Thursday, August 14, 2014 The Reporter
CONSUMER / FEATURES
Avoid expensive errors when paying for college It’s just about back-to-school time again. If you have young children, you might be hustling them to the store for backpacks and binders. But if you fast-forward a few years, you can envision driving your kids a little farther — to their college dorms. And when that day comes, you’ll want to be financially prepared. So you’ll want to avoid making costly mistakes when preparing for, and paying, those big bills. Here are some of the most common of these errors: • Not saving enough — Only half of all families with children under 18 save any money for college, according to a recent study by Sallie Mae, the country’s largest originator of federally insured student loans. You might find it easier to save for college if you automatically move a set amount each month from your checking or savings account to a college savings vehicle. • Not considering vehicles with growth potential — The same
Sallie Mae study found that more parents use a general savings account than any other method of saving for college. But since most savings accounts these days pay only a minimal rate of return, you will have trouble getting the growth potential you need to achieve your college savings goals. Consider working toward your college savings goals by investing in a vehicle specifically designed for college, such as a 529 plan or a Coverdell plan. There are differences between these plans, such as contribution limits and tax treatments, but both allow
you to invest for growth potential. As with any investment account, there are risks involved, including market risk. • Stopping your savings once your children are in college — Unless your children plan to take an awful lot of credits, they’re not going to finish college in just one year. Consequently, you’ll want to keep investing in your plan or other college savings vehicle while your children are in school. • Taking out 401(k) loans — Your employer may allow you to take out a loan against your 401(k) to help pay for college. But this may not be a good idea for two reasons: First, when you remove money from your 401(k) — even if you plan on eventually paying it back — you will slow the potential accumulation in your account, thereby depriving yourself of resources you will eventually need for retirement. Second, should you leave the company, you might have to repay the loan within a limited number of days.
Area Property Tran$fer$
• Not using available tax credits — Depending on your income, you might qualify for the American Opportunity tax credit, which is worth up to $2,500, provided you spend at least $4,000 on college expenses. Check with your tax professional to see if you qualify for this credit and how to most effectively incorporate it. And be careful you don’t waste the credit, because you may not be able to use it and your plan distributions at the same time. Paying for college can be challenging — but if you can avoid making the above mistakes, you’ve got a better chance of getting your kids through school without derailing the progress you’d like to make toward your other financial goals. Scott Johnson, CFP, is a financial advisor with Edward Jones, 8146 W. 111th St., Palos Hills, 974-1965. Edward Jones does not provide legal advice. This article was written by Edward Jones for use by your local Edward Jones financial advisor.
Area Property Tran$fer$ Following are the property transfers in the area, according to the latest report, as received from the Cook County Recorder of Deeds Office. The Reporter Newspaper does not attempt to correct errors made by that office.
9320 S Francisco Ave, $142,000; Kerr Arthur J to Washington Pritay E, 9707 S Millard Ave, $234,000; Kaminski Eryk G to Dowden Pearce R, 9346 S Clifton Park Ave, $218,500.
Chicago Ridge Federal Home Loan Mtg Corp to La Chiana Marcella Carolina De, 10320 Ridgeland Ave, Unit# 104, $36,500; Haritgan Patrick to Toler Brett A, 10937 Moody Ave, $158,000; Fagan Rebecca S to Zayyad Intesar, 9800 S Sayre Ave, Unit# G7, $28,000; McMahon Bernadette M Tr to Duffy Jacquelyn M, 10505 Oxford Ave, $200,000.
Hickory Hills Sumner Marilyn J to Magid Rabab, 8953 Sandra Ln, $167,000; Goulooze Leonard Peter to Tylka Janusz, 9226 77th Ave, $196,000.
Evergreen Park Bank Amer to Anderson Daneen, 9730 S Central Park Ave, $85,500; Campin Wesley to Moeboean Prop LLC, 2633 W 90th St, $65,000; Villalpando Luis to SFR-CHI I LLC, 2728 W 90th St, $143,000; Intercounty Judicial Sales Corpt o Ja Cap Mgmt LLC Series 2719, 2719 W 96th Pl, $85,000; Fannie Mae to White Regina,
Oak Lawn S 12 LLC to Miarstar Prop LLC, 4021 W 99th St, $75,000; Bahlenhorst Mary Therese Tr to Moss Sterling S, 5753 W 103rd St, Unit# 1E, $40,000; Radosz Renee T to Borgerson Mason, 10038 Merton Ave, $155,000; Donnan Joseph J to Lawrence Robert W, 9610 Brandt Ave, $380,000; McCarthy Kathleen Tr to Hand Bernard, 11040 Jodan Dr, Unit# 110401B, $100,000; Watson Joseph F to Staresinich Michael, 10800 Kilbourn Ave, $267,000; Marquette Vbk Tr to Thompson Myron Sr, 4732 98th Pl, $150,000;
Talkin Poker By Corwin Cole Chip values aren’t always what they seem
major implication of this: The pressure you can apply to others is disproportionate to the amount of risk you take.
(Editor’s note: In early July, Corwin Cole checked in from the World Series of Poker in Las Vegas, where he was preparing to play in the Main Event.)
Take, for example, a hand I recently played in a $1,500-buyin no-limit hold ‘em event. With blinds at 500-1,000 and a 100 ante, action folded to my opponent on the button, who had been playing very tight and started the hand with about 14,000 in his stack. He raised to 2,100. For multiple reasons, including his body language, I was confident that he did not want to play a big pot just now, so I reraised to 5,300 from the small blind with Kc 6h. The big blind folded and the button called. When the flop came As Ah 3d, I made a very small continuation bet of just 3,700 — less than 30 percent of the pot and substantially less than the amount of my previous bet. With fewer than 9,000 chips remaining, he had very limited options at this point. He would have to decide whether he wanted to risk his tournament life now or survive to see another hand. He took the safe route and folded.
So far at the 2014 World Series of Poker, I’ve cashed in three tournaments, and I feel razor-sharp in anticipation of the guaranteed $10 million first prize in the Main Event. Along the way, I’ve revisited perhaps the most fundamental concept that differentiates tournament poker from cash games: the fact that each chip you have is more valuable than the next one you get. To illuminate this idea, consider two players who are heads-up at the end of a tournament with a first prize of $500,000 and second place earning $350,000. Each player’s stack, no matter how big or how small, is worth no more than the top prize and no less than runner-up money. If there are 10 million chips in play, and one competitor has 9 million while the other has just 1 million, the chip leader does not have nine times as much dollar value in front of him. Mathematically, this phenomenon implies that pot odds are not linear in poker tournaments the way they are in cash games. When the pot is laying you 3-1 in a cash game, you simply need to win at least 25 percent of the time to show a long-term profit. In a tournament, however, 1,000 chips in the pot are worth less than the last 1,000 chips in your stack. So, even if the pot is laying you 3-1 directly, the actual odds, in realizable dollars, are often as bad as, say, 2-1. Strategically, there is one
Since I had started the hand with over 50,000, I was able to impose a significant threat on my opponent at very little cost to myself. These high-pressure “underbets” are among the many powerful strategies that propel successful tournament players to final tables while overly mechanical players bust out early. Be sure to remember the true value, both financial and psychological, of every chip, and you can leverage this awareness to crush weaker players. (Corwin Cole is a poker coach whose instructional videos can be found at CardRunners.com. He can be reached at corwin. cole@cardrunners.com.)
Skyline 1 Inc to Rjem LLC, 4233 99th Pl, $110,000; Skyline 1 Inc to Rjem LLC, 9531 S McVicker Ave, $95,000; Skyline 1 Inc to Rjem LLC, 5372 Otto Pl, $160,000; Skyline 1 Inc to Miarstar Prop LLC, 8720 New England Ave, $100,000; Chicago Title Land Trust Co Tr to Jimenez Rebecca, 9637 Mason Ave, $177,000; Federal Natl Mtg Assn to Matchinis William, 10445 Mansfield Ave, Unit# 3C, $65,000; Shalaush Yamal to Khalil Ezzat, 9511 Massasoit Ave, $185,000; Powell Lynn M to Callahan Kevin M, 9323 Tulley Ave, $175,000; Breen Sheila to Gromek Marzena, 4831 109th St, Unit# 9202, $28,000; Staresnich Julie to Gorlicka Zofia Bizub, 9332 Massasoit Ave, $186,000; Renewd Homes Inc to Schmitt Colleen, 10023 52nd Ave, $193,000; Bourbulas Dan to Streetscape Renovation LLC, 9136 Karlov Ave, $145,000. Palos Hills Serafin John to Marek Patricia E, 11210 Sycamore Ln, Unit# 61B,
$115,000; Paplauski Linda Adm to Saleem Shahid, 11101 S Westwood Dr, $142,000; Bronske Theodore A Tr to Laczynska Izabela, 11331 S Roberts Rd, Unit# K, $92,500; White Pamela to Dagger Teresita, 2 Cour Deauville, $115,000; Nocun Marcin to Makowski Jaroslaw, 11114 S 84th Ave, Unit# 111143B, $78,000; PNC Bk to Kasprzak Margaret, 8201 W 99th St, $221,000. Worth Scheckel Harold J Tr to Albashaireh Suhaib, 11026 S Nagle Ave, $175,500; Pazdziora Eugeniusz to Nxstage Prop Grp Inc, 10608 S Oak Tree Dr, $450,000; Dziubasik Jean to Ciszek Mariusz, 7517 Southwest Hwy, $320,000; Lincolnway Comm Bk to Almasri Abdelraouf Ahmed, 6657 W 111th St, $156,000; Lemberg Kenneth A Tr to Premier Home Developers Inc, 6858 W 110th St, $77,000; Clifford Kevin to Kobel Margaret A, 6525 W Home Ave, $155,000.
Property Tax seminar coming next Thursday Cook County Board of Review Commissioner Dan Patlak will be holding a property tax appeal seminar Thursday, August 21, at the Worth Township Office for taxpayers seeking to appeal their 2014 property tax assessments. The seminar is co-hosted by Worth Township Assessor John H. Dietrick, Worth Township Clerk Katie Elwood, State Senator Bill Cunningham, and State Representative Fran Hurley. The hour-long session will educate taxpayers on how to file a successful tax appeal, provide information on property tax exemptions, and address why property taxes go up when the value of your home goes down. The seminar includes a presentation by Patlak explaining the appeal procedure at the Board of Review. Before the end of the evening, taxpayers will have an opportunity to work with staff from the Board of Review to ad-
dress their specific questions and concerns. This event is free to the public, and there is no fee to appeal at the Board of Review. Taxpayers are asked to bring a copy of their most recent tax bill. The seminar will be held Thursday, Aug. 21 at Worth Township Office 11601 S. Pulaski Road Alsip, at 6 p.m. Appeal forms also may be picked up at the Board of Review located at 118 N. Clark Street-Room 601 in Chicago or at the Bridgeview Satellite Office located at 10200 S. 76th Ave., in Bridgview. The phone number is 708-974-6074. Taxpayers may also file an appeal online by visiting the Board of Review website at www.cookcountyboardofreview.com. --Submitted by the offices of Fran Hurley and Bill Cunningham
Mortgage Rates Around the Area First Midwest Bank (as of July 28) 30-year fixed 15-year fixed Jumbo 30-year fixed
RATES APR POINTS 4.250 4.297 0 3.500 3.769 0 4.250 4.295 0
United Trust Bank (as of Aug. 12) 30-year fixed 15-year fixed 10-year fixed
RATES APR POINTS 4.250 4.271 0 3.375 3.411 0 3.125 3.176 0
Prospect Federal (as of Aug. 11) 30-year fixed 20-year fixed 15-year fixed
RATES APR POINTS 4.250 4.288 .25 4.000 4.052 .25 3.250 3.314 .25
All rates subject to change daily. Equal opportunity lenders.
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TECHNO TALK By Shelly Palmer
What’s going to happen now? What a difference a week makes. At our Innovation Series breakfast this past week, I was planning to discuss my recent article, The “New” Media Landscape: CNBCUTWC, 21stCFTW, ATTDirecTV, T-Sprint. We sent out our pre-breakfast discussion guide just as the Twenty-First Century Fox/Time Warner and Sprint/T-Mobile deals blew up. This made for an awesome, lively discussion about what might have been, what was going to happen and most importantly… what’s going to happen now? At this writing, the “new” media landscape is looking quite a bit like the “old” media landscape. But don’t be fooled by a few bumps in the road… the fun is really just about to start.
Time Warner
In our last episode, 21CF was in an epic battle to take over TW. Jeff rebuffed Rupert’s advances, and… to everyone’s amazement, Rupert withdrew. Negotiating tactic? Gamesmanship? Test? Perhaps the market knows… 21CF’s stock (Nasdaq: FOXA) dipped a bit on the day the news broke, but it settled down around $34 at the end of the day. TW’s stock (NYSE: TWX) fell from $85.19 down to $74.90 after the news and now sits around $72 per share – more than a 15 percent drop. Obviously TW shareholders were surprised. They had pushed the stock to a 52-week high of $88.13 in anticipation of the deal. Rupert said, “Our proposal had significant strategic merit and compelling financial rationale and our approach had always been friendly. However, Time Warner management and its board refused to engage with us to explore an offer which was highly compelling…” Well-played, Rupert. Does 21CF have the wherewithal to takeover TW? Do they still want to? Only Rupert knows. But this is an acquisition that make perfect business sense. Tune in next week for another exciting episode.
T-Mobile/Sprint
Don’t bother to stick a fork in it… it’s not done. After months of essentially acting like one company, Sprint called off talks to acquire T-Mobile. The move ended a nine-month bid to acquire T-Mobile. Sprint’s CEO Dan Hesse was shown the door, having been replaced by Marcelo Claure, the founder and CEO of Brightstar Corp (another SoftBank subsidiary). What really happened? Almost everyone I’ve spoken to says that getting the deal through regulatory was going to be impossibly difficult. The market hammered both stocks — Sprint (NYSE: S) dropped
about 19 percent, from $7.27 to $5.90 while T-Mobile (NYSE: TMUS) dropped about 9 percent, from $33.91 to $30.99 (its steepest decline since May 2013). It has since slipped to below $30. Now that this has blown up, you can expect Iliad SA’s $15 billion bid for a 56.6% stake of T-Mobile US to be reconsidered. T-Mobile says we’re not going to see a T-Free, but Iliad (owners of France’s Free) is talking with various US-based cablers to up its offer. There’s also a chance that Charlie Ergen will resurface. DISH would have a much easier time getting FCC and DOJ approval. The plot thickens…
Guessing at the future again
Now that 21CF/TW is off, we can expect a few months of “old media executive self-hypnosis.” This is a technique that allows seasoned professionals to believe that this Internet thing is a fad, that a hit show will solve most problems and that three hit shows will solve every problem. What other businesses might be in play? If you write the names of all the Viacom and CBS assets on Lego blocks (throw in the Sony assets just for fun), you can build some awesome structures. We certainly have not heard the last of 21CF and TW. Someone is buying TW at some point. At $105-$110 per share, the shareholders will insist. Who could pay that? Email me your picks. I’ll share a few with you. Of course, if the stock starts going south, that original $85 offer is going to start to look good. Is that what Rupert is counting on? He hit TW hard by withdrawing his bid. But TW’s resolve is steely! And, in various statements, both companies assured shareholders that they were going to get back down to business. But what does that mean? A force march to increase EPS will get the share prices up, but unless both companies make significant investments to adapt to changes in consumer behavior, neither will fare well. Investing in the platforms and toolsets required to get to the future first will negatively impact EPS in the short term. It’s either/or, not both. This strategic conundrum will play out over the next 18 months across the entire old media landscape as on-demand online and mobile media consumption starts to exceed scheduled one-to-many broadcast media consumption. Shareholder value vs. Enterprise value vs. Share Price. It’s game on!
Profits & Sense Evergreen Park
The First National Bank of Evergreen Park is hosting an online banking seminar free of charge at 10 a.m. Wednesday, Aug. 27 at the bank, 3960 W. 95th St., Evergreen Park.
SUDOKU Solution
Bank patrons can learn how to manage their accounts, transfer funds, pay bills, and more online. Instructors will walk participants through the process with simple step-by-step instructions. For more information, call 952-0148.
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