
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, January 30, 1995                   TAG: 9502010013
SECTION: BUSINESS                    PAGE: 6   EDITION: METRO 
SOURCE: MAG POFF
DATELINE:                                 LENGTH: Medium

STOCK SETTLEMENT CLARIFIED

Last week's Money Matters column stated that people who purchased stock of Dominion Bankshares Corp. between March 6, 1989, and July 17, 1990, must have suffered an actual loss in order to participate in the settlement of a stockholder suit against Dominion. That is not true.

Arthur Strickland, Roanoke attorney for the plaintiffs in the case, amended his answer to say the settlement provides that a claim can be made by anyone who purchased and sold stock during the class period, as well as by anyone who purchased stock during the class period and still held it (or any of it) at the close of business July 17, 1990.

The amount of loss for those who bought during the class period and still held as of July 17, 1990, he said, is the difference between the purchase price and $10.75, which was the closing price at the end of the class period.

``In other words,'' he said, ``even if that person continued to hold his stock beyond July 17, 1990, and it appreciated in value beyond the price that that person paid for it during the class period, such person could still file a claim for the difference between what they paid for the stock and $10.75 per share.''

Anyone who paid $12 a share for the stock, for instance, would receive $1.25 a share in the settlement even if he or she never lost money by selling.

The deadline for filing claims is May 1.

Q: I am 32 years of age, and my IRA has not increased the way I want it to increase. I have approximately $20,000 that I have accumulated over the years. The variable rate draws 3.7 percent interest and matures in March 1995.

I believe that if I could invest my IRA in some other source, my financial gain would be much greater in the years to come. I am willing to take a conservative to moderate risk to accomplish my financial goals of a better retirement income. What would be your suggestion as to how to invest my money for better financial security?

A: At your young age, you can afford to take some risk in the hope of greater returns. Historically, this has been accomplished through investment in common stocks. Right now you are taking some risk in the form of low rates and inflation, which is eating up most of your return.

You should be somewhat conservative because this is an IRA. You might try a balanced mutual fund (balanced between stocks and bonds) or an equity income mutual fund (invested for both growth and income). The market may well be down for a period of time, but you are young enough to outlast this volatility.

If you want a secure retirement, you should be saving as much money as possible now. At your age, you should aim to save 5 percent of your salary, gradually increasing the percentage as your responsibilities to your family lessen. Outside your IRA, you should go for more aggressive investing, splitting your money among a variety of growth mutual funds. You can switch into more conservative funds as you grow older.

by CNB