Tri-State Defender


BUSINESS & ECONOMICS September 23 - 29, 2010


ON OUR WAY TO WEALTHY Creating generational wealth


ey or assets that get passed on after your death. When those children who receive it use it to build more wealth and then pass that wealth on to their children who in turn continue the same process, the result is the creation of generational wealth. The Rockefellers, Kennedys, Marriotts and Hiltons (frequently referred to as old money) are examples of passing on generational wealth. It takes time and a sta- ble foundation to build sus- tainable wealth. Why is building wealth so


Empowered…


TheMemphis Urban League 2010 Empowerment Luncheon featured a panel discussion tied into the theme “A Call to Action, Making Memphis: Mbraced. Mproved. Mployed. Mpow- ered.” The panelists included (right to left) Ruby Bright of theWomen’s Foundation for a Greater Memphis, Kenya Bradshaw of Stand for Children, and Dexter Muller of the GreaterMemphis Chamber. (Photo by Earl Stanback)


Fake site helps people spot loan scams


tion…guaranteed. Loans for a new business, college, or even a vacation. Consolidating the debt you already have. The loan you need, even if you’ve been turned down by other lenders because of a poor credit history. Loan specialists waiting to help you.


loan, but you soon find out there’s a fee you have to pay first. If you pay, it’s unlikely you’ll see the promised loan, and you run the risk of some- one using your personal infor- mation to steal your identity. That’s why the Federal


Trade Commission (FTC) cre- ated the Esteemed Lending Services


Web site


the company sounds rep- utable, and the offer is just what many people are looking for. Unfortunately, this is the pitch for an advance fee loan scam. Scammers promise you a


TheWeb site looks reliable,


The Federal Trade Commission created a sounds-good, not- true Web site to help consumers battle advance fee loan scams.


(http://wemarket4u.net/estee med/index.html). The compa- ny and site are fakes, designed to tip you off to the signs of an advance fee loan scam (and an important reminder that just because a site looks trustwor- thy doesn’t mean it is). Click on any link, and you’ll go straight to a page letting you in on the truth behind the site and telling you what you need to know to recognize advance fee fraud. It’s an opportunity for peo- ple to see what an advance fee


scam looks like, and avoid losing their hard-earned mon- ey.


“teaser sites.” Learn to weigh the evidence in diet products and spot claims that signal a rip-off


( h t t p : / / w e m a r k e t 4 u .net/fatfoe/index.html), or to evaluate health claims through Glucobate (http://wemarket4u .net/glucobate/index.html), a made-up diabetes treatment. Find them all at wemar-


ket4u.net. at FatFoe The FTC also offers other


Esteemed Lending Services A loan for every situa-


are securing our own financial future, which is the first step to ensuring that we will have enough money for a comfort- able retirement. Secondly, we will have assets to leave be- hind to our children. By leav- ing them a nest egg, the next generation will be at signifi- cant advantage as it relates to financial positioning. Spending habits are gen-


features of our ancestors, we have also inherited their spending habits. We need to undo generations of bad finan- cial practices. In order to build any type of wealth we must be disciplined in our spending habits. Generation Next: Our


children True wealth is rarely creat-


ed by working for someone else. Children learn by exam- ple. So get started, if you haven’t already. Breaking the poverty cycle is hard, not im- possible. A small step in the right direction would be to skip eating out twice a week and invest the proceeds in a share of stock. Make it a fun project by asking your kids what products they like and find out if the company is publicly traded. Wealth building The basic formula for


erational As we inherit the physical


important? By investing and saving we


Generational wealth ismon-


w e a l t h building is to increase your assets while de- c r e a s i n g your debts. There are plenty of ways


McCullough Carlee


tavius Jones, president of Memphis-based Jones Wealth Management – are some sim- ple, yet effective steps outside of business ownership to start us on our way to wealthy: 1. Spend less than you


aires are small business own- ers. Here – courtesy of Mar-


b e c o m e rich. How- ever, most self-made mi l l i o n -


to


creating assets. Some assets increase your personal net worth and some assets depre- ciate over time. Wealth creat- ing assets include: real estate, stocks, bonds, mutual funds, savings accounts, 401(k) and IRA accounts. 5. Set up a Roth IRA in


childhood. Once a child starts earning taxable income (paper route, etc.) he or she is eligible for a Roth IRA. The advantage of Roth IRAs are that they use after tax income, their growth (earnings) over time is not tax- able until withdrawn (starting at 59 and a half years old), and the original contributions are not taxable when they are qualifying withdrawals. 6. Purchase an insurance for


earn.As your income increas- es, try to keep your spending at the previous level and in- vest the increase so that the money works for you instead of you always working for the money. 2. Set aside money before


vestment goals. Plan to save at least 15 percednt of the revenue or income you earn. Setting realistic yet aggres- sive goals are an important part of achieving wealth. Sample goals may be to grad- uate from school, own a busi- ness before you are 30, and buy your first investment property. 4. Increase your wealth


401(k) type retirement pro- gram. Just as you have deduc- tions for benefits on your check, enroll for the invest- ment deduction as well. Often times, your employer may match what you put in. It will add up before you know it. If your employer does not have a plan, contact a financial advis- er to set up your own automat- ic savings plan. 3. Create savings and in-


in any


heirs. Historically, we have used insurance to bury fami- ly. However it can be utilized as an investment strategy to leave money for our children. 7. Do not borrow money


you receive it. If you have a job, invest at the maximum contribution level


and pay off credit cards every month. Remember the object of wealth creation is to decrease debt as much as pos- sible. 8. Pay off student loans as


quickly as possible. The stu- dent loan debt affects net worth and the interest contin- ues to accrue. 9. Buy used cars for cash.


Even luxury cars can be pur- chased used. Bank on this Generational wealth can on-


policy your


Page 7


ly be created when we elimi- nate the poverty mentality of “living for today” and replace it with the financial education of the wealthy. (For more information


about H. J. Russell & Compa- ny, visit: www.hjrussell.com.) (Please send your questions


to Carlee McCullough, Esq., Contract Compliance Officer, City of Memphis-Office of Contract Compliance, 125 N. Main St., Suite 546, Memphis, TN 38103 or


wealthy@tri-statedefend- er.com.)


e-mail:


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