Car Insurance

ASK most young people what the latest CD is by Nelly or Jay-Z and they not only can tell you the names of the music CDs, but they can also rap the lyrics to each song. But ask the same young people to explain the other type of CD, the money CD, and the answers won’t come so readily.

Contrary to what a lot of young people think, a financial CD doesn’t rap and can’t be bought at Tower Records. A certificate of deposit, as you may know, is a major financial instrument sold in banks and by brokers. Almost all financial experts say young people, especially young Black people, should know more about them and more about other ways to invest.

The teaching should start early. Mellody Hobson, president of Ariel Mutual Funds, based in Chicago, says, “If your daughter loves Barbie, talk to her about buy’rog Mattel shares or give her gifts of Mattel shares for her birthday.” It’s helpful for children and young adults to see how their own buying translates into profit, she says. Even if they are investing in a toy company, they should really invest, not just watch how the stock does over time.

Stocks are the best investment for children because they are in it for the long haul and can ride out the ups and downs of the stock market. If a parent purchases $1,000 in a small company’s stock at a 12 percent return when their child is 10 years old, that stock will be worth $2,048,000 by the time their son or daughter is 65 because, in addition to earning interest, the money doubles every five years, Hobson says.

Another way to invest money is with U.S. Savings Bonds that can be bought at a discount for denominations starting at $25. Though their interest rate varies, interest earned on bonds is tax-exempt. They can be cashed in six months after purchase or saved for up to 30 years.

Parents can also create a 401(k) plan for their children, similar to what companies offer employees by giving an allowance of say $5 for doing chores and then putting a match of another $5 into an investment account.

Opening a mutual fund account, called a Uniform Gift to Minors, is one way to invest and save on taxes because the account is in your child’s name.

And don’t forget CDs, which are another way of saving for the future. However, CDs are conservative, earning less interest than investing in the stock market. “CDs are for people who want to be sure they preserve their principal and don’t want to put their savings at risk,” Hobson says. “It’s good for saving for a down payment on a house, but the interest rates are just above inflation.”

Who says IRAs are just for people near retirement age? Parents can open an IRA account for their offspring as soon as they show that their child is earning money from any source, including an allowance. Parents can save up to $3,000 per year.

So you’re not ready to open a bank account or invest in stocks or CDs for junior? Try using a color-coded bank at home to help your son or daughter learn to manage money. Each color on the bank represents a different use for that section. For example, the green area is for quick cash, like for buying candy. The yellow part is for saving for something special, like a video game. The red section is money for investments, and not to be touched. Or one of the sections can be used to donate to charities. Hobson says, “It’s a way for children to think long term about money and also to create that long-term perspective on saving.”

One father, Kenneth Stone, helped his daughter, Carrie, and son, Keith, develop a long-term perspective on saving when he taught them to save their allowance to buy things they wanted.

Stone, the president of the St. Louis Chapter of the National Association of Black Accountants, also set a good example by saving all the money they would need for college through his job’s deferred compensation plan.

Stashing money away before it’s spent is a good idea, but only if it’s put in a safe place. This money-managing father tells his children not to put all their eggs in one basket, but to diversify their holdings. Stone suggests they invest 10 percent of their gross income, placing one-third in a high-risk growth stock such as a new-venture company with growth potential that doesn’t pay dividends, one-third in an income-producing stock such as a utility company that can afford to pay dividends, and one-third in their employers’ stock.

Stone has made enough successful investments–such as the land he bought that doubled in Value in four years–to start his son and daughter off with enough money to pay their first year of rent and give them each a car when they graduated from college. And that’s a lot more rewarding than a stack of music CDs.

The disabled evacuee with chronic heart problems is trying to start his life over in Colorado Springs, and a local charity group has helped by giving him a car.

The help is coming from Northern Churches Care, one of 13 organizations that get a portion of their funding from The Gazette/ El Pomar Foundation Empty Stocking Fund.

“While I’m grateful that Colorado Springs has public transit, it’s just not reliable enough,” said Rivero, who needs to get to medical appointments on time.

The vehicle is a 1988 Mercury Grand Marquis with about 40,000 miles on it.

“It’s like a new car, absolutely no problems at all,” Rivero said. “It can be as cold as it gets here, and you walk out, turn the key and it cranks instantly. I’m really grateful to have received this.”

And while it has helped him move around Colorado Springs, the best gift that came with the car was a trip to Kansas City for Thanksgiving.

Northern Churches Care gave Rivero gasoline vouchers so he could make the almost 1,200-mile round-trip drive, allowing a reunion with relatives, including his aging mother.

“My mother is 79, and she is not in the best health,” he said. “I was very much afraid this might be the last Thanksgiving I get to spend with her.”

Rivero isn’t sure what happened to the car he owned in New Orleans. It was in the shop when Katrina hit, and he hasn’t seen it since.

Rivero hitchhiked out of New Orleans to safety just before Katrina hit. His spent about a month in a shelter in Baton Rouge. In late September, he boarded a bus with about 50 people and ended up in Colorado Springs.

Rivero said he couldn’t be happier.

“This has got to be the best place I’ve ever been in my life, as far as the kindness and just how nice people are,” he said. “I’m so grateful and consider myself extremely blessed to have come here.”

Marcia was making it as a single mom. Her two kids were teenagers, and she was working in the finance department at a car dealership.

But everything changed in the instant a “lady ran me down with a car on purpose,” Marcia said. She informed the woman that the dealership would repossess the car, followed her to the car lot, and the next thing she knew she was rolling on the pavement.

Marcia ended up with rods and bolts in her back and a neck fusion. She suffers from arthritis, fibromyalgia and back pain, along with shortterm memory loss. She hasn’t been able to hold down a job since the incident 15 years ago.

“It’s been a long haul,” she said. “If I could work, I would, because I’d love to make more money than I do.”

She survives on Social Security and a pension, but it’s hard to make ends meet.

Marcia depends on her monthly visits to the Divine Redeemer Catholic Church Food Pantry, partners of Care & Share Food Bank.

Care & Share provided more than 60,000 pounds of food in 2005 to Divine Redeemer, one of Care & Share’s 416 partners. The Care & Share Food Bank is one of 13 area charities receiving grants from The Gazette/El Pomar Empty Stocking Fund.

“I’ve been going to Divine Redeemer for three to four years, and they know who I am,” Marcia said. “They can tell when something is wrong, and they are always willing to help you out. They’re just really good people.”

In October, Marcia took in her 8-year-old granddaughter. She says the girl was being physically and mentally abused by her stepmother and father (Marcia’s son).

So, her meals from the food pantry have become even more vital to her.

“Right now, I just hope I don’t get sick or anything so I can take care of my granddaughter,” she said. “At Divine Redeemer, they’re more like friends now than somewhere I go to get emergency food. It just makes you feel good that somebody cares that much.”

By now you’ve heard that this week’s Masters could be a celestial battle of the golf stars, a titanic tilt of a tournament you later will be able to look back upon and say, “Was that some phat action or what?” But what will it mean to the world rankings? Great question, Forrest.

At the risk of turning a personality-rich story into a stat, No. 1 Vijay Singh and No. 2 Tiger Woods currently are separated by a mere 0.20 average points per tournament in the world rankings. What are the rules of the rankings? Well, they’re complicated. Essentially, a great performance among a great field means a greater number of points, thereby increasing your average and hip-hopping you up the charts.

In addition, the top-gun back and forth could include Ernie Els, who many forget spent nine weeks as the No. 1 in the world, long ago, back when buying a gas-guzzling, wheel-rotating SUV was a reasonable idea. He trails Woods by 0.84, which can be made up with a Masters win and a couple of Tiger tournament tamings. Then there’s everybody’s favorite lefty, Phil Mickelson, fourth in the world but trying harder. He’s a fair piece back in points–even after playing in last weekend’s wet Masters warmup, the BellSouth Classic–as the other three putted down the road at Augusta. But he’s gung-ho and gaining, and, gosh, he has great teeth.

Whatever. All you need to know is that Singh and Woods are going to be spending more time fighting at the top of the charts than 50 Cent and The Game. Hate it or love it, the days of one player dominating the rankings for 264 straight weeks–as Woods did before he was dethroned by Singh–are done.–Paul Grant.

Golf worth watching

The battle among the Big Four couldn’t be happening at a better time for PGA Tour commissioner Tim Finchem–his tour’s contracts with CBS, ABC, NBC, ESPN. USA and the Golf Channel all are up for renegotiation. The early returns support that Finchem is in good stead to reap big bucks in deals for 2006 and beyond: Tiger Woods’ sensational Sunday battle with Phil Mickelson at last month’s Ford Championship earned a 5.9 rating for NBC, up a whopping 84 percent from 2004. If the Big Four-Woods, Mickelson, Vijay Singll and Ernie Els–take turns tangling like that. it could be a long, hot summer.

Getting those big bucks can only come by enticing back casual fans–and the best chance to do that is at the Masters. Last year’s rating for the final round. 7.3, was the second-lowest for Augusta since 1981, and the season’s numbers continued downhill from there. Because the Masters is the highest-rated tournament on the tour. a similarly poor showing this year would prove costly during negotiations with the networks, as it would be held up as the ceiling for ratings potential.A high-visibility, final-round rollick between Woods and one of the other Big Four would boost ratings, bring back casual fans and serve as useful ammunition for Finchem during talks.

Where are the fattest people in the world? That’s right, baby–right here in the good ol’ US of A, stuffing their faces at baseball games. According to the National Hat Dog and Sausage Council (yes, that’s a real organization), more than 27.5 million hat dogs will be consumed this season by fans at major league ballparks. Urp.

‘Prime Time’ has a pet project

He’s a cornerback. He’s a return man. He’s a receiver. He’s a baseball player. He’s a broadcaster. And he’s even a coach.

Multitalented free-agent cornerback Deion Sanders might or might not return to the Ravens to play again this year, but he is doing a little coaching on the side. Sanders called Gary Wichard, the agent for top cornerback prospect Adam “Pac-Man” Jones, to offer to show Pac-Man some technique work. Sanders watched Pac-Man’s West Virginia team lose to his alma mater, Florida State, in the Gator Bowl and undoubtedly saw some ways he could help the youngster. –Dan Pompei.

Howard Baldwin, producer of the Oscar-nominated film Ray, the story of late music legend Ray Charles, is teaming up with screen legend Robert Redford to produce another biopic on another groundbreaking African American. This time, it’s Brooklyn Dodgers Hall of Famer Jackie Robinson, with the movie set for a 2006 or 2007 release.

Redford, who will co-produce the film, was “the natural” choice to play Dodgers general manager Branch Rickey. A possibility for the starring role of Robinson: Ray star Jamie Foxx. “At the appropriate time,” Baldwin says, “we’d be nuts not to want to talk to Jamie.”–Vinnie Iyer