THE SALINA JOURNAL MONEY SUNDAY, APRIL 15, 2001 E3 TREAL ESTATE WATCH K&O / Decision Use mortgage as way to save is months away Return likely will be higher than CDs or money market lunds If you don't expect the stock market to pick up for the rest of the year but still want to invest, consider putting more money into your mortgage. You may think of a mortgage as debt rather than an investment. But since your equity grows as you p?iy down the loan, a mortgage is a form of savings. Financial advisers even offer a way to figure out the rate of return — just look at your interest rate. For example, suppose you're putting money into a mutual fund money market account that is currently paying about 5 percent interest. You would get a higher return if you "invested" in paying down a mortgage with 8 percent interest. If you wanted a further complication, you could take the tax consequences into ^ account — the interest you earn on the money market account is taxed while the interest you pay on the mortgage is usually tax-deductible. Paying down the mortgage on a schedule '•—^ also allows you to plan for the future if you're pretty sure you wUl be staying in the same house for the long- term. Time a mortgage to end when college tuition kicks in or about the time you will retire. PAMELA REEVES Scripps Howard News Service If you have a new 30-year loan of $150,000 with an interest rate of 7 percent, you can pay off the entire loan in 20 years by adding $167.22 a month to your payments. If you're among the many who are in the process of refinancing, you can get a shorter mortgage from the start, with 15 years being the most common. If you ask, many lenders also will offer rates on 20-year mortgages or — if you really want to pay off that loan fast — 10 years. The advantage of getting a shorter mortgage is the interest rate is slightly lower and you don't need any willpower to make the extra payments — they're required. Looking ahead, if you think you might have other pressing needs for that money it's probably better to get a 30-year mortgage and make extra pay ments when you can. •••• It's spring and that means a lot of home-improvement projects are under way Not everyone has the money or talent to do the work, however, so an organization with the strange title of Rebuilding Together With Christmas in April has scheduled 7,800 rebuilding projects across the country Saturday April 28. Most of the volunteers will clean, paint and repair homes for needy people. "Since 1988, we've helped more than 50,000 homeowners live in warmth, safety and independence," said Patricia Riley Johnson, the group's president. If you'd like to help, find out if there's a volunteer effort in your area by calling toll-free 1- 800-4rehab9. FROM PAGE El Sections of the line between Corinth and Osborne were washed out during flooding in 1993. Splitting business with the Kyle would be good for Osborne, the general manager said, but he's not sure if the move would be feasible for the K&O Railroad. Rail cars on the K&O would have to be left on a 'Y' that connects to the Kyle, and Kyle workers would take them to the Midway Co-op elevator. All of that depends on the K&O. Ed McKechnie, a railroad spokesman, said the goal is to improve the business on that line, but it will be be "a couple months" before the Osborne question is answered. "Obviously we'd be pleased there was work for us to do there and a product to be moved," he said. K&O would seek freight in, such as cement, rock and plastics, as well as freight out, grain and possibly other products, he said. "The bottom line is you've got to sit down with customers and say, 'How can we help your business?' " McKechnie said. McKechnie said the company would be interested in forming agreements with the Kyle Railroad. "Our goal is to grow the K&O 10 percent a year," he said. "You do that one customer at a time." • Reporter Tim Unruh can be reached at 823-6464, Ext. 137, or by e-mail at sjtunruh@saljour nal.com RusselFs / A rivalry is born FROM PAGE El "I guarantee to do $1.5 million a year and be happy as punch." Scott Russell described as "heartbreaking" Karen Russell's decision to sell the restaurant. "It was my home," he said. "My whole family was there at one time." Since opening Russell's Neighborhood Grill April 6, Russell said business has been outstanding. "We did $900 on Sunday in less than two hours," he said. "Those are the numbers the family was used to seeing at Russell's. We're here to stay Hopefully, we'll bring back some of the old family recipes." Most of the customers Russell said he's seen in his dining room since the opening have been loyal customers of Russell's Restaurant. Others were customers who patronized his business at the Red Coach. In Berthelson's view, time has diluted some of the flavor of the "family recipes" Russell hopes to capitalize on with his new restaurant. "Those recipes have been diluted over the years. I don't think anyone truly knows them anymore," he said. "If his (Scott Russell's) name was worth so much or Karen's was worth so much, why wasn't the Red Coach having a line standing in front of it? They had the same quote, old-fashioned recipes at the Red Coach with their K.C. Cafe. "The proof's in the pudding. They'll either make it or they won't," Berthelson said. "I know who their cooks are going to be, and I let a lot of those folks go, and I know who their waitresses are, and I let a lot of them go, too." Berthelson said his restaurant has had a few calls since Russell's Neighborhood Grill opened, wondering if the new restaurant was affiliated with the old Russell's. It's not, but even with the confusion, Berthelson said he's not of a mind to go to court to challenge Scott Russell's use of the name. "The name is mine. Russell's Restaurant will be there. We'll be the same as it was in 1972 and hopefully in 2002," he said. Scott Russell vows he's just as determined to stay in business. "I'm not worried about the competition," he said. "What's good for one is good for the other" • Reporter David Clouston can be reached at 823-6464, Ext. 131, or by e-mail at sjdclous email@example.com o It's Time For A Little ONE-on-ONE With today's stock market roller coaster, guidance from a professional who understands the ups and downs of investing is vital. It's time to sit down one-on-one with an experienced consultant that will examine your entire financial ^^^H picture and recommend the best investment strategy for you. BROKERAGE INSURANCE •Mutual Funds *Fixed Annuitites o Dean na Adc, Ct'l' f-itmicial Comulimi Sonja GrifTllll, limumml Ojficrr Katie Bowcll, S,tlts Aiiimnt Mary Jane Mortimcl, Aisinam •Stocks •Online Account Access •Money Markets •Individual Retirement •Small Business Retirement Plans •College Savings Plans •Variable Annuities •Life Insurance •Long-term Care Insurance •Employee Benefits CaU (785) 826-4053 For Vour FREE Financial Consultation. NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE SCOUT BROKERAGE SERVICES, INC. Member NASD, SlI'C Hal R. Peterson P.O. 80x1953 Saline, KB 67402-1953 The Distinguished Service Award is conferred for outstanding sales achievement and consistency of service to policyholders over a determined number of years. Recipients were recognized at the annual meeting of the Federated President's Council. FBDERATED lNSURANCE [f® The FEDERATED Insurance Companies • 121 E. Park Square, Owatonna, MN 55060 Phone: (507) 455-5200 • INTERNET www.federatedinsurance.com ""Salina Journal Connecting communities with information Thank You <^ Salina Journal to the Salina Journal's Newspaper in Education program and Friendly Valley Flowers in Mentor, KS for donations in March 2001. Their support and contributions made it possible for Mrs. McChesney's 4th grade class of Belleville's East Elementary and 298 other classrooms to enjoy the newspaper in their classrooms. "^-^ at fhi ' '^-^^n rare to enjoy the newspaper m UXN^X. Please call Sheila/NIE Coordinator at the SaUna Journal if you care to donate or participate in any of the AWESOME educational programs that NIE is fringing to our children! You can reach her at 823-6464 ex. 309 or 800-827-6363 or firstname.lastname@example.org.
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