R.M. Smythe (800-622-1880) will research the certificate for you.

TAX TRAP: "If you take money out of your retirement plan before age 59 1/2 , you may be subject to an additional 10 percent tax.

"This is on top of regular tax you'll have to pay from being forced to include the distribution in your taxable income. Consult your accountant for details." (Avery Neumark, employee benefits specialist.)

SEPTEMBER SONGS: "To buy or sell based on gut-level feelings is no more than a hunch at a racetrack and probably with the same long-term returns." (The Risk Report.)

"Until interest rates change dramatically, market plunges such as we have just seen will turn out to be merely corrections." (Patrick Winton, Closed-End Fund Digest.)

Want to know what questions to ask your stockbroker? For a free copy of "Ask Questions," write to Office of Investor Education, Securities & Exchange Commission, 450 Fifth St. N.W., Washington, D.C. 20549.

Pub Date: 9/11/96

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