New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-04-17


Snestfon-The writer thirty y.a.. =,
axe and married six years. holds saisr, ~,
ann1s' with present salary OF 81, 900 nor
ssstments is $500 and misceiiansam IN
a Inc about $500 a year: $4,000 Iifs insnr-
mn in Is Is earned THIS will be fully paid
iast 1919 our average annual savings for tho
sa s. tour years have been $3.50 This
,ha pee, peeh made possible by following out
We We pan of living we'll within my salary
re nave as our aim. $50, 900 principle n !,
1 rr,Snrs The Investment column in The
saved for our financial scra pbooE W. M, sna
lied to md In it any suggestions of
shise plans for saving. 1t r. our belief
a AT expenditures. The following plan has
usveioped from the experience of the
mar Your candid criticisms are desred'
70, TOT convenience l have classified securi-
. yes as follows (the illuatrat tons are from
a. "rlters present holdings: Real
9ss soo MORTGAGES and high class bonds
Second grade bonds and high grade
ppa a,s1a stocks (French 81. Japanese IS.
rsn,, nena Steel per cent preferred. vir-
Sannn Saro1ina Chemical prcferred) a.
second grade preferred and business man
ttnesstnents, common stocks General Mo-
tors aensntures, Cuba Cane Sugar pre-
preferred, Union Pacific common. Canadian
acanc common. Delaware G. Hudson.
NNew York Airhrake. Great Northern Ore
Sssa,a1ornis Packing Pure OH. Royal Dutch
sM'ddle States OiD. Investments are TO-
De made approximately in the following
Pioportlon; Ito per cent; Els per cent: :
~ 10 per cent; 40 per cent That is
toeai twice the sum of the preferreds the
second grade bonds and the business mans
should ne tosstS g. plus a. These in turn
speculative Investments The wor,sin -
rules include: Except in highest Lass
Investment lsi buy not to exceed $1,000 worth
o nrot t1~. -
sas nor hold any on-dividend PAYERS;
o. all bonds until maturity unless
earnings indicate that interest is endan-
gered Sell any stock showing gain "a
current prices of SIS share in value. /
IKE ~ tEls opportunity to express my an
b. ~ 'ou are uolhs.
Answer-A couple who have worked
out as logical and sound an investment
plan as you have and have the strength
OF character to carry it out will be
pretty likely, in our opinion, to have
the 100000 "at Cor before) forty" In
the class of high-grade bonds we think
you could proftably include one of the
Oomlnlon of Canada issues. In the
hlgh-grade. preferred stocks we think
that American Car and Foundry and
Standard Oil of New Jersey are rather
better than anything you have. We do
not give advice in regard to specula-
ton. This is not because speculation
IS an lllegitimate business. but because
1T IS highly technical avocation in
which success depends in large part on
individual judgment ana freedom to
meet each situation as it arises. The
attitude of mind Of the speculator is
distinctly different from that of the in
weston. You undoubtedly could master
the principles that govern successful
speculation, but whether you are close
ly enough in touch with price move
ments and have the right temperament
tor speculation is another question.
You have good investment plan,
which permits of your reaping the
profits of appreciation in market
prices, without your fourth class, the
common stocks. Your speculative stocks
are diversified, and since they are linn
tied to 10 per cent of your capital you
snow conservatism, but couldn't you
get more from your money by eliminat-
ing entirely the fourth groups Specu-
latlon is quite a different study from
investment, and an attempt to pursue
both may spoil your judgment in both.
You should also consider the fact that
long speculative commitments are
bound to show loss of principal, and
quite likely of income, in a protracted
bear market. and you have made no
provision for short selling which is
the only way to meet such conditions
probably. Do not overlook, in your
conservative investment scheme. the
excellent facilities which building and
loan associations offer for periodic
savings, especially in your city New
ark