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Business Briefs
Air Atlanta supports the Atlanta Braves
Dan Kolber (second from left), executive vice president of Air
Atlanta, and Nick Gold (far left), Air Atlanta’s public relations
coordinator, display the Air Atlanta banner for Air Atlanta Cor
porate Night, July 21. With them are (from left) Jerome Robinson,
catering service representative, who sang the national anthem;
Slivy Edmonds, vice president finance; and Frances Benton, secre
tary, flight control.
Jennie Moret was recently named
“Top Representative’’ for 1986 by
the Metro Atlanta branch of World
Book Encyclopedia-Childcraft Inc.
and is ranked 12th among repre
sentatives in the country. She has
served the community for 15 years
and has donated World Book pro
ducts to the Hebrew Academy,
Epstein School, Atlanta Jewish
Community Center, Bureau of Jew
ish Education, Henrietta Egleston
Hospital and Atlanta Jewish Fed
eration’s sister city in Israel, Yehud.
She is the wife of Macy Moret and
they have two children, Andrea
and Blake.
* * *
Betty Smulian, chairman of the
board of TrimbleHouse Corpora
tion, has recently been elected
chairman of the Georgia Small
Business Association for 1986-87.
She is on the board of directors
of the First Georgia Bank and will
go to Washington, D.C., in August
as an elected Georgia delegate to
the White House Conference on
Small Business.
Now’s the time to benefit from low interest rates
Pat yourself on the back if you
have taken advantage of low inter
est rates and refinanced your home
mortgage for a considerable sav
ings. But don’t stop there. With
borrowing costs lower than they
have been in years, the Georgia
Society of CPAs advises you to
review your other outstanding
loans.
Take a look at your credit card
finance charges, auto loans, home
improvement and tuition loans. It
may be wise to pay off entirely
higher cost, short-term loans or
borrow from a less expensive source
to refinance long-term debts.
Make a list of all your loans,
including the amount, interest
charge and length of each loan.
Now single out the most costly
loans, those requiring high interest
rate payments.
List, too, those you feel you
might be able to pay off completely.
Credit card loans probably top
one of your lists. Current low in
terests rates give you two basic
alternatives, pay off or pay down.
Although credit card interest rates
have come down recently, many
consumers may still be paying on
purchases or cash advances with
rates as high as 20 percent. It may
be wise to dispose of that loan
completely by borrowing from a
less expensive source or using part
of your savings.
Let’s say you are paying 20 per
cent interest on a $1,000 credit
card loan. You are also building a
savings account at your local bank
or savings and loan, which is pay
ing seven percent interest. If you
are in the 40 percent tax bracket,
you probably will pay about $120
in interest this year (after taxes).
Yet your savings account is only
yielding $42 (after taxes) for every
$1,000 saved. If you can afford to
reduce your savings, take $1,000
and pay off the credit card debt
and save $78.
The same strategies, pay off com
pletely or pay off at a faster rate,
also apply to auto loans, home
improvement loans, vacation loans,
or any type of installment debt.
But if you don’t have enough money
in your savings to pay off a high
interest loan, where can you find a
less expensive source of funds?
Company pension plans. Many
pension plans allow employees to
borrow against their plan accounts,
often up to half the value of their
nonforfeitable retirement benefits.
Credit unions. Because of their
lower overhead and nonprofit sta
tus, credit unions usually offer their
members interest rates lower than
commercial interest rates.
Insurance companies. Borrowing
against the cash value of your life
insurance has proven to be an
effective way to make a low-interest
loan.
Brokerage houses. Individuals
can use their securities as collateral
for borrowing from brokerage
houses at interest rates often lower
than commercial rates.
Your employer. Many employers
have lending programs that pro
vide loans to their employees, often
at favorable interest rates. Be sure
to consult a CPA about tax conse
quences.
Banks and savings and loans.
These institutions can offer reason
able rates, particularly if the mar
ketplace is competitive. But shop
around to find the best terms.
Remember, because interest rates
are lower now than a few years
ago, any loan at reasonable rates is
likely to save you money when
used to pay off an older, higher
interest rate loan. But you should
compare the cost of a new loan
with the amount you would even
tually save before going ahead.
There is a third strategy that
could save you money. Consolida
ting installment debts by taking
out one loan to repay all or some of
your loans could save you money,
and free you from troublesome
paperwork as well. Again, the key
is finding a loan with low enough
interest rates to offset any origina
tion or other fees and save you sub
stantial money in the long term.
Those who expect to refinance a
home mortgage can consolidate
existing loans at the same time. If
you refinance for a higher princi
pal than you actually need, you can
use the extra cash to pay off a few
of your more costly loans.
But before you take out a major
loan, particularly if you are using
equity in your home as collateral,
consult a CPA to help you evaluate
the impact of the loan on your
finances.
This material is made available
by the Georgia Society of Certified
Public Accountants Inc.
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I. George Nozick has been
elected a vice president and a
principal of Morris & Manning
Insurance Inc. Nozick has a
total of 19 years in the insur
ance industry. He joined Mor
ris & Manning in 1979 as man
ager of the Commercial Insur
ance Unit. Nozick and his wife
Shael have a son, Paul, and
daughter, Shana. He is currently
involved in the Leadership Pro
gram of the American Jewish
Community Center.
Richard K. Babush has been
elected to the position of chief
executive partner in the firm of
Hirsch, Babush, Neiman and
Kornman, Certified Public Ac
countants. He will be responsi
ble for strategic long-range
planning and direction of the
firm.
Babush previously served for
10 years as managing partner in
charge of regular operations.
Jacob S. Kornman (Bud) has
been elected to the position of
managing partner.
Servicing your
Insurance needs.
• Personal and Group
• Life and Health
• Disability Income Protection
Steven A. Fine
2635 Century Pkwy., Suite 600
321-1200
theEQUITABLE
^ Financial Services
The Equitable Life Assurance Society
of the United States. NX N.Y
PAGE 13 THE SOUTHERN ISRAELITE August 1, 1986