Guide Compares Insurance Plans
Washington Insurance Commissioner Deborah Senn’s office has published a new, two-part guide to purchasing automobile insurance.
“In the Driver’s Seat” can be ordered by calling 1-800-562-6900, or printed off the Internet at http:/ /www.wa.gov/ins.
The first part explains how to determine your insurance needs, how to compare policies and costs, and explains insurance terminology.
The second part compares the rates dozens of insurance companies quote for 10 sample consumers, ranging from a single, teenage male to a senior couple. The quotes are broken down by market, including Spokane, Tonasket and Yakima.
Senn said every insurer in the state was invited to participate in the survey.
“We suggest that shoppers find the example that best fits their situation and use the price comparisons that are listed to get an idea of what they will need to pay for that coverage,” she said.
“Most people do not realize how much they can save by shopping around.”
Move cautiously when buying Net stocks
“It’s tough to argue with the success of buying an Internet stock that gained 966 percent in 1998,” Financial Perspectives says. “It’s also tough to argue with executing stock trades from the comfort of your own home computer for less than $10.”
But the publication also suggests that people shouldn’t just jump onto the online bandwagon.
“For online trading, understand the considerable risks; don’t risk `serious money’; don’t borrow money for online trading; never buy stocks you don’t know much about; keep taxes in mind; disregard rumors; use buy and sell `limit’ orders,” it warns.
Hints for astute fund investing
If you’re considering buying a mutual fund, here’s a summary of “Do’s” and “Don’ts” from Better Investing magazine:
DO: Invest mainly in stock funds, be skeptical of ratings, use index funds, consider closed-end funds, invest internationally, use automatic investment plans, read the prospectus and annual report, look under the hood.
DON’T: Follow the crowd, pay attention to the fund’s name, try market timing, buy or sell a fund based only on recent performance, buy a fund with high turnover, ignore expenses, own too many funds.
“Diversify, because each category performs differently in different situations. Some are up one year, down another. Diversification smooths out the ride.”
Early start to IRA pays handsomely
The deadline for making 1998 IRA contributions is April 15. If you contribute regularly, you can build a substantial retirement nest egg. Example:
“If you’re 25 years old and contribute the maximum $2,000 to your IRA every year until age 65, assuming an 8 percent return,” says a local brokerage firm newsletter, “you would have $518,113 when you reach 65.
“But if you don’t start contributing until 20 years before you retire, you would have only $91,524.”
Brokerage suggests 15 stocks
As independent-minded investors grow skeptical of mutual funds that can’t beat the averages, they’re building their own portfolios. Salomon Smith Barney offers this suggestion - 15 diverse stocks with “moderate to above-average risk.”
It’s a good group: BankAmerica Corp. (BAC); Cisco Systems Inc. (CSCO), Internet routers; CNF Transportation Inc. (CNF), trucking and air freight; Compaq Computer Corp. (CPQ); LM Ericsson AB (ERICY), telecom products; Fluor Corp. (FLR), engineering; and Intel Corp. (INTC), microchips.
Also, Masco Corp. (MAS), building products; McDonald’s Corp. (MCD), fast food; Pfizer Inc. (PFE), drugs; Philip Morris Cos. (MO), tobacco and food; Promus Hotel Corp. (PRH); Raytheon Co. (RTN/A), defense electronics; Schlumberger Ltd. (SLB), oil service; and Temple-Inland Inc. (TIN), timber products.