Newspapers / The Charlotte Post (Charlotte, … / Dec. 22, 1977, edition 1 / Page 14
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i INVESTMENT ^B^lk DECISIONS By Bemie Johnson E F Hutton k Company Account Executive Retirement Planning Adequate planning can spell the difference between a re tirement based on financial security and one plagued by financial cares. Increasingly, Social Security is proving ina dequate to provide more than the barest necessities and the program must, of course, de pend upon the willingness of tax-pavers to assume increas ing burdens in the future. Yet millions of working Ameri cans are not'covered by ade quate pension plan-. ERISA permits individuals not covered by pension plans to establish their own person al, tax-deffered and tax-shel tered retirement programs Various personal retirement programs have been develop ed to help individuals take advantage of ERISA legisla tion. Some retirement plans lock funds into one investment ve hicle for long periods; how ever, there are plans which offer flexibility. The flexible plans offer a variety or a combination of investments from which to choose - Com mon Stocks Corporate Bonds, Mutual Funds, Money Market Instruments and Annunities to name just a few. This flexibili ty places the investor in a better position to take advan tage of movements in the market place. The composition of an in vestment portfolio will depend in large measure upon the individuals's financial posi tion and goals. However, be cause the aim is to establish an adequate retirement fund, the investment mix is likely to emphasize income and steady capital growth. If ypu are not covered by a pension of profit sharing plan, or if you are self-employed, you probably qualify to esta blish a personal retirement program. The following guide lines will help you determine your qualifications.'' ' A KEOGH PLAN is basical ly a retirement plan for the self-employed Anyone who pays a Social Security tax and-or who owns 10 percnt or more of an unincorporated business qualifies: doctors, dentists, accountants, lawy ers, architects, merchants, manufacturers reps, farmers and musicians. People who work for a cor poration and also earn addi tional money on their own may participate in both corpo rate and self-employed plans. • » VVOM IWUI.IWII vu uiic piau unco not restrict contributions to the other. In a partnership, a voting majority of the part , ners is needed to set up a plan. A Keogh plan must cover all full-time employees who have at least three years of service. However, if a business has -been in existence [ess than three years, the lesser figure must be used. For example, if a two year old company insti tutes a Keogh Plan, it must cover all full-time employees who have at least twoyears of service A full-time employee is one who works a minimum of 1,000 hours a year. How ever, an employee will not qualify after three year’s em ployment with an average of 1,000 or more hours per year, unless the work each year totalled over 1,000 hours An owner-employee may exclude from his plan those employees who are members of a union if they are part of another retire ment plan that resulted from good-faith negotiations. Keogh contributions must be the lesser of 15 percent of earned income or $7,500. This percentage is applied to the first *100,000 of earned Ih come. In order to get the maximum deduction, the per rentage cannot be less than 7'j percent When an employ er makes the maximum con tribution (7'zpercent of *100, (XX)) for himself, the contribu tion for employees cannot be less than 7'i percent THE MONEY PUT INTO A KEOGH PLAN IS TAX DE DUCTIBLE. AND THE EARNINGS AND CAPITAL GAINS OF THE FUND ARE PERMITTED TO ACCUMU LATE TAX DEFERRED Example A self employed individual with an earned in come of *50,000 or more can contribute *7,500 <15 percent) a year to his retirement plan annually and may deduct *7. 500 on his federal income tax return. INDIVIDUAL RETIRE MENT ACCOUNTS (IRA) provides a tax shelter in which qualifying individuals may set aside their own retirement savings with the benefits of a tax reduction for the contribu tions and tax deferred build up of income and capital gains. Anyone working for a living, whether he is an employee, a self-employed professional, or a business person not noW participating in a qualified • retirement program is eligible to start an IRA plan One may make annual, tax deductible contributions to an IRA plan up the lesser of 1,500 or 15 percent of earned income for the year. (Earned income means salaries, wages, or self-employment income. It does not include unearned income such as dividends, interest, rents or capital gains.) Both a husband and wife can deduct contributions if each otherwise qualifies for his or her own (IRA) up to the lesser of $1,500 or 15 percent of their respected earned incomes. Thus, a total deduction of w,™ <»i,ouu ior each) is possible. Social Security contribu tions do not make one ineligi ble for IRA IRA will not affect Social Security benefits. Retirement withdrawals may begin at age 594 and must begin at age 704. No contributions may be made to an IRA after age 704. The Individual Retirement Trust Accout is exempt from current income tax on realized capital gains, interest, and dividends. Investment incre ments received within the ac count will not be taxed until distribution to the participant. For those who are retiring and wish to. continue to tax shelter the proceeds of their Pension or Profit Sharing Plan, a “Rollover'’ account is available. A rollover is am IRA in which the contribution is a lump sum distribution from a tax qualified Retirement Plan. In essence, if one is a participant in a qualified em ployer's retirement program, and serves employment or the employer discontinues ms pro gram, one can transfer the funds tax deferred from the employer's program of his own individual retirement program. All of the distribution leSs the amount of contributions that the Individual made on his own behalf fvoluntary con tributions) must be transfer red within sixty days of re ceipt. If property is received - for example, common stock, one must put that same pr<^ perty in your new plan. Example: An individual worked for a corporation whi ch maintained a proflt-sliai ing plan into which the employer made contributions and also permitted the employees to make voluntary contributions The account appeared as fol lows: Total corporate contribu tions $40,000 Individual voluntary contribu tions by employee. .20,000 Earnings in plan resulting from corporate contribu tions .20,000 Earnings in plan resulting from voluntary contribu tions. .10,000 Total.$90,000 The individual receiving the $90,000 distribution could roll ~ Viw.wu i uic ainuuill from the plan minus the indi vidual’s voluntary contribu tion )r He can roll over the earnings on both sources of contributions to the plan and continue to keep the earnings sheltered from tax The distri bution of *20,000 which the individual himself contributed to the plan, would not result in any tax to him upon receipt Distributions from the “IRA Rollover" account may begin at age 59*2, and must begin at age 70'2 and can be spread over the life expectancy or joint life expectancy of hus band and wife Any questions pertaining to this article should be directed to 372-3779 Keep your out-of-town friends informed on what’s happening in Charlotte by sending them a copy of the ( harlotte Post each week The cost is only till per year Harris Jones. Jr. Named Executive Director Of BRC By Jeri Harvey Post Staff Writer Harris Jones Jr. has been named Executive Director of the Charlotte Business Re source Cener Earlier this year Jones had been made responsible for Procurement Activities. At that same time, Cathy Mcllwain was promot ed from Administrative Assis tant to Marketing Manager and Clara Adams was hired as secretary. The Business Resource Cen ter (BRC), is a department of the Charlotte Chamber of Commerce, under contract with the Office of Minority Business Enterprise (OMBE), United States Department of Commerce. It’s purpose is to encourage majority firms to buy from minorty businesses, to contact and identify minori ty vendors and majority buy ers, and to act as a liason between the two groups. The term ’’minority” is used to include all persons who are economically or socially dis advantaged due to cultural, racial, chronic economic cir cumstances, or other similar PAIKM Clirh DC hainrr a Uiat nam Veteran or having a physical handicap. Anyone who qualifies under this definition may use, at no cost, all services of BRC by calling (704) 332-8578. These services include ma nagement and technical assis tance, marketing and sales assistance, business training and education, and business financing and loan assistance. Since its beginning in 1972, the organization reports that approximately $15,220,000 have been identified and refer red to Local Business Deve lopment Organizations throughout the state for follow through in securing confirmed contracts. Of that amount, more than 10 percent or $1,533, 000 in contracts have been awarded to minority vendors. Jones, a native of Lake City, South Carolina, attended Johnson C. Smith and gradua ted in 1974 with a Bachelor of Arts Degree, with a major in Economics. While at Smith he played professional football with the Houston Oilers and the San Diego Chargers and attended school during the off season. He has also served in 1 ho T IniA-.. t_ two years. In 1975 Jones joined BRC as Marketing Administrator and worked directly with volun teers of the Regional Minority Purchasing Councils and Chamber of Commerce mem bers in creating markets and implementing procurement activities to mobilize private sector involvement with the Minority Business Enterprise. One of seven children in what he describes as an “ave Ray Charles Learning just isn’t the same when it’s set to music by veteran singer Ray Charles. That’s what several kids on ‘‘Sesame Street,” the popular preschool series, found out when Charles visited the . Children’s Television Work shop to tape sketches~Thar wttt be seen throughout the series 1977-78 season. r1^-1 ■■ -- HOWTO SUBSCRIBE 1 TO THE l CHARLOTTE POST JUST COMPLETE THE COUPON BEIAIW AND MAIL TO: 1 CHARLOTTE POST I " P.O. BOX 97 Charlotte N.C. 28230 CALL 392-1306 One year $10 | | 6 Months $6 75 Two Years $18 , □ Payment enclosed Bill Me l^ater Name --- Address -1 City ---- Stale-Zip HARRIS JONES JR. ...Receives promotion ywi uutR mimiy, jon es said his father often cau tioned him and his brothers and sister that “you don't have to stop here just because you were born poor in a small town - you go on.” He said his father impressed upon them that one thing that can never be taken away from you is knowledge, once you have it. “Early in life I set goals for myself,” Jones revealed. “I knew that I had to plan my future, it wasn’t just going to happen the way I wanted it to. So 1 decided to use sports as my way out and up. “1 couldn’t get a scholarship but I came to Smith and the coach let me try out for uxHDau. I made it and then was drafted in the army. I got into Special Services there and after completing my tour I played pro ball and finished school." After five years in pro ball, Jones said he began to think about his life and determined that he didn't want to continue what he was doing indefinite ly. "I wanted to do something to help others, minorities in particular,” he said. Accomplishments Jones is most proud of since working with BRC include his part in promoting three Annual Mino rity Trade Fairs and produc ing the first Minority Business Directory for Charlotte-Meck lenburg. Open Most Nites til^ Open Sundays 1-6 3702 & 3708 E. Indep. Blvd. Coliseum Shopping Center 536-7451 or 535-1710 V TWO GREAT STORES I INFINITY’S END cl:m_e_»»•_ a *• * • - I wvv,,“ i\ji min « net - dcwciry oc access. Leauier goods - Hats - Imported Clothes - Printed T-Shirts Levi’s, Wrangler, Snapfinger, values to *24.00 Pre-Washed Denim Jeans . Just 9“ j Imported from India. Game Shirts. Reg. 15.00 Now 6.99 Plaid Flannel Shirts Reg. 10.00 Now 6.99 Printed T-Shirts - Zodiac It Rock Groups Now 3.99 All Rings. Necklaces^lracelets_Now 20 percent off Infinity’s End, Too Head Shop-Paraphernalia Pipes-Papers-Incense Environ mental Lights-Posters-Water Beds & Access. Bed Spreads Sprrials__ Mattress. Any size Reg 59 95 39“ ~ Fitted Liner Reg 14 95 9“ Thermostat w-heater Reg 69 95 49“ All 3-145“ Value 99°° Bu\ 4 pieces, including frame 275 Value 199“ :: ETC. BOUTIQUE ENC." * * ]; ]1 Pre-Christmas J \ ;; Midnite Madness Sale !! J; Friday - Dec. 23 10-1 \ \ «! Entire Stock Must Go j » * i ★ Mens Quality Slacks were $25-$30 Now $12 * * 4i ★All Ladies' Wear Marked Down 30% • ► ] , ★ Name Brand Jeans Sold at JJnbelievable Prices i ** ] * ★ Suede Front Sweaters - 50% Off \ \ | J ^ Men’s & Otildren's Shoes Sold At Cost J | « » Open From ^ I Ktc.l • ► * • 9-9 Mon. Thru Sat. ^ >K * * < • 1-6 Sun. Church’s • ► 1 £ Chicken • * • Address _^ « * • 4409 G. N. Tryon St. N. Tryon St. « ► . Phone 598-7483 , | Tryon Mall *»» » I 11H I HIM I'HWmi » H"H M tl tl« Holiday <3Trash Wlps How can you help keep Charlotte neat and clean during the holidays? Just read and follow these collection tips from the Sanitation Division. S)ecember 26-30 Wfeek lifter Christmas . • Each residence in the City will receive t 9^9 backy^rgl garbage ^collections on a »ii m d -Thursday;"l‘a n d Wednesday/Friday schedule. • Special curbside trash collection will be ided this week. If your regular age collection days are Monday and • •■ursday, place your trash at the curb by 7 a.m. on Thursday, Dec. 29. If your regular collection days are Tuesday and Friday, place items at the curb by 7 a.m. on Friday, Dec. 30. • The York Road Landfill will be open from 7 a.m. to 4 p.m. December 27-30 and until noon on Dec. 31. ^Tree ‘(lips Remember, place cut Christmas trees at the .£ curb on Jan. 2 for collection. The following week trees will be picked up on regular Wednesday collection.
The Charlotte Post (Charlotte, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Dec. 22, 1977, edition 1
14
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