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Thursday, January 5, 1988 - THE CHARLOTTE POST - Page 5A Local, National Economies Could Be In For A Good Year Special To The Post By Hugh Durden Will 1989 be a year of contin ued growth and good business conditions in Charlotte, in North Carolina, and in the United States? Or will 1989 see slower growth, fewer business opportu nities, or perhaps even a reces sion? While a larger number of peo ple are stud}dng these questions, the one certainty is that no one knows for sure. Economic con ditions are not always predicta ble, and seem even less so these days. We do know, however, that the current economic expansion has continued for over six years- -a time during which millions of Americans have been added to the payrolls of businesses, in stitutions, and other wage pay ing organizations. All in all, the years since 1982 have been a time of good opportunity and steady growth for both working people and businesses. And Durden even though 1989 conditions cannot be known for certain, the best guess is that this will be a year of continued growth, al though perhaps somewhat slower than recent years. A Little Homework Can Pay Off In More Prosperity Make the coming months count by resolving to Improve your finances. According to the North Carolina Association of CPAs, a few wise moves now can help you make 1989 add up to a year of prosperity. So clear the confetti off your desk top and start organizing your financial life. PAY OFF YOUR CREDIT CARDS At one time, consumers had an excuse for running up credit card balances. Double-digit In- llatlon favored the debtor, and personal Inlerest was 100 per cent lax deductible. But times have cimnged. Inflation has settled clown, and the personal Interest deiductlon is on its way out. In 1980, you can deduct only 20 percent of the Interest charged on your credit cards and personal loans. Next year that figure drops to 10 percent, and by 1991 the deduction will disappear completely. Your best bet is to pay off as much consumer debt as possi ble, as soon as possible. For ex tra Incentive, contrast the 13 to 19 percent interest you usually pay on credit cards to the five to six percent your savings ac count probably earns. If you are like many other Americans, you may have a hard time managing a world without credit. Without charge cards and personal loans, how could you pay for a new couch, a summer vacation, a new car, or even your children's education? The an swer is simple: learn to save. Each payday, reserve a portion of your salary for savings. If you doubt your own will power, ar range for your employer to de posit a portion of each pay- check into a savings account automatically. But putting aside Just $50 every two weeto, you can accumulate $1,300 in one year — not counting Interest. DON'T LET A NEW CAR DRIVE YOU INTO DEBT Just because you've paid off your old car loan, don't assume that it's time to run out and trade up to a new car this year. Your old car has probably de preciated to the p>olnt where it will yield only enough funds to serve as a down payment on a new car. In many cases, you will have to finance the rest of the new car's coni through a person al loan. Instead of trading in your car right away, consider keeping it a few more years. During that time, deposit the equivalent of your car loan payments Into a savings account. In just a few years, you will have accumulat ed a substantial sum of money to put down on a new car. As a result, your new loan will cost you a lot less in both principal and Interest. BUILD RETIREMENT SAVINGS Your retirement years may be far off in the future, but when you consider how much money you need to retire with flnancl^ security, it can seem right aroimd the comer. By contributing to a 401(K) or an Individual Retirement Ac count (IRA) now, you can begin building a nest egg that can last a lifetime. In 1988, you were able to deduct up to $7,313 in 401(K) contributions— and as much as $2,000 in IRA conlrlbullons if you did not actively participate in an employer-sponsored re tirement plan. CHECK YOUR INVESTMENTS Learning to save is only half of the financial battle. Investing your money is the other. Make sure your Investments match your personality, means, and fu ture plans. If you are a conser vative Investor who cannot af ford to lose a dime, avoid risky ventures and seek out guaran teed returns. No matter what form of invest ment you choose, keep up to date on its performance. If you have thousands of dollars tied up in a savings account earning five percent in Interest, start in vestigating other options. As a rule, try to select Investments that yield at least several per centage points more than the current rate of inflation. BUY A HOUSE Buying a house is one of the best investments you can make this year, especially since 1989 promises to be a buyer's market in many locations. In addition, home ownership brings a num ber of valuable tax deductions— including mortgage Interest and real estate taxes. Remember, too. you can always borrow against the equity in your home to pay for other major expenses, such as a child's education. One last point: home ownership can also go a long way in helping you preserve your standard of living after retirement. If you cannot afford to make a 10 to 20 percent down payment on a new home this year, consid er starting a "house" fund. UPDATE YOUR WITHHOLDING Review the number of exemp tions you claim on your W-4 form—especially if you have re cently purchased a home, mar ried, or had a child. You may be able to decrease your withhold ing and Increase the amount of money you have available each month for investing. For exam ple, if a married couple earning $30,000 Increase their total withholding allowances by two, their take-home pay will jump $90 a month, or $1,080 a year. But don't Increase your with holding allowances carelessly. If you underpay your taxes by more than 10 percent, yon may have to pay a penalty. ORGANIZE YOUR TAX RECORDS If you sit down with a shoe lx)x of stray papers to do yoni luxes each April, you can easily over look deductions to which you are entltled--and pay more Ilian your share of taxes. NCACPA suggests that you be gin to organize your 1989 tax records immediately. One excel lent place to start Is by keeping a diary of your tax-deducllble expenses. For example, you should note the date, attendees, purpose, and cost of any busi ness meals you take outside the office. Any time you visit a doc tor, jot down how much you paid and how much your insurance company covered. In addition, keep receipts for transportation costs to and from the doctor's of fice. Remember, any money you save on your taxes can bring you that much closer to fulfilling your other financial goals. Keep Financial Files In Order Continued From Page 4A Insurance - Policies in force, as well as those with any possi ble residual values, correspon dence with Insurers, claims made. Don't overlook coverage provided by fraternal, union, re ligious, employer or other or ganizations. Credit Card Account — Re ceipts and correspondence. Numbers to be called if cards are lost. You may wish to keep a separate file for business- related, deductible charges. Taxes — Returns from previ ous years, depreciation and car ry-over schedules, correspon dence with tax collectors, records of refunds or additional charges for previous years. If the tax file becomes too bulky, prepare separate folders for each year or separate Income taxes from other debts. Debts and Obligation — Other than those reflected in above files, including those on which you were a co-signer. Probably the best reason to be optimistic about 1989 is em ployment. There are more peo ple working in this country than at any time in our history. Over all employment continues to be very low, particularly in Char lotte and North Carolina. In the Charlotte area, job opportuni ties are more available than ever before for people seeking their first, or a dllTerent job. This very strong growth in jobs has produced a growth in In come that is spread broadly throughout (he working popula tion. The spending and savings created by this steadily growing work force are strong supports for business conditions this year. Another Important plus for 1989 is the strong production that most American manufac turing firms are enjoying. Finns in some industries, such as: tex tile, steel, automobiles, agricul ture, and businesses that sup plied those Industries, were suffering just a few years ago. However, prompted by a decline in the U.S. dollar, and strong de mand, these industries have fared much better recently, and are now pluses rather than mi nuses for the overall economy. E>en though the best guess for 1989 is for continued growth, there are certainly enough warning signs in the economy to keep this estimate from being a sure thing. Interest rates have risen in recent months, and many Industries are at or near their practical capacity to pro duce, making continued growth more difficult. In addition, the I'l 1M I al budget and trade deficits are serious threats to d> rail (he U.S. economy at some P'liiii. Yet, in Charlotte, growth has been almost phenomenal in re cent years, and there are good reasons to believe that this growth will continue in 1989. Companies wishing to relocate or expand their business are BANK NOTES Choosing the Right Bank News USA If you’ve recently moved, had a major change in your financial situation, or have a college-bound child, you may be shopping for a new bank account. Arm yourself with answers to this checklist from the American Bankers Asso ciation before you leave the house. 1. How many checks do you write each month? 2. How much money do you keep on deposit each month? 3. Will your employer make direct deposits to your bank to save you time and start earning interest faster? 4. What time of day do you prefer to do your banking? 5. Do you prefer to deal with machines or people for most of your banking needs? Now you are ready to narrow your selection of banks to several that best meet your needs. With automated teller ma chines and networks to handle your deposits and withdrawals, location may no longer be your most important consideration. The interest rates being paid by banks do vary. So do the rates they charge on loans. Some charge fees, and these can be a factor in making a decision. Others offer a wide variety of services that are tailored to specific groups of people (students or retired people, for example). If you are willing to forego some extras, you may want to consider a basic, no-frills account. More than half the nation’s banks currently offer such an account, which combines a reduced num ber of services for an extra-low price. Take the time to look for an account that meets your needs for service and price—it will be a wise investment. D Facts tor Consumers HOW TO FIX YOUR OWN CREDIT PROBLEMS (NU)—if you are having trouble getting credit, ads that promise to fix your credit history or clean up your credit report may sound like the answer to your problems. But before you pay a credit repair clinic to “fix" your credit record, learn what the law says and consider saving your money by making some phone calls yourself. Under the Fair Credit Reporting Act, you have the right to learn what your credit report says. If you have been denied credit based on a report from a credit bureau, the creditor must provide you with the name and address of the credit bureau it contacted. If you contact that bureau within 30 days to learn what is in your file, there is no charge for this service. If you simply wish to learn what is in your credit file, check the Yellow Pages under Credit Bureaus or Credit Report ing Agencies. If several are listed, call to find which ones keep your file. Credit bureaus may charge to give you file infor mation. Their fees usually range from $5 to $15. After you review yourcredit record, contact the credit bureau if you find inac curate information in your file. By law, the credit bureau must investigate it and, if it is inaccurate, remove it. However, if the information is accu rate, no one can require the credit bureau to remove it - unless it is outdated. If you have been late paying your bills during By Daniel Oliver the last 7 years, the law permits the credit bureau to tell creditors about your history of late payments. Bankruptcy may be reported for 10 years. That is the law. If anyone tells you that they can remove negative but current and accurate items from your file, they are making promises that they cannot keep. If you are having problems paying your bills and need help, you have several options. You can contact the companies you owe money and try to work out an adjusted repayment plan yourself, or you can check your telephone directory for non-profit financial counseling programs to get help. Some universities, local county extension agents, military bases, credit unions, housing authorities, and banks operate such programs and charge little, if anything, for their assistance. You also may want to contact a Consumer Credit Counseling Service (CCCS), a non-profit organization with more than 200 offices located in 44 states. To find an office near you, check the white pages of your local phone directory or contact the National Foundation for Consumer Credit, Inc., 8701 Georgia Avenue, Silver Spring, MD 20910, (301)589-5600. Want more free consumer information? Write “Best Sellers," Room 130, Federal Trade Commission, Washington, D.C., 20580. Daniel Oliver is Chairman of the Federal Trade Commission Shop The Charlotte Post CLASSIFIEDS today! AUTO INSURANCE, LOW MONTHLY PAYMENTS LTD. Other Insurance: BOAT • HOME • LIFE • HEALTH Well have you in and out in minutes! INCOME TAX SERVICES Call Or Come By For An Appointment 1824 North Graham Street 375-9209 (next to American Dry Cleaners) HOURS: Monday - Friday 8AM-8PM; Saturday 9AM-5PM still very favorably Inclined to do so In Charlotte and other North Carolina locations. The addition of new firms, plus growth of ex isting industry, adds lo business and employment opportunities, and continues to move Char lotte forward for Individuals and businesses alike. In addition, Charlotte now enjoys a well di versified base of Industries and jobs. This diversification In creases the likelihood of stabili ty in the local economy, and provides a buffer against a de cline in growth should the gen eral economy begin to falter. All In all, there are good rea sons to be optimistic about the 1989 business outlook. Howev er, the growing concerns in the economy, higher interest rates, capacity limits, etc., are also likely to continue, and perhaps become worse as the (ear pro ceeds. Together, these factors sug gest that while 1989 will proba bly be a good year. It Is not likely to be a great one for tnost busi nesses, and Is a time when spe culative plans are more risky than in recent years. The writer is Regional Vice President of Wachovia Bank and Trust Company, N.A. NEED HELP With TAXES Or TAX PLANNING? Call Me! DONALD LEWIS, FLMI (0)377-6730 • (H)545-5219 Need insurance for your home, car, life, boat or RV? Eric Harris' 233 S. Sharon-Amity, Suite 203 (704)366-4103 Call mel I have the right coverage for all your needs. Alllstate* AlliUU (nauruKtCompftnjr Lift front: AlltUU lift Iiuuranct Comptny Financial Planning & Insurance Preparation Call The Professionals 15 years of experience and credibility backed by • TEN MILLION DOLLAR ROUND TABLE ( The Insurance Industires Most Prestigious Award Given To An Agent.) • The National Sales Achievement Award • The National Health Insurance Award • The National Quality Award L.D. MELTONfINANCIAL SERVICES All Lines To Include • Group, Life, Auto, Tax Exempt Bonds, Home Owners, IRA's Tax Deferred Annuities, Mutual Funds, Civil Service Benefits Specialist Commerical Ave. (704)333-6499 Municipal Bond FUND.INC. OFFERS YOU THE OPPORTUNITY TO... EARN INCOME YOU DON'T EVEN REPORT ON YOUR FEDERAL INCOME TAX RETURN •Tax free income • Tax free compoimding • Continuous professional management For more information, including all charges and expenses, contact the Registered Representative named below for a prospectus. Read it carefully before you invest or send money. Levester N. Flo’wers WADDELL & REED, INC. 301 South McDowell Street • Suite 1103 Charlotte, North Carolina 28204 376-7926 Complete Income Tax Preparation for Both indivi(fuals & Businesses Competitive Rates on BOOKKEEPING SERVICES for Small and Large Businesses MEL JACKSON ACCOUNTING SERVICE an Affiliate, has now expanded it's service and is headed by: EVAN WEBB, CPA. Evan has 25 years experience as a corporate controller and director. FREE PARKING IN REAR Serving Charlotte For Over 40 Years 377-5209 201 S. KINGS DR. ACROSS FROM CINEMA THEATER BETWEEN 3RD ST. & INDEPENDENCE
The Charlotte Post (Charlotte, N.C.)
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Jan. 5, 1988, edition 1
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