•
Understand i ng
.
financial-institutions
By end U John n
Financial in titution rve a
intermediarie within our eco
nomic unit who primary pur
po i to man e the financial
a set of other economic units
- busine s con em or individ
ual . They bring vers and
inve tors together by lling
curitie to ver for cash
and lendin that cash to bor
rower. Therefore, they trans
fer money from one part of the
economy to another' part of the
economy.
The large t and mo t com
monly u d intermediaries are
commercial bank. Commercial
bank II chec ing accounts,
vin account and Certificate
of Dep sit C.D.' t savers.
They al tran fer th fund
to bu in and individuals
ith I an typically havin
maturitie of five year or
Ie. To pr tect the ver
prin iple the F deral Govern
reated th Federal De-
vernment
ver de
.00 in the
are
Their
to 11
t k and bond to investors
00 behalf of busine concerns.
Investor buying ode become
part wners of the busine
and tho purch sing bonds
become creditors of the busi
ne . The Federal Government
created the Security Investor
Prote tion Corporation SIPC)
to insure inve or a t held
at brokerage firm. Today,
each account insured by SIPC
is protected up to 500 000.00
in the event the br kerage firm
fail .
There are many other in
stituti ns that are considered
t be financial intermediarie
i.e, credit union insuran
companies trust companies
.etc, . Regardless of their
tru ture all serve the function
of collectin a ets in the f rm
f dep sit in urance premium
etc. They then tran fer fund
to ther busine and individ
ual. Through thi simple pro-
ce our economic sy tern
110 idle money to fl from
to tho
NATIONAL BUSINESS LEAGUE WRAPS UP 86TH ANNUAL CONVENTION
------Financial-
The i higan Citizen ews
is intr. ucing a n column,
"Financial ucce "starting in
this wee's edition.
Stanley H. Greene, president
of S.H. G" ene A ciates, Inc .•
and host of th Philadelphia
based "Pe nal Money Man-
ement" radio how, will write
the column and answer read
ers' questions about money
management. Questions may be
nt to him care of this new.:
paper.
G" ene has conducted a nu. -
ber of his Financial Success
Seminars throughout the c un-
try. The p ceeds of the
seminars are always donated to
a worthy cau e. Green i a
graduate of the University of
Pennsylvania, is former director
of United ort. age Bankers
of America; has a minority
interest in Venture Frontiers
Corporation and pr vides man
a ement services and consulting
through its sub idiary Financial
Management Professi nal Cor
poration.
Greene is also a member
of The Diver ifield Investor
Group. The A ciation for
Financial and conomic Edu-
Screen Actors Guid,
A ern c.'t 'ederation Of Tele
vi IOn and Rodi Artists and
various computer organizations.
He is married and has three
children.
Stanley H. Greene
De r. Greene:
I am 26 y old ith
d nt job. I'm thinking bout
tting a ery nice ap ment.
The rent m be over 5400.00
per month. Th landlord
anted 1 d month
rent and depo it.
That came to 5 r 200 I needed
before I mo ed in. I told
that it t be to buy my own
home in tead of rentin . I thl
good dvice?
G. J.
D ar G. 1.
The an er i ye! 0 nin«
y ur wn home i on of the
be t ways of building fmancial
succe (especially at ch a
young age. Let's take a 100 at
. why:
You can buy many
propertie especially H D and
VA rep ssessions for a little
as 500.00 down payment.
2 When you own as you
make mortgage payments you
are building more and more
equity (ownership). When you
rent, you are really paying the
apartment owner's mortgage and
helping to build his/her wealth.
3 When you own, you will
most likely e the property
appreciate (go up in value.
For example a friend of mine
purchased a home in 1970
for 12000 when he w s .. 1
years old. He i now 37 years
old and the property i n
worth 32 000. in hi
mortgage i paid off he nly
had to pay for 15 years. He
has something he can sell the
hom and make ab u t 32 000
dear. If h ould have tayed
in an partment f r th
years he w uld have n thing
to sh for all th money
I sugge y u cont
lea t 5 realtor and tell
that you are intere ted in
purchasing a home. They will
sh you around and answer
all y ur que tion. It' I e
1) rung free educati n! I
I in the newspaper
po ible buy. The b t time
to start is now! GOOD LUCK.
Stanley H. Greene is a syn
dicated financial columnist and
President of two financial
vices companies. He al 0-
hosts the popular radio sh l
"Personal Mone Management ..
various radio
United States.
whi h airs on
stations in th
Write your financial questi ns to
Stan c/o The M' hi an Citizen,
16032 Wood ard, Hi hland
Park, M148203.
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THE CREDIT AND LOAN GUIDE
Did you know that ther Ire print lenders ho provide
loans to almost Inyone with a steldy job, r arless of the per-
son's-credtt rating? _
A list of those private I nd rs is just a small bit of the
financial s If·help information in the just released guidebook
entitled: Th Credit And Loan Guide.
Also Ivaillble in the Guide:
* The Six Best Ways To Raise on y Quickly
* How To Repair Your Credit Ratin And QUllify For
Major Credit Cards in 90 Days
* Motivating Yourself To Financial Security
But best of all, the Guid is only $11.95. S nd ch or
money order to Potomac Associltes, 1377 UK" Str t, W.
Suite 98, Washington, DC 20005.
11