Wednesday, January 21,1981

The Herald and The Lantern

Money Matters Investor Wants A Lot, Can Get It

Page 27

By Vince Fulginlti ' Once upon a time, a man who had very definite ideas about his financial plan and knew what he wanted told his investment broker the following: "I am considering investing some money but I have some very exacting specifications. If I do decide to make an investment I want you to give me your written guarantee to protect me on several points, so that I may make this investment (without worry or concern., ••I HAVE NO need for income just now, »because these are the best earning ■ years of my life. My accountant just informed me that Uncle Sam and the governor combined will take over 50 cents of every tlollari' in interest or dividends my investments will earn. For that reason I want an investment that will compound free of federal and state income taxes until such time as I decide to redeem it. ‘Tm not willing to accept my depreciation of my original investment. "SHOULD I NOT want to sell the investment to you, I want your guarantee that it

will never be callable dur ing my lifetime and will continue to'compbund taxfree. i‘I would like you to tell me exactly What the investment I might purchase today will bV worth a specified number of years from today, and that your will guarantee to buy it from me for that amount, at that time. “I WANT YOUR guarantee that I can pledge my investment as collateral, thus enabling me to borrow up to 90 per cent to 100 per cent of its compounded value. “I want you to agree that you will administer the value of the investment for my heirs in tl\e event of my death, on such conditions that my heirs may elect, if I fail to do so. I wan*, you to give your absolute guarantee of principal and interest on the account so long as you are adminstrator, and I want you to agree to handle this administration witho.ut charges orfees of any kind. "I WOULD LIKE a guarantee that at my retirment, if I so choose, you will systematically liquidate all principal and interest to provide me a taion-

Bill would Aid Boro

TRENTON - Legislation to revise the state's in-lieu of tax payment formula and ihcrease state aid to Woodbine Borough in Cape May County has been introduced by Senate ^Minority Leader Barry T. Parker, R-Burlington. The legislation, if enacted, would provide an additional;. $17,000 to Woodbine, site of the state home for the severely retarded. PARKER'S bill revises the in-lieu of tax payments formula to give special consideration to those mua‘cipalities in which the value of stale-owned property exceeds 50 per cent of the taxable property value in the municipality. "It would increase the state payment share from the current 25 per cent to 50 per cent, doubling the amount the governing

thly income that would be greater than if I lived on interest alone. However, you must also guarantee that you will pay me this income no matter how long I livft. r\ want you to agree to allow me to redeem the in-

vestment in part, or all at once, and provide that I’ll never have to pay any federal or state income taxes on my partial redemption until I have recaptured my original investment. In the meantime. I expect any interest

earned during this period would be" deferred from taxation until, the original investment has been recaptured. • "THAT'S ALL I ask. If you will give me these guarantees. I definitely will make 'this investment." Now you may think the broker said such an invest ment does not exist, but it does. The investor just did

not know what to call it. Actually, all he did was describe some of the Current provisions of a Deferred Fixed Annuity: guaranteed principal, guafanteed interest, tax deferred earnings, guaranteed liquidity, guranteed lifetime^ncome, and freedom from prbbat^ .Vince FulftJnlti, of Wildwood, is an account ex ccutive with Bachc

bodies in those communities now receive," the Burlington Republican explained. "THE LEGISLATION is an effort to introduce an element of greater equity and fairness in the program;; he continued. "The state-owned facilities in thesd communities receive municipally-prov-ided and paid for services, road repair and the like." '"And, because the facilities represent tfuch a large part of the community, the state should be required to pay a fair share of providing those services," the GOP leader said. Parker, a candidate for the Republican nomination for governor, said he was hopeful the bill would win legislative approval before the current session expires, permitting the additional aid to be allocated for the next fiscal year.

WE SHOW

0

IN YOUR NOW ACCOUNTS STARTING JANUARY 1

\ON CONVENIENT CHECKING ACCOUNTS (NOW ACCOUNTS)

Open your account today: Be ready for the new higher rate. STOP IN AT ANY OFFICE

CAPE MAY COUNTY SAVINGS AND LOAN ASSOCIATION Serving All Cape May County

MAIN OFFICE 7 North Main St.

465-5186

Cape May Court Hou^e

DRIVE-IN 219 N. Main St.

Cape May Court House

3301 Atlantic Ave.

522-2447

Wildwood

1899 Baysbore Rd

886-2773

Villas

517 Washington St

864-8435

Cape May

40 South Shore Rd.

398-4500

Marmora

I COU^I

WILDWOOD ■"CAPC MAV

Home & Commercial Services Guide

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E. THOMAS ENSTICE Account Executive Tax Free Ronds Government Bonds

Stocks

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08401