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[Tax i iw". '• Don't Wait Until / 19»S Open An IRA Now! 1 Two things you should know: the sooner you make your IRA deposit the better-because any extra months of compounded interest amounts to a great deal of extra money towards your re­ tirement plus if s even more important to beoj|n your retirement planning at an early age. For example, consider the wage earner who opens an IRA at the age of 35 and makes yearly depo­ sits of $2,000 (see chart) this person cduld re­ tire at 65 with a nest-egg of more than one-half million dollars while safeguarding savings from federal taxes. And also remember these funds are insured-safe by the F.S.L.I.C. and agency of the U.S. Government. IRA ACCUMULATION CHART Aoa Paid In 8% 10% 12% 35 $60,000 $244,692 $361,887 $540,585 40 50,000 157.909 216.364 298.668 45 40,000 96.846 126,005 161.39> 50 30.000 58.649 69.899 83,507 55 20.000 31.291 35.062 39,309 , 60 10.000 12,612 13.431 14.230 Assumptions: $2,000 annual contribution. Constant yield. Balance at age 65. IMPORT ANT -Changes in legislation affecting the 1964 tax year established April 15, 1985 as the FINAL DEADLINE for making your con­ tribution to your IRA for 1984. No extensions are allowed. Also save on taxes I For example, for someone in the 30% tax bracket, a deposit of $2,000 can reflect a savings of over $700 in taxes. Let our savings counselors help you. i'd Home Federal Savings of Elgin a .* a P " :•« 2 • " 4 : 3 8 Gemstones not a/ways a {profitable investment By Monica Perez * Copley News Service Diamonds are a girl's best friend -- unless she's an investor. Then those rocks, and other gemstones, may not seem so hot. Gemstones can be a good invest­ ment, but consumers who don't know the basics of gemstone investing easily can lost money, according to the Federal Trade Commission. Every year, thousands of consumers invest in diamonds, rubies, sapphires, emeralds and other precious and semiprecious stones. The decision to in­ vest in gemstones often is influenced by promises of immediate profits with lit­ tle or no risk. However, gemstones are not a liquid investment. They generally cannot be resold quickly for a profit. One reason: The market for faceted gemstones, the type available to individual pur­ chasers, fluctuates. So, if you need to sell your stones quickly and the market value is down, you could lose money. Also, unlike the markets for stocks and bonds, there is no organized market in which to sell gemstones. Locating a private buyer may be dif­ ficult and can take months. Dealers and jewelers often are reluc­ tant to buy from an individual investor because they already have regular wholesale suppliers, according to the FTC. Publication 910 is an IRS publication that describes 'requested [ mi index of moot of die free publications. Use the handy order form in your tax pack­ age to order Publication 910. . / fcp&e MMffiPl'OWOH 1&4SK-. £ -- \ P1HLK stR\l(t VKNSACt FROM l i l t 1MIKNU RlVtMl St R\ i t \ Some gemstone dealers may promise to buy back your gemstone or to sell it for you at a later date. However, they generally do not guarantee that their efforts will produce a profit. Also, there is a possibility that the company will go out of business, leaving you without your guaranteed buyer. The best way to ensure tht you'll have a buyer is to have a high-quality gemstone. To determine if a particular gemstone would make a good invest­ ment, learn about the grades of gemstones, their market values and their appreciation potential. •Gemstone grades: The difference in the grade of gemstones, including size, color, clarity and cut, can make a dif­ ference between a good and bad invest­ ment. Books about gemstone investing are a good place to learn. •Market value: You should know how much other sellers are charging for stones of a comparable grade. Although it is difficult to determine the normal selling price for a particular gemstone, make every effort to get this information from other sellers before you buy. By talking to other sellers, you may find that better investment op­ portunities are available. •Appreciation potential: You should know how prices have fluctuated for the specific grades of gemstones you are buying. Be wary of sellers who make promises of dramatic apprecia­ tion, such as "diamonds have ap­ preciated 300 percent in the last five years." This may refer to diamonds of different grades than the ones you are considering. This claim also reveals nothing about current price trends -- which may be down instead of up. . In gathering information about gemstones, you probably will be expos­ ed to certificates and appraisals. Gemstone certificates describe some of the characteristics of a particular gemstone. They often are done by laboratories established for certifica­ tion purposes. These certificates reflect the opinion of the laboratory do­ ing the grading, so other laboratories may have a different opinion of the same gemstone. Since some laboratories are more well regarded in the industry than others, find out which laboratories are favored and get a certificate from one of them. Otherwise, a buyer could disregard the certificate. Appraisals, rather than simply describing characteristics, provide a dollar value for gemstones. Be wary of appraisals provided by the seller or provided through the seller's direction. Some appraisals may evaluate a gemstone based on a jeweler's retail price, not what you could get for the gemstone if you had to sell it. Before you buy, get an independent appraisal from someone you trust.