Letters

Kiplinger's Personal Finance Magazine, Feb, 2001

THE CASE AGAINST TIPPING

OUR JANUARY STORY about tipping ("Say It With Cash") touched a nerve for at least one reader, and he's not alone in challenging an American tradition: Other readers take issue with private mortgage insurance, mutual fund loads and housing materials. But in the mix you'll find solutions, too, in the form of software for investment clubs and a low-cost long-distance service.

SAY IT WITH CASH

Your story about tipping fails to answer the question I have asked for 50 years, "What is the rationale for the malpractice of tipping?" ("Say It With Cash," Jan.). I have taught university-level business courses but never found any research that claims it is the responsibility of a customer to supplement what an employer pays his help. The original purpose for a tip, to improve performance, vanished decades ago. As a realist, I know the tipping culture is ingrained in society, and those who want to tip are welcome to do so. But when I have paid for a service, I don't want to bother with calculating what additional amount I must pay. --JOSEPH BLAIR, Columbus, Ohio

BYE-BYE, PMI

Two years ago I bought my home with a 5% down payment and, naturally, must contend with mortgage insurance ("Bye-Bye, PMI," Dec.). I asked my mortgage lender why, if the company trusted me enough to approve the loan in the first place, I had to pay for insurance. I view PMI as legal extortion. --CARLA CULVER, Point Pleasant, N.J.

LOADED QUESTION

I'm always amazed that people buy funds with sales fees, or loads ("Answers to a Loaded Question," Jan.). In 1978 Andrew Tobias wrote a book called The Only Investment Guide You'll Ever Need, which gave me three pieces of advice I still endorse: Earn up to 18% on your money by paying off your credit cards; put every dime you can into your IRA or 401(k); and never buy a load fund because they do no better than no-loads. --GREGORY TAYLOR, Mason, Mich.

INVESTMENT-CLUB HELP

You recently suggested the National Association of Investors Corp. to a reader interested in starting an investment club ("Taxing Duties," Dec.). As an experienced club coordinator, I would highly recommend Bivio.com as a primary resource for new and old clubs. --GREG PAVYLAK, Edmond, Okla.

EDITOR'S NOTE: Bivio.com (www.bivio.com), sponsored by companies including online broker BuyandHold, offers free support for setting up a club, investing and managing taxes.

PHONING HOME

As a soldier who is on the road half of every month, I am keenly aware of long-distance rates ("The Worst Way to Phone Home," Dec.). Finally I found MiliTel (www.militel.com), which is also available to civilians. Its basic plan has no setup fee, no monthly fees and no minimum usage requirement. You pay only for the calls you make, at 10 cents a minute in the U.S. --LT. COL. RICH HOLDEN, Fort Leavenworth, Kan.

SCOOTER SAFETY

Shame on you for showing a child riding a scooter without protective gear. As the popularity of these scooters has increased, so have injuries. All riders should wear a helmet, elbow and knee pads, and wrist guards. --DR. DOUGLAS RADMAN, Alpharetta, Ga.

A HOUSE OF STEEL

In your story about using steel in new-home construction ("Ahead," Dec.), you suggest that 25% of new homes may be framed in steel because it is resistant to fire and termites. But prudent analysts would factor in such elements as environmental impact. Producing wood requires a fraction of the energy required for steel, and wood is a renewable resource that can be grown on the same site indefinitely. --TED STUBBLEFIELD, Ridgefield, Wash.

Letters to the editor will be considered for publication unless the writer requests otherwise. They may be edited for clarity and space, and initials will be used on request only if you include your name. Mail to Letters Editor, Kiplinger's Personal Finance, 1729 H St., N.W., Washington, DC 20006, fax to 202-331-7255 or e-mail to feedback@kiplinger.com. Include your name, address and daytime telephone number.