The Akron Beacon Journal from Akron, Ohio • Page 12

urnal Monday, November 30, 1937 I PERSONAL FINANCE rr. Tnnrnmnwi TERM LIFE INSURANCE Age Premium 35 590 45 1,020 55 1.S40 65 5,750 aich for wrin in caoilal-gaiES tax XL Beacon Jo: (.. At the end cf last year and the beplnnins of this year, stock prices wer? affected because of the change In the tax law. Since the tap marginal tax rate drops from 38.5 percent to 28 percent In 1988, how do you foresee its ef Purr the 1.5 million pesos, and tell them they're young enough and fast enough to get to Mexico and spend it while it still buys more than a Corona or a few Tequila shooters. Questions about personal finance and investments may be sent to Scott Burns in care of King Features, 235 E.

45th New York, N.Y., 10017. Those of general interest will be answered in future columns. Burns' column is distributed by Cowles Puppies aplenty? Sell or give them away with a "3 for all" ad. Only $6 for 3 lines, 3 days. 375-8222 The Beacon Journal would my Investment be worth? I know very little about foreign exchange, so I can't see the advantage, if there is any advantage to devaluation, as low as the peso Is.

R.O., Dallas, Texas. A. There is an old joke only government can take perfectly good paper, put ink on it and make it completely worthless by calling it money. What your children will get when you are gone and forgotten is wallpaper that doesn't come in convenient rolls. The peso was under 1,000 to a dollar when I was in Mexico in January and just over 1,400 to a dollar when I returned in July.

At the end of October, it was at 1,622 to the dollar. With a decline like that, against our sinking currency, who needs a devaluation? Call your children, give them PSE-HOUDAV Fu'-iture by Pl nnV IV Mk ri VSH sterns too good to be true. A.H., Hurst, Texas, A. The Tax Reform Act of 1936 does a great deal to simplify or altogether eliminate taxes for people with modest incomes. The basic rules are simple: The standard deduction the amount you would use instead of itemizing your deductions will be Increased to $5,000 for joint returns, $4,400 for heads of households, and $3,000 for single returns beginning in 1988.

For 1987, the amounts are $3,760, $2,540, and 2,540, respectively. The personal exemption will increase to $1,900 in 1987, $1,950 in 1988, and $2,000 in 1989. After that, the amount will be indexed to inflation. The extra deduction of $1,080 that you can now claim if you are over 65 or blind will be changed to $600 for married individuals and $750 for single people who do not itemize deductions. While it may not be particularly simple, the bottom line is that the threshold for paying taxes has been increased substantially.

An elderly couple, for instance, can have taxable income of $10,100 in 1988 before they are liable for taxes. Add Social Security, and they can have a good-sized cash income and have no tax burden. After that first $10,100 of taxable income that is excluded by way of the standard deduction and exemption, the next $29,750 will be taxed at 15 percent. Q. I bought 1,535,000 Mexican pesos for $1,000.

Ilopefally, long after I'm gone and forgotten, my children might get who knows what. My question Is: If the peso Is devalued, as It was In 1982, what cms mm mi i it ru its-- tuj i fr. 4 nmn 7 5 COUNTRY ENGLISH ROLL 54" 22" 45" I 1 1 1 Reg. $600.00 SAL ySElKO QUARTZ DEj I I Touch Sensor World Timer at Store Name The World Timer vnrH Touch SfiV)r puts 27 lime zone at your fingertips. Simply touch a rtv on Hie work! nwp jnd the corresponding time, day, dale and lime lone appear.

The h.in(K(inii' (li kii)) lU-sin nidkt-i it the period accessory for any home or office Battery npor.iicl i.k) Annther ol the innovativ? Seiko Quartz Clocks in our collection loday. COLONIAL ROLL TOP Ann tn tL jl II 13 it I 1 i Mil I1 Reg. $504.00 Oiii-Ci able incomes in this range from earnings, many more people will find themselves in these brackets because they have made a major sale that involves realizing a onetime capital gain. One of the more common letters this year, for Instance, is from readers who own highly appreciated property (often in New Jersey, New York, and Massachusetts) who want to sell and retire. Although they may enjoy the $125,000 capital-gain exclusion for sale of a person's home after age 55, many of these people will be adding a $50,000 to $100,000 capital gain to a family income of $40,000 or $50,000, exposing most of their gain to a 33 percent tax rate.

What this means is that on a once-in-a-lifetime sale, the tax reform of 1986 has increased the maximum tax rate from 20 percent to 33 percent. Will the tax rate change have an effect on stock prices? I doubt It: There are too many other factors making much too much noise. Also, with a movement afoot to increase taxes on earned income, there is a counter-movement to reduce the capital gains tax rate. Reducing the rate would have two positive effects: It would avoid a "lock-in" effect so people would realize gains and pay more taxes (even at lower rates) and it would also be a major signal to foreign investors that we were doing something to encourage saving and investment. The 1986 tax reform, overall, has a negative impact on investment.

Q. In a recent column, yon mention a new tax law under which a single person will receive a $3,000 standard deduction, a $1,900 personal exemption, and a $750 deduction for being over age 65. Could you tell me more; this cial owner, indirectly purchased 12,000 shares at $24 2b per share on Oct. 12. and now indirectly holds 796.379 shares.

Industrial Equity beneficial Owner, indirectly purchased 12.000 shares at $24 25 per share on Oct. 12. and now indirectly holds 796.39 shares Industrial Equity (Pacific) beneficial owner, indirectly purchased 22,500 shares at $23 25 per share on Oct. 14. and now indirectly holds 796,379 shares Industrial Equity beneficial owner, indirectly purchased 22.500 shares at $23 25 per share on Oct 14, and now indirectly holds 796.373 shares Wilbur Enterprises beneficial owner, indirectly purchased 34 500 shares between $24 25 and $23 25 per share from Oct 12 to Oct 14, and now indirectly holds 796.39 shares A.

Schulman Inc. Brian R. Colbow, officer, purchased 500 shares at $26 5 per share on Oct. 29. and now holds directly 5,486 shares.

Sonoco Products Co. Robert R. Pearca, director, purchased 1,000 shares at $27 50 per share on Oct 12. and now indirectly and directly holds 26,093 shares. Donald R.

Russell, officer and director, exercised an option for 6,000 shares at $1003 per share on Oct. 5, and now indirectly and directly holds 25.253 shares Tranzonic Cos. Michael Gannon, officer, sold 210 shares at $14 29 per share on Aug 9. and now holds directly 360 shares Six-month summary Company Accumulating Divesting ALLTEL Corp. 3 0 Bearings Inc.

1 1 Chicago Pacific Corp. 3 0 Commercial Shearing 2 Cooper Tire Rubber 4 4 Eagle-Picher Industries 5 6 Fifth Third Bancorp. 7 1 Firestone 6 9 Lamson Sessions Co. 3 2 Lesco Inc. 5 0 Life Technologies Inc.

3 0 Mr. Gasket Co. 1 1 Oglebay Norton Co. 5 2 Schulman (A.) Inc. 2 2 Sonoco Products Co.

4 1 Tranzonic Cos. 3 9.25 CERTIFICATE OF DEPOSIT FSLICFDIC insured up lo $100,000 Minimum investment $5 000 Very Liquid" A vanely of rales and maturities available Mail the coupon below, or call Dino LoPresti 216-384-1181 (out ol town, call collect) Rates as of Nov. 24, 1987 and subject to availability. "Biltrhpr A S'nrjer Inc ma.ntains a secondary rr.H.Ki.l Trie selling pnr.e Mure maluely is Surged lo marKdl 1 Butcher A Singer Inc. IUaakei Square I A) Mill Sin)! I Akron.

Ohio Alln Dmo I ol'restl aj pieane send rne mere mlormaiion on CDs Namo I City Slale7i) IW l-fUlll-l 1 JIIIU Yofh SliXh if I fect on stock prices late this year and early next year? R.S., Dallas. A. Seme investors will have more reason to sell and realize gains tnis year than next year because there will, for some, be a difference in the tax rate on capital gains. This year, the top tax rate on capital gains is 28 percent. Next year, although the top tax rate on all income will be 28 percent, there Is a wrinkle in the tax law that will cause some people to pay taxes at an effective rate of 33 percent.

Mystified? Here's how it happens. If you are married and file a joint return with a taxable income between $71,900 and $149,250, 'you will pay a surcharge of 5 nereent on income In that range, bringing the tax rate for that range to 33 percent. The effect of the surcharge Is to make the 15 percent tax rate disappear. If you file a head-of-household return, have income in the range of $61,650 and $123,790, you must pay the 5 percent surcharge. Singles pay it between $43,150 and $89,560.

The surcharge is continued on incomes over these amounts to compensate for the tax benefits of exemptions. A family of four, for instance, will have personal exemptions of $7,800 in 1988, which crt7att fhnm t9 1S4 in tnvoc TT 111 tjt V. 11 II- 114 I All mvvo. The 5 percent surcharge will be applied to all income over the $149,250 limit until the tax saving has been recovered. This will extend the 33 percent tax rate by another $43,680 for a family of four or $21,280 for a family of two.

This, the National Bureau of Euphemisms tells us, is called "tax simplification." No, there is no need to worry about the future of accountants. While some people have tax- 0 trading This is a list of securities trades reported to the Securities and Exchange Commission during the seven-day period ended Nov. 24 by officers, directors and principal shareholders of corporations based or haing sizable employment in Northeast Ohio. Titles of officers aiv as reported to the SEC. The information is gathered by InvestNet of North Miami, Ela.

ALLTEL Corp. Frederick G. Griech, vice president. dn option for 65 sh.jrt at $10 69 s'Mfe on N' 2, ind nuw In-lrls directly 937 shares Bearings Inc. John C.

Dannemiller, director, pur chased 200 stwiH at $33 bO per sham on Oct 21, and now holds dnectly 200 shores Chicago Pacific Corp. Clarence B. Lozaw, vico president, purchased (jUO slures i.etween $34 $2b 75 per share hum Oct 22 to Oct 28 and now holds directly 600 sh.ires William C. Tarp.tra, vice president, purchased 1.000 shares at $34 per share on Oct 23. and now holds directly 1,000 shares Commercial Shearing Inc.

John Nelson, director, disKsed of by gift lb. 601 shares at an unreported price per snare on Oct 26 indirectly ar quired 15.C01 shares at an unreported price the same day, and now indirectly and directly holds 52703 shares Cooper Tire Rubber Co. John Fahl, vice president, purchased 480 shares at $2 2b per share on Oct 22, and now indirectly and directly holds 10,408 shares. Eagle-Picher Industries Inc. Sidney J.

Weinberg, director, indirectly sold 700 shares at $43 2b per share on Oct 5, and now indirectly and directly holds 3.000 shares Firestone Paul H. Heise, vice president, exorcised an option tor 3,000 shares between $17 31 and $18 03 per share on Oct 1, and now indirectly and directly holds 7,163 shares Fifth Third Bancorp. Joseph H. Mead, director, purchased 1,000 shares $34 7b per share on Oct 22. and now indirectly and directly holds 9.101 shares Lamson 8t Sessions Co.

John B. Schulze, director, purchased 20.000 shares between and $6 50 per share from Oct 19 to Oct 20 Schulze indirectly purchased b.OOO shares between $0 00 and $6 bO per share on Oct 19 and now indirectly and directly holds 67,700 shares Lesco Inc. Ponald L. Dezember, president, indirectly purchased 1.000 sh.ires at $13 per share rjn Oct i. and now indirectly and directly holds 3 CXX) shares Life Technologies Inc.

Harold V. Fleming, deector. purchased bOO shares at $1188 per share on Oct 23. arid now holds d.rectiy l.Jb shares Mr. Gasket Co.

Thomas R. Hrudka, offn.er and director, G.MI shores at $2b per share on Oct 7. and no.v diw.tlv hOOOl shares Orjlehny Norton Co. Courtney Burton, chairman, indirectly sold ol.OiiO shares at $22 88 per share on 0t 14 and now indirectly holds 126, 2bO Auckland Poimion Fundi neneh- 2 -M I hetween 2 2 1 .2. ire frn Oct 12 to i i ,.,.) In-M-.

directly 39 1. Biiorloy Investments beneficial Hi'iiri tiy Hir Ii.imh1 34, WW shales iv. "I'm 3,2 2 mI 124 2'' per share from 12 'I. and now indirectly holds ft Graziers Assurance Co. I.i-i-e'ii.i.ii owner, indirectly purchased 'JI20O share between $24 2b and $23 2b fnmi (i -t '2 to Gi 14, and now indirectly twirl 3 '4 r.

hares Industrinl Equity (Pacific) benefi .8 nrvwn -11 J'i' Ulv jstiifim iiM ii i III I t'i 'J MWU TOP AuniPTIIA( MPTO rnnu Vrt onnioiiviMovairiorriUM Sets. Business Cases. World Pi Pff i 3 jTTj -iT i 'SSi2- TRADITIONAL DROP LID 29" 16" 44" (Pine Finish) $300.00 $23995 A i iii Th" 4XA BRAND NEW 1987 BODGE T1 15 VAN Lease For Only fff IHfcLiAStNG Equipped Not Stripped. Pearl coat paint, driver passenger seat, 5 spd. transaxel, 2.2 litre motor, tinted glass, power steering, much, much more.

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