Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, May 2, 1994 TAG: 9405030009
SECTION: BUSINESS PAGE: 8 EDITION: METRO
SOURCE: Mag Poff
DATELINE: LENGTH: Medium
A: You can write to Scott Halpern, Spring Run Swim Club, P.O. Box 20351, Roanoke 24018, setting forth your desire to sell your shares.
Halpern said the stock pays no dividends and has no specific financial value. But the club is trying to match buyers with sellers so that the stockholders are, to the extent possible, the same people who use the club. He has been asking people what they want for their stock, and the answer is usually $25 to $50 a share. The original shares, which were sold in the 1950s to build the club, went for $100.
Stockholders can vote for the board that runs the swimming club. Ownership of stock is no longer a requirement for membership, but there is a waiting list to join. Stockholders can go to the top of the waiting list for the next season (which would be next year by now), so that makes stock desirable for some people. Halpern believes that stockholders don't have to pay the $200 initiation fee, although that question is not settled. If so, that would set an outside value for the stock and make it even more attractive. But you have to find your own buyer or work through the club to find one. "It's kind of a small market," Halpern said.
More than one retirement plan OK
Q: I teach at a college and have a tax-deferred annuity plan, a 403(b). I also run my own business on weekends, making a profit and filing a C form with the IRS.
Can I start a Keogh or SEP plan based on this self-employment income in addition to my 403(b).
A: Yes, you can have separate retirement plans for your employment and your self-employment. You must meet the requirements of each plan, such as the limit on percentage of income you can contribute. And your total contributions to all of your plans cannot exceed $30,000 a year.
Hospital within rights
Q: I had a gall bladder operation in June 1992 at Community Hospital and began paying $50 monthly on the bill. This was followed by a cancer operation at Roanoke Memorial that November on which I am paying $100 monthly. My husband had a gastronomy test, which was added to the gall bladder bill. In October of last year, he had a kidney stone removed, and his part of the bill is over $700.
We have been informed by Carilion Health System that the entire amount of the last bill must be paid within 90 days or it will be turned over to a collection agency. They recommend charging it to a credit card. You know what that would mean.
Can they legally do this?
A: They can do this legally. Virginia Garretson, president of Consumer Credit Counseling Service of Roanoke Valley, said most hospitals are beginning to demand immediate payment - charged to a credit card if necessary.
You have a problem because you are accruing more and more bills. Garretson said the hospital probably will seek judgment soon on the balance due from the oldest bills in order to protect its interest.
She said you should contact the hospital and offer to sign a promissory note that would protect the financial interest of the hospital.
Better yet, you could contact Consumer Credit Counseling by calling 563-0076 for an appointment.
The agency helps consumers design a budget for paying off debt. Garretson and her staff also work with creditors to create a payment plan. If necessary, the agency will collect the money from the debtor and apply the money to the bills. Consumer Credit Counseling is supported by Roanoke Valley businesses, so there is no charge for the service for people who are in financial difficulty.
Ranking the risks
Q: At the current share price of $12, United Services Tax-Free Fund yields 5.5 percent tax-free.
I am 73 years old and in the 28 percent tax bracket. I wish to preserve my capital, but need more income. I realize that the share value of this fund will fluctuate. Would it be a satisfactory investment for me?
A: In your income tax bracket, you would have to earn a taxed return of 7.638 percent to equal the tax-free 5.5 percent.
Money magazine ranks the risk of this fund at 5 on a scale of 1 to 12 with the lowest numbers being the safest. This compares the fund with its peers, or other funds that invest in tax-free municipal bonds. That's because United Services invests in medium- and long-term bonds, which are more volatile than short-term bonds.
On the plus side, this fund also has no load or up-front sales charge.
You might be able to find the February issue of Money magazine at your public library. It contains a risk ranking and the total return for most mutual funds.
by CNB