Indianapolis Recorder, Indianapolis, Marion County, 13 December 2002 — Page 24

THE INDIANAPOLIS RECORDER

FRPAY, DECEMBER 13,2002

PAGE 02

Seven money skills of extremely prosperous people

Why do some people earn 10 times more money in their lifetime than the rest of us? Do they -work 10 times harder? "People who are wealthy do not necessarily work harder to earn their money. They work smarter with the money they have,*says Mark Victor Hansen, coauthor of The One Minute Millionaire, “You, too, can be a millionaire ifyou take good care of your money and make good decisions with the money you have." Hansen, coauthor of Chicken Soup for the Soul, joined fellow bestselling author Robert G. Allen (Nothing Down and Creating Wealth) to write The One Minute Millionaire, which has been called a revolutionary approach to building wealth. ' The bottom line is ihat wealthy people don’t necessarily work harder than the rest of us. They aren’t necessarily smarter either. Wealthy people are good at the seven following money skills, which anyone can learn. COVahie Wealthy people value each dollar as a money seed. They know that a dollar can grow into a million dollars, so they’re respectful of every dollar they spend. (2) Control

They control their money ingyou howto dramatically indown to the last penny. Pros- crease your earning power. (

perous people take a few extra (6) Shield

steps every time they spend Wealthy people protect money: l)Theyshopfbrthebest themselves with trusts, corpovalue, 2) They ask for and ex- rations, limited partnerships, pect a discount, 3) They exam- LLCs, and other legal entities, ine their receipt for mistakes, 4) In truth, you don’t want to be a They attempt to turn each ex- millionaire, you want to live penditure into a legitimate, tax- like a millionaire but have only deductible business expense, 5) a few assets in your name.

They balance their checkbook (7) Share it

to the penny, and 6) They file Wealthy people are very gentheir receipts upon returning to erous, donating at least 10 pertheir home or office. These hab- cent of their income. They units take only a few extra min- derstand that money multiplies utes, but they help build long- festest when it’s divided. When term financial peace of mind, you share freely, you prime the (3) Save pump of the universe. EstabWealthy people love to save lish a legacy that will outlive money by spending wisely, but you. Plant money trees from they don’t stop there. They save which others will harvest the

at least 10 percent of what they fruit

earn. The book says it will teach (4) Invest you a new approach - a lifeWealthy people have a sys- changing “millionaire system” tern for investing their money, that will teach you how to creContact a reputable investment ate wealth, grow wealth, overadvisor to help you putyoursav- come financial fears, and learn ings into different types of in- habits that will build wealth vestments. The money should over the long term, beautomaticallydeductedfrom Forafree“OneMinuteMilyour bank account, so you never lionaire” exercise that will

forget.

(5) Bam Prosperous people have multiple streams of income outside their main job. The One Minute Millionaireis dedicated to show-

deepen your understanding of how to achieve wealth, visit wwwxmerninutemiDionaire.com.

Distributed FeatureSource.com.

Crystal balls and tarot cards or where are stocks heading next?

By J. THOMAS MADDEN Special fa tht Rscariar

skeptical about economic

growth right now.

(WMNS)-Nice, attention- Thing Two is the forecast getting headline, but we don’t for corporate earnings, since know the answer, and neither current and future earnings does anyone else. However, tend to be the basis for stock we can suggest a couple of valuations. According to items to watch - things that Thomson Financial/First Call, historically have been pretty 0 n April 1,2002 estimates were reliable in forecasting the fa- that third-quarter earnings ture direction of the stock would rise by 20 percent for market. s&P 500 companies. Now, the These are two of the most forecast is for an increase of important things analysts at only around 8.5 percent Investment Management Even in the third year of a Federated Investors Inc. bear market, average stock study as they wrestle with prices remain at very high multheir continuing forecast that tiples relative to earnings and the economy is not headed for other key measures. In addianother bout of recession. tion business spending, which Thing One is the yield on is critical to growth, has been U.S. Treasury debt - the notes kept in check. Businesses have and bonds the government is- yet to grow into the excess casues. Investment profession- pacity created in the1990s, and als see these yields as a sort of demur farther given uncersurrogate, a way financial tainty over geopolitical develmarkets handicap the outlook opments -particularly as those for economic growth. Trea- developments concern Iraq, sury yields tend to go up when The big offset has been the the economy is booming and consumer, whose spending stock values are rising. And kept the recent recession mild those yields go down when fi- and jg fading what growth we nancial markets are con- have. And consumers continue cerned about growth pros- to slam down the plastic. Ofpects and stocks are perform- ten that spending is funded via ing poorly. Well, the handi- low-interest refinancings of cappers continue to be pretty home mortgages or home eq-

uity loans at rates which show no sign of moving back up in a significant way. This refinancing activity has touched virtually every income group. Robust sales in the auto, housing and durables sectors suggest that the American consumer isn’t gloomy enough to retrench. But how much more can we expect of this group? Consumer spending may keep things from getting worse, but we don’t see it as a catalyst to propel the economy forward. Federated remains modestly bullish on stocks. While the chances of renewed recession probably have increased over the past few months, this is not the most likely scenario. We think the odds-bet is for an increase in growth, although stocks could be characterized by backing and filling at or above current levels through year-end. So, in the meantime, watch the yield curve. Watch earnings estimates.

J. Thomas Madden is vice chairman of Investment Management Federated Investors Inc. Distributed by Wealth Management News Service.

WORKING DURING THE HOLIDAYS Paychecks and Social Security checks

By JOSEPH H. EVERETT

“Welcome to Wal-Mart!” “Would you like to super-size that order?” “May I show you something in a different size?” These are some of the phrases and questions you might start practicing if you’re among the millions of Americans who take seasonal jobs during the holidays to bring in a little extra spending money. And if your paycheck will augment your Social Security check, you’ve probably got some extra questions. “Will the moneylmake mess up my Social Security check?” “Do they take Social Security taxes out of my paycheck when I’m already getting benefits?” “If they do, will the extra taxes I pay increase my Social Security dieck?” The quick answers, respectively, are: no; yes; and probably not But here are the explana-

tions. The explanations given below do not apply if you are receiving Social Security disability benefits or Supplemental Security Income (SSI) benefits. There are different earnings limitations for these benefits. If you’re age 65 or older, you can make a million dollars during the holidays, and we won’t take a nickel out of your Social Security benefits. However, if you’re younger than 65, you’re stuck with some limits on your earnings. But chances are you won’t go over those limits, so you should be OK. In 2002, the earnings threshold is $11,280. For eveiy $2 you earn more than that, $1 must be withheld from your Social Security check. So unless you were working earlier in the year, your holiday earnings probably will not put you over the $11,280 limit. If you turned 65 in 2002, your earnings threshold is

$30,000 for the months before you turned 65. If your holiday work carries over into2003, a whole new clock starts ticking. The earnings threshold will go up to $11,520 effective Jan. 1, 2003. Also, the so-called “full retirementage”goes up to age 65 and two months in 2003. In other words, if you are under age 65 and two months in 2003, $1 will be deducted from your benefits for every $2 you earn over $11,520. And if you will turn age 65 and two months in 2003, your earnings threshold is $30,720 for the months before you turn full retirement age. But once you reach age 65 and two months, there is no limit on your earnings. No matter which year you are working, you will have to pay Social Security taxes on your holiday earnings. Your employer is required to withhold payroll taxes whether you’re 16 years old or 116 years old and whether you’re a Social Security recipient or not. There is a slim chance those taxes you pay and the earnings they represent could translate into

extra Social Security benefits. Here’s how that works. When your original Social Security benefit was figured, it was based on your average monthly wage using the highest earnings on your Social Security record. If the money you made during the holidays - and the rest of 2002 - raises your lifetime average monthly wage, then your benefit will be refigured and you will get any increase due. Mostpeopledon’tgetsuchan increase because their holiday earnings are just not enough to raisetheir average monthlywage. But if your extra earnings do mean extra benefits, you’ll automatically get the increase sometime during2003with payments retroactive to January. For more information, visit the Social Security Web site at www.ssa.gov or call 1-800-772-1213. If you are deaf or hard of hearing, you can call the TTY number, 1-800-325-0778.

Joseph H. Everett is a Social Security public affairs specialist in Indianapolis.

Bank One Foundation donates $45,000 to IRMSDC

Special to the Recorder

Like a good neighbor, Farm ie there.*

TO A TEENAGER

HAVING THE PERFECT HOME ISN'T AS IMPORTANT AS HAVING A PLACE TO CALL HOME

See your local State Farm Agent

The Bank One Foundation has contributed $45,000 to the Indiana Regional Minority Supplier Development Council to be used to finance the Small Business Administration Business Information Center. The Business Information Center, located in the IRMSDC building at 2126 N. Meridian St, will be renamed the Bank One Business Information Center. The grant will pay the occupancy cost of the SBA in the IRMSDC building for two years. “Small businesses are the backbone of our economy, and it’s important to support them through organizations like the Indiana Regional Minority Supplier Development Council and the Business Information Center,” said Bill Cafaro, manager of business banking for Bank One in Central Indiana. “This public-private partnership will benefit many small businesses, including minority-owned businesses in the Indianapolis area,” said Don Jones, president of the Indiana Regional Minority •Supplier Development Council. “Bank One has supported our organization • for many years, and we appreciate this new grant.” The SBA Bank One Business Information Center provides a one-stop location where current and future

small businesses can receive assistance and advice through partnerships with the public and private sector. The Business Information Center offers the latest computer technology as well as an extensive reference library of books, publications and videotapes for small businesses,” said Jan Wolfe, district director for the Small Business Administration. “At the Bank One Business Information Center, small business owners can plan their businesses, expand their businesses, or venture in to new business areas.” The primaiy mission of the Indiana Regional Minority Supplier Development Council (IRMSDC) is to educate, promote and cultivate successful minority business enterprises (MBEs) throughout the state of Indiana. The IRMSDC provides a direct link between corporate America and certified minority-owned businesses in an effort to increase business opportunities for MBEs. As an advocate for minority business, the council educates the corporate community of the important role that certified minority businesses provide with quality services and products at a competitive rate. The IRMSDC assists corporations to develop, maintain and expand their supplier diversity programs.

^v-y '»• /oong, but no# kidf. THbv • kid kir si»»o tfiny r*Aod love, no* fr ‘

Htr-y r '<od love, no* w prrWt if yoo rr* comm " • oil t, rr • ttnet fhe InrJic i A

Bownlngan. Hnow

! someone sur< *

^ 0 0"**"9 INDIANA'S '“-wne tvrouBe hey , a Tern I'OW ADOPTION INITIATIVE

J • l I F L • HOME • HEALTH

www.odoptachiid.in.qov Toll free I 8M 25 ADOPT

■m

FBI

Imagine what it’s like to finish a day’s work and know you stopped a shipment of illegal drugs from reaching neighborhood kids-stopped a spy-tracked a terrorist sr across the world-protected the environment-kept government honest-safeguarded . national and economic security.

FBI Agents do all of that and more. The FBI is made up of people from all walks cl life. We are committed to diversity in our ranks. The FBI is actively looking for men and women to become Special Agent*, lb explore a future with the world's premier law enforcement agency, visit the FBI website at WWW.FBnOBS.CQM or call the Indianapolis FBI job line at (317) 3214106. The FBI is an equal

£

it si

waUiy

PRINTING

mo

Keith Rand Joyce Rand Ownen

5410 Emerson Way, Suite 3 Indianapolis, IN 46226 Phone 256-2748 9:00 a.m. - 5:00 p.m Monday - Friday

Support your Black Presssubscribe to the Recorder

Call today 924-5143