European Stars and Stripes (Newspaper) - December 31, 1991, Darmstadt, Hesse                                Page 20 b the stars and stripes tuesday december 31,1991 Money matter today s tip the nearly 42,000 Job seekers who responded to an allegedly deceptive Telephone a jobs line offer will share $1 million in reminds the Federal Trade commission said. The Etc said Friday that callers responding to classified advertisements placed around the country by Tran world courier services inc. Of Roswell ga., were told to Call �?o900�?� numbers. But the Agency said the people looking for work were not told the Calls would Cost $18  rates London up mondays rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $352.50 an ounce Sliver at s3.b5. _ a. Dec. 27 dec. 30 British pound.1.3772 1,5735 German Mark .1.5170 1.5085 French franc .5,1550 5.1825 dutch Guilder .1,7100 1.7125 belgian trans .31.28 3124 italian lira., .1,151.80 1,150.50 Swiss franc .1,3515 1,3540 greek drachma .174.40 175 00 turkish lira. .5,036.80 5.057.00 saudi arabian nyal.3.7505 3.7500 Spanish peseta .96.26 96.61 portuguese escudo. 134.75 134.60 Canadian Dollar.1.1595 1,1586 austrian schilling.10.65 10.60 norwegian krone.5.9620 5.9810 danish Krone .6.9070 5.9070 these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.48 through noon tuesday Banks will close Early for new years eve based on mondays noontime  of 15.8% posted in 91 by Small investors new York a Small investors posted profits of 15.8 percent in 1991, benefiting from a rally in Stock prices that swept the Dow Jones Industrial average to record highs in the last Days of december. The return on investments was nearly 6 percentage Points higher than the 9 percent  recorded during the last two decades by Money magazines Small investor Index. The typical Small investor portfolio tracked by the Money Magazine Index Rose $6,503 to $47,721 this year. In december a final week alone the Index gained $923 As the Dow average of 30 Blue Chip stocks finished above 3,100 for uie first time Ever Friday. Stocks posted the biggest increase by far of poll investments in the Money Small investor portfolio netting $3,919. Small company shares Rose 50.7 percent for the year nearly double that of Blue Chip stocks. Bonds representing about one fourth of the indexes portfolio contributed about $l,55o to the years gain As declining interest rates in the Economy sharply boosted Bond prices. Cash investments netted smaller gains. Bank certificates of Deposit returned 6.2 percent for the year while Money Market Mutual funds earned Only 5.1 percent. Those yields fell even further by year end. Electronics warranty failures leave buyers holding bag by Denise Gellene the los Angeles times Jose Lugo did no to hesitate when the Salesman at a Fontana calif., electronics store suggested that he Purchase an extended warranty for his new $899 Pioneer laser disc player. The 27-year-old Santa Ana calif., interpreter had saved for a year to buy the elaborate entertainment system and he wanted to avoid costly repairs. What Lugo failed to anticipate was that his expensive warranty Ana his laser disc would both malfunction. The Oklahoma City company that backed Lugo a warranty sought bankruptcy Protection in july leaving him with a useless $200 warranty and an $85 repair Bill. The shakeout in the intensely competitive electronics Industry is leaving millions of Consumers who bought extended warranties for peace of mind with financial headaches. Last Summers sudden demise of Oklahoma City based Etc inc. Amid charges that its chairman looted the company socked 3.2 million Consumers with an estimated repair Tab of $55 million. The collapse of the Long Beach  Leos stereo electronics Chain later that month came As a powerful aftershock in Southern California leaving thousands More Consumers with useless warranties. A a lot of people have lost a lot of Money a said Curt Augustine of the California consumer affairs department. He is among officials in several states who May seek legislation to protect Consumers when warranty Sellers fail. A it is an enormous  the extended warranty mess has not dampened sales As yet. One of every three Vars camcorders and washing machines received As gifts this Holiday season was purchased with extended warranties usually giving owners anywhere investors guide from one to five years coverage on parts and labor beyond what the manufacturer provides. With expensive items such As $2,000 projection televisions four out of five Consumers snap up warranties. It is Little wonder sales Are Strong. In the cutthroat electronics and appliance business where failures and bankruptcies Are routine warranties stand out As an Oasis of profit. Many retailers push them aggressively sometimes using tactics that skirt the Law. Most retailers make More on the warranties for an item such As a big screen television than they do on the Sale of the television itself. One reason Why warranties Are so a lot of people have lost a lot of Money. It is an enormous  a Curt Augustine California consumer affairs department demise of the crazy eddies electronics Chain in the East left 100,000 Consumers with worthless extended warranties. What few Consumers realize is that Only a handful of companies set aside funds to cover warranty repairs. This Means that when a warranty provider goes under there is usually nothing left for the thousands of Consumers who not Only lose what they paid for a warranty but get hit with repair costs too. Such was the Case with Etc inc. Although Little known outside the Industry Etc inc. Was one of the nations largest warranty companies. It also sold manufacturers warranties on such brands As go video Vars Curtis Mathes televisions and Lennox industries air conditioning equipment. Rather than set aside Money for repairs Etc used Revenue from new warranty sales to pay repair Bills. The strategy worked Fine until a recession hit the electronics Industry and put a crimp in new warranty sales. Unable to sell enough warranties to cover repairs profitable is that Consumers rarely use them. Although Consumers shelled out an estimated $10 billion last year for extended warranties much of that Money seems to have been wasted because appliances rarely break Down. Studies have shown that less than one in five people who buy a warranty Ever Call to have their product serviced. For people who like Lugo try to use their warranties the loss is compounded As the roster of defunct chains continues to grow. Pacific stereo fed Mart stores Gem co and Zody a Are a few chains that have disappeared from the California marketplace Over the last five years. The new cd a Cash dried up. According to new cd a court appointed bankruptcy trustee Etc needed to sell 10 million to 12 million extended warranties to cover repair claims on the 3 million outstanding warranties a a target difficult to hit even in Good times. The company a weakened finances were not helped try its chairman a alleged habit of dipping into new cd a Treasury to Jort a flamboyant lifestyle that included until this year a lavish annual Christmas party at his $1 million Oklahoma City gated estate. No one knows How Many millions of Consumers have been victimized by the spate of bankruptcies in the electronics Industry. But the giants in the extended warranty business such As Sears Roebuck amp co. And general electric maintain that their customers have nothing to fear. Retirement plan too Good to ignore by Bill Doyle q. My husband is 48 years old. He is fearful that his company if it follows established trends will Force him to retire at age 55. To prepare for an Early retirement would it be Wise to Start investing in a retirement savings program through his company which puts in 50 cents for every Dollar an employee invests or would we be smarter to pay off our House our mortgage payments Are $335 a month and we have 15 years left at 9 percent. The unpaid balance is $22,000. My husband earns $33,000 per year. For health reasons i do not work. A. Unless that retirement program invests in wild speculations which is most unlikely the company is making an offer you certainty should not refute. In your husbands shoes i would grab that offer and sock away As much Money As possible. By Matching 50 percent of employees contributions the company a arrangement provides a 33j percent discount on every investment your husband will make. It also increases the yield on investments by 50 percent. If your husband puts in $1,000, he will have a $1,500 investment. If the interest on the investment is say 6 percent hell get $900, rather than $600. That a much too Good a Deal to pass by. Here we re assuming the Money will be invested sensibly not in Fly by night Ven Tures. In most such retirement savings programs employees Are Given choices of different types of investment such As company Stock . Treasury securities and various Mutual Hinds. Many companies match part of employees contributions to such plans. However those Matching 50 cents to the Dollar Are so generous they Are relatively rare. Your husband should have signed up for that program As soon As it became available. This column has always favored Home ownership As a family a primary and Best investment but that does no to preclude latching on to an outstanding Opportunity such As your husband s company is offering. Q. Bank Stock i own is practically worthless. I asked a broker How to declare this As a loss on my 1991 income tax return. He advised me to write off my Hill Cost to this Stock. Then if any value is received for it in the future it would have to be declare As 100 percent income. Is this Correct if not what is a. You should have asked an accountant not a broker. The advice you got is dead wrong. You say that Stock is a practically  if it has any value whatsoever you have to sell it to report a capital loss a the difference Between your Cost and the proceeds from the Sale on schedule d of your form 1040 Federal income tax return. If the Stock indeed is worthless you can take a capital loss by reporting it As having a a a Zero basis Cost for tax purposes on schedule d. Q. I hold 300 shares of Stock in a Bank that went belly up in 1989. My broker claims the shares have no value. I understand i cannot report the Price i paid for this Stock As a capital loss until i am advised by some authority the shares Are worthless. I have never been so advised. What does a Guy do in a Case like this a. Report your capital loss. You Are incorrect about needing notice from a some  get a letter from a broker stating a there is no bid in any recognized Market for that Stock. Do not Send that letter with the income tax return on which you take the loss. Hang on to it in Case the internal Revenue service questions your capital loss. Q. In a told a capital gain for worthless Stock should be taken on the income tax return filed for the year in which the Stock lost All value. Stock i own became worthless in 1989. How can i claim that loss a. File an amended return a form 1049x a for 1989. In the Case of worthless securities amended returns can be filed for seven years. C King features Syndicate