TRY A CLASSIFIED AD
EVERY
WEDNESDAY IS
n# DAIRY
EX [)fl y
AT NEW HOLLAND SALES STABLES, MG.
New Holland, PA
If you need 1 cow or a truck load, we have from
100 to 200 cows to sell every week at your price.
Mostly fresh and close springing Holsteins.
Cows from local farmers and our regular
shippers including Marvin Eshleman, Glenn Fite,
Gordon Fritz, Blaine Hoffer, Dale Hostetter, H. D
Matz, and Jerry Miller.
SALE STARTS 12:30 SHARP
Also Every Wednesday, Hay, Straw &
Ear Corn Sale 12:00 Noon.
All Dairy Cows & Heifers must be
eligible for Pennsylvania Health Charts.
For arrangements for special sales or herd
dispersals at our barn or on your farm, contact:
Abram Diffenbach, Mgr.
717-354-4341 -A
Norman Kolb
717-397-5538
YOU CAN COUNT ON US
AGRI-EQUIP. I. G/s AG, SALES
Ephrata, PA Rt 113, Box 200, Silverdale, PA
717-354-4271 215-257-5135
ROY 0. CHRISTMAN LANDIS BROTHERS INC,
RDI (Shartlesville) Hamburg, PA 19526 1305 Manheim Pike
215-562-7218 or 215-488-1904 Lancaster, PA 717-393-3906
DEPENDABLE MOTOR CO, HENRY S, LAPP
East Mam Street, Honey Brook. PA RDI. Cams, Gap, PA 17527
215-273-3131 717-442-8134
ERB & HENRY EQUIP,, INC, . CARL L, SHIRK
22-26 Henry Avenue, New Berlmville, PA 5 Colebrook Road, Lebanon. PA
215-367-2169 717-274-1436
GRUMELLI FARM SERVICE M, E. SNAVELY
Robert Fulton Highway, Quarryville. PA 455 South Cedar Street, Lititz PA
717-786-7318 717-626-8144
WEAVER STAR SILO INC. M. S. YEARSLEY & SON
RD4, Myerstown, PA 114 E Market St
717-866-5709 West Chester, PA 19380 215-696-2990
Farmers should look
at red
Farmers - owners and
employes - have something
new to look at in their
financial planning: in 1975,
they were given the op
portunity to set up an In
dividual Retirement Account
or IRA.
“The new Pension Reform
Act made it possible for 43
million Americans to start
their own individual tax
deductible retirement
programs,” observes W.
Scane Bowler, chairman and
chief executive officer of
Pioneer Western Cor
poration, a national financial
services organization which
owns Western Reserve Life
Assurance Company and the
management company for
the Pioneer mutual funds.
Bowler notes that a farmer
is eligible for the IRA
program if he is currently
not covered under a qualified
pension, profit-sharing,
Keogh (also called “HR
10”), or similar formal
retirement plan.
“Anyone entering an IRA
plan may set aside up to 15
per cent of earned income, or
$1,500, each year without
rement planning
paying Income tax on it until
he starts to draw from his
retirement account 10,20, or
30 years from now,” he
explains.
"The IRA plan is not
unlike the Keogh plan for the
self-employed, which many
farmers have participated in
for the past decade.
However, the Keogh plan
was not available in
dividually to employes -
unless set up by their em
ployer.
“On the other hand, a self
employed farmer going into
a Keogh plan must provide a
fund for any full-time em
ploye who has worked for
three years. This is not
requited under IRA.
Bowler adds that a part
time farmer with a job
elsewhere can set up an IRA
for himself from his farming
income, even though be may
be under a retirement plan
with his regular employer.
“There are various ways
to fund an IRA but our
company usually recom
mends a ‘balanced’ concept
of accumulation. This is
popular because part of the.
individual’s return - often in
excess of the net deposits - is
guaranteed by an annuity
and the balance invested in a
mutual fund to potentially
keep pace with inflation and
provide possible capital
growth,” Bowler says.
He gives the hypothetical
example of an eligible far
mer who contributes to such
a balanced type of IRA
program over the past 30
years, “as if such a plan,
obviously brand new, had
been possible or available
during the 1945-1974 period.
“In this sample case, the
performance of an actual,
well-known mutual fund over
30 years is utilized.”
The hypothetical farmer is
married, in the 25 per cent
tax bracket and begins the
program at age 35 and
concludes it upon his
retirement at 65. Although
his income should vary
widely over the period, for
simple calculation we will
assume an income of $13,500.
Thus he' may contribute
$1,500 to his IRA plan an
nually.
“The $1,500 contribution
each year is invested in a
modified premium fixed
annuity and mutual fund
shares from January 1,1945,
through January 1, 1974, so
Lancaster Farming, Saturday, Dec 27,1975 —
that the farmer’s total
deposits are $45,000,” Bowler
goes on. “His actual in
vestment, however, would
have been $33,750, the net*
after subtracting tax savings
of $11,250 for the same
period.
“Under this plan on
January 1, 1945, the con
tribution is divided, with
$1,200 going to the annuity
and $3OO into the fund shares.
From January 1, 1946
through January 1, 1954,
some $720 goes to the annuity
and $7BO into the mutual
fund. From January 1, 1955
to January 1, 1974, the
division is again $1,200 and
$300."
In the hypothetical
example, at the time of the
farmer’s retirement on
December 31,1974, the value
of tiie funds would have
totaled $95,823, including
capital gains and dividends
accepted in shares. And, the
annuity would have a
guaranteed cash value
amounting to $43,955 -
making the total value of his
net investment of $33,750. ,
“This is a meaningful gain
on a net investment of
$33,750,” Bowler concluded.
TRY A
CLASSIFIED
RED WING
AM-EEEE Sizes 6-18
WAYNE'S
DRY GOODS mm
W. Main St., Kutztown
Ph. (215) 683-7686
Pacing at Rear of Store
Mtwnrs
BAH
Use in any stable or animal
pen that has a tendency to
become slippery when wet.
• Cow Stables and Runways
• Hog Pens
• Sheep Stables
• Dog and Cat Kennels
• Chicken Houses
• Other damp areas
See your local dealer.
MARTIN’S LIMESTONE INC.
Fix-it
manual
printed
WASHINGTON - A new
publication from the U.S.
Department of Agriculture
tells how to determine if a
house is suitable for
rehabilitation, and, if It is,
how to do it.
“New Life for Old
Dwellings," was prepared
by the Forest Products
Laboratory maintained by
USDA’s Forest Service at
Madison, Wls., in
cooperation with the
University of Wisconsin. The
handbook promotes the
double advantage of lower
cost housing and con
servation of natural
resources.
The book has two sections.
The first, an appraisal
section, shows how to inspect
a house and determine if the
house is in good enough
condition to renovate. The
second, rehabilitation
section, is a guide for
planning and doing the ac
tual renovating. This fully
illustrated handbook should
also be of interest to car
penters, contractors, lending
institutions, and any others
interested in improving or
maintaining older homes
within a community.
“New Life for Old
Dwellings: Appraisal and
Rehabilitation,” Agriculture
Handbook No. 481, is for sale
by the Superintendent of
Documents U.S. Govern
ment - Printing Office,
Washington, D.C. 20202, for
$1.70.
M
'■gr*
IT SOFTENERS”
work on hard surfaces )
Tired feet taking away
your good disposition 7
Red Wing has the
answer l Our popular
service oxford
provides “cushion
comfort" all day long'
Styles to match any
uniform'
49