European Stars and Stripes (Newspaper) - November 17, 1985, Darmstadt, Hesse                                November 17, 1985 the stars and stripes Page 19 business news merchants Bank on big Christmas sales new y9rk not despite six fewer shopping Days this Christmas season than last retailers und economists expect the Holiday period to produce sales gains of 6 percent to 10 percent Over 1984. The forecasters say pent up demand for merchandise of Many sorts improved regional economies and better planned inventories will help to overcome the shortened season. Nonetheless the merchants Are girding for what they say will be a difficult hectic period following thanksgiving Day when the season formally starts. With thanksgiving falling on nov. 28, six Days later than last year Many retailers Are planning even longer store hours than usual for the holi Day season to make up for the loss of nearly a week s time in the year s most important shopping period. They Are also planning to hold More sales in the first few Days of the season. We see this Christmas As the toughest in some years because of the six fewer sell ing Days said Irwin arc Enburg president of Hess inc., which operates 39 stores in the mid Atlantic states. We will just have to sock in a lot of business in a Shorter  William r. Howell jr., the chairman and chief executive officer of . Penney co., the nation s third Larj gust general Merchan Dise retailer said the tremendous com pression of the season must be a negative  Bui he added we think that december will be very Good because of the competitive climate the cleaner inventories and the investor s guide q. Been Tow hit Ginnie Mae is Good Way to intent for income. I found out hat nickname Hinds for govern men National mortgage association Paas through Security. But that s about ill i do know about this. I have $50,000 i would like to put into some investment that pays Good interest and is absolutely Safe. Is a Ginnie Mae As Safe As a federally insured Bank certificate of Deposit a. A Ginnie Mae pass through Security represents a share of ownership in a Pool of mortgages insured by the pc Cral housing administration or guaranteed by the veterans administration. As Home owners make their mortgage payments that Money is passed through to Ginnie Mac investors in monthly payments. When you own a Ginnie Mae timely payment of that interest and principal is guaranteed by the full Faith and credit of our Federal government. So if you buy a newly issued Ginnie Mae and hold it until All the mortgages in the Pool behind it Are paid off the face amount of the Ginnie Mae the Money you invested will have been returned to you. However if you sell the Ginnie Mac before All the mortgages Are paid off you might get More or less than the remaining unpaid balance on your share of the Mort Gage Pool. You la get More if interest rates Nave dropped less if interest rates have risen. That makes a Ginnie Mae As Safe As a cd. After All if you redeem a cd before its maturity you re hit with an Early withdrawal penalty.  daughter is finding it difficult getting by on the monthly interest checks she receives from her Ginnie Mae. The broker who sold this to her said she would receive an a rage of $600 per month. Her Ost recent Check was Only $39. How can ibis be explained a. No doubt because some of the Mort gages in the Ginnie Mae Pool were paid off Early. Your daughter must have received her share of those prepayments in one or More of her earlier checks. As a result there now Are fewer mortgages in the Pool and lower total monthly payments More Forward look of Spring  he said he expects sales to Rise 6 percent to 7 percent Over last year. The sales increases expected in the sea son would generally parallel the 1984 holi Day performance but would compare unfavourably with a slightly higher double digit gain in 1983. However profit margins Are expected to be better than last year when excessive Price cutting adversely affected fourth Quarter results. The predicted earnings gains for this year Are attributed to improved buying and inventory accumulation. Retailers have had ample Opportunity to prepare for a Christmas period that will surely be highly Price promotional said Walter k. Levy who Heads a retailing marketing company under his name in new York. Last year they were pulled into a Price cutting environment. This year they Nave readied themselves with goods they can sell at promotional prices but with bet Ter  the Holiday period is coming after a Dis appointing fall business. The trend has been slightly upward of late but october sales reported late last week by the nation s larg est chains did not quite remove the slug Gish Label pinned to retail business All year. I would say that my attitude is one of cautious optimise said Stephen e. Wat son the chairman of Dayton Hudson department stores based in Minneapolis. But each Day As business Falls below my expectations my emphasis is More on Cau Are being made making her monthly checks smaller. Those monthly checks Are not All inter est. Part of each Check is interest part is payment of principal on the mortgages. Each month the interest portion becomes smaller and the principal part larger. That s Normal on mortgages. Lei s Hope your daughter is aware that even As regu Lar payments arc made on the Morlaes she s collecting principal and the value of her investment is decreasing. When All the mortgages in the Pool behind her invest ments arc paid off. Her Ginnie Mac will be Worth Zero. Q. How can i find out the remaining amount of principal in the mortgages backing my Clunk Mae a. With each Check you receive an issuers monthly remittance advice statement to an investor. Line f of the statement lists the outstanding balance the amount of the mortgages still to be paid off. Q. Do i hate to sell my Ginnie Mae through the broker from whom i bought ii i d rather not do any More business with that Brash Young Man. A. There s an Active secondary mar Ket in which already issued Ginnie macs Are traded. You can sell yours through almost any securities brokerage firm. Q. Is there any Way to incest in Ginnie Maes and receive Only the interest i d like to keep my principal invested. A. Yes you can invest in a Mutual fund holding Ginnie Maes and arrange to re invest the principal payments in additional shares. The Mutual fund will pass the in Terest payments along to you As dividends. This arrangement is suitable for people who want to receive income while keeping their principal investment reasonably in tact. The value of the Mutual fund shares of course wll Rise or fall a bit going in the opposite direction of interest rates. King of Talburtt column Dom Wal Conyl will ten qum Slont but it pm pro Vidal new Al Only Nihro Rohim column. You on writ to him in cot erf to stat and sir cml. Apo Mil . Forcett lion and less on optimism. We find that the right stuff Sells very Well and the rest does t. The shopper is very selective and there in t a lot of buying  that should change after thanksgiving however say a number of economists. Allen Sinai the chief economist for Shearson Lehman Brothers said that while we will see very disappointing results for both october and november that won t necessarily be bad news for  after several months of buying retrench ment he said a resurgence of purchasing by Consumers could be expected in this special time of the  among the categories of merchandise that arc already showing Promise said retailers arc Fine jewelry diamonds Cash Mere sweaters brass and Silver gifts including serving dishes clocks and vases personalized goods such As monogrammed towels sweaters and shirts and video Cas Sette recorders including combination re corders and cameras. Sportswear such As heavy knit sweaters and separates in men s clothing has been Selling Well. Among the disappointing categories arc toys suffering from the Lack of one hot new item such As the cabbage Patch  As one retailer expressed it radios which Are adversely affected by the Boom in video cassette recorders and Large television sets and at some retail chains various Home furnishings items. Federated department stores of Cincin Nati the nation s largest operator of depart ment stores expects the new season to continue the present trend Strong apparel but disappointing Home furnishings  said Donald Stone fisc s vice chairman. Stone said the company believes that its inventories and operating plans Are so structured that we will recoup most of our margin losses of last year because we have better More timely assortments of  unlike the other retailers however he believes that the Shorter season will not be of material effect. Consumers spend when they want to spend he said at scars Roebuck & co in Chicago the nation s largest retail i spokesman 1-Rncst arms reported Hal the company is will position cd to take advantage of increased Home appliance sales electronics and Home  he said we re cautiously optimistic about the fourth Quarter in general and the Christmas season in particular. We cup Cal the general merchandise Industry to have a 6 percent increase in the fourth Quarter Over 1984, with merchandise inflation remaining very  arms said recent reports about increased consumer spending higher factory orders and More sales of existing  suggest Hal the Economy is Alread beginning an  Wall St. Hopes transfers of iras easier in 86 Washington a before next year s Rush to invest in 1986 iras Wall Street Hopes to Deal with one of the biggest complaints registered by Consumers against individual retirement accounts the diff Cully of Iran furring Stock from one broker account to another. To solve the Transfer headache the new York Stock Exchange drafted a new Rule to expedite the transferring of All securities including iras from one brokerage House to another. The National association of securities dealers wrote a similar Rule to gov Ern the Over the counter Market the new rules have gone to the  for approval which is expected within 60 Days. In the interim the National so curlies Clearing corp. Sci up a Pilot program called the automatic customer account Transfer to see what can be done to Speed the transfers. Thirteen firms arc participating in the program and 2,800 accounts have been transferred since oct. 11. When the Sec approves the new rules the a Sec will handle inc paperwork for transfers on a permanent basis. 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