Ukiah Daily Journal from Ukiah, California on June 10, 1998 · Page 9
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Ukiah Daily Journal from Ukiah, California · Page 9

Ukiah, California
Issue Date:
Wednesday, June 10, 1998
Page 9
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THE UKIAH DAILY JOURNAL Commerce WEDNESDAY, JUNE 10, 1998 — A-9. Money Continued from Page A-3 The reduction of your Traditional IRA balance by the amount of taxes paid (and possible penalties if she is under age 58 1/2) will typically not outweigh the benefits of tax-free growth and withdrawals. SCENARIO THREE: An individual with Traditional IRA assets is at least 10 years (or more) away from retirement. He expects his tax rate to either remain the same or to increase during retirement. OUTCOME THREE: Generally, if you are eligible to make a conversion and can pay for expected tax liabilities with other assets and intend to hold the Roth Conversion IRA for 25 or more years, your total potential for retirement income could be increased through a conversion. SCENARIO FOUR: An individual is nearing Commerce retirement and has only a short time until distributions start from his traditional IRA. OUTCOME FOUR: With distributions starting over the short term, this investor probably does not have enough time to reap the benefits of tax- free compounding compared to the tax liability on the conversion amount. SCENARIO FIVE: An individual with traditional IRA assets is at least 10 years away from retirement and is currently near the lower end of the 28 percent federal tax brack-. et. By retirement she anticipates she could be in the 15 percent federal bracket. OUTCOME FIVE: Unless she is young enough (under 40 years of age) and does not plan to withdraw her IRA assets until the aged of 65, it is generally more beneficial to leave the assets growing tax- deferred in the traditional IRA. No matter what you or your family member's particular situation may be, the decision to convert current traditional IRA assets to a Roth Conversion IRA is not an easy one. Each of the factors presented may have either more or less importance to your particular tax and financial situation. Consult both your financial and tax professional for the necessary expertise to help you make the right choice to maximize your retirement income through the new IRA planning alternatives. Barbara Reid is a Certified Financial Planner professional and an Enrolled Agent licensed by the U.S. Department of Treasury to represent taxpayers before all administrative levels of the IRS. She has an office for tax and financial services in Redwood Valley. For more information, call 1800-559-5377. BUSINESS IN BRIEF The Associated Press! Wage gap between sexes narrows by 3 cents WASHINGTON - The strong economy and an increase in the minimum wage have helped narrow the wage gap between the sexes by about three cents on the dollar since last spring, the Clinton administration says. "White, college-educated males have always done the best, but as the economy gets tighter, other people get more opportunities," Rick McGahey, the Labor Department's assistant secretary for policy, said Monday. With unemployment at its lowest level in 28 years, companies are scrambling to find and keep workers, opening higher-paying jobs and promotions to women and minorities. U.S looking for dormant accounts BASEL, Switzerland - A U.S.-led panel looking for Holocaust-era assets in Swiss banks said Tuesday it had chosen 27 banks to be examined thoroughly for any remaining dormant accounts. The nation's three largest banks ^ Credit Suisse, Swiss Bank Corp. and Union Bank of Switzerland are on the list as are 24 state and private banks. Some 200 auditors from four international firms have been assigned to the latest phase of the search,: said a statement from the panel, which is headed by former U.S. Federal Reserve Chairman Paul Volck- er. Keating gets new trial SAN FRANCISCO - Charles Keating is entitled to a new trial of his federal securities fraud convictions because his jury was tainted by information that he had been convicted of similar charges in state court, a federal appeals court ruled Tuesday. Learning that another jury has already found Keating guilty, based on the same facts, is "highly prejudicial," said the 9th U.S. Circuit Court of. Appeals. A federal prosecutor said the government may. appeal on the grounds. Noting that the state trial and- convictions had been widely publicized, Assistant U.S. Attorney Miriam Krinsky said Keating "had no right under law to an ignorant jury." Continued from Page A-3 The Kiplinger California letter this week took a look at the overall economy for California and liked what it saw. Kiplinger predicts the state's economy will thrive through the year 2000 with just a slight slowdown. Housing prices, however, will continue to rise (the median single family home price is expected to jump to $200,000 in 1998) which could fuel sticker shock and another exodus. But Kiplinger doesn't think that will happen. He says 37 percent of employers - especially in Northern California - say they plan to hire in the third quarter. The challenge for employers of course is going to be the increasing diversity of the state's population. "Businesses will need to be nimble and creative ..." Kiplinger says, discussing developing products and services and marketing strategies to meet the needs of a changing population. .'"'... The Baby Boomers will still be a factor in the next five years. Kiplinger predicts boomers will shift from the exorbitant spending on their kids, to more spending on themselves. Kiplinger says the governor's job is Dan Lungren's to lose. One of our readers sent me an amusing article from the St. Petersburg Times in Florida which described the effect of the merger between North Carolina's NationsBank Corp. and San Francisco's BankAmerica Corp. ; The writer, Robert Trigaux, has this to say about our neighbors in the Bay Area: "To San Francisco, the BankAmerica-NationsBank deal is a bitter pill. Nobody wrote a tune call 'I Left My Heart ... in Charlotte.' Who would swap the noisy Charlotte Motor Speedway for the sublime Golden Gate Bridge?" It goes on: "Armed with maps, a glossary of Southern terms and an elitist attitude, San Francisco's media has descended on Charlotte since the merger (in April) with nouveau riche NationsBank was unveiled, to' poke fun at the locals and warn their hip West Coast readers: If San Francisco is from Venus, Charlotte is from Mars." The article goes on to quote a variety of San Francisico newspaper columnists about the "problems" with Charlotte. "Finally, the San Francisco press unleashed its biggest blow at Charlotte. The North Carolina city is -ugh - affordable. 'The average price of a home sold in Charlotte in 1996 was $141,003." "That's a wide garage here," quipped one columnist. Real Goods Trading Corporation announced this week that it had lost nine cents a share for the fiscal year which ended March 31. That amounts to $322,000. Net sales for the year were $17,034,000 compared to $18,424,000 in fiscal 1997, which included their one-time $2 million renewable energy project at a resort in Belize. Real Goods President John Schaeffer said, "While it is \ Feel Like a I Kid Again! There's something for everyone, and every age, at The 'Clubs. With memberships as low as $27*-, there's no Better way to get healthy. The !Four specials to choose from— including our Summer Only membership. : Get Fit Today! Call 468-0441 'swimming • aerobics • kid's club • weight machines • summer camp • conditioning ' equipment • racquetsports • fitness evaluations • child care • sauna and Jacuzzi • shaping and stretch classes 'Single special hours membership. 12-month plan never good news to report a loss, we have learned valuable lessons in fiscal 1998 and have made significant improvements in retail infrastructure and in refocusing our catalog strategy." He notes that the company has grown to the point that it needs both a CEO (Schaeffer) and a president (newly hired Ron Zell.) I give Real Goods credit for putting out press releases even when the news is bad. Most companies don't. In the movers and shakers department... The local Jazzer- cise instructor Mardi Boettcher has sold her Jazzercise franchise to Tonya Hunt. Classes will remain at 208 Mason St. Boettcher, who has been teaching Jazzercise for almost seven years has given up the business to pursue other interests. For' information, call Hunt at 462-" 3136 ... Joanne Jury, owner and' operator of the local Sears store was recognized as a top per-' former in 1997 among 600 store owners at the Sears "Dealerama'V held recently in Anaheim. A/A '&?•:•:•''• - '$•'.$ Cliialh Daily Journalill .««,, •• ,.r l (** J •: •' •:.:.•::•:••:::•;.;.;:•.;:;,; Deadline, June 18th Includes photo and/or message- up to 1.75" Send Us Your Message Today! Our Dad's the Best! D Photo Included Message Only Message: Your Name Address City Phone Coupons must be received no later than Thursday, June 18 at 5 p.m. Yourmessagetvill appear on Sunday, June 21st. Ukiah Daily Journal 590 So. School St. Ukiah, CA 95482 468-0123

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