mo to rrill Lynch
l'8OD Lehman B t
mo Ie
mote.
The claim 0 alle that Bla
employ received I training,
former ulting in f opportuniti for promo-
,,, , ,
Dr. G or oder an, rig�, . • pertm nt Chairman a South .
in 0 tro', ic igan, explains an ssigrvnent to SOuthwest "rn student La�handra White.
Grad r on is one of the te c rs taking part in a unique educational program ponsored by
Pepsi-Cola and South tern. The program allows tUdents to earn money toward their
coli educatio by m intaining good grad , m ting state-mandated attendance require­
ments, and abstaining from dru and alcohol Ms. White now attends Wayne County
Comm...,ity College.
·
·
·
By Charles Ross
With the holiday n nearly When you up a trust for a Mutual Fund
upon us, your thoughts may be child under UGMA, the principal
turning to gift ideas for your ehil- and earnings are given to the Another good investment gift
dren, grandchildren, nieces, child pennanently. So, be Ute idea is buying mutual fund
nephews, brothel'S or istel'S. that you are willing to make a gift shares. They otTer veral advan­
Along with the latest toys, dolls that you cannot reclaim at some tages: prof ional management
and games another gift option you point later. UGMA accounts that byexperts;safetythroughdiveree
should consider is a financial in- exceed 30,000 are scrutinized portfolio; liquidity, or easy 8ooeB8
vestment. carefully by the IRS. The new tax to your money.
Financial products, just like law places some restrictio on Not all mutual funds are alike.
toys or clothing, come in all custodial accounts so consult your 'I'hey offer varying degrees ofriak
shapes and siZEB. With a little bit tax or legal advisor before you and potential for appreciation.
of shopping around, you can find proceed. Your investment representative
onethatmatch your budget and You can use a variety of invest- can help you choose a fund that
also meets the needs of the gift ment products to fund your child's best suits your individual needs.
recipient - whether it be college account, for example: Most mutual fund investment
tuition in 15 years or money for companies have a family offuncm
summer camp in 3 years. that enables you to switch from
In 'these times of economic un- Zero-Coupon one kind of fund to another as
certainty, an in tment gift can eo d your investment goals change .
. fort ��bo�: mand .. ���. _ - ... r.t. _. . _. 4. • .... :..___ • ivegrowt,l_lfunqa� t .. � ,
coll ge urtion, for e mple.> "ZeJ'o:ro�ponbonds.�V1c\� q. the �m� of t�eg= �
strikes fear in the hearts of many good m.ethpd for fundmg a college stocks offer shareholders good po­
parents. According to experts, the education, These bonds � be tential for capital gains. For
cost of a four-year college educa- Pthuerchased today .at � fraction �f b ild·
tion today averages roughly va!uetheywillh8veat.thelr ��;:r��l�t%
$17,000 at a public institution matunty. So for e�ple, if you ably provide tlie best return over
and $45,000 at a private institu- purchase $10,OOO.1D ze1'(HX)U�n the years. These funds are da­
tion So, for children born this bonds that are due to mature 1D signed to generate high long-term
year, the oostofattendingrollege �years, you would only pay earnings and have, in many
may reach well into six figures at' ut 3,OO? for them. cases, performed better than the
some schools. . By allo� you to select an stock market in general in recent
While a forecast like t�...at can lISSue that � � at a date years. The minimum investment
put a damper on holiday spirits, :vhen you will the mo�, required by these funds is usually
there is a bright side: through hesetobo: floffe�t ronvement $1,000 .
. careful planning, you can begin to way p. or. � ure expenses Money market funds provide a
offset these kinds of expenses � such as oolie� tuition, more ronservative option offering
day. By giving relatively small . These bonds do not pa� yearly high current income while pre­
amounts to your children while interest, but rather pay mterest serving capital.
they are young. you can salt away �hen they mature. However, the
enough to take the sting out of m�t may be. taxable, at the
these college years looming up childs rate, � It accrues every
ahead. year. One option among zero-coo-
pon bonds is the municipal tax­
free which is exempt from, federal
tax,
o
abli�..-..
c
y
By USA CORNWELL
CLEVELAND (AP) - A cultural
arts center will become the home
for a bank branch that will spe­
cialize in financial services tai­
lored for low and
moderate-income customers.
it's a branch that has truly
been designed from the customer
up," said Karen Horn, chair­
woman and chief executive officer
of Bank. One, Cleveland, a sub­
sidiary of the Columbus-based
Bank One Corp.
She said bank officials asked
area residents about the types of
services that should be offered at
the new Karamu Community
Banking Center at Karamu
House Inc. Among the services
that will be available are loans as
small as 50 and check cashing
for people who do not have ac­
counts at th ban
"'We want to demonstrate with
this prototype that you can make
a profit while serving the custom­
ers in this rommunity and other
communities with the type of
services they want and need," she
said
The idea behind the new
branch was to improve financial
services in a low-income area by
putting a bank in an institution
that residents already trust, Ms.
Horn said
KARAMU HOUSE, founded
in 1915 as a settlement house, has
expanded over the years into a
center that includes theaters, art
galleries, dance studios and meet­
ing rooms. The center for African­
American arts offers cl.asaes in
the arts and provides rvices to
children and the elderly.
About half of 11,000 residents
of the east-side neighborhood live
below the poverty level. Surveys
show that nationally, nearly 70
Kar8lllU community
anking center at a glance
The Karamu Community Banking Center will provide the full
range of traditional products and services that are available at
·other Bank One branches, but will also offer non-traditional
rvices:
- C k cashing for people without an account.
- Discounted money orders.
- Utility bill payment.
-Loans for amounts as low as $50.
- Eduational programs on how to establish a checking ac-
count h to handle d ,how to apply for credit, ho to tart
your own busin , how to purchase a home and how to ve,
-Sunday afternoon and w knight hours.
-.
e
THE KEY IS giving money to
your children early and using ap­
propriate investment vehicles.
During the years they grow up,
the dividends and interest from
their investments will compound
at their low tax rate or tax-free.
However, to qualify for the tax
advantage, the money must ulti­
mately be used for acceptable pur­
poses such as school tuition, ballet
lessons or summer camp, and not
for the child's everyday living ex­
penses. Checky6ur state's laws to
find out exactly how this money
may be used.
Each child may receive as
much as 10,000 per year, or .
20,000 from a couple, free of fed­
eral gift tax. But a taxfree invest­
ment of just 4,000 at 10%
interest today, will blossom into
more than $16,500 at the end of
15 years.
CIwrla Roa a JWIIt of tM ru:rtitJnlJlly
� radio ,hooJ. "Your PrnotUJl J1i,.
�"and autJwrofYour �
Guide to Penatal Finan.ciaJ. PIat&nins.
percent of people in such neigh­
borhoods do riot' have bank ac- .
counts.
"In my opinion they (bank offi­
cials) have taken a bold leader­
ship position," said Margaret
Ford-Taylor, Karamu House's ex­
ecutive director. "You've heard
the old ying about putting your
money where your mouth is -
this is what they have done.·
She hopes the branch, ex­
pected to open in the spring, will
lead to further development in the
area.
In addition to paying rent for
room in the center, Bank One will
make a rontnbution to Karamu
House, based on the branch's per­
formance.
. MAYOR MICHAEL R.
White praised the plan Tuesday.
He had earlier opposed Bane
One' acquisition of Valley Na­
tional Corp. in Arizona. He said
the company should first improve
Bank One's lending record to mi- .
norities and low-income resi­
dents.
However, White and Bane One
officials announced in March that
the mayor would drop his opposi­
tion to the acquisition, and the
holding rompany would increase
Bank One's financial involve­
ment in the city' neighborhoods.
Bank One, as of Sept. 30, had
76.5 billion in and 79
banks wi,th 1,320 offices in 12
tea. Ban One, Cleveland, had
of 2.24 billion and 65
branches in fiveoountiesofnorth­
east Ohio.
How Should
You Give
Money to Children?
Building a financial n t egg
for children can be easily done by
establishing a custodial account,
or a trust, under the Uniform
Gifts to Minors Act. You am work
with an in tment prof ional
to open this type of account, You
will need a Social Security num­
ber for your child and a person
who will rve as the legal custo­
dian fort account. If you are the
custodian, th value .of the ac­
count could be considered as part
of your estate for tax purposes in
the event of your death.