IRA Ideal!
Defined Asset Funds[SM]
Select Series
The 1998 Domestic Year-Ahead Portfolio
[ML logo] Merrill Lynch
1998 is a new year....It's time for fresh thinking, and a renewed focus on your
investment portfolio.
It's time to think ahead. The Merrill Lynch -- Defined Asset Funds (SM) Select
Series 1998 Year-Ahead Portfolio can help you get the coming investment year
into focus.
Make your resolution to think ahead.
An investment strategy should never be static. As your life changes, so should
your portfolio. That's why at Merrill Lynch, we believe in the importance of
on-going communication between you and your Financial Consultant. Will
your investment goals be the same next year? How about your tolerance for
risk and your time horizon? Your Financial Consultant will be happy to
help you think ahead by analyzing these important questions, and coming up
with informed solutions.
The Portfolio
The Defined Asset Funds (SM) 1998 Year-Ahead Portfolio seeks capital
appreciation by investing for approximately one year in a Portfolio consisting
of U.S. common stocks. The Portfolio was selected for potential growth in
1998 by the Merrill Lynch Global Research and Economic Group.
The Select Strategy
Like each Portfolio in the Defined Asset Funds Select Series, the 1998 Year-
Ahead Portfolio follows a "Buy and Hold" strategy of investing for
approximately one year according to a stated investment objective. After one
year, a new Portfolio is researched and compiled based on a similar selection
process. You can reinvest your earnings into the new Portfolio annually, if
available, or you can redeem your investment.
Is the 1998 Year-Ahead Portfolio Right for You?
If you investment goal is capital appreciation, without concern for current
income, the 1998 Year-Ahead Portfolio may be an appropriate choice. Although
this is a one-year Portfolio, it is designed to be a part of a longer term
investment strategy. We believe more consistent results are likely if the
Select Strategy is followed for at least three to five years.
Select Domestic Year-Ahead Portfolio -- 1998
<TABLE>
<CAPTION>
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Company Symbol Description
<S> <C> <C>
Bank of New York BK Provides a variety of banking and related
Company, Incorporated services to individuals and corporations
worldwide.
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Chubb Corporation CB Chubb provides property and casualty
insurance and real estate development
throughout the U.S., Canada, Europe,
Latin American and Asia Pacific.
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Comcast Corporation CMCSK A communications company with
domestic and international interests in
cable TV, wireless and wireline
communications.
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Cracker Barrel Old Country CBRL Owns and operates 319 country store
Store, Incorporated restaurants throughout the U.S.
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Delta Air Lines, DAL Major air carrier providing air
Incorporated transportation for passengers, freight and
mail to locations throughout the U.S. and
abroad.
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DST Systems, Incorporated DST Provides information processing and
computer software services to banks,
mutual funds, insurance companies and
other financial service industries.
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Fannie Mae FNM Federally chartered, private corporation
that purchases both government-backed
and conventional mortgages from lenders
to facilitate housing ownership for low-to
middle-income home buyers.
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Guidant Corporation GDT Designs, develops and manufactures
products used in cardiac rhythm
management, coronary artery disease
intervention and other minimally invasive
surgery. Its products are marketed to
hospitals, doctors and specialists in the
U.S. and abroad.
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Masco Corporation MAS Manufactures building, home
improvement and consumer products
which include faucets, specialty bath
items, kitchen and bath cabinetry, ranges
and refrigerators. Masco also provides
the installation of insulation and other
building products.
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Office Depot, Incorporated ODP Operates 582 office product warehouse
stores in the U.S. and Canada. Office
Depot sells branded merchandise and
provides business services primarily to
small and medium-sized businesses as
well as the home office market.
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Pfizer, Incorporated PFE Produces ethical drugs, hospital products,
consumer products and animal health
items. Products include "Zoloft"
antidepressant, "Zithromax" antibiotic,
"Aricept" for Alzheimer's disease and
"Lipitor" for high cholesterol.
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Protective Life Corporation PL Produces, distributes and services a
variety of insurance and investment
products through its subsidiaries.
Products include individual life insurance,
dental insurance, group life/health
insurance and annuities.
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Questar Corporation STR This holding company explores, produces,
gathers, purchases, transmits, markets,
stores and distributes natural gas. Questar
also produces and sells oil, provides data
processing and manages real estate.
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Tenet Healthcare THC Through its subsidiaries, Tenet owns and
Corporation operates 130 acute-care hospitals and
numerous related health-care services
throughout the U.S.
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</TABLE>
Merrill Lynch Research: A Reputation for Excellence
With more than 400 equity research analysts globally, Merrill Lynch has earned
its reputation as a world-class research organization. Its Global Research
team provides in-depth coverage of more than 2,000 companies in 53 countries
worldwide.
Defining Your Risks
The following are important facts to keep in mind when considering this
investment for your portfolio. Please read them carefully. Your Merrill
Lynch Financial Consultant will be happy to answer any questions you may
have.
o The Portfolio is designed for investors able and willing to assume the
risks generally associated with equity investments.
o The Portfolio is not appropriate for investors seeking preservation of
capital or high current income.
o There can be no assurance that the Portfolio will meet its objective.
o The value of your investment will fluctuate with the prices of the
underlying stocks. There can be no assurance that stock prices will
not decrease. Generally, dividends and any gains will be subject to
tax each year. Capital gains, if any, on assets held over a year will
be taxed up to the maximum federal tax rate of 28%.
o With major U.S. equity indices at all-time highs, it is important to
be aware that short-term market movements may have an impact on your
equity portfolio. Your Merrill Lynch Financial Consultant will be
happy to discuss these issues with you.
Tax Reporting
The proceeds received when you sell this investment will reflect the deduction
of the deferred sales charge and the charge for organizational expenses. In
addition, the annual statement and the relevant tax reporting forms you
receive at year end will reflect the actual amount paid to you (net of the
deferred sales charge and the charge for organizational expenses).
Accordingly, you should not increase your basis in your units by the deferred
sales charge and the charge for organizational expenses.
Defining Your Cost
Low Initial Sales Charge/Reduced Charge for Rollovers
First-time investors pay an initial sales charge of about 1% when they buy.
All investors pay a deferred sales charge of 1.75% per 1,000 units, deducted
in each of the last ten months of the Portfolio ($17.50 total).
As a % of
Sales Public Offering Amount per
Charges Price 1,00 Units
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Initial Sales Charge 1.00% $10.00
Deferred Sales Charge 1.75% $17.50
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Maximum Sales Charge 2.75% $27.50
Estimated Annual Operating Expenses
(as a % of net assets) 0.25% $2.56
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If you sell your units before termination, the remaining balance of your
deferred sales charge is deducted, along with the estimated costs of selling
Portfolio securities. If you roll over to a successor Portfolio, if
available, the initial charge is waived. You only pay the $17.50 deferred fee
and operating expenses.
Volume Purchase Discounts
For larger purchases, the overall sales charges are reduced to put more of your
investment dollars to work for you.
Amount Total Sales Charge as a % of the
Purchased Public Offering Price
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Less than $50,000 2.75%
$50,000 to $99,999 2.50%
$100,000 to $249,999 2.00%
$250,000 to $999,999 1.75%
$1,000,000 or more 1.00%
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The Time To Think Ahead Is Now!
Call your Merrill Lynch Financial Consultant for a free prospectus containing
more complete information, including all charges and expenses. Read it
carefully before you invest.
Information contained herein is subject to amendment. A registration
statement relating to the next Year-Ahead Series has been filed with the
Securities and Exchange Commission. The securities of the new offering may
not be sold nor may offers to buy be accepted prior to the time the
registration statement becomes effective. This brochure shall not
constitute an offer to sell or the solicitation of an offer to buy nor
shall there be any sale of these securities in any state in which such an
offer, solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such state.
Other Merrill Lynch Research-Based Funds
1998 Year-Ahead International Portfolio
Focus on Financials Portfolio
Other Select Series
Select Ten Portfolio (DJIA)
Hong Kong Portfolio (Hang Seng Index)
Japan Portfolio (Nikkei Index)
United Kingdom Portfolio (Financial Times Index)
Select Growth Portfolio
Select S&P Industrial Portfolio
Select S&P Intrinsic Value Portfolio
Select Standard & Poor's Industry Turnaround Portfolio
Equity Investor Funds Concept Series
Premier American Portfolio
Premier World Portfolio
Real Estate Income Fund 2
Tele o Global Trust 2
Equity Investor Funds Index Series
S&P 500 Index Trust 2
S&P MidCap Index Trust
Other Defined Asset Funds
Corporate Income Funds
Government Securities Income Funds
International Bond Funds
Municipal Investment Funds
11572BR-12/97
[Copyright logo] 1997 Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Member SIPC.
