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Cljarlotte ^osit THURSDAY, JUNE 13, 1996 Mutual fund basics CHARLES ROSS , Your Personal Finance The most accurate measure of the performance of a mutual fund is its total return. Total return is a yardstick that fig ures in factors such as divi dends, capital gains or losses, and any decrease or increase in the fund's share price. Many people mistakenly believe that a fund’s 3deld is the best gauge. Others think that the income the fund paid is the most useful barometer. But there is one measure that is even more revealing; it’s called the fund's “real return.” This calculation shows how the fund did after subtracting the infla tion rate from its performance. The resulting number is a reflection solely of the actual growth of the fund; it gives you a number that is not “inflated.” Knowing how to evaluate your fund’s performance can help you make more money. Risk and reward Suppose someone offered you two investment possibilities: Two companies issuing bonds at the same time with identical maturities, and one company’s bonds carry a much higher interest rate. Which would you think is the financially weaker of the two companies? If you guessed the one with the'lower interest rate, guess again. The weaker company would be the one with the high er interest rate, because the higher the return, the higher the risk. In the investment world, there are no free limches. So watch out for investments with high returns that seem too good to be true, and consider how much risk you are willing to take with your money in order to get those high returns. Fundamental investing Do you know which type of investing historically has offered the best protection against inflation? Many people would choose bonds or money market funds over stock portfo- hos. But the facts show that in the past 69 years, stocks have had returns that average over seven percentage points above the rate of mflation, while bonds and money funds have averaged only two points over inflation. Those five percentage points would have made a tremendous difference over the years. Investors are also unaware of the overriding importance of asset allocation. This refers to the way in which you divide your money among various investment options. The per centage you invest in stocks, bonds and money funds you assemble has a greater impact on long-term returns than your choice of individual funds. On-going costs and fees What is your mutual fund’s See MUTUAL on page 8A STRICTLY BUSINESS Cultural revolution ®^^^^^^®******»»* 3696 Corporate culture 34% Job security. 15% Equity opportunities 11% Other. I ^ ILLUSTRATION/CHARLES RAMSEUR JR. Companies change to keep best workers By Herbert L. White THE CHARLOTTE POST Job applicants are as likely to ask about corporate culture and benefits as salary, a sur vey reveals. Thirty-four percent of exec utives said applicants most often talk about corporate culture, while 36 percent said benefits was the leading sub ject of inquiry. 'The sampling was developed by Robert Half International Inc., the world’s largest staffing service. The survey was conducted by an independent research firm, which polled 150 executives from the country’s 1,000 largest companies. “A healthy corporate culture is moving up the chain of importance for job seekers,” said Max Messmer, chairman and CEO of Robert Half International. “Employees are taking a harder look at how they spend their time and whether there is a com fortable fit with a prospective employer. This may reflect toda/s heightened awareness of stress on the job and an increased appreciation for the larger goal of overall personal achievement.” Companies are more likely to reach out to employees to provide benefits that go beyond money. It includes flexible work conditions career training and time off for family matters. In these days of lower unemployment, many compa nies are consequently looking for ways to create an appeal ing working environment, beyond monetary rewards, through such initiatives as more casual dress, skills training and family-friendly programs,” Messmer said. Lynn Dreyer, Robert Halfs area manager for North Carolina, said keeping good employees happy is a top pri- See CULTURE on page 8A Social Security: Retiring the uncertainty By Amanda S. Danchi SPECIAL TO THE POST How much will you actually receive in Social Security bene fits when you retire? According to the North Carolina Association of CPAs, it depends on a number of factors, includ ing your retirement age and your contributions to the Social Security fund. Here's what you should and should not expect. You should expect to get an esti mate of your future Social Security benefit. Don't wait until you retire to find out how much you're entitled to. Review your Social Security account in advance so that you can plan ahead and, if there are any dis crepancies, cor rect them before payments are due to start. To do so, call (800) 772-1213 and ask for a Request for Earnings and Benefit Estimate and Statement. Return the complet ed form to receive an official statement of your earnings his tory, as well as monthly benefit estimates for retiring at age 62, Money Management 65, or 70. You should not expect to receive Social Security bene fits automatically. You must apply. The Social Security Administration recommends that you sign up for benefits up to three months before you become eligible, either by calling or vis iting your local Social Security office. When you apply, bring your Social Security number, birth certificate, last year's W-2 or a copy of last year's self- employment tax return and, if you served in the military, your discharge papers. You should expect to be eligible for Social Security benefits if you have See RETIRE on page 8A Ma’s got a brand new bag Trends point to stay-at-home entrepreneurs By Kathy M. Kristof THE LOS ANGELES TIMES LOS ANGELES - Cathy Mears thought the best thing she could do after she had chil dren was give up her career and become a stay-at-home mom. But she just couldn’t afford it. “My husband and I looked at all kinds of things, trying to swing it,” she said. “Finally I said maybe I’ll just have to go back to work.” However, Mears found some middle ground. Now the co owner of B&C Family Daycare in Vista, Calif, she works part time from home. She doesn't earn a fortune: “It’s just the extra income that we need to make ends meet." Mears is by no means alone. Experts estimate that millions of American women do much the same thing, juggling part- time jobs and full-time home making in order to earn enough to maintain a scaled-down ver sion of their pre-parent lifestyle. More than 13 million women - roughly one of eve y four work ing women - are working part time, according to the Bureau of Labor Statistics. In addition, more than 7.8 million women work from home, says Bill Deming, a BLS economist. While there are few compara tive data, anecdotal evidence points to a booming trend, experts say. “When I started doing this in 1984, working at home to take care of your children was a very weird idea,” said Georganne Fiumara, director of Mother's Home Business Network in East Meadow, New York. Now Fiumara's organization boasts membership of 6,500 mothers, who pay $35 annually for work- from-home advice. “It is certain- See WOMEN on page 8A Hands-on demonstration Trial lawyer keynotes banquet One of America’s top trial lawyers will keynote a banquet of African American Xerox employees Saturday. Willie Gary, who rose from being a migrant farm worker in his youth to a lawyer who has won millions in judgments for his clients, will speak at Minorities United in the Southeast Region at the Adam’s Mark Hotel. The ban quet starts at 6:30 p.m. Gary, a graduate of Shaw University in Raleigh and N.C. Central University Law School in Durham, recently won a $500 million judgment in a lawsuit. Gary is also a well-known philanthropist who gives fre- Gary quently to causes that benefit the African American community. Among those gifts is $10 million he pledged to Shaw, where he earned a bachelor’s degree in business administration. He has been featured in magazines, newspapers and television, including “The Oprah Winfrey Show, Lifestyles of the Rich and Famous” and ABC News as a Person of the Week. Gary will speak on the keys to success and winning. “Don’t be denied,” he likes to say. “It’s out there so just go out and get it. I know there’s racism out there, I know there’s poverty. Rise above it.” Tickets for the banquet are $35. For more information, call Jackie Robinson at 551-2003. Herbert L. White m jg--' - - PHOTO/FRANK WILLIAMS Sylvia Grier (seated) tests an ergonomic keyboard/chair at the Metro Minority Suppliers Development Councils mini trade expo at Nations Ford Baptist Church. BUSINESS TO BUSINESS Let us sharpen your image with affordable full color digital printing. 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The Charlotte Post (Charlotte, N.C.)
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June 13, 1996, edition 1
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