BUSINESS
Tri-State Defender
Page 7
March 1 - 6, 2012
ON OUR WAY TO WEALTHY
Women’s History Month: Free from bondage
With Women’s History Month as the backdrop, join us throughout March as we highlight the challenges and successes of women, many of them female entrepreneurs. Elizabeth Key set the bar high. She was born out of wedlock to an enslaved black mother and a free white settler. In 1636, Key’s father transferred ownership of her to another white settler for the term of nine years. At the end of the nine-year term, Key was to obtain her freedom from bondage. However, instead of obtaining her freedom as originally contracted, Key’s ownership was later transferred to a justice of the peace. Upon this owner’s death in 1655, Key, through her attorney, petitioned the court for her freedom. Having served 19 years instead of the originally contracted nine, she was granted her release. But as with the judicial system today, an appeal was inevitable. A higher court overturned the decision, deeming Key a slave. Not to be deterred, swayed or convinced otherwise, Key, again through her attorney, petitioned the General Assembly, which appointed a com-
mittee to review the i s s u e . Eventually, Key gained her freedom. Key’s t e n a c i t y, determination and will to Carlee McCullough fight in the 1 6 0 0 s speak to how long the fight has been going on. The assistance she received from the attorney that took on this case to right a definite wrong is a shining example that at some point in time, we all need to join in on a justified fight for what is right. For Key, freedom was her business. Here are some of the many elevating lessons that can be learned from Key’s sojourn:
Free from bondage
Key was determined to win her freedom. She knew she deserved it and she fully understood what the original agreement dictated. While we are free – in the sense that we are not “owned” by a master, many of us still have self-im-
posed shackles. Bondage is not necessarily physical today; it is mental.
Be courageous
When told no, Key was not to be deterred. As business owners, we cannot be afraid of criticism or rejection. Ultimately, we will hear more of “no” than of “yes.” We must not be dissuaded, choosing instead to keep our eyes on the prize. Our goal is to build wealth, and we must keep moving.
Be deliberate in our fight
Unquestionably, Key was smart and prepared for her fight. Too frequently, however, some with the determination to fight choose to battle everyone over everything. This leads to distraction from what is important. We must plan our paths so that we can walk our walk.
Be a visionary
To achieve your goal, you have to visualize it, and it does not matter if the goal does not appear to be practicable. Truly successful people are vision-
MONEY MATTERS
Leaving your home out of the retirement equation
Plummeting prices and increased borrowing cut U.S. home equity by more than 60 percent during the Great Recession. Although the recession officially ended in June 2009, home prices have not recovered. In this type of market, it’s not surprising that many homeowners who borrowed against their home equity have found themselves owing more than their homes are worth. Homeowners with a second mortgage are more than twice as likely to be “underwater” than are homeowners with only a first mortgage. The good news is that housing values typically recover from downturns. But no matter which way the market heads, it’s probably not a good idea to count on the value of your home to help fund your retirement.
Potential risks of downsizing
Although moving to a less expensive home could be appropriate for some people, the falling market of the last few years demonstrates that you may not always be able to sell your current home at the price
you exp e c t . Transaction fees and movexing penses could also leave you with substantially less cash Charles than you Sims Jr. were anticipating. It might be more realistic to view downsizing or moving to a different area as a personal choice rather than a way to pay for retirement. If you place too much emphasis on your home equity in your retirement strategy, it could lead you to underestimate how much you may need to save for a comfortable retirement.
Shifting into reverse
A reverse mortgage may allow homeowners age 62 and older to borrow against the value of their homes. They don’t have to pay back the loans during their lifetimes for as long as they continue living in them. This strategy may be appropriate for some retirees,
but it also involves substantial fees – and the amount you can borrow is typically much less than the actual value of the home. Because a reverse mortgage loan must be paid back after you stop living in the home for one year or more, it’s likely that either you or your heirs may eventually be forced to sell it, risking exposure to the uncertainties of the housing market. Your home might have substantial value, but it also provides shelter and may have sentimental value. You may be in a stronger position to make decisions about your home if you leave it out of the retirement equation.
(Charles Sims Jr., CFP®, CERTIFIED FINANCIAL PLANNER™, is President/ CEO of The Sims Financial Group. Contact him at 901682-2410 or visit www.SimsFinancialGroup.co m. The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.)
Electrolux: On-track with local commitment
Electrolux has awarded more than $72 million of the $80 million construction contract associated with the new cooking products manufacturing facility to be built in Memphis. With less than 10 percent of the remaining dollars yet to-be awarded, Electrolux says it is well on-track to meet commitments to the local and minority and women-owned business communities. “These results continue to underscore the Electrolux and Yates commitment to Memphis and Shelby County,” said Project Director Jacob Burroughs of Electrolux Major Appliances, North America. “We are working with Mayors (AC) Wharton (Jr.) and (Mark H.) Luttrell (Jr.)to ensure our investment in Memphis is responsive to the needs of the community. We look forward to working with the city, county and state in the years to come.” Wharton said he was pleased with Electrolux’s progress given that the bulk of local spending is going to Shelby County companies and with $24 million already awarded to minority- or women-owned businesses. “As the project continues to
move forward, I’m confident we’ll hear more good news for local companies, local residents, and the local economy,” said Wharton. “We’re encouraged many locally-owned small businesses will be part of the Electrolux operations plan. Strengthening the business economy in Shelby County continues to be our top priority,” said Shelby County Mayor Luttrell. Construction of the plant continues on-schedule with full manufacturing operations expected in 2014.
Current economic impact
Electrolux intends to spend more than 50 percent of the $80 million construction contract locally, with Shelby County expected to receive the vast majority of contract dollars. To-date, $72 million of the $80 million construction contract has been awarded. Of the $72 million awarded thus far, 89 percent (nearly $64 million) was awarded to local companies, the vast majority to companies in Shelby County. Also, 33 percent of the $72
million awarded, or $24 million, was awarded to local minority and women-owned businesses. Minority and womenowned companies awarded contracts are (contracts awarded since January 17, 2012 are in bold): • CDA, Inc. (located in Shelby County) • MIG Construction Services (located in Memphis MSA) • MJ Construction/Sidle Construction Joint Venture (located in Shelby County) • SMS Contractors (located in Shelby County) • South Memphis Fence (located in Shelby County) • Interior Focus Inc. (located in Shelby County) • Waterproofing System Inc. (located in Shelby County) • Three Point Graphics (located in Shelby County) • Metal Products Co. (located in Shelby County) • Gipson Mechanical (located in Shelby County) • Shelby Electric with A1 Electric/Allied Electric (located in Shelby County) • Brighter Days and Nites (located in Shelby County) • Medford Roofing (located in Shelby County) • Dannix Painting (located in Memphis MSA)
aries that are creative thinkers and doers. A woman of mixed race in the 1600s seeking and obtaining her freedom can only be called a visionary.
Pace, pace, pace
Success is a marathon. As
business owners, frequently we have to serve as the salesperson, accountant, promoter and janitor. It is imperative that we pace ourselves for the journey. Having a plan is the first step in winning the marathon. Create a detailed plan on how to achieve the
goal and check off the accomplishments as they are achieved. (Contact Carlee McCullough, Esq., at 5308 Cottonwood Road, Suite 1A, Memphis, TN 38118, or email her at jstce4all@aol.com.)