The Salina Journal from Salina, Kansas • Page 19

SAUNA JOURNAL MONEY SUNDAY, AUGUST 9, 1998 STOCKS RETIREMENT 401 (k) holders urged to sit tight Stock-holding workers advised to keep their focus on the long term r.By DAWN GILBERTSON The Arizona Republic tf Employees of Mark-Taylor Residential were to receive a lit, something extra in their checks Friday. It's not more money but some words of wisdom that could pay off in their retirement years. In a memo, the top executives of the Scottsdale, apart- developer warn partici- pants in the company's 401(k) 'plan that they could see big declines in their accounts if the stock market stays rocky but suggest that they stay focused on the long term. "History has convinced many experts that one should not panic and sell out," during down times, wrote Scott Taylor, a principal in the company, and Matt Perrin, the firm's president. "This is particularly important given that your 401(k) is a term investment plan, which over time will not be largely af- by the current market fluctuations." The bottom line: "Keep an vestment mix that you are com- with and remember stocks go down sometimes." It's a message being sounded by employers, financial plan' Vi ners, mutual fund companies and other investment profession- "'als in the wake of the stock market's recent roller coaster ride, capped by Tuesday's plunge.

The nearly 300-point drop in the bellwether Dow Jones industrial average left the market down 9 percent from its July highs, almost enough to call it a correction. Perrin said the company has sent out memos to its 150 employees periodically since the red-hot stock has spoiled many investors with annual returns as high as 30 percent the past three years has cooled. Last week's memo was planned even before Tuesday's free fall. "We just want to be proactive and keep them informed," he said. Del Webb Corp.

employees have The Associated Press This trader at the Pacific Stock Exchange kept a close eye on developments last week as stocks tried to recover from Tuesday's fall. been getting similar reminders for about a year, courtesy of Fidelity Investments, the mutual fund giant that administers the home builder's 401(k) plan. The theme: how to handle volatile markets. The advice: Don't freak out. "They've been saying things market corrections occur, it doesn't mean you should said Gail Paul, Del Webb's director of benefits.

She had to sound the same themes herself Wednesday, as she was introducing Webb's 401(k) plan to employees of a couple of Florida housing developments that the company recently bought. To support their buy-and-hold recommendations for investors saving for retirement, investment experts roll out evidence faster then you can say After the market crash in October 1987, when stocks fell 22.6 percent in one day, the market went on to finish the year with a small gain and was back to its previous high in 22 months. If you invested $1 in the market in 1963 and didn't touch it until 1993, it would have grown to $24. -But if you were out of the market during the 90 best trading days during those 31 years just 1.2 percent of the time you would have a mere $2.10. This is according to a University of Michigan School of Business Administration study widely publicized in 1995.

Remember the 500-point plunge last October? The Dow was back in record territory in February. Financial planners say such statistics argue against so-called market timing, or moving money out of stocks when you foresee a fall and back in when you think they're headed up. The problem is most investors lack the skill to time things right. "The risk people take is getting out and missing out on the rise," said Susan Edwards, a certified financial planner with Morgan Stanley Dean Witter in Phoenix. George Fraser, an assistant vice president at Piper Jaffray who specializes in 401(k) plans for companies including Tempe-based Insight Enterprises, is so adamant about devising an investment mix and sticking with it that he urges employees to call him before they move money around.

"Every single person has my direct line," he said. "I say, 'You call me, and I'll explain why you probably shouldn't So, are people listening? Surprisingly, yes, Fraser and others say. While they're no doubt a little concerned and have called to check on their balances, most don't appear to be making any rash investment decisions. Pat Wilkie, benefits administrator for Samaritan Health System, said no employees called her office with concerns or questions after Tuesday's 3 percent drop. Ditto at Mark-Taylor Residential.

Investment pros chalk it up to a better-educated public. Employees and companies have had to learn to deal with the ups and downs of the market as 401(k) and similar plans have replaced traditional pensions. "People now have become familiar with managing risk," said Louis Harvey, president of Dai- bar, a Boston-based financial services research firm. Family, fans make idea work FROM PAGE B8 always thought we wanted sto-serve steaks," he said. "It just took a while to get there." I By the time he began serving meals, the emporium had 130 members.

"We advertise by word of Bauer laughed. "I must have a bigger YV- mouth than I thought." Bauer is proud of his family, who pitch in to help. Bauer's sister, Judy, helps by waiting tables. His sister, Ruth, serves as bartender and cocktail waitress. Bauer said his parents are usually the first customers every Saturday night.

They enjoy their meal, then it's off to the kitchen where the dishes await. "They say sometimes it would be easier just to buy their meal," Bauer laughed. "Even the kids help work when they come home from college," Judy said. "We even use mom's homemade pickles on the bar." "We 'advertise by word of "i- mouth. I must have a bigger mouth than 1 thought." Mark Bauer PERSDIMALS Former DARE chief joins Saint Francis James DuBois has been hired by Saint Francis Academy as coordinator of the ropes challenge program, which is designed to increase the confidence of at-risk children through obstacle courses.

DuBois is a former Saline County sheriffs UUBUI5 deputy, where he ran the DARE anti-drug campaign. Psychologist joins area mental health center Aaron Kipp has joined the staff of Central Kansas Mental Health Center as a psychologist. He is a graduate of Emporia State and Washburn universities. Dennis L. Bozarth, CFP Registered Principal Branch Office Manager 921 Buckeye Salina, KS 67402 (785) 823-02Q5 SunAnxerica Securities, Inc.

Member Pacific Stock Exchange, NASD, SIPC SunAmerica Securities A SunAmerica Company Salina industrial Radiator Specializing in Radiator Rebuilding "No Job Too Big!" 20a E. Pacific (785) 825-6678 KIPP PERMITS These are the permits issued recently by the Salina Permits and Inspections Department. Residential miscellaneous 1220 Martin, Elroy finish basement, $11,900. 619 Park, Aaron L. Hamilton, convert apartment into single- family home, $30,000.

Airfares from Salina Find out how you can benefit from a Roth IRA with a Platinum Shield 81 Tax-Qualified Annuity. Call anytime for www.shelterin8.com i We'll always be there for you. Jean Curry 2737 Belmont 823-5129 Shelter Life Insurance Home Office; Columbia. MO Destination Price Destination Price Denver 198 Atlanta Vegas" Baltimore Los Angeles 278 Boston PHbenlx San Francisco 240 Orlando 31.8.^Sfc Louis All (ares are the cheapest round-trip prices from Salina Municipal Airport as of the previous Thursday. 176 242 282 198 232 299 CHAMPION SEMINARS "Originate New Ideas" "Have A Dally Personal Growth Program" Phil Goleman 26 years experience Management Employee Seminars Consulting, Sales Training, Speeches, Motivational Programs.

P.O. Box 6172 Salina, KS 67401-0172 (785)825-4161 Salina Journal Source: Action Travel Journal Graphic owner AP photo by STEVEN HAUSLER Hays Daily News Mark Bauer rushes out of the kitchen with desserts for some of the customers as his parents, Josephine (left), and John wash dishes recently at the private club. FEDERATED INSURANCE LEADERSHIP COUNCIL MEMBER HAL R. PETERSON P.O. BOX 1953 SALINA, KS 67402-1953 Membership in the Leadership Council is awarded by the Federated Insurance Companies for superior performance in providing professional insurance service to Only sixteen marketing representatives throughout the United States receive this monthly award.

It recognizes exceptional commitment to providing quality insurance programs protecting business, property, and people. FEDERATED INSURANCE! FEDERATED MUTUAL Insurance Company FEDERATED LIFE Insurance Company HOME OFFICE: Owatonna, MN 55060 Phone: (507) 455-5200 INTERNET: www.federatedinsurance.com Last winter the little bar suffered heating problems, so improvements were focused in the larger dining area. A separate second bar room was added to the dining area. They began serving banquets, proms, reunions and parties. They now know the building can hold 180 people comfortably.

They also started hosting specialty nights such as German buffets, stew, lasagna, Mexican night and prime rib night. Bauer is thankful the guests they have been reliable. Urban and Rose Landweher have enjoyed dinner at the emporium every Saturday night they are in town which has been just about every weekend except two. "It's nice to have a place to go and enjoy a meal," Rose said. "Being retired, we don't get out much," Urban said as they enjoyed their weekly dinner.

Meanwhile John and Josephine Bauer wander back to the kitchen to begin the dishes he washes and she dries. "At least he gets his hands clean once a week," Josephine laughs. INTEREST RATES AUTO HOME BUSINESS HEALTH LIFE All Your Protection Under One Roof American Family Life Insurance Company Home Office Madison, Wl 53783 Home Health Auto Life 827-0447 The Salina Journal welcomes these conventions and meetings to Salina; August 10 Car Club August 10-14 Property Valuation August 11 Kansas Cellular Skillpath August 12 Golden Agers KAHA Career Achievements August 13 KSHSAA Mid-America Payment Exchange August 13-15 Isis Shrine August 14 Kansas Cellular August 14-15 Lutheran Laymen's League August 15 Harley Davidson Corvette Club 20 people 30 people 20 people 40 people 30 people 60 people 30 people 60 people 50 people 150 people 20 people 100 people 50 people 50 people Red Coach Inn Ramada Inn Heart of America Inn Holidoirtf Mid America Inn Red Coach Inn Holidome Red Coach Inn Ramada Inn Red Coach Inn Heart of America Inn Heart of America Inn Mid America Inn Heart of America Inn NORM PIHL 1400-B S. Santa Fe We welcome you to and hope you enjoy your List provided courtesy of the Salina Area Chamber of Commerce Salina Journal Salina Journal For convenient home delivery, call 82 3-6367 or I-800-827-6363 (Kansas). 1.

TAX-FREE MUNICIPAL BONDS 3. U.S. GOVERNMENT GUARANTEED BONDS 5.54% Rales Effective as of 8-3-98 Kale expressed as a yield in maturity May be subject to alternative minimum lax. JMS Financial Services 785-823-3035 SECURITIES SOLDTHROUGH LEDGER 111 8.5th Salina, KS 1-800-823-3034 MEMBER NASD are).