LEONARD GRAY / L’Observateur / July 11, 2000

Q. I plan to take my company’s early retirement offer. Does thatdisqualify me from applying for unemployment benefits? A. I have urged several clients to go down and apply for unemploymentafter they’ve accepted early retirement offers, and they discovered they were entitled to benefits. I’ve heard of other instances of people being turneddown. It seems to depend on how the agreement is worded and also thespecific terms of the agreement. It certainly wouldn’t hurt to apply at thelocal unemployment office.

Q. How do I let Social Security know I’m ready to start receiving mybenefit checks?

A. Contact your nearest Social Security office approximately threemonths before you are ready to start receiving benefits. At that time you’ll needto complete the necessary application form as well as provide proof of your age. If you have been employed for the past two years bring your W-2forms from that period. If you’ve been self-employed bring you federalincome tax returns. You must also provide proof of your current maritalstatus. If you are married, divorced or widowed bring your marriagecertificate with you. If you prefer Social Security will take yourapplication over the phone. You can call the toll-free number at 1-800-772-1213. Then, just mail copies of the necessary documents proving ageand marital status and you’ll be all set.

Q. I’ve heard about dollar-cost averaging. How does that work?

A. Dollar-cost averaging is an excellent strategy when investing instocks. Basically, you establish times to purchase shares at set intervalsover a long period of time, regardless of what the market is doing. Thisway you’re taking advantage of the high-low fluctuations. Using dollarcost averaging, the average cost per share is usually lower than the average market price per share over a given time period. Of course such aplan does not ensure a profit or protect against loss in a declining market.

An investor should consider his/her ability to continue purchases through periods of low price levels.

ALAN S. MOORE is a financial advisor in the New Orleans office of LeggMason Wood Walker Inc., a diversified securities brokerage and financialservices firm which is a member of the New York Stock Exchange, Inc. &SIPC. He writes this column every Wednesday for L’Observateur.

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