In Brief

By Julie Rawe

IPO UPDATE Internet IPOs are sexy, but remember: stock prices tend to get the biggest boost on Day One, before most small investors can jump in. Nontech IPOs are an alternative, though this year's offerings have been lackluster. That may change, or at least get interesting, when Martha Stewart and World Wrestling Federation go public this month.

THIS YEAR'S IPO AVERAGES*

Internet-related stocks

[up] 111% From offering price [up] 23% From first-day closing price

Nontechnology stocks

[up] 11% From offering price [down] 2% From first-day closing price

*Through 8/28/99 Source: Renaissance Capital

ONLINE OVERKILL Researchers at UC-Davis, using six years' worth of data, studied the behavior of some 1,600 investors who switched from phone-based to online trading. Prior to the switch, these investors had beaten the market by more than 2%. Overconfidence may explain why they traded more aggressively online and wound up trailing the market by more than 3%.

ANNUITY MAKEOVER Variable annuities often come with high fees that negate the benefits of tax-deferred growth. But some companies are revamping these retirement plans by offering no-load annuities (i.e., no penalties for early withdrawal) and trimming total expenses. TIAA-CREF now charges .37%, an industry low. Despite these improvements, you should max out your IRA or 401(k) before considering an annuity. The money you put in isn't tax deductible, and earnings will be taxed as ordinary income rather than as capital gains.

--By Julie Rawe