OCR Text |
Show The Park Record Wednesday, December 13, 2000 A-24 Talking Shop Fee-based accounts offer variety of benefits by John Jaicks RECORD GUEST WRITER The mechanics of investing used to be relatively simple: you called your broker, bought or sold on his or her recommendations, recommenda-tions, and paid a commission on every trade. In the last several years, how-ever, how-ever, several full-service brokerage broker-age firms have introduced a customer cus-tomer account that enables investors to trade without paving commissions on individual transactions. trans-actions. Instead of commissions, a quarterly or annual fee is paid, based on the amount of assets in the account. This asset-based fee approach is becoming popular with investors who conduct even a moderate number of trades each vear. and who want greater control over their transaction In the battle Continued from A-23 a deliberate move calculated to impress more people than it disappoints? dis-appoints? The crisis today is not chip power. it is bandwidth. Bandwidth measures the amount of information a data pipe can transport, and the speed at which that information can travel Nearly all the pipes bringing data to homes today - especially in this area - are telephone wires made of copper, a HK)-y ear-old slow-poke technology. The bandwidth band-width problem is not technological. technologi-cal. Existing technologies - such as fiber optics. DSL and cable modems, and Earth-orbit satellites satel-lites - could deliver data thousands thou-sands of times faster than phone lines do today. It is a combination of outmoded government telecommunications regulations (based on railroad laws of the 1 SOlls. believe it or not) and entrepreneurial torpor at the phone companies that is to blame I S West or Qwest: the game's the same, no matter the name. Congress seemed to recognize m CM en (0 en r en en J 93 0 0 r" f 1 r 7 I The Power 3 System of Rossignol. I Boots, Bindings, and Skis, s provides the maximum transfer of energy from Z the skier to the snow avaiiable today. : The power 3 system The ultimate ride. " Get it at Jans today. G40-4049 - 1 - -.0 costs. With today's rapidly changing market conditions, some investors want the ability to periodically peri-odically adjust their asset allocations alloca-tions without woirying about commission costs. Asset-based fee accounts enable such investors to conduct multiple transactions and know exactly how much they'll incur in investment invest-ment expenses over a specified period. In addition, the account tee generally covers a number of other benefits. Most asset-based fee services offer on-line access, allowing your account's progress to be monitored on a day-to-day basis. Some provide on-line access to proprietary research not avail of laws, Moron wins the problem when it passed the Telecommunications Act of 1. But the benefits of that act have been delayed as the Federal Communications Commission drafts new rules to regulate the process of deregulation, and telecommunications lawyers tie up the courts. And there are numerous new bills in Congress aimed at regulating the Internet. In Silicon Valley, the new axiom at the moment is Moron's Law. coined by venture capitalist Roger McNamee. .Morons Law states that the residual effects of regulation ensure that telecom carriers will never provide what the customer wants, and that what they do provide pro-vide comes five years too late. The issue hinges on economics - primarily the fiscal bottom lines of the telephone companies. Let another player threaten to make inroads into an area the telcos think of as their sacrosanct preserve pre-serve - like cable television providers, say - and telco lawyers and lobbyists pop up like weeds in a pristine lawn, litigating and lobbying to keep the status quo. The targets of that litigation have T ... , A , ) able to the general public, while others enable investors to conduct con-duct trades on-line without the assistance of a broker. Asset-based fee accounts generally gen-erally encompass trading in stocks, bonds, options and mutual mutu-al funds. Some offer the ability to purchase shares of a number of mutual funds at net asset value (NAV) with no front-end loads or back-end deferred sales charges. Most otfer a relationship with a knowledgeable financial adviser who is always available to help execute trades, discuss investment invest-ment strategies and provide experienced counsel. Some investors choose to work closely with an adviser, while others prefer to make independent inde-pendent financial and investment decisions. Generally, with an asset-based fee account, the investor determines the level of contact with - and service from -the financial adv iser. Is asset-based trading for you? The answer depends on a variety of factors. If trading is your passion pas-sion and vou consider vourself an to plan the addition of millions of dollars in attorneys' fees to their costs of doing business in a new market, so progress is much slower slow-er and more expensive than it need be. That's why the competitors competi-tors have only been able to make inroads m high-density areas, and why I'S West Ow est representatives representa-tives have been throwing around the term "cherry-picking" so freely for years. Factor in legions of 5500-an-hour attorneys piling up billable hours and it's no wonder won-der the competition has to focus on the high-density areas to make the financials come out in the black. Computer executives recognize recog-nize the need for some government govern-ment involvement to create rules of the road for information highways. high-ways. But they also see the effects of our antiquated communications communica-tions infrastructure and fear that Moron's Law will trump Moore's and stunt the revolution's growth ov er the next 30 years. It certainly has (and probably will) in Summit County anywhere more than 15.000 cable-feet away from Qwest's Park City central telephone switch. . EHPERTS active day-trader, some of these accounts may discourage activity beyond a certain specified level. If you're a buy-and-hold investor who conducts few transactions, trans-actions, you may be better served by a traditional brokerage account in which you pay commissions com-missions for each trade made. However, if you are an investor who trades moderately often and would like the opportunity opportu-nity to alter your portfolio to reflect changes in your needs, circumstances cir-cumstances or market conditions, you might consider this alternative alterna-tive approach to pay ing for securities secu-rities transactions. And, if you value the advice of knowledgeable professionals, an asset-based fee account may enhance your investment strategy. strate-gy. John Jaicks is a financial advisor advi-sor with the .Morgan Stanley Dean Witter office in Park City. This article does not constitute tax or legal advice. Investors should consult their personal tax or legal advisers before making any legal- or tax-related investment invest-ment decisions. Information and data in this article were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed, and the giving of same is not to be deemed a solicitation solici-tation on Morgan Stanley Dean Witters part with respect to the purchase or sale of securities or commodities.. Readers with questions can send their letters to John Jaicks. Columnist; c 'o The Park Record. P.O. Box Park Of v. UT 84000. Local convention properties have reported that the following groups will meet during the week of Nov. Dec. 17-23 in Park City. Information is supplied sup-plied by the Park City Chamber'Bureau. Group Attendees Geary Construction 70 Mapel Group 24 Credit Suisse First Boston 20 Buzz Sports Tours 45 MVCI December 14 Total 173 - . . . . . Help someone you Jove become more healthy. Give them a membership to BodyTech. Aoy one year membership comes with a one hour free personal trainer session. ($50 to 135 value) tad dual club accen. Call BodyTeth at Ki it. hi II Juectioa (or more laformatioi 647-9111 , ... ... . Piogiam Bank On 30 yr Fix 15 yr Fix 5, 1 yr ARM JBMe Pe!ntjl 7 250 6 875 7 000 Chase Manhattan Mortgage 30 yr Fix 7 250. Home Equity 9 500 7 1 Jumbo ARM 7 500 Countrywide Funding 30 yr Fix 7.375' 11 vr Fix 6 875 7.000 3, 1 yr ARM Crossland Mortgage 30 yr Fix 7 500 15yrFix 7.125 5 Uumbo ARM 7 625 First Colony Mortgage 30 yr Fix 15 yr Fix 30 yr FHAVA First Western 30 yr Fix 15 yr Fix 1 yr ARM Key Mortgage 30 yr Fix 30 yr Jumbo 5 yr Balloon 7250 7 000 7 500 7.000 6 625 6 500 7.625 8250, 7.750 North American Mortgage 30 yr Fix 7.375 15 yr Fix 7 000 5'1 ARM 7.000 Washington Mutual 30 yr F;x 7 250 15 yr Fix 6.750 1 yr ARM 7.250 Zions Mortgage 30 yr Fix 7.375 15yrFix 7.125 71 yr ARM 7.000 The Utah Mortgage F"ulse includes up-to-date information on home loan rates charged by Salt Lake City area lenders The information was accurate on Monday December 11th, but is subject to change without notice, Closing points: One point equals 1 percent ot the loan amount. Most lenders also require private mortgage insurance with down payments of less than 20 percent. Also, most lenders charge loan processing fees up to $300. credit and appraisal fees up to S400. ongtnation tees of 1 percent, along with other closing clos-ing costs Index: T Bill Yield on 1yr T-Bill. COFI Cost of Funds Index. MTA12 Month Treasury Average Index, Libor London InterBank Offered Rate Source: Mountain Express Mortgage (43S) 647-3700. .... ir f fi V Dewn Caps InHes 5 5 10 26 T-Bill 2 5 T-Bitl 10 5" 10 2 6 T-Bill 5 10 10 1 6 T-Bill 5 10" 3 5 5 5 26 T-Bill 5 5 10 5 5 10 2 6 T-Bill 0000 0000 0 000 15 TBill 5 5 10 26 TBJI l 2 i Vw . - ri ' 'I "I T J -J |