BUSINESS East Loses Puzzles West Iowthey Differj ’New'bonds Flood the Marketplace ...Page 14 ...Page 4
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2 0 - MANCHESTER HERALD, Sat., Sept. 25, 1982 MHS wins; irezhnev speech Men, women: BUSINESS East loses puzzles West iowthey differj ’New'bonds flood the marketplace ...page 14 ...page 4 ... page 11 Drawbacks of the "goose eggs” : you are placing your some of the price risk out of tax-free bonds. In the So many new types of bonds are being created to en faith in the ability of the issuer to repay, perhaps 30 “floater,” it’s the interest rate that fluctuates— weekly tice your savings dollar these days that the old- years from now. Also, if you have to cash in earlier, you — but the principal is locked in. Many of these bonds are fashioned bond — with its fixed rate of coupon interest Your take a chance on the price you will get in the "secon issued by local governments to finance pollution control Partfy sunny, Manchester, Conn. and its simple, stated maturity rate — is starting to facilities and similar local improvements. How good dary” market. You could take a beating unless you hold Monday, Sept. 27, 1982 appear as out of style as a mustache cup. M oney's the bonds to due date. they are depends on the credit rating of the issuer. cool Tuesday The innovative investment products arc designed for • Zero coupon insured (certificates of deposit). This is . - m • Treasury Investment Growth Receipts. This is an - See page 2 Single copy 25<( mass appeal — to reach the audience of small investors W orth ingenious form of zero-coupon investment invented by another kind of debt instrument that doesn’t pay regular that has been putting millions into money market funds. Sylvia Porter Merrill Lynch. The receipt is similar to buying a share interest, but is sold at a discount rate to reflect interest Irralh Before you invest, though, I plead with you to discuss in U.S. government bonds. But instead of receiving any to maturity. your move with a knowledgeable, skeptical adviser in interest, you buy the growth receipt at a discount to The big attraction of these CDs is that, though sold by whom you have trust. You can choose: brokers, they are deposits at commercial banks and it accumulates, even though you don't receive a penny reflect the interest and principal you will get if you hold • Zero coupon bonds. These arc bonds that pay no in the receipt to maturity. thus are federally insured up to $100,000. terest. Instead, the’bond is sold at a very deep discount until the bond actually matures. You can minimize the How many of these instruments will still be around in tax penalty, however, by buying “goose eggs” for an The giant brokerage firm has set up the TIGR so you and is redeemed at full face value at maturity date. The can pick your choice of maturities for virtuaily any a decade? I plead, with you again: “Caveat Emptor,” interest rate is figured into the discount. Zero coupons IRA or Keogb retirement account, where taxes are Let the Buyer (You) Beware! defferred until vou retire, presumably to a lower tax term over the next 29 years. As an iiiustration, say you (nicknamed “goose eggs" I issued by corporations carry want a college fund of $56,000 for a child in 18 vears You (Save money every day! Sylvia Porter’s Financial maturities ranging from six to 10 years. Typical cost, at bracket. can buy $6,400 of TIGR’s to grow to pay $14,000 a year for Almanac for 1983 is a comprehensive desk calendar and Israelis withdraw; recent interest rates, might bo $250 for a $1,000 bond due • Tax-free zero coupon bonds. These bonds have the consumer handbook featuring Porter’s best money .same function as other zero coupons, but are issued by four years starting in the year 2000. The annuai income in around 10 years, dr $520 for a $1,000 bond carrying the is taxable as it is earned from now until the maturity saving advice and tips for organizing your budget. Send shorter maturity. municipal authorities and thus are exempt from federal $8.95 plus $1 for mailing and handling to Financial tax. For instance, Virginia Housing Development date. But you can minimize that disadvantage by giving Attractions of zero coupon bonds are the low initial the receipts to your child under the Gifts to Minors Act. Almanac in care of the Herald, 4400 Johnson Drive, cost and the fact that the interest rate and the total yield Authority has zeroes due Sept, 1, 2014. A $1,000 bond sold Fairway, Kan. 66205. Make checks payable to Universal for only $20, to yield compound interest of 12.58 percent • Floating rate municipal bonds. These bonds were to maturity is set in advance and will not, fluctuate. A designed by the E.F. Hutton brokerage firm to take Press Syndicate.) disadvantage is that the interest is taxable each year as over 30 years — tax-free. Italians in Beirut By Philip Williams ^They should be out of all Beirut. whom may go ashore ’Tuesday or -fit -------------- Says U.S. on 'thin edge' United Press International The president of Lebanon said so, Wednesday and take control of Brief and we’re going in at the request of Beirut airport — were anchored Israeli forces airlifted troops and the Lebanese government,” offshore. equipment out of Beirut today as Defense Secretary Caspar'" .. ’The deployment of the trinatiohal Doctor picked U.S. Marines, waited offshore for a Weinberger said on NBC’s “Today” peace-keeping forces. Including the Eve A. Klipstein, M.D. of 53 Montclair Drive, is Banker-novelist disaster complete withdrawal from ' key show. But he said the Israelis had Marines, has been delayed since last .the new assistant' ' areas. But 460 Italian peace-keeping agreed to pull out of “limited” areas week by the continued Israeli medical director of troops wearing plumed helmets this week. presence in the Lebanese capital. i f - - marched ashore. Weinberger said Sunday an agree The 460 Italians came ashore and insurance medicine experience. at Connecticut By LeRoy Pope Lebanese President Amin ment “in principle’’ has been marched past a lone Israeli unit to The MBA’s are the worst offenders against American reached with Israel to allow 800 join 700 other Italian troops General Life In United Press International society, he said. “They have absolutely no idea of what Gemayel was reportly planning a surance Co. in the in trip to the United States and Europe Marines to come ashore “with any quartered at schools near the air NEW YORK (UPI) — An investment banker turned they’re doing and don’t understand the businesses luck, Tuesday or Wednesday.” port in the south. dividual financial they’re in because they got into business school without to promote his plan for the removal novelist says the United States is becoming a nation of of all foreign troops — Israeli, U.S. envoy Philip Habib arrived in ’The independent newspaper Al services division badly educated persons living on illusions and ever having held a real job.” Dr. Kl.ipstein Syrian and Palestinian guerrillas — Amman, Jordan for talks with King Nahar said Gemayel, who took of “trembling on the thin edge” of disaster. The result of the MBA’s influence, he said, “Is that we Hussein on FTesident Reagan’s Mid brings to Connecticut function in this country by assumption, not reality.” from Lebanon. fice as Lebanon’s seventh president General 12 years of Michael M. Thomas is the author of two popular In Israel, the celebration of Yom dle East peace plan which calls for a last week, wanted to address the experience in the novels about business, the current “Someone Else’s THOMAS’ INTEREST in art began as a teenager Kippur — the Day of Attonement — Palestinian self-government linked United Nations in New York and Hartford area. She Money,” and “Green Monday.” and developed at Yale. When he graduated he got a job stopped all activity after a week of with Jordan in the Israeli-occupied hoped to stop over in Washington, On the subject of “trembling on the thin edge,” he has recently served at the New York’s Metropolitan Museum. He stayed two public outcry over the massacre of West Bank; the state-run Jordanian Rome and Paris. as a staff physician said he is worried about “the simultaneous proliferation Palestinians in Israeli-occupied news agency PETRA said. Shortly before the 25-hour Yom of 'street people' and of limousines with dark window^s years, then realized he would have to find something a t Blue Hills that paid better and Robert Lehman offered him a job. Beirut. Almost 100 Israeli Hercules Kippur holiday began at sundown Hospital in Hartford you can't see through... They remind me of the In Tel Aviv Sunday, the Israeli ' transport aircraft and helicopters Sunday, two Israeli Cabinet carriages of the French aristocracy rumbling through He showed much the same aptitude for investment and the American military command said all Israeli reportedly landed at Beirut airport members ^ id they would propose at the countryside in 1789 with curtains drawn just before banking as his father and was made a Lehman partner School for the Deaf before he was thirty. troops would pull out of west Beirut through the night, taking out Israeli the weekly Cabinet meeting in West Hartford. the revolution that took them all to the guillotine.” by Wednesday, four days later than troops and heavy equipment out of Tuesday a full-scale investigation As for being badly-educated, he says we've forgotten Among the deals he handled for Lehman was putting A graduate of together the $4(X) miliion financing for Disneyland.