European Stars and Stripes (Newspaper) - June 17, 1992, Darmstadt, Hesse                                Page 20 a the stars and stripes wednesday june 17, 1992 Money matters More direct investing seen in Market individuals break with brokers by John Cunniff via business analyst new York a a do it yourself movement seems to be gathering strength in an unexpected area the Stock Market. After having declined for More than a decade individual direct investment in stocks is growing. Interest in Amateur investment clubs is surging. And More investors Are buying shares in companies without help from a broker. The renewed interest in direct investment follows a decade during which most of the new activity in securities markets was through intermediaries such As Mutual funds in which the individual leaves decisions to others. The amount of Money invested by households directly in corporate stocks fell sharply through much of the 1980s, and Selling increased. Federal Reserve data show that in the past seven years net ownership fell $550 billion. But during the last Quarter of 1991 came indications of an abrupt change in philosophy a net direct investment Rose $27 billion. And now there Are indications the buying is part of a new pattern rather than a Fluke. The pattern is evident in records of the National association of individual investors which has seen membership grow from 17,460 a year ago to More than 23,000 this month and in files of the National association of investment clubs where the number of clubs has grown to Over 8,000 from 7,210 a year ago. Both organizations arc part of the National association of investors corp., based in Royal Oak mich., which has been kept busier than usual answering inquiries about forming clubs membership and related information. Thomas of Hara chairman of the corporation s trustees said the 34,414 inquiries received last year marked a record. But this year he said the interest is a fabulous a numbering 30,828 through May. While Many inquirers seek information on club formation the Nail also finds a surge of interest in its Low Cost investment plan in which individuals May Purchase Stock directly from More than 90 companies. The concept is a refinement of dividend reinvestment plans in which corporations allow shareholders to reinvest dividends in additional Stock and to invest additional sums directly with the company. The Nail carried that idea a step further. Whereas most reinvestment plans require an initial Purchase through a broker before allowing direct investment the Nail plan allows members to buy the initial share in any of 90 companies and use it to begin direct investment. Either Way the broker is eventually out of the Loop. The individual May choose to make Small monthly or quarterly payments to the company which buys additional shares or partial shares in the persons name. The arrangement is especially suited to Small Long term investors because of the unusually Small amounts of Money that can be invested at any one time and because of the minimal fees involved. Many such programs have no fees at All. While fresh interest in direct ownership seems to be at least partially a result of Money fleeing certificates of Deposit of Hara believes that Many individuals believe they can outperform the Market. The records show he says that amateurs can do As Welt As professionals and that in Many instances they do better even much belter. A random Survey of club members last year showed an average return of 14.9 percent. A we find that in real Good years our clubs go Well beyond the Standard amp poor a average and that in poor years we tend to fall behind because member clubs often own smaller More volatile stocks a he said. His own club the Mutual investment club of do Rod that included some poor markets. With monthly investments of As Little As $10 or $15 a month they have troit has averaged about 12 percent for 50 years a be Al tic As $10 or $15 a month they t $2 million in assets. But the real return is immeasurable. Members bought houses studied abroad sent children through College and. Funded businesses. Now seven members Are drawing Money for retirement. In All members have withdrawn $1.5 million. All for a total 50-Ycar investment of $280,000.Ford faces lawsuits Over sport Utility vehicle Detroit a Ford motor co. No longer makes the Bronco ii but questions Over the sport Utility vehicle still linger. Ford faces lawsuits potentially Worth hundreds of millions of dollars from Consumers who contend some Bronco ii models were unsafe. The no. 2 automaker maintains the vehicle is Safe but some people May have driven it in an unsafe manner. Sport Utility vehicles a which also include jeeps Cj-7 and wrangler and the Suzuki Samurai a Are designed with a Chassis High off the ground and a narrow wheel base giving them a High Center of Gravity. Federal officials say such designs make sonic compact Utility vehicles More prone to Roll Over than passenger cars. The insurance Institute for Highway safety said in a report released earlier ibis year that the fatality rate in rollover accidents for the rear wheel drive version of the Bronco ii was twice As High As other sport Utility vehicles studied. I would t ride in one nor would i let any member of my family ride in  Ford made about 700,000 of the sport Utility vehicles Between 1983 and 1989. Most still Are on the Road. The report said the car wheel drive Bronco ii had 3.78 deaths per 10,000 vehicles from 1986-90. That compared with i.91 per 10,000 vehicles for the jeep Cj-7 and 1.74 for the four wheel drive Bronco ii. A i  ride in one nor would 1 let any member of my family ride in one a Brian of Neill president of the Arlington  Institute said monday. �?o1 think that anyone that is considering buying one of these vehicles should think  Brian o Neill insurance Institute president about six in seven Bronco is Are four wheel drive. The National Highway traffic safety administration in 1990 closed its defect investigation of the Bronco ii ruling it was no More dangerous than other vehicles in its class. Ford spokesman John Ochs defended the Bronco ii. A we believe the vehicle is Safe when driven with common sense. Obviously any vehicle that is driven off the Road can be subject to dangers that one  have on the Road a he said. A Texas judge ruled in March that Ford must make Public its records involving reports of Bronco ii rollovers. Ford claimed the documents would provide Trade secrets that would Hurt its competitiveness. But District judge Ann Cochran refused to Seal any documents that a have a probable Adverse effect upon the general Public health and or  a september 1990 Texas supreme court ruling provided that court records could be scaled Only if the substantial interest of a party outweighed the Public a right to know about safety hazards. Ford is appealing that ruling which could become the first major test of a new Public safety Law. Ochs said about 100 lawsuits have been filed relating to deaths or injuries from Bronco ii accidents about 50 have been settled however Ford disclosed in financial filings this year that 13 of the suits seek More than $742 million. Ochs said that amount represents the plaintiffs a wish  settlements or judgments could be considerably less. Investors guide for the smartest insurance stick to term life by Bill Doyle q 1 am a medical doctor with a Large family a six children All of whom Are Young. A financial planner insists i need about $2 million of whole life insurance. Is it cheaper in the Long run to have a whole life policy or to have a term life policy with decreasing coverage As i grow older a decreasing term life insurance not Only is less expensive than whole life insurance but also it is far and away the better buy. By going the term life route you can provide much More insurance Protection for your family for a great Deal less Money. Term life insurance provides Protection pure and simple. You pay your premiums if you leave this Vale of tears while the policy is in Force the insurance company pays the policy a death Benefit to your beneficiary. Whole life insurance is a combination of Protection and savings. In Art of the premiums go into a loan value and Cash surrender pot which builds up Ever so slowly. You can borrow against that Money thereby reducing the total amount by giving up the policy and All the insurance. As the words indicate a a whole  can cover you for your entire life while a a terms insurance is written for a specific period of time. Most term policies Are renewable. The annual Premium Cost of a whole life policy is set at the time you first buy it and never changes. Term life premiums Rise with every renewal a As you grow older and the chances of you dying increase. Eventually the Cost of the term coverage equals the Cost of the same amount of whole life coverage. However if you have a decreasing term policy your coverage diminishes with each renewal and your Premium costs do not go out of sight. And assuming you have socked away the annual Premium savings in Good investments or v just a Plain savings account you will come out ahead. The time tested theory behind All this goes As follows a buy term and invest the  q would you advise me a 70-year-old widow to pay $10,000 for a life insurance policy that will pay $27,000 to my estate i now have Only one Small life insurance but 1 have enough to live on. My health is except Doyle Lent. A it s Clear you Are talking about a single Premium whole life policy which is purchased with one Paymer typically $5,000 or More. If you have your number Correct that particular policy is a Good buy. My advice is to Purchase it if you want to leave mor to your heirs when you join the choir silent and if to Are Rock certain you will never want to Cash the polic for its surrender value. After you have put the Money into such a policy it Ca be very costly to get it out. By cashing in you could b liable Tor income tax on the interest your single Premium earned. On top of that the insurance company probably would sock you with a surrender charge the typical Sui Render charge starts off at 7 to 9 percent of the Premium you paid and declines 1 percentage Point a year. Read the insurance contract carefully and make sur you understand All the Fine print before you put you Money on the line. Tdse.nnec�m0s wntt0n que cons but he can pro vide answers Only Troug