Wednesday, November It, 1IM Money Matters Stocking the Shelter

Hie Herald and The Lantern

by Vince FnlginKJ Ust week we named the three basic varieties of pension plans used to shelter earnings from taxes. We establish these plans because the tax laws permit investment of pretax dollars into these vehicles thereby increasing our compound earning by as much as 50 percent. Once we have used our allotted quota of pre-tax dollars ($1,500-IRA or $7,500-Keogh), our remaining post-tax dollars could be allocated to municipal bonds or annuities for additional shelter. Once the contribution to the pension plan has been made, the decision still has to be made by you as the money manager of what the pension is going to use as an investment. Normally, the highest yielding taxable investments would be the primary candidates. This could be high dividend common stock, corporate bonds, money market fund, certificats of deposit, G.N.M.A.’s (government agency insured mortgages), or even gold certificates.

A few more esoteric pension plans have even tflitg oriental rugs, antiques, and Jewels. Nonleveraged real estate limited partnership interests are also a very practical investment opportunity for pension plans. If you happen to be incorporated, in addiUon to the corporate pension plan, there is a tax-shelter for corporations that permits significant advantages to corporaUons with retained earning. This is known as the corporate dividend exclusion. Very simply it grants corporations an 85 per cent tax exclusion on dividends received from stock holdings in other corporations. A corporation is, for example, the 46 per cent tax bracket would have to find a bond or C D. yielding 22.2 per cent to equal the after-tax yield on AA rated preferred stock paying 12 per cent. Next week we have a handy clip & save chart that will show which investments meet which needs. Be looking for it. Also, some of you have asked questions about financial matters that we

8^t, m .nd vice prr.klw.l Herbert Hom.hv (irM

have not covered yet in this column. As time and space permits, we will continue to answer these questions either through the column or directly to you. Send your questions to Vince Fulginiti, c/o The Herald. Box O, Avalon, New Jer-

sey-

Vince Fulginiti. a Wildwood resident, is an account executive with

Bache.

Page 11

City’s Funds Set Record In Earnings SEA ISLE CITY - The city has earned a record amount of .interest on idle city funds. $171,000 through the end of September, Mayor Dominic C. Raffa reported to the people during his "State of the City" message at last Thursday's town meeting. This compares to $131,000 earned for the full year ending Dec. 31,1979. Raffa also reported that the system of investment presently being used by Treasurer Gloria Giampetro is the same one that the State of New Jersey will make mandatory for all of the State’s 5«7 municipalities next Jan. 1.

New Ad Agency Bank Now Has George

Health Care (From Page 30) housing in Cape May County .. One of the four candidates for county freeholder came right out and stated a need for another hospital: I do think that we don't have enough hospitals in Cape May County. We had one in Sea Isie City up until the mid60s or so when it closed down and we only have one now. --Mr. Town The statement of one candidate in the recent campaign, while generalized, seemed to sum up the attitudes of all the freeholder candidates: As far as health care and education, there's always room for improvement. Perhaps most significant about the opinions of the four freeholder candidates is that the two pair of political opponents each shared the same view on the need for more physicians. It is one thing for political tyros to assert a need and quite another for veteran officeholders to

WILDWOOD — James L. Billmeyer. presider.l of the Marine National Bank has announced the appointment of Richard Yeager Associates of Moorestown as the bank's new advertising agency. The agency will i m . plemenl an entirely new marketing plan and corporate identity program.

take the same stand. For sure, the medical profession on the Jersey Cape doesn’t see a need for more doctors; only ways of smoothing out the peaks < and valleys of medical care needs and distribution of existing or available services. Health care professionals will also argue against building additional hospitals, stating that the only way to keep health care costs from skyrocketing is to regionalize services and consolidate or share expensive facilities and equipment.. From the consumer’s perspective, the thing to do is to continue pressing for solutions to documented health care problems. That should be somewhat easier than it has t the past, now that the politicians are on recoi u as being on the same wavelength as their fellow citizens who are susceptible to sickness and injury.

N. CAPE MAY - Guarantee Bank president and chairman Joseph F, Hradway Jr. has announced a new 24-hour George automatic teller machine opened a[ the bank's branch here last Saturday 1 The George system, available exclusively in New Jersey from Guarantee Bank, is part of a facilities leasing program of electronic banking between Guarantee Bank and Girard hank of

Philadelphia WITH GEORGE, Guarantee Bank customers will make deposits to and withdrawals from checking and savings accounts instantly. They will transfer funds, make loan payments and get receipts showing current account balances. 24 hours a day. seven days a week The bank has also introduced (leorge Bank-by-Phone which allows customers to perform bank transactions and pay bills from home or office with their push button phones

MODERN METHOD of banking transactions •George' was introduced Saturday at the North Cape May branch of Guarantee Bank. Lower Township Mayor Tom Clydesdale cuts the ribbon while looking on are branch manager Dond Dodson and township Police Lt. Chuck Thornton. The money on the ribbon goes to the Police Relief Fund.

Home & Commercial Services Guide

WALTER R. BOBINSKY Central cHanAyman CARPCNTMV Masonry Paintino Small Repairs No Jam Too SMALL 2761 DUNE DRIVE, AVAION. N.J. 08202

•Homst •CMfics*

•Rsntolt •Chongoovpf y

AVALON HOME CLEANING SERVICE. INC.

DAVID l RfED

TO PUCE IN AD CALL 967-3312

PAINTING CARPENTRY WALTER H. KRUSE Cl/^y "THE OFFSHORE t RAF TSMAN" cE—■— RT 1 BOX440N ' U CAPE MAY COURT HOUSE. NEW JERSEY OHIO . PHONE <609)161.JJ4I

TO PUCE A BUSINESS DIRECTORT AD CALL 967-3312

PAINTING BY CRAIG •RESIDENTIAL PAINTING* INTERIOR-EXTERIOR GUTTER SERVICE FREE ESTIMATES . 729-5154 939-4760

CAPE NURSES 886V REGISTRY 3473 - nurses aides PfllvArt . D0 „ NURSES • R.N •« FOB HOME or MOSKITAl CASE NJST licsmed * Bonded A NURSING CARE PLAN 104 HAVERFORD AVE TO SUIT YOUR NEEDS NORTH CAPE MAY HRlY OAKY WKIY

~E. THOMAS'ENSTICE Account Executive Tax Free Bonds Government Bonds Stacks DEAN WltTER REYNOLDS INC. I72t Pacific Avenut. Atlantic City. NJ 08101 (8001 MS-llSl ^

Authorized Dealer for Whirlpool & Zenith Appliances Wotch tbs Os mss On A TV from: