The Palm Beach Post from West Palm Beach, Florida on November 20, 1968 · Page 17
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The Palm Beach Post from West Palm Beach, Florida · Page 17

West Palm Beach, Florida
Issue Date:
Wednesday, November 20, 1968
Page 17
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Palm Beach Post, Wednesday, Nov. 20, 196817 Brokers Suggest Several Outlets Trends Create Investment Problems ' (CJNra TtrkTinwi Mtw Strvkt NEW YORK - The widow with $100,000 to invest has no easy task, because there are many different answers. Dreamers who think it would be great fun to have that sum at their check-writing finger tips eventually trips over a banana peel of reality. How to pick a good broker? What kind of stocks to select? What particular issues? What income to expect? How to know when the issues should be sold? What appreciation "" BIG can be hoped for? What about the hurdle of inflation rising 4 or 5 per cent a year? The sum of $100,000 is not large by today's inflationary standards, but it is about what a moderately prosperous businessman might leave his widow. "As a widow myself it is a question I can understand," says Mrs. lone Sutton, a registered representative of Wins low, Cohu & Stetson, brokerage firm. Based on a few assumptions, she has suggested a portfolio. Her widow qualifies for $1,400 social security income, has a house on which the mortgage is paid but which requires about $1,000 for taxes and maintenance. and she has $100,000 left her by her husband. She needs about $5,000 a year from her $100,000, if possible. "Such a woman," Mrs. Sutton explains, "wants security to cope with daily living and hedge against inflation." Mrs. Sutton's suggested portfolio combines a mutual fund (a steady basic income), some bonds bought around par prices which might appreciate if interest rates decline (and offer high return now) and sound common stocks (with good growth potential ) . She suggested investing $30,000 in Affiliated Fund plus $5,000 each in the following bonds; General Telephone, 6 l'j per cent, maturing in 1991; Cincinnati Gas, 5 ', 1997; Illi- nois Bell Telephone, 6. 1998 andConsum. Power. 6, 1997. She recommended buying 100 shares each of the following common stocks ; American Metal Climax, Combustion Engineering, Champion Spark Plug, Goodrich, Corn Products, Crown Zellerbach, Standard Oil of Indiana, Great Northern Railway, Tenneco and Air Reduction. This would leave about $4,000 to be deposited in a savings account. On this portfolio the income would amount to about $5,000 a year. At Hentz & Co., Charles Rolo, an analyst and portfolio manager, has a somewhat different approach. For the widow with $100,000 he believes in BANDS ill ' CJS Istugj " ' 1 ...-V.-- , . - flUl, f i-1 A i IN COLOR 7 PM TONIGHT high yield, moderate appreciation; $18,000 in bonds with high yields, and $24,000 in speculative issues in industries which stand to benefit from an end to the war in Vietnam construction, medical care, education. His recommendations, their amounts and cost, follow Marine Corp., 200 shares, $9,700; Sun Oil Convertible PFD (200) ($11.0001; Texas Gas (200) ($7,600); American Can (200) ($10,600): Standard Oil of N.J. (100) ($7,900); Gulf & Western Bonds, 6 per cent, 1988 (10) ($7,400); Pacific Gas Bonds, 6 7b per cent, 1999 ( 10) ($10,200); Lykes (200) ($6,800): Penn Dixie Cement (200) ($6,600); Cutter Labs (200) ($6,000) and Allyn & Bacon (200) ($4,800). This would leave about $12,000 in cash available for buying opportunities. To summarize, Rolo points out that the portfolio would provide almost $3,700 excluding any yield on the cash held for trading purposes. "I would be inclined to send the client a check for $500 monthly in the hope of making up the difference through capital appreciation. It is my belief that under reasonably favorable over-all conditions a portfolio invested and managed in this way can show an average appreciation of 10-12 per cent a year. Obviously in bear market years the portfolio would be likely to show a decline but this could be made up in strong bull markets." LIVING COLOR POftv COLOR PORTRAITS f NT more emphasis on growth stocks. His idea is that the widow should take some of her income out of capital appreciation to supplement dividend income. Also, this can cut taxes because taxes on capital gains run about half the rate of taxes on dividends. "My conviction" says Rolo, "is that the best way to preserve capital is to manage it aggressively. When a client has insisted on high yields as a primary consideration the account has turned in a disappointing performance. On the other hand a number of clients have agreed to let me give them a monthly basic income they require from the account and let me manage it primarily to achieve capital gains." His mix consists of five quality issues ($45,000) for BIG 8"x10 "PORTRAITS IN r i y Britons Learn Of U.S. Policy L 4 r z 0 0 0 r 0 71 H 0 JO H 71 (A 5f f W.' - '' Sim. (A h 3 h K O CL O J 0 0 0 z J NOW ONLY Plus 500 Handling SATISFACTION GUARANTEED or your money refunded. FOR ALL AGES! Babies, children, adults. Groups photographed at an additional 990 per subject. I ' v , t 0 4 I , ? GENUINE FULL NATURAL COLOR PORTRAITS! . ,MITFn nFrrPi Not the old style tinted or painted black & um 1 LU urrLn. white photos. One per subject, two per family. WE RESERVE THE RIGHT TO LIMIT QUANTITIES. This very special offer is presented as an expression of our thanks for your patronage. (C) N.Y. Tinws Newi s.rvlc. LONDON - Forward and backward views of United States economic policy have been offered in London by two visitors Pierre Renfret. an economic adviser to President elect Richard Nixon, and Henry Fowler, the outgoing secretary of the treasury. Renfret, in London on business for Renfret-Boston Associates, his firm of economic consultants, tried to counter the impression that a Nixon administration automatically means lower taxes. "There is a very good possibility that taxes might have to be raised." he said. Nixon's overriding objective would be to re-establish confidence in the dollar, he added, and thus "the new President's freedom of maneuver will clearly be limited." Fowler was in London to visit British Treasury officials on what amounts to a farewell tour of European financial centers. The secretary, whose resignation becomes effective Dec. 20, will also attend the North Atlantic Treaty Organization meeting in Brussels. Both Fowler and Renfret commented on economic affairs in interviews with The Times of London. Fowler said he was unhappy about the policy mix under which near equilibrium in the American balance of payments had been achieved in the second and third quarters. He saffl he would prefer to rely less on capital restrictions and more on trade surpluses and reduced military expenditures. Renfret said that the question of imports would be one of the first concerns of the Nixon administration, although he softened his remark by adding that the first step would be to determine whether existing agreements are being honored. One possible target is imported Japanese textiles, he said, and another is auto parts, Especially parts imported from Canada by United States manufacturers. South Pole Visit SYDNEY (AP) - Bill Crook, 12-year-old son of the U.S. ambassador to Australia, is the youngest person to visit the South Pole. Young Crook returned to high school in Canberra last week after an antarctic trip in which he walked around the earth in eight seconds by circling a striped pole erected at the bottom of the world. HOURS: 12 NOON to 8 P.M. NOV. 18 THRU NOV. 22 SHOP WESTWARD CENTER 2501 OKEECHOBEE RD. 683-6333 NORTH PALM BEACH C gJIEUtlfi f,JH s CCe nrorrimcgl) 4rwiwcvfi ... - U.S. 1 & NORTHLAKE BLVD. (RT. 809) 844-3557 siivuiuod aoioo UOd UOIOO 9NIAI1 SPECTACULAR SHOE SALON SPECIAL PURCHASE! We purchased entire surplus inventory from one of central Florida's most exclusive women's shoe stores. SELUYS I RED CROSS Sl COBBLERS SHOP WESTWARD CENTER IIORTH PALM BEACH MEEDS 683-6333 2501 OKEECHOBEE RD. 844-3557 U.S. 1 & NORTH UXE BLVD. (RT. 809) JJll. Open Daily 10 am to 10 pm Sunday 12 Noon to 7 pm

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