Indianapolis Recorder, Indianapolis, Marion County, 24 October 2003 — Page 27

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Classified • Memoriams • Sports Business

D SECTION FRIDAY, OCTOBER 24, 2003

BLACKONOMICS Turning 'spending I weakness' into s $630 billion in economic power By JAMES CLINGMAN

The news keeps coming out every week. Black folks’ socalled “spending power” is on the rise, and corporate marketers are devising more u ways to take advantage of this “new-found” treasure. The latest news comes from an article in Black Enterprise (BE) magazine, “BlackSpending Power 1 Tops $630 Billion — Advertisers respond to the steadily increasing economic clout of the African- & American consumer,” by Tamara £ E. Holmes. I call it “Black spend- % ing weakness,” but let’s take an in-depth

“Black

Spending

Power Tops $630 Billion Advertisers respond to the steadily increasing

economic

clout of the

African-

ttffm

■• •'*#**

INDIANAPOLIS NEIGHBORHOOD HOUSIHG PARTHERSHIP Housing organization helps with property taxes, home buying

look at our so-called “spending

power.”

Way back in 1986, I

worked for a

Black-

owned mar-

keting firm in Chicago, and 1 remember doing a sales presenta-

tion to executives of a certain coqipany that

would, if approved, give

our firm a contract to promote , that company’s products. Of course, we specialized in market- .. ing to the Black consumer. I will never forget the attitude of one of the V.P.’s of that company. He was just passing time listening to us, probably just waiting to get back to his desk and file a report | that said he had spoken to a Black , company, thus, having done his ‘ affirmative action thing for the

year.

I will also never forget one of the questions he asked, as well as the implication of his question. He came with the preconceived notion that his company had no reason to advertise or spend dollars on a Black consumer marketing campaign, despite the consumption index of his products by Black people being three times the average amount. Why? Well, his question will enlighten you. He asked, no he t suggested through his question, £ that Black people don’t read any- ^ way, so why should he do more £ advertising and marketing. He £ also implied that since Black ! people already spend large sums ", of their money on his products " and continue to be the loyal consumers they are, it would make r no sense for him to spend money for something he is already getting free. And you know what? He was absolutely right. I was mad, but he was right. I got no contract, » and he continued to get millions » of dollars in sales from Black con- £ sumers. £ According the article in BE, s “Black people's spending repre- *• sents the margin of profitability for a number of consumer products. African Americans have the capacity to use their spending power to influence corporate decisions on employment, investment, and purchasing practices that would benefit the Black community, including Black businesses.” Oh really? Then why aren’t we using that power? The article goes on to say, ‘“More than $l.f> billion is being spent on advertising targeting African Americans hy national advertisers,”' says Ken Smikle, president of Chicago-based re- ^ search and information company ► St* POWER, Pag* D3

By ERICKA C. WHEELER Staff Writer As the Nov. 10 deadline for paying the second installment of property taxes approaches, many people find they need help to pay the bilk Enter the Indianapolis Neighborhood Housing Partnership (INHP), which has a program for qualifying persons to assist with tax bills or for those interested in buying a home. “INHP was approached by the mayor’s office to help with those who were negatively affected by the drastic increase in taxes,” said Joe Huntzinger, director of single-family lending at INHP. “This program is a refinancing program to assist those with major repai rs or with the increase in their property taxes.” Preserving the American Dream program was establ ished in early May to assist families whose income is low to moderate with the purchase of a home. There are income stipulations - a single person who makes $35,900 or less would qualify and $51,300 or less for a family income. If a person or family meets these preliminary' conditions, then an inspection of the home that they want to buy will take place. The American Society of Home Inspectors will send a licensed inspector out to check the home. The inspection is con-

Upcoming conference seeks to give minorifies keys to homeownership

► See HOME . •y'-.t ■ . .

Page 03

By BRANDON A. PERRY Staff Writer The Indianapolis branch of the National Association of Real Estate Brokers Inc. (NAREB) is planning a large-scale event that organizers say will give potential homeowners, minorities in particular, clear advice on how to avoid pitfalls associated with purchasing a new home. On Nov. 1 from 10 a.m. to 12:30 p.m. the organization will be hosting the Community Education

Forum on Fair Housing: A Call for Action. The Indiana World War Memorial, located downtown at the corner of Michigan and Meridian streets, will be the site of this year’s forum, which promises to have something for the entire family. Free parking, door prizes and entertainment for kids will be provided. Those who attend will learn how to deal with increased prop- ► See KEYS, Page D3

New tox rato should make dividendpaying stocks more allraclive

From Wealth Management News Service Earlierthisspring, President Bush signed into law the third largest tax package in United States history. The $350 billion Jobs and Growth Tax Relief Reconciliation Act of 2003 in- • troduces new rates on dividends and capital gains as well as reduced income taxes and relief for parents and joint filers among other benefits. Investors across the country' are wondering how they might benefit from the tax bill, especially its provision that lowers the tax rate on quarterly stock dividends. John Carey, portfolio manager of the Pioneer Equity Income Fund, offers some insights into the new dividend rate cuts and what they may mean for investors. Q, How does the new tax package benefit investors who own dividend-paying stocks?

A. By cutting the tax rate on dividends from the maximum 38.6 percent to 15 percent, most types of dividend paying stocks should become more attractive to a broader range of investors. Q, How might companies that pay dividends stand to benefit from this change? A. We think it is likely that this tax package could encourage companies to raise dividends or even start paying dividends. At Pioneer, we have always believed that the act of paying dividends is itself a sign of fiscal health, since it is very' difficult for a company to pay a dividend without being profitable. From a broader perspective, of course, a company that is profitable can make a stronger contribution to the preservation ofone's long-term investment assets. Dividends, especially when they have been paid for many years ► See STOCK , Page 03

CLD partners with Office Depot

Dennis Bland (left), president of Center for Leadership Development (CLD); Cheryl Reynolds, account manager for Office Depot; and Michael Cross, vice president of CLD, greet one another during a recent CLD alumni meeting. Office Depot Business Services Division teamed up with CLD to offer a special discount on office supplies at Office Depot to small business owners and more than 6,000 CLD alumni. (Photo/J. Hurst)

Monitoring your portfolio From Wealth Management News Service What if your investments are not performing as expected? How can you tell? One simple way to gauge performance is to compare your fund's total return against the performance of an index, which represents and tracks the behavior of a market segment. Mutual fund companies generally use indexes as benchmarks to measure the portfolio manager's effectiveness in meeting a fund’s financial objectives. You can also evaluate your mutual fund by comparing its performance to its peers, which are funds that share a similar investment objective with your fund. Following are a few examples of indexes and av erages that mutual fund companies may use as benchmarks: •The Dow Jones Industrial Av erage (the Dow) consists of blue-chip industrial stocks of 30 large companies. Blue-chip stocks refer to large companies with long ami generous track records. • The Standard & Poor's 500 Composite (S&P 500) is based on the average performance of500 companies that have the largest market value within their industry, and is considered a better indicator of overall stock market performance than Dow. • The 90-Day Treasury Bill is a good way to track interest rates. Treasury Bill rates, reported weekly, respond immediately to interest ratechanges made by the Federal Reserve ► See PORTFOLIO, Page D3

Black Business Profile

Full name of businevs: Ocean West Funding Address: 2557 E. 55"' Place Indianapolis, IN 46220 Phone: (317) 466-1285 (877) 848-1936

Fax:

^ (317) 466-1360 Year opened:

2003

Owner(s): Kathy McDonald, Lisa Jellison and Jim Robinson Number of paid employees:

7

Product/services: We provide a host of programs and loans for the customer. We offer Federal Housing Administration, veterans conventional, non-conforming, commercial, jumbo, one day discharge of bankruptcy, chapter 13, consumer credit counselor, and debt consolidations. Significant business advances/achievements: We are proud that we are able to provide lending services for all needs. We are able to provide funding even for furnaces and personalized appliances. We are a new company so we are proud that we are able to serve our community and other states around the country'. Future goals: Our future goals are to employ more loan officers and to empower our 44 state marketing program. We want to be able to supply our local region with the funding that they need. In the near future, we look to supply many other states with funding as it comes available. Why did you start the business and how has it grown? We started the business because we wanted to be able to provide a true lending service to buyers and homeowners. We wanted to be able to come up with realistic guidelines that are so overlooked in the industry. We have grown based on our clientele we are able to supply many of customers locally and nationally. What are some of the obstacles you faced and how did you overcome them? We were faced with being unable to find quality and sufficient office space. We were able to overcome this obstacle because Lisa, a partner, was able to find a quality building that we could afford. We are currently working out of this office. Who does your business best sen e and why? Our business best serves the new or first time homebuyer who is distressed. We also serve those who are unable to find funding or reasonable loan obligations. We help any that are interested in applying for a loan. The loan consists of many programs nationally. How has your experience helped to meet the needs of your clients? We found that most major lenders do not help consumers that may be borderline and we are here to help them overcome their problems. We help our clients to be able to develop the needs of acquiring a home loan. Where did you get the name of your company and does it have any significant meaning? We are a branch of an enterprise, which developed the name and logo for our company.

Jim Robinson

(left to right) Kathy McDonald, Lisa Jellison and Jim Robinson, all partners in the firm, conduct an early morning meeting. (Photo/E. Wheeler)

If you would like to be featured in the Recorder's Black Business Profile, call 924-5143.