Show Vj3 & li Qgg -- X ry flffi vv t The Salt Lake Tribune for a BY SUSAN TOMPOR CHARLES A JAFFE Investing jWith Your Conscience i A Gallup poll released last week noted that just 16 percent of Americans believe moral values are the key factor in rating a presidents job performance More than half of the respondents believe that the presidents skill in managing government is what counts If people feel that way about their choice for leader of the free world in the middle of morality its no wonder play no less that social and moral values dont top their list of priorities for investing in a mutual fund funds have been around for years but have always been dogged by performance so generally lackluster that it looked nearly impossible jto combine management and morality That may be changing Last lyear was a good one for funds with 20 scor-- I ing A or B grades from Lipper Analytical Services and carry- ing Morningstars desirable four- - and five-sta- r ratings Social-investme- I social-investme- Good Return: nt On an annua- lized basis during the past five years the Domini Social Index 400 stocks screened using broad environmental and social criteria has topped the Standard & Poors 500 index The strong results from 1997 are further proof that you can accomplish your financial goals in a way that is consistent with your personal values says Steven Schueth president of the Social Investment Forum the trade group for funds that invest using ethical and moral screens You do not have to surrender your beliefs just because you need to save for the fu- i ture According to the Forum Iwhich lists member funds on its Web site at wwwsocialin-jestor- g about 150 funds manage $96 billion using social screens as part of the investment process That amount is dwarfed by say the two largest funds run by Fidelity Investments (Magellan and Growth1 & Income have more than $100 billion in combined assets) but it represents an eightfold increase in social investing since 1995 Investing based on fundamental beliefs sounds good Funds calling themselves socially responsible implying that all other funds are irreattract investors sponsible who dont want to own companies that pollute sell products that are hazardous to societys health and so on Not Ail Rosy: Its a great idea but there have been problems in terms of performance and perception Social funds buy only stocks and bonds that meet managements agenda But screening out the bad guys raises costs and above-averag- e costs eat away at returns and the returns may be damph ened by avoiding sectors like gaming or tobacco Moreover social funds are not an choice managers Many present-da- y base decisions as much on a personal agenda as on a stocks balance sheet But the true social funds go a step further Their agenda is set in stone not by the managers whim and it remains in place no matter what happens to the manager or the parent company Thats crucial if you put the moral and ethical aspects at the top of your selection criteria Not all social funds are equal Some wont invest in government securities because the federal government wages wars Others buy Treasuries and note that the government subsidizes AIDS research and the arts The key for anyone thinking about buying social funds is to match your issues with managements and to be willing to sacif perforrifice some return mance returns to its historical in exchange for mediocrity peace of mind high-growt- asset-allocatio- n Jharles A Jaffe is E3 8 1998 home purchase Withdrawals for a home purchase are limited to $10000 Your beneficiary can get the money after your first-tim- e first-tim- e NEWSPAPERS KNIGHT-RIDDE- current-event- s Sunday February 5:FiSf Improve Your Finances in 98 YOUR FUNDS the BUSINESS tsznar'Wit Every year holds an opportunity to make money even years that look bleak Take 1982 a lousy year for jobs but a great time to load up on stocks Assume you had the money and the courage in early 82 to plop $10000 into a basic stock fund If you picked the Vanguard Index Trust 500 and left that money untouched you would have had $130550 at the end of 1997 Oh well Who knew that August 1982 would kick off the greatest bull market in US histoij? Who knows whats ahead for the market in 1998? The Asian economic crisis makes the future for stocks and US car sales uncertain We can however offer five sure bets for 98: IB Minimize your mortgage: Now is the time to do it The Asian currency crisis has driven international investors to put their money in US bonds and as a result long-terinterest rates have fallen significantly Mortgage rates are below 7 percent Before you jump make certain that you will save money by refinancing You must figure out how long it will take for you to recoup any costs associated with the new mortgage wwwmort-gage-netcoA must-se- e Web site: Mortgage-Ne- t how many Plug in your numbers years left on your existing mortgage and how long to calculate how you plan to live in your home much youd really save by refinancing Build a better tax shelter: The Roth IRA available beginning this year through mutual fund companies banks and others is one of the best retirement deals yet You and your spouse can save up to $2000 each a year And only one spouse needs to have at least $2000 in earned income in a given year So a retiree who has a working spouse can contribute up to $2000 to a Roth IRA And you can take money out e of a Roth IRA under certain conditions withdrawal the money For a completely tax-fre- e must be invested in the Roth IRA at least five years You can also withdraw tax-fre- e if you suffer a disability after retirement if youre 59Vfe or older or m tax-fre- death tax-fre- e You can tap into a Roth IRA at any time tax-fre- e if you withdraw only your original contributions e (You cant withdraw any earnings and have it be unless you meet the other rules) Another helpful Web site: The Strong Funds Roth IRA Analyzer at wwwstrong-fundscoB Look into an education IRA: The education IRA also new in 98 isnt nearly as attractive as the Roth IRA You can put away only up to $500 a year per child Again though you may never have to pay taxes on the Education IRAs earnings if you use the money for college education H Hunker down: Its too late to save for a rainy day during a downpour Sames true for recessions Most of us would be better off paying off our credit cards and building up our cash cushions now before the next recession Most economists dont predict a recession in 1998 But theres a fair chance we could see a downturn in 1999 or 2000 said Sung Won Sohn chief economist for Norwest Corp a Minneapolis-base- d banking and financial-services company n Even if there isnt a recession profits for US automakers could be hurt if foreign companies lower their prices significantly Sluggish profits could mean less overtime and sagging paychecks H See Titanic: Panicking didnt work then And it wont bail out your portfolio if the Asian currency crisis leads to an all-oglobal financial crisis either What you need to do today is to look at where your money is invested Are you enough years away from retirement to wait it out if stock prices sink? Or does it make more sense to add bond funds e investment trusts? All utility funds or could create a portfolio thats less dependent on stocks The cold reality is that the Asian crisis like the iceberg that did in the Titanic wont melt We will need to deal with the uncertainties in 98 and look tax-fre- full-blow- ut M real-estat- for the opportunities High Tech Lures Congressional Aides its traditional pattern of Old Stomping Grounds Helped Train New Capitol Entrepreneurs Technology is the new wedge to pry many people away from BY MARK LEIBQVICH THE WASHINGTON POST two-thir- On a recent WASHINGTON Sunday afternoon Nick Macri drove his new Indy into Senate parking lot No 16 zigzagging between the pylons at 20 mph Macri a former aide to Sen d Dan Coats won the at the Internet World trade show He figured his old stomping grounds would be a fitting place to joy-rid- e like returning to prep school and doing doughnuts on the football field It cast in sharp relief how Macris life speed and sensibilities changed since he left Capitol Hill to help start an Internet company In a symbolic act of frivolity he was swearing in a new go-ca- rt one-thir- go-ca- rt career path i Like many of his old cohorts including some former members of Congress Macri has traded the rules formality raw power and hierarchy of the Hill for the freewheeling culture of an infant high-tec- h firm In so doing he says he gets to drive the future and maybe even get as rich as some senators I gave up being a cog in an said extremely large machine Macri 27 who left Coats office amicably in September 1996 to become a founder of NetCapitol Inc a Washington-base- d company that specializes in Internet approplications for public-affair- s fessionals Hopefully I can make a bigger difference on the outside Im sure the Hill hasnt noticed Im gone and Macris OM Utah' Largest Computer Retail Chain! co- founders at NetCapitol include a former campaign consultant to Sens John Kerry and Edward i : Kennedy both Massachusetts Democrats an aide to Sen Bill and a staff memFrist ber in the office of former Pennsylvania senator Harris Wofford I Hill-to-te- of Utah government technology work The Internet began as a government program in the 1960s decades before today's World Wide Web developers produced the first generation of government and campaign Web sites In addition many information technology companies that rely on federal contracts were founded by former government officials But todays career pipeline has conshifted from public-secto- r nections Before when someone left government or a political job to start a company they would V'VUsre MHZ cfcujs a cling to that former lifeblood as a prime source of business said Dave McCurdy who served seven terms as a Democratic representative from Oklahoma He then started toe McCurdy Group a firm specializMcLean ing in technology and health-car- e business strategies Now Washington is just a few miles to my east but my consciousness is symbolically geared to toe west McCurdy said By west he means toe technology corridor along the Dulles Toll Road and beyond that California and the Pacific Rim Tech f$1 099) With 15 Monitor Special sale prices do not apply to previous purchases public-affair- R-I- s to help company nology was a natural segue into the private sector he said It also was a necessary segue for McCurdy a rising Deraderatic star who made an unsuccessful bid for a Senate seat in Oklahoma in 1994 He considered job offers on Wall Street and back hfune in Oklahoma but chose to leverage and his technology backgroup contacts acquired through his House committee work 1(a prof: it from the local tech explosion He was mentioned recently as a possible successor to Army Secretary Togo West but he says he has no plans to return to public life Va-bas- Sale Prices Good All This Week! ! i Megs 21 Gig Hard Drive MediaGX 24X 16 CD-RO- 'ssWitti 336 Fax Modem with Voice 14 Monitor Meg PCI 3D MPEG Video 14" 28 NI SVGA Color Monitor 2 ' AMDKS233 With MMX M Bit 3D Sound Card 233MhzPentiumiII With MMX Technolcgy GomputerSystem Computer System 233 Mhz Intel 233 Mhz AMD K6 with MMX Enhanced Processor 32 Megs EDO Ram 43 Gig Ultra DMA Hard Drive 4 Meg PQ 3D MPEG Video Card 24X CD-RO16 Bit 3D Sound Curd 33 6 Fax Modem with Voice 15" 28 NI SVGA Color Monitor Groliers Best Of Seven CD Pack Altedi Lansing ACS3JX Speakers I Pentium!! 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Utah's Largest Computer Retail 8 A i 200 Mhz Processor with MediaGX WITH: 32 EDO Ram Computer System Technology Pentiums MMX Enhanced Processor 32 Megs EDO Ram 32 Gig EIDE Hard Drive 4 Meg PCI 3D MPEG Video Caid 24X 16 Bit 3D Sound Card 33 6 Fax Modem with Voice IS" 28 NI SVGA Color Monitor Groliers Best Of Seven CD Pack 80 Watt Amplified Stereo Speakers Dmma of Fodfiftss ConttaKtkm and 27 left the office of Sen Dan Coats found NetCapitol Inc an Internet and Technology Tdis Safe! 200 Mhz Intel afl MonoQiniMl ptnow nlwiitid m Imsciq poe tort Stoto to wbmi a proposal by fcOO e Wsdntsday Fcbrvary 25 1991 jfwnanoniflnQiBnn lor subfmnme prapmak are arefafelt upon faqucsl lbs Dwrm of fooltof CmtodM atd Monqiim& Ray LutkigTbe Washington Post 4 Nick Macri Sale! epseii tag leg 200 Computer System m mm nwl$ Washingtons business tradition has long been tied closely to 200 Mhz Penlirm STATE OF UTAH State most impossible to change Here I have toe opportunity to revolutionize an industry - With MMX TH Va-bas- Tju2' sqjjJ ile skuhfll 6 refRelatively young ugees retain much of the energy and idealism that served well in policy-makin- g Together they are helping transform Washingtons public-privat- e career path from ABtmmxm polit- ical work said Roger Stough a professor of public policy at George Mason University in Fairfax who studies the local economy In the 1960s roughly of the regions output was tied to federal spending comd pared with about today Stough said Likewise local high-tec- h wages are growing by 15 percent to 20 percent annually said M Anirban Basu an economist with the Regional Economic Studies Institute at Towson State University in Maryland Yet for all the heady talk of ingenuity innovation and joining toe Geek Elite these newbie entrepreneurs arent taking a pay cut The money is definitely a big part of why I left said Macri who nearly doubled his base salary when he switched careers And if NetCapitol goes public he will gain a big stake in toe company Beyond these objective barometers political work has a diminished cachet recent defectors say Capitol Hills culture of process power and derivative status appears deadening next to toe indeappendent and market-drive- n proaches that define so many New entretechnology start-up- s preneurs boast how little of their business comes from government or political entities and those who do get government contracts are often apologetic about it Washington is much less a company town now much more entrepreneurial said Raul Fernandez a former congressional aide to Jack Kemp and founder of Proxicom Corp a Reston Internet services company His typical workweek is nearly twice as long now he said adding that he sleeps only five or six hours a night compared with eight in his Capitol Hill days Still Fernandez said his time on toe Hill prepared him for his new incarnation It taught him to think nimbly scramble for resources and constantly sell ideas Yet despite contact with some former colleagues including Kemp who sits on Proxicoms board of directors Fernandez says he feels far removed from his former arena Congress plods he said and its environment is al- J j 1 I |