For high yields with safety, you might consider the REITs

MID-MONTH money memos:

WORTH A TRY? "Financial markets are flailing, stocks seesawing, bonds acting badly, international funds wavering. With bargains harder to find, smart investors turn to real estate for gains and portfolio protection.


"High yields, steady returns and financial safety nets are hard to ignore." (Fortune, May 27) If interested, see your broker for real estate investment trust (REIT) suggestions.

CNN TO COMPUTERS: "More than a third of American households have computers, and a rapidly expanding quarter of those households are connected to the Internet." (The New Yorker, May 13, in a good story, "The Re-Education of Michael Kinsley," describing his switch from CNN's "Crossfire" to a computerized magazine effort at Microsoft.)


MONEY-SAVERS: "Five Ways to Stick to a Budget" in Glamour (yes, Glamour), May, is worth reading. Excerpts:

"(1) Get rent or mortgage out of the way; pay that major monthly expense bill early. Write landlord a check for portion of total amount every time you get paid.

"(2) Stay away from the ATM. It's easy to lose track of 20s that go to eating out, movies, etc.

"(3) Leave your money at home. Carry only as much as you want to spend that day or evening.

"(4) Record your credit card purchases; write them down as you make them.

"(5) Save automatically through automatic payroll deduction plan."

INVESTING $1,000: "What to Do With a Thousand Bucks," cover story in Kiplinger's Magazine, June, just out, includes:

"Get an investment education. Try an index fund, a fund that aims to match the market, not beat it, like Vanguard Index 500 (800-635-1511). Fatten up your 401(k); make maximum before-tax contribution. Try an international stock fund. Buy stocks on your own intuition."


BALTIMORE BEAT: Speaking of Kiplinger's, T. Rowe Price's Mid-Cap Growth Fund manager, Brian Berghuis, is pictured and written up under "Superstars of Tomorrow?"

TAX TIP: "Tax deductibility of computers isn't automatic. Computers bought if you're self-employed or moonlighting are usually deductible to the extent used for business purposes -- but the IRS may require daily usage logs.

"Computers used as extension of your regular office job may not be deductible at all unless your employer requires you to have it. In any case, see your tax professional." (Price Waterhouse, CPA firm)

CALL TRAVEL AGENT: "Market volatility is rising because money managers aren't as committed to their stocks as formerly.

"Twenty years ago, if a stock had a bad report, trust departments or funds might buy 100,000 shares to add to their huge holdings.

"But today, when IBM or Caterpillar stubs its toe, funds might sell the whole darn thing. Hold good stuff and take a vacation -- go away for awhile." (Laszlo Birinyi in Forbes, May 20)


MARYLAND MEMO: Rent a Wreck, Owings Mills (800-421-7253) and Sylvan Learning Systems, Columbia (800-284-8214) are included under "Best Franchise Buys Under $100,000" in this week's (May 12-18) National Business Employment Weekly.

LAST, NOT LEAST: Boeing, Chevron, Coca-Cola (just split two for one), Disney, General Electric, Wrigley, Intel, Microsoft and Time Warner are well-known stocks included under "Look at the Leaders: Growth Portfolio" in Personal Finance, May 8.

"Nine times out of 10, when a highly valued person leaves a business, it's not about money. It's about the person's role, stature or personal life being out of balance with demands of the job." (Working Woman)

"The best salespeople are money-motivated. If they say art, music or literature, that's nice, but you want competitive people who want to make money." (Success, May, in its annual "Selling" issue)

"Don't try to change a bad boss. You won't succeed." (Fortune, May 27)

"Oxymoron: Small Fortune." (Reader's Digest)


Pub Date: 5/15/96