OCR Text |
Show Faee A12 -- - THE DAILY HERALD, Provo, Utah, Sunday, October 30, 1994 Geneva honors Adams, festival founder Diversify te create - portfolio .To achieve your financial goals, it is! important that you allocate your assets to create a diversified portfolio Bonds are used by many investor as part of the foundation of a bjlunced portfolio, because they ofa fer a w ide range of maturities, nient terms and credit quality to fit most investment inter-est$)- iids. $ick to basics: What is a bond? its simplest terms, a bond is an it represents a loan by invesIQU ;ti tors (bondholders) to an issuer. The bondholders lend money to the (a corporation, municipality, or government agency) in return for tlw promise of fixed, periodic payments of interest and the repayment oCtJie loan's principal amount at niiifunh . Athens of the West.' " With Adams at the helm, the Festival has grown from a modest budget to $1,000 and 3,276 paid admissions in 1961 to a 1993 season attendance of 1 16,926 paid admissions and a $2.7 million budget. The Festival is now known as one of the top five repertory theaters and Shakespeare Festivals in the United States, according to the New York Times. Last spring more than 3,000 actors auditioned for 40 spots in this year's Festival. "In an area that is so rich in pioneer heritage, I can think of no In an SALT LAKE CITY filled that the with was evening frivolity of Shakespeare's brightest works, Fred C. Adams, founder and executive producer of the Utah Shakespearean Festival, was honored as the 1994 recipient of Geneva Steel's annual Modern Pioneer Award. "This year we honor a man w ho, 33 years ago, brought Shakespeare to the red rock mountains of southern Utah," said Joseph A. Cannon, chairman and chief executive officer of Geneva Steel. "He turned a small community into a 'Festival City' and proved to the world that Utah can become 'the ; tt ileal ysis per-IJiil- ; I 1 taxpayer's nightmare Every taxpayer's worst nightmare is an IRS audit of a past income tax return, and when the notice of such action arrives, the inevitable reaction is: "Why me?" Whether or not you end up in an audit can depend, in part, on how your itemized deductions compare with the average amounts claimed by other taxpayers in your income Above-averag- provoke the IRS not only to challenge other items on your return but also to review your previous returns. However, if your numbers are correct you should report exactly what they are, even if they prove to be higher than expected for your income bracket. If you've kept good records and can substantiate what you've claimed, you have little to worry about in an audit, should it occur. organization of the recipient's choice. Adams has been the recipient of the 1992 Cedar City Area Chamber of Commerce Arts Contribution Award, Southern Utah Un- tion. In its sixth year, the Modern Pioneer Award has been presented to such prominent Utahns as David C. Evans, of Evans and Sutherland; Thomas K. Welch, president of the Salt Lake Olympic Bid Committee; and Joseph Rosenblatt, former president of EIMCO. iversity's Outstanding Alumni Award of 1991 and the 1991 Citizen Meritorious Service Award from American Parks and Recreation Society. He was honored by Utah Busines Magazine in 1989 as one of Utah's Outstanding Business Leaders and recipient of the first Governor's Award in the Arts the same year. He has twice been given the distinguished Alumni The awards dinner featured the flair of the ' ' Lord ' s Feast, " a festival tradition. Doug Baker played the part of Henry VIII, announcing the finery. Baker, who is a former student - 'Pete Of! About Taxes interest deductions, medical penses, taxes or charitable contributions are screened by a computer then subjected to human scrutiny. Lake-Denv- er ' fare. A ' e advance-purchas- two-wee- k, ticket good through Oct. 29 that required a Saturday night stay in Denver cost travelers just $78 round trip just a few weeks ago. That same ticket for someone who wants to fly to Denver two weeks from now will cost $317. Delta's Salt Lake City spokes man, Fred Rollins, could not-breached for comment . Airline analysts say now that Morris Air and its successor Southwest Airlines are not serving the comroute, Delta has little low-coand Lake Salt between City petition ' Denver. e st TWA charges about $80 round k advance fare trip for a between Utah and Denver with a Saturday night stay required. But TWA only offers one flight a day . two-wee- U. Wikv are SPORT II NEC MULTIPLE COLORS AVALABLE! Service Provided by... owner of Kranenburg Accounting and Tax Service, which is affiliated with Triple Check Income Tax Service, one of the nation 's largest income tax preparation compa- ex- Del SALT LAKE CITY (AP) ta Air Lines is raising its Salt Pamirs... RMHSODV affordable ftC pager! 8 Message Capacity 20 Digits Per Message One Button Control Automatic Lighting Clock and Time Stamp 4 Programmable Alert Options Including Silent Vibration Orem CPA, Peter Kranenburg, Tax returns with numbers well outside the norm in such areas as Boats Your family, friends and business associates just a phone call away wttti this ing documents and file them with the return. These materials allow the IRS to see exactly what method was used, how figures were developed and what tax laws were followed, thus avoiding unanswered questions that could lead to an audit. Kranenburg Award from Brigham Young NOBODY Taxpayers often avoid audits when they attach proper support- (CD) McCaw Communications VISIT ANY OF OUR FIVE R.C. WILLEY LOCATIONS FOR A COMPLETE DEMONSTRATION! nies. Open A Home Equity Line And You'll See It's AWonderful Life. ol "your bond investment. lo assess the level of risk and return of any fixed income invest-!'iii'-n- t. ou should consider two fac- - of deductions may e ruinating the risks and returns I. Maturity: The maturity person who exemplifies the pioneering spirit that built this state. Past recipients also include former Utah State Governor Norman H. Bangerter and Dr. E. William Jackson, founder and president of the Deseret International Founda- Audit should not be iSuy a 3$le. Geneva Steel established the Modern Pioneer Award to honor a er category. bond and hold it until maturity, you don't have to worry about its JCe changing because you will the full value of the bond at rpjturity. Howev er, if you need to itt-- bond before its maturity date, Jc price you receive may differ Jjftfai the original price you paid for j5Cjiond, resulting in potential capi- 3M Jains or losses. 1 low bond prices fluctuate. Since a bond's interest rate is when you buy it, a change in re interest rate environment will 2ct the value of a bond. For ex- if you buy a $10,(XX) bond jJuS an eight percent coupon and IJnfcresi rates drop from eight to lour percent, your bond more valuable than those Jlsuosequently issued at lower interest ,'rates. Therefore, you could sell your ;l)ond at a premium to its face value. On the other hand, if rates rise to 12 ! percent, investors will want to own new issues that pay more interest, ', and your bond will lose some of its J resale value. If you sold it under this J scenario, it would be at a discount. is currently featured as Merlin in a dinner show at the Excalibur Hotel in Las Vegas. At the event, Adams was presented with a bronze sculpture titled, "The Binder." This sculpture depicts an early Utah pioneer working his field with plow horses, accompanied by a small child. Geneva Steel also donated to an of Adams, Geneva Steel. one individual who exemplifies v. Bond prices and interest rates. Xhe market price of a bond has an irntErse iclationship to the move-'iiefof interest rates. When interest rjjtos go up. bond prices go down, itjid vice versa. Just as interest rates fluctuate daily, so do the prices of iJtUds prior to maturity. When you more the theme of 'modern pioneer' than does Fred Adams," said Robert J. Grow, president of Delta raise Salt Lake to Denver fare.; - a represents the date on which .th' principal amount becomes due and payable. T he number of years until a bond matures will dictate the bond's sensitivity to changes in in-- ! tcest rates. As a general rule, inves-- ; !ms are compensated with higher securities. ields for longer-terThis is because the longer a bond Las until it matures, the longer its I principal value is exposed to inter- cm rate fluctuations. Bonds with ' hoiler-term maturities (one to four ; experience relative- normally years) ly minimal change in price as inter- est rates fluctuate, but typically pro- v ide relatively lower yields. Intermediate-terbonds (five to 15 1 years) often provide an attractive ; balance between risk and reward. ; hnig-terbonds, which typically ; mature in 20 to 30 years, usually ha'S: higher yields, but can also ex- k flence gr eater price fluctuations. ; in ud - ' ', m ; Oualnv I he credit quality rat-- ', ol a bond indicates an issuer's in;' ; ability to make timely payments of J unit est and principal to bondhold-- J ral-- J ci s, Iwo natimally-recognie2. d agencies. Standard &. Poor's ' ( 'nrporation and Moody's Investors Service. Inc.. measure an issue's uedit quality by assigning it a letter grade, from AAA for the highest quality to I) for a bond in default. Bonds rated BBB and above arc considered "investment grade." I.ow-1- 1 quality bonds generally have higher yields, but also have a greater potential for default. Ratings are constantly revised based on related industry or company changes, and can have a distinct effect on an issue's market price. 111 Or We'll Give You Your Choice Of Another Great Gift. could always take that long vacation you've been dreaming about. The possibilities are endless. And affordable, thanks to First Security's low interest rates. Security Bank I lome Equity Line before December 31, 1994, and you can take home one of four great gifts, including a 20" I litachi stereo color Just open a First TV with remote. Your a lealthKider other choices include a JVC I And, speaking of interest, we think you'll be very interested to know that applying for a First Security Bank I lome Equity Line costs VCR with remote, li-- stereo system. Now if you can't picture the gift option, how about a great interest rate? We're talking the published Wall Street Journal (WSJ) prime I total-bod- exerciser or a JVC y you absolutely nothing. And you'll never have to pay an annual fee. Plus, you have the option of making interest-onl- y payments for the 10 first years of your loan. rate (currently at 7.75';; APR) for the first six months. After that, the 4 2 ! The challenge for bond investors is to obtain the highest possible re- tun) w ith the least amount of risk, in line; with their investment objee- lives. Many experienced fixed in- come investors choose to "ladder" their bond investments by structur-- ' trig 0 portfolio of bonds with varying maturities. By blending investments in fliort-- . intermediate-- , and lonn- terrh bonds in a ladder portfolio, you an. take advantage of the liquid as- - interest rate will change to prime plus 2'7 Just imagine what a Home Equity Line can give you (besides a 0 Or choose fun over function and get a new sports car, boat or RV. Of course, you iuj imiFTMiftU PRIME RATE ftimt Hoti I H ft Mmiht longcr-- j or more information, please write care of: The Provo Daily Her- I 1 free gift). You could make home improvements that turn your cottage into a castle, shorter-terbonds peels of the VMe attaining the higher returns typically available through term bonds. The First Security Bank 1 lome Equity Line. With a great rate, no fees and four great gifts to chx)se from, it's everything you've come to ( MI11 fluid l"t iw I lorm-- tfinty I it- u- Mil v AmiI I'N timirm rimy Vitiuilf 1. 14, P Uttm hi ( utm I V M'ifft llw AI'K w Ide WSJ nrM- - JVI b ftrmixr tali-o- 1 1U. For more infor I - 800 -657 - 6656. CD lUutd innuimur l rtuiffd tightly due In pfixjml amUMily Jilfi-- expect from the bank that s currently giving mation, visit any First Security branch in Utah, or call ; 7 7V Tin- - A rruiimum inlrrnd Mir ( l Win, Hull krmur cirly Irrmiiulmn wit tlw lifriif IhrliMnit will p'ly il liw rl'iwiJ wilhin 2t numllu IHII'Jf AI'K uld, Attn: Business Editor. 1.' --4 . tut POORC |