European Stars And Stripes (Newspaper) - September 21, 1986, Darmstadt, Hesse                                Sunday september 21, 1966 the stars and stripes investor s guide by William Doyle q. My wife and i live fairly comfortably on our social Secu Rity and my pension. But the pen Sion will Stop when i die. We also have $42,000 in a Bank Money Market Deposit account currently paying about 6 percent an another $42, 000 in the Sav Ings and in vestment plan of my former employer now paying 13 per cent we keep $10,000 to $12,000 in savings and checking a Doyle counts and have $79,000 in certificates of Deposit maturing in two months and $60,000 in cd Matur ing in 14 months. A broker suggests we. Put some of our Money into income Mutual funds holding Long term govern ment and corporate Bonds. Should i follow that advice or stick with cd i Don t want my wife to have Money worries after i m gone but i would like to have a Little More to spend while i m still Here. A. Follow the broker s advice in moderation. That will give you More spending Money while not taking on a great Deal of risk. You re certainly entitled to have enough Cash coming in to enjoy retirement. An income Mutual fund collects interest from the Bonds it holds and after deducting its operating expenses passes that Money along to fund shareholders As dividends. Most income Mutual funds pro vide higher yields than most cd. But be aware you would be Tak ing on some risk. The Market value of Bonds and of shares of Mutual funds holding Bonds go in the opposite direction of interest rates. If interest rates shoot up the value of your investment in in come Mutual funds will fall. Q. I have $200,000 i want to in Vest Over the next two Yean and Nave conceived the following  a Mutual fund family i will initially place the entire$200,000 in their Money Market Mutual fund. Then every three months i will Transfer $25,000 to their High yield Bond fund thus averaging my net asset value per share the Price at which i buy shares of the High yield Bond fund. I feel comfortable with this plan. Do you see any Pitfalls a. The Only possible pitfall will open if the per share value of that fund drops and never recovers. While that s possible it has to be counted As unlikely. Q. Your column has taught me to steer Clear of Load Mutual funds sold by brokers with commission Sas High As 93 percent and to invest directly in no Load Mutual funds on which there is no commission charge. What is your opinion of High yield Bond funds also called junk Bond funds Are they risky a. Those Mutual funds hold Bonds rated below investment Grade ratings lower than bbb by Standard & poor s corp., and Baa by Moody s investors service. Junk is really a harsh nickname for most of those Bonds. Defaults have been relatively rare. Because they Are considered less secure than investment Grade Bonds they pay higher interest As a result Mutual funds holding junk Bonds have higher dividend yields. Page 19 business news Market edges slightly higher but Confidence appears shaky by Ellen Freilich up1 business write new York the Stock Market edged narrowly higher last week in a Leaden Bounce from the Confidence shattering fall recorded a week earlier. The Dow Jones Industrial average picked up 3.93 Points to finish at1762.65 after plunging a record 141.03 Points the week before. Advancing issues edged out gainers 996-968 among the 2,181 traded the Market finished mixed every Day of the week except Friday when it ended narrowly lower. Tentative bargain Hunting after the prior week s Price slashing competed with Pettous Selling throughout the week. Investors also seemed inclined to remain on the sidelines in front of Fri Day s so called triple witching hour. The witching hour comprises the simultaneous settlement of september Stock Index futures and expiration of options on those futures contracts and options on individual stocks. It occurs quarterly and has been linked to wild swings in Stock prices. This Friday How Ever the Dow passed through the hour with Only modest losses. Analysts said much of the activity connected with the phenomenon had been completed gradually in the two weeks prior to settlement. Hugh Johnson head of the investment policy committee at first Albany said the Market s behaviour last week was poor. Intense Selling a week earlier combined with last week s stabilization in the Bond Market gave the Stock Market a excuse to Bounce he said. Johnson said the Market s failure to attract much buy ing was disconcerting. James Andrews head of the institutional trading desk at Janancy Montgomery Scott in Philadelphia said the Market was thoroughly shaken by the two Day plunge sept. 11-12. If anything we have a Way to go be fore the decline is finished Andrews said. If the Dow rallies Back up to 1790or 1800, a lot of people will be looking to take profits and we could have another severe correction he added. Barry Berlin president of Scarson Lehman equity management said the Market could have done worse consid ering the prior week s  he said action this week should be Choppy a Money managers adjust their portfolios before the end of the third Quarter. Dan America gave up i to 11 % As it fought what it called groundless and irresponsible rumours about its financial health. The Stock suffered the most on thursday but on Friday the Stock recovered a Large portion of the week s de Cline. Western Pacific was a big Winner jumping 27 to 162 i. It agreed thursday to be bought for $155 a share by an in vestment group led by Gibbons. Green Van Macron gun a private investment banking firm. Over nit transport rocketed 10 a to42yi on news that it has agreed to be acquired by Union Pacific Lor $43.25 a share in Cash. Union Pacific lost i to 56. The Dow Utility Index Rose 2.31 to 201.09. The Dow transportation average jumped 42.75 to 780.13. Standard & poor s 500-Stock Index Rose 1.54 to 232.21. The new York Stock Exchange composite Index edged up 0.68 big Board volume totalled 714,051,540 shares compared with 910,209,180 a week earlier and 486,093.990 during the same week a year ago. Composite volume totalled 844.783,440 shares compared with 1,060.033.480 a week earlier. Prices ended narrowly mixed in mod crate trading on the american Stock sex  american Stock Exchange Index Rose 1.88 to 259.12. Declines edged out advances 384-381 among the 919 issues traded. Volume was 54,774,845 shares compared with 69,698,055 last week and 35,595,930 during the same week a year ago. . Industries led the Macx actives rising a to 6 i. Wickes followed. Horn & hardart was third climbing to 15. Many now balk at Early retirement new York not with corporate drug problems on the Rise an mergers often causing dismissals person Nel managers face still another problem a changing attitude toward retirement. Many employees want to work longer. For years some managements have sweetened the pot for workers who retire Early. A company thus reduces the High payroll Cost of older employees trims the size of its Overall staff and assures newer employees a better Chance of promotion. Now All of this has begun to change. For one thing the work Force is aging there Are More older workers in proportion to younger ones. Instead of encouraging the older worker to retire the emphasis will be on ways to encourage longer work Force participation Linda Moncrief an actuary for the Wyatt co., a management Consul Ting firm commented recently. She has written a report retirement who wants it the baby Boom generation of the Stock pulse 1950s was followed by what she Calls a baby bust a period when birth rates dropped sharply. This reversal of a trend has Many implications for personnel managers. For example moncriefs study shows that in 1890, when there were few pension plans and no social Security Only 32 percent of male workers Over 65 years of age were retired compared with 81 percent in 1980. In those Days female workers were not numerous. As a result of medical advances peo ple now live much longer. This has caused worry about the financial stability of government programs such As so Cial Security. As a partial solution in 1978 Manda tory retirement was banned at any age for government workers and before age 70 Lor almost everyone else. Now pro posed legislation in Congress would let All workers continue past 70. There Are other factors too. People who expect to live longer worry about by in Lute Praia Numal Toul c 19m Friday 8eplmb1�, 1966 nose comp Oatta Moil Active by volume Stock Day vol Clou Eami be Vul us up 17.512.800 2514 $1.08 230 48 Yucom 1 9.374.000 40k 022186.0 07 my Alt i 2,748.300 14 Bankar 2.422.700 11% 2j40.900 39 5.9 2.235.700 23% 1.49 160 5.1 1.676,700 36% 3.26 11 0 60 1.670.300 136v. 10.53 13.0 32 1.377.700 18h 2i  Channel Amei cont Point Moel act Vee by volume div Syl Slock Wickas Bat m eco bin inst pm wangle Terai at Home Gap Placer d Home shop i in torn Mil vol Oom Eami be old 746.900 4h f 0.30 15 0 726.500 6s 066 100 30 406200 22v, 05 260.400 1% 024 70 269.500 13% 035 390 12 247.400 30 232.900 19k 0 07 276 0169.500 no 10 176.700 32v. 0.4 740 167,700 15v, ism in nor Walpe Celanie Alap pi9.44 Venlon Grigry i  162ft 4 $ 945 17.0 1.4 trivial Minim 205v. 3% 101 h 3� 43v, t 3% 44v, t 3 61 3 43 3 26v. 2s 10114 2% 105v 2%. 16.48 12.0 2.s 13 2.41 180 1.1 2.40 19.0 2.1 331 19.0 20 2 58 17.0 2.1 2.94 9.0 0.5 6.10 17.0 3.4 6.30 17.0 0.7 Slock refer Lnu Oreen Bro bpm sewn a Seaborn us con Tut Vba Emit b Hubble eco bin Amei Compo Alu Laignel he Chengel com Chi be earns be old 107 3 12v, 2% 25 2 22 1 130 1k 22% t 1% 29 1%22 � in. 27k 1vi 22v, � is 033380 1.17 21 0 4.04 60 35 11.45 110 04 3.30 70 22 1 60 180 2.1 404 50 3.6 2.03 14.0 3.0 0.5 Del deft Veninga Lauvil w Northa unaudited. Inflation even though it is Low now. Upon retirement at 65, a Man can expect to live about 15 More years and a woman about 19 More years. So even if the consumer Price Index inches upward at Only 3 percent a year after 15 years the total has grown to More than 45 percent a sizable chunk out of a fixed pension and out of social Security even though the government payments Are somewhat indexed for inflation. And older people have come to fear soaring medical costs even More. This Means that older workers need to think earlier about preparing for old age and Many will have to consider continuing to work past 65. Moncrief commented i predict a change in what has been the expected to retire philosophy " some companies she said have already taken Steps to help Case their retirees financial fears. The travellers insurance organization for example has been a Pioneer in Recal Ling its retired workers for part time work during Busy periods and summer vacation schedules. I agree absolutely that human re sources managers arc going to have prob lems people will want to work longer said William Parsons president of Senn Clancy management consultants. This change in attitude he said comes at a time when companies Are imposing stricter performance guidelines on Man agers. Edward Davis managing director at Mercer Meidinger management Consul Tants agreed about the growing use of performance guidelines. Presumably employees whose work is considered Superior May be allowed to stay past the Normal retirement age but others May not. Davis foresees a need for More flexibility in pension plans to serve both those who want to keep working and those who want to retire