Newspaper Page Text
6A
MARCH 21, 2002
Business
SEP: A convenient retirement program
f you’re an owner or
employeeofabusiness,
choosingasuitablere
tirement plan to establish or
participate in can be a diffi
cult decision. There are
many different typesofplans
tochoose from, all with their
own unique features. For a
small businessowner, aSim
plified Employee Pension
(SEP) plan may be the an
swer. SEPs offer special ad
vantages for both the com
pany and its employees.
If you’re an employer ...
For the employer, a SEP
offers tax benefits, flexibility
and easy administration. All
company contributions
made on behalf of yourself
and your employees are tax
deductible. Inaddition, con
tributionstoaSEP grow tax -
deferred, meaningthereare
no taxes owed on any earn
ings, interest, or dividends
untilthemoneyis withdrawn
atretirement.
Youdecidetheamountyou
wish to contribute annually
and, if you wish, you may
suspend contributionsatany
time. Eligible employees
Fannie Mae’s Raines-says homeownership is key to
closing $1 trillion “wealth gap” facing African Americans
WASHINGTON, D.C.
“Asset-building” strategies,
such as pro-homeownership
public policies, are the key to
narrowing the estimated $1
trillion gapin wealth between
African Americans and white
families, and building finan
cial security among African
Americans, according to
Franklin D. Raines, Fannie
Mae’s chairman and CEO.
In a speech to Howard
University’s 135th Charter
Day convocation titled “Mend
ing the Broken Promise of 40
Acres and a Mule,” Raines
said that homeownership is
absolutely critical to closing
the wealth gap.
“Owning a home is the
working man and woman’s
capital engine, the democrati
zation of capital,” said Raines.
“Owning a home is the only
investment - and the only le
veraged investment - avail
able to most Americans. Itis
a powerful way to transmit
wealth from generation to
generation.”
Raines noted that a signifi
cant causeoftheracial wealth
gap is that the legacy of sla
very, segregation, and dis
crimination systematically
hasdenied African Americans
property, propertyrights, and
the ability to general capital -
and thus wealth - from prop
erty. Closing the 20-pointgap
in homeownership between
minorities and the national
average will help to remedy
the legacy of property denial
and close the wealth gap, he
said.
The national minority
homeownership rate of 49.5
percent - and in particular,
the African American rate of
48.1 percent - remains far be
FOCUS
your news n this
fine paper.
Fax info to
724-8432.
AUGUSTA FOCUS
Orinancial
Consultant
mustreceive thesame percent
ageoftheir compensation. The
deadline to establish and fund
a SEP plan is the business’
tax-filingdeadline, plus exten
sions.
Because employees make
their own investment deci
sions, your fiduciary responsi
bility is limited. There are no
administrativeresponsibilities
such as an IRS Form 5500
filing requirement so long as
certain disclosure require
ments are met.
Using a plan offered by an
investment firm could make
things even easier. You would
write only one check for all
participants, designating how
money should be credited to
each account. Also, your em
ployees could take advantage
hind the 74.4 percent rate
among white Americans. The
national average for
homeownershipis 68 percent.
“Fannie Mae is determined
to expand minority owner
ship,” Raines said. “We have
PAT JEFFERSON REALTY
1126 11th Street
o} 722-8430
q Office Hours: Monday - Friday 9-5 4
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B e homes vith down |9 -
PAT JEFFERSON 'payment assistance through: JoE JONES
““'ANIC in the Inner City "
Ounce in a lifetime opportunity!!!!
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1001 Carrie St.
Beautiful one story
Ranch - 3BR, 2BA
Now Available
at $76,800
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. 1120 Carrie St.
Own Your Own Home!!!
2BR, 2BA, Kitchen, LR
Owner payment assistance
GREAT BUY at $63,600
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of the firm’s products, services
and investment expertise.
If you’re an employee ...
While your employer sets up
the SEP, you direct theinvest
ments. Your employer makes
contributions on your behalf,
although thelaw allows acom
pany to change or suspend
annual contributions. In ad
dition to your employer’s SEP
contributions, you may make
annual $3,000 ($3,500 for in
dividuals age 50 and older)
IRA contributions. Although
your IRA contributions may
notbetaxdeductible, they will
grow tax deferred. You may
place IRA and SEP money in
the sameaccount, which could
maketrackingyourretirement
assets easier and may saveyou
money on account mainte
nance fees.
You may invest your SEP
account in a wide range of
investment vehicles such as
stocks, bonds, mutual funds,
annuities, unit investment
trusts and other securities of
your choice. This means, how
ever, that you have to do more
homework on which invest
ments are best for you. A
pledged to provide $420 bil
lionin housingcapital toserve
three million minority Ameri
cans by the end of the decade.
Weare committed to bringing
flexible, low-cost housing capi
tal to families and communi
L. s .
b ’-’:’6 oy '
’
1007 Carrie St.
What a bargain
This 3BR, 2BA, LR,
Kitchen, breakfast area
all for only $76,800
4 Ny 8 .3 A
».._* y ;‘:. o ‘ k
L S
1024 Carrie St.
3BR, 2BA, Breakfast area
Conveniently located
ONLY $79,100
1124 Carrie St.
2BR, 2BA, LR, kitchen
$63,600 - Won’t Last!
financial consultant can
help you select investments
that meet your goals and
risk tolerance.
How much money in
each account?
Themaximum annual con
tribution that may be made
to a SEP plan is 25 percent
of each participant’s com
pensation ($200,000 salary
cap) or $40,000, whichever
is less. :
If you own a business and
want to explore the advan
tages of a SEP, speak to a
financial consultant. If
you’rean employeeand your
company doesnot havesuch
a plan, speak to your em
ployer about the SEP.
Salomon Smith Barney
does not provide tax or legal
advice. Please consult your
tax and legal advisors for
such guidance.
Constance Woods is a Fi
nancial Consultant with
Salomon Smith Barney. For
more information, contact
Constance L. Woods at (706)
823-8144 or
ties that have been over
looked, underserved and over
charged. And, we are going to
rescue African-American fami
lies from costly subprime lend
ingand vicious predatorylend
ing.”
sko RO esSR 5w v v
w,_ g ! R e \ - ‘-y
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1015 Carrie St.
End the year right
3BR, 2BA, LR,
appliances. CALL TODAY
$76,800
'l.‘i : ‘ ,“‘”-;,,:;:s“\‘;‘ ~%
sg"“-";" : :
ig;' u o ' ‘
S els&i'ii‘_':lf
1026 Carrie St.
2BR, 2BA
Great price!
$76,800
Quick move in!
722-8430
O ell Mechelle
26 Action News’
“Tell Mechelle”
airs weeknights on
26 Action News
at 6 p.m.
Local woman is out $350 after
putting rims and tires on layaway
Karen Buchanan tells me
she put the items on layaway
at Augusta customs back in
Augustand tothisdatethey’ve
never arrived.
The store manager admits
he forgot to order the rims for
Buchanan after she changed
her mind several times about
what she wanted.
Well, It’s been about three
months and now Karen tells
me she’s tired of waiting and
just wants her money back,
but the store refuses to give
her a refund because of a “no
refund” policy.
Jay Wilson, owner of Au
gusta Customs, says he was
going to give Karen a refund,
but later changed his mind
because of her attitude.
Animal Control not
responsible for pets’ safety
We often refer to them as
man’s best friend. They’re an
extension of your family right?
But what if your pet was picked
up by animal controland when
youwent tobringhim homehe
was sick or even injured?
It’s your fault, not the
pound’s.
Tammy Gossett of Augusta
tells me she learned that les
son the hard way. Her dog
Fred is her only son and is a
big part of her family. She calls
him her baby.
But Fred’s been digging his
way out of his fence and ended
up in the pound.
Tammy tells me at least two
dogs attacked her dog at the
Richmond County Animal Con
trol and now she says he’s
partially deaf and she blames
the shelter.
Officer David Jenkins tells
me Fred was injured before he
got to the shelter and admits
Mechelle Jordan is the Action News consumer anchor.
Contact her at tellmechelle @.wagt.com or call 826-0001.
NI AL Tel ] T
investment needs of
the community
Sl
Constance Woods
Financial Consultant
SALOMON SMITH BARNEY
ONEe TeENTH STREET,
Ste. 600
AuausTa, Ga. 30901
(706) 823-8144
SALOMON SMITH BARNEY
Amemberof citigrougT
©2OOO Salomon Smith Bamey Inc. Member SIPC. Salomon Smith Bamey and
“SEE HOW WE EARN IT." are service marks of Salomon Smith Bamey Inc.
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s md\e"e
e Jordan
I wanted to find out if a
person has a right to a refund
if he or she never received
merchandise from a store that
has a no refund policy. So I
spoke to Bill Cloud with the
Georgia Office of Consumer
Affairs and he says a business
can have a no refund policy,
but only if the customer has
items to return.
Karendoesn’t and therefore
Cloud says she should get her
money back.
Wilson says he’d rather go
to court than give her a re
fund. And Karen is planning
to do just that. Wilson has
alreadybeen served and has 30
daystoreply. I'll let you know
what happens.
he failed tomention that in his
report.
He alsosayshe’sreceived at
least seven complaintson Fred
in thelast month and when he
tried to catch him he noticed a
dead dog nearby and suspects
Fred killed it.
So was Fred hurt before or
after he got to the pound?
Well Animal Control direc
tor Bonnie Bragdon says it
really doesn’t matter because
the shelter is not liable either
way. A
It’sstated on the form that’s
completed when you pick your
pet up from the shelter. The
clause saysthefacility assumes
noresponsibility for the health
of your animal while at the
shelter.
Bragdon says this is to pro
tect them because they just
don’t have adequate space for
the animals and are in dire
need of a new facility.
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e (overnment Securities
¢ (Corporate Bonds
e Tax-Free Bonds
e IRAs and Pension
Plans
e Annuities
e Money Management