---
Friday, December 6, 1974
University Daily Kansan
THE UNIVERSITY DAILY KANSAN
OPINION
The White House Washington, D.C.
Pope Paul V (title, name)
The Italian (street address)
Rome, Italy (city, state)
Dear (Mr., Mrs., Miss, Ms. or title) Pope Paul (name),
It is unfortunate that a few remarks I made (date) at ___ (location, event) were taken out of context when reported in the news media. The remarks were escalated in the news with an interpretation clearly not intended.
My statement was not intended to impune the motives or integrity of any (circle all that apply: religious group) religious leader ethnic group racial minority, foreign government official, U.S. government official, allied nation, occupational class, corporation private citizen, trade association, union, special interest group).
The President has (circle one: asked, ordered me to let you know he disapproved of the remarks, disavowed the remarks, and that the remarks in no way represent his views.
I apologize to any and all individuals who may have been offended. And I sincerely apologize for any part I played in it. I (circle one:
do, do not) intend to tender my resignation as a result of this incident.
Sincerely,
U. S. Government Standard Apology Form R6729/F2541 Revised 1974
Econ prof denies life insurance need
The University Daily Kansas Nov. 12 published a comment of mine on the financial ad-hoc requirement for term life insurance and investing the difference in the cost of a decreasing-term policy vs. a cash-value investment bond is the bonds of the U.S. Treasury.
The details of the example, from which the above conclusion was drawn, are given below.
In the Nov. 26, 1974, issue of the Kansan, Dwight W. Boring,
former president of the Kansas Association of Life Unions and of his comment. Space does not permit a point-by-point refutation of his arguments, but I will comment on one of his
"More than 10 years ago Benjamin Graham, also a
Mutual Life Insurance Company.
According to the story, "Mr. Linton set up two programs, each covering a 20 year period. He used an electronic computer to show what would happen if a student at age 35, invested in a new amount of money every year in each of the two programs.
"Under the first program, the man used his savings to buy renewable term and put the money into separate investments."
Renewable term is a type of level term, for example, a 5-year renewable-term.
In my example, I use 20-year decreasing-term.
The economics of decrease term recognizes that life insurance is used to acquire an annuity. By age 50 the mortgage on the house is largely pay off, the kids have grown up and are on their own, and one has acquired a pension. In order to pension rights, a tax sheltered
Income, not life insurance, is needed when one retires. Only a financial moron would base a personal, financial program on level term and invest the difference.
finance professor with vei, impressive credentials, admitted in U.S. News and World Report that his own position of 'Buy Term and Invest the Difference' was incorrect. the author of a great college text, *Business for the Future*, fighting insurance based upon superior research," Boring said.
annuity, plus social security rights.
The statement of Graham that Boring alludes to appears in the Oct. 7, 1963 issue of U.S. News and World Report and is cited in "The Case for Clinton," former board chairman and president of Provident
These are the "building blocks" that provide retirement income.
Income, not life insurance, is needed when one retires.
Only a financial moron would base a personal, financial program on level term and invest the difference. Since neither Linton or Graham fitted this category, they must have had other reasons for selecting "renewable term."
By selecting level term, they prove their point. It doesn't pay to use level term and invest the difference. The reason for this
is that the rates on renewable level term increase at almost an exponential rate as one advances in age.
Also, by using the concept of renewable term, they don't need to admit that life insurance is a "sometime thing," but it should be completely phased out of one's financial plan.
In the example below I'm not trying to prove that $100,000 is the proper amount of life insurance for you, that your first policy should begin at age 30, that you should stop saving at
—The cumulative amount of $2,255 invested annually at a compound rate of 6 per cent over a 20-year period is about age 50, and grows to a figure of about $199,000 at the age of 65.
- The cash surrender value of the 20-year pay-policy is at $40,000 at age 50, and approximately $75,000 at age 65. No insurance premiums are paid and no payments of savings into the permanent estate are made after the age of 50.
There are many compelling
The economics of decreasing-term recognizes that life insurance is used to acquire an instant and temporary estate.
age 50 or that you should invest the difference in Series E bonds.
I'm simply proving that by making identical total dollar outlays each year for 20 years we can decrease-term life insurance at age 65 would provide, even with E bonds, nearly $200,000 in cash while the cash value of the account would amount to about $75,000.
To meet the unpredictable financial contingencies most of us have to face, I would suggest, a focused invested investment program.
reasons for not investing through a life insurance company, and you're investing through a life insurance company if you buy any type of cash-value life insurance.
In the early years of the program one could invest in Series E bonds and other forms of highly liquid assets and later
--Saving should never be made a fixed legal charge. Pay rent and loan ads suggest, but don't subject yourself to the rigidities, forfeiture costs and interest in long-term life contracts.
Briefly, the reasons for not investing are:
-Life insurance provides no inflation hedge.
Investing costs, concealed in the salesman's commission are high.
There are many compelling reasons for not investing through a life insurance company, and you're investing through a life insurance company if you buy any type of cash value life insurance.
Garret is sirloin amidst the baloney
There are plastics a plenty from the record companies these days, and Warner Brothers, like everyone else, is making sure the racks are crammed for the Christmas crazies. Decorating the dresses they are new offerings from Maria Muldaur, Jesse Winchester and John Sebastian. Though these three are worthy enough on their own, they stand out
because of the guitarist they share.
At a time when many a rock guitarist doesn't know his ax from a hole in the ground, Amos Garrett stands like sirloin amidst the baloney. Most of us have heard of the passage, just run the churn changes, failing in every direction in jackhammer bursts of notes. This can be impressive at the adrenal gut level, but
Using his fingers in the stead of a pick, Garrett is able to coax a feathery, from his whimsical tone from his guitar. His solos comment on the melody, inverting or embellishing it, by playing with the finger or tripe. Like Mike Davis, Ernest Hemingway or Ellsworth Kelly, Garrett can make sparsity special. He knows
intuitively, not only what to put in, but what to leave out.
The latest visitation from vinyl veteran Maria Muldau, "Watitness in a Donut Shop," features, besides the Garrett guitar, music from the pens of Fats Waller, Skip James, Allen Gainey, Jamie Harper and the Leiber-Stoller paen to pots and pants, "I'm a Woman." Big band arrangements on some of the spotlights spotlight jazz
ENTERTAINMENT
Collision Course—15 plays directed by University of Kansas at 8 p.m. Monday and Tuesday at the University Theatre.
This Week's
On stage
Xer克斯-Opera Workshop performance. An opera by G. F. Berman, choreographer Paulmüller from the Mozartium in Salzburg, Austria. Conducted by Ann Schornick at the University Theatre.
On screen
The Trial of Billy Jack—At (4)
p.m. through Tuesday.
Mattiness at 2 p.m. Saturday,
and Sundays at 10 a.m. Streatest I.)
I. **Black!** II. **Black!**
Blue!—(At the Criestlest II.
Specifies time not yet released.)
The Longest Yard-Eighth great week. Highly recommended. With Burt Reynolds and Eddie Alden (At 7:15 and Mathews at 2:15 Saturday and Sunday at the Hilcrest III.)
Time to Run—A movie for Christian and non-Christians as well. With Ed Nelson and
Barbara Sigel. (At 7 p.m. and
9:20 p.m. through Tuesday.
Matinees at 2 p.m. Saturday
and Sunday at the Varsity.)
Jesus Christ Superstar-
Ridiculously flamboyant. With
Ted Neely and Carl Anderson.
Directed by Norman Jewison.
A very good music. (At 7 and 9 p.m.
Friday and Saturday.)
The Enforcer—With Hum-
phrey Rogart. (At 7:30 and 9:30
p.m. Wed. at Woodruff
Audiotiorum.)
Knock on Any Door—With Humphrey Bogart. (A: 7:30 and 9:30 Friday, Dec. 13 in Woodruff Auditorium.)
In concert
Yes-A rock band. (At 9 p.m.
Friday at Allen Field House).
Yes-B rock band. (At 8:30 p.m. Friday
The Free State Press Office.)
Alfa Centaur—A rock band. (At 8:30 p.m. Saturday at the Free State Opera House.)
Memorial Carillon Recital-
Albert Gerklin. (From 2:45 to
3:15 p.m. and 6:45 to 7:15 p.m.
Sunday.)
Annual Presentation. Including the Brass Ensemble directed by Roger Stoner; James Moeser, who chairs the choirs directed by James Balcony. Ballet choreated by Burt Allen; University Symphony directed by George Lawner; and Brass directed by James Ralston.
Works by Shaw, Reading,
Vaughn, Williams, Wagner,
Costeley Handel, Corelli,
elson Guber, Mendelsohn
and Christianus (A 3:30
and 7:30 p.m. at Hoch
Atudorium.)
University String Quartet
- Howard Boyajian, violin; Chris Hardenn, violin; Karel Blass, viola; and Raymond Stuhl, cell. Assisted by Robert Ward, viola; and Raymond Stuhl, saxophone. Program: "Quartet for Strings" by Shostakovitch, "Piano Quarter in G Minor" by Mozart, and "Quartet for Alto Saxophone and String Quartet" by Stuhl. (At 6 p.m Monday at Swarthout Rectal Hall.)
giants Sweets Edison, Snooky Young, Plas Johnson, Ray Brown and others.
in five Parts" by Telemann;
"Proceed, Sweet Charmer of the Ear" by Philip Hart; "Suite from Bancrotty Musical," by Harry Bancrotty; "Sonata for the Centaul" by Dietrich Buxtehude; "Sonata for Two Records" by Jean-Baptiste Loellier; "Two Scottish Christmas songs"; and "Concerto by Francesco Gennemina." (A13 3:30 p.m. Wednesday at the Museum of Art.)
University of Kansas
Collegium Musicum -Directed
Culinary Clark and David
Elleiden College
in D Major for String Orchestra
It's its obvious from Maria's singing that when she thinks of her mother, the way she knoxes Koutax, because that's as close as she usually comes. But she has lots of style and the mate is a top drawer, left hand side.
Mud Creek, Tide--Lace
chance dance. (At 8:30 p.m.
Wednesday at the Free State
Opera House.)
"Learn to Love It" is a subtle synthesis of the sometimes cynical, sometimes sentimental songs of Jesse Winchester and friends. The music is eloquent in its simplicity and in places where it feels more personal, it is featured on most of the tunes, which range from the story of a "low-ren rendezvous" in "Third Rate Romance" to a love song about those tricky quiet moments called "Every Word You Say." In "Inside Without stop in "Mississippi," You're On My Mind" and "L'Air de la Louisiana." A definite five-pointer.
Stan Kenton—The "King of Jazz." Here in Lawrence and 7:40 and 9:30 pm, Saturday. Dec. 16 for the Free State Opera House.)
Quintt' Time—A rock band.
(At 8:30 p.m. Friday Dec. 13 at
the Free State Opera House.)
At the gallery
3rd Annual Art Escapades--
music provided by the John
Ballie Group. (From 8 to 12)
through April in the Kansas
Union Ballroom.)
Kid" is a nice folky record that's pleasant buddy sadly not too engaging. Sebastian, the former guitarist of the band, penned only two new songs for
John Sebastian's "Tarzana
KANSAN review
this outing and one of those was cowritten by Lowell George.
The others are traditional folk ditties or updated Spoons tunes. Sparkling guitar solos from George and Garrett's velvet touch, with solid session support from Emmons, Pointer Sisters, Milt Holland and Buddy Emmons, spruce up an otherwise plain OP.
The Winchester disk is definitely the pick of the litter, but the star of all three is Amos Garrett. Hopefully, he'll soon put out an album under his own name. I'd buy two.
Music Reviewer
Tim Bradley
Final fun suggested
As finals' week becomes the most important event at the University, many students find it difficult to learn the space between studies and taking that dreaded final examination.
Since television isn't the vast wasteland it used to be, many students watch it. It is rumored that some people even read.
If one is tired of these activities, he should consider that most of Orenre exhibit that are here offered on campus.
fers a number of paintings, drawings and other sculptures.
Spooner Art Museum is offering a "Collectors Choice" sales exhibition, several bronzes by Charles Marion Russell and drawings by artist, and drawing from a Western Calendar." The museum also of-
The Natural History Museum has been around for a long time, and final week we would be a good opportunity to collect lent collections of North American animals. The museum also has collections of American Indian artifacts, prehistoric duck eggs and a special duck decoy exhibit.
In addition, the Kansas Union Gallery is offering a "Design Department Faculty Exhibition," Watson Library has a special museum and curator" exhibit and Spencer Library is there for everyone to admire. It appears that no one has a real reason to be bored.
shift to contributions in a tax sheltered annuity. If funds permitted, one could invest in real estate, common stocks, etc.
Entertainment Editor
For example, there is a difference in investing in a 100,000-year pay-wind-backing fund at a $100,000, 20-year decreasing-term policy at age 30 and investing the difference in the life of the two insurance premiums in series E Savings Bonds.
If this outline was followed, and again assuming $49,520 was spent on each program, the difference in the two estates at age 65 should be much greater than $125,000.
Assumptions:
$100,000, 20-year pay-whel-
life policy beginning at age 30.
The premium per $1,000 is
$24.76 in dollars of
New York savings banks.
$100,000 of 20-year decreasing-term beginning at age 30. Annual premium per year is $75,000. Quotes of United Investors Life.
— the difference in the cost of the two premiums is $2,255 or $22.85 per $1,000 and is invested on a center Series E savings bonds
A low rate of return is obtained on the investment feature, cash-surrender value, of the life insurance policy.
—Savings accounts in insured commercial banks, or savings accounts better than better method of building up liquidity, and a more convenient lower cost source of insurance that does cash-value life insurance.
—Lastly, a savings-investment program should have flexibility, not only with respect to the amount saved and invested, but also with respect to the types of investments made.
To those of you who are so weak willed that you won't invest the difference, I suggest setting up an automatic Series E payroll deduction plan with your employer.
And when it becomes absolutely impossible to meet these conditions, as it almost inevitably will at some time in the future happen in on a few of the Series E Savings bonds to tide you over.
Leland Pritchard Professor of Economics
THE UNIVERSITY DAILY
KANSAN
Kansan Telephone Numbers
Newsroom—UN 4-4810
Business Office—UN 4-4358
Published at the University of Kansas weekly journal, *The Journal of Education*, annual periodicals. Second-classel paper paid at Lawrence, Kan. 60045. Subscriptions by mail are $13.95 for one year and $11.95 for $1.30 a semester, paid through the student activity office.
Accommodations, goods, services and employee benefits are available to all employees of the Illinois firm. The greatest advantage of the Illinois firm is that its managers can work independently without direct supervision.
Editor
Fife Mus.
Eric Meyer
Associate Editor Campus Editor
Jeffrey Stilton Jill Wills
Copy Chiefs
Coral Petal Wilson
Campus Editor
Associate Campus Editors
Assistant Campus Editors
Dana Hunt
And Alan Manager
Chief Photographer
Wire Editor
Makeup Editors
Mark Mitchell and
Mike Kendrell
Sports Editor
Associate Sports Editor
Mark Zulliang
Associate Campus Editor
Jim Sheldon
Associate Campus Editor
Business Manager
Stone Harman
Advertising Manager Assistant Business Manager
Aller Retter
Dave Riese
Classified Manager
National Advertising Manager
District Marketing Manager
Assistant Classified Manager
Promotions Director
Sales Manager
Gall Johnson,
Deb Danielle
Debbie Arbionnes
Steve Brownback
Terry Kafka
Patti Hall