To own your own home is not a small venture, and requires considerable thought and planning. I am sure that those who have purchased a house would agree that the process is very long, tedious, time consuming, and perpetually costly. Whichever home you purchase, you must make that decision responsibly. The amount that you pay on your home, and the payments that you are required to make to retain your property will have a huge effect on your future financial state. 

“If you are not wealthy but want to be someday, never purchase a home that requires a mortgage that is more than twice your household’s total annual realized income.”  (The Millionaire Next Door, Thomas J. Stanley and William D. Danko)

While I believe that the above statement over-simplifies the situation, the thought behind it is very true. If you want to purchase a home, you should “act your own wage.”  Make sure that you purchase a home within the limits of what you can afford to pay. I have witnessed many people going out to look for a new home without any idea of how much they can afford to pay. I urge everyone to take the time to do the math before beginning the hunt for a new home. The sub-prime credit market crash beginning in 2006 resulted from a nation of individuals who failed to properly prepare, making them more susceptible to predatory lending practices. Don’t let the mortgage broker do the math, as he or she is pushing for the highest loan to make the most commission. He or she will find a way to stretch you well beyond your means, making a nice commission, while you lose your sanity and happiness trying to over-extend your budget to make your mortgage payments…this is the essence of predatory lending. Remember that everyone who has ever filed for bankruptcy or foreclosure was initially approved for a loan from the bank.  Know what you can and cannot afford before you meet with a mortgage broker.  “The rich rule over the poor, and the borrower is servant to the lender.” (Proverbs 22:7)  Buying a home should not be your only goal, but rather you should be buying a home that you can comfortably maintain while living in it.

One good strategy to determine if you will be able to purchase your home before you buy it is to purchase an “imaginary house.” Calculate the amount of money you think you will be able to afford and then immediately open a savings account. With your “house fund” put a down payment into your new account that will come as close to 20% as you can afford. Each month after you have made the down payment put the calculated mortgage payment for your new imaginary home in the account. Without fail, every month make mortgage payments into your savings account for either six months; or until you have the 20% down payment that you will need for your imaginary home. If you find that you are able to make these payments, and still able to live comfortably without over-extending your budget, then you are on your way to having that new house.  

Many people have discussed the possibilities of paying off your mortgage early. I have always been a huge fan of early mortgage payments.  However, you shouldn’t start paying off your mortgage until you have established an adequate emergency fund that provides financial liquidity in case of unexpected circumstances. There are a number of pros and cons relative to paying off a mortgage early. Once you have purchased your home and made a decision to investigate an early pay-off, check with a financial advisor who will evaluate your personal circumstances and advise you appropriately.

I would love to have more in America come to realize the dream of owning their own home. To come home to something that we own is truly a magical feeling.  However, we need to be diligent enough to do our own research and not leave our financial futures in the hands of others.  Make sure to personally cross every “T” and dot every “I.” Do not be afraid to invest in a competent financial advisor to assist you in this tedious process. A principle of wealth is to be willing to invest in those professionals whose intellectual capital will enhance the quality of our lives.

Many people in this country are not ready yet to purchase their first home (but with proper planning everyone can purchase a home).  However, what about a sofa or a television set?  Are your sites set so low that you feel that you do not have the ability to own your own DVD player?  If the answer is yes, and you have the desire to pay exorbitant interest rates on items that you have yet to even own, then Rent-A-Center has built a business model especially for you.
 
I had to see just how much interest Rent-A-Center charges so I called them myself and acted as if I were a customer wondering about their terms.  I asked how much it would cost to purchase four items which included a regular sofa and love seat set, a leather sofa and love seat set, a 26 inch television set, and a 52 inch television set.  For each I got the price that it would cost to rent it from Rent-A-Center on a weekly basis, how long it would take to own the product, and found the retail price of a similar product from Amazon.com.  The results were amazing and are listed below.

Regular Sofa and Love Seat:

Weekly Payment = $19.99
Retail Value = $900
Weeks Until You Own From Rent-A-Center = 78
Interest Rate = 80%
Interest Paid = $659
Total Paid = $1,559 for a $900 Sofa

Leather Sofa and Love Seat:

Weekly Payment = $30.99
Retail Value = $2,000
Weeks Until You Own From Rent-A-Center = 78
Interest Rate = 26%
Interest Paid = $417
Total Paid = $2,417 for a $2000 Sofa

26 Inch Sony Bravio TV:

Weekly Payment = $17.99
Retail Value = $550
Weeks Until You Own From Rent-A-Center = 104
Interest Rate = 163%
Interest Paid = $1,321
Total Paid = $1,871 for a $550 Television

52 Inch Sony Bravio TV:

Weekly Payment = $59.99
Retail Value = $1900
Weeks Until You Own From Rent-A-Center = 116
Interest Rate = 159%
Interest Paid = $5,059
Total Paid = $6,959 for a $1,900 Television
 

As you can see from the chart there is a clear disadvantage from those who choose the Rent-A-Center way versus those who choose to be prudent about how they purchase items for their house.  If you take the 52-inch Sony Bravio television, which retails for $1900, one could use the $59.99 that he/she would be giving to RAC to purchase the product and putting it into a savings account.  Doing it the smart way would allow you to purchase this TV in just 31 weeks.  However, through RAC you would be paying on that TV for a total of 116 weeks before you actually own it.  Over that time period you would pay a total of $6,959.  When you subtract the total paid ($6,959) from the retail value of the TV ($1900) I calculated that you would have paid over $5000 in interest at a rate of 159%.  Being prudent saves you 85 weeks of payments and over $5000 that you could have used to put towards retirement, a new home, a business, or another more meaningful use.  Doing it the smart way you could almost purchase 4 TVs of an equivalent price in the time that it takes you to purchase just one TV doing it the RAC way.

If you ever feel the urge to ever use Rent-A-Center please consider paying a visit to your local Salvation Army and purchasing a temporary inexpensive piece of furniture.  The money that you would be paying to RAC for paying the weekly rental payments deposit in a savings account until you can purchase the furniture or product that you truly wanted for your home. I remember growing up when we had the same black and white TV, with no channel turning knobs (we needed to use pliers), and no antenna (we needed to use the wire clothing hanger to act as rabbit ears to get good reception) for years while many of my friends had the more updated color television sets. My mother didn’t want to purchase a LUXURY ITEM such as a new color television until all of our NECESITIES were provided for which placed a TV as a very low priority in our household! If it worked for her, it will work for you!

Written By Ryan Mack, President of Optimum

Dear Federal Correctional Institution Otisville:

Many times we write open letters to chastise individuals in the community who are participating in the promotion of predatory products that possibly hinder the economic progress of society; however, this time we would like to commend Federal Correction Institution Otisville in Otisville, New York for the tremendous work they are doing educating their population on ways to advance the economic progress of our society.

Recently, The Optimum Institute of Economic Empowerment was awarded with a “Patriotism” Award for our dedication to reducing recidivism through economic empowerment.  We also received a letter of commendation from the Warden Craig Apker for our efforts to empower those behind prison walls. While we are honored to be the recipients of both, this letter is written to you Otisville because it is you who truly deserves the recognition.

When Manyell Akinfe and I, Ryan Mack, walked into FCI Otisville for the first time back in October of 2009, the staff was extremely hospitable and made us feel at home.  It was clear from the onset that this correctional facility was determined to change all the negative stereotypes that we may have brought in from the skeptical, and even cynical, society.

Then we went on a tour of the facility and our mouths didn’t leave the ground the entire time. We walked through the multiple classrooms and received a full description of the education and classes that were offered; strolled through the expansive library with 100s of books to choose from; took a trip down the hall to a room with hand crafted handbags made by the inmates which  were better than what you would see in any store on Madison Avenue; visited another room with artwork and crafts that you could have seen in any art gallery or novelty store being sold for thousands of dollars; saw the green room filled with plants and vegetables growing through the means of hydroponics, solar energy, and other alternative energy and horticultural methods that I couldn’t even pronounce; and lastly my favorite vision was the room full of over 100 inmates manufacturing solar panels.  All of this and we didn’t even get the complete tour!  Needless to say we were impressed with the high degree of tangible rehabilitative resources that FCI Otisville had created.

Then we had the blessing of being able to conduct a workshop for the inmates. They were attentive, respectful, and eager for all of the information that we could give in a limited amount of time. I found myself increasing the complexity of the curriculum due to the high intellect in the room.  It seemed as if they had been studying before we arrived. After the workshop, to my amazement they had been doing their homework.   Through an introduction to Dominique Henry, Founder and Executive Director of the Community of Economic Development, we found the source from which these inmates received many of the principles of financial literacy and economic empowerment.

Dominique Henry has a passion to teach financial literacy and economic empowerment. He has taken his organization to multiple correctional facilities across the country and has established a name for himself as a “guru” of economics.  His grasp of the principles is phenomenal, but his desire to teach these principles to 1000s of inmates being housed behind prison walls was absolutely phenomenal. It is even more phenomenal to hear about his widespread reputation across multiple prisons when you learn that Dominique Henry is serving a life sentence himself!

Mr. Henry has not allowed himself to be stereotyped as useless to society because he happens to be housed for an extended period behind bars. I always say “as long as you still have a pulse you have a purpose”, and Mr. Henry is fulfilling his purpose from behind bars by making a tremendous impact on society.

So I say this to you FCI Otisville…it is not us who deserves this award and letter of commendation. Warden Apker, I cannot think of a more patriotic act but to work diligently within a federal system that is depleted of funds and resources due to a harsh economic climate, create a family atmosphere that relies on love instead of funds, and then create programs and resources that empower inmates to re-enter society with skills and intellect that helps them become a stronger contributor to society.  I cannot think of a more patriotic act, Mr. Henry, than to receive a life sentence in prison and still continue to create empowerment programs for so many…many in your situation chose to write off the remainder of your days but you chose to continue to empower and find a way to give back to society more than most who are on the outside.    

To Warden Craig Apker, Executive Director Dominique Henry, the Otisville Staff, and all of the wonderful inmates who blessed us with such tremendous love…we at The Optimum Institute of Economic Empowerment beg of you to continue your work because you are changing lives, making a difference, and making our job so much easier. If we had more of you those awful stats of recidivism would not be as high, if we had more of you crime rates would not be as high, and if we had more of you more people would learn through your example how to leave the world better off than how they found it.  Your efforts, and the opportunity that they create for others, are the essence of economic empowerment.

If there is anything that we can continue to do to assist you, please do not ever hesitate to call upon us!

Your Friends In the Empowerment Movement,

Ryan Mack, President

To see a video of Ryan Mack and Manyell Akinfe thanking FCI Otisville click here…

Writer, All About Business

I will be a change-agent in bridging the wealth creation gap for African-Americans.  Before the start of my freshman year in college, I found out my father committed credit fraud on my brother and I,  because my father didn’t effectively manage his credit, debt, or budget.  Sadly, this story is told too often in the minority community because we, in the minority community, lack the education and the training necessary to not make this a reality.

The lack of knowledge and exposure to investing among African-Americans represents an emerging national crisis that will add to the already growing financial burdens facing our society.  Research has shown that African-Americans have largely been left out of wealth building opportunities due to a variety of factors, including financial barriers such as high minimum investment requirements, high transaction fees, and high commissions.  I hope to help reduce these barriers so that everyone can participate.

I am dedicated to spending the rest of my life perfecting this craft – providing services that equip minorities with the knowledge needed for economic independence and financial security.  I love working with money, multiplying money, and investing money.  Having grown up in a household where my mother worked tenaciously to provide for my younger brother and me, I realize that there is a vast disparity of opportunity between people who have money and those who do not.  The black community has to think about building adequate nest eggs to carry themselves through old age and to leave for generations to build upon.  We need to learn how to let money make money for us.

Society has shaped me to love the value of the dollar bill.  I realize that money fuels every facet of life from municipal philanthropic endeavors to multibillion dollar conglomerates; money is the lifeblood of it all.  Money breeds opportunities and my vision is to eventually run a company whose services enable families – the Wall Street professionals, the middle-class parents, and especially people who may be unaware of the importance of those services when they first walk through the office doors – to effectively plan for their futures and financial freedom.

Mark Steward is a native of Texas and a humble 2006 graduate of Morehouse College where he obtained his BA in Business Administration with a concentration in Accounting.  Upon graduation he worked for a couple of years as an Investment Banking Analyst in the Financial Institutions Group for JPMorgan Chase based out of New York. Mr. Steward moved back to Dallas, Texas in 2008 and is currently a Reinsurance Financial Analyst for State National Companies.  His customer base includes a wide range of insurers from reinsurance to property & casualty.  Mr. Steward is a President of Toastmaster’s Aegonizers, member of Student Sponsor Partners and math tutor at KIPP Truth Academy.  Mr. Steward also serves on the executive board of the Urban League of Greater Dallas. Since leaving his home state of Texas, Mr. Steward continues his commitment to mentorship wherever he resides.  Regardless of the audience, Mr. Steward’s passion for continuous improvement, whether in finance or community outreach, always manifests itself.

Written By Ryan Mack, President of The Optimum Insitute of Economic Empowerment, Inc.

Not too long ago, NBC’s “Dateline” ran a story that portrayed Detroit in a very negative light. The piece, “America Now: City of Heartbreak and Hope”, showed a city full of vacant land, high crime areas, abandoned homes, and residents living in neighborhoods full of decay.  They even showed a man who hunted and sold raccoon for profit as if this was an actual representation of the state of most residents in the city.

I don’t live there now, but I was born in Detroit, Michigan and that will forever be my home. I and all that I know who are from, and currently live in Detroit, have never met someone who hunted raccoon in my hometown; however, I can’t deny the existence of many of those things that were shown. There are abandoned homes, high crime is prevalent, and there are many residents who live in a neighborhood that is “on its last legs”.  However, they failed to show other side Detroit.  They didn’t show the fabulous communities that exist with huge homes with wondrous architecture such as Sherwood Forest, Palmer Woods, the Boston-Edison district, or Indian Village. They failed to show the schools in my hometown that colleges are sponsoring, such as Cass Tech, just so get next to some of the brightest students in the country.  They failed to show those successful businesses such as the Taste Pizza Bar, Miller Cohen PLC law firm, Alpha Partners LLC asset management firm, or the Brinker Group commercial contracting firm. They also failed to show the churches and other non-profit organizations such as Reverend Marvin Winans of Perfecting Church which also has a charter school; Dr. Charles Adams of Hartford Memorial Baptist Church which owns franchises that produce jobs for the community; or New Detroit which is a non-profit which creates many opportunities for businesses and individuals throughout the city.

So with the obvious slanting of the depiction of a city that was clearly an attempt at sensationalism, how should we respond? Many talk shows have responded with anger and have chastised Chris Hansen for reporting that didn’t tell the entire story. A few have responded by doing what I have done above and highlighted many of the positive sides of this great city of Detroit. Many have agreed with the story and have expressed the need for all of the residents and previous residents who care about the future of the city to get involved in the revitalization of this city. However, a group of professionals and I decided to get together respond with tangible action. 

The Detroit National Teach-In was a group of over 50 professionals who were all tired of the complaining about the state of the city, and collectively decided to come together and take action. Through the use of benevolence, these professionals spent an entire week in Detroit teaching their expertise in their fields in prisons, schools, non-profits, community-based businesses, and churches in an attempt to inspire residents of the city of all ages that they can make a change for the better. These professionals taught all who would listen about the importance of financial literacy, the importance of entrepreneurship, and how to get involved in the fastest growing industries. 

I was proud to be a part of such a powerful movement of benevolence. There were those who flew out to Detroit to participate, who had never been to Detroit previously, but just wanted to be a part of the solution and not simply complain about the problem.  If it was greed that got us into this economic recession, benevolence will help improve our economic climate.  “None of us is as strong as all of us” and this saying is most certainly true in this event. 

CNN came out and was able to cover the first part of the powerful week which you can read about the prison visit and see a video overview of the week in the link below.

http://www.cnn.com/2010/US/05/14/ost.prison.learning/index.html

In the 2000s popular news was often published with a relatively negative connotation regarding the “emerging markets” of South America, West Asia, and Africa– Adventurous Investor – New Frontier – Navigating Uncharted
Waters, are the kinds of subject titles that we’ve seen in the past decade. But how risky are these places? It’s
important to first acknowledge that every country has a different investment profile. South Korea is a totally
different market than South Africa, and neither should be grouped into a bucket of risky potential as if they were
roulette layouts.

The African markets in particular are met with the stereotype that they are 1) one large consistent market 2) under
construction. It is true that the fifty-three African countries are not as developed at the fifty United States of
America collectively. But one could drive from Cairo to Cape Town without stopping. It’s been done for decades.
I’ve been evaluating the African continent for the better part of this past decade and my firm has been investing
directly for the past three years with no signs on a downturn prior to or during the American depression of 2007.
Take for instance, South Africa: It is by far the most robust of the African markets. It accounts for 10% of the GDP
from the continent. It commanded approximately 70% of the continents total private equity deals in 2009. It
bolsters the world’s 10th largest exchange, and its currency is one of the most competitively traded.
I don’t think that it is imprudent to recognize South Africa as an ideal investment location, consistent with the
potential of the four BRIC (Brazil, Russia, India, and China) countries. BRICS would be a more accurate coverage of
the global landscape. The realities of a country like South Africa are that they do have what I like to call the tripod
of capitalistic growth. ZA has exceptional physical infrastructure (roads, telecom, and water/sewage) from their
ports to their rapidly growing cities. They have robust legal structure that rivals (from an operational standpoint)
that of the USA and EU, partially because they were given much intellectual assistance after Apartheid was
abolished in 1994. Finally, ZA has a great financial infrastructure. After gold was discovered in the Witwatersrand
the Johannesburg Stock Exchange was founded in 1887. Other than their large national banks, every major foreign
bank is there, including the newly built China Construction Bank.

That is just the tip of the iceberg, or in Mzansi terms the tip of Lions Head. The reality in 2010 is that buy & hold
strategies whether prudent investment philosophy or not, aren’t attractive and actively managed foreign direct
investment is more ideal for people looking to benefit from long-term growth. From this stand-point South Africa
offers the most attractive benefits, globally.

Natural Resources: ZA is arguably the largest mining country on the planet other than China. The benefit is in its
open market philosophy. Information travels fast and well. Unlike China, investors don’t need to partner with the
state to integrate well. Capital markets are not only informative, but liquid.

Timing: Johannesburg and Cape Town are four hours ahead of London and six/seven hours ahead of New
York/Toronto/Brazil depending on day-light savings time. When the US Dollar is low, and the price of metals is
high…South African currency, commodities, and equities are in for a steady incline…companies like Exxaro, Sasol,
Goldfields, etc. will see great growth.

Measurability: No one will likely tell the ambitious 21st century investor that low barriers to entry and trust worthy
information are the most desirable traits in any market. While we should never use the word “predictable” when
referencing the equity markets, because there are always black swans as Nassim Taleb would call them, investors
should be looking for the most measurable market available. In comparison to ZA, the USA is saturated with
companies. Although the JSE has more than four-hundred-seventy listed companies, ten of them carry the trading
weight. A market this sparse is much more than measurable. The idea is to set oneself up as an investor to
capitalize on as many opportunities as possible. 20 years from now, South Africa may be too big to enter, and Peru
may be the most measurable location available, who knows? While riding the N1 from Pretoria to Johannesburg
yesterday I saw the freeway expanding to make more room for everyone – there are no extreme adventures to be
had investing in South Africa in 2010, only very measurable growth.

James Keith is the Chairman and CEO of the Enxit Group: A small global IT Services and Equity Development firm established in late 2007 to deliver the latest technological and financial solutions of the most affluent to disfavored market segments globally. James is an American expat living in South Africa.

It is a good day for consumers today as important components of the “CARD” legislation go into effect today.  As of today, February 22^nd, all credit card companies must do the following:

• Keep all due dates the same on your credit card: Now you can better plan for your credit card payments each month without fear of being late because they have arbitrarily changed the grace period. 
• Provide you 45 days notice before they raise rates: While there are no limits as to how high the rates can go and they can still jack up your interest rates, at least you now have much more time to prepare for these rate increases. 
• Younger adults under the age of 21 will find it much harder to obtain a credit card: I used to have a portion of my workshop for college freshmen that cautioned them against credit card companies that solicited their business…that practice will severely be limited because of this age restriction.   
• No more double cycle billing: Card companies used to be able to charge interest on a debt that had already been paid in a previous month. As wrong as this practice was it was legal…not anymore.
• No more over limit fee transactions unless previously approved: If you have a $500 limit and charged $505 there used to be a fee for going over your limit. You must now give consent to make this possible and issuers cannot charge more than one of these fees per billing cycle. 
• No more paying to pay: This is huge because the credit card companies took advantage of the ease of which you can pay your debt if you use the internet or phone to pay your debt. It never made sense to me to have to pay a fee just to pay my debt…this practice is now over. 
• Longer notice: Companies were required to send statements 14 days in advance; they are now required to send statements 21 days before a payment is due. 

That being said, I want to reveal a piece of groundbreaking news to you that might floor you so make sure that you are sitting down before you read this next statement.  The news is:

CREDIT CARD COMPANIES LIKE TO MAKE MONEY!

Did I shock you?

Of course I am being facetious but the bottom line is peoples always seem to be shocked when they find out that credit card companies are lobbying, bending rules, and manipulating as many people as possible to increase their bottom line. These rules still leave a lot of loopholes that you can be sure the credit card companies will try to exploit. They are not in the business of making payments easy for you, but to make as much money as possible. Therefore, these rules do not negate the need for personal responsibility. It is preposterous that people have items piling up in their garage collecting dust that they don’t use but they are still paying for on their credit cards! If it is not an emergency (no a new video game system for a crying child who feels he deserves it is not an emergency) or you are not using the card to establish credit history (i.e. making payments at the grocery store with a credit card and paying it off within the week to establish a good history of timely payments) then DO NOT use your credit card. 

An individual who uses a credit card will spend 35% more at the time of purchase.  The average purchase costs 112% more when using a credit card verses using cash after you factor the interest rates and other fees. The credit card companies, who could give a darn about your personal financial situation, are steadily trying to find ways to get into your pocket…let’s not make it easy for them and start planning and using credit cards wisely.

Written By Manyell Akinfe, SVP of Optimum Capital Management, LLC

I recently read an article entitled “The Banks Are Bullying The Poor and I’m Not Having It” and I couldn’t believe my eyes.  Russell Simmons was speaking out against predatory banking practices.  While I’m all for getting riled up about the inequalities in the financial services industry, I’m not for hypocrisy.

I have a lot of respect for Russell as an entrepreneur and businessman and can’t imagine him not seeing the similarities in what the banks are doing and what he has been doing with the RushCard.  Maybe he feels because he’s “one of us” he gets a pass. The same way brothers give other brothers a pass for calling them the “N” word but will raise Cain if a Caucasian addressed them that way.  I’m not sure where the disconnect lays but I have to call a spade a spade.

I agree that banks are getting outrageous with their fees. Last year alone banks collected $38.5 billion  in overdraft fees and the average  ATM  charge, rose from $1.78 in 2008, to nearly $2.00 at the end of ’09.  However, these fees are universal. The economic crisis combined with the CARD legislation that was passed last year has forced banks to fill their revenue gap by putting pressure on ALL consumers, not just those with black and brown skin.  I am not disputing that there are disparities but they don’t lie in the fees.  We need to focus on the PRODUCTS & SERVICES that are pushed in our communities like refund anticipation loans, Rent A Centers, check cashing facilities and pre-paid debit cards.

I understand the need to market items in a way which inspire action and evoke change; however, what Russell Simmons seems to be doing is taking advantage of his prominence in the minority community to sell a predatory product.  When I first saw the RushCard I was excited. I was confident that if it wasn’t in the best interest of the people, Russell wouldn’t be a part of it.  I was clearly wrong.  When you compare the RushCard with a typical card from a traditional bank the differences are evident.

RushCard Monthly Pre-Paid Debit vs. Typical Bank Card

Activation Fee: RushCard = $3.00     Typical Bank Card = Free

Monthly Fee: RushCard = $9.95   Typical Bank Card = Free with a commitment of usage or balance

Convenience Fee: RushCard = $1.00(when using pin)   Typical Bank Card = Free

ATM Cash Withdrawal: RushCard = $2.50/ 2 free per month    Typical Bank Card = Free (At Branch)

ATM Balance Inquiry: RushCard = $.50 Typical Bank Card = Free

Bill Payment: RushCard = $1.00 Typical Bank Card = Free

Lost or Stolen Card Fee: RushCard = $9.95   Typical Bank Card = Free

My experience as a financial advisor has taught me that there’s no one size fits all solution in personal finance.  However, in all the work I’ve done with disenfranchised youth, public housing communities and the formerly incarcerated I have yet to come across an instance where it was necessary to recommend a pre-paid debit card over a traditional bank card or secured credit card.

Optimum has been in the trenches of the community since the company started in 2004 and our audience is never confused about where we stand on financial literacy and economic empowerment.  A few years ago, President of Optimum Capital Management Ryan Mack wrote, “A Letter to Russell Simmons: Stop Selling Your RushCard” pleading with Russell to take a closer look into what he was pushing in our communities.  Since then a few fees on the RushCard were lowered and this recent stance shows that Uncle Russ is taking a closer look at what’s really going on in the banking industry but I need him to dig much deeper. He needs to look at the Rush Card he has been pushing since 2003 to the same audience he is sticking up for in his rant because his predatory practices are doing much harm to the community.

Written By Octaviar Latty, Reporter for All About Business

On February 12, high school students within the tri-state area were afforded an opportunity to experience an enriching workshop at Microsoft in New York City. Aside from learning their usual curriculum, students as young as eleven years of age, attended a series of seminars that focused on personal growth and career development.

This event was designed to help students formulate and perfect a 3-minute presentation commonly known as an “elevated pitch.” Throughout the morning, towards the mid-afternoon, the students would have acquired the basic skill set necessary to compact a brief and marketable speech to any audience. With an incentive of two X Box game systems, students took out their pens and notepads and tediously focused on the speakers’ words and advice.

At the start of the event, CNN Commentator and Community Activist, Ryan Mack, introduced the young crowd to several financial empowerment principles as well as functional information about maintaining credits scores and budgeting. All About Business, a versatile group of college students, founded by Mack, also accompanied him in speaking to the students.

Later on in the workshop, the association covered another segment that introduced the seven steps to financial freedom. All About Business Community Service Director, Kareem Hertzog said, “This was another great opportunity for us to spread financial literacy to the youth and as we continue to expand, we hope to captivate a global presence and really have an impact on people’s lives.”

Microsoft program coordinator, Gina Davis, mainly directed attention to the advantages of internet usage. Davis explained how the internet can be used as a marketing platform and urged the students to market themselves in positive ways. In an effort to teach youth how to stay mindful on social networking sites, Davis also highlighted cases that dealt with child pornography and child abduction.

Davis said, “I am very excited and encouraged by all the participation of the high schools that came out today and I hope they take something from this experience.”

Author, scholar, and entrepreneur, Randall Pinkett illustrated the vital role and value of education by sharing his success story. His goal was to motivate the audience to be producers of technology opposed to consumers of technology.

“Necessity is the mother of invention,” said Pinkett as he enlightened the students about their innate ability to see opportunities other people don’t see.

After the speakers left words of encouragement among the students, they had a chance to work on their individual pitches within smaller groups to efficiently incorporate what they learned. As the students stood lined in the front of the convention room, their presentations where consecutively heard by Microsoft personnel and other guests of the event. Everyone had an opportunity to participate and share their accomplishments and goals for the future.

Student, Gabrielle Louis, asserts, “I never realized how useful technology was until today. Even if I don’t go home with the X Box, I will still leave knowing how important I am to society and the potential I have to change the world.”

Written By Ryan Mack, President of Optimum Capital Management, LLC

No matter how you try to spin it, the economy is improving. The stimulus seems to have given the kick start to the economy to stop the devastating slide into a recession. Here are some of the signs:

• The 700,000 jobs that were being lost in January of 2009, compared to the 20,000 jobs that were cut in January of 2010. 
• The Gross Domestic Product (GDP), which is a key indicator of the strength of the US economy, was contracting in the first quarter of 2009 at almost 6%.  This is compared to the expansion of almost 6% that we saw in the fourth quarter of 2009. This swing of almost 12% is the largest one year swing that we have seen in decades.
• At the onset of this recession in 2007 the Dow Jones hit levels lower than 6500 compared to levels of higher than 10,000 that we have seen in today’s economy. 
• Recent jobs data revealed manufacturing added 11,000 jobs which is the first increase in this sector since the onset of the recession in 2007.

I understand that we have a long way to go, and that we still face a national unemployment rate (when you factor in underemployment) of approximately 16.5%.  However, as I walk the line of optimism, realism, and objectivity…there is no question of the success of the stimulus.  The bank bailout of the Bush administration (which was flawed because there were no strings attached but still successful in shoring up the solvency of the banks), the stimulus of the Obama administration (which was flawed because of the weakened effect due to his quest for bipartisanship support but still successful in creating jobs), and especially the fiscal and monetary expansionary policies of Ben Bernanke (which was flawed due to the lack of transparency and bordering abuse of power but still successful in providing the necessary liquidity to avoid another Great Depression) were all policies that were obviously not without their flaws but nonetheless turned this economy around. 

Now what do we do? We CANNOT continue to look to the government for solutions.  While their job continues, there has been little or no focus on what we as citizens of this country can contribute to move this country forward. 

If you would permit me to provide an analogy of how we are supposed to view the stimulus.  When I was young, my Grandfather taught me how to ride a bike. He took off the training wheels and told me that I was ready. That summer day I got on my bike, he got behind me, and he began to push.  He ran along beside me going faster and faster until he finally gave me a big push and I was off riding by myself! At the point where he pushed me and I was by myself I had two choices. The first choice was to just sit there on the bike and expect the momentum to continue.  The second choice was to start pedaling and steer the bike by myself. If I chose the former the momentum would have slowed, and I would probably have fallen off my bike. If I chose the latter, which I did, I would have been able to stay up long enough to allow me to ride by myself without assistance. 

This is how the stimulus is supposed to work. The Government, just like my Grandfather, had a job to get the economy going. Their method was to pass a stimulus package and provide capital to allow the capital system to continue to operate.  The economy is now expanding; however, just like there was a time when my Grandfather had to let me go and allow me to pedal by myself, the Government has done its job and should let go and allow us to pedal on our own. 

If this plan is to work that means that the Government has done its part, but we must do our part. Here are a few ways that we can do our part:

• Re-Training – The Government has extended unemployment insurance and helped with providing coverage with benefits. For those who are unemployed this has bought time for you to go to non-profits, churches, politicians’ offices, and local community organizations that provide low and no-cost job training for you to enter into a new career.   
• Fiscal Responsibility – The Government has passed legislation that has assisted us in understanding the hard to follow language and abusive practices of credit card companies. For the millions who use these cards it is up to us to use them in a responsible manner as there are still no limits on the high interest rates and excessive fees that you will have from certain actions such as overdraft. The CARD act legislation does not exempt anyone from using credit cards responsibly.
• Education – Tax credits have been increased to make college more affordable; however, now is the time for those who feel that they can benefit from additional education. Community colleges have record enrollments across the country because people understand that one can get additional education and degrees for inexpensive rates. To get a part-time job and attend a community college at night might seem like a schedule that is tough to bear but in these times sacrifice is necessary.

These are a just a few ideas of how the Government is helping to sustain the economy, but it is up to us to take the necessary action to move this economy forward. This is not to make light of the economic situation that we are in for these times are not easy in the slightest. However, hard economic times does not negate the necessity for all of us to continue to do hard work.  Being part of the underemployed or unemployed for months or years, does not negate the fact that you still have a responsibility to go on additional interviews, invest time in training, networking, and continue to do whatever it takes to get out of your current situation. Frustration can be expected, but lack of diligent effort cannot be tolerated if this country is to move forward.

There is a cleaning solution entitled 409 that you may see in the stores. It got its name because after 408 unsuccessful attempts to create a mixture that worked, they finally got it right on the 409^th attempt.  What if they would have given up on the 408^th attempt? Thank God they didn’t because now they have a very lucrative product that sells across this country.  We must have the same determination for ourselves. No matter how many job interviews you have been on, you must always remain determined that the NEXT interview will be successful. No matter how many training courses you enroll in, the NEXT one will help you get the job of your dreams. No matter how many people are in your network, the NEXT one that you talk to will connect you to the career of your dreams. It is this mentality that will cause our economy to turn around. Without this mindset and this determination not to give up the struggle to be successful, no amount of stimulus will ever be enough to pull us out of this tough economy.  Pushing the bike is the Government’s job, pedaling is ours!