What exactly is the USA Account™?

• The service makes it possible for virtually anyone to invest in a widely diversified portfolio of high-quality U.S. companies—whether or not the company itself sponsors a direct investment plan (DRIP).
  
  
• This gives smaller investors the capability to invest in such companies as Cisco Systems and Microsoft—companies that don’t provide a way to invest without paying brokerage commissions. It also enables small investors to bypass the high fees charged by the transfer agents of some companies that do offer DRIPs.
  
  
• The service affords low-cost access to 360 high-quality U.S. companies and accepts investments of as little as $25.
  
  
• Shares are aggregated and purchased in street name. They are purchased weekly.
  
  
• Individual accounts are held in book entry form on Temper’s books. Temper is a member of the NASD and is insured by SIPC.
  
  
• There is no requirement to maintain a balance in the account.
  
  
• The service is flexible.
  

For those customers who would like to establish large portfolios and make frequent investments, there is a membership option that allows no-cost buys—and includes an online advisory publication. Members pay no commission for investing or reinvesting dividends. There is a small commission on sales.

Another option is available for those customers who intend to establish smaller portfolios or invest less frequently. These nonmember customers may take advantage of a simple brokerage account and pay a small commission for each cash investment. No commission is charged for reinvesting dividends. There is a small commission on sales.

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How does the customer benefit?

• Customers pay very low commissions, or no commissions, to buy shares. The commission for sales is small.
  
  
• The service provides a monthly consolidated statement of all customer holdings, which includes end-of-year tax information.
  
  
• Customers may transfer in shares they already own if the company is offered through the service.
  
  
• Customers can employ a strict dollar-cost averaging strategy. Although there is no requirement to do so, customers may authorize systematic debits from their bank accounts to invest in companies according to their instructions. The commission for the purchases is either very small or (for members) nonexistent.
  
  
• Customers can order automatic investments on any basis they wish, weekly, biweekly, monthly, or quarterly—as long as their account is fully funded. (They may communicate their orders once or twice a month.)
  
  
• Customers have access to their account information online.
  
  
• The minimum investment accepted for any company is $25 for members and $50 for nonmembers. However, customers who are required to pay a transaction fee are advised to invest at least $100 in order to minimize the effect of the fee.
  

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How are orders executed?

• Customers may authorize automatic debits from their accounts on a monthly or bimonthly basis through our unique AUTOBUY service. They may also send checks to fund their bank accounts.
  
  
• Open orders are executed on a fixed date each week. Orders must have been received with payment at least 24 hours before the investment date—otherwise, the order will be executed on the following week’s investment date.
  

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What companies are available?

• The companies offered may or may not have DRIPs of their own. Companies with DRIPs also are included if the plan imposes high fees.
  
  
• A list of companies available through the plan is available at this Web site or you can request the list from our office. In the meantime, if sufficient interest is expressed in a company, that company will be added to those offered. Please let us know which companies you would like to see offered.
  

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How much will it cost?

• Account setup charges: There is no setup charge for subscribers to any MP publication or for customers who choose the membership account option.
  
  
• Portfolio setup charges: Both membership-account and brokerage-account customers pay a one-time enrollment charge of $3 for each company added to their portfolios. No $3 setup fee for minors.
  
  
• Membership: The cost of membership is $199 annually. Payment is due with the application for membership. Renewals of memberships will be due at the end of the anniversary month.
  

Members are given an authorization number that entitles them to use the brokerage service with absolutely no commissions on the buy side. They also receive a monthly online publication that focuses on the stocks available through the USA Account.

Members may invest in as many companies as they wish. They may make one or two investments in each company each month. There are no fees or commissions associated with their investments or the reinvestments of dividends.

• Brokerage account customers (nonmembers): USA Account customers pay a $2 commission for each investment. They may invest in as many companies as they wish on a monthly or bimonthly basis. There is no charge for reinvesting dividends.
  
  
• Customers investing in accounts for the benefit of minors pay only $1 commissions.
  
  
• Customers may deposit shares of the eligible companies into their account.
  
  
• Shares are sold for a transaction charge of $10.
  
  
• The cost to certificate shares is $15.
  

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