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Clarion-Ledger from Jackson, Mississippi • Page 25

Jackson, Mississippi
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PEOPLE IN BUSINESS TO SHARE TIPS, IDEAS: Contact: Jack Weatherly, business editor Jackson area: 961-7235 Toll free: 1-800-222-8015 Fax: 961-721 1 E-mail: MOTLEY FOOL MARKET IN REVIEW THE CLARION-LEDGER JACKSON, MISSISSIPPI SUNDAY, APRIL 11, 1999 TO Save mourning family members headaches, hassle Fears about future nternet competition part of problem By Robert Schoenberger Clarion-Ledger Staff Writer to explain the drop if the same thing was not happening to the rest of the industry. Analyst Keith Pomroy is the senior editor for REITs at SNL Securities, a real estate information and investment company. He credits a broad series of fears about the future of real estate in general as the cause of the price drop for the trusts. One of the biggest fears is the Two years ago it was OK for me to die. Today it would be a lot more complicated.

If I were to die today, Georgina would have to deal Falling out of favor with they have long been considered long-term, safe investments. Another factor dropping REIT stock prices is the fear they may be overvalued in the market. In the mid-'90s, as the real estate industry emerged from a price slump, REITs became very popular, Pom-roy said. Stock prices began to rise beyond companies' earnings and more investors got on board. See REITS, 5C Many REITs own commercial shopping center property, and Pomroy said investors are worried those brick and mortar establishments will soon be replaced with online shopping centers with no storefronts.

"These things are not going to be boarded up tomorrow, but the fear is out there," Pomroy said. Those long-term concerns are particularly damaging to REIT prices because holders. "When you can get 40 percent returns on, the stability of a REIT is not all that attractive," said Sarah Clark, chief financial officer for Jackson-based Parkway Properties Inc. Clark has watched her company's stock price drop more than 21 percent since the beginning of 1998 despite increased income from rental properties. She said she would be at a loss pass along at least 95 percent of what would be taxable revenue to their shareholders.

Since a mid-1998 peak when the industry boasted a $147.2 billion market value, the publicly-traded trusts have dropped more than 20 percent. This stock-price drop has occurred during a time when many of the companies have been performing well and handing out large dividend checks to share Wall Street has been costly for real estate investment trusts in Mississippi and across the country. REITs are tax-exempt companies that generate revenue through real estate. By law, they must Delta, United, Continental hike leisure air fares American Airlines hasn't decided whether to match increase The Associated Press 3 Mm ii iiil liinMrMnaiiiiaMiir- 1 HOUSTON, Texas with many more Columnist questions than just a couple of years back. Should she, for example, convert her traditional individual retirement account into a Roth IRA? Together we exceed the income limit for conversion now but she would qualify if I die.

What should she do with all the company stock in my retirement plan at work, which has grown to be a larger share of our net worth than prudent diversification would suggest? I am not allowed to sell the stock now, but after I die Georgina could choose to keep the shares or cash them in. And how about our portfolio? We've opened three brokerage accounts in the past year because they offered enticing sign-up bonuses and other perks or, in one case, the best deal we have found for investing in no-load mutual funds. Will Georgina have the time or inclination to track these accounts? Or keep up with the frequent tax code changes that affect her freelance writing business? Would she prefer to hire a professional financial adviser and if so, which one? Obviously I won't be able to help Georgina with any of these questions after I die. And I can't answer them now either. Circumstances change, and those will be her decisions to make, not mine.

The only thing I can do is discuss these matters with her now and try to leave as much information as possible, including a brief explanation of the choices she is likely to face and the names of reputable advisers for her to consider. I have done this in an ever-expanding personal "book" that now runs close to 100 pages in a loose-leaf binder, and soon may need a second one. The information is also stored in our personal computer at home. Included in our book are the most recent statements from all our accounts and basic information about each, including the name and telephone number of a contact. The book also tells how to find our wills and health-care directives and other important documents, from our Social Security cards and life insurance policies to the owner's manual for our refrigerator, hot water heater and VCR.

Keeping this information up to date spokespeople were not returned. Northwest and US Airways did not immediately raise fares, which could prove to be a key factor in determining whether the increases stick at the other airlines, said Tom Parsons, who operates the con-sumer Web site When Northwest failed to go along with four of the six increases by rivals earlier this year, the other airlines quickly dropped back, cutting their fares to stay competitive. Likewise, Northwest's reluctance to raise fares last year thwarted attempts to implement increases. "If they elect not to do it," Parsons predicted, "the others won't." The two fare hikes that did succeed this year have already raised leisure fares by 7 percent and business fares 3 percent. Special to the Clarion-Ledger last month.

Meridian-based Peavey Electronics provided the sound and musical equipment for the weeklong event. Actor Woody Harrelson (left) backs up musician Bonnie Rait (right) as she performs at the Music Bridges concert in Cuba Some of the nation's largest airlines raised leisure fares 3 percent and walkup fares 1 percent on Friday, signal-ing what could be the industry's third increase this year. Continental Airlines was the first to increase fares, a move that was quickly matched by Delta Air Lines and United Airlines. It was unclear whether American Airlines, Northwest Airlines and US Airways would follow suit. United spokesman Joe Hopkins said the Chicago-based carrier doesn't automatically raise fares to follow a competitor, but "we have to make a judgment on each case." A spokesman for American Airlines said he did not know whether the airline would match the increase.

Calls to other American Mississippi, Cuba make music If this one sticks, that will mean a 10 percent air fare increase in the first four months of the year. mmm Peavey Bectronics of Meridian provides equipment for concert By Patrice Sawyer Clarion-Ledger Staff Writer Cuban and American musical artists recently spent a week collaborating and writing songs for a recorded performance in Havana, Cuba. When the day of the live event arrived, they used the musical and sound equipment provided by Meridian-based Peavey Electronics. Peavey supplied the public announcement system, instruments and technical staff to operate the equipment. Hartley Peavey, chief executive officer and the company's founder, attended the cross-cultural concert Music Bridges held March 21-28.

"We went down there for a cultural mission, but also a fact-finding mission. That's why I travel all over the world. You can't learn anything about a foreign economy by staring at four walls," Peavey said. He mingled with such famous musicians as Bonnie Rait, Mick Fleetwood and Jimmy Buffet, and the infamous Cuban leader Fidel Castro. "He spoke very polite Spanish.

He plays like he doesn't speak English, but I think he speaks better English than I do," Peavey said. "We had a picture taken." About 50 American and Cuban artists performed at Havana's Karl Marx Theater for the free concert. Todd Smallwood, a producer for Music Bridges, said it was the has been a bit of a chore at times, and not Securities exec named to board of N.Y. bank always pleasant. It is a reminder we will all die some day.

But not doing it would have been quite selfish. Special to the Clarion-Ledger Hartley Peavey (left), chief executive officer and founder of Peavey Electronics, talks with Alan Scott, founder of Music Bridges, during a concert. The Clarion-Ledger "You really owe the ones you love the courtesy of leaving them as much wisdom and knowledge as possible," said Martin Kuritz of San Diego, author of Community Involvement: Park serves on the boards of The Winchendon School, Worcester County, and Bishop's College School, Quebec, Canada. He also serves as The Beneficiary Book, a fill-in-the- Who: Derek Bryson Park. New Appointment Federal Home Loan Bank of New York board member.

Now a senior vice president at blanks book and software built around the same ideas as our self-made guide. Kuritz has worked in estate planning next one is scheduled to take place in Australia in 2000. "Hartley came to the table with just an immense amount of sup-See PEAVEY, 5C first time Peavey was contacted to participate in the event. It was the sixth Music Bridges concert, which is designed to promote musical exchanges of ideas. The for 30 of his 57 years and has seen both the "financial mess" and "emotional mess" created by those who die without DroDer thought to those they leave an arbitrator with the National Association of Securities Dealers, the New York Stock Exchange and the Chicago Board of Trade.

behind. Kuritz is also quite conscious of Cohane Rafferty Securities with responsibilities for marketing mortgage banks and mortgage securities to institutions, Park also serves on the board of his own mortality he has suffered three heart attacks, the most recent one Last-minute taxpayers, pay attention in September, and saw his father die at aee 48 of heart disease. Park "Not enough emphasis is placed on what is going to happen when we are not Rushing to teat the deadline here," Kuritz said. Our suggestion: Don't just leave something in writing but talk about these issues now, including your I received The Internal Revenue Service says as of April 998. That's 1 more than 69.6 million individual tax returns for wishes for your own funeral.

means 3.3 ahead of the same week a year ago, but i Children, education can earn extra credit when filing By Sandra Block and John Waggoner USA Today With April 15 less than a week away, nearly 45 percent of taxpayers reportedly of returns still hadirt been tiled. Change from 4398 Through April 2 Anybody can, as we did, make this a self-made project. Kuritz' book will help those who have trouble getting started on their own, leaving room at the end for "closing thoughts," which you can make a 3.3 1.7 Claims received 69.6 million Processed claims 60.4 million personal message to those closest to you. have not information about book and software is tvMy available by calling 800-222-9125. Business Editor Jack Weatherly's coi Electronic filing by computer is way up this year Computer filing By individuals 1.8 minion 1563 By tax professionals million 17.7 Telephone filing 4.8 million and so is the average refund.

1998 $1,369 1999 $1,575 filed yet. Here are some tips and resources: Your children are spe umn will reappear April 18. alla 111 Taxes I changes From 1992 to 1998, he worked with 21 cases with damages totaling about $16 million. He also is a lieutenant colonel in New York's Division of Military and Naval Affairs, reporting to the New York Army National Guard's recruiting and retention director. Personal Statement Park considers John Callon, founder of Callon Petroleum, a corporate mentor.

"In 1982, this little Mississippi company discovered more oil and gas on shore than any other company in America," Park said. Institution: The Federal Home Loan Bank of New York is a Congressionally chartered wholesale bank serving 300 community lenders in New Jersey, New York, Puerto Rico and the U.S. Virgin Islands. Its mission is to advance housing opportunities and local community development by maximizing the capacity of community-based member-lenders to serve their markets. Natchez-based Southwest Security, which is United Mississippi Bank's holding company.

Alfred Delli-Bovi, president, said, "The board and the bank will benefit from expert knowledge of home mortgage finance and his commitment to housing." Wort Kstory: Before joining Cohane Rafferty, one of the nation's largest mortgage-backed securities portfolio managers in 1988, Park worked with the nation's largest advertising agency, Interpublic Group of starting in 1985. From 1982 to 1985, Park worked with Natchez-based Cal-lon Petroleum's securities arm, marketing tax-sheltered oil and gas limited partnership interests. Education: Park earned a bachelor's degree with the University of Western Ontario and a master of public administration and a doctorate at New York University. Jerry Mosemak. USA TODAY PAST WEEK'S RESULTS MO? 0.1 73.84 I 9.963.49 11000 10000 cial, especially this year.

For the first time, qualified taxpayers can receive a credit of up to $400 for each of their children. The child tax credit is just one of numerous tax law changes that could cut your 1998 tax bill: Child credit: Unlike a deduction, which reduces your taxable income, a tax credit comes right off the tax you owe. The child credit applies to children under age 17 as of Dec. 31, 1998. To claim the entire amount, you must have Source: Internal Revenue Service modified adjusted gross income less than $75,000 if you're single; $110,000 if you're married.

The credit phases out above those limits. How to fife: Form 1040, line 43; Form 1040A, line 28. Credits for college tuition and fees: If you're paying for a child's college tuition, you may qualify for a Hope tax credit of up to $1,500. It's available for the first two years. The Lifetime Learning credit is available for any deduction even if you don't itemize.

To qualify, you must earn $55,000 or less if single; $75,000 or less if married. How to file: Form 1040, line 24; Form 1040A, line 16. Education Individual retire ment account: Not really an IRA, this lets taxpayers put up to $500 a year, per child, in a tax-free college savings account. The contribution isn't tax deductible, but if used for college, you won't have to See TAXES. 6C level of college.

Eligible taxpayers can claim credit for 20 percent of tuition, up to $1,000 per year. Note: You can't claim both credits for the same student in the same tax year. How to file: Form 8863. Student loan Interest deduction: You can deduct up to 1 ,000 of interest on a qualified student loan. The deduction is available only during the first 60 months of the loan's repayment schedule.

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