Fort Worth Star-Telegram from Fort Worth, Texas • 49

Al FRIDAY EVENING AUGUST 24 1984 FORT WORTH STAR-TELEGRAM -f ix I Classified ild -mow 41111111Mill 4 111 212er i 0114'4- A A IVI At too a FRIDAY EVENING AUGUST 24 1984 FORT WORTH STAR-TELEGRAM IIIIMIII it too Real estate company with the rent deducted because it was sent to the buyer Grannie Mae officials emphasized that the program is designed to help parents remain in their home while converting their equity to cash It is not for those who want a lump sum payment from the sale of their house They warned that the program involves legal tax and economic risks that each participant carefully Please see Mortgage on Page 3 A homeowner age 55 and older sells his house to a child or an outside investor and in return gets a monthly annnuity determined by Tran samerica The house then is leased to the former homeowner at a fair market rent As long as one of the former homeowners is alive he or she will receive the monthly annuity If both die the annuity will go into an estate and eventually will reach its expiration date set by Transamerica Meanwhile the child or outside 'Golden Retirement Annuity Mortgage Association program or Grannie Mae as it is cutely nicknamed Underwritten by Transamerica Occidental Life it is the first program to be offered nationally that allows an older homeowner to sell his house and lease it back while receiving an annuity By MART! BENEDETTI StarTelegram Writer The mortgage on grandmother's house is in its 30th year In a few months it will be paid in full But why keep all the money or equity grandmother and grandfather have pumped into the house out of their reach any longer? Why not let them enjoy it now? That is what the Family Backed 'Mortgage Association in Oakland Calif is trying to do by offering its ')) I 4gi 444 eog! 044 0 14 1 04 '44' 'f4P4a It yilt- i 1 i r101P tor 61 UAW et-- 44n i I 11 1 I 1 s4' tiii stf4- i 1 1 t1 ti1-" 1: I 1 'ii '3'T f--'t-''-' 1 ''if '17 4' -1' i 4itri i 7 i 1 -g- Z----- x' --4'-k L''----'-' ---1 -t 1' I 44414 -H i' A 4 11' :3" i 4iPm'''' 'i ---i--- 4 I 't- -J I 1 -iiii- -)-- i0-i--'-' -T'1 W' -11 4v 0 1-irr! lu i 4 -14 011 qtr 4- 4 0 1 ::::1 1 c- 40 t- 4 I 4 '7777i i i ev'1! t7 ffv VA 7-7111614' 0 1 rt 1 I ti-i' -71: I 4 1 1 1 ti riv i rl0 1: i (i k14445iti41: :44 li4tt iifrin 74 103 i- 1 5 1 7 i :::17: Pt 0 4 '4N- 1 1 xp- ''r)r' i 'e- 1 ''ij'1 'i) 1 4-: Iti A 3 Li: i A )y 1 iitsi 4 fo 1 --i 7 f7-' 'zOsi i 10 Irl 3- 4 1 i' t' 'q 's Re :4: 2: ii -ik i i i 's 01 ''t 7' 1 1: 1 e- -7 4 z4 i 1 4000k :5:: ''i ''1 0'1 I H' 1 i 1''' A04 -t -041 I 0-7 :40 i 0:: I 0- ''''Y7 i 1 '(1 g' A 4 156-Noite" 11 ''''414 ''N f''''''''''''''''' 4'' -k? illtC '''( 1'? al ilksk tAP 4 64f0-P investor gets a conventional mortgage on the house The bulk of the mortgage payment is paid by the parents' annuity-rental payment And the child or investor can take advantage of the investment and tax benefits of owning rental property A specific example: A couple aged 68 with a house valued at $100000 and no present mortgage decides to sell their home to their child Assume that $95000 is available to purchase the annuity The older couple should receive about $12000 a year Associated Press voted the best decorated combine for combines "Auger Hog" was in the event 1 -I I t- 04600 41tel4': "0 tyP" 4 from the annuity based on current annuity rates (which are subject to change) plus saving $2000 in property tax and insurance payments that the new owner now pays Even if the couple pays $6000 a year for rent they would have an additional $8000 a year or $667 a month to spend on whatever they wanted After a sale is closed the buyer makes monthly mortgage payments to the lender and assumes ownership costs The seller receives monthly checks from the insurance 1 By DAN REED Star-Telegram Writer Contract talks between Bell Helicopter Textron and the United Auto Workers were scheduled to resume today with union negotiators expecting a reply on new contract terms they presented Thursday The union representatives waited all day Thursday for that reply before giving up at about 5 pm and recessing the talks The negotiations the first such talks between the union and Bell in 10 weeks so far have consisted of the company offering a new proposal on Tuesday and the union offering its counterproposal on Thursday There has yet to be any actual bargaining over specifics of the proposals The UAW negotiating team which represents the 3200 Bell workers who will return to work Monday for the first time since being suspended by Bell on July 26 presented its counterproposal to the company's negotiators when the meeting began Thursday morning at the Western Hills Inn in Euless The Bell team then retreated from the bargaining table presumably to discuss the union's counteroffer The two sides met again briefly before breaking for lunch As is common in such negotiations the lunch break stretched long into the afternoon as the company's negotiators led by Edmund Szol vice president for employee relations conferred with Bell management four miles down the road at Bell's -a Fll' 01 0 0 II By KATHLEEN STAUDER Star-Telegram Writer The demise of VEU the last of three subscription television services to fail in the Fort Worth-Dallas market will give KDFI-TV Channel 27 a chance to fill its prime time hours with independent programming station officials said Thursday "Now we can be taken seriously by viewers and advertisers" said John McKay the station's president and chief operating officer The change is to take effect Oct I with Channel 27 moving to a full day of old movies sports and syndicated dramas and comedies Channel 27 which changed its call letters last Thursday from Krws has been leasing its prime time hours to VEU Inc a satellite-transmitted subscription service that required a television decoder box for reception But on Sept 30 VEU will drop out of view becoming the last of three subscription services overcome by cable television's entry into Fort Worth-Dallas McKay who until October was general manager of CBS's network affiliate KDFW-TV Channel 4 has been eagerly awaiting a chance to enter the increasingly competitive non-network market 4' 4 ell I Demolition derby Ardy Allen of Iowa Falls Iowa parades his "Auger Hog" before the grandstand at the Iowa State Fair before a demolition derby isks rarely best for older investor main plant in Fort Worth The union negotiators waited for the Bell negotiators' return passing the time in the motel's coffee shop and milling about the motel grounds The Bell negotiating team had not returned by 5 pm and the union negotiators decided to call off their vigil Jerry Tucker assistant regional director of UAW Region 5 and the union's chief negotiator said the two groups will try to meet again Friday morning A union official repeated the union's earlier position that the new contract proposal Bell issued on Tuesday was only slightly different from the proposal union members voted to reject in June The difference in the two management proposals is in the way COLA (cost of living adjustments) would be paid to workers Neither side has said specifically how the company's new COLA proposal differs from the Bell proposal already rejected by the union Under the June 10 offer from the company COLA would no longer be a part of each paycheck and would not be "folded in" to workers' pay in effect giving them a permanent pay raise each quarter Instead COLA would be paid once a year in bonus-like payments that would not become a permanent part of workers' pay rates The only pay raise the company offered in its previous proposal was a 2-percent increase in the maximum for each pay grade during the three years of the contract waves He recently hired Channel 4's Jocelyn White who will do news capsules "gossip pieces" movie reviews weather and other "short vignettes" for Channel 27 McKay said To turn a profit Channel 27 must on average reach 2 to 3 percent of all homes with televisions McKay said He believes that the station can capture that audience in three to four months Others in the industry are not so sure "The local television market is so fragmented that a new station is going to starve unless it has a powerhouse schedule" said a buyer of television time for a major Dallas advertising agency The buyer said the best alternative programming in Fort Worth-Dallas seems to be news and situation comedies "if they're not too old" Channel '27's new 6 to 10 pm weeknight lineup includes Julia The $198 Beauty Show Nanny and the Professor The Ghost and Mrs Muir and a movie from 8 to 10pm For its first seven Saturday nights the station will broadcast football games of the Southland Conference which includes the Please see VEU on Page 2 plied" as opposed to basic research "We have not got that peculiar spark of innovative research I think it's because the primary business here (in Fort Worth-Dallas) is moving money It's not making or creating or dramatically altering anything The hustle here is for the big buck" Geisel said John Rouse dean of the UTA engineering department was out of town Thursday and could not be reached The Dallas-based task force was expanded to include Tarrant Coun Please see Better on Page 3 ici07'': 1 44:1 Bill Doyle skaig46434910114dobikaiii ') qr-' 441iiolo1 li 44ty 's 4N0-y lQ 44'''''': i90tvfekstscs 4--- $'') AmIt i :1 $: tc' 4'' -t4' 's -ii' "a7A! It Vs 'kCI''''T 2 frv4 4 A' 4 31 1 4 A e' -2' '''ektrk' A 0 al: -A07- l' i24 t4 4 0 1-: 1 1 11 :4: l' J-: 't'' i It 6itv645Y4905 Orct 4' Going fast QUESTION Over the years I have been most fortunate in buying good stocks that increased in value I am 81 and feel for my wife's security and our children's inheritance I should sell all my stocks and put the money in tax-free mutual funds Should I make such a change? ANSWER The decision on whether or not to make that big change has to be your decision It's wise for many older people to get out of risk investments such as stocks and into higher income-paying investments However considering your tax bracket you don't seem to be strapped for cash By selling all your stocks you would have to pay capital capital gains tax on your profit and you would give up all possibilities of future stock market profits Nonetheless since you seem ready to hunker down on your assets that move seems logical QUESTION Bow safe are tax-free mutual funds? ANSWER There are two basic types of tax-fee mutual funds those holding long-term municipal bonds and those holding short-term municipal debt obligations Because interest paid on municipal debt securities is not subject to federal income tax both types collect that interest and pass it on to fund shareholders as dividends also free fronm federal income tax Long-term bonds pay higher interest than short-term debt securities So mutual funds holding longterm municipal bonds have higher yields than those holding short-term municipals Mutual funds holding short-term municipals are called "tax-free money market mutual funds" They use accounting methods that keep the value of their shares constant usually at $1 That makes tax-free money market mutual funds virtually risk free The share values of mutual funds holding long-term municipal bonds can rise or fall going up when Interest rates decrease and down when interest rates increase give Associated Press igho-tech Force on High Technology" "One principal issue came out of the report" said Norman Neuriter vice president of Texas Instruments "The Dallas-Fort Worth area is the third largest high-tech center in the country and has over 60 percent of the high tech in the state "But the output of trained electrical engineers form area colleges and universities is minuscule compared to the demand Texas Instruments alone hires just under 4 percent of all graduating electrical engineers" in the United States he said The report also bemoaned the Cathy Wyatt an employee of Piano Mart in Santa Monica Calif sits at one of the 84 ebony grand pianos used in the opening Olympic ceremonies In just a week the firm has sold all but two of them to memorabilia fans 11 1 ing such funds an element of risk QUESTION I know you never recommend specific mutual funds or any other individual securities because you don't want to be accused of "touting" But can you give me some idea about what tax-free mutual funds to consider in order to keep brokerage costs at a miminum? ANSWE That's simple enough Look only at no-load mutual funds those whose shares can be purchased without any commission charge All tax-free money market mutual funds are no-load Some tax-free mutual funds holding long-term municipal bonds are no-load Some aren't and have commission bites of up to 93 percent QUESTION I have two mutual fund accounts for my two children under the gift to minors act May I transfer these investments from the mutual fund where they now are to a money market mutual fund? If so how do I go about doing this? ANSWER Assuming you are custodian of the accounts meaning each is registered in your name "as custodian" for a child you have the authority to change the investments You can move the money to a money mutual fund another mutual fund or any other investment If the fund in which the money now is invested is one of a group a so-sailed "family" of funds all under the same manuement you can probably move the kids' investments to another fund in that group by making a telephone call King Features Syndicate Inc Better education soug lack of a "world-class" engineering school in North Texas Although the University of Texas-Arlington has a well-regarded engineering school it is "not like an MIT (Massachusettes Institute of Technlogy) with a major research facility and major public funds going into it" said Mike Levinson Dallas' economic development director "What they are looking for is research and development" said Paul Geisel a UTA urban studies prof essor "The emphasis here is not necessarily on data processing or high tech Our emphasis is thoroughly ap By KATHLEEN STAUDER Star-Telegram Writer A group named by Dallas Mayor Starke Taylor and including some Tarrant County educators and executives will study plans for improving high technology education in the Fort Worth-Dallas area 1 The task force will be headed by Mark Shepherd Jr chairman of Texas Instruments Shepherd was unavailable for comment Thursday The group called the "Metroplex High-Technology Education Task Force" grew out of a report issued in May by the Dallas "Mayor's Task 1 AlLoaAm4fAI410amiLdofiL.