Business 12 MONTH CERTIFICATE 525 ,0 • Long-Haulers Seal Chance Of Making Money 5.35 , , INTEREST RATE A.P.Y./* ERIC D. BAUM SPECIAL TO THE JEWISH NEWS I f I am able to impart one mes- sage throughout my columns, it would be that creating wealth is really a simple busi- ness. The most successful investors amass substantial fortunes through discipline, habit, and a game plan. Navigating myriad investment choices becomes easy with a little focus. Think of wealth creation as a pyramid whose sides include time, rates of return and con- sistency. Without enough time to let solid investments grow undisturbed, no plan will suc- ceed. Shorten any leg of the tri- angle and the structure collapses. In deciding a strategy, first differentiate between savings and investments. Savings are generally slated for use within three years or less. Storing two to three months of living ex- penses in a liquid account pro- 60 MONTH CERTIFICATE E% OA) 561 • INTEREST RATE A.P.Y./* These are fixed rate certificates of deposit that are insured by Federal Deposit Insurance Corporation (FDIC). A minimum opening deposit and balance of $500.00 is required to obtain the stated Annual Percentage Yield. Formerly filansfror Bank I FIRST SECURITy SAVINgS BANK "First in Service" CALL (810)338-7700 or (810)352-7700 Main Office 2600 Telegraph Rd. Bloomfield Hills, Mi 48302 *Annual percentage yield when compounded quarterly. Rate is accurate as of 1/26/96. Penalty for early withdrawal from certificate accounts may be assessed. ORIENTAL RUGS 0._ • We buy them, sell them, appraise them, clean them repair them and love them! In-Home & Office Carpet Cleaning _ (810) 399-2323 OAK PARK OUTLET • (810) 546-RUGS BIRMINGHAM • (810) 646-RUGS ANN ARBOR • (313) 973-RUGS FREE DELIVERY throughout most of Oakland County T4.41 • Strictly Gourmet • Strictly Kosher Strictly Outstanding Cr) UJ 810-539-3838 800-477-5374 F-- 0 CC LLJ D LLJ F- 41 Local & National Delivery same day service OF FA.RIVIINICIT"Ohl 12 ®AKS 11.1 Al■ I- L. RI-TOME 3413-21707 CLASSIFIED GET RESULTS! Call The Jewish News 354-5959 gressive or conservative an in- vestor is. An asset allocation system be- comes the nerve center of the en- tire operation. Here's how it works, based on a hypothetical model involving an aggressive investor: Even a person without a lot of money who seeks to build wealth Beginning this month, we will devote this space each month to helping you make Eric D. Baum better decisions about could position 50 percent in your money. Eric D. Baum, stocks; 25 percent in a registered stocks; 10 per- Editor's foreign representative cent in bonds; 10 per- in foreign bonds; for John Note: cent 5 percent in cash; and Hancock nothing in real estate. The Investment Services, will stock or fund holdings, as explore a variety of subjects, well as holdings in other cat- egories, should comprise like stocks and bonds, various investments, as long 401Ks and annuities, and as their sum equals at least financial considerations for half of the total pie. Over the last 15 years, working people. from investments tects short-term cash flow emergen- cies. Investments can be classified in six categories: Cash, bonds, world bonds, stocks, foreign stocks and real estate. While one cannot predict the investments' yield, I can consider the average risks and returns associated with each peer group. Indices such as Standard and Poor's 500 index reflect how an average stock- holder fared during a given time frame dating back to 1926. Over time, the average per- formance of stocks varies from that of bonds, real estate or in- ternational stocks. While a di- versified portfolio should include some of each, the amount in question determines how ag- that allocation earned 14.35 percent as an average, with a standard deviation, or risk fac- tor, of 12.73 percent. A single in- vestment of $10,000 with no subsequent deposits swelled to $74,691, and a $100 per month . investment with nothing down amounted to over $54,000 in this scenario. This asset allocation scheme will not deliver an identical re- sult over the next 15 years, but it will provide a general indica- tion of the risks and rewards as- sociated with certain combinations of assets. The art is in determining which kind of allocation fits a person's invest- ment goals. The strategy is at issue, not the dollar amount. Asset alloca- tion works with $1,000 or $1 mil- lion. .