March 6-12,1988, Michigan Citizen
B�ilding wealth Wi�h a 1197611 :l�mber' I' --J-I'
By J me ath n out from the television conuncl - \ When the phone bill is paid
. One .of the most popular get- cials, the owners of 976 lines: ( the elephone company then
nch-qul�k c�aze� no;v swee'pm� some places they are 900 lin) sends you a check for all calls
the nation IS the 976-Lme. earn money each time someo hich have been made to your
Working with a major phone calls the line to listen to a mes- line. . .
p�pany, people an.d com- . sage or to engage in conversa- The 976 craze actually got
p�rues ownm� t�e e hnes are tion with others who have called kicked off by people pushing
said to be raking 10 from $1,000 the line. There is usually a per "sex over the phone." Men and
to $5,000 a week?r more. minute fee which is charged to teenages (mostly) calling these
As you have probably figured the callers phone bill. lines were charged a per minute
fee to listen to some sexy sound- .
ing lady engage in intimate
. exual discussions over the
hone. Some of the fees ranged
as high as $6.00 a minute.
People calling these "sex over
the phone" 976-lines could easi­
ly spend 5 to 10 minutes listening
or talking before they realized
how large a bill they would face.
But when you had hundreds and
. perhap. thousands, of people -
calling these lines just a few •
minutes each month the profit
potential was simply tremen- .
dous. '
When other companies and
I .
Want to get into business?
Thinking of tarring your own
bu incss? A seminar scheduled .
for the Muse gon Heights
Library Branch. 2808 Sanford
St., will help determine if. the
time is right for you.
Two Saturday sessions are
scheduled, on March U and 19
from 9:30 a.m. until 1:30 p.m.
Sponsored by the Community
Services Office of Muskegon
.ommunity ollege, the ses­
sions will be presented by
Harold Gelderlo , MCC Busi­
ne Instructor.
Gelderloos will examine is-
ues that the entrepreneur will
face on a daily basis. Your bu i­
ness ide will be evaluated in
terms of the potential market;
how to secure investors; legal
Jespon ibilities; and how to sur-
vive a start-up.
Call 777-0250 and ask t< I
regi ter f( r CE section 3133
( 25) if an in-county resident .
and CE section 3134 ( 35) if an
out-of-county resident. Invoic­
ing will be by mail.
Bi-weekly mortgage cuts housing cost
Biweekly mortgage payments
and five other accelerated pay-
I ment plans are now available to
the Detroit metro area as well
all other areas in Michigan.
Investment Services of Dear­
born and Troy, which are now
open for business in this area,
arc offering what is being called
the Accelerated Mortgage
Reduction Program. This new
.. erm in the mortgage business
can now he called an AMR.
An AMR can help reduce the
total payments to be paid over
the life of the mortgage, reduce
l interest to be paid, and in the
case of older mortgages, it can
shorten the life of the tail end of
the mortgage so that the owner
can now put that block of money
to use in other areas of his life. It
may be college money for the
children, a vacation home, or
more expensive vacations or
travel, investments for retire­
ment or the purchase of other
real estate.'
Fran Mackey, Director of the
company explained that Invest­
ment Services uses a com­
puterized system to make
biweekly transfers from the
client's checking account into
his new trust account at the
bank.
From the trust fund the
client's regular mortgage pay­
ments are made. Since 26
biweekly payments are
equivalent to 13 ·instead of 12
monthly payments the client
finds that he has made an extra
monthly paymnent for for the
year. This method of payment
helps the client amortize his
mortgage loan faster, mea
large saving in the interest cut
down the principle amount, and
shorten the life of the loan by 8
to 10 years.
For example, with a con­
venitonal 30 year mortgage of
'\1
I
J. LYNCH I
&. ASSOCIATESI
I nsurance Planners and Business Consultant
We provide prompt professional service
; ,
* Marketing * Endowment Funding
* Sales Assistance * Financial Plans
* Retirement Planning * Employee Benefits
Call NOW!! - 983-8777
. Suite 2205 C dillac Tower Building
Detroit, Michigan 48,226
JUANITA L YNeH. Pre ident
$100,000 at a fixed rate of 10.5%
a homeowner (or business
owner or property owner or
large t, uck owner) would make
\monthly payments of$914.74 for
total payments of $229,304.64
over the life of the mortgage.
Using the AMR plan the
mortgage holder would make
biweekly payments of $457.37
�half the monthly payment} and
payoff the mortgage in 21 years
with a total payment of
143,460.75. The mortgage
holder would save $85,843.85.
Investment Services charges
for handling the details of the
AMR arrangement are: a'l%
advance fee (payable by credit
card, check, or installment); a $3
monthly processing fee; and a
$50 fee for the analysis and
eligibility processing. For the
above I example the 1% advance
fee would be $858.44, (or a
savings of $85,843.85.
The analysis is � complete
rundown of the other five
methods of workng out an
AMR. There are other payment
variables that can be used to
amortize amortgage loan.
These methods would be
printed out for the benefit of the
client in his analysis report S() he
could make a more knowledge­
able decision about his loan pay­
ments.
Perhaps he may find that he
could raise the monthly payment
or ina-ease certain variations. he
may also discover after analyz­
ing his monthly and yearly in­
come that for the present the
biweekly payments are the best
for him. It's good to know there
are new decisions that can be
·1ma�.
II
profit- unger people realized
what was happening they began
to, jump into the game. The
result is that the "sex over the
phone" people were being
pushed out by people offering
IItaking
Chargell
Tax-shelter
Insurance
Policies
Recently, two new competi- I
tive kinds of policies stressing
tax-advantaged ineome r gains
over protection again l death
have escaped th eats to tax their
Tax-free buildup of savings.
Depending on the particular
plan that you elect to et up, you
.. can earn fixed income and take
no risk, or you can go for more
appreciation on your funds with
riskier inve tments".
Features of both kinds of
policies arc similar: t x-free
availability of funds, tax­
deferred gains, in add�i n to an
e late building feature with life
in urancc in the event of de th.
. Commonly called � ingle­
premium is available to invest a
lump-sum into a single life in­
surancc. Most plan require
minimum dcpo it of 5,000 with
deposit r' ngcs up to a $500,000
miximum.
In return you get "life-time"
insurance, and earn competitive
rates, lately averaging 9% or
10% on your deposit. niversal
life, (Variable), with n .xiblc
premiums i similarly popular
for the inve tmcnt con cious
perrson. Due to a myriad of in­
vestment 'protfolio , the poten­
tial for higher returns are in­
crea cd. These choices h vc in­
cluded money market, ond
. and - yes, investment in stock
funds.
While life insurance i eer
tainly an attraction today, for a
tax-shelter, unless you h ve a
large single premium thi sh uld
not replace acting or an a scs ed
• need for larger urn of life in­
surancc, which can be m t by
purchasing competitive term
(pure) insurance programs.
L. Discussions with quaJified
professionals should point out
multiple uses for both plans;
provide illustrations on utiliza­
tion of your plan through
withdrawl , and make note of
any surrender charges while
showing the "rated" (A or At)
companies.
For further information,
, write or call: J. Lynch & As­
sociates, 2205 CadilJac Tower,
Detroit, Michigan 482,26, (313)
963-8m.
Reprinted by courtesy of Merit
'Publicatio , Ltd.
11
976-linc for hore cop , finan­
cial informati n . port updates,
employment n . and the now
cry popular hat" line in
whicH people j t call up to talk 1\
to oth r people.
The chat-line are now the
craze and tend to be aimed at
young adults and teenager .
But that'. enou rh ba k­
ground. I think you et the
general idea .
The que. tion i how 'an a
Blac we lth builder get inn the
97 bu ine s and rna e me ey
simply by allowing p pI to I
up and listen to a me age or j t
talk to other peopel?
First of all, securing such a
line from your local telephone
company is relatively easy but it
is not cheap.
Our re earch sho that your
inital co 1 could run as high as
4,000. But that is not an out­
landish' figure for four or five
p opl with ood idea. Thus ,
step ne i. to ntact your local
ph ne mpany and a k for the
office that handle 976-rnes
which are technically referred to
a the Audiotex service."
The phone company will
gladly nd you free information
on the service.
Secondly and perhap m t
importantly, y u have got to
have a good m rketing idea.
What type of information can
you or your group ffer in a _
recorded me age that people
would be willing to pay $2 to $5
a minute to listen to?
As I indicated earlier horo­
� cope, ports update, financia
informati n and chat line are
very popular and profitable. The
ex-talk line are still big but a
h t of tate legislatures are con­
sidering legi lation to crack
down n them.
But do not let your elf be
limited by what is n w uccess- '
Iul. You might be amazed at
what people-will pay to li ten to.
The topics can range fr m joke
line to. piritual mes ag line to
how to cnh: nee your ex-life
line .. The chat line. are p pular
beeau. e there are a lot f people
in America who sirnpl want
. ornconc to talk to.
Third, you or your group
must be prepared to publicize
the existence of your 976-line.
Remember, no one will call up if
they don't know your line exi 1 .
Thus, a budget for advcrti sing is
needed. Adverti ing may initial­
ly he limited to flyer: and ads in
weekly newspaper b 1 you mu. 1
advcrti and do it 0 a regular
asis.
The beauty of a 976-line i
that once you record your daily
message, there is really no hing ·
else to do but sit back and allow.
the calls and profits to flow in.
Plus, you can be making money
24 ho rs a day.