BUSINESS a Spicy Treat Changes in Store State GOP from Indian Cook for Cable System Courting Labor Do You Throw Away 20% of Your Income R
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20 - MANCHESTER H ERALD . Tues., Jan. 18, 1983 BUSINESS A spicy treat Changes in store State GOP from Indian cook for cable system courting labor Do you throw away 20% of your income r . page 13 . page 6 page 21 And a lot of people, he contends, are blowing big who’s not looking to hit a home run, but ratljer to H ere’s something that’ll get your blood boiling. You chunks of their income — upward of 30 percent— by un- preserve purchasing power, Goldberg believes onfcoi probably threw away about 15 percent of your income necessarily paying double taxes (on earnings and in- the very best income-producing bets for investors wiin last year through shoddy handling of your taxes. In a lot terest income) and failing to utilize potential annual over $50,000 of annual income is the Phoenix l o s i n g of cases, especially among the highly income brackets, Dan Dorfman savings for retirement programs. Growth Fund (also a division of Phoenix American). the losses ran as high as 30 percent. And the sad story is Earnings of $25,000 to $30,000 a year - the average Here the partnership uses an invested dollar ana that this occurred in many instances where healthy fees Cold tonight; yearly income for an American family of four — may though leverage (or borrowing power) buys $1.50 worm .Manchester, Conn. were doled out to accountants to help minimize the tax Syndicated not seem ripe for tax shelters, given the low tax , of equipment; thus the annual rate of investor return sunny Thursday Wednesday, Jan. 19, 1983 bite. Columnist bracket. But there are attractive income-producing which has been averaging and is expectM to cOTtinue to So the moral of this column — if you’re anxious to save nrograms, observes Goldberg, that offer some partial average around 27 percent — is based on 150 percent — See page 2 a buck — is to start looking at ways to avoid blundering Single copy 25<f tax benefits for families in ttis bracket. of the fund's money being at work at all times. again in ’83. Goldberg observes that by re-investing and buying Here’s a case history to illustrate what I’m talking lfflanrl|rstrr HIS FAVORITE — in fact, it s his No. 1 choice for equipment every year, the fund is minimiziilg the about. IRA plans — is the Phoenix Leasing Income Fund, obsolescence factor which is the single biggest risk in T \ K K FRED G R E E N W ALD (that's not his real Baicor Realty Equities, a portfolio of about 10 separate Phpenix, a division of Phoenix American Oirp., leasing investment. n name), 43, married, two children. An engineer, Fred real estate properties (both residential and commer equipment (such as word processors and mini- ^ v i. * computers) to the federal government. Since ’73, it has FOR THOSE in the $75,000-plus income bracket, owns his own home, earns $35,(KX) a year, has a pension cial), mostly in the Sun Belt. paid its investors about a 20 percent annual cash dis- Goldberg’s best tax-saving bet is Southmark-Envicon, a or profit-sharing plan at his company, also insurance 3) Another $10,000 would go into American Leasing tribution. real estate tax shelter. Here the minimum investment is and medical benefits, and has about $30,000 of savings Investor, a portfolio of equipment (such as corporate Goldberg, who has put his parents’ money into $50,()00, payable over four years. And (say in bank CDs and money-market funds). His soouse, aircraft, computers and trucks) that is leased to the Phoenix as well as his own, figures the computer in- nually 150 to 200 percent of your investment. In aM ltio , U.S. tr<x>ps Sandy, works part-time and brings in another $10,000. Fortune 500 companies. dustry in the ’80s is what the oil industry was in the ’70s. an average annual return of 8 percent is projected over After exemptions for four dependents-, the Greenwald The combined investments in Baicor (a division of ■ He estimates a continued 20 percent cash distribution the next 10 years. i. mnc nnn family has a taxable income of $40,000. And so they’ll American Express) and American Leasing (a division >> -: :*■} over the next 10 years and says this is a conservative A rundown of Goldberg’s favorites for the $25,000, 4 have to pay about $11,000 in federal and state taxes. of Integrated Resources) add up to another $3,900 in tax way to play the computer industry since as an investor $50,000 and $75,000 income earners is laid out in an ac- That’s awful if they do it. The reason: With some in savings. In both cases, the investor is writing o ff against telligent tax planning, the Greenwalds would only have taxable income about 50 percent of the investment in the you own the computers and the leases and not just the companying chart. ■ stock. Goldberg’s parting words: "Because of lack of to pay $5,400 in taxes — saving themselves $5,700 or first year; the balance over the next thred to four years. to rem ain Two other Goldberg favorites for the $25,000-plus in- knowledge of the tax laws, poor advice and procrastlna- roughly 15 percent of the total family income. AMERICAN LEASING is projected to return an an come bracket — both partially tax-sheltered — are the tion, most people in this country — including many of The specifics are spelled out by Gary Goldberg, who nual cash distribution to its investors of 14 to 16 percent Petro Lewis Oil & Gas Income Fund, a producer of oil the very high earners — are shortchanging their poten- runs a successful financial planning service (Gary a year over the next 10 years; Baicor in the same period and gas properties in the United States, and NTS tial net worth. Unless you’ve got money to bum, the Goldberg & Co.) in Spring Valley, N.Y. The firm has is expected to return a yearly cash distribution o f 5 to 6 about 2.000 clients with yearly incomes ranging from Properties, a real estate partnership focusing on question is: Why be a financial boob?” percent, with the added plus of potential capital gains about $25,000 to over $6 million. income-producing properties. Best bets for chopping taxes from the sale of properties. Over the next 10 years Petro Lewis, which requires a boosting your Income Goldberg, whose firm focuses on limited partnerships in Lebanon? H ERE'S H O W Goldberg says the Greenwalds could minimum investment of $2,500, is projected to pay out ^2 5 000-pius income , save the $5,700. for tax shelters, income or both, tells me that if you’re about 14 percent annually in cash distribution: NTS, (jj.ooo to $10,000 in investable dollars) 1) Both Freddie and Sandy would each set up an IRA paying 50 percent of your income to Uncle Sam and you requiring a $5,000 minimum investment, 10 to 12 percent By Mel Laytner Draper, meanwhile, were holding a plan (2,000 each) that would save them a combined $1,- really only have to pay 20 percent with proper tax annually. ......................................................................Est. annual second round of talks with Foreign 800 in taxes. saving investments, you don’t have to be an M.I.T. ......................................................................... cash Dist. United Press International Minister Yitzhak Shamir and other 2) The Greenwalds would put another $10,000 into graduate to know you’re doing something dumb. DESCRIBING HIMSELF as a conservative investor .over 10 years U.S. envoy Philip Habib called for key Israeli officials today but ............ p e r stationing American soldiers at ear details of their meeting were not (F) Phoenix Leasing zincome Fd. (IP) 20 ly warning stations in south Lebanon disclosed. Petro Lewis Oil & Gas Income Fd. (IP) 14 pJn b r ie f to meet Israeli demands for security (Ha’aretz said Tuesday Habib NTS Properties (IP) 10-12 arrangements before withdrawing reached an understanding with Hardfimes $50,000-pIus Income Prime Minister Menachem Begin its troops, it was reported today. (20,000 to $50,000 in Way heads Israeli Foreign Ministry officials last week to work out joint U.S.- declined to comment on the report Israeli principles on force 20,000 clamor for jobs in M ilw aukee (F) Phoenix Leasing Growth Fd. (IP) 27 V t in the Hebrew language newspaper withdrawals, then present them to T ravelers ’ • Petro Lewis Oil & Gar Income Fd. (IP) 14 Ha’aretz, which said Israel was in the Lebanese. SouthmarkEnvicon (TS) (real estate » sisting its soldiers staff at least HARTFORD — Alva Way, president of American between $10.50 and $12 per hour. Hall, demanding Mayor Tom Moody shelter) 8 T H E A M E R IC A N -IS R A E L I talks By William C. Trott three warning stations. About 45 unemployed people took authorize an old firehouse as a tern- American Leading Investors (TS) 14-16 apparently were.aimed at speeding Express and former chief financial officer with United Press International Ha’aretz said today Israel was General Electric, has been named president of The up residence under a freeway in San porary home. Baicor Realty (TS) 5-6 up the Lebanese-israeli negotiations demanding its own soldiers sit in the Travelers Corp., it was announced today. An estimated 20,000 people, fin Jose, Calif., last week and city, "W e believe the city’s inaction is 20th Cent.