Nappanee Advance-News, Volume 127, Number 2, Nappanee, Elkhart County, 8 January 2004 — Page 4

Page A4

Advonce News « Thursday. January 6. 2004

Ask A Professional

A BOND INVESTING boiued nuiricix There is a stir among fixed income investors regarding bonds these days. The reasons for this anxiety are the same: Near 45 year low interest rates and the recent memory of a volatile stock market. During the late 90s and through March of 2000 many people were jumping out of bonds in pursuit of the record growth of stocks. Unfortunately many of those who bailed out on bonds and into stocks for higher returns in the market ended up bitterly disappointed. Now that the market has both gone'down and recently come back, there are new investment decisions regarding bonds to consider. Bonds can be a great way to earn income with relative safety. However, there are few things an investor must consider before diving into the market today. Lets take a very short primer and review the basics before we consider bonds as an investment. Bonds are debt. They simply are certificates promising to pay you back for money invested. Generally, bonds pay interest with a fixed rate of return. Bonds paying a fixed amount periodically based on the coupon are called coupon bonds. Bonds selling at a heavy discount to par that do not pay interest until maturity, and rise in value as the bond approaches maturity are called zerocoupon bonds. The value of zerocoupon bonds is subject to market fluctuation. Because interest on these bonds is not recognized until maturity, their prices tend to be more volatile than bonds, which pay interest reguiariy^ There are four broad sectors in the economy that issue bonds. You need to be aware of all of them, as the risk of each bond varies with the standing of the issuer. U.S. government securities are the' highest quality bonds available in the market and are known as Treasuries. The U.S. government backs them as to the timely payment of principal and interest. The government offers its shortest term debt obligations in the form of Treasury bills. Ranging from three months to one year, they are sold at a discount and pay full face value at maturity. Both Treasury notes and Treasury bonds are the long-term debt obligations of the government. They are exempt from state and local taxes. Certain federal agencies, particularly those concerned with housing, such as the Government National Mortgage Association (Ginnie Mae), issue bonds. They are guaranteed by the issuing government agency so that investors will receive timely payment of principal and interest payments even if homeowners do not make their mortgage payments on time. Ginnie Maes, Fannie Maes, and Freddie Macs are the most commonly known and frequently traded of agency-issued debt securities. Their

Continuous Publication Since 1879 Advance News Serving the Wa-Nee Community HOW TO REACH US: If you do not receive your daily paper by 5 p.m. Monday through Friday, please rail the circulation department at 930-3101 up to 6 p.m. and we will deliver your newspaper that day. On Saturday call between the hours of 8 and 10 am for resolution to a service problem. General Manager Jerry L. Bingle Advance News Editor. Kylie Carter Sports Editor Ron Haramia Production/IT Manager Greg Hildebrand Marketing & Circulation Manager Cindy Stockton www.thepiiotnews.com USPS 370900,158 W. Market Si. P.O. Box 230, Nappanee, IN 40500 (574)773-5127 Published Thursday. Periodical postage paid Nappanee, IN 40550 Mail Rates: Indiana. $20.00 for 52 issues; out-of-state $25.00 for 52 issues. Display Ad Deadlines: Pilot News - 2 Days Prior at 5:00 pm Bremen Enquirer, Nappanee Advance News, Culver Citizen, Bourbon News-Mirror, The Leader Thursday at sflo pm The Review - Tuesday at swo p.m. TV Week - Friday (Week Prior) at 5:00 p.m. Classified Ad Deadlines: Pilot News - Day Prior at 11:30 am. Bremen Enquirer, Nappanee Advance News, Culver Citizen, Bourbon NcwsMimir. The leader - Monday at 11:30 a.m. The Review - Tuesday at 4:00 p.m. l-egal Deadlines: Pika News - Three: Days Prior at 4:00 pm Bremen Enquirer, Nappanee Advance News, Culver Citizen, Bourbon News-Mirror, The l>caoer Wednesday (A Week Prior) at 4:00 p.m. All ads larger than 1/4 page need to be emailed, sent in a word document or dropped off on a floppy disk. To Place A Classified Ad call 18004K485H or 57T4W5KJ1. To Onier Your Subscription tall I mmwffl or 574-93fF5101. The Pikct News is a member of the Hoosier State Press Association and The Associated Press.

yields are often slightly higher than Treasuries, and they provide a good level of liquidity. Municipal bonds are issued by local authorities to finance capital projects and other undertakings. They tend to be exempt from federal, state, and local taxes for purchasers residing in their states and cities of origin. They are particularly popular with investors

looking to increase their taxexempt incomes. They may be subject to federal, state, or local alternative minimum tax. If you sell a municipal bond at a profit, there are capital gains to consider.

Greg Taylor

There are two basic types of municipal bonds. General obligation bonds have the least risk, because the issuing authority has the power to levy taxes to support the debt. Revenue bonds rely on the revenues generated by the project to meet the debt obligations. Investors who need the comfort of maximum safety may wish to purchase insured municipal bonds, which are guaranteed by an insurance company. This increased safety often comes at the expense of a lower coupon rate. Finally, there are corporate bonds that generally have a higher level of risk than government securities with similar maturities. The risk is compensated by offering higher yields. Prior to investing in a bond, it is very import you understand the level of risk for any consult a reputable bond rating service, such as Moodys or Standard & Poors, which will help you determine the level of risk of default in the bond issue you are considering. The value of bonds will fluctuate with the changes in interest rates, and if sold prior to maturity may be worth more or less than their original cost. Investing in bonds can offer a more predictable and, often times, less volatile way to manage your investment portfolio. Bonds are not necessarily for everyone and often times require additional research and knowledge. If this sounds good, but creates some intimidation, you may want a contact a competent financial advisor for some assistance. Greg Taylor is atyflfstered representative with CFA Compass Financial Advisors, ty.C a Federally Registered Investment AdvisorLocated at 3140 Windsor Court in Elkhart. [email protected] <mailto:[email protected]> (866) 295-1509. Representatives of Compass Financial Advisors, LLC offer securities through Questar Capital Corporation, member of the National Association of Securities Dealers (NASD) and SIPC. Compass Financial Advisors, LLC is independent of Questar Capital Corporation.

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Every Child Should Have...

Rhonda came to my door in tears. “I'm cold,” she informed me as she snuggled deeper into her short, imitation leather (plastic) coat. “My mother doesn't have the money to get me a warm coat for winter." I thought to myself, Every child should have a warm winter coat. So I took her in my car to the department store. “Thank you so much!" she exclaimed as she buried her head in the fur around her quilted ski jacket. “I'm much warmer now.” I wondered why her family members didn't pitch in and buy her a coat in the first place. That is, until I saw her SBO quilted ski jacket wadded up and thrown into a heap in her yard a few days later. “Rhonda, how come your coat's laying in the yard?" 1 asked her. “Oh, that old thing,” she said with a laugh. "I like the leather look.” She was wearing the same thin, plastic monstrosity she had on that cold day she showed up on my doorstep. “Some children don't deserve a nice, warm, winter coat," I said to myself as I walked away. The little, freckled-faced boy came to my house with his 7-year-old sister. “We don't have a place to stay," he explained. “My grandmother threw us out and my mother's gone.” “Come in for a while," I told him. After all, I thought to myself, Every child should have a warm house and good companionship. A couple hours later, when my house was trashed and my refrigerator bare, I asked the broth-

Get Real With Your Eating!

Happy New Year! With the New Year many of you are beginning to think about doing something about the weight you gained during the holidays and/or the excess eating you did. Health experts agree that the key to healthy eating is the time tested advice of balance, variety and moderation. In short, that means eating a variety of foods without getting too many calories or too much of any one nutrient. The first rule to practice is eating a variety of nutrient rich foods. You need more than 40 different nutrients for good health and no single food supplies them all. Your daily food selection should include bread and other whole grain products, fruits, vegetables, dairy products, and meat, poultry, fish and other protein foods. How much you should eat depends on your calorie needs. The second rule is to enjoy plenty of whole grains, fruits and vegetables. Surveys show most of you dont eat enough of these foods. Do you eat several servings of whole grains and at least five

Years Ago 120 YEARS AGO; JAN 3,1884 •Goshen is making an effort to get electric lights in that city. •Music Hall Assn, reports that the social dance last Friday night was the most enjoyable event of the Holidays. •In Elkhart County steps are being taken to have a good gravel road constructed from Nappanee to Goshen. 100 YEARS AGO; JAN. 6,1904 •The safe in theß.B. Bollinger store at Foraker was blown at 12:30 p.m. Friday night, but robbers failed to open the box. The safe in the rear of the grocery had the door forced with axes from a nearby woodpile. Crooks poured nitroglycerine in the lock and the explosion was terrific. No money was in that safe. 75 YEARS AGO; JAN. 3,1929 •Another progressive step in the businesslife of Napanee came when the Metzler Shoe Store moved to its new location on S. Main. Metzler's was founded in Oct. 1924 with Ralph Metzler and Ora Smucker of Middlebury as owners and in 4 years has doubled the business of the 1 st year. Ralph Metzler worked for Hartman Bros 17 years as a clerk in the grocery dept, and later their shoe dept.

The Years Ago segments have been researched and posted by Margaret England-Neff and by Kylie Carter. They appear just as they did in archived issues, typos and all.

Opinion Page Policy

The Opinion page of the Advance News is intended to serve as a public forum to address issues of concern to Nappanee and Wakamsa residents from various viewpoints. Readers are welcome to express their views by submitting letlere or guest commentaries regarding community topics. To be considered fur publication, letters to the editor must he signed and include a

Opinion

er and sister, “Let's clean up our mess, Ok?” “We don't have time," the little girl asserted as the pair ran out the door. “Grandma never stays angry for long. She’s fixing pork chops for supper.” As the ungrateful pair stuck their tongues out at me as a parting gesture, I thought to myself, It

might do some children good to spend a few days and nights outside, in the cruel world. Perhaps they would learn to appreciate human kindness. All the other children were sledding on the hillside. But Myron didn't have a sled. “I don't mind

being left out,” he shared with a sigh. “I've never been able to play like the rest of the kids. I just don't have the equipment.” “Every child should have a sled,” I remarked as I loaded him in the car. No cheap models for Myron. This year he was going to have the $29.95 deluxe two-seater with a wooden steering mechanism in front. The next Saturday I watched in hopes of seeing Myron sledding. However, he was conspicuously absent. I called him on the phone. “Why aren’t you sledding with the others?” I inquired. “ft's just too cold," he confided. “Now if I had some of those thermo boots I might be able to withstand the elements better.”

servings of fruits and vegetables daily? If you dont enjoy some of these foods at first, give them another try. Look through cookbooks for tasty ways to prepare them. Just watch the sauces you add as they can add lots of calories. Try using herbs, seasonings and lite sauces.

The third rule is to maintain a healthy weight. Find the weight thats right for you. It depends on your age, sex, height, and heredity. Obesity increases your chances for high blood pressure, heart disease, stroke,

diabetes, some types of cancers and other illnesses. But being too thin can increase your risk for osteoporosis, menstrual irregularities and other health problems. If youre constantly losing and regaining weight, a registered dietician can help you develop sensible eating habits for successful weight management. Regular exercise also helps maintain a healthy weight.

Laurie lechlitner

Extension Education Mary Lionhort-Cross Elkhart County

50 YEARS AGO; JAN. 7, 1954 •The U.S. Health service report states that Nappanee is tops in pure milk, one of a select group of cities in the country. Nappanee received a grade A rating, best in our city's history. Consumption of milk in Nappanee has increased from 1.1 pints per person each day to 1.3 pints. 20 YEARS AGO; JAN. 4, 1984 •All five members of the Common Council were sworn in for second terms during ceremonies Sunday afternoon at the Municipal Center. Outgoing City Attorney Joseph Kindig installed Brian Hoffer as his successor. Kim Ingle recieved the oath of office as clerk treasurer to succeed Elnore Senff and Robert Callander was sworn in for a second term as mayor. 10 YEARS AGO; JAN. 5, 1994 •The Union Center Elementary School building is in its final year of use by the Wa-Nee Schools, as is South Elementary School, located in Nappanee. Disposal of the two elementaries will be discussed during a public hearing held Monday, January 9,7:30 p.m., during the regular session of the Board of School Trustees.

phone number in cider to verily the author. The Advance News reserves the right to edit all letters and commentaries for brevity, clarity and grammar. The views expressed on the Opinion page do not necessarily reflect those of the Advance News.

With a sigh I thought to myself, Every child should have a pair of good, warm boots. That day we not only got Myron boots, but a hat, muffler, gloves and a couple pairs of snow pants. It set me back considerably. I watched for him on the slopes the next week and the next. Finally I called him again. “Why

covered that those children without coats, boots, gloves, snow pants and other necessities usually haven't learned the first thing about taking care of such things after they've receive them. But one of the most important things 1 learned is that if a child has been abandoned by parents, siblings, grandparents and all other authority figures, they're usually sprouting horns. 16-year-old Nathan came to my door exhausted. “You didn't walk all the way here, did you?” I asked the teenager who lives five miles away. “Yes,” he answered when he got his breath back. “If I just had a c4r,’J.',K I love kids, but my heart has limits. “Walking is good for the cardiovascular system,” I told him.

If you use the fourth rule it will help you avoid weight gain. It is to eat in moderate portions. If you keep portion sizes reasonable, it is easier to eat the foods you want and stay healthy. Did you know the recommended serving of cooked meat is three ounces which is similar in size to a deck of

cup, so one pint is four servings. The fifth rule is one not everyone believes but is true, eat regular meals. Skipping meals can lead to out of control hunger, often resulting in overeating. When you are hungry, its also tempting to forget about good nutrition. Snacking between meals can help curb your appetite, but dont eat so much your snack becomes an entire meal.

aren't you sledding?” “My mother says I have to stay inside this winter. However, if I had a Gameboy to play with like other children. I decided that every child should not have a Gameboy. I also dis-

playing cards? A medium piece of fruit is one serving and a cup of pasta equals two servings. When it comes to dairy foods, a serving of ice cream is half a