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October 22, 2004     Heritage Florida Jewish News
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October 22, 2004

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~IEWS, OCTOBER 22, 2004 PAGE 7B By North American Precis Syndicate, Inc. (NAPSA)- Diversification, out, means different to different investors. many, it speaks to creat- ',al ctors, such as tech- ~logy companies, utilities or COnSUmer goods. For others, !t means combining different kinds of stocks, such as large- Cap, small-cap or growth. HOwever, for savvy inves- tors, those that are prepared for any economic environ- ment, true diversification means creating a portfolio that holds investments in several different, or non-cor- related, markets, such as the stock market, commodities market, precious metals market, bond market and the real estate market. For example, one particular mutual fund that follows this investment strategy holds 20 percent of its assets in gold bullion and coins, 5 percent in silver bullion, 10 percent in Swiss franc assets, 15 percent in the stocks of U.S. and foreign real estate and tmtural-resource companies, 15 percent in U.S. aggressive growth stocks, and 35 percent in cash and U.S. Treasury secu- rities. These target percentag- es are fixed, thus creatingwhat is described as a "permanent portfolio." According to Invest- ment News, "The Permanent Portfolio FamilyofFunds, with $230 million in assets, stresses an investment approach that minimizes risk." The fund--Permanent Portfolio Fund (PRPFX)--is managed by Michael-J. Cug- gino, president and CEO of Pacific Heights Asset Man- agement LLC, which man- ages the Permanent Portfolio Family of Funds, a family of no-load mutual funds based in San Francisco, California. Cuggino maintains that this unusual but disciplined di- versification strategy aims to protect the fund, even invola- tile markets. "This fund," he says, "fi rst and foremost seeks to preserve our investors' capi- tal in down markets while also providing for appreciation in healthier markets." Each asset class in the fund has its own special merits: Gold, for example, has tra- ditionally been considered an excellent hedge against infla- tion and a safe haven in times of economic and geopoliti~:al instability; Because the Swiss tend to protect their currency rather than inflate it, Swiss francs have held their value over a long period of time, thereby providing a great hedge against the potential for a weakening U.S. dollar; Real estate in the form of "REITs" (Real Estate In- vestment Trusts) offers the potential for total return (capital appreciation and dividends) during periods of increasing inflation; Investments in silver and in the stocks of natural resource and commodity companies provide protection against inflation and exposure to improving economic con- ditions; The growth stocks held by the fund are chosen from U.S. industry sectors that are expected to grow aggressively over the long term; and U.S. Treasury securities provide safety and liquidity of principal, as well as an income stream for investors. As with any mutual fund, this one was designed to meet a particular investment objec- tive. In a recent interview, Cuggino said that the job of the fund was to preserve capital and grow with low risk, allowing investors to use the fund for that portion of their wealth that they want to preserve. By John Addison North American Presis Syndicate, Inc. t.(NAPSA)-lnvesting the trne and effort to teach young People about money can pay big dividends in more ways than one. Age 12: Responsibility Rules. Extend their weekly allow- ance to twice a month. Have them begin earning money outside the home (baby-sitting, mowing lawns, etc.). Open a checking account for them. Age 13-15: Take the Teaching young people how Plunge. raOney works can also present Compile a list with your anOpportunitytoteachyoung child of what you expect his or People lessons about responsl- her allowance to cover (friends' bility, planning for the future birthday gifts, entertainment, and other life lessons, etc.) and use that total when One thing to consider is determiningallowance.Intro- that different topics are best ducethemtocreditwithadebit addressed at different ages. or prepaid card. Here aresome tips: Age 16-18: Future Fo- Age 3-5: Keep It Concrete cused. Use cash around preschool- e'S--credit cards are too ab- Stract. Let them collect coins In a clear container so they See the money. For starters, showing a child that five Pennies equal a nickel. Age 6: Make Allowances. Now is the perfect time to tart aweekly allowance. Many ids begin with an allowance about $5 a week until age 8. rne parents use a formula based on age. For example, an allowance of $6 a week atage 6. Age 9-10: Budget Time. Introduce them to a basic Usehold expense budget. Pen a savings account for them if you haven't already. Age 11: Take Stock. Help them understand stock market basics--such ~why prices go up or down. ach them about compound Interest. If your child has a part-time job, discuss tax-related issues. Consider opening a Roth IRA for him or her. Age 18+: Damage Control. College freshmen are del- uged with credit card offers. Even if you've introduced them to responsible use of credit, they may still come home maxed out. Emphasize the importance of a budget-and learning from mistakes. The financial profession- als at Primerica have cre- ated a guide that shows you how to take control of your financial life. To get a copy of "How Money Works," write to Primerica, 3120 Breckenridge Blvd Duluth, GA 30099, ATTN: Corporate Relations, call 770-564-6329 or visit JohnAddison is co-CEO and president of Primerica, a sub- sidiary of Citigroup, Inc. Ily News USA (NUE)--There many cisions to make when plan- ing for retirement. Here is i: important question to Yourself as you prepare leave the work force: "Will edicare be enough to cover rnedicalneeds?" Designed 8o hand-in-hand with your egular Medicare coverage, dicare supplement insur- ince helps cover what your edicare insurance does not. cal~ils private insurance, often a~ ed"Medigap, helps fill the P between health care costs d Medicare coverage. Here are some tips from Mutual of Omaha on pur- Chasing Medicare supplement OVerage: *U nderstand Medicare. .r tad out what your Medicare SUrance does and does not ~OVer. * Find the best fit. Deter- mine the supplement plan that best fits your needs based on your health and financial situation. Study all Medigap plans before deciding which one is best for you. * Figure out when to enroll. The best time to buy Medicare supplement insur- ance is duringyour open-en- rollment period, which starts the first month you are at least age 65 and enrolled in Medicare Part B. It ends six months later. * Find the right insurance company. Consider the price asweU as the level of customer service provided before and after the sale. Check the reputation of the company and its financial stability before you buy. For more information, visit on the Internet. Integrity Innovation Solutions ans, mes, CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS 111 N. Orange Avenue Suite 1100 Orlando, FL 32801 407-425-4636 Stanley E. Creel Deborah F. Brannon JackS. Oppenheimer Janet H. Rapp Michael A. Wack in U! im li nt I rl e! II in I I For the location nearest you, Call 1-800-CALL-STB! II I I I II