Editorials & Articles

                    Mail your articles to info@willisdacrooner.com ( No selling, politicking or negative items)

                   Diversity and Leadership in the Police Department

                            An Empirical Analysis of Acting White   (A Must Read)

---------------------------------------------------------------------------------------------------------------------

Not “Stretching” Can Injure you
"Stretch IRA'' Can Help Shrink Tax Bite

 

By Jesse Abercrombie

After you open an IRA, you need to decide how to invest your contributions. But, other than that, you don't really have a lot of decisions to make. It's a different story, however, once you inherit a traditional IRA. At that point, you need to make some choices - and by making the right ones, you could save thousands and thousands of dollars.

As you probably know, a traditional IRA's earnings grow on a tax-deferred basis, so you pay no taxes on your earnings until you start making withdrawals. But tax deferral also ends at another time - death. So, when you inherit an IRA, you could be facing a big tax hit - if you take the money as a lump sum.

Do you have an alternative? Yes. You could use the money to set up a "stretch IRA,'' which, as the name suggests, includes the flexibility that allows you to stretch out IRA withdrawals - and the subsequent taxes -- for as little as a year or over the course of your lifetime. And since you're not liquidating the IRA all at once, it can continue growing over time.

If you decide to establish a stretch IRA, you must begin taking annual distributions by the end of the calendar year following the year of the original IRA's holder's death. (You can calculate your life expectancy, which determines your required annual withdrawals, through a "Single Life Table'' available from the government.)

Furthermore, new Internal Revenue Service rules give you a "second chance'' if you inherited an IRA before 2002. Under the old rules, if you didn't start taking payments by Dec. 31 of the year following the IRA holder's death, you gave up the right to lifetime distributions and had to take them all within five years. But now you've got until Dec. 31, 2003, to take advantage of the stretch IRA provisions. But see your financial and tax experts to find out the specifics to this "second chance."

A stretch IRA can benefit you in some important ways. But it won't happen by itself. For one thing, your parents or other relatives might have their IRA administered by a small bank - which might not even offer the "stretch'' option. So, if you think a family member may be planning on leaving you a traditional IRA, you'll want to check on where it's being held - and possibly move it to a more "stretch-friendly'' place.

Obviously, you can't make such a decision on your own - you'll have to talk with your parents or other relatives about what you'd like to do. In other words, you'll have to plan ahead.

You'll also need to do some advance planning if you're in doubt as to who is listed as the beneficiary of an IRA. Depending on where the IRA is being kept, the assets may go automatically to a surviving spouse or children. This may be acceptable in some cases, but it could prove troublesome if a second marriage is involved. For example, if one of your parents has remarried, then, upon his or her death, the IRA may go directly to the new spouse - even though it was your parent's wish that you receive it.

Clearly, you'll want to find out everything you can about your parents' investments, including the name of the institution administering their IRA and the location of their beneficiary designation forms. While having this type of discussion may seem awkward, you'll actually be helping your parents carry out their wishes - and you'll avoid serious headaches later on.

For any questions or comments regarding this article, please contact Jesse Abercrombie, Investment Representative, Edward Jones Investments, 972-241-8059.

--------------------------------------------------------------------------------------------------------------------------------

 

Buying Laptops 101

One of the top things I have received phone calls about lately is purchasing a laptop. Although I do offer consultation on walking you through purchasing a laptop via phone for a small fee, it is really easy to find out what you need on your own by doing a little research. A good site that rates laptops based on user ratings is Eopinions (http://www.epinions.com/cmhd-Notebooks-All/show_~top_sellers). If price is no object, also check out PC World's Top 15 list at http://www.pcworld.com/reviews/article/0,aid,118253,00.asp.

What do I need to look for when buying a laptop, you ask? I answer that you should pay attention to Speed, Memory, and Hard Drive Space as the primary things. There are plenty of other options, but I will explain those later.

Speed
If the processor is Intel, choose Pentium 4 over Celeron for the processor speed. In lamens terms, a Pentium 4 is like a V8 vehicle, and the Celeron is like a 4 cylinder vehicle. The both will get you to the same place, but in a crunch when you want the power you will notice the difference. As far as processor speed, anything in the 1.5 - 2.5 GHZ range is good for the average person. Unless you are running some serious programs, having a processor over 3 GHZ not necessary. Instead, spend the extra money on some additional memory, which is discussed in the next section. The AMD Athelon is also a good processor.

Memory
The standard memory that comes on newer laptops is between 256 megs and 512 megs. I would recommend ABSOLUTELY not going any lower than 256 megs. If you are going to be doing multiple things at the same time (i.e. playing music, cruising the web, and burning a CD), you will need more memory. However, when buying a laptop it may be cheaper to buy your memory from an aftermarket company and have a professional technical (such as me) install it. Like how I slipped that in there?

Space
HD Space is essential to being able to store all your programs and files. The standard right now is between 20 - 40 gigs of space. If you have a lot of music (or plan on having a lot), have a digital camera and take a lot of pictures, and find yourself being a packrat of email attachments (I am guilty of this), then you might want to consider more space. In my opinion, the more space you get from the start, the less likely you will have to deal with backing everything up or starting over when you run out of space and have to get a bigger hard drive later.

Other Options
If you use your laptop on the run, definitely consider buying an extra battery. Most laptops only come with a battery life of 1-3 hrs, which goes by quickly when you don't have a plug around. Also take into consideration that your battery life will go twice as fast if you are doing things such as burning CD's or playing DVDs.

Laptop screen sizes are averaging from 13" to 15" right now. There are the big 17" screens, but keep in mind the bigger the screen, the heavier the laptop is to carry (my 17" Toshiba weighs just over 10 lbs.) Also note that the smaller the laptop is, the more expensive they become and the more accessories that you will probably have to carry around externally. For example, there are some really small laptops that require you to have to hook up the CD-ROM on the outside with a USB cord.

Other options that are nice (but not necessary) are things like an internal wireless card. This will allow you connect at places like Kinko's, Starbucks, libraries, and other places with "hotspots." You can order external wireless cards later, but then you have to plug and unplug them every time you want to use them.

Personal Preferences

Now, for my personal opinions. Stay away from Gateway, and definitely stay away from Compaq. I repair these two types of computers the most often. In my opinion two of the top laptop companies right now are Toshiba and Dell. I use to be a diehard Dell fan until about six months ago when they lost my order a few times (but that is another story.) However, Dell has the best balance of cost vs. features, as well as the best customer support for laptops. If you can afford to spend a tad bit more, I prefer Toshiba's Satellite series. I currently have a Toshiba Satellite P25 Series laptop, and I love it. With the 3.0 GHZ Processor, 17" wide screen and 512 megs of RAM, it can handle pretty much anything you can throw at it. I added additional memory to bump it up to 1.256 gigs, but that is because I run software that absorbs a lot of memory. Toshiba's are also a little more durable than Dell's, but their stylish metal casing makes them a little heavier.

Have more questions? Email me at helpme@askpresario.com and I will do my best to answer them. Want me to walk you through purchasing a laptop? I can do so for a small consultation fee. Call me toll-free at 888-386-7706.
 

 

CONGRESSWOMAN JOHNSON:                                                                           MIDDLE CLASS TEXANS PAYING MORE THAN THEIR FAIR SHARE OF TAXES
     
Washington, D.C. - As Tax Day looms over millions of North Texans, Congresswoman Eddie Bernice Johnson today released a report prepared by Democrats on the Ways and Means Committee that highlights how Republican tax policies have shifted the tax burden to middle-class families, caused even greater complexity and unfairness in the tax code, and exploded the national debt. 

“When it comes to making the tax code more fair for middle-class Americans, Republicans in Washington have said one thing and done another,” said Congresswoman Johnson. “Recent Republican tax cuts have largely benefited corporations and the wealthiest few, while shifting a greater share of the tax burden on the middle class.”

The report highlights five results of Republican tax policies: greater unfairness, exploding national debt, increased complexity, expanding the reach of the Alternative Minimum Tax (AMT) to ensnare the middle-class, and an estate tax bill that hurts farmers and small businesses more than it helps them. 

The tax code’s complexity and unfairness has a real effect on the average American family.  According to the Congressional Budget Office, it is middle-income households, rather than the richest households, that now pay a higher share of federal taxes following the 2001 Republican tax cuts. 

In addition, four common forms – Form 1040 and Schedules A (Itemized Deductions), B (Interest and Ordinary Dividends) and D (Capital Gains and Losses) – take an estimated 28 hours, 30 minutes to prepare, according to the IRS.  In 1988, the paperwork burden for these forms was 17 hours, 7 minutes.  Even the simplest form in the IRS inventory, the 1040EZ, requires 3 hours, 43 minutes to prepare, up from 1 hour, 31 minutes in 1988.

The national debt has exploded, with Republicans raising the debt limit an unprecedented three times in three years ($450 billion in 2002, $984 billion in 2003, $800 billion in 2004) to $8.184 trillion. The increase in debt means higher taxes in the future and decreased investment in important priorities such as national security, health care and education.

The Alternative Minimum Tax, originally designed to ensure the wealthy paid their fair share of taxes, is increasingly ensnaring the middle-class as a result of Republican policies.  An estimated 3 million taxpayers will be subject to the AMT in 2004 – without reform, that will explode to 35 million in 2010.  

 

-------------------------------------------------------------------

 

Profit and Loss Statements
Clingman 2

Ubuntu refers to the spirit of the community. It means that I am a person through other people. This concept is probably the most important aspect of living in a highly connected world. This space is dedicated to the Spirit of UBUNTU - I am because you are.

Profit and Loss Statements By James Clingman Jr.

Those familiar with accounting and business practices, and even many who are not, understand what profit and loss are all about. If you have a small business and apply for a loan, they ask for your P&L Statements; they want to know if you are making money or losing money. Collectively, if Black people in the United States check our P&L Statement we will not like what we see. It will reveal a startling fact. Everyone else is profiting and Blacks are taking a huge loss. If businesses conducted themselves the way we conduct ourselves, vis-à-vis reciprocity in the marketplace, they would be out of business in a heartbeat. How long will Black folks survive if we continue in the same vein of demanding rather than supplying?

We are spending billions of dollars each year with virtually no return. Their profit; our loss. Black people are buying everything everyone else makes, no matter how ridiculous the item is and no matter how fast the item depreciates. Their profit; our loss. Our people are in love with numbers and names on athletic jerseys, rims that keep spinning when the car stops, soft drinks that embarrass us with their commercials, and fast food restaurants that sell Black History to us - with fries, of course. Their profit; our loss.

Black people acquiesce to the so-called "powers that be," Public Enemy notwithstanding, rather than stand up like men and women and fight against what we know is detrimental to our people, especially our children. The media messages and the control of so- called Black Entertainment Television, which has now made yet another move to dumb-down its audience by canceling the 11:00 P.M. news, are indicative of our plight. Talk about mission creep; Viacom has it down to a fine art and a science. Their profit; our loss.

Who knows, maybe Viacom's action will start a new trend that will lead to NBC, ABC, and CBS canceling their 11:00 P.M. news. After all, if the news can be more effective given to us in at intervals throughout the day and night, why do we need to have any news at 11:00? Just a thought for Brian Williams and company.

We look on as immigrants move their businesses into our neighborhoods, mumbling and complaining under our breath but crouched at the start-line ready to race to their stores to buy their products. Their profit; our loss.

We stand by, even in towns where we are the majority in population, while projects funded by our tax dollars are being doled out, yet the lion's share is always given to outside developers, contractors, and workers. The most ridiculous thing is even when we get control of a project some of our people ask, "What's the minority portion of this project?"

 

I'm Black and I'm Proud!
Anthony Redic 4

Many of us remember that famous 1969 song by James Brown, "Say it loud, I'm Black and I'm Proud." The power we felt when we all joined in with unity, boldness, and confidence, and loudly sang the new anthem for Black people during that era.

I often wonder if we still feel the same way. Are we Black and are we Proud? Have we allowed the struggle for equality and equity to weigh us down? Has our search for wealth and success destroyed our efforts for Black power and unity? Have we begun to make excuses for being Black?

I believe it is time, once again, to unite and "Say it loud, I'm Black and I'm Proud." It is time to stand up and let everyone know that we are proud to be Black. We are proud of our ancestory, we are proud of our many successes, and we are proud of the future opportunies of Black people across the Diaspora.

We have come a long way! African Americans have had to overcome many adversities to reach various levels of affluence. Blacks endured racism, classism, and many other "isms" to become CEOs, CFOs, COOs, Managers, and etc. There are hundreds of African American accomplishments that could be highlighted; Black billionaires, Black CEOs, Black political representatives, Black University Presidents, and Black Surgeons.

As we begin to consider renewed efforts to support the Covenant with Black America, and the Millions More Movement, and the political priorities of the Congressional Black Caucus, let's join in once again, in loud refrain, "I'm Black and I'm Proud." As we say these words, let's strive to act on them as well.

 

Making the 'NET WORK For You!
Home Office

Leverage is the key to accelerating progress.

What is leverage?

To gain positional advantage; to exercise the power to act effectively; to improve or enhance. It makes sense to leverage what we do in a more effective way to improve our economic position.

Often, relatively small groups can exert immense strategic advantage and increase their effective leverage from acting in concert.

Are we taking advantage of the leverage available to us to stimulate economic growth in the Virtual Black Community? Here's a great example of "Black economic leverage." If 1% of the disposable income of African Americans is redirected to Black-owned businesses, the result would be 10% growth of the revenue earned by all Black-owned businesses. That is 10 to 1 leverage.

This would mean greater capacity of Black-owned businesses to provide jobs in Black communities where unemployment is high. This would mean increased revenue and profits to businesses which are supported by the Virtual Black Community. This would mean increased opportunities for wealth creation within the African American community, when we invest $70,000,000.00 in our own success.

Try this small experiment in leverage. Set aside 1% of your disposable income over the next 90 days, and make a commitment to find Black-owned businesses that deliver quality, service, and value to invest that money with.and  search for a business to invest in. Challenge a few of your friends, or your church, or your organization to do this. You will immediately see the leverage you can achieve when you act as a group to support Black-owned businesses. It's a win- win situation.

We have great economic leverage if we choose to exercise it. Leverage -- don't spend another dollar without considering your economic leverage.

Hit Counter