From Alane Mason

Amidst the literary adulation of Max I thought it might be apt to remember how much he loved being practical, how he appreciated the proper understanding and use of money, how he loved to brag about being rich in his old age (was he, really?).... I just found this long email from him, below, his response to my writing him: "Dear Max,
Since you are the richest man I know maybe I can ask you this: where does one go for all around financial advice -- re: retirement plans, mutual funds, taxes, real estate, etc.?  I have been a good saver even out of my most paltry publishing salaries, but have done stupid things like kept savings accounts at 2.5% interest and not known that an employer's 401K has to be rolled over into another plan to avoid paying taxes on it, etc.  Now I think I should be making some good long range decisions about these matters.  Does one go to an accountant for this, and if so how do you make sure to find a good one?"

Then of course there was that great encounter with Chester Milosz and Max's comment, "When real estate brokers get together, they talk about art and literature.  When artists and writers get together, all they talk about is money..."  I trust Mimi or Daphne has told you the fuller version....

Alane

-----Original Message-----
From: Max Steele <steele@email.unc.edu>
Sent: Thursday, December 08, 1994 1:50 PM
To: Alane Mason
Subject: Re: real estate

Alane, I was taught never to give anyone financial advice.  I can tell
you though that talk to accountants is expensive.  I have learned more
and been better organized since opening an account at Dean Witter I could
have learned any other way.  It is free.  They keep all your records in
one portfolio, send you a monthly report, and a year-end report which is
all you need for your tax 1040 completion.  You simply encode each check
and there it is at the end of the year.  Things taxable, things not.
However, one must be careful: they tend to suggest their own offerings of
stocks and mutual funds and so I tend to steer clear of Dean Witter
investments, one or two I have, but usually not.  I also let them keep my
retirement account in my portfolio.  I found it a boon to have monthly
amounts sent from my paycheck to them in addition to my IRA. Term life
insurance was a great investment in that I have it in an irrevocable
trust so that it can go to my children tax free.  I am glad I have a
living trust which includes a power-of-attorney paper to someone you
trust, and a living will so that money will not be squandered on hopeless
medical interventions which would allow doctors to torture me to death.
In short, I think it wise to have:
     1.  an account at some brokerage house which will keep your records
in great order:  Dean Witter or Fidelity, for instance.
     2.  a living (revokable trust) which will include a living will, a
power of attorney document, a trustee who can immediately write checks
and manage your affairs in case you don't quite dodge a NYC taxi, and
will allow someone to avoid taking your estate through a costly probate,
and avoid having the courts appoint you a guardian in case you go mad
editing.  The living trust should include also a final will. There are
companies now who draw these up for a flat fee which is half the price of
the ones drawn up by individual lawyers. I can get you the name of such a
company.  Their papers are done by lawyers who are specialists and I feel
sure will hold up in any court.
    3. The living will must comply with state laws and the papers for NC
living wills are now five or more pages long.  I got mine from the
Hemlock Society and I think you can phone a local chapter and get copies
for NY.
    4. Investigate buying an annuity in addition to life insurance and
IRA.In buying insurance or annuities, I have found it best to go to an
insurance broker who does not represent any company but who shops around
for you and finds you the best company and policy for your needs. One of
the best bargains I have found is a million dollar policy for my
properties and cars:  it kicks in after my regular policy covers the
first $100,000 and goes up to a million for about $150 a year. It is
mainly for people who file a liability claim against you.
    5. Choose rich parents.
    6. Marry rich
    7. Remember kind old professors in your will.
    8. Have a clause in your will which says that anyone who challenges
the will immediately forfeits any right to financial gain from the
estate.
    9. Consider publishing a book which makes all the above both urgent
and simple.
   10. Email Max if you need any of the above explained.