Pair Enjoy Investing; New Goal Is to Enjoy Living : A Matter of Choices

The Money Make-Over feature was inaugurated with The Times’ Wall Street, California pages last year with the idea that real-life experience would be a powerful teacher, and that the professional advice offered in each case could benefit the public as much as the individual or couple directly involved.

Make-Over subjects have been a diverse group facing varied challenges. For some, it was overspending or unrealistic goals or career setbacks or family situations. For others, it was an investing style that was too risky or too cautious or not diversified.

With today’s end-of-year report, The Times revisits five Money Make-Over subjects to see how they responded to financial planners’ advice and whether they profited from it.

The Coopers and Rhoni Smith faced significant debts but were fortunate enough to have fate come to their aid. Jackie Motobo and couple Dan Robertson and Steve Schullo were diligent savers whose portfolios needed a few adjustments, and who feel they are better off today for having taken some of their planners’ suggestions. For Sydney Kamlager, the problem was a lack of discipline, but she now has a better idea of where her money is going.

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Dan Robertson and Steve Schullo spend a lot of time tinkering with the $561,000 they have invested in no fewer than 30 mutual funds.

But don’t take that to mean they’re obsessed with money. Investing is just something they happen to enjoy, as they do travel, volunteer work and being together.

The two men, PhDs who have been together 22 years, were the subject of a Money Make-Over about a year ago. At the time, they had about $460,000 in 24 mutual funds and were concerned about protecting their assets should there be a market correction.

On the advice of registered investment advisor Steve Kelton of West Los Angeles, who thought their all-stock-fund portfolio was too risky, they modified it, adding some types of funds they weren’t invested in before.

Their nest egg had been heavily weighted in funds holding U.S. large-company stocks. They moved out of some of those and into international stock funds such as Janus Overseas (less than 5 years old; [800] 525-8983) and Papp America Abroad (five-year average annual return: 18.9%; [800] 421-4004), and small-cap funds such as Neuberger & Berman Genesis (five-year average annual return: 19.5%; [800] 877-9700).

Kelton had advised a bond fund, but, said Robertson with a laugh: “I’m just 56. I’m gonna be here for 30 years. I can’t go old and crybaby [in] bonds.” Seriously, though, Robertson said he might look into that next year.

Still, the stock fund choices the pair have been making since consulting with Kelton have been lower-risk and value-oriented. “Any moves we’ve made have been toward less risk,” Schullo said.

Overall, perhaps, but they have begun investing a tiny portion of their nest egg in some individual company stocks such as Microsoft Corp. and Union Carbide Corp.

When stocks went through their wild gyrations last fall, Schullo, 50, and Robertson, 56, said they both checked on their investments many times then but “held tight.”

In regard to estate planning, the pair already had most arrangements in place, but they did take the planner’s advice and added their real estate and mutual fund holdings to their revocable living trust.

Robertson notes that he now receives domestic-partner health benefits through Schullo’s workplace, the Los Angeles Unified School District, where Schullo is a third-grade teacher. These will continue for both into retirement.

Although Robertson and Schullo like luxuries, they hadn’t been allowing themselves many, they said. They’ve since decided it’s time to enjoy some of their money. They treated themselves in April to a $9,000 European cruise aboard the Queen Elizabeth II luxury liner.

They were good to themselves and their family and friends at this Christmas, spending more this year than last year. They also threw a holiday party for the employees of Van Ness House, a gay and lesbian addiction recovery program where Robertson works.

But in no way was their spending extravagant, although it was just a bit more than they had planned on.

“My rule is no Christmas debt on Jan. 1,” Robertson said in early December. “You can spend, but you can’t owe.” Well, they came close on that one, anyway.

Schullo and Robertson have made several resolutions for the new year, but the most important one is this: to lead full lives.

“We can have fun, and romance, and save money too,” Roberston said. “That’s what we hope for in 1998.”