Cljarlotte ^os(t
THURSDAY, JANUARY 23, 1997
:8A
STRICTLY BUSINESS
Check up
on your
investment
CHARLES ROSS
Your
Personal
Finance
Home is within reach for consumers
It’s a good idea to do periodic
check-ups on your investment
portfolio and trim dead wood.
But how do you know whether
to seU or hold on? If a stock fund
is underperforming, you should
give it a year or two. Bond funds,
however, should be given less
time to recover.
How do you determine if a
fund is underperforming?
Compare your fund with other
funds within the same category.
One reason why a fund may not
be doing well is expenses. If your
fund is charging significantly
higher fees than the average,
consider jumping to a similar
well-managed fund that is not
charging such high fees. If you’re
not sure about selling, unload
only a portion of it. But be care
ful, because a poor performer
now can suddenly come roaring
back.
IVim fast growers
If you’re looking for ways to
strengthen your investment
portfolio, consider getting rid of
some of your fastest growing
funds. It sounds craxy, but here’s
why it’s financially healthy:
Suppose your current stock
fund investment allocation is
one-third growth funds, one-
third international funds, and
one-third technology funds.
What happens if the technology
sector fund you own grows like
wildfire? It may be time to trim
it back, even if it has been a top
performer in its category. This
disciplines you to sell after a
run-up m prices and buy other
funds that may be poised to
grow. Another reason to trim
back a fast grower is to use capi
tal losses you’ve taken, or plan to
take, in a disappointing fund to
offset those gains in another.
Adjust to meet current needs
You may have bought your f
mds for many different reasons.
Perhaps you bought a fund for
its long-term growth potential to
meet anticipated retirement or
educational needs. Maybe you
bought it because of high expec
tations for the areas in which
the fund invests, or because it
was a new fund and might bene
fit from the company’s hottest
investment ideas.
If your reason for buying the
fund has changed, or no longer
exists, it may be time to sell. For
example, if you bought a fairly
aggressive fund to provide for a
child’s college education, it may
be time to sell if your child will
need the funds in less than a
year. Also, as you approach
retirement age, you should lower
the risk level in your investment
portfolio.
Add a successful fund
If you want to strengthen your
investment portfolio, you may be
See FUND on page 9A
By Jesse Cureton
SPECIAL TO THE POST
Buying your first home? Get
ready — the experience can be
one of the most exhilarating
things you’ll ever do, but it also
can be an emotional roller-coast
er. Unfortunately, many first
time homebuyers think that a
relatively low income makes
their homeownership dream
remain just that — a dream.
Increasingly, banks are mak
ing loans available to first-time
homebuyers, and the rewards of
homeownership are becoming a
reality for more consumers
across America. In fact, in 1995,
first-time homebuyers in
California dominated the real
estate market for the first time,
accounting for 50.8 percent of
the market.
Mortgage companies offer a
variety of special home mort
gage programs. Elements of the
affordable programs include:
• lower down payments (as
low as 3 percent)
• competitive interest rates
• reduced closing costs
• flexible credit requirements
(for example, satisfactory rent
and utility payments and pay
ment of other bills)
Will an affordable mortgage
work for you? Do you qualify?
To determine if you’re ready to
buy a home, take a moment to
consider these important ques
tions. If you answer “yes” to
most, you’re probably ready for
an affordable mortgage.
• Do you have enough savings
for a small down payment (the
amount of money you initially
pay toward your home’s pur
chase)?
• Do you have a steady and
secure source of income? Your
employment history and total
income (salary plus child sup
port, govern
ment checks,
etc.) are
important
considera
tions to
financial
institutions.
• Do you
have a histo
ry of paying
bills on
time? Banks
judge your willingness and abili
ty to pay by your credit record
(i.e., how well you have met
Cureton
^JOUCH. INC
Prime + interest
McColl leaves
imprint on
city, bank
By Gerald O. Johnson
THE CHARLOTTE POST
Hugh McColl has made his
mark on Charlotte.
Few win argue that his corpo
rate vision, his aggressive style,
and his winning attitude has
been just as beneficial for the
city as it has been for
NationsBank. Charlotte has
prospered from the residuals of
McCoU’s orchestrating an asset
based $7.7 billion statewide
enterprise known then as
NCNB, to NationsBank, a $235
billion asset bank serving 16
states. Charlotte has grown as
NationsBank grew to become
the fourth largest bank in the
nation.
Under McColTs leadership,
NationsBank in 1996 was the
40th most profitable company in
the world and is expecting to top
that figure by the end of 1997.
For most people this would he
enough to close the book. But it
only represents a chapter in
McColl’s accomphshments.
He has won numerous acco
lades and recognition for his
leadership and commitment to
community investment, minori
ty business development and
workplace diversity. To McColl
these types of programs are why
NationsBank is successful.
“If we can help people meet
their dreams and aspirations
through financial assistance,
then I think we can make a lot
of money,” McColl said. “If I
were a mayor, I would love to
have a city made up of commu
nities and neighborhoods in
which people were able to
achieve their aspirations and
ambitions. What makes a place
a great place to live is having
people working together, play
ing together, and praying
together.
“What I would like to see is
our neighborhoods and commu
nities bound together by a com
mon set of shared values, and
shared goals and ambitions.”
Becoming one of the largest
See McCOLLon page 9A
PHOTO/CALVIN FERGUSON
NationsBank chairman and chief executive officer Hugh McColi has been a ieader in diversifying
the corporate work force as weil as turning the Chariotte-based bank into the nation’s fourth-iargest
institution of its kind.
BUSINESS TO BUSINESS
your previous financial obliga
tions).
• Do you manage your money
carefully and save regularly,
even if it’s a small amount?
• Do you plan to stay in the
same location for several years?
Once you have established
that an affordable mortgage will
work for you, you will need to
know how much you can afford
to spend on your monthly mort
gage payment. You also will
need to set aside some money
See MORTGAGE on page 9A
Money
Management
20 ways
to save
By Amanda S. Danchi
SPECIAL TO THE POST
It’s wise to save at least 10
percent of your pretax income so
you can adequately provide for
your retirement and meet other
financial goals. Sound impossi
ble? It may be easier than you
think.
To get you started, the North
Carolina Association of CPAs
provides these 20 ways to boost
your savings - and the return
on your savings - in 1997 and in
years to come. 1) Pare down
your debt. Unless you can find
an investment with an after-tax
return that’s higher than what
you’re paying on your debt (and
that’s not likely), reducing your
debt is the first step toward
smart saving.
2) 'Track your spending. If you
don’t have a clue about where
your money goes, try monitoring
your spending for a few months.
Then look for ways to cut back
spending and increase your sav
ings.
3) Pay yourself first. As long
as your debts are under control,
put a pre-determined amount
away in a savings plan each
month before you make big-tick
et purchases.
4) Make it automatic.
Authorize your bank to transfer
a set amount each month from
your checking accoimt to a sav
ings account, mutual fund or
another investment vehicle.
5) Maximize your 401(k) con
tribution. Remember that every
dollar you invest in this quali
fied retirement plan reduces
your gross income hy the same
amount.
6) Save the small stuff. Rather
than cashing small checks you
receive for dividend payments,
insurance reimbursement,
birthday gifts, and the like,
deposit them in your savings
account.
7) Bank “extra” checks. If you
get paid biweekly, two months
out of the year you'll get three
instead of the usual two pay-
checks. Save those two checks
and you'll boost your savings
significantly.
8) Revise your W-4 form. If
you got a large tax refund last
year, reduce your withholding
for 1997. You’ll get a bigger pay-
See 20 WAYS on page 9A
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