[GRAPHIC: United Services Funds logo]
SHAREHOLDER REPORT
Published for the shareholders of United Services 4th Quarter 1995
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A MESSAGE FROM THE PRESIDENT
[GRAPHIC: Photograph of Frank E. Holmes and his sons, Joshua and Nigel]
Dear Shareholder:
Like most parents, I'm constantly teaching my children lessons in life. And
because of my background, I often focus on financial and economic themes. I
believe America's economic system rewards those who work hard and work smart.
It's never too early to start teaching this lesson to a child.
That's why I like to bring my kids into the office with me on the
occasional Saturday morning. Their helping me at work provides them with a
little extra spending money and more importantly, a greater appreciation for the
things that money can buy.
There are many ways to teach children the value of a dollar and how to
decide whether to spend it or save it. Many of the parents and grandparents I
meet tell me how they use mutual funds to teach children the importance of
saving and investing.
I would like to share a story with you. When I took the helm at United
Services, I tried to explain this business to my sons. But the concept of mutual
fund investing was not easily grasped by my then six-year old son, Joshua. And
Nigel, my two-year old, was way too young to understand. Nevertheless, I
established mutual fund accounts for each of them in the U.S. All American
Equity Fund.
Each time they received money as a gift or for a job well done, I
encouraged them to spend half and invest half. As they grew over the years, so
did their accounts. When account statements came in the mail, we discussed how
their shares were accumulating and how they were making more money when
dividends were paid. They began to see how investments grow over time. But I
wasn't convinced they understood what it was that they were investing in.
One day as Joshua, Nigel and I were driving home past the shopping malls
and grocery stores, I was suddenly inspired with an idea. "See that store over
there?" I pointed to Toys 'R Us. Nigel got excited. "Yes, Daddy, are we going
there?" "No, not today," I said. "But did you know that you own part of your
favorite store?" He stared at me incredulously. Golden arches beckoned from the
other side of the street. "See that McDonald's? You own part of it too." I
really had their attention now.
"The money that you put away in your U.S. All American Equity Fund is
invested in American companies like Toys 'R Us," I explained. "When you buy
toys, the company makes money; and you make money because you own part of the
company. My car is made by General Motors. You also own part of that company.
And Mummy's car, it's a Chrysler. You own a little piece of that company too." I
could see they liked the idea of owning companies.
"What about H.E.B.; do we own it too?" Joshua asked, referring to our
neighborhood grocery which is part of a popular regional supermarket chain.
"No," I explained. "H.E.B. is not a public company so you can't own it." "What
about Albertson's, is it public?" he asked. "Yes," I told them. Nigel responded,
"Then I'm going to make sure Mummy shops there." Now I knew they understood. A
blue-chip equity fund, such as the U.S. All American Fund, is a valuable tool
for teaching children the fundamentals of free enterprise and the role that
corporations play in our economic system. It invests in companies that most
children will recognize by name and it offers growth potential for their
investment.
We make it easy for parents, grandparents and relatives to open mutual fund
accounts for children. It takes only $50 to open a UGMA/UTMA in most of our
mutual funds. (You can learn more about this type of account on page 3.) To
teach the importance of regular saving and investing, I suggest our ABC
Investment Plan(R). With this Plan, you open an account with $100 or more and
make automatic monthly investments of $30 or more. You choose a fund and pick
the day of the month you want to invest. We take care of the rest.
It's never too early or too late to learn about investing. To continue your
financial education, call our Education & Service Department. It's staffed by
our professional investor representatives. They will give you useful information
to guide you in making your own investment decisions. They can explain how
dollar-cost averaging can work for you, discuss the real benefits of
diversification, help you understand a fund prospectus, answer questions about
your account or tell you more about any upcoming investment workshops in your
area. They also have a variety of educational brochures available to send to
you, free of charge. Just call 1-800-US-FUNDS (1-800-873-8637).
Best wishes as we head into the holiday season!
/s/ FRANK HOLMES
President
P.S. If you haven't discovered the newest addition to our family of funds,
you can learn more about the Bonnel Growth Fund on page 3. This fund had a
fantastic first year, far outdistancing the market average.
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WHAT A DIFFERENCE A DOLLAR CAN MAKE!
INVESTING IN THE GOLD MARKET CAN BE AS EASY AS ABC!
[GRAPHIC: Picture of Liberty Silver Dollar]
Does dollar-cost averaging really work? Our investment research team
recently studied the effect of dollar-cost averaging versus a lump-sum
investment in the U.S. Gold Shares Fund, our most volatile fund. The chart on
page 2 shows how two hypothetical investors fared over a 25-year period. As you
can see, the one who invested $55 a month according to the dollar-cost averaging
system came out substantially ahead of the investor who invested $10,000 as a
lump sum.
At United Services we have found that dollar-cost averaging, using our ABC
Investment Plan(R), is the best strategy for building a position in any of our
funds. By investing an equal The difference a dollar can make (continued) amount
at regular, periodic intervals, you can avoid trying to outguess an
unpredictable market. Of course, using the ABC Investment Plan(R) does not
guarantee a profit. If you sell at a market bottom, no system will give you a
gain.
<TABLE>
<CAPTION>
DOLLAR COST AVERAGING VS. LUMP SUM INVESTMENT
JUNE 30, 1970 TO AUGUST 25, 1995
UNITED SERV: GOLD SHARES UNITED SERV: GOLD SHARES
DOLLAR COST-AVERAGING SINGLE INVESTMENT
($55/MONTH) ($10,000)
- ------------------------------------------------ ------------------------------------------------
1970 1975 1980 1985 1990 1995 1970 1975 1980 1985 1990 1995
- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$355 $1579 $11799 $22226 $35933 $19269 $12563 $8177 $8666 $13900 $21470 $8918
</TABLE>
Our ABC Investment Plan(R) can give you the discipline you might need to
stick with a long-term investment strategy. To sign up, simply call
1-800-US-FUNDS to request an enrollment form. You choose the monthly investment
amount ($30 or more) and we will automatically transfer your investment from
your bank account to the fund of your choice. Saving and investing for your
future becomes automatic, simple and affordable.
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UGMA/UTMA ACCOUNTS
Q. WHAT IS A UGMA ACCOUNT?
A. The Uniform Gifts to Minors Act (UGMA) and Uniform Transfer to Minors Act
(UTMA) provide a way to invest on behalf of a child. Both allow you to establish
an account in a child's name with you or another adult as custodian. By law,
minors cannot own securities (not even mutual fund shares) in a joint or
individual account. The Uniform Gift to Minors Act (UGMA) allows gifts of
securities to minors. Mutual fund shares are registered in the name of the
custodian for the benefit of the minor.
Q. HOW CAN I ESTABLISH A UGMA ACCOUNT FOR A CHILD?
A. You will need to complete a new account application for the
fund you choose. In most of our funds you can open a UGMA
account with just $50.
Q. WHO CAN BE A UGMA CUSTODIAN?
A. Any adult person - parent, grandparent, aunt, uncle, etc. (A few states
require a parent to be the custodian. Check with us for the rules in your
state.) There may be only one custodian and one minor per account.
Q. WHAT HAPPENS WHEN THE MINOR BECOMES AN ADULT?
A. When the child reaches the age of majority, the custodian must transfer the
assets into the minor's name.
Q. CAN THE DONOR TAKE BACK THE GIFT?
A. No, all gifts are irrevocable. The assets cannot be returned to the donor and
income from the assets must be given to the minor.
Call 1-800-US-FUNDS for a UGMA/UTMA account application.
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BONNEL GROWTH FUND
[GRAPHIC: Full-length photograph of Art Bonnel]
United Services' newest fund is already one year old. The Fund has enjoyed a
spectacular inaugural year, attracting the attention of investors and media
alike.
"HE'S A FUND MANAGER YOU CERTAINLY WOULD WANT TO KEEP ON A SHORT LIST OF
MANAGERS YOU WOULD CONSIDER GIVING MONEY TO." - Don Phillips, Publisher of
Morningstar, in Investor's Business Daily, November 1994
"WHEN BONNEL SPEAKS, MANY PEOPLE LISTEN. HIS TRACK RECORD IS ONE OF THE FINEST
IN THE BUSINESS AND HE IS ONE OF THE FEW PORTFOLIO MANAGERS TO CONSISTENTLY
OUTPERFORM THE S&P 500." - William Donoghue, syndicated columnist, May 1995
"BONNEL...HAS ONE OF THE BEST TRACK RECORDS IN THE BUSINESS." SMART MONEY,
SEPTEMBER 1995 ONE OF THE "TOP TEN FUNDS FOR 1996" - Mutual Funds Magazine,
December 1995
Thousands of investors and many leading financial publications have taken
notice of United Services' newest no-load mutual fund. It's hard not to notice a
fund that returned 44.83% in its first year (10/17/94-10/17/95). The S&P 500
Index returned just 28.42% during the same period.
Art Bonnel is not a stranger to success. While working for another fund
group, Art managed a highly rated mutual fund. He built a reputation on his
demonstrated ability to select top- quality growth companies from a universe of
stocks. Now he is putting this same stock selection strategy to work at United
Services. Of course, past performance cannot guarantee future results.
Art has strict selection standards for the stocks he includes in the Fund.
A company must:
* demonstrate strong quality earnings that come from operations
* have a strong balance sheet
* be a leader within its market niche
* have a management team which owns a substantial stake in the company
* show a favorable price-to-earnings ratio
To track the Bonnel Growth Fund's performance, look under the United
Services listing in the mutual fund section of your newspaper. Or call
1-800-426-6635 for daily share prices.
INVESTMENT RETURNS AND PRINCIPAL VALUE WILL FLUCTUATE.
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL SHARES.
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FUND NOTES
GOLD FUNDS
[GRAPHIC: Photograph of front cover of prospectus wrap: Gold mine operations,
stacks of gold coins]
The lack of volatility in the gold market has lulled some investors to
sleep. Over the last 18 months, gold has traded in the narrowest percentage
range since the time the price was fixed at $35 an ounce. We expect the metal to
continue trading in a narrow range for the near term.
In the June issue of Worth, the legendary Peter Lynch shared his thoughts
on gold. Here are a few excerpts in case you missed the article.
"NO LESS A PERSONAGE THAN ALAN GREENSPAN ONCE SAID THAT GOLD WAS THE ONLY
REFUGE AGAINST PROFLIGATE GOVERNMENTS THAT ARE FOREVER DEBASING THEIR CURRENCY.
HE SHOULD KNOW I GUESS. THESE DAYS WE'VE BEEN SEEING A LOT OF DEBASED
CURRENCIES, INCLUDING THE GOOD OLD U.S. DOLLAR, AND THERE'S A WHIFF OF INFLATION
ON WALL STREET.
"I WON'T TRY TO PREDICT WHEN THE WHIFF WILL TURN INTO A RANK BREEZE, BUT
I'M SURE ABOUT ONE THING: IF IT DOES HAPPEN, INTEREST RATES WILL RISE AND STOCKS
AND BONDS WILL FALL. IN THE HIGH-INFLATION SCENARIO, THE ONLY INVESTORS WHO GET
A GOOD NIGHT'S SLEEP ARE THOSE WHOSE MONEY IS PARKED IN A MONEY MARKET OR
DEPLOYED IN HARD ASSETS SUCH AS GOLD.
"SOME PEOPLE KEEP 5 PERCENT OF THEIR PORTFOLIOS IN GOLD AT ALL TIMES, AS A
KIND OF INSURANCE POLICY. FOR YEARS THEY HAVEN'T NEEDED IT, BUT THE CASE FOR
OWNING GOLD IS MORE COMPELLING TODAY THAN IT WAS A DECADE AGO....YOU'RE MUCH
BETTER OFF BUYING SHARES AND NOT THE METAL.
"MINING COMPANIES ARE TOUGH TO FIGURE OUT, SO THIS IS ONE OF THOSE CASES
WHERE LYNCH'S EVERYBODY-CAN-DO-IT THEORY OF STOCK SELECTION DOESN'T APPLY. HOW
SAD IT WOULD BE IF YOU WERE RIGHT ABOUT GOLD, BUT THEN MISSED THE BENEFIT
BECAUSE YOU PICKED THE WRONG COMPANY. IT'S SMARTER TO GO WITH A GOLD MUTUAL
FUND. YOU'LL GET A DIVERSIFIED PORTFOLIO MANAGED BY SOMEBODY WHO KNOWS MORE
ABOUT MINES THAN YOU DO."
Our gold and natural resources investment team includes professionals with
backgrounds in geology, mining finance, engineering and mineral economics.
CHINA REGION OPPORTUNITY FUND
[GRAPHIC: Photograph of front cover of prospectus wrap: Agricultural area,
children, city view]
Frank Holmes and Victor Flores, Chief Investment Officer, recently returned
from a fact-finding mission to the Far East where they visited with the
management of several companies held in the portfolio of our China fund.
According to Victor, "The trip reinforced my belief that China continues to be
caught up in a dynamic economic spirit which will result in 10% growth into next
year. For the long term, China is a fantastic growth story," he said. "Still,
there are certain issues such as succession, banking reform and the government's
management of the economy that will need to be addressed as the country moves
from a command economy toward a market-oriented economy."
A Special Report on this trip was recently distributed to shareholders. If
you would like additional copies, please call 1- 800-US-FUNDS.
As of January 1, 1996, Bin Shi will be the portfolio manager of the China
Region Opportunity Fund. If you're a shareholder of the Fund, look for a special
mailing introducing Bin and highlighting his credentials and experience.
MONEY MARKET FUNDS
[GRAPHIC: Photograph of front cover of prospectus wrap: American flag, silver
dollar, paper currency]
Low expenses are guaranteed! United Services Advisors has guaranteed, at
least until June 30, 1997, that the U.S. Government Securities Savings Fund's
total operating expenses (as a percentage of net assets) will not exceed 0.40%
of total net assets on an annualized basis.
How much are you paying for your bank checking account? According to a
report by the U.S. Public Interest Research Group, fees that banks charge
customers for checking accounts have grown 10%, nearly twice the rate of
inflation since 1993. The average annual cost of a non-interest checking account
rose to $201.94 this year. That's $16.83 a month and you don't even earn
interest!
Compare that to our U.S. Treasury Securities Cash Fund which pays daily
dividends on your entire account balance and offers free, unlimited checkwriting
privileges. Maintain the minimum balance requirement of $1,000 and you'll never
again be charged for writing checks.
If you're not already investing in United Services' money market funds,
call 1-800-US-FUNDS today to compare yields. You could be earning more for your
money.
U.S. INCOME FUND
We believe that the U.S. Income Fund is positioned to produce better
performance for its shareholders. Major economic indicators suggest a stable
economy with low inflation and an interest rate environment which is favorable
to utilities companies. Although utility stocks have made significant progress
this year, there is a good chance for near-term stock price appreciation. The
Fund's exposure to foreign utilities companies positions it to benefit from a
resurgence in the emerging markets. We are committed to a disciplined approach
of rigorously researching stocks of companies with high dividend yields and
outstanding growth prospects. We select those companies which have a proven
record of dividends and dividend growth, plus a demonstrated ability to meet the
strongest competition in a changing environment. Our team approach to managing
this Fund now includes Dr. Naijiang Zhou. He brings a strong background in the
analysis of gas, utilities and energy stocks. He has a Ph.D. in Engineering
Economics, a Master of Business Administration degree and a Bachelor of Science
in Petroleum Engineering. Ralph Aldis, Director of Research, is the team leader
for the U.S. Income Fund.
The U.S. Income Fund's holdings are focused in top-notch electric and water
utilities, natural gas transmission and distribution, and telephone services.
U.S. REAL ESTATE FUND
[GRAPHIC: Photograph of front cover of prospectus wrap: Construction scenes,
power towers and lines]
Despite lagging behind the stock and bond markets in 1995, we believe real
estate stocks are strongly positioned for the future. Real estate fundamentals
continue to strengthen in most of the major property and geographic sectors of
the country, resulting in higher property values, higher cash flows and
diversification opportunities. High-quality real estate investment trusts
(REITs) should continue to produce capital appreciation through profitable
acquisitions and income-producing enhancements to existing properties.
Timothy Reynolds has been appointed team leader of the U.S. Real Estate
Fund. Prior to joining United Services in June 1995, Tim managed a real estate
investment trust and debt securities for another investment advisory firm.
U.S. ALL AMERICAN EQUITY FUND
[GRAPHIC: Photograph of front cover of prospectus wrap: Statu of Liberty,
Federal office building]
The U.S. All American Equity Fund provides an easy way for you to invest in
the growth, diversity and prosperity of some of America's largest companies.
Many of the products and services you use on a daily basis are made by companies
held in the Fund's portfolio. The Fund, for example, invests in the Walt Disney
Company, Gillette, Johnson & Johnson, the Kellogg Company, Motorola and
McDonald's. Top Ten Holdings as of 11/21/95
1. AT&T
2. General Electric
3. Exxon
4. Coca-Cola
5. Philip Morris
6. Merck & Co.
7. First Data
8. Royal Dutch Petroleum
9. Wal-Mart Stores
10. IBM
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QUESTIONS FROM SHAREHOLDERS
IS A NOTARIZED SIGNATURE THE SAME AS A "SIGNATURE GUARANTEE"?
No. When a financial institution guarantees a signature, it is held accountable
for that verification; a notary public is not held accountable. A valid
signature guarantee may be obtained from:
1. a trust company
2. a commercial bank or a savings and loan association which is affiliated
with the Federal Deposit Insurance Corporation (FDIC)
3. any member firm of a domestic stock exchange
4. a Federal credit union
The guarantor must use a stamp which states "SIGNATURE GUARANTEED" and the
name of the financial institution. An officer of the institution must sign the
guarantee.
Occasionally, United Services will require a signature guarantee for some
redemption requests, changes of account registration and other special
transactions. For example, we require a signature guarantee for redemptions that
will be sent to an address other than your address of record. It is always a
good idea to check with an Education & Service representative for specific
instructions.
WHY IS MY FUND NOT LISTED IN THE NEWSPAPER?
With over 7,000 mutual funds in the market, most newspapers don't have enough
space to list them all. Each newspaper determines its own guidelines for which
funds to list. Most use the size of the fund as the criteria. Some will list
smaller funds, if their readers specifically request them. So, if you've been
looking for a certain United Services Fund and can't seem to find it, call the
business editor of your newspaper. It can only help! Don't forget, you can
always call 1-800-873-8637 for daily share prices.
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NEWS FROM SHAREHOLDER SERVICES
DID YOU KNOW?
* You can easily pay bills from your United Services money market fund using our
Automatic Recurring Payment Plan.
* You can send your paychecks directly to your money market fund through
allotments or direct deposits.
* You can order checks by telephone for your money market funds. Call an
Education & Service representative to place your order.
DO YOU KNOW YOUR PIN?
Your account information is now available 24 hours a day. And it's just a
toll-free phone call away. The first time you access our automated account
information system, your Personal Identification Number (PIN) will be the last
four digits of your Social Security number. After you initially access the
system, you should change your PIN to something other than your Social Security
number. For added security, you can change your PIN at any time.
AUTOMATED ACCOUNT ACCESS POCKET REFERENCE
1. Dial 1-800-873-8637.
2. Select option
3. Enter your 13-digit account number.
4. Enter your PIN.
5. Listen to your balance information.
6. Select an option.
OPTIONS:
1 Last 3 checks cleared
2 Status of specific check
3+1 Last 3 purchases
3+2 Last 3 redemptions
3+3 Last dividend
4 Information on another account
5 Speak with an account representative
6 Change your PIN
* To return to the main menu
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HELPFUL INFORMATION
If you're planning to relocate, please notify us in writing within 30 days of
your move so that you will continue to receive your account statements in a
timely manner.
If you have changed your address within 30 days of requesting a redemption, a
signature guarantee will be required of all account owners.
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GUEST COMMENTARY
By Robert C. Carlson
[GRAPHIC: Photograph of Robert C. Carlson]
Taxes can make you rich. They are your largest expense, so taxes also are
your greatest source of potential savings and additional wealth. Every dollar of
taxes that you save on your investment income and gains increases your after-tax
return and multiplies your wealth. Here are the best ways for mutual fund
investors to cut taxes on their investments and boost after-tax wealth.
LET CAPITAL GAINS COMPOUND TAX-DEFERRED. Capital gains taxes can take away
about a third of your gains. In taxable investment accounts, you should avoid
selling mutual fund shares because of market fluctuations. Decide on your
portfolio allocation and hold your investments through thick and thin. If you
picked good funds and the U.S. and world economies continue on their historic
growth paths, you'll have more after-tax wealth than mutual fund switchers.
USE TAX-DEFERRED ACCOUNTS WISELY. Many people follow the general rule of
putting income investments into tax-deferred accounts and growth or capital gain
investments in taxable accounts. The reasoning is that capital gains get
favorable tax treatment but interest and dividends are taxed as ordinary income.
Here are two situations in which you should put growth investments in
tax-deferred accounts and income investments in taxable accounts.
* If you hold mutual fund shares for less than a year and sell them, there
is no tax favored treatment. Your short-term gains are taxed as ordinary income,
at rates of up to 40%. If you are a fund trader who tends to hold equity funds
for less than a year, your wealth will compound much faster if the funds are in
a tax-deferred account than if you pay taxes on the gains each time you sell.
* Tax-deferred accounts also are attractive for your growth investments
when the return on those investments is substantially above the return on income
investments. If your income investments are returning 6% and your growth
investments are returning 15%, the power of tax deferral is wasted if it is used
on a 6% investment instead of a 15% investment.
When capital gains are withdrawn from a tax- deferred account, they are
taxed as ordinary income. My research shows that tax-deferred compounding is so
powerful that, even after paying taxes on withdrawals at ordinary income rates,
you still end up with more after-tax wealth than if you had held the same
investments in taxable accounts.
The key is time. You have to let money grow in the tax-deferred accounts
for 10 years or more. The higher your return, the more advantageous tax deferral
is and the less time you need to let the gains compound. That's why I encourage
people to make IRA contributions, even non-deductible ones. The long-run payoff
is still substantial.
USE LOSSES AGGRESSIVELY. Every investor has some losers. Even the best
admit their stock picks are wrong about a third of the time. Try to make the
best of a bad thing and turn your loss into something of an asset. For example,
if you take a capital gain this year, search your portfolio for losers to sell.
Capital losses offset capital gains on a dollar for dollar basis.
Even if you don't have any capital gains to offset, you might be better off
selling losing investments. Up to $3,000 of capital losses can be deducted
against income other than capital gains. And any excess losses can be carried
forward to future years until all of the losses have produced tax benefits. It
is not as good as making a winning investment, but it saves you tax dollars and
lets you invest the sale proceeds in a new investment with better prospects.
Too many investors focus only on pre-tax returns, then end up giving away a
lot of their wealth in extra taxes. By focusing on tax strategies as part of
your investment strategy, your wealth will grow much faster.
Robert C. Carlson is an attorney, CPA and author of TAX WISE MONEY STRATEGIES
(Carroll & Graf, New York; $14.95), from which this article is adapted. He also
is editor of the monthly newsletters TAX WISE MONEY and RETIREMENT WATCH.
- --------------------------------------------------------------------------------
IRA NEWS
Have you stopped contributing to your IRA because you can no longer deduct your
contribution? So often, people reach a certain income level and find that they
can only take a partial IRA tax deduction or no deduction at all. Because they
presume that tax deduction is the biggest benefit of an IRA, many people think
there is no longer a reason to contribute. Nothing could be further from the
truth.
Tax deferral, not tax deduction, is the most dramatic advantage an IRA
offers. Even if you cannot deduct your IRA contributions, you still benefit from
the power of compounding. Unfortunately, by not participating in an IRA, so many
people deny themselves this tremendous benefit.
Compare the value of a non-deductible IRA versus a taxable investment.
<TABLE>
<CAPTION>
NON-DEDUCTIBLE IRA VS. TAXABLE INVESTMENT
After 20 Years After 30 Years
-------------- --------------
<S> <C> <C>
Taxable ......................... $ 89,838 $209,960
Investment
IRA ............................. $101,924 $277,359
</TABLE>
Other investments have various purposes (saving for a home, for example),
but retirement plans serve just one purpose: to help you invest today for a
secure retirement in the future. It is such an important goal that lawmakers
decided that you wouldn't have to pay taxes on the money your retirement plan
earns. The income generated by your IRA is not taxed until you withdraw your
funds, so your earnings compound and grow tax-deferred. Instead of being eroded
by taxes, your retirement wealth accumulates tax free. Once you begin removing
your money from your IRA at retirement, you will pay taxes, but most likely at a
lower tax rate because your income will be smaller.
And don't forget about other retirement options that may be available to
you. If your company has a 401(k) plan, take full advantage of it. Many
companies will even match their employees' contributions 50 cents for every
dollar. For self-employed individuals or small business owners, you may
participate in a SEP-IRA or a Salary Deferral SEP (SARSEP). Or, you may choose
to set up a profit sharing plan, money purchase plan or a combination of the two
for your small business. All of these retirement plans offer the same tremendous
benefit as your IRA- tax-deferral and the power of compounding.
Maximize all your options so that you can get the most out of your
retirement years. Participate in any and every tax-deferred vehicle you can. It
is up to you to fund your retirement. Don't rely on the government or your
employer.
If you have questions about IRAs or any other retirement plans (SEP,
SARSEP, 401(k), 403(b), profit-sharing, or money purchase), please call
1-800-US-FUNDS. Our Education and Service representatives will be happy to
assist you as you plan for your retirement.
ATTENTION IRA SHAREHOLDER
* Remember that IRA custodial fees are due on December 29, 1995. If you elect to
pay your fees in advance, please make your check payable to Security Trust &
Financial Company (the custodian for United Services' IRA accounts) and include
your account number(s). IRA custodial fees are $10 per active account, per year.
If your check is not received in our office by the deadline, the fees will be
automatically deducted from your IRA account(s).
* If you are turning 70 1/2 this year, it's time to begin taking the required
minimum distribution on your IRAs. Please contact us prior to April 1, 1996.
The SHAREHOLDER REPORT is published four times a year by United Services Funds
as a service to our shareholders. Please send any comments, suggestions or
questions to: Editor, Shareholder Report, United Services Funds, P.O. Box
781234, San Antonio, TX 78278-1234.
Susan Icke, Editor
Mark Talbot-Kelly, Creative Director
[FOR A FREE FACT KIT CONTAINING MORE COMPLETE INFORMATION, INCLUDING CHARGES
AND EXPENSES, CALL 10800-US-FUNDS.
READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
This message appears at the bottom of each of the six pages of the newsletter.]
