Thu04242014

Business

Me, my church and a wealth replacement trust

CharlesSimsJr-160MONEY MATTERS: Charitable giving can be a rewarding experience by allowing you to both give and receive. To enjoy the benefits of charitable giving, you can use a variety of strategies.

Charitable remainder trusts – the basics

To establish a charitable remainder trust, you transfer appreciated property to an irrevocable trust and designate the charity of your choice as the beneficiary of the trust. The property within the trust is then sold and reinvested to provide income. You retain a lifetime interest in the income generated by the trust, and when the trust expires at your death, the property within the trust is transferred to the charitable organization.

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Twitter mix-up causes Tweeter Home Share explosion

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By Chuck Mikolajczak

NEW YORK (Reuters) - Excitement for Twitter's coming IPO is running pretty high - so much so that some investors on Friday mistook the nearly worthless stock of long-dead electronics retailer Tweeter for the tweeting site, sending shares up more than 1,000 percent.

Tweeter Home Entertainment Group <TWTRQ.PK>, a specialty consumer electronics company that went bankrupt in 2007, saw its most active day of trading in more than six years even though it has nothing to do with the social media site.

The stock, which trades over the counter, closed Thursday at a price of less than a penny a share, and hit a high of 15 cents a share on Friday. More than 14.3 million shares had traded by midday.

The volume marked an all-time high for the stock, surpassing the 13.05 million shares traded on May 10, 2007, when the company reported quarterly results and said it may choose to file for Chapter 11 bankruptcy.

Shares were halted by the Financial Industry Regulatory Authority (FINRA) at 12:47 p.m. (1647 GMT), with the stock up 684 percent at 5.1 cents, under the terms of Rule 6440, which the agency uses in "circumstances in which it is necessary to protect investors and the public interest."

To say the stock is normally lightly traded is an understatement. Sometimes several days go by without even 1,000 shares traded over the course of a full session.

However, Tweeter's share price and volume ticked higher following Twitter's announcement on September 12 that it had confidentially filed for an initial public offering.

The moves since then through Thursday were not nearly as extreme, with the stock reaching a high of 3.5 cents and volume between 200,000 and 1.1 million shares.

Tweeter filed for bankruptcy in June of 2007 and its assets were acquired by Schultze Asset Management on July 13, 2007, according to a filing with the U.S. Securities and Exchange Commission. A representative for Schultze was not immediately available for comment.

Twitter Inc publicly filed its IPO documents on Thursday, setting the stage for one of the most-anticipated debuts in over a year.

(Reporting by Chuck Mikolajczak; Editing by David Gaffen, Nick Zieminski and Phil Berlowitz)

Teach your children well

CharlesSimsJr-160In a recent survey of Generation Z (ages 13 to 22), 39 percent of teens and young adults said they expect to receive an inheritance and therefore don't need to worry about saving for retirement! However, only 16 percent of Gen Z parents expect to provide an inheritance – and there's no guarantee that an inheritance would be sufficient to replace retirement savings.

This disconnect between expectation and reality highlights the need for financial literacy among young people. Teaching children about finances not only may help them handle their own financial matters but could encourage academic engagement and pursuit of higher education.

Here are some steps to help develop your children's financial knowledge.

 

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Women and retirement investing

CharlesSimsJr-160Career opportunities for women have expanded greatly over the last couple of decades. Yet during their lifetimes, women still earn less money than men, primarily because they take time off from their jobs to care for children or aging parents.

Women also have longer life spans than men, so they may need to fund additional years in retirement with fewer financial resources. One study found that the average retirement savings for a woman aged 65 to 69 was about 22 percent less than that of a man of the same age.

Given the challenges, it's understandable that women are 42 percent more likely than men to express concern about having enough money for retirement (according to a 2012 survey). Focusing on saving for the future and managing retirement plan investments wisely could help many women improve their retirement prospects.

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Where is the money? Don’t overlook the MAAG

CarleeMcCullough-160Business start-ups challenged by the need for funding should not overlook the Memphis Area Association of Governments – MAAG.

According to its website, MAAG was created to facilitate and support activities that stimulate economic and community development in the community.

Revolving Loan Fund

MAAG – in addition to serving in a supporting role for governments and non-profits – also provides loans through its Revolving Loan Fund (RLF). A tool specifically targeting small and medium-sized businesses, the RLF is used to "promote expansion and job retention" by offering gap financing.

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Rainbow Push Honors Legends and Emerging Leaders

 

Rainbow_PUSH_Honors_Legends_amp__Emerging_Leaders_2-_Performance_by_Chan.jpgDETROIT, MI – The Rainbow PUSH Automotive Project, an initiative of the Citizenship Education Fund
(CEF), will convene its 14thAnnual Rainbow PUSH Global Automotive Summit, October 2-3, 2013, at the
MGM Grand Detroit Meeting & Events Center, 1777 Third Street, Detroit, MI 48226. This year’s theme,
“Economic Parity: Driving The Plan For Success,” addresses the release of the Rainbow PUSH Diversity
Automotive Scorecard.


The Rainbow PUSH/CEF Global Automotive Summit provides viable solutions in an industry that is still
recovering from significant economic downturns. The Summit’s ultimate goal is to bring inclusive
strategies to the forefront of the global business landscape as an endeavor to identify, sustain and
grow ethnic suppliers, dealers, media outlets, advertising agencies and firms that provide professional
services.


Summit conversations will include community and industry leaders discussing The Assault on Diversity at
the Leadership Town Hall Breakfast. As the automotive industry bounces back and reaches
unprecedented growth rates and profitability, African American automotive suppliers and dealers have
dwindled to an alarming rate. Automotive leaders will also Speak on Diversity: The Business Case during
the Business & Education Awards Luncheon. The Summit will conclude by recognizing living legends and
emerging leaders in the automotive industry.


“We will continue to celebrate diversity within the automotive industry by recognizing companies whose
business model embodies inclusion. However, we will also highlight those companies that resist
diversity,” said Rev. Jesse Jackson, Sr., president and founder of Rainbow PUSH Coalition. “Minority
consumers support automotive companies with more than 22 percent of new vehicle purchases, yet
some companies’ diversity plans continue to lag woefully. This is unacceptable.”

Growth in black buying power continues

report thumb-200WASHINGTON – (BUSINESS WIRE) – African-American buying power continues to increase and is expected to rise from its current $1 trillion level to $1.3 trillion by 2017, according to Resilient, Receptive and Relevant: The African-American Consumer 2013 Report.

The report was released on Friday (Sept. 20) by Nielsen, a leading global provider of information and insights into what consumers watch and buy, in collaboration with the NNPA during the Congressional Black Caucus Foundation's 43rd Annual Legislative Conference.

Highlights from the report include:

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More Americans feel graduates unprepared after college

students-600NEW YORK – College students settling in for the year may not graduate feeling as ready for the workforce as they expected.

Although a majority of Americans believe a college degree is the most important factor in career success, they're increasingly skeptical schools are doing a good enough job to prepare students, a new study conducted for Northeastern University found.

According to the study, 62 percent of the people surveyed rated colleges' efforts to prepare graduates for the economy as "poor" or "fair." Half said the quality of preparation had declined over the last 10 to 15 years, and nearly as many said colleges aren't in tune with today's job market.

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Where is the money? Try ‘factoring’ this

CarleeMcCullough-160No matter the size of the firm, many businesses regularly face cash shortages. When small or new businesses face such a squeeze the options are more limited. But if the business has accounts receivables, which is an asset that can be sold, "factoring" may be an option.

Factoring entails the business selling its accounts receivables at a discount to a third party known as a factoring company. The discount is the incentive for the factoring company to take a risk by advancing money on the receivables.

In a normal factoring deal, there are three participating parties: the business selling the accounts receivable, the one buying the accounts receivable (the factoring company), and one who owes the accounts receivable (customer of the seller or the debtor). The accounts receivable usually have to be owed by a dependable verifiable source that has a credit rating worthy of the factoring company its money

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How a pension could affect Social Security benefits

CharlesSimsJr-160If you expect retirement income from a pension and Social Security, congratulations! These two income streams, along with your retirement savings, could put you on a comfortable financial footing. However, you might not be aware that your pension could affect your Social Security benefits.

Eliminating windfalls

Private-sector workers who earn a pension typically pay Social Security payroll taxes, in which case the pension should not affect their Social Security benefits. However, an issue arises when someone receives a pension based on earnings in which Social Security taxes were not paid — typically from a federal, state, or local government, a nonprofit organization, or an employer in a foreign country — and the individual is also eligible for Social Security benefits based on employment from other jobs. In these situations the Social Security benefit may be reduced by the Windfall Elimination Provision (WEP).

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Yes, the rich are getting richer

pileofmoney-225WASHINGTON– A new report confirms the old saw: The rich are getting richer.

According to a report titled, "Striking it Richer: The Evolution of Top Incomes in the United States" by researchers at the University of California at Berkeley, "From 2009 to 2012, average real income per family grew modestly by 6.0 percent but the gains were very uneven. Top 1 percent incomes grew by 31.4 percent while bottom 99 percent incomes grew only by 0.4 percent."

The report continued: "Hence, the top 1 percent captured 95 percent of the income gains in the first two years of the recovery."

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How iPhone 5S makes your finger into a password

iphone-600The most impressive feature of the new iPhone 5S may be its ability to turn your finger into a password.

Touch ID is Apple's name for a new fingerprint scanner that would act as a security tool for log-ins and for making purchases from iTunes and other Apple stores.

"Your fingerprint is one of the best passwords in the world," said Dan Riccio, a senior vice president for hardware design at Apple, in a promotional video. "It's always with you and no two are exactly alike."

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Long-term care: Evaluating the need

CharlesSimsJr-160Even though the possible need for long-term care is not something people enjoy thinking about, an estimated 70 percent of 65-year-olds will need this type of care at some point in their lives.

The average cost of a semi-private room in a nursing home was nearly $75,000 a year in 2012, and it's been projected that the annual cost could reach nearly $165,000 in 20 years due to inflation.

Some wealthy households can afford to pay for long-term care out of pocket. Many others with substantial financial assets might not be sure whether they have saved enough to meet their future needs. Thus, it may be wise to consider whether your financial resources would be adequate for a worst-case situation.

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