European Stars and Stripes (Newspaper) - January 22, 1990, Darmstadt, Hesse                                To paychecks Fri disaster like most americans gis need to Start a new habit saving by Randy Mcclain financial writer military investors in Europe have a lot uncommon with their civilian counterparts Back Home according to overseas financial consultants. We be got a Middle american marketplace Over Here said David m. Smith president of inter vast International a financial planning firm based in Aviano Italy.  arc concerned with the same issues that worry most americans planning for retirement educating their children and buying a  problems arise when it comes to picking Thebes Way to meet those goals. The world of investments from series be savings Bonds to global Mutual funds can be a confusing one. There s always some expert on How to get Rich Quick touting the latest can to miss investment and Many service members arc so unaccustomed to planning for the future that they rarely have two dimes to rub together. In the military you run into people in their40s who have never invested said Warren Stanley an Independent financial planner i Walldorf. West Germany. A lot of people move around so often they Don t take the time to learn How to  a lot of soldiers Over Here Are in bad financial Straits but they re no different from the average american said financial adviser John Jackson who works with military clients in Central Germany. A lot of people live two paychecks away from  that sad fact leads to perhaps the Best advice you la get All year. No matter what your income Start putting a Little bit of what you earn to work every month. Start investing on a consistent basis. Put$200 a month aside said Martin Van leu Van. A financial planner in Vilseck West Germany. Van Luven s advice is echoed by almost every other investment Counselor on the continent. Even the common Soldier can put away $50 to $200 per month Jackson said. Set Structure for yourself. Get in the habit of saving. It s not really what you earn that important. It s what you do with what you  one suggestion Jackson often passes along tothe entry level  is to Bank his cola or Cost of living allowance. Cola is Layover and above a Scricc member s monthly salary. It s meant to compensate for a declining Dollar overseas but Jackson thinks it make sense to put that Money directly into the Bank instead of spending it. If you live on base you Aren t really Hurt by increased costs. So. Don t get used to having that Cash to  he said. For the More affluent investor financial planners in Europe have this advice diversify your holdings and think globally in 1990. Few .  invest i individual stocks traded on the new York or american Stock exchanges but thousands own Mutual funds. The military Market tends to be cautious  said Christopher Price a Berlin consultant with integrated financial planning services. They Don l go in for wild  financial planner Barry Swanson sees Opportunity in the explosion of peace in Europe. Price and other planners say the Best performing Mutual funds for 1990 May turnout to be global Stock funds especially those that buy Stock in West German and other european companies. Global funds Don t invest in single countries. Instead they spread the risk by buying Stock from several lands. Among the More popular global funds sol overseas to Servic members last year were temp Luton global. 16.53 percent return for the year ended june 30, 1989 Putnam International equities which turned in an 11.6 percent return for the same period and Oppenheimer global which delivered a 21.39 percent return. All figures arc according to a recent Survey by investment company data inc. These and others arc still Good bets for the next 12 months according to a number of planners. We re having an explosion of peace in individual retirement accounts iras Aren t the deals they were prior to tax Reform but they still retain some attractiveness both As a method of saving Money and As a tax break. Ii you Are covered by a retirement plan at work Ira contributions up to $2,000 Are still fully tax deductible under some circumstances. It All depends on your income. Here Are the rules single or head of household adjusted Gross income at least $0 but less than $10,000 full deduction at least $10,000 but less than $25,000 full deduction at least $25,000 but less than $35,000 partial deduction Over $35,000 no deduction married filing jointly adjusted Gross income at least $0 but less than $10,000 full deduction at least $10,000 but less than $25,000 full deduction at least $25.000 but less than $35.000 full deduction at least $35,000 but less than $40,000 full deduction at least $40.000 but less than $50,000 partial deduction $50,000 or Over no deduction married filing separately adjusted Gross income at least $0 but less than $10.000 partial deduction All other categories no deduction Europe and that s going to create All sorts of business opportunities said Barry e. Swanson a certified financial planner i Heidelberg. West Germany. He said buying into global funds will give investors a Chance to capitalize on the peace dividend. And if the russians invade you can Call most Mutual funds on the Telephone and switch int government securities he said. Swanson and other planners say the popularity of Mutual funds among military investors can be easily explained. The majority of investors Don t play individual stocks because they Don t have enough Money Swanson said. It s More sensible he said to put $100 a month into a Mutual fund with millions invested in do ens of stocks than it is for a Lone investor to sink afew thousand dollars into two or three companies traded on Wall Street. You re in double jeopardy sitting i Frankfurt or Heidelberg trying to figure out the Stock Market he said. It s Lough enough when you re in new  that does t mean every Mutual fund is a sure Winner. We be had a Bull Market going through the decade of the 80s. And whenever you get an extended Bull Market you la have a lot of people trying to get on the bandwagon Swanson said. He characterized Many of the Mutual funds registered with the securities and Exchange commission in the last few years As Johnny come lately to the Bull  Swanson said the younger a Mutual fund is the More wary an investor should be. The investor accepts a much higher level frisk if he considers a Brand new or relatively new fund. I d be very sceptical he  suggests checking out a fund s track record Over the past five or 10 years before putting Down any Money. One exception to the Rule might be when a Brand new fund is created within a Well established family of funds with history of Strong results. Then you re on More solid ground he said. As a general Rule Swanson thinks 1990 will provide investors with a Chance for continued double digit returns from Many Stock based Mutual funds. But not All financial advisers Sec continue growth in stocks. Dan Ringger vice president of Massachusetts based Bond timing services inc., believes the next year will be stronger for Bonds. We arc in the mature stages of economic expansion and corporate profits have been on a Down trend for the past six to nine  Ringger. Whose firm started seeking clients among its.  in Europe last  predicts the Slock Market will grow by no More than 5 or 10 percent in the Yea ahead. He suggests investors with their Eye on Mutual funds buy a government Bond fund instead of investing in Stock funds. 16 is financial planning guide january 22,1990