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Irs. 17.1)5). Its work, beets take you step can use those techniques.
<br /> · by Itep through [he IRS for~ you
<br /> m~ul m small library of tbo~e gent~ ts taus{ file, referring you to lucid ex- Once you're famtllmr with the con.
<br /> well worth the ouUay. MONEY mag- planntlons of the tax code for each. cepts of lnvesUn& you can focus on
<br /> mpzlne has chosen nine essential the fine points of evoivJn8
<br /> mo, ooKs Ihnt you might consider add- Books that fOCUS narrowly on a sin- strafes), for the flnancla] markets.
<br /> ming to your collecUon when you be- gle lnvesimen! topic can be useful or You can draw InsplruUon, mis well ns
<br /> come more proficient at managing dangerous. Unless you first under. Ideas, from the citreerl and con-
<br /> ,,your money, stand all the alternntlves, you'll be a que.q~ o! lop Investors described in
<br /> · prime target for promoters' flimsy John Train's "The Money Masters"
<br /> m~egtn with a general guide: Grace Ideas. You're better of! starting with (Harper & Row, cloth, $14.95; Pen-
<br /> Welnsteln's "The UfeUme Book of a more genernl, objective work such ~uin, paper, $0.95). Train profUes
<br /> Money Management" (New Ameri- ns "The Complele Guide to Invest- nine succ__~__tul investors ~ from ?.
<br /> mcan Ubrary, $19.00). The book treats meat OpportunlUes" (Free Press, Rowe Price, a mutual fund founder,
<br /> · Investments ns an ,Integral part of $19.95), edited by Marshall E. to Warren Buffet, n well-known prf.
<br /> '"your overall financial strntegy rath- Blume, chairman of the department rate Investor. lie describes *their
<br /> er than as something you dabble In of. finance at the WhMlon School, strategies for buildln8
<br /> dmon the ~Jde. Each section considers" end Jack P. Frtedrrm~ bead of the 11o6 and carefully translates theh,-
<br /> m an aspect of flnnncJal pllnprdn.~ much · research division of the Real Estate wisdom into easy4o-follow,i)rtncl-"
<br /> dS'-a typical household would con- Research Center at Texas A&M. pies. Train, bm lnvestment~lor'
<br /> ~ont tho~e Issues. .. ' ' * They have complied. 58 chapters and a fluid, intelitgent 4nttet: draws
<br /> mm: .... ':' ~'~ · ;"'.i .' - ~"" ' "written by specledists who review the. pointed comparisons of bis sul~ecis'.
<br /> · Next'add "The Money En~clope-.~ risks and rewnrds.of'everythint' technlques, enabUngmostreadersto'
<br /> rodin" (Harper & Row, $26.50), edited.' from Art Nouveau furniture to. reach useful concluslom nix)ut how.
<br /> bY ,Harvey RncM.ln. it's n basic ret.. Treasury notes.. ~.'.; · ~.,.. : , to acMeve stock market SUccess.
<br /> ·Leur alike. It offers detailed, straight- Two other excellent books on invest. Burton Malkiel s ,,A Rand(~m Walk'
<br /> · f'orward informnUoo on everythtn8 lng ri.re Louis Engel's "How to Buy Down Watt Street': (W.W. Norton,
<br /> le
<br />
<br /> , n~
<br /> fi'om money markets to three forms Stocks' (Li!tle Brown` $15) .and cloth, $13.95; paper, $?.95), first pub-i
<br /> _ Of ~,kruptcy. ~- · ~ .... Outrles Rolo a "GaJp!n_.~ on the Mat. ~l~sbed a decade ago and subsl~ntlally.
<br /> ~ ~: ' -'. '~-. ~. ~ '. .. ~' '; ke~ (AflnnUe-Little Brown, $10.95).. revised in 1981, IS n soberln8 Court-
<br /> [m "Jullan'BJock'~Guldeto year-Round ........ . . ' ' . ..... . terwelght to Train's upbeat beok.=
<br /> Tax 'Savings"- (Dow Jones-lrwln,." Originally published in 1953- and: ~nlt!el, a successful lnv_p~__gr: and
<br /> Sg.D~)), ~ n_nMlfllly tO catch up - most .recently FevLqed by i)rendan . dean of Yale's Schoo~ of Orgnnl2a-*i
<br /> ~ ~th c~ In tax laws, IS Just what - Buyd In 1582, "How to Buy Stocks", is; flon and Management,examines sev.:
<br /> · the title says, 1)efoFe you sell, spend,:.., a first-rate ov,e, rvJew for neophytes eral academic theories that no stock- '.'
<br /> mm .invest ~f:Perlmps give' away assets,'..'.i, of Wall StKee. t s key m~rkets end picking system can conslstenUy beat.
<br /> · ~Vou ~ 'reed..the ep?roprtate seo~.'.-:.instltutlom ns. wetl as an excellent, the market avernges. You ~ also
<br /> ~ pons" t6, find dui .the tax conse- .: .reference source for, more expert- 8aln insights into the security annly:.
<br /> · quences, If any, and whether there Is enced Investors. Rolo s "Gaining on sis profesaJon ns Malklel revte~.s the~
<br /> · n better alternnUve. Block, an nth)r- .' the Marker' Is a pracUcal 8ulde that ~orst excesses of the past nnd evalu- ·
<br /> ney and n former IRS agent, often.' carefully reviews professional math- ares how the Job Is best done. - -
<br />
<br /> NOVICES: St ck., ruth -rnted bonds
<br />· lC;,' ' ,. ' /;.,' .benefitsofmunls can pushthe .. - fixed price. Before the contract : .':
<br />
<br /> '..t~t~mees~of ,suCcess by sflckl~ to · .? imore, depencling on your bFnckeL'-.f- at a pro.fl, t or.lass. -: ~: . .....,: ': .
<br /> · ..q~. ~..~,ml. you ._~n..tmp_ro~_ e your'- ':-- o, ew municipal issue IS ~,000, so ':-~ · To mn_ke en investment tn futures, ,~,
<br />
<br /> ers nay6 mvestmen! Ma~ .... :., ~.. ............... ,., _runic in vmue from
<br /> ~af ra.C~.ta, te doUar-cost nvern~ne '.' Fo,' ,,,,,,,+L_ ,=; ...... : .~ .: $40,000, althot~b one eonunodltv
<br />
<br /> re .you n~t_..a~,e~ ? Send in, say, $200 ~ bracket or lower. U.S ... ex,_~__ _the M! .dA~.. erich in
<br /> .& montiL and the m'm wiU credit . · securt ' '~ .... Ch.f.,-~,q~u~-ttuoesrnmmfutureswlth~.'
<br />
<br /> ma! bo~. ' <.. ~ - . choJ,.~ ,,~,c ~vemment becr~n~ ' will ask rot a depc~lt
<br /> '. '. - ~-..~ ;, '.. rrm~es them s~er than corpomtes, ·
<br /> .... : .......... 10 percent of your contract. If the
<br /> , th.ey pay nem*ly the nme interes~ price of the commodity be~s to
<br /> · ~BONDS. M~ny novices nrc ath'nctod .rates. And theh. interest is exempt - move against you, he'll demand .
<br /> worn state and local income taxes. ' more ~ sometimes much more. -
<br /> ney seem worry-free. But
<br /> You can buy Trensury securities ' .Most brokers im~ that futures
<br /> experienced Investors also use bonds through your bank or broker for a mvestors have early Uquldaled -
<br /> ~ to dl~erklfy their porUollos or ' fee of $12 to f~O, or by nudi with no
<br /> · redu~ taxes or both. commtsslon from the Treasury ._assets of at least $100,000 to back -
<br /> ~Municipals, like all bonds, can be ~Depart.m_ent (Bureau of Pabllc Debt,
<br /> mm Durchnsed from br~ers. By seeking .t~epL N, washington` D.C. ~02~9) or
<br /> ~m a Federal Reserve hank. : tt you lack the resources or the
<br /> nerve to trnde contracts on yonr~ '_
<br /> · out local Issues, you H avoid state ns ( formation on offerinas Is own, YOU eon
<br /> · well ms federal taxes; ~ck With available from the Minneapolis
<br /> invest
<br /> Professional
<br /> th? rated A or better by Moody's _F.e~_ _e_r~l_ Reserve Bank by calUn8
<br /> (minimum:
<br />,,, or Mandftrd & Poor't Such bona a,lo-zo7/L) .$3'000~- la, ). Il would be wise to check '
<br />·have been yielding about I0 percent, .~ _ - ~, ~,u~mance or
<br />m roughly 2 percentaae points less then FUTURES. Futures are e~)~ttracts to Me fund f~mnn_oe, rs, however. Many
<br /> have dismal records. -
<br /> _el.~er'Trensury Issues or corporntes buy or sell a commodity or financial
<br /> oz the same quntfty, auf the tax Instrument on a future date at a
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