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Dear Mr. Berko:

Dear B.H.:

That’s a good plan, but I don’t agree with you about the economy. I think interest rates are very likely to move much higher in the coming 18 months. Meanwhile, some sections of the economy may begin to recover late this year, but most sectors will be stuck in the muck until late 2010. However, the following six issues are among the best of the worst.

Prudential Financial Inc. (PRU-$18), with $600 billion in assets, provides life insurance, annuity products, retirement services, mutual funds and real estate services to 50 million individual, institutional and international accounts. In 2008, PRU had $25 billion in revenues and earned $3.45 a share. In 2009, Value Line expects earnings to come in at $5.45 a share. So consider the Prudential Financial 9 percent notes due in 2068 (PHR-$15.85), which pay a $2.25 annual dividend and yield 14.2 percent.

Torchmark Corp. (TMK-25.22) in 2008 recorded $3.5 billion in revenues providing life insurance and supplemental health coverage via its subsidiaries. TMK earned $5.85 a share in 2008, and Wall Street expects earnings of $6.30 per share in 2009. So consider owning the Torchmark Capital Trust III 7.10 percent preferred (TMK/A-$16.90), paying a $1.75 dividend yielding 10.4 percent.

MetLife Inc. (MET-$21.50) is the largest life insurance company in the United States, with $3.5 trillion of insurance in force. Total gross income in 2008 was $53 billion from 13 million U.S. households plus operations in 35 countries. In 2008, MET earned $3.75 a share and the consensus of five analysts on the Street expects 2009 earnings of $3.71 a share. So look at the MetLife 6.50 percent non-cumulative preferred B shares (MET-B-$14.59) paying a $1.625 dividend that yields 11.1 percent.

Unum Group (UNM-$11.76) is a leading provider of group and individual disability insurance in the United States and the U.K., and a major provider of employee benefits. In 2008, UNM earned $2.50 a share, and the consensus of 13 Wall Street insurance analysts is that UNM will earn $2.63 this year on $10.7 billion of income. So consider the 7.5 percent Unum Group corporate-backed trust certificates (KVN-$14.49), which pay a $1.875 annual dividend and yield 12.9 percent.

Reinsurance Group Of America (RGA-$31.11) is a holding company engaged primarily in life reinsurance in North America. Gross revenues in 2008 were $6.5 billion and RGA earned $6.20 per share. Charles Schwab expects RGA to earn $6.07 per share in 2009, and Value Line suggests earnings of $6.65. So look at the RGA 5.75 percent Capital Trust maturing in March 2051 (RGA-A-$40.25); it pays $2.88 per share and yields 7.2 percent.

Finally, General Electric Co. (GE-$9.93) is a $185 billion diversified technology, media and financial services company. In 2008, GE earned $1.25 a share and the Street’s consensus of 15 analysts suggests 2009 earnings will come in at $1.29 per share. So I’m comfortable owning the General Electric Capital Corp. 6.625 percent public income notes (GE-A-$20.39), which pay an annual dividend of $1.66 per share and yield 8.1 percent.

Please address your financial questions to Malcolm Berko, P.O. Box 1416, Boca Raton, Fla. 33429 or e-mail him at malber@adelphia.net. © Copley News Service