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Show The Salt Lake Tribune BUSINESS Sunday, April27,1997 all kidding aside, I am indebted to certified financial planner James Murphyof Cincinnati for the excellent point he makes. My statement, “Pick one from among thosethat fit your goals,” was meant for people who tell me they want to start investing in mutual funds but agonize endlessly over which one to choose. You have no way of knowing which oneis “the best,” so rather HUMBERTO CRUZ than be paralyzed and do nothing, A Sharp Pencil the opportunity to clarify that point. You don’t need dozens of ment styles in the stock portion of your portfolio, including funds that invest abroad. Asto the “millions of readers” tion on howto pick the “best” mu- tual fund by advising: you invest the money you have and make a profit. @The longer you invest your funds either, but you would do well to include different invest- “T am in a state of shock after you respondedto a reader's ques- who supposedly use my column to plan their financial lives, I hope they are paying attention every time I say they need to arrive at “Pick one from among those that fit your goals. different types of investments, that is, domestic vs. international equities, and different types of managennent style, such as growth vs. value. Your advice in this instance wasa disservice to the mil- computer programs.” Comment: No ene person can claim credit for this question because dozens of you wrote or Comment: I will take 10 lashes with a dry noodle for that onebut, STATE OF UTAH ADVERTISEMENT FOR SPACE eS out a percentage return for your unspent money. to: HCruz5040@aol.com. en SOE ooac ou can doit. 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(@88-4200) FoR DETAILS, on visit http://www.wcslc.edu y, “Wedon’t havetime for a beauty contest.” + ANSWERS TO LOAN REQUESTS UNDER desi a Oe oe able retirement fund.” you off to enjoy the bigger TORS ot Se ea WEREN une Media Services, 435 N. Michigan Ave., Suite 1400, Chicago, IL 60611. Send e-mail messages 801S65- 0645 + 800/255-2215 + 43 instant Credit +90 Days SAC + VJISA/MASTERCA: ‘eee aL WH Humberto Cruz lives in Coral Springs, Fla. Write him c/o Trib- IRA funds. That may not be true if you are very successful in getting your readers to amass a siz- | 1999: Youlandabig raise The programis FLEXIBLE,with a \ or abetter job, thanks toyour new ¢ Melle Management 4110State Office Building Sait Lake City, Utah 84114 Telephone: 538-3430 Ate ee and otherfinancial writers,is that we expect to be in a lower tax bracket when we withdraw our All you need to dois first sub- tract what you spend each year from what you have, then figure +166 CPU Peen Bees QOCUPANCY: July 1, 1967, 0 Please submit proposals to: Nick Radulovich Division of Facilities Construction bracket. As to inflation, of course it needs to be addressed. your column? “Another expectation with IRAs, stated so manytimes by you howmuchyouwill have at the end Award Winning Cobra ComputerSpecial Offer PARKING Pts 1) mse pingale ad puts away $2,000 a year for 10 manage the withdrawals to at least stay within the same tax terms of today’soe power. Shouldn't this be addressed in When youstart spending your Geis ee mom tiereca) Teresa) LOCATION: WesternDavis County ‘AREA BOUNDED BY: Located west of Interstate 15 fone b as Glover Lax nth “Although I applaud your encouragement of savings with IRAs, the exampleof the power of compounding, in which a person that most people will automatically think of that million dollars in Unless we don’t have any more With PurchaseOf 1 YearInternet Service Paclities Construction and Mata PROPOSAL IDENTIFICATION: DFCM9704-3, TYPEOP SPACE: Office/ Warehouse Space for the is ie Resources 70 square See of Office Laboratory and a five hem, Pa., told me recently, “We need uncomplicated information that is easily understood.” that conventional wisdom. But mostof us should be able to inflation, you will need more money in thefuture for the same things your money buys now. FREE 33.6K Fax Modem ail persue bit. But as a reader from Bethle- by me? I too question seriously disservice. I can’t help but think Of course, you will have even more moneyif you also save and invest the moneyyou save. of each year. calculations can be provided by lions of readers who use your ¢ umn to plantheir financial lives.” Am oversimplifying things? A Comment: Stated so manytimes million doliars by age 65, does a will have. will last. But you missed a good opportunity to mention that these me. “Yourrecent column onretire- grade, says Carol Newman, a mathematics specialist for the Broward County, Fla., school system. money,and the higher rate of re- ment planning presenteda lot of math about determining how long the money you have accumulated what anybody says — including Howhardis this? All the skills you need are taught by the fifth turn you get, the more money you nest egg in retirement, you don’t spend all your moneyat once (you would be in real trouble if you did). The part you do not spend you can continue to invest So if you know how much you have, how much you plan to spend each year and what kind of return you can make on the money you don’t spend, you can calculate their own conclusions no matter “The basic foundation of any investment portfolio is diversification. Diversification requires a mutual-fund portfolio that uses compoundedinterest. I am talking about concepts suchas: Youwill have more money in the future than you have today, even if you don’t save anything,if portfolio, and thank Murphy for ingpatiently to sound off: overtime becauseof the power of make a shortlist of those thatfit one fund makes for a complete A few readers have been wait- cated software in the world is no good if you don't grasp somebasic concepts of how money grows your goals and just choose one, I said ButI did not meanto imply that Will Hone Investments faxed to say the same thing. But I left out any mention of computer programs on purpose. 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