Money Moves - portfolio management and mortgage loan rates - Brief Article - Statistical Data Included

Kiplinger's Personal Finance Magazine, March, 2000 by Joan Goldwasser

Switching retirement money from one investment to another is EASIER SAID THAN DONE.

HAVE YOU been day-dreaming about what your IRA would be worth if it had spent 1999 cloning itself in Qualcomm (which gained 2,621%) instead of withering in, say, Comstock Partners Value fund (which lost 27%)? If such hindsight has you aching to move your IRA money, brush up on the rules and be prepared: The process can be cumbersome and time-consuming.

The direct-transfer route--asking the old IRA custodian to ship the money directly to the new one--ought to be the simplest way. But it can devolve into a tedious affair. Be sure to initiate the transfer through the firm you're moving your money to because it has an incentive to expedite things. Nevertheless, the process takes an average of four weeks, and it can easily take longer if you receive incorrect or incomplete information along the way.

Doing a rollover should be faster. This involves closing one IRA and opening a new account. You have 60 days from the time you get the money to see it safely ensconced in the new IRA. Unlike a direct transfer, which you can do any number of times, a rollover is allowed only once a year for each IRA you own.

The easiest way to switch IRA investments is to use a self-directed account at a brokerage that offers you a choice of mutual funds, individual stocks and bonds. That way, you can use the phone or broker's Web site to move your money around. Even so, the switch won't be instantaneous.

If you sell mutual fund shares by 4 P.M., you can use the proceeds to buy another fund or stock the next day. If, however, you make your decision after 4 o'clock, the mutual fund will not be priced until the end of the next day, so you'll have to wait until the third day for your purchase.

It may take even longer when you sell stock. Charles Schwab, for example, makes IRA owners wait three days for a stock trade to settle before the proceeds can be invested in another stock. Fidelity brokerage, on the other hand, clears stock sales the same day so you can reinvest immediately.

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BORROWING: Low loan rates around the U.S.

Pittsburgh           LENDER

Fixed-rate 30-year   Bell Federal S&L of Bellevue
One-year ARM         Bell Federal S&L of Bellevue
Home-equity line     Parkvale Savings
Car loan             Fidelity Bank

Tampa

Fixed-rate 30-year   First Union
One-year ARM         Crown Bank
Home-equity line     SunTrust/Tampa Bay
Car loan             SouthTrust Bank

Omaha

Fixed-rate 30-year   Commercial Federal
One-year ARM         First National Bank of Omaha
Home-equity line     First National Bank of Omaha
Car loan             First National Bank of Omaha

Las Vegas

Fixed-rate 30-year   California Federal
One-year ARM         California Federal
Home-equity line     Nevada State
Car loan             First Arizona Savings

San Diego

Fixed-rate 30-year   California Federal
One-year ARM         California Federal
Home-equity line     Washington Mutual
Car loan             California Bank & Trust

Pittsburgh           RATE/DESCRIPTION (INDEX PLUS MARGIN)

Fixed-rate 30-year   7.75%/0 pts.
One-year ARM         6%/0 pts. (Treasury index + 2.75)
Home-equity line     6.65%/1 year, $5,000 minimum (prime)
Car loan             7.74%

Tampa

Fixed-rate 30-year   7.88%/1.75 pts.
One-year ARM         6.63%/0 pts. (Treasury index + 2.75)
Home-equity line     6.9%/6 mos., $10,000 minimum (prime)
Car loan             8.5%/$100 fee

Omaha

Fixed-rate 30-year   8%/2.25 pts.
One-year ARM         5.25%/0.5 pts. (Treasury index + 2.75)
Home-equity line     5.99%/6 mos., $1,000 minimum (prime)
Car loan             8.5%

Las Vegas

Fixed-rate 30-year   7.5%/3.29 pts.
One-year ARM         6%/1.41 pts. (Treasury index + 2.5)
Home-equity line     8.5%/$5,000 minimum (prime)
Car loan             8.5%

San Diego

Fixed-rate 30-year   7.55%/3.29 pts.
One-year ARM         6%/1.41 pts. (Treasury index + 2.5)
Home-equity line     5.25%/6 mos., $5,000 minimum (prime 1.74)
Car loan             8.25%/$60 fee

                      TELEPHONE
Pittsburgh              NUMBER

Fixed-rate 30-year   412-734-2700
One-year ARM         412-734-2700
Home-equity line     412-373-7200
Car loan             888-802-8003

Tampa

Fixed-rate 30-year   800-735-1012
One-year ARM         727-343-2202
Home-equity line     800-786-8787
Car loan             800-225-5782

Omaha

Fixed-rate 30-year   800-742-5772
One-year ARM         800-228-4411
Home-equity line     800-228-4411
Car loan             800-228-4411

Las Vegas

Fixed-rate 30-year   800-225-3334
One-year ARM         800-225-3334
Home-equity line     800-462-3555
Car loan             800-280-2800

San Diego

Fixed-rate 30-year   800-225-3334
One-year ARM         800-225-3334
Home-equity line     800-788-7000
Car loan             800-254-2265

RATE BENCHMARKS (as of Jan. 7):

PRIME: 8.5%

11TH DISTRICT COST OF FUNDS INDEX: 4.77%

ONE-YEAR TREASURY INDEX: 5.95%

Survey was conducted Jan. 7. Mortgages are limited to a maximum amount of $240,000. Car-loan rates are for 48-month new-car loans of $16,000 with 20% down. For more cities and updated rates, check www.kiplinger.com; click on "Yields & Rates."