Social Security not enough
Uncle Sam wants you. ..to open
an IRA. If you're planning to
retire someday and you think
social security will be enough to do
it on, think again!
Congress passed the Social
Security Amendments of 1983 to
alleviate the retirement system's
financial problems as the first step
in what promises to be a long term
process of reform. But for some,
this current solution, creates a new
problem: starting with your 1984
tax year, some with higher incomes
will notice your social security
benefits taxed.
It has also become clear that
even with the low current rate of
inflation, social security will not be
enough, by itself to assure
economic well-being for your
retirement.
The Federal Government is en
couraging every working person to
open an Individual Retirement Ac
count. An IRA allows you to
create and contribute to your own
retirement plan and deduct the
contribution from gross income on
your federal income tax return.
Congress made IRA's more at
tractive in tax legislation passed in
1981. Under the revised rules, you
may open an IRA regardless of
whether you are already covered
by a company retirement plan.
And more people are taking ad
vantage of it too. A preliminary
Internal Revenue Service survey in
dicates that over 16 percent of all
View From
The Market
Joseph P. Davis III
1983 personal income tax returns
Filed show an IRA contribution.
The IRA basics are easy to get to
know. You can have an IRA ac
count if you are employed or self
employed (or if your spouse is).
The amount you can invest is
lOOVt of your net earnings up to
$2,000 in any year. The limit rises
to 2,250 is your spouse is not
employed or self-employed.
Your IRA account can be a sim
ple certificate account with a bank,
savings and Loan Association, or
credit union. It can also be used to
buy stocks, bonds or mutual
funds. You can even use your IRA
contribution for a real estate ven
ture.
Many people wait until the last
minute to put money into IRAs. It
makes more sense to invest early in
the year. Consider this. If you were
to place 2,000 into an IRA every
December 30 for 25 years and if
the account earned 12 percent an
nual interest (which even in this in
terest rate environment is still
available to you), you'd have
$299,285 in the account after 25
years. But, if you were to put tome
$2,000 into the account on January
1 of each year, after the 25 years
you'd have #377, 436 or $38,151
more. This is again of more than
51 ,500 per year.
There is a penalty tax for early
withdrawl. The IRA was meant to
be a retirement plan, not a savings
plan. For this reason, if you
withdraw money from an IRA
prior to age 59 Vt, you will pay a
penalty tax of 10 percent. This is
over and above the income tax on
the withdrawal.
The penalty tax has been seen as
a drawback to IRA accounts,
although it is not unrealistic to
earn enough extra money in you
IRA account so that you are better
off than with a regular savings ac
count. Because your money is
compounding tax free, it grows
much faster than ordinary savings.
Eventually this growth will out
pace a savings account even after
you have paid the penalty tax.
Editor's Note: Joseph P. Davis
III, formerly of Raeford, is an ac
count executive with Dean Witter
Reynolds Inc. of Raleigh. Davis,
who is the son of Hester R. Davis
and the late Joseph P. Davis of
Raeford has a Bachelor of
Business Administration Degree.
Davis and his wife, Rebecca,
presently live in Raleigh.
Deborah Purcell named
draft board director
Mrs. Deborah J. Purcell of
Raeford has been appointed by the
Director of Selective Service, in the
name of the President, to serve as a
member of North Carolina stand
by Selective Service Local Board
No. 26.
Mrs. Purcell is a Secre
tary/Bookkeeper with the Hoke
County Board of Education. She is
a member of the North Carolina
Association of Educational Office
Personnel and the Hoke
Reading/Literacy Council.
Although there is no present
authority to classify or induct men
into the military, the selection and
training of standby Local and Ap
peal Board members gives the
Selective Service System increased
capability to meet mobilization re
quirements in the event of national
emergency.
Another important part of the
revitalization of the Selective Ser
vice System is the federal law
which requires young men (born
on or after 1 January 1960) to
register with Selective Service 30
days before or after their 18th
birthday. They may register at any
U.S. Post Office.
Just a bit higher
When was the last time you saw a flying dog? It has
been rumored that this young American Eskimo
Spitz was trying to decorate this small Christmas
tree planted in his yard, while his companion super
vises. The dog is actually leaping for a tennis ball
that just bounced his way. Obviously, his partner is
not as enthused.
. . .Garden information offered
(Continued from page 4B)
Other popular messages deal
with general gardening subjects,
such as taking a soil sample, 2901;
applying fertilizer, 2903; liming the
garden, 2904; improving the
garden soil, 2905; and using
organic mulches, 2908.
The Teletip operator will mail
callers a list of all the messages on
the system upon request. A list can
also be obtained from many coun
ty offices of the N.C. Agricultural
Extension Service.
? ? ?
Succulent strawberries, pretty
peaches, bountiful blueberries,
glistening- grapes* They're the
dream of many a Hoke County
family. But growing fruit sue
cessfully calls for more than desire
and a green thumb, says Willie
Featherstone, County Extension
Chairman. It also calls for savvy.
One of the best sources for get
ting information on fruit produc
tion is Extension Teletip.
Teletip, a toll-free' telephone
answering system, is used by the
Agricultural Extension Service to
answer commonly asked questions
about varieties, insect and disease
control, and pruning.
Dial 1-800-662-7301 and tell the
operator the number of the
message you wish to hear. There
are 39 Teletip messages dealing
with fruits and nuts. They include:
Peach Varieties, 2350; Pruning
Peach Trees, 2355; . Strawhfrry.
Production, 2380; Strawberry
Varieties, 2381; Blueberry Produc
tion, 2310; Blueberry Production
in the Mountains, 2311; Bunch
Grapes, 2340; and Muscadine
Grapes, 2341.
Other important messages in
clude Fruit Spray Mixture, 2331;
and Pruning Fruit Trees, 2335.
Featherstone said a complete list
of all Teletip messages could be
obtained by calling the toll-free
Teletip number or by calling the
Hoke County Agricultural Exten
sion Office at 875-3461.
Except for the less than four per
cent of Americans that live on
farms, most people tend to think
-of soil only when it becomes dirt,
smudged on our clothes or carried
into the house on our shoes.
Deborah Purcell
\
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24 OZ LOAF
Prices Effective February 25
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In fUeford:
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We Have K-1 white Kerosene
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