Extension Service Seeks Money Advisors

The Washington State University Cooperative Extension Service is recruiting volunteers for its Money Manager Advisor program.

Advisors receive 20 hours of free training that enables them to help others set financial goals, develop a budget, and use credit.

In return, they assist community agencies, groups and individuals with financial counseling for a minimum of 40 hours.

Extension Agent Chris Koehler said the classes, which begin April 22 and conclude May 15, are the third the service has given.

She estimated the advisors have helped hundreds of others in groups as large as 60 and as small as five. Others work over extended periods with individuals and families, she said.

“There is always a demand,” Koehler said.

Advisor classes are held Monday and Wednesday, 9 a.m. to noon, at the County Agricultural Center, 222 N. Havana. Call 533-2048 for information and an application.

The deadline is April 12.

Rising rates boost bonds

With interest rates rising, bonds are looking better. Five-year Treasuries last week yielded more than 6 percent, nearly a full percentage point above a month ago. Richard T. McCabe of Merrill Lynch sees rates peaking, which would be a good deal for bondholders.

Tax-free municipal bonds look better too, says George D. Friedlander of Smith Barney. He likes short-term munis as “a higher-yielding alternative to cash,” and for longer-term investors, munis that mature in 10 to 18 years. A new Texas A&M issue, for instance, pays 5.75 percent. If you’re in a 31 percent tax bracket, that’s the equivalent of a taxable yield of 8.3 percent.

Brokers permit fund portability

Prudential Securities Inc. and PaineWebber Group Inc. will allow clients who move their business from one firm to the other to take their mutual fund shares with them.

Prudential, the fifth-largest U.S. brokerage firm, and PaineWebber, the fourth-largest, said the accord would offer their clients more flexibility and the potential for saving on fees.

“We would hope that over the next several months that all of the big full-service firms will participate,” said Mark Sutton, the executive in charge of more than 6,000 brokers at PaineWebber.

Until now, clients moving accounts to a new firm usually had to sell shares of in-house funds. In most cases, investors have to be clients of a brokerage firm to own those funds. Exit fees typically are as much as $100, according to Michael Lipper, president of Lipper Analytical Services Inc.

Brokerage firms set up such barriers to investors who want to leave because they collect fees for managing other peoples’ money.

The new policy is scheduled to go into effect April 1.

, DataTimes