The international photographer (Feb-Dec 1929)

Thirty-six The INTERNATIONAL PHOTOGRAPHER November, 1929 What of Tour Pay Qheck f ■BY While investigating various ways of investing (which costs nothing, but a little study and a few stamps) you will notice that stocks are sometimes sold in units of preferred and common stocks. Sometimes the preferred is convertible into common stock or it may have a date set upon which it may be called for redemption. Likewise the proportion of common to preferred should be noted. The stock may be top-heavy with preferred. If you are not familiar with the stock market, its manipulations and the various issues, it is far better to investigate before you invest. More so if have only a small margin of surplus earnings. I will take up individually public utility and issues, investing companies, building and loan associations, real estate, mortgages and banks as a field for your investments. Well selected bonds are considered the safest medium of investment, but do not return a large yield, averaging around five (5) per cent so in this article I will eliminate them for the small investor. By investments I mean safe ways of making your surplus earnings work for you so that in the future years you will be independent of the weekly pay check if necessary. First you should understand the meaning behind the various stock and bond names called common and preferred. Common stock is not common in the general understanding of the word; it is by far the choice stock in any sound, safe and above all, rapidly expanding business in this country. Income on preferred stocks is usually limited to a specified rate, and therefore has less promise for the long pull than good common stocks. An Investment Trust is an organization formed by a group of responsible business men who invest the Investment Trust's funds in widely diversified securities giving the small investor the diversification that only the large buyer can afford. Due to the type of management and certain stringent rules set forth by the State Corporation Department, Investment Trusts and Trading Companies are one of the safest and most remunerative types of investments for the wage earner. They deal mostly in the leading common stock and bond issues of our country including railroads, banks, insurance companies, public utilities and industrials. The company's holdings are so extensive that there isn't a person who doesn't buy or use the product of the companies involved. I have looked over a few of the leading issues and find that some have a cash return close to 7 per cent and the average increase in stock value would be conservatively put at 15 per cent making a total return of 20 per cent or over on your money which can't be beaten unless you gamble or trade in a few issues on the stock market, play hunches or rent EDWARD E. O'TOOLE, Loral 659 speed movement cameras to producers. I cannot see any possible way of losing your investment through this type except in a general panic, which seems very remote. Building and loan associations are in the same safe class inasmuch as they loan on improved real estate at less than their actual values. It is much easier to get your money out of building and loan associations, consequently the lower yield. They pay 6 per cent as a rule. If you can buy membership shares they will pay 8 per cent. Should you be interested in this type of investment it might be wise to ask, when writing for information, if you can buy in — meaning acquire their common stock or membership shares. Not that I don't believe that they are good investments, but the watchword here should be buy low, sell high and use your own judgment. Don't buy "on the spot," as real estate salesmen say, or without due consideration of values. Also, it is not wise to put your eggs all in one basket, meaning money in one investment, because if that blows up you are sunk, also disillusioned, probably a confirmed spendthrift as long as the weekly check comes in. Business property shows by far the greatest increase in values in real estate. Pick out a street that you figure will be a main artery or much used street then pick out what you think will be the business spot or corner and buy. If you can't handle a corner get the lot next to it which is a key lot especially if the corner lot is a small one. Be sure your title is clear, taxes low and everything in. If not, charge paving, storm drains, sewers, etc., to the purchase price. Buy always ahead of developments in any investment that promises expansion. Mortgages are also good, paying around 8 per cent, but the individual has a hard time safely investing in them unless he spends a great deal of leisure on them or buys through an agent. We should all be fairly familiar with mortgages inasmuch as all of us have helped in our work to lift many mythical mortgages off the family homestead in one shape or another, the popular form being the rich-man-poor-girl plot. Banks we are all acquainted with. They are necessary institutions which give us a supposed 4 per cent (I got $2.80 interest once) and keep our money, if any, from supposed burglars. The time element and small return eliminate bank deposits from ray list of investments. What you are probably saying is: "What has this got to do with me?" Just this. You are probably earning more now than ever before and, if not, your income is at least steadier or you make more in a given length of time than before — before what — well, before our Local was organized. Think a moment and see if you can't save at least an average of $10.00 a week. $10.00 a week is $520.00 a year— say $500. Figure your returns on even this small investment over a long period of time, compound the expansion, stock splits (if any) and interest at say 8, 10 or even as high as 30 per cent yearly and you will pass an interesting half hour. No man's earning power lasts forever. A family man should be doubly concerned over the ability of his money to work for him and his. Information can be gotten through the papers and all libraries have investments books. And so, in conclusion, I still maintain that common stock is not in the least common and preferred is not always to be preferred. If you can't understand why from my more or less feeble efforts or seek until you find (where'd I hear that bfeore) then you are hopeless. Cash your pay check as usual, pay your living expenses, your current amusement costs and throw the rest down in the gutter, watch the slime and muck of waste slowly carry it away, pausing here and eddying there until it reaches the sewer of oblivion. Don't blame your failure to save on circumstances. "Circumstances! said Napoleon, "I MAKE circumstances!" P?[0CK! Interlock Your Pay Check With Your Future Income Start saving $100.00 per month and in about 8 years your income will be $100.00 per month. Other amounts in same proportion. NOW IS YOUR OPPORTUNITY You will enjoy this form of savin//, because of its great safety and ease of depositing or withdrawing by mail. TELEPHONE FOR APPOINTMENT ALBERT ESCHNER PACIFIC COAST BL.DG.-LOAN ASSN. RESOURCES OVER $6,50 0,000 310 Taft Building, Hollywood, Calif. GRanite 1721 FREE PARKING AT 1G16 VINE ST.