
                              The EndGame(tm)

             We derive our philosophy from Chess, where the  masters
        analyze three phases of the game:  opening, middle and  end.
        If we view life thusly way each phase is about 24 years.  In
        the first we acquire knowledge and skills, in the middle  it
        is money and in the end it should be rewards, but often that
        is not the outcome.  The EndGame(tm) is designed to optimize
        and  your retirement with powerful ideas and  challenges  to
        convention.  Let us consider one of them:

                          Leaving it to the kids?

             If you married in your 20's, had children and live into
        your  70's or 80's, your offspring will be in their 50's  by
        the  time they get your money.  If they haven't made  theirs
        by then, they never will and won't know how to handle yours.
        If they've made their own, they won't need yours so why does
        this idiotic tradition survive?

             Secretly, in the darkness of your larcenous old  heart,
        you're  really slathering guilt on your offspring  when  you
        talk about your Will so they'll invite you to Sunday dinner,
        listen  to  your old stories again and not call you  a  jerk
        when you get obnoxious, drunk or fart.

             In  every family where the inheritance is more  than  a
        few  bucks,  the children will be at  each  other's  throats
        before you're at room temperature.  Don't leave your kids  a
        problem that will divide the family.  Spend it.  But, to  do
        it  properly you need to know:  (1) how long you will  live,
        (2) how to optimize your assets to draw on them tax free and
        (3) how much to draw annually, the Zero Concept.

             This disk will help you determine the term of your life
        with accuracy, give you methods to optimize earning, tax and
        drawing procedures such that you can use all of your  money,
        and maybe more, during your lifetime.

                                LifeTerm(tm)

             This  expert system computes the length of  your  life,
        barring accident or infectious illness.  Most life extension
        has  come  from public health programs for  infectious  dis-
        eases.  Clean water, food and air have banished plagues  and
        pestilence to places only the idle rich and politicians  can
        afford to visit. The latter, of course, are doing it on your
        money  with the intent of giving American farm and  business
        contributors  guarantees in the name of "foreign  aid"  with
        even  more of your money.  If you can stay away  from  these
        places you'll likely not die of an infectious illness.

             Most men live to age 72 and most women 76, but in  your
        family  the numbers may be significantly different.  If  you
        don't  know the history of your ancestors use 72  years  for
        men and 76 years for women as the starting point.

             If you do know of your family history the longevity  of
        ancestors  of your sex is the most significant indicator  of
        the  term of your life.  You should see a consistent  figure
        for the age of death of the men and women in your family and
        discount the exceptions to arrive at an average figure.

             If  there  is a genealogical record, you will  want  to
        study it, but remember many people died prematurely not very
        long ago. Discount these unfortunates as they likely died of
        accidents,  wars or infectious disease.  The terms of  their
        lives bear no significance on your yours in this  relatively
        disease free time.

             To  run the program you type/input "LIFETERM" when  you
        see  the ">" cursor.  You can exit this program at any  time
        by touching the "X" key.

                                Optimize(tm)

             This  program will maximize your holdings in a  way  to
        reduce taxes and produce the largest possible drawable asset
        portfolio.   Bear in mind that the objective is  to  acquire
        the  largest  possible equity in any form  because  you  can
        borrow on that equity with no taxes!   Loan proceeds are not
        taxable.   The EndGame(tm) is like golf:  The  lowest  score
        wins.  On your death, if the sale of your assets leaves more
        than a few thousand dollars after the loans are paid, you've
        lost the EndGame(tm).  If it covers exactly, or is  lacking,
        you've won.

             Suppose you have a California home that is appreciating
        by five percent per year.  If it has a value of $500,000 you
        are  actually making $25,000 per year in borrowable  equity.
        In California getting that money out of the property is like
        making $42,000 because adding income to the top of your  tax
        picture means you pay the highest rates in federal and state
        income  taxes, a total of 40 percent and to get a  spendable
        $25,000 you've got to make $42,000!  Again, the basic  prin-
        ciple  is  that loan proceeds are not taxable,  and  if  you
        borrow  money on your residence the interest paid is  a  tax
        deduction.

             You've  got to get over the Great Depression hangup  of
        wanting  to  "pay  off the mortgage" and  the  feeling  that
        owning your home "free and clear" makes you secure.  That is
        true  only if you are willing to borrow on it and spend  the
        loan proceeds.  However, there are so many more things  that
        can be done to optimize your financial picture.

             It  is possible to make 33 data inputs to this  program
        to model your finances, but you likely won't have inputs  in
        all areas.  Just ignore them, they'll zero out.

             This  program is a dedicated spreadsheet system.   Once
        you  see how it works, you may want to do your  own  spread-
        sheet, or just run this program whenever you need to make  a
        course  correction in financial navigation.  And,  "navigat-
        ing" through the changes in laws and the economy is  exactly
        what you will be doing.  You should run this at least once a
        year or whenever there is any new legislation affecting your
        taxes or a significant change in the markets, interest rates
        or the like.

             With the Republican Revolution sweeping the country you
        can expect tax changes in business' favor, but benefits like
        Social Security may decline.  If you examine your  financial
        picture  carefully with this program you are going  to  find
        that  what is needed for the country now is good for all  of
        us, so get out there and raise that flag!

             With respect to the "Assets" column:  There are only  a
        few places to put your money:  Bank deposits, stocks, bonds,
        loans  and property.  In our setup we have Cash,  Insurance,
        Municipal Bonds, Mutual Funds, Others and Property.  Cash is
        generally  in banks and you pay taxes on  the  appreciation.
        Insurance  policies may appreciate, but you don't pay  taxes
        on  them as long as the value stays in the policy,  but  you
        can borrow on it with no tax consequences.  Municipal  bonds
        are not taxed and their payouts are not part of your taxable
        income.  Corporate bonds are to be avoided in the  end-game.
        They  are speculative and many will have little or no  value
        in the future.

             We  like the stock markets, but not as lone  investors.
        Witness  IBM  stock which dropped 50%  suddenly.   Only  the
        highest  level professional investors and fund managers  had
        any inkling the IBM drop was coming.  What to do?

             Many mutual funds have done very well through good  and
        bad  times  and should be considered, but study  the  annual
        evaluations in financial publications where they are ranked.
        Don't  take  the word of a broker alone as he will  tend  to
        pick  one that pays him well.  His better judgement  may  be
        compromised.

             Appreciation on property is not taxed, but it  produces
        borrowable  equity and tax deductions, thus property  owner-
        ship  is very important in arriving at the  lowest  possible
        income  tax and the highest possible  retirement  spendable.
        We  did not say "income" because the end-game is not one  of
        making money so much as spending it.

                             The Spending Phase

             In  the first phase of life you probably  didn't  worry
        much  about money; ignorance, hormones and visions  of  "the
        long  road ahead" propelled you through  your  opening-game.
        The middle-game was different.  There you discovered life is
        finite, work is hard, never too much money, always too  many
        responsibilities.   The end-game is different.  This is  the
        spending phase; the clever spending phase.  It does not mean
        squandering  anything.   It does mean  embracing  mortality,
        optimizing assets and having fun.

             Older people are the most overlooked asset in  America.
        Their  experience  and judgment are largely wasted,  but  in
        your  own personal financial matters you can employ it  with
        enormous  effect,  but this does not mean running  your  own
        investment portfolio because you now have the time.

             We  believe in mutual funds because the people who  run
        them  are on Wall Street with their antenna up and  working.
        These are people who think of every nuance from company name
        to  popular song lyrics and other esoteric  stuff  affecting
        the  price  of stock, but still they diversify even  to  the
        point  of putting money in banks when the markets are  nerv-
        ous.

             We  do not recommend individual investing in the  stock
        market unless you are going to handle your money with  broad
        diversification.   This is really a full time job and  while
        you may save a few bucks in fund fees you will spend so much
        time  at  it we doubt it will ever be worth the  effort  for
        anything  short of one million dollars.  At that level  each
        percent  in  fees  represents $10,000 and if  you  love  the
        business, have good information sources and enjoy the  work,
        do your own portfolio.

             To run this program type/input "OPTIMIZE" when you  see
        the  ">"  cursor.   You can exit this program  any  time  by
        touching the "X" key.

             When you see the OPTIMIZE screen, move the cursor  over
        to  the green < LOAD > control and "click" on it.  A set  of
        data figures will appear.  This is our working example.

             We  are  using an affluent California example  as  most
        computer  users  are in this class and we apologize  if  our
        numbers  are inappropriate.  In any case they  are  instruc-
        tive.

             We  have $5,000 in the Cash account and this is mix  of
        savings, checking and cash with an overall earnings rate  of
        six percent.  Then we have a paid up insurance policy with a
        typical appreciation of one percent, and never wonder  where
        the  insurance  companies make theirs.  We have  $20,000  in
        municipal  bonds,  which  is four of them  at  $5,000  each,
        earning only five percent, but tax free.  We have $30,000 in
        a  mutual fund, earning 15%.  The "Others" include a mix  of
        loans  to friends and family members, maybe a  second  trust
        deed and if you're in business, a "factoring" deal or two.

             "Factoring"  is a good way to make money if you have  a
        reliable  small  businessman friend who needs cash  and  has
        excellent receivables.  You can buy his "paper" at  substan-
        tial  discounts, wait the 30, 60 or 90 days and collect  the
        full price.  If you are careful you can make some very  high
        rates of return with these kinds of deals so we put the rate
        of return on "Others" at 15%

             The  "Property," which is your residence, is valued  at
        more than $500,000, but you have a small mortgage  outstand-
        ing  so  we'll  use $500,000 as the figure  to  keep  things
        simple.  And, we will note that we've deliberately left  out
        many things accounts would like to see in this system, as it
        is designed to deal with one issue:  Asset optimization.

             Under  "Earnings"  we see a  small  business  activity,
        largely kept for it's ability to generate deductions,  which
        drives the IRS berserk. Your pension of $5,000, a rental  on
        a small warehouse you own where your brother-in-law runs his
        homing  pigeon  business and a $500 Royalty on  a  book  you
        wrote  entitled, "Making Your Own Toothbrush," a  salary  of
        $7,000  you are earning as a radio talk show host  and  your
        $14,000 Social Security benefit.

             Under  "Deductions" we see $5,000 for Business,  $3,000
        for Dependents as your sister-in-law moved in a year ago and
        you  haven't  yet worked up the courage to push  her  off  a
        building or cut the brake lines on her car.  There is $2,000
        medical  deduction, which is too complicated to explain  and
        $1,000 in Miscellanous Taxes, most of which was state  sales
        tax and you pay $2,000 in property taxes because Proposition
        13 froze your taxes in 1976 when it began gouging the  young
        people  who  dared to buy homes.  You had better  hope  they
        don't catch on to the shucking they're getting now, but they
        will soon...

             The tax rate is shown at 20% and this will vary depend-
        ing on how much you make, but we estimate this from the  tax
        table in the instruction books given with the forms.

             Under  "Expenditures"  you have the whole list  and  we
        will  not examine this in detail as it does not affect  your
        tax  and appreciation picture but in the sum total.   It  is
        involved  in the final "Gain/Loss" figure at the  bottom  of
        the screen as this is the bottom line to tell you how you're
        doing and what the asset total will be for the coming year.

             Click  the cursor on < COMPUTE > and you will  see  the
        chart of your finances.  Gross Income includes earnings  and
        appreciations  from Cash, Mutual Funds and Others  as  these
        gains are taxed, but Insurance, Municipal Bonds and Property
        are not as long as you didn't sell them.

             If  your Mutual Funds are in an IRA or Keogh plan  they
        will  not be taxed, but to keep this analysis simple we  are
        assuming  they are not because we are going to make  changes
        in that figure in ways you cannot in those plans as  contri-
        butions to them are limited by law.  If your retirement plan
        includes  such funds you will want to put their sums in  the
        Municipal Bonds cell where they will not be taxed, but  will
        reflect appreciation approrpiately.

             With  an anticipated combined, federal and  state,  tax
        rate of 20%, given deductions, etc., we see that your  Gross
        Income is $37,200 and with $14,000 deducted becomes  $23,200
        taxable.  With taxes of $4,640 your net spendable income  is
        $32,560  and  with expenditures of only $17,000 you  have  a
        gain on this year of $48,360.   This sounds pretty good, but
        you can do much better.

             Suppose  you  would get a loan for half the  equity  in
        your home, $250,000 and split it between municipal bonds and
        mutual funds, putting $100,000 into bonds and $130,000  into
        your  fund.   At current rates that will give  you  a  house
        payment of about $1,500 per month, or $18,000 per year,  but
        an interest tax deduction of about $15,000.  You can install
        these  figures  in the system by moving the cursor  to  each
        location  with the mouse and changing them.  To see the  net
        effect, "click" on the < COMPUTE > control.

             Bear  in mind your net asset picture is still  $615,000
        because  you have a $250,000 loan, but your asset  apprecia-
        tion has gone from $32,800 to $60,300.  On the actual  money
        involved your rate of appreciation has gone from 5.3% up  to
        9.8%.

             You  Gross Income has gone from $37,200 to $59,700,  an
        increase of $22,500.  Your tax rate has thus gone from 20 to
        30  percent,  but  your taxes have  only  increased  $3,170,
        you're ahead of the game nearly $20,000 on this score alone,
        but that isn't all!

             Your  real gain includes the appreciation of assets  on
        which  you  can  borrow and that has gone  from  $48,360  to
        $77,890  for a gain of $29,530.  At this rate of  gain  your
        $250,000 loan will have liquidated itself in eight and  one-
        half years!

             Is there more risk in having your money in these funds,
        bonds,  and  perhaps a few small business  deals  than  just
        leaving  it  in your home?  No.  In fact we think  there  is
        less  risk because all the eggs are not in one basket  which
        may be legislated or regulated to zero value.

             Suppose an EPA scientist announces your home was  built
        over a naturally occuring radon fissure?  Can you sell it or
        borrow money on it?  What if some government biologist pokes
        around your back yard and discovers an endangered cockroach?
        You may have to set up some kind of reserve for these little
        critters  at  your expense.  Which may well cost  more  than
        your own home!  Hopefully, the Republicans will change these
        insanities,  but for the moment they are a grim  reality  in
        our "Amerika."

             Proper  diversification and attention to what is  going
        on in the world, the markets and Washington, DC, as well  as
        your state capitol, will give you greater security than  you
        can  ever  have by sinking everything into  one  investment.
        This may challenge conventional wisdom, but on simple analy-
        sis  the truth should be evident.  However, the  most  chal-
        lenging aspect of this system is yet to come:

                              The Zero Concept

             It  is  amazing how many sophisticated  people  try  to
        build  an enormous nest egg with the idea of living off  the
        interest while never touching the principal.  Do they  think
        they're  going  to  live forever?  They  act  like  it,  but
        they're not alone.

             The  Wall Street Journal recently featured  an  article
        wherein  the  author  declared you would  need  one  million
        dollars in the bank to fund retirement in the next  century.
        That  sum earns $60,000 per year in interest in CD's  or  T-
        Bills,  but  pays  $12,000, or more, in  federal  and  state
        taxes,  netting $48,000.  In municipal bonds you  would  get
        about $50,000 and pay no tax.  But, how many people can  put
        away  one million dollars?  Very few.  However, we can  show
        you  how  you can have this kind of money  annually  with  a
        total asset picture that is a fraction of $1,000,000.

             The  critical trick in this system is that  of  knowing
        how long you will draw on the money and the interest rate at
        which the declining balance will be appreciating because you
        are  going  to draw off interest and  principle  every  year
        until both you and the money will be gone.

             This is not a simple calculation and is only  practical
        with  a computer, hence the reason this concept is new.   No
        one  could easily, or accurately, calculate the draw  before
        this technology existed.  Let's see how it works:

                            The Draw(tm) Program

             This  is  the "piece de resistance" of the  system  and
        will permit you to use all of your money before you pass on.
        You will likely be shocked at how much you can spend if  you
        go  about it correctly and will probably feel you have  more
        money than you can ever spend!

             Only two data inputs are necessary to run this program,
        the  number  of years of your retirement and  total  assets.
        Where this changes with legislation and economic cycles,  we
        recommend you run this program at least annually or whenever
        there  is a significant change in the laws or  the  markets,
        and your asset picture.

             From  our previous example, where we had an asset  pic-
        ture  of $615,000 and suppose an indication of living  until
        age  82, but we'll add three years for cushion and make  the
        entire  anticipated retirement period 20  years.   Inputting
        the  two figures and "clicking" on the < COMPUTE  >  control
        produces  a result of $4,628 per month or $55,536 per  year!
        And,  bear in mind this is on top of Social Security,  which
        it does not affect, and is like earning $92,560 because  you
        pay no taxes on this money!

             In  our example, where we only had $17,000 of  expenses
        in  addition  to the house payment, we  literally  had  more
        money than we could ever spend.  This is a frequent  outcome
        when  you look at your life clearly, optimize your  finances
        and accept the "Zero Concept."

             This  program  will not work on the "demo"  version  of
        this system.  You will see the screen, it will take  inputs,
        but  it  will not compute.  If you want  a  full-functioning
        version  of this program send $50 to Adrian Vance,  AV  Sys-
        tems, Inc., Box 60533, Santa Barbara, CA 93160.  (California
        residents add $3.88 sales tax.)  If you wish to discuss this
        program call Adrian Vance at 805 - 569 - 1618.

             To run this program type/input "DRAW" when you see  the
        ">" cursor.  You may obtain the ">" cursor from this program
        by touching the "X" key.


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