| Show 1OF The Salt Lake Tribune Sunday November 26 1989 MINIMMIEI F:t0 st pm eyes r4 01 11:C eckri:a a Buying a Unit Trust Now Could Become Disaster in '90s But SEC Is on Lookout - pires That early call will lower your yield to a mere 657 percent — almost four percentage points less than the broker said you'd earn The trust sponsor tries to disguise your capital loss by packing your n trust with bonds They pay no current income Instead they increase in value every year until maturity Those gains balance the loss So although your yield is lower than you expected you at least get all your money back But here's the hooker — and it's going to hit every retired person living on this kind of unit trust: bonds are When your high-rat- e called in the early 1990s you'll lose income and get back less the of your principal than you invested Your remaining money in the trust will be tied up in bonds that pay no income and won't mature for another 20 years If you sell you realize a capital loss So your income drops your principal drops and you don't get the expected yield Older unit trusts that some stocks brokers have been selling like can run into a similar trap You get a high current return but many of your bonds will be called in just a few years That lowers the true return and costs you a capital loss Two unit-truinvestment rules: (1) When you buy a new trust comyields pare its current and long-terto see if they're about the same Also get the prospectus and check the n portfolio If you see a lot of bonds you're buying an income that may not last very long (2) Any time a broker calls you with an older unit trust that apparently yields more than new trusts coming on the market laugh In the bond market there is no free lunch NEW YORK — Do you own a unit trust? Is your broker urging you to buy one? Will you count on it for in- come? Read this Maybe that income will last for a while But then again maybe your trust will implode in the early 1990s 111r You could be left with very little in: By Jane come an unexpected capital loss and a yield much lower than you exBryant Quinn pected n The securities and Exchange or are called in before maturity) is preparing new disclosure laws for unit trusts to stop the plus the reasonable hope of getting abuses that are going on A tempotheir money back when the trust : rary rule now in effect improves comes to an end the yield disclosure on brand new Thanks to the temporary disclotrusts Next month the industry will sure rules promoted by the SEC's propose a permanent rule for both Kathryn McGrath you can probably — new trusts and older ones that are find a new trust that will meet your being resold industry leader Robert goals for around ten years Look for associate told Virginia my Holley one where "estimated current re- Wilson But for thousands of investurn" (your current income) and the tors this comes too late "long-terreturn" (what you're A unit trust is a fixed portfolio of '4'4 securities over the long run) are net to mulong-terlikely generally same Those figures the about trusts a These bonds just pay you nicipal are on the cover of the prospectus monthly income When a bone matures (or is called in for redemption) You may be in trouble however if share of the current return is noticeably highsr each investor gets a pro-rat- a the principal Investors buy unit er than the long-terreturn Here's e income v: trusts for a steady why: (which lasts until the bonds mature The sponsor who creates a unit trust can artificially juice up its reported current return by buying oldbonds For examer bond ple take a that was issued in 1982 at 12 percent That $1000 bond might cost $1150 today The current yield on your ine vestment: a 1044 percent Zovvie you think But when the bond is cashed in the trust will take roughly a $150 loss By Ann Chadwell Humphries In return for a Knight-Ridde- r That's your trade-of- f Newspapers Just as there is an etiquette for higher income you give up some and soon The issuer will principal selling there is an etiquette for probably redeem this bond in 1992 buying call protection ex when its To recount appropriate behavior for the purchaser or the client here are a few etiquette tips to preserve your service — Let your vendors know the Most depth of your interest will Some customers exercise polite avoidance rather than tell a ford powertrain warranty assures supplier no Others will use free superior service anywhere evaluative services and then decide not to buy RICK WARNER 1—7X4t if practiced Both strategies -4 "111 lot IA LAFORZA in the name of consistently even tough negotiating are insincere 7th SO & W TEMPLE and deceptive Over time it can 322-566- 1 Staying Ahead k '1 Corn-missio- tax-fre- -- tax-fre- Do Buyers Set high-intere- st 30-ye- Tone for Fair Deals? tax-fre- 10-ye- World's 30-ye- g Amilw 0-- with our 1 - : 0 iii Acfz1105 ------ ---- - -- ': 2--'------ - 41164'7'' - - — ---: '' - cost-efficie- - - NEC 1720 processor rated at 10MHz 640KB RAM with parity checking imitobiluoadosits - zskTY-4- A Built-i- n Built-i- n MGA anarantentlE zero-coupo- n 1 No Hard Drive 20MB (69ms) 40MB (69ms) EN- - among suppliers and eventually affect your service — Honor appointments you make Look as if you are expecting them Don't sigh and shove your papers to the side with a $970 $1120 Epson SAVE $11 printer CGA CVGA $830 $1110 $1260 $1130 $1410 $1560 Epson LQ-51- 0 &dila LQ) LX-81- 0 Provides graphic emulation 41) (Regularly $349) 3 39 (Regularly 1 --- SmartPark paper parking Seledype control panel and 4KB buffer Automatic sheet load and push tractor feed Parallel interface (II" carnage 180 draft30 NIQ) 'I tional print direction with logic seeking in text and bit- image graphics modes resident fonts and 6KB buffer (11" carriage 225 Epson -r---- 717A Offers letter quality printing and features bidirec- zero-coupo- 4111 $189 $199) with tho ad throueh December Z 1989 L Watch for our annual Twelve Days of Christmas promotion coming December 10! Twelve days of special gift ideas and surprises Versatile Luxury Automobile 3 $690 ono hot-cake- Compundd 255-878- 7 6985 So loommoongly e Three and two half-siz- e expansion slots 525" 360KB diskette drive 8087" math coprocessor socket enhanced kerboard tt power supp y dual hard drive interface dual diskette drive controller Built-i- n parallel port and two serial ports -:401-4---- e workhorse! XT-compati- Powered by the snappy NEC V20 microprocessor the PCs CompuAdd 810 is a top performer among entry-leve- l Affordable enough for student use Powerful enough for the home office The Compukid is a highly system for word processing spreadsheets and database applications that don't require 80286 or 80386 architecture zero-coupo- LAFORZA 4WD undermine your reputation II 1 - - t !1111114:15 1300 East S Customer driven by design- - Salt Lake City la X Superstores in North America and Growing 76 9am to Opm Thurs till Spm: Sat Mon—Fri St reserve the nght to hnut quantity Pnces are subtect to change guarantee does moneyhad They-da- software at expendabk not tnclude ten of Avadabduy 9m products hnuted to 5pm at some stores PPM attitude — Apologize for keeping sales representatives waiting You may have limited time to meet with them and you need not exceed that but be lespectful pay attention and act interested for the time you have promised — Hold calls and interruptions If you must rush offer to reschedule — Accept a fair price Some suppliers have earned the right to charge the prices they do The value is there — Persistently needling prices to wear down your supplier may backfire — Pay on time Customers play the strangest games with suppliers or vendors They and their systems stall payment sometimes because they don't have the funds Sometimes it's because they want the feeling of being in power as the buyer Whether the supplier is a large company or cottage industry individuals within the company can be personally penalized by late i At t a' otbatoe7----- p—- ow ii --- -t :7::""-tt -- ' s 4'qv4e1 r Are Vi igstsici01 14°1VEY vt41351 I 11-- 1toCIO P Iv 0LON ORDER ft 1:1 VALLE:y :i7:! :'S"6146104''"41 1 i'': "' : ' l' I tr4i1 l':'4ttcli'1::1''-':'':1ill ' m s ' ' i:' — eiletvifi 4 l''''741 ' e kitt -- ' L'''!tS:-irriCY:1- ' : '' 's kt: 2:: 1 ill- cvscoc't - 494E5 S1' ----- -- - -- 501177e ) ' ' '''":::'"N 4) xi: ' rc - PRolt CHEQUE I 1 "7rts1z7:z'' Nc '4vNtl' ' ! 4 111111111171k C01A151 P Vfac (JO" ot- GOVERNMENT 'g ckNbN- -- -t' NItZ '1 014 s177 - 011 OWNED Y- ' ttr - PROPERTY ''' i: ' A OwlaArPlets: Package -- 7 por-- lot - - i:t i' iv )1k4t-R- t: ! iii i ' C '' FDIC SEALED BID AUCTION COMMERCIALRESIDENTIAL LAND FREE CHEC ING vs VALUE LUS Elk P For List of properties and more information b TRUDY STARK COLDWELL BANKER 801-943-44- Final bids due December 1989 5 THE STATE OF UTAH ADVERTISEMENT FOR SPACE State of Utah Deosfon of Facitrtres CrOnstructrer arxt reasrg Management requestS all persons nterested office space to the State to srArmrt a DDposai by 200 pm December 6 1989 Specrircalions are avaiatae upon request at ths Otte of contact Lom P 88eisen Ottoce of the State Treas4rer at 60 53 8 1043 The r PROPOSAL iDENTIFiCA DFCM8911 TON TYPE OF SPACE AMOUNT OF Office 5 Approxirnatc feel SPACE 845 useable square Salt Lake CAty Ltah ir ar aea 70c East te 4 "vest bounoed and NOrth lempie to I3u0 South LOCATION LENGTH OF LEASE Five (5) years wth option to renew 12 reserved on ste oadng won access to acioit)or)al parking stails PARKING stais pOc MISCELLANEOUS Now You Can Get an Account with More Value Than Just Free Checking 00 Facikbes must corlorrn to the Heaitn Handicapped Erle(gy 1)4PA UBC and all who( appkcato4e state standards state codes and local codes Eac)Ilis all zoning rrtuSt requiremIs 19'40 Or Or atout March As you make the comparison can you honestly tell yourself that free checking is still the best deal in town? 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