BV on Money http://www.bvonmoney.com BV on Money http://www.bvonmoney.com/media/feedlogo.gif BV on Money http://www.bvonmoney.com en-us Copyright 2010 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Long-Term Unemployment Among African-Americans On the Risehttp://www.bvonmoney.com/2010/03/17/long-term-unemployment-among-african-americans-on-the-rise/http://www.bvonmoney.com/2010/03/17/long-term-unemployment-among-african-americans-on-the-rise/http://www.bvonmoney.com/2010/03/17/long-term-unemployment-among-african-americans-on-the-rise/#commentsFiled under: , ,

If you're out of work, or know someone who is, and it seems like it's harder than ever to find a job -- it's not just in your head. A new study showing the state of unemployment among African Americans is both sobering and a wake up call for proper financial planning.

The March 2010 report from the Joint Economic Committee, found that while African Americans comprise 11.5% of America's workforce, they make up 17.8% of the unemployed, 20.3% of those unemployed for more than six months, and 22.1% of individuals out of work for a year or more in the U.S.

Also noteworthy: Before the recession, it took laid off African Americans an average of about three months to locate new work. Now it's taking roughly six months to get re-hired, according to the report.

Depending on your perspective, the economy is either gradually getting better -- or simply getting worse. What's not debatable, however, is that the U.S. is grappling with stubborn, chronic unemployment, a situation in which no overnight miracles can happen. The picture is particularly acute for blacks, as the data above show.

Since none of us have control over any financial market -- whether it's the jobs market, the housing market, or the stock market -- what we do have control over is how we manage our own financial affairs.

Prudence dictates that if you have a job, either because you're an employee or you're self-employed, you should take some economic safeguards to protect yourself in the event you suddenly find yourself jobless -- or without customers and clients, in the case of entrepreneurs.

Top Economic Safeguards

-Start paying down debt:
If you think that mortgage, those student loans or those excessive credit card bills are too much to bear now, imagine how overwhelming they'll become if you lose your income stream. Get serious about reducing debt now to solidify your overall finances.

-Build up a cash cushion:
There's nothing like having a little extra money in the bank when something unexpected, like a layoff, occurs. Being able to fall back on a "rainy day" fund will reduce financial stress if you get a pink slip - even for those who get unemployment benefits or an exit package from an employer.

-Network:
Everyone should network as a way to build personal and professional contacts, as well as boost their career standing. But for the unemployed, especially, it can be tough to stay positive when you're going through a job loss. So some people may avoid getting together with their professional colleagues and other associates (as they normally do when they're working). Don't feel embarrassed about being let go. Networking may help some people feel better, and it's also a strategy that can lead to a new position.

These are just three strategies that represent the minimum you should be doing to safeguard you and your family in tough economic times. What are your thoughts? How are you protecting your job and your finances amid high unemployment?

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times bestseller, 'Zero Debt: The Ultimate Guide to Financial Freedom.'

 

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]]>african american unemploymentAfricanAmericanUnemploymentunemploymentunemployment rateunemployment ratesUnemploymentRateUnemploymentRatesLynnette Khalfani-Cox2010-03-17T12:52:00+00:00Government & Business Hypocrites Press You to Pay, Don't Obey Ruleshttp://www.bvonmoney.com/2010/03/17/government-and-business-hypocrites/http://www.bvonmoney.com/2010/03/17/government-and-business-hypocrites/http://www.bvonmoney.com/2010/03/17/government-and-business-hypocrites/#commentsFiled under: , ,

American consumers are increasingly being subjected to hypocrisy of the worst kind from big business and government. I'm talking about hypocrisy that hits us where it really hurts: in our wallets and our hearts.

No where is this hypocrisy more evident than when it comes to paying debts. As individuals, we are constantly told to honor our obligations and pay our bills on time. Those who can't or don't "properly manage" their financial affairs are essentially labeled as deadbeats, and face everything from foreclosure to ruined credit.

No matter what the reason a person might have for not being able to pay his or her bills -- whether the cause is divorce, downsizing, big medical expenses, or simply the sour economy -- we're implored to cough up money to those we owe, and to do it expeditiously.

Yet, it's a whole different story for businesses and government agencies. They get to delay or skip out on paying their bills without big guilt trips. Plus, they get the benefit of "grace periods" in ways never afforded to individuals.

Walking Away From Mortgages
Take for instance, the notion of paying your mortgage on time. As unemployment remains near 10% and 1 out of 4 U.S. homes are "under water," more people are "walking away" from homes or doing short sales on properties they can't afford. The banking industry deplores this practice -- but only when consumers do it. As it turns out, the industry's chief lobbying group -- the Mortgage Bankers Association -- recently did the exact same thing. When the value of its pricey Washington D.C. headquarters dropped by about 50%, the trade group essentially walked away from the property.

Morgan Stanley, one of Wall Street's most elite banks, also recently decided to stop making payments on five office buildings in San Francisco.

And it doesn't end there.

Are You Waiting for a Refund?

Right now, roughly two dozen states in the U.S. are holding on to residents' state tax refund checks -- or considering doing so -- simply because those states are in financial trouble. You heard me right: Cash-strapped state governments are taking their sweet time paying taxpayers money that is due them so that the states can collect interest off the money and solve their own financial woes.

Some states can get away with this because, by law, they have liberal "grace periods" working in their favor. Hawaii, for instance, has up to 90 days before it must send out checks to taxpayers. So it won't start sending out checks until July 1 -- helping the state to save $275 million. Also, as an article in USA Today explained it: "States often do not have a timetable for refunds because delays are based on cash flow."

I'd like to see you try using that "cash flow" argument with your Visa company -- or any other creditor you owe.

The Myth of "Grace Periods" for Consumers

As consumers, when we get "grace periods," it's almost never without consequence.

Miss your insurance payment by a week or so, and your policy may or may not lapse. But good luck getting your insurer to cover you if something happens during that time.

And what about your mortgage? You may have a grace period of 10 days or so, but go beyond that and you'll definitely get hit with late charges.

Then there are your own taxes. The IRS, is benevolent enough to allow us a grace period of sorts. Can't file your taxes by April 15th? No problem. You can get an extension and file as late as October 15th. That six-month grace period, however, doesn't mean you can skip paying taxes due. You must still pay taxes owed by April 15th -- or get hit with interest and penalties.

Heck, in New York City, if you park at a meter and return to your car just two minutes late, you're likely to find a $65 parking ticket on your car window. After tons of complaints about "gotcha" tickets, the Big Apple is finally implementing a new law, effective March 21st, that gives people a five-minute grace period before tickets can be written.

It's high time we all started complaining -- loudly -- like New Yorkers did.

If we're compelled to pay promptly pay our bills on time -- and financially penalized or made to feel guilty when we don't -- why is it any different for government and corporate entities?

Nobody likes hypocrisy. Not from friends. Not from family members or loved ones. And certainly not from government agencies and the companies with whom we do business.

Follow The Money Coach(R) on Twitter!

Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times bestseller, 'Zero Debt: The Ultimate Guide to Financial Freedom.'

 

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]]>IRSLynnette Khalfani-CoxLynnetteKhalfani-coxTax Refund Checktaxestaxes 2010Taxes2010TaxRefundCheckLynnette Khalfani-Cox2010-03-17T12:39:00+00:00President Obama: Education Funds Are Important, However Change In Approach Is Neededhttp://www.bvonmoney.com/2010/03/16/president-obama-education-funds/http://www.bvonmoney.com/2010/03/16/president-obama-education-funds/http://www.bvonmoney.com/2010/03/16/president-obama-education-funds/#commentsFiled under: ,

President Obama recently announced a plan to offer $900 million in "school turnaround" grants to various states and school districts in an effort to improve schools with habitually low-performance. This grant money is in addition to the $3.5 billion already designated for low-performing schools in last year's economic stimulus bill.

It is obvious to state that money alone will not solve all of the problems with the American public school system, however financial resources are definitely needed, particularly in public schools in underprivileged areas. Because of the present system of public school funding that is largely based on tax revenue from the residents of the area that a school is located in, the most needy schools are often the least funded, to the point of lacking even the most basic educational supplies for all students. Although there are some wonderful examples of independent schools in impoverished communities doing great things (such as the Knowledge is Power Program schools and the Harlem's Children's Zone), for the foreseeable future, the vast majority of children will be attending normal public schools, which means that drastic change is needed to repair a system that has been broken for years.

The monetary resources allocated by President Obama are a beginning, however much more needs to be addressed beyond lack of funding. Several studies have supported the conclusion that the teacher is the most important part of the educational process. A good, caring teacher has been shown to be able to overcome a lack of resources in a lot of instances. I am not anti-teacher or anti-union, however it is a fact that the major teachers unions have often forsaken the needs of the children their constituents teach in favor of the benefits their members, many of whom do not belong in a classroom teaching anyone.

That is not an attack on all teachers: Most are sincerely doing the best they can, often under very difficult circumstances. However, to repeat the same actions and expect things to change is foolishness, and if a teacher is not performing, then school administrations need to be able to get rid of them without dealing with a maze of bureaucracy. In addition, the rigid rules put in place by NCLB (No Child Left Behind) have not resulted in an improvement in the educational process, and need to be scrapped. Schools need to have the freedom to mold their curricula to the needs of the children in them, without having to focus on conditioning students to pass standardized tests on only a handful of subjects.

Schools do not operate in a vacuum; they are part of larger communities. As such, the attributes of that community, both positive and negative, will have an impact on the students and the learning environment. This is not an excuse, only reality. We cannot deal with things based on what "should be" or what we personally grew up with. In addition for Obama's plan to make an impact, each child needs to have at least one parent or guardian at home who cares about their education, and makes sure that they keep up with their studies. That is not true for all students, and those children unfortunate enough to be born into an environment lacking in support should not be condemned to failure based on something that they had no control over. School programs allowed to operate independently of rigid constraints have shown that there are ways to overcome the lack of an ideal family dynamic, and this aspect of the education situation needs to be considered when all of this money is being spent.

It's great that President Obama has dedicated money to our broken public schools system, but we will also need more resources of a creative, caring spirit to make real, lasting change.

 

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]]>EducationReformObamaPoliticsSchoolsElliot Millner2010-03-16T13:38:00+00:00Bill Gates is Now Number Two on the World's Richest Person Listhttp://www.bvonmoney.com/2010/03/16/bill-gates-is-now-number-two-on-the-worlds-richest-person-list/http://www.bvonmoney.com/2010/03/16/bill-gates-is-now-number-two-on-the-worlds-richest-person-list/http://www.bvonmoney.com/2010/03/16/bill-gates-is-now-number-two-on-the-worlds-richest-person-list/#comments It's been three years in a row that the richest person in the world has changed. This year, that man's name is not Bill Gates or Warren Buffett. Instead, Carlos Slim Helu, CEO of America Movil, a Mexican Telecom Company, was named the richest man in the world by Forbes magazine. Slim is now worth roughly $53.5 billion, compared with $53 billion for Gates and $47 billion for Buffett. It doesn't seem like any of these guys are struggling, but this is the first time the world's richest man is from the country of Mexico.

All of the billionaires became wealthier last year, as Slim saw his wealth increase by $18.5 billion, while Gates earned an extra $13 billion. Gates has held the title for 14 out of the past 15 years. Buffett's fortune increased by an additional $10 billion dollars to $47 billion. He is third on the list. According to Buffett, the last two years were a great opportunity for him to make money during the downturn. In his words, "When it's raining gold, we reach for a bucket, not a thimble."
Most of the richest people in the world watched their wealth grow a great deal last year, as the rest of the world was on the verge of economic collapse. Those who had available cash to make acquisitions were able to buy property and stock on the cheap, leading to massive returns on investment. Last year, the average billionaire was worth $3 billion, and this year, he/she is worth $3.5 billion. The stock market also grew a great deal, so those who were in the spirit of investing were able to make an absolute killing.

There are 1,011 billionaires in the world this year, up from 793 a year ago. That is lower than the record of 1,125 in 2008. Out of the billionaires on the list from last year, only 12% of them saw their wealth go down. The world's billionaires control a combined total of $3.6 trillion dollars, and Americans manage about 38% of that money. Getting onto the list of billionaires is difficult, but getting off is very easy. Most billionaire wealth is highly dependent on the state of your investments and property ownership. That is what makes the Forbes Billionaires list change so much every year.

The top 100 billionaires according to Forbes did not include anyone of African decent, but there are Africans and African Americans included in the list of 1,011 billionaires world wide. Read more about African billionaires on the list like Nigeria's Aliko Dangote with an estimated net worth of $2.1 billion at AllAfrica.com.

Lawrence Watkins is the CEO of The Great Black Speakers Bureau and an MBA student at Cornell University. For more information, please visit LawrenceWatkins.com.

 

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]]>africanamericanwealthAliko DangoteAlikoDangotebillgatesblackwealthcarlosslimheluworldsrichestmanLawrence Watkins2010-03-16T13:10:00+00:00Single Black Women With $5 Net Worth: Broke, But Not Brokenhttp://www.bvonmoney.com/2010/03/16/single-black-women-5-new-worth/http://www.bvonmoney.com/2010/03/16/single-black-women-5-new-worth/http://www.bvonmoney.com/2010/03/16/single-black-women-5-new-worth/#commentsFiled under: , , ,

A recent study which found that the average single black women has a net worth of just $5 may appear to some people to be absurdly, shockingly eye-opening. But the sad truth is that this study represents just one facet of the mounting financial challenges and obstacles facing African American females, and African Americans as a whole.

Indeed, it's very well documented that Blacks in general lag behind their white counterparts on a number of financial measures, including:

- Homeownership rates (did you know 1 in 3 African American homeowners is currently in foreclosure?)
- Lncome levels
- Net worth
- College degree rates
- Dollars invested in the market

...And so on.

But the dilemma facing single black women may be particularly acute when you consider that many have no one to fall back on when times get tight and no real financial safety net. Add to the mix that many of these women are also parents, trying to raise children, and it's easy to see why this situation is so very dangerous. The plight of single black women has the ability to negatively impact an entire generation.

Moreover, when a person has essentially no net worth, it puts you at risk of a whole host of personal, financial and professional problems. Those individuals are more likely to be scammed -- sometimes because their desperation leads them to believe the siren songs of con men. Additionally, people with no financial resources are more likely to go deeper into a downward financial spiral. After all, if you're already broke, and your car breaks down, what do you do? In all likelihood, you whip out a credit card to fix that car, and then you pray that you'll somehow get the money later to be able to pay the bill.

People of few financial means are also more susceptible to being taken advantage of on the job. Consider, for instance, an administrative assistant, a nurse, a teacher or a retail worker who is living dangerously on the brink, in financial terms. If her boss refuses to give her a well-deserved raise -- or worse, does something crazy like makes sexual advances on the job -- how likely is this female employee to fight back or challenge such wrongdoing in the workplace? In many cases, she won't simply for fear of losing her job.

I don't know what all the answers are to overcome this huge problem. But as a black woman, I know that we've got to do better. We must. If not for ourselves, then certainly for our children. We simply must.

On a positive note, I am encouraged everyday by the remarkable resilience that I see displayed all around me by African American women. We are fighters. We persevere. We strive against all odds. I can't tell you how many Black women have written me over the years, or come up to me at financial workshops, and shared their personal stories of anguish and financial stress. Yet, one thing remained constant in most of those stories. They had hope -- or at the very least, they were reaching out for hope. They believed they could have a better future. Therefore, they were seeking guidance.

So if you're one of those black women (single or married) who is broke, keep your head up. Be inspired by positive examples you see and be encouraged by those around you who are getting ahead. Don't hate on others who are prosperous. Learn what they do well, and emulate it. Also, maintain an upbeat spirit and outlook, even through the tough times.

You may be broke. But you're not broken.

Follow The Money Coach(R) on Twitter!

Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times bestseller, 'Zero Debt: The Ultimate Guide to Financial Freedom.'

 

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]]>Lynnette Khalfani-CoxLynnetteKhalfani-coxSingle black women have median net worth of only 5SingleBlackWomenHaveMedianNetWorthOfOnly5Lynnette Khalfani-Cox2010-03-16T12:31:00+00:00What are the Top Schools for Entrepreneurship?http://www.bvonmoney.com/2010/03/15/top-business-schools-entrepreneurs/http://www.bvonmoney.com/2010/03/15/top-business-schools-entrepreneurs/http://www.bvonmoney.com/2010/03/15/top-business-schools-entrepreneurs/#commentsFiled under: ,


CNN's financial website has listed the top five places to study if you want to be an entrepreneur. I have been an entrepreneur for a few years now, and I can tell you that it's not a place for those who are short-sighted or weak minded. You don't always know where your next month's pay is coming from, and you have to be able to manage people. But the other side of it is that you get more freedom than you have from working at a job, and you also have a chance to make a lot of money if you do things the right way. The verdict for me is that I love running my own business.

The top program on the list was Babson College. Babson has tuition of $35,000 per year, and they ask students to run a real business. The student business is expected to turn up a profit in the first year. They also do a challenge similar to 'The Apprentice' show to see who the best entrepreneur is in the school.

Next on the list is Indiana University, with has an out of state tuition of $41,000. In-state tuition is $22,000. Students are expected to pitch their ideas to outside investors, which is important when trying to get funding for your business. The most difficult thing about being an entrepreneur is finding the money to finance your company. Most small businesses die from a lack of money, not a lack of profitability.


With an out of state tuition of $27,000, The University of Texas seems to be a better business choice than Indiana University. In-state tuition is $13,000. Michael Dell, the founder of Dell computer, has been a big benefactor of the school, leading to a strong emphasis on technology.

A big surprise on this list is that St. Louis University comes in at number four. You would hardly think that this school would be in the top five schools in the country, but their outstanding faculty have done a good job. Their strength is that the classes are small and taught by real entrepreneurs. Their weakness is the price tag: $49,000 per year. I would rather go to Texas!

Rounding out the top five is Belmont University in Nashville, with a price of $40,000 per year. It is the only school to offer a program in Social Entrepreneurship and also has a long-standing program on music and business. They also have several businesses on campus that are run by students. I love their approach.

An important point to remember is that sometimes, you don't have to spend thousands of dollars to learn how to run a good business. You can go to a couple of boot camps and then jump right in. Your customer doesn't care if you have a degree or not, they only care that you offer them good service. Just ask Bill Gates, who dropped out of college in order to start Microsoft.


Lawrence Watkins is the CEO of The Great Black Speakers Bureau and an MBA student at Cornell University. For more information, please visit LawrenceWatkins.com.

 

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]]>africanamericanentrepreneurshipblackentrepreneurshipLawrence WatkinsLawrenceWatkinstopbusinessschoolstopentrepreneurshipprogramsLawrence Watkins2010-03-15T15:55:00+00:00Rapper Jay-Z Gets Major Criticism for Taking Homes to Build Stadiumhttp://www.bvonmoney.com/2010/03/14/rapper-jay-z-gets-major-criticism-for-taking-homes-to-build-stad/http://www.bvonmoney.com/2010/03/14/rapper-jay-z-gets-major-criticism-for-taking-homes-to-build-stad/http://www.bvonmoney.com/2010/03/14/rapper-jay-z-gets-major-criticism-for-taking-homes-to-build-stad/#commentsFiled under: , ,

I curiously watched the press conference held last week to celebrate the New Jersey Nets (well, not quite New Jersey anymore) stadium set to be built in Brooklyn. A group of investors, led by Bruce Ratner, were joined by many prominent New York public figures to celebrate the ground-breaking of one of the highest impact economic endeavors in the history of Brooklyn. Jay-Z is part of the group of investors who bought the Nets, so of course he attended the ceremony.

The excitement of bringing a professional sports team to a city is overwhelming. Teams can bring out a sense of community spirit and unity which ultimately helps provide a little meaning in a complex world. Cities compete to bring teams to their town because the fans want them. Cities give teams extensive tax subsidies and even offer to use eminent domain to take property away from residents who are not willing to sell their homes in order to have the stadium built. Sounds terrible, doesn't it? Well, sometimes it can be.

When I was asked whether or not it's a good idea for Jay-Z, Ratner and their investment group to build the stadium in Brooklyn, my response was simple: It depends. Should the government give subsidies or be allowed to use eminent domain to take over the property of residents who don't want to sell? Again, it depends. What does it depend on? Let me count the ways:

1) City governments give up a great deal of money in order to obtain professional sports teams: Government subsidies can make sense, given that investment must be made in order to improve the long-term tax base for the city. If the subsidies exceed the amount of the revenue increase, then you've got a problem. The truth is that many cities overpay for professional sports teams, mainly because residents are incredibly irrational about the idea of having a team in their city. A pro sports team is a tremendous source of pride and excitement, leading some cities to make nasty deals with the devil.

2) Eminent domain might be necessary to use in some cases, but is now in danger of being abused: Whether we like it or not, eminent domain can be a good thing for a community. When massive projects are underway, there are always going to be some residents who choose to hold out no matter what. If they are standing in the way of progress, an argument can be made that the resident should be paid for their home and asked to move for the benefit of the community. The big problem, however, is at least two-fold. First, residents are not always paid fair market value: Jay-Z and his investment group have been accused of taking advantage of eminent domain in order to buy homes at below fair market price. The second problem with eminent domain is that private business interests, such as this one, can use eminent domain (through city officials) to maximize their own profits. It's one thing if eminent domain is being used to build a school, courthouse or non-profit entity. It's another thing when it's being used to build a for-profit business that will help the rich get richer and kick the poor out into the street. In that regard, Jay-Z has a serious image problem, as even I am trying to determine if he is good for urban America or not.

3) Pro sports teams are not like other businesses: You see, the NBA, NFL, NCAA, NHL, etc. are not like other businesses. They have a tremendous amount of oligopolistic power supported by the federal government. You can't just create an NBA team in your city and find your own players. You have to buy one of the few teams available from the league and they have to choose you. This creates an imbalance of supply and demand, since there are fewer teams available than there are cities that want them. Teams take advantage of this imbalance by playing the cities off each other, and the winning city can become the big financial loser. Whether the city of Brooklyn wins or loses in the Jay-z/Ratner/Nets deal will depend on the degree of diligence public officials and community leaders have when it comes to monitoring the return to the community from the presence of this team.

4) Is Jay-Z really a player in all this or is his urban following being used to persuade city residents? Some have argued that Jay-Z is part of this investment group for strategic reasons. They claim that his name and face are being used to lend credibility to those who might be skeptical of a pack of wealthy white guys coming in and buying up homes from poor people on the cheap. The critics are probably right on some level. The truth is that Jay-Z's visibility is certainly a valuable asset that will help the group achieve it's objectives. Additionally, there is the added risk that Jay-Z is yet another urban icon used to convince the public to do something they don't need to do, similar to Montel Williams selling payday loans, Magic Johnson's Rent-a-Center commercials and Russell Simmons' sale of the Rush Card to those who don't have bank accounts. I am not sure if Jay-Z is being manipulated or not, but I am hopeful that if his image is being used to convince people to support this project, he and other guardians of the community do not open the door for mass exploitation in exchange for personal gain. That would put Jay at risk of becoming yet another slum lord.

Do I think Brooklyn should get an NBA team? Sure, why not? I like sports and I don't blame residents who are excited about this project. Additionally, government and business interests become risky, yet necessary bedfellows in a capitalist society. If this project works out well, it certainly may help the city in the long-run. Simultaneously, for those who are in love with the idea of Jay-Z and Ratner bringing this team to Brooklyn, it is important to remember that many professional sports teams have financially violated the residents of cities across America. Citizens are on the weak side of the negotiation, since the residents have far more loyalty to the team than the owners have to the city. So, if Ratner and company hold the city hostage for more money in a few years, the citizens of Brooklyn will only have themselves and their elected leaders to blame.

The Jay-Z/Ratner/Nets saga is to be continued. We won't know if this was a good decision for another 10 years.


Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>black scholarsblack wealthBlackScholarsBlackWealthbruce ratnerBruceRatnerdr boyce watkinsDrBoyceWatkinsjay zjay z new jersey netsJayZJayZNewJerseyNetsBoyce Watkins, PhD2010-03-14T04:32:00+00:00Black Homeownership Problems: Many Upside Down Mortgages, Money Tighthttp://www.bvonmoney.com/2010/03/10/black-homeownership-problems-many-upside-down-mortgages-money/http://www.bvonmoney.com/2010/03/10/black-homeownership-problems-many-upside-down-mortgages-money/http://www.bvonmoney.com/2010/03/10/black-homeownership-problems-many-upside-down-mortgages-money/#commentsFiled under: , ,

Black American wealth has dropped dramatically during the latest recession. The recent meeting between Rev. Al Sharpton, Marc Morial, Ben Jealous and Barack Obama underscored the urgency of dealing with the financial challenges currently being faced by African Americans. One of the critical areas in which black people are being hit hardest is home ownership. Many millions of Americans are now "upside down" in their mortgages, meaning that they owe more money than their home is worth. Yes, this can be financially devastating.

I did a segment with MSNBC the other day discussing the topic, so I thought I'd share the advice with my AOL Black Voices family. After teaching Personal Finance at Syracuse University for a few years, I am finding that my PhD is being put to use more than ever during this recession. So, please humor me as I give a quick "financial brain dump" and share my thoughts on how to deal with the mortgage crisis:

1) Always buy less home than you can afford: One of the great challenges that many of us face in Black America is that we always love to show our success to others. What better way to prove to mama that you "made it" than to buy a big, fat house that you can barely afford. The problem is that by stretching your dough and living paycheck to paycheck, you are making yourself highly vulnerable to short-term economic fluctuations. Yes, I am talking to the doctors, lawyers, and "big ballers" out there too. Make sure your mortgage payment doesn't exceed 30 - 35 percent of your after tax take-home pay. That's a good benchmark. Also, make sure you save at least 10 percent of the money you bring home - no excuses.

2) If you can swing it, this is a great time to buy a home: It's tough to get banks to loan money during this recession, but they are starting to loosen up a little bit every single day. President Obama has introduced tax credits and other incentives to purchase a home, so you might want to give it a try. Best of all, home prices are lower than they've been in a while, so you might be able to get something nice for a reasonable price, especially in the south.

3) If your mortgage is upside down, don't run for the hills just yet: If the value of your home has dropped dramatically, you might want to consider your options. Don't just stop paying the mortgage, as many Americans have done. Think about whether you are a long-term or short-term owner. If you are long-term, you might want to ride it out. Consider whether or not you can actually afford the mortgage. If you can still pay it, you may want to just let the value of the home naturally appreciate back to its normal value. At the very least, this recession has taught us all valuable lessons about the risk of taking home equity loans - protect your equity at all costs and keep building it. You certainly don't want to lose equity by paying for a vacation.

4) Weigh all your options, even the "nuclear one": Your bank does not want you to default, so if you find yourself in serious financial trouble, try to talk to your banker to see if there are options. If there are not, then the "nuclear option" might be on the table: walking away from the mortgage altogether. While I don't recommend doing this unless you absolutely have to, the truth is that if you can withstand the damage that will be done to your credit report, you can at least put yourself in position to financially downsize your life. But remember that walking away from a mortgage should be a last resort.

5) Cut costs, find new revenue streams: Right now on a piece of paper, write down a list of all the places where you get your money. If you only have 1 - 2 items on that list, then you are in serious danger of having your income supply shut down if things go bad for your employer. Consider finding a "side hustle" that can supplement your income: It might be selling Avon, cutting grass, holding a part-time job, baby sitting for the neighbors, or doing hair for your friends. Find that extra path to getting what you need, since there is no such thing as job security when you've only got one job.

Financial trouble is not the end of the world. You will survive, and you will be stronger because of your hardship. Use this recession as a long-term lesson about the value of saving, investing and managing your money. It can always be worse than this.

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american wealthAfricanAmericanWealthblack financial expertsblack home ownershipblack scholarsblack wealthBlackFinancialExpertsBlackHomeOwnershipBlackScholarsBlackWealthdr boyce watkinsDrBoyceWatkinsBoyce Watkins, PhD2010-03-10T23:29:00+00:00Black Barbies Sold For Half the Price of White Barbies at Walmarthttp://www.bvonmoney.com/2010/03/10/black-barbies-sold-for-half-the-price-of-white-barbies-walmart/http://www.bvonmoney.com/2010/03/10/black-barbies-sold-for-half-the-price-of-white-barbies-walmart/http://www.bvonmoney.com/2010/03/10/black-barbies-sold-for-half-the-price-of-white-barbies-walmart/#commentsFiled under:

Black Barbies are being sold at certain Walmart stores for much less than white versions of the same doll. The New York Daily News Reports:

Photos on Guanabee.com (first shown on a site called Funny Junk) show the Ballerina Theresa Barbie doll, who is black, and the Ballerina Barbie doll, who is white, hanging side by side in a store. Price of the black Barbie: $3.00. Price of the white Barbie: $5.93.

The photo was reportedly taken at a Walmart in Louisiana, according to Guanabee.com.

Walmart told ABC News that the chain needed to clear space for new seasonal products and thus marked down the prices of many items.

While that is an interesting argument, Walmart is a company that is hardly well-known for a simplistic reasoning behind its operations. Usually Walmart deals with everything -- from people to produce -- with the hardest, coldest business eye imaginable. It has deep reasons for all of its actions. But it's not politically correct to say on the record that a black doll is just worth less. That would be too similar to stating that black females are worthless. Walmart may have decided to cut the prices of black Barbie dolls "to clear shelf space," but at what cost to black girls' self-esteem? This video shows how preferences over a doll's color says a lot about the low self-esteem of black children.


Find more videos like this on National African American Congress Forum


Walmart is promoting the belief, which is created by society at large, that black is "less than" white. Is that horrible effect worth "clearing the shelves"? Not to corporate executives who possess souls. If this story picks up steam, it could even further tarnish Walmart's public reputation for insensitivity -- which would be bad for business at the very least. But at least the concern over the bottom line might inspire this global behemoth to be aware of it's emotional impact on communities through its practices.


 

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]]>Alexis StodghillAlexisStodghillbarbieBlack BarbieBlackBarbiewal-martwalmartAlexis Stodghill2010-03-10T18:10:00+00:00Celebrity Tax Troubles: Scandals & Stories of Famous Tax Evasionhttp://www.bvonmoney.com/2010/03/10/celebrity-tax-troubles-famous-tax-evasion/http://www.bvonmoney.com/2010/03/10/celebrity-tax-troubles-famous-tax-evasion/http://www.bvonmoney.com/2010/03/10/celebrity-tax-troubles-famous-tax-evasion/#commentsFiled under: ,

When actor Wesley Snipes and stand-up comedian Sinbad were accused of owing millions in overdue taxes, they became some of the most high-profile celebrities in recent years to run afoul of the Internal Revenue Service.

But Snipes and Sinbad are hardly alone. There is actually a long history of actors, singers, athletes, entertainers and celebrities of all kinds getting chased by the tax man.

Here is a list of some high-rollers currently making news for having major tax headaches - along with a few celebrities from the past who have also endured tax troubles.

Actor Red Foxx
His parents named him John Elroy Sanford, but most of us knew him by his stage name: Redd Foxx. He was also famous for playing the lead role in the 1970s hit sitcom "Sanford and Son." In his later life, though, Foxx battled the IRS and even saw his Las Vegas home, furniture and household belongings seized by IRS agents in 1989 because of unpaid debts. When Foxx died of a heart attack in 1991 he still owed the IRS, which had been after him for $755,000 in back taxes.

Singer Otis Williams
We all remember The Temptations, right? Well, Williams was the tenor who co-founded this famous Motown group. He's also the last surviving member of the original group. It's a shame that after 50-plus years of having his records heard all over the world, Williams presently owes the IRS an estimated $176,000.

Singer Martha Reeves
Here's another big name from the Motown era. Martha and the Vandellas certainly made a name for themselves back in the day, especially with the hit song "Nowhere to Run." Sadly, it looks like Reeves couldn't outrun her tax issues either. She was a Detroit City Councilwoman from 2005 to 2009. But that hasn't stopped her from currently being in tax debt to the tune of about $280,000.


Rapper Flavor Flav
What time is it?! For this rapper-turned-actor, it's apparent time to pay the piper. Despite his renewed popularity on several VH1 reality television series, Flavor Flav still apparently has to get his money right. He's being chased to fork over $183,000 in past due taxes.

Comedian Eddie Griffin
The State of California came after this famous funnyman, claiming he owes roughly $142,000 in back taxes. At least Griffin is keeping his sense of humor. You may remember that he actually did a VH1 series, appropriately called "Going for Broke."

Boxer Evander Holyfield
The one-time heavyweight boxing champ reportedly owes the IRS more than $145,000 in back taxes for several years dating back to 2000. Additionally, the "Real Deal" Holyfield was slapped in 2009 with a tax lien against his home in Fayetteville, GA.

Actor/Comedian David Alan Grier
He's awfully funny. But his awful tax problems are no laughing matter. Best known for his work on "In Living Color," Grier is said to owe $50,000 in back taxes.

Singer Tony Braxton
Braxton has filed for bankruptcy in the past and weathered her share of financial woes. The songstress makes this list, however, for failing to pony up $79,000 in taxes owed to Uncle Sam.

Gospel Singer BeBe Winans
He's a brother to CeCe, and best known for being part of the famous and talented Winans family. Success seems to have come at a price, however: in this case, a $1.2 million price tag in terms of taxes owed.

Author Terry McMillan
We all read the book. Then we saw the movie. I'm talking, of course, about "Waiting to Exhale," the popular novel that was transformed into a big screen hit. In fact, two other McMillan books were also made into movies, including "How Stella Got Her Groove Back." Despite all her success, McMillian is said to owe $253,446 in back taxes. With another movie "Getting to Happy" due out in late 2010, here's hoping McMillan herself gets her groove back - financially, that is - along with all the rest of the people mentioned above.

This list, of course, if just the tip of the iceberg when it comes to celebrities and their tax issues. And needless to say, African American celebrities are far from alone in facing financial woes. Ten other well-known names with tax problems include:

o. Olympic swimmer Michael Phelps: $23,000 owed
o. Hockey star Darren McCarty: $62,000 owed
o. Model Gisele Bundchen: $72,000 owed
o. Actress Zsa Zsa Gabor: $118,000 owed
o. Actor Burt Reynolds: $225,000 owed
o. Actor Stephen Baldwin: $1,084,000 owed
o. Photographer Annie Liebovitz: $1,500,000 owed
o. Actress Pamela Anderson: $1,952,000 owed
o. Golfer Jim Thorpe: $5,400,000 owed
o. Actor Nicolas Cage: $6,250,000 owed

And you thought you had money problems.

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money.

 

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]]>celebrities tax problemscelebrities with tax problemscelebritiesTaxProblemsCelebritiesWithTaxProblemscelebrity tax evasionCelebrity Tax TroublesCelebrityTaxEvasionCelebrityTaxTroublesfamous tax cheats 2009Famous Tax Evasionfamous tax scandalsfamousTaxCheats2009FamousTaxEvasionFamousTaxScandalsLynnette Khalfani-CoxLynnetteKhalfani-coxtax evasion scandalstaxesTaxEvasionScandalsLynnette Khalfani-Cox2010-03-10T16:41:00+00:00CEO Compares Michelle Obama to a Chimp in "Political Humor" Emailhttp://www.bvonmoney.com/2010/03/09/ceo-compares-michelle-obama-to-a-chimp/http://www.bvonmoney.com/2010/03/09/ceo-compares-michelle-obama-to-a-chimp/http://www.bvonmoney.com/2010/03/09/ceo-compares-michelle-obama-to-a-chimp/#commentsFiled under: ,

The CEO of Tennessee's Hospitality Association, Walt Baker, has joined the club of high-ranking public figures to hurl racial slurs at members of the first family. Hip Hop Wired has the full story:

It was reported by the Tennessean of Nashville that CEO Walt Baker's e-mail compared Obama to the sidekick of character Tarzan, Cheeta. The message features a picture of the first lady caught off guard with her lips pursed, accompanied by a chimp that has a similar expression on its face.

Since news broke, Baker has apologized for his actions.

How many of these figures would be up here apologizing if they weren't caught? There's no point in saying sorry for something that had its full intentions when the idea first came to mind.

On Saturday, he stated, through e-mail to Nashville Metro Council, that the message was not meant to be looked at as being something malicious, but was only trying to provide some type of "political humor."


In his apology, Baker stated: "As I forwarded it, I did not think or consider its implications, other than that it was political humor. I am saddened that anyone misinterpreted the sentiments behind the email." Newsflash to all those who don't know -- comparing black people to animals, particularly monkeys, has a long and horribly painful history in the United States and it remains demeaning and offensive. It is clear that Baker knew what he was doing, and at the moment his desire to get a rise out of his fellow Obama-bashers overtook the cool-headed composure that is required of a CEO. Either that, or he is truly ignorant of social relations in the U.S. Anyone who lacks enough basic social grace to refrain from sending an off-color email should not hold a position of such high authority.
From a business perspective alone (leaving politics and possibly racist beliefs out of the picture), Baker risked his reputation and the esteem of his organization to tell a joke. And the result? The Nashville Convention and Visitors Bureau has dropped their contract with the marketing firm he helms. Was that worth a "political" laugh among friends?

See the full email here, and leave your comments on Michelle being called a monkey, yet again, below.

via Bossip

UDPATE: Former CEO Fired Over Remark

 

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]]>CEOChimpfirst lady michelle obamaFirstLadyMichelleObamaMichelle ObamaMichelleObamaAlexis Stodghill2010-03-09T15:36:00+00:00It's No Joke: Oscar Win May Help Mo'Nique Reap Millionshttp://www.bvonmoney.com/2010/03/09/oscar-monique-millions/http://www.bvonmoney.com/2010/03/09/oscar-monique-millions/http://www.bvonmoney.com/2010/03/09/oscar-monique-millions/#commentsFiled under: , ,

By winning the Oscar for Best Supporting Actress, Mo'Nique's star power -- and her earning power -- just went up dramatically.

Any victory at the Academy Awards gives the winner some serious bragging rights, instant recognition and additional credibility. For some stars, however, winning an Oscar also translates into an enormous payday. And that's likely to to be the case for Monique -- particularly since she proved to Hollywood that she's more than just a funny, lovable comedian.

In fact, by taking a huge career risk and playing an unpopular character -- an abusive mother named Mary Jones in the emotionally gut-wrenching film 'Precious' -- Mo'Nique showed off some serious acting chops and set herself up to get more serious, and more lucrative job offers in the future.

It's no doubt only a matter of time before a range of scripts, movie deals, and million-dollar film offers start coming Mo'Nique's way.

The actress herself seemed to acknowledge that her career gamble paid off, at least indirectly, when she thanked her husband and told him that he was right in encouraging her to take on such a gritty role.

"Thank you," Mo'Nique told her hubby during her acceptance speech, "for showing me that sometimes you have to forgo doing what's popular in order to do what's right. Baby, you were so right."

If Mo'Nique can leverage her current status as one of Hollywood's newest rising stars into a bigger payday, I say more power to her. Of course, she won't be the first to cash in on her Oscar gold. Previous Oscar winners have catapulted to bigger and better things, and have successfully parlayed their wins into more deals and more dollars.


Take Adrien Brody, for example, who won the best actor Oscar in 2003 for 'The Pianist.' In the wake of that win, Brody told Reuters: "I'm now more of a commodity. I'm a safer bet on a business level." He added that winning an Oscar "does provide you more opportunities." Brody has gone on to do everything from movies, including a remake of "King Kong," to diet Coke commercials and appearances in television and music videos. He's also now slated to star in a sequel to the blockbuster movie Predator.

For her part, Mo'Nique's acting gigs and other opportunities will no doubt be wide open, given the incredible acting range she displayed in 'Precious.'

As she gets her due in Hollywood, I just hope Mo'Nique will also sidestep some of the financial pitfalls that other celebrities have been plagued by after shooting to bigger levels of fame and riches. I'm talking about problems like overspending, failing to pay taxes, or getting embroiled in lawsuits or personal dramas such as divorce -- all of which can wipe out one's riches quicker than you can say "And the Oscar goes to...."

No matter what happens in Mo'Nique's professional and personal future, I am sure she'll keep her down to earth sense of humor. And while winning an Oscar and beating out the likes of Penelope Cruz and Maggie Gyllenhaal is no joke, fortunately, for Mo'Nique, that golden statue means she may soon be laughing all the way to the bank.

Share your thoughts with me. Do you think Mo'Nique's Oscar win will help her land more serious, financially rewarding roles as an actress? Or do you think she'll continue to be seen primarily as a comedic talent?

Follow The Money Coach(R) on Twitter!

Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times bestseller, 'Zero Debt: The Ultimate Guide to Financial Freedom.'

 

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]]>Academy AwardsAcademyAwardsLynnette Khalfani-CoxLynnetteKhalfani-coxmillionsmoneymoniqueoscaroscarsLynnette Khalfani-Cox2010-03-09T13:33:00+00:00Black Professor Becomes Major Media Entrepreneurhttp://www.bvonmoney.com/2010/03/06/black-professor-becomes-major-media-entrepreneur/http://www.bvonmoney.com/2010/03/06/black-professor-becomes-major-media-entrepreneur/http://www.bvonmoney.com/2010/03/06/black-professor-becomes-major-media-entrepreneur/#commentsFiled under: , ,



If you are a black scholar in America, then you probably know about the work of Dr. Lee Jones. Dr. Jones is the founder of the largest organization of black male PhDs, The Brothers of the Academy. He has also spun his amazing organizational skills into the creation of Inspire Magazine, one of the strongest and fastest-growing publications in America.

AOL Black Voices had a chance to catch up with Dr. Jones:
1) Tell us about your career path over the past 15 - 20 years.

First let me say that I have been truly Blessed to have the opportunity to live within my purpose. I am doing exactly what I want to do, which is to serve and provide inspiration. I have met my Purpose in Person! I have enjoyed a very peaceful career in higher education thus far. I started as a Hall Director at The Ohio State University and moved up as Coordinator of the Mentoring Program, Director of Retention, Executive Assistant to VP of Business Affairs and adjunct professor before leaving Ohio State. I went on to Washington State University, where I served as Director of The Office of Multicultural Student Serves and Assistant Professor in Educational Leadership. It was at Washington State University, where we started Your Voice TV Show. After leaving WSU, I accepted a job at Florida State University as Associate Dean for Education and Associate Professor Educational Leadership and Policy Studies. I earned tenure at FSU. I also served as Executive Producer and Host of Your Voice TV. After leaving FSU, I accepted job as Dean of The School of Graduate Studies and Full Professor of Educational Leadership. Currently I am Professor, President and Executive Editor of InSpire Magazine! I have just started producing and hosting B-InSpired Talk Radio www.binspiredtalkradio

2) You created Brothers of the Academy, the largest organization in America for Black Male PhDs. Why did you create the group and how has it evolved through time?

Brothers of The Academy holds a special place in my heart. The organization was conceived by many people. I was selected as the first president to develop, nature, and cultivate the organization. We developed the organization with idea to nurture and cultivate collaborative scholarship among African American males in higher education. We were hoping to entice African American men to see the obtainment of advance degrees as a conceivable goal. We also wanted to assist brothers in obtaining tenure on their respective university campuses. As president emeritus, I am proud when I travel across the country and see brothers who are still a part of the organization and to know that we assisted in some small way with their success.

3) Why did you start Inspire Magazine? What is Inspire all about?

InSpire Magazine has been a long term goal that I thought about in the early stages of my career. I was tired of picking up magazines and seeing images that were degrading and stories that sensationalized peoples' pains and sorrows. I know that there is a market out there for people who want to hear and read about inspirational things that are going on in the world. I am not a complainer, so I started my own magazine! We have some very positive people who work behind the scenes to make InSpire what it is. We have received VERY positive comments from our readers and supporters. You may visit our website at www.inspiremag.org Additionally, we have series of other initiatives under the auspices of our parent company: InSpire Enterprise, LLC:

InSpire Us Foundation
ILEAD Institute
Be-InSpired Publishing
InSpire Attire
InSpire Film
Your Voice T.V.
B-InSpired
Talk Radio
Etc.

4) You have a film coming out. What's the nature of the film and where can readers find it?

Yes. The movie is called "Let Your Haters Be Your Motivators" - LetYourhatersBeYourMotivators.com. This is a movie that actually derived from a speech I wrote back in 2006. I was going through a very trying time. I had just lost my oldest sister as well. This particular speech was one of my most requested speeches. I had no desire to develop the speech in to a movie, nor did I know a thing about producing movie. Well after God spoke to me, I called some friends and colleagues in New York and California and they gave me a crash course. The movie speaks to "haters" of which all of us have, who try to devalue you and your accomplishments. It is really a teaching movie. It points out the Haters, their motives and their behaviors. It also teaches those who are being "Hated On" how to deal with them. The trailer to the movie is on our website.

5) You are a powerful motivational speaker. What are the topics you tend to address?

Thank You! I do not consider myself a motivational speaker. Motivational speaking implies that you are going to make someone responding a certain way that they otherwise would not have done. I actually think that is quite presumptuous. While people introduce me as a motivational speaker, I am more of an Inspirational Speaker, In fact I have been given the undeserved title as "King of Inspiration." Some of my topics include: If You Are Not On The Way, Then You Are In The Way! The Consequences of Being Trifling! What is Your Word Worth! When Leadership Calls, Will You Be Ready? Just Enough Is Not Good Enough, etc. You may visit my personal website at AboutDrLeeJones.org.

6) What are your plans for the future?

My plans are ordered by God. While I lead a highly visible life with being a Professor, TV and Radio Personality, Magazine Owner, National Orator (speaker), and servant, my life is pretty simple. I just simply want to serve and make a contribution. I have been in leadership positions all my life-from captain of my little league baseball team to CEO and President of InSpire Enterprise, LLC. I know a little about how difficult is to lead, especially leading people who, they, themselves do not know who they are. I know what it means to lead a group of people who want to be led. I know what it means to lead people who are thirsty for leadership. I have been very Blessed in that regard. So, my plans are to keep leading and keep serving!

7) Is there anything else you'd like to share with our AOL Black Voices audience?

Yes. I believe that each person living has been placed here for a purpose. Unfortunately 94% of all the people we meet will spend most of their time talking about what they are going to do, what they should have done, why they did not do it, etc. The other 4% of the people we meet due to their physical and/or mental alignment are not in a position to do what they really want to do. But, there are 2% of the people you will meet who will spend their time doing what the other 94% of the people said could not be done. I want to simply ask, are you a 2percenter? Now, Go Meet your Purpose in Person!

This profile was done by Dr. Boyce Watkins. Dr. Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american scholarsAfricanAmericanScholarsblack scholarsBlackScholarsdr boyce watkinsdr lee jonesDrBoyceWatkinsDrLeeJonesinspire magazineInspireMagazineBoyce Watkins, PhD2010-03-06T07:23:00+00:00Three Ways to Save More Money By Getting Paid to Savehttp://www.bvonmoney.com/2010/03/05/three-ways-to-save-more-money-by-getting-paid-to-save/http://www.bvonmoney.com/2010/03/05/three-ways-to-save-more-money-by-getting-paid-to-save/http://www.bvonmoney.com/2010/03/05/three-ways-to-save-more-money-by-getting-paid-to-save/#commentsFiled under: , , , ,

Everyone wants to save more money. Yet many cash-strapped people feel like they "can't afford" to save. One way to make saving each month a little easier is by super-charging your savings - and making your money work as hard as you do. Here are three special ways to turbo-charge your savings. Try them and watch your savings grow faster than ever.

Strategy #1: Open an Individual Development Account or IDA

An Individual Development Account, or IDA, lets low-to-moderate income earners save money for a specific goal - such as a down payment on a house or starting a business - and receive matching funds from non-profit groups, corporations, and government agencies. Many IDAs provide a $3 to $1 match, meaning for every dollar you save, you get $3 in contributions. What's the catch? You must agree to save money for a set period of time, usually at least one year. Some IDAs require you to set aside money for two or three years. Whatever the term, it's worth it - because you'll get rewarded with a huge cash bonus in the end.

The Payoff: If you save $100 a month, or $1,200 in one year, and your IDA has a $3 to $1 match, at the end of a year, you'll receive a $3,600 contribution.

Resource: Visit http://www.IDAnetwork.org to find an institution in your area that offers Individual Development Accounts.


Strategy #2: Open a High-Yield Savings Account

Are you frustrated by savings accounts that are paying a paltry 0.5% or less in interest? Don't despair. There are better yielding options available - if you shop around. For example, the new InterestPlus Online Savings Account from Capital One currently carries a 1.45% Annual Percentage Yield (APY) - well above the national average. Plus, you can get a quarterly bonus equal to 10% of the interest you earned in the previous quarter. That's a fantastic deal because you're basically getting paid twice to save.

The Payoff: Keep $2,500 in your Capital One savings account each month, and you'll earn an APY that's roughly three times the amount that's being offered elsewhere with other savings accounts.

Resource: Go to http://www.CapitalOne.com/directbanking to learn more about the no-fee InterestPlus Online Savings Account.

Strategy #3: Enroll in Your Company's Retirement Savings Plan

If your company has a 401(k) or a 403(b) retirement savings plan, and you're not contributing to it, you're making a big financial mistake. Not only are you missing out on the opportunity to set aside money for your Golden Years, you're also likely forgoing one of the best perks available to workers these days: a corporate match on your retirement contributions. Some companies offer a dollar for dollar match on the money you save for retirement, up to a certain percentage. Other firms offer 50 cents on the dollar. No matter the amount, it's free money. So it's foolish not to grab it.

The Payoff: Getting a dollar for dollar matching contribution from your employer's 401(k) plan translates into a 100% return on your money. Guaranteed. You'll never get that on Wall Street, or anyplace else.

Resource: Head to your company's Human Resources Department today, and get the enrollment papers you need to sign up immediately for your 401(k) or 403(b) plan. If you're already in the plan, consider boosting your contribution slightly. Also, read up on the benefits of having a retirement plan at the Employee Benefit Research Institute (http://www.ebri.org).

By using these three savings methods, you'll become a more diligent saver, you'll watch your money grow more quickly, and you'll make the process of saving money as pain-free as possible. Best of all, by turbo-charging your savings, pretty soon you'll feel cash rich instead of cash-strapped.

Follow The Money Coach(R) on Twitter!

Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times bestseller, 'Zero Debt: The Ultimate Guide to Financial Freedom.'

 

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]]>Lynnette Khalfani-CoxLynnetteKhalfani-coxSavingsaving moneySavingMoneyLynnette Khalfani-Cox2010-03-05T16:20:00+00:00Secret Millionaire Donates Her Fortune: More on Grace Gronerhttp://www.bvonmoney.com/2010/03/05/secret-millionaire-donates-her-fortune-grace-groner/http://www.bvonmoney.com/2010/03/05/secret-millionaire-donates-her-fortune-grace-groner/http://www.bvonmoney.com/2010/03/05/secret-millionaire-donates-her-fortune-grace-groner/#commentsFiled under:

Grace Groner lived as a secret millionaire in a modest, sparsely-furnished one-bedroom house. When she died at the age of 100, she shocked the world by leaving her alma mater, Lake Forest College, $7 million. It's not every day that someone donates her fortune to a worthy cause, after living a life of great financial restraint. The Chicago Tribune reports:

Like many people who lived through the Great Depression, Grace Groner was exceptionally restrained with her money.

She got her clothes from rummage sales. She walked everywhere rather than buy a car. And her one-bedroom house in Lake Forest held little more than a few plain pieces of furniture, some mismatched dishes and a hulking TV set that appeared left over from the Johnson administration.

Her one splurge was a small scholarship program she had created for Lake Forest College, her alma mater. She planned to contribute more upon her death, and when she passed away in January, at the age of 100, her attorney informed the college president what that gift added up to.

"Oh, my God," the president said.

Groner's estate, which stemmed from a $180 stock purchase she made in 1935, was worth $7 million.

The money is going into a foundation that will enable many of Lake Forest's 1,300 students to pursue internships and study-abroad programs they otherwise might have had to forgo. It will be an appropriate memorial to a woman whose life was a testament to the higher possibilities of wealth.

A testament indeed. Grace Groner's spirit will live on through her amazing act of generosity, which will touch the lives of many students and positively influence greater society for years to come. Her act of charity is a beacon of inspiration in our trying economic times. Having lived through the Great Depression, she knew that Americans can survive anything, especially if we focus on helping each other. Although Groner was a millionaire she chose to use her money in a way that would benefit all, showing that her spiritual fortune was at least as great as her material wealth.

via The Huffington Post

 

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]]>Alexis G. StodghillAlexisG.StodghillGrace GronerGraceGronermoneySecret Millionaire Donates Her FortuneSecretMillionaireDonatesHerFortuneAlexis Stodghill2010-03-05T15:08:00+00:00IRS Has $1.3 Billion in Unclaimed Tax Refunds for People Who Didn't File Tax Returnshttp://www.bvonmoney.com/2010/03/05/irs-1-3-billion-unclaimed-tax-refunds/http://www.bvonmoney.com/2010/03/05/irs-1-3-billion-unclaimed-tax-refunds/http://www.bvonmoney.com/2010/03/05/irs-1-3-billion-unclaimed-tax-refunds/#commentsFiled under: ,

If you haven't filed a tax return in years, the Internal Revenue Service wants you - and not in the way that you think.

The IRS is actually looking to return $1.3 billion in unclaimed refunds to roughly 1.4 million people who never filed a federal income tax return for 2006. If you happen to be among those non-filers, you must act fast because to collect any money you are owed, a tax return for 2006 must be filed by April 15, 2010. Under the law, you only have 3 years to claim a tax refund; after three years, any money that would have been due to you becomes the property of the U.S. Treasury.
Lots of people don't file tax returns for a host of reasons. Some people earned too little money, and weren't required to file. They may nevertheless be entitled to a refund, based on taxes paid or tax credits for which they were eligible. At other times, however, people don't file a return simply because they owe money -- or they're scared that they may owe money. Even if you owe the IRS, chances are you can work out a payment plan to clear up past-due payments. If you didn't owe money, and didn't file a 2006 tax return, you don't have to worry about penalties because penalties are only imposed on individuals who had taxes due.

According to IRS statistics, the typical unclaimed refund for 2006 is $604.


The states with the highest numbers of non-filers who have a 2006 tax refund waiting for them are: California (159,800 individuals); Texas (109,600 individuals); Florida (101,700 individuals); and New York (76,700 individuals).

What's more, many people who didn't file their taxes a few years ago may stand to gain even bigger refunds if they made less than approximately $38,000 in 2006 and claim the Earned Income Tax Credit.

For more information about getting an unclaimed refund, check out more on this IRS video in English or Spanish.

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money.

 

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]]>Lynnette Khalfani-CoxLynnetteKhalfani-coxtaxtaxesLynnette Khalfani-Cox2010-03-05T12:16:00+00:00Is a Mike Tyson-Evander Holyfield Boxing Rematch in the Works?http://www.bvonmoney.com/2010/03/05/mike-tyson-evander-holyfield-boxing-rematch/http://www.bvonmoney.com/2010/03/05/mike-tyson-evander-holyfield-boxing-rematch/http://www.bvonmoney.com/2010/03/05/mike-tyson-evander-holyfield-boxing-rematch/#comments
Published reports say talks are underway for a rematch between former heavyweight champions Mike Tyson and Evander Holyfield. If a deal is struck, the two aging fighters may tangle again perhaps as early as this year.

Tyson supposedly has a deal with promoter Don King to get back into the ring; Holyfield is already scheduled to square off in Las Vegas against south African fighter Francois Botha on April 17.

If Tyson and Holyfield do go toe-to-toe again, it will no doubt bring high drama, big ratings and lots of money -- at least for the event's organizers.



How much the two boxers would get in a potential rematch remains to be seen. Tyson, who's 43, last fought five year ago. Holyfield is 47. Even with their age, I still think a lot of people would pay money to see them go at it again.

Who can forget the infamous ear-biting incident between these two fierce opponents?

Some may wonder why Tyson and Holyfield would ever want to fight again. Both men have had their share of financial problems. Holyfield has faced foreclosure, lawsuits, and currently owes the IRS a reported $145,000 in back taxes. For his part, Tyson has filed for bankruptcy protection in the past, and blamed some of his financial difficulties on previous managers and advisers. So I suspect that economic issues may be driving them to get back in the ring more than anything else.

What are your thoughts? Do you think Tyson should try for a comeback? And should these two say "yes" to a rematch?

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money.

 

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]]>boxingbreaking newsBreakingNewsEvander HolyfieldEvanderHolyfieldLynnette Khalfani-CoxLynnetteKhalfani-coxmike tysonMikeTysonLynnette Khalfani-Cox2010-03-05T11:52:00+00:00Why You are Not as Financially Secure as You Think: Dr. Boyce Moneyhttp://www.bvonmoney.com/2010/03/04/black-wealth-african-american-wealth/http://www.bvonmoney.com/2010/03/04/black-wealth-african-american-wealth/http://www.bvonmoney.com/2010/03/04/black-wealth-african-american-wealth/#commentsFiled under: , ,


I'd like to ask you a quick question that I ask my students here at Syracuse University. It is also a question I had to honestly ask myself when I thought I was on top of the world after spending 12 years going through college and graduate school to earn a PhD in Finance (which was unbelievably difficult). The question is this: Do you have financial security? If you don't have financial security, do you at least have job security? If you believe your job is secure, then how many jobs do you have?

If you are like most Americans, you probably have just one job. I am not here to tell you that this is wrong. But, I am here to tell you that you might want to rethink what it means to be economically secure.


Economic security is not provided by just having a high income. In fact, in some ways, having a high income can make you less secure, since you are more likely to have higher monthly expenses. To some extent, having a high income from just one job can fool you into believing that you are financially secure, when the truth is that you might be one paycheck away from economic disaster.

I am an advocate of having multiple streams of income. I had to think this way when I became a public scholar, because being outspoken can usually threaten your financial security. Getting you fired is the first thing your enemies try to do when you say something controversial. Bill O'Reilly was almost successful in his attacks on me a couple of years ago, so my financial security came in handy.

Black people sometimes forget that our financial security is the key to social, psychological and spiritual security. The easiest way for someone to shut you up or control you is for that person to be the reason your children get to eat everyday. When someone controls your access to the things you most critically need, they ultimately control your fate.

How do you break the shackles of financial slavery? Let me offer a few suggestions:

1) Get a side hustle: If you are getting all of your money from one source, you are vulnerable if that source suddenly dries up. Challenge yourself to find at least 1-2 other ways to make a little extra money. You might consider taking a part-time job, selling Avon, cutting lawns on the weekends, anything. The amount of money you earn from your side gig probably won't be very much at first, but if you stick with it, you'll find that these extra sources will grow over time.

2) Save your money: Your money is similar to the water that your body needs in order to survive; that's why cash is often referred to as "liquidity." Imagine that you are drinking water from a faucet, and not saving any of the water in a bucket. If the faucet turns off for too long, you will eventually die. The best way to protect your self is to drink some of the water now, and then fill a bucket for the hard times.

3) Find a way to own something: Your labor is what we economists call "human capital." You use that capital every time you go to work and you then earn income from it. But human capital deteriorates and eventually makes it difficult for you to earn what you did when you were young and healthy. Also, there are limitations on how much income most of us can earn from our human capital. By putting your money into other forms of capital, such as rental property, "side hustles," stocks and other investments, you can have your money working for you, even as you sleep. As I mentioned in the article comparing Lebron James to Bill Gates, your money should be working just as hard for you as you are working for it. It takes time to get there, but when you do, it's quite empowering. That gives you natural diversity of income streams, and also allows you to have a higher income while doing less work than you were doing before.

4) Learn the fundamentals of entrepreneurship and teach that to your children: If you know how to create a job, then you can make it through the tough times. It doesn't mean you have to be a full-time entrepreneur, but by fostering an understanding of business within your children, you are teaching your kids how to find their way to financial liberation. Remember: your financial freedom is a critical key to your social and spiritual freedom. A financially secure man or woman has far more room to be courageous.

Dr. Boyce Watkins is the founder of the Your Black World Coalition. To have Dr. Boyce commentary delivered to your email, please click here.

 

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]]>african american scholarsAfricanAmericanScholarsblack financial expertsblack scholarsblack wealthBlackFinancialExpertsBlackScholarsBlackWealthdr boyce watkinsDrBoyceWatkinsBoyce Watkins, PhD2010-03-04T23:24:00+00:00Miami Couple Accused of Scamming Cuban-Americans In $135 Million Ponzi Schemehttp://www.bvonmoney.com/2010/03/03/miami-couple-ponzi-scheme/http://www.bvonmoney.com/2010/03/03/miami-couple-ponzi-scheme/http://www.bvonmoney.com/2010/03/03/miami-couple-ponzi-scheme/#commentsFiled under: , ,

Looks like the Cuban-American community has its own version of Bernie Madoff.

The U.S. Securities and Exchange Commission has charged a well-known Miami business man and his wife with running a $135 million Ponzi scheme that used bogus real estate investments to swindle hundreds of wealthy Cuban-Americans living in South Florida.

Gaston E. Cantens and Teresita Cantens (left) were founders and co-owners of Royal West Properties Inc., a real estate development company. They solicited investors through charity events, religious gatherings and via Spanish-language television ads.

According to the SEC, the Cantens convinced investors to pour money into the couple's real estate business by promising investors returns of 9 to 16 percent annually. But when property owners defaulted on their mortgages and Royal West's business soured, the Cantens used funds from new investors to repay earlier investors and keep the business afloat - making the venture a classic Ponzi operation, the SEC says.

Moreover, the Cantens misused more than $20 million from investors to live the high life, pay themselves huge salaries, and enrich their children and grandkids, the SEC alleges.



If the allegations against the Cantens are true, it's a shame to see yet another case of affinity fraud being perpetrated against an unsuspecting group of people who trusted individuals from their own community. In this case, it was Cuban-Americans who were allegedly scammed - largely because they believed the false promises of two Spanish-speaking people who "emphasized that Jesuit priests and other well-known leaders in the Cuban-American community had invested with Royal West," according to the SEC.

Bernie Madoff's $50 billion Ponzi scheme largely targeted the Jewish community. And there have been many other instances where people of all ethnic and religious backgrounds have swindled members of their own racial or religious groups.

To ensure that you are never victimized in this way, check out these tips from the SEC about how to avoid affinity fraud.

Also, let me hear from you about this case or your own experiences. Have you ever been financially conned by someone you trusted because they were a member of your church, shared the same ethnic or religious background, or perhaps belonged to similar social, civic or professional groups that you did?

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money.

 

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]]>Gaston E. Cantens and Teresita CantensGastonE.CantensAndTeresitaCantensLynnette Khalfani-CoxLynnetteKhalfani-coxmiamiPonzi SchemePonziSchemeSECLynnette Khalfani-Cox2010-03-03T14:21:00+00:00Money Management for Women: How to Be Selfish For the Greater Goodhttp://www.bvonmoney.com/2010/03/03/money-management-women/http://www.bvonmoney.com/2010/03/03/money-management-women/http://www.bvonmoney.com/2010/03/03/money-management-women/#commentsFiled under: ,

As women, we tackle an incredible amount of responsibilities every day. After juggling our demanding professional and personal roles - as employees or bosses, wives and partners, mothers, sisters, friends or volunteers - we often feel like there's no time for ourselves. Unfortunately, this can be a big mistake when it comes to your personal finances.

Instead of letting a never-ending stream of "things to do" cloud your day-to-day life, take time instead to position yourself and those you love for financial success. One way to do that is to put yourself first financially. Here are some ideas to get started -- especially for those of you who seem to sacrifice everything for others.

RELATIONSHIPS AND MONEY

The relationships we have with various people in our lives can serve to bolster our finances, or deteriorate them if we're not careful. As women, we must first learn to have a healthy relationship with money by ourselves, learning how to manage money properly, avoiding excessive debt, and by shattering the myth that money issues are either "too complicated" or "too boring" for us to handle. Once we start to properly handle our own financial affairs, then we can extend that healthy perspective about finances to how we deal with money when it comes to friends, family and loved ones.

Be Selfish - For the Greater Good

It may sound like an oxymoron, but being "selfish" about your personal finances actually can help you enhance the lives of others. How so? When you are financially secure, you're less stressed, so you can be more patient with the kids, more generous in your economic giving to religious groups or charity, and more productive at work. On the contrary, money problems can dampen all these things. To strengthen your financial standing, try implementing the following tips.



o. Establish a Personal Cash Cushion
Set aside three months worth of expenses to protect yourself and your family in the event of an emergency or some major unexpected expense.

o. Avoid Over-Spending On Others
Many of us are guilty of over-indulging our children and other family members with luxuries ranging from expensive clothing to electronic gadgets, or a house full of toys. Over-spending sets you back financially and sends the wrong money messages to those you love most.

o. Build Your Own Credit Rating
It's not enough to have joint credit accounts with a spouse. All women need to have credit in their own name, in order to establish a solid credit history and to learn how to manage credit wisely.

o. Maintain a Separate Account
Many couples share joint accounts to pay household bills - and that's fine. But having a separate savings or checking account gives you a heightened degree of financial autonomy and helps you become better at saving and budgeting too.

o. Learn to Just Say No
Too often, we create financial problems and stresses simply because we are afraid to say "No" -- or don't want to hurt someone's feelings. Summons the courage to say "No" to family members or friends who want to "borrow" money all the time, ask you to co-sign for credit when you know they're irresponsible, or who simply crimp your budget in various ways.

By adopting these strategies, women of all ages, incomes and backgrounds can create a secure, stress-free financial future.

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has also been featured in top newspapers including the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money.

 

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]]>Lynnette Khalfani-CoxLynnetteKhalfani-coxmoney managementMoneyManagementWomens HistoryWomens History MonthWomensHistoryWomensHistoryMonthLynnette Khalfani-Cox2010-03-03T14:06:00+00:00