Time to Take Time Out

Time to Take Time Out

Many students are taking a year off between high school and college

The fighting was over, the enemy had surrendered, and hundred of thousands of American soldiers returned home after World War II to enroll in college as part of the GI Bill. There was a lot of worry at the same time that student Gis, being older and more world-weary than the typical college freshman, would not fit in on campuses and wouldn't do well academically. But the maturity of the returning Gis and their eagerness to hit the books and get on with their lives made them classroom standouts.

There's no war now, there's not even a military draft, but the fact that taking time off between high school and college can sharpen a young person's focus and build the self-confidence necessary to excel in college is being discovered anew by many students and their families. At Harvard, for instant, as many as 50 to 60 students in the incoming freshman class of approximately 1,600 students will defer their admissions for a year.

“We would actually like to see more students do it,” say admissions officers for Harvard and Radcliffe. Because virtually everyone who ever done it has reported that it was one of the best experiences they have ever had.

On of the best ways to arrange a gap year for yourself or your child is to consult with experienced professionals who can help a student plan a gap-year sabbatical that involves several unusual educational adventures.  Illustration by Elena.

For students considering a “gap year,” the opportunities to broaden their perspectives are legion. Environmentalists can work in the Student Conservation Association, which places students in outdoor-oriented volunteer programs across the United States. Students interested in health car can try the Frontier Nursing Service, which provides a chance to work with and help people in rural Kentucky.

Those looking for overseas experiences can explore the International Internship Network. Whether you are interested in art, finance, or wine making, you can be placed in Spain, Israel, Germany, France, Italy... Students seeking a more traditional academic year in a foreign culture can choose from among many boarding schools throughout England, India, Australia... 

Most students who take a year off complete the college admissions process as high school students and simply defer their matriculation for a year. But in some cases, students use their gap year to redo the application process, using their experience and new-found maturity to improve their chances of being accepted at the college of their choice.

A great starting point for planning a gap year is to consult many Internet sites which feature hundreds of gap-year options from which you can choose. They include detailed descriptions of the programs and a parcel of practical information about how to apply for the programs and wht costs may be involved.

What Social Security Pays Survivors

What Social Security Pays Survivors

So what social security pays survivors, you ask? A term life insurance policy can be locked in for 1 to 20 years. It is often the best – and cheapest – best for families who want to provide for the future in the event of the loss of a breadwinner and who want to target the years when their insurance needs will be greatest.

A term insurance policy can often be rolled into a whole life policy later. “Whole life” (also called guaranteed-permanent) insurance provides a death benefit until you reach the age of 90 or 100, as long as you pay fixed premiums – premiums that cannot have unscheduled increases.

Whole life insurance premiums are substantially higher at first than the same amount of term insurance, but term insurance premiums skyrocket as you get older. With whole life, you are betting that you will be around awhile, paying the higher premium at first and then averaging the cost out over a lifetime.

If you are older, the kids have graduated from college, and the mortgage is paid off, the fixed premiums of a whole life policy might be more attractive. These policies also offer an investment opportunity. Here, part of your premium payment is invested into a plan where earnings are tax deferred, so that the policy builds cash value over the years. At some point, the cash value of the policy should be enough to pay your premiums. “Cash-value” policies can help build wealth for you, and possibly your heirs – life insurance proceeds are not subject to income tax, or, for the most part, estate tax.

However, they still need to be carefully evaluated. You should weigh each policy’s return against those you’re getting from your other investments.

What social security pays survivors. Photo by Elena

What to watch out for: Remember, the agent’s computer models showing the projected returns are estimates, and are by no means guaranteed.

Not all policies that appear to provide fixed premiums and cash values are guaranteed-permanent insurance. Universal life, for example, is a form of cash-value insurance that combines term insurance with a side fund that is credited with earnings. Instead of making fixed premium payment, you have the flexibility to decide the size and frequency of your payments to the side fund, which accumulates interest on a tax-deferred basis. You get death-benefit protection as long as the side fund can cover the cost of the insurance.

If you make low payments to the side fund early on, you will have to make sharply higher payments later to maintain death-benefit protection. This flexibility means hat universal life can function more like term or guaranteed-permanent insurance, depending on how you fund it.

Variable life insurance products can be even riskier. You choose among investment options offered by the insurance company – stocks, ponds, fixed-rate funds, etc. Depending upon how the investments perform, you either build up cash value in the policy or not.

Your survivors may be able to count on more than life insurance proceeds in the event of your death. You may qualify to receive nice monthly benefits and have steady earnings during your working life

Brokers You Can Trust

Brokers You Can Trust

You’ve carefully considered your financial goals. You’ve talked with brokers at several investment firms. You’ve quizzed them about their investment experience and double-checked their professional and educational backgrounds. Now, you’re ready to pick the broker who will take your money and make it grow. Before you leap, though, remember that hundreds of brokers are either barred from doing business or suspected of cheating, stealing, forging paperwork, borrowing money against customers’ accounts and other assorted rules violations every year.

That’s the exception, of course, but before hiring a broker, you should consider these tips from the National Association of Securities Dealers (NASD). The adviser could spare your trouble later on.

Check on the broker’s disciplinary history: State security regulators can tell you if a broker is licensed to do business in your state. And the NASD operates a hotline that can also get you information on disciplinary actions taken against a broker by securities regulators and criminal authorities. The NASD often will not disclose information on pending lawsuits or complaints, however.

Ask for a copy of the brokerage firm’s commission schedule: This will tell you how the broker is paid. Firms usually pay sales staff based on the amount of money invested by a customer and the number of transactions done in a customer’s account. The broker may be paid more for selling the firm’s own investment products. Ask what fees or charges you will be required to pay when opening, maintaining or closing an account.

Decide whether you need a full-service firm or a discount brokerage firm: A full-service firm recommends stocks, fills orders, and offers research support. Discount brokerage firms take orders but do not offer recommendations. The charges you pay differ depending on the services provided.

Ask if the brokerage firm is a member of the Securities Investor Protection Corporation: The SIPC provides some customer protection if a member firm becomes insolvent. Also, ask if the firm has other insurance beyond the SIPC limits. For instance, the SIPC does not insure against losses attributable to a decline in the market value of your securities. For more information, call SIPC.

Do not rush into a decision: Investigate the firm and the broker thoroughly. Resist sales-people who urge you to open an account with them immediately. Never send money to buy an investment based simply on an effective telephone sales pitch. And never make a check out to a sales representative or send checks to an address different from the business address of the brokerage firm.

No jumping without reflection! Photo by Elena (Jamaica).

And What to Do If He Flunks

The SEC is the top securities regulator, but it has only about 50 inspectors to police the nation’s 20,000 brokers and investment advisors, so the settlement of disputes is largely to industry groups. The steps you can take:

Contact your broker for an explanation: If you are not satisfied, contact the broker’s management. Explain your position and ask if the matter can be resolved without resorting to law suits. If you get no satisfaction from the branch manager, file a complaint with SEC, NASD, or your local state securities regulator. These agencies can take disciplinary action against a broker but usually will not resolve a dispute or help you get your money back.

File for Arbitration: Arbitration has become the main route for settling disputes between investors and brokers because most investors sign an arbitration clause when they sign a customer agreement with a brokerage firm. You pay a small fee to have your claim reviewed and a decision made by an impartial arbitrator. You can file for arbitration with the NASD or the New York Stock Exchange, among other exchanges. The American Arbitration Association also provides securities arbitrators. If the amount in dispute is less than $10,000, your case will be assigned one public arbitrator. If the amount if over $10,000, two public arbitrators and one industry arbitrator will be used. It’s a quick and fairly inexpensive process – unless you choose to have a lawyer represent you. Recent figures show that investors who enter arbitration win their cases and recover some damages more than half the time. Once a decision is made, however, you have almost no recourse to appeal.

Go to court: If you did not sign an arbitration agreement, you can take your dispute to court. Though expensive and time-consuming, going to court offers the advantage of being judged by a jury of your peers, and you can appeal to a higher court if you lose the first round.

George Street, Toronto Downtown. Photo by Elena

How to Grade Your Broker

Is your broker doing a good job with your money? Give him a report card by asking yourself the following questions from the editors of Stand Up to Your Stockbroker (Consumers Union of U.S. Inc.)

Have your investments kept pace with market averages? – If the S&P 500 average has grown 15 percent over the past six months, have you done about as well? If not, investigate the situation.

Are you paying too much in commissions for what you are earning? – If you would have had an 18 percent return but your commission costs were 15 percent, you actually earned only 3 percent. If so, your broker may be recommending too many short-term trades.

Does your broker recommend you buy only proprietary products? – If so, find out why and ask if there are other products that are just as suitable. Overdependence on in-house products could mean the broker is more interested in winning in-house contests than in earning money for you.

Does your broker advise you only to buy and rarely to sell? – That may be fine if you own nothing but blue-chip securities. In any case, you should discuss this with your broker.

Has your broker tried to assume full control of all investment decisions without your permission? – If so, he is acting dishonestly, even if you have made money. Complain immediately.

If your broker difficult or impossible to reach when things are going badly? – A broker should be in touch with you in good times and bad. That doesn’t mean your broker should hold your hand through every transaction, but he or she should be available when you have to make tough decisions.

Presidents of the U.S.

Presidents of the U.S.

They Had the Right Stuff

Gerald Ford once commented on the early days of his troubled presidency, “I guess it just proves that in America anyone can be president.” Of course, it helps if you’re white, male and protestant. Following are some of the traits that America’s top executives have had in common, and a few that they haven’t.

Places of origin: The most fertile producer of American presidents is Virginia, where 8 presidents were born, followed by Ohio (7), Massachusetts (4), and New York (4). All together, 19 states conspired to produce the 42 presidents thus far elected. Where did successful presidential candidates live at the time of their election? New York leads with 8 candidates, followed by Ohio (6), and Virginia (5). Six presidents were born in log cabins – Andrew Jackson, Zachary Taylor, Millard Fillmore, James Buchanan, James Garfield, and, of course, Abraham Lincoln.

Religion: Nearly all of the presidents were born Protestants. John Kennedy, the first Roman Catholic elected to the office, was the sole exception. The most common sect of presidents is Episcopalian (11), followed by Presbyterian (7) ad Unitarian (4). The four Baptist presidents (Warren Harding, Harry Truman, Jimmy Carter, and Bill Clinton) have all served in the 20th century. Thomas Jefferson was a Deist. Andrew Johnson and Abraham Lincoln had no affiliation with an organized religion.

Education: The president with the least formal education was Andrew Jackson (his wife taught him how to read). Woodrow Wilson was the only president with a Ph.D. – a degree in history from Johns Hopkins. Twelve presidents made it to the highest office with no college degree at all, but only one (Truman) served in the 20th century. Harvard boasts the greatest number of presidential alumni (5), followed by Yale, Princeton, and William and Mary, each of which claims two graduates.

Profession: Thirteen presidents were practicing lawyers, and over half of the 42 presidents had training in the law. Seven were former soldiers and 3 were professors, Andrew Johnson was a tailor, Herbert Hoover was an engineer, and Ronald Reagan was an actor. Two presidents served as university presidents – Woodrow Wilson at Princeton and Dwight Eisenhower at Columbia.

New York, Chamber of commerce. Photo by Elena

Marriage and Family: Nearly all of America’s presidents have been married; James Buchanan is the sole exception. Eight presidents, however, were widowed before or during their terms of office. Two presidents, Grover Cleveland and Woodrow Wilson, were married while in the White House. George Washington, James Madison, Andrew Jackson, James Polk, James Buchanan, and Warren Harding were the only presidents not to have children – although there is some evidence that Harding fathered an illegitimate child while in office and Jackson took a Native American child orphans following a raid on a Florida settlement when Jackson was a general. Grover Cleveland is the only president to admit to fathering an illegitimate child.

Elections: Two presidents won office despite losing the popular vote. In 1824, John Quincy Adams lost the electoral vote. He received 30 percent of the popular vote to Andrew Jackson’s 40 percent in a four-person race. The outcome was decided in the House of Representatives. In 1876, Rutherford B. Hayes lost the popular vote to Samuel Tilden by over 250,000 popular vote to Samuel Tilden by over 250,000 popular votes but squeaked into office by just one electoral vote.

John Kennedy beat Richard Nixon by a mere 118,000 votes in the 1960 election. In 1968, Nixon beat Humbert Humphrey by only 510,000 votes. The three biggest landslide went to Franklin Roosevelt in 1936, Richard Nixon in 1972, and Ronald Reagan in 1984. Both Nixon and Reagan carried all but one state and the District of Columbia.

Life after the White House: John Quincy Adams was elected to Congress, where he served for 17 years. Andrew Johnson was elected in the U.S. Senate. Jimmy Carter served as an international mediator.

Deaths: Three presidents, John Adams, Thomas Jefferson, and James Monroe, died on July 4, the anniversary of the signing of the Declaration of Independence, in which all three had taken part.

Eight presidents have died while still in office. Four of them – Abe Lincoln, James Garfield, William McKinley and John Kennedy – were assassinated. William Harrison, Zachary Taylor, Warren Harding, and Franklin Roosevelt all died of natural causes. Harrison died one month after taking office, from pneumonia that developed from a cold that he caught on Inauguration Day, after speaking for two hours in a freezing rainstorm.

Odds and Ends: Nine presidents owned slaves. Two presidents, Millard Fillmore and Andrew Johnson, were indentured servants during their childhoods. Fillmore was indentured to two different textile craftspeople, he bought his freedom at the age of 19.

Jefferson was perhaps the most inventive president. Among his many inventions: a dumbwaiter for moving food into rooms from the kitchen, the lazy susan; swivel chairs, and a pedometer. John Adams swam in the Potomac, John Quincy Adams produced a small volume of poetry in 1832. Zachary Taylor’s warhorse. Old Whitey, wandered around on the White House lawn.

So far (for 1995) there have been 42 presidents and 45 vice presidents of the United States. Sixteen of the presidents served more than one term.

Bus Lines in Iceland

Bus Lines in Iceland

No License? No Problem – Life in the bus line

When you are visiting a foreign country, public transport can be a bit intimidating. In Reykjavík, however, getting the hang of it is pretty easy. There are no tube lines to get tangled up in, no metro, no Ubers, and no tram system. Basically, if you are a non-driver who doesn’t wanna splurge on a cab – the bus system is it.

As well as tourist-centric hop-on-hop-off buses, there are a 26 bus lines covering Greater Reykjavík. City buses are known as Straeto, a nickname for straetisvagn, which translates literally as street carriage. Most routes stop at the bus station, Hlemmur, at the top of the main Laugavegur strip, also passing Harpa and the downtown thoroughfare of Laerjargata. So download the Straeto app, connect your credit card, and charge that baby up, your carriage awaits.

Ulfarsfell and Mount Esja

Everyone who comes to Iceland wants to get out and see some of that famous beautiful nature. If you’re on foot, and on a budget, you can get the bus to the city limits and find two picturesque local hikes. Ulfarsfell is a small mountain with two walking paths to the top, and Esja is the large mountain just across the bay from Reykjavík. Take snow grips and waterproofs in winter. Seriously. You’ll thank us later.

Route: Straeto 15 from Hlemmur to Artun. Change to Straeto 57 at Artun. Disembark at the Ulfarsa stop for Ulfarsfell, or Esjuraetur for the Esja Hiking Center.

A high-way in Iceland. Photo by Olga

Seltjarnarnes

This beautiful nature area sits on the very end of the Greater Reykjavík peninsula. There’s a lighthouse with a tidal causeway, a bird sanctuary, and a small hidden hotpot that can bathe your feet in. There’s also a Medical & Healthcare Museum on Austurströnd, if you like medical stuff.

Route: Straeto 11 toward Seltjarnarnes. Disembark at the final stop, then walk to Grotta. (Note that the black beach was the location of Björk’s Stonemmilker VR video.

Hafnarfjördur

You probably came through this suburb of Reykjavík already, as it’s on the Flybus rute. While it doesn’t look like much from the bus, it’s a great place to spend a day. Pallett is a popular coffee house, occupying the same building as the Von Mathus restaurant. The old town has a variety of shops, bakeries and museums, a tucked-away park with crags of lava, and an el-themed café.

Route: Straeto 1 to the final stop of Hafnarfjördur. It has a quiet retro-style pool, Sundhöll Hafnarfjördar, built in 1949