optimum-capital Liking how the HOT 97 show came out. Hit me up if you want the podcast link. - Nov 01 add/view comments (0) |
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As a renowned public speaker he has provided keynote presentations to organizations across the country such as NAACP, National Association of Real Estate Brokers, Housing Preservation and Development, National Urban League, National Aeronautics and Space Administration, National Black MBA Association and many others. With a strong sense of philanthropy he flew to South Africa to teach economic empowerment principles to those in need and has partnered with the local District Attorney's office to teach financial literacy to previously incarcerated community residents with the aim of lowering recidivism rates. He can be regularly viewed on television networks such as GMTV, CNBC, CNN and BET discussing economic/social issues that impact American citizens. Ryan has also been profiled in Tavis Smiley's Covenant and Action (a New York Times Bestseller); co-authored a book with Kevin Powell entitled "The Black Male Handbook"; featured in Black Enterprise, African American Family, The Source & NV Magazine; contributes regularly to Huffingtonpost.com, The Network Journal, Fortune, and Black Enterprise; received the Top 40 Ander 40 Achievement Award from The Network Journal; was inducted by Medgar Evers College (where he currently serves as a board member) into its national honor society PI ETA KAPPA as a honorary member; and received Tom Joyner's "Hardest Working Financial Advisor Award" because of his efforts to empower the community with the crucial life skills of financial literacy. Whether he is counseling a group of doctors at a convention or in Rikers Island providing a free course Ryan Mack's comprehensive, exciting approach to teaching economic empowerment to all income levels has generated a level of much needed interest in a volatile economy. 
When asked, what do you think about the current state of the real estate market? According to the New York Times “Getting Real about House Prices” Real Estate agents and appraisers from Manhattan to Menlo Park said they consider sales figures older than six weeks unreliable. Over the past 2-3 years we have seen an unprecedented amount of volatility within the real estate market and the economy as a whole. We’ve seen rapid growth in home foreclosures, major companies filing for bankruptcy, and most recently the unemployment rate reaching 10%.
This economic downturn has affected virtually every income level on a broad scale. Not only are the lower and upper middle class earning less per household, but the rich have felt the “sting” as well. In recent years, foreclosures have increased at a rapid pace, which can be largely attributed to predatory lending practices and increased loss of income because of large amounts of layoffs. Moreover, many homeowners have found themselves losing out on what they believed to be their “Nest Egg”; and many neighborhoods across the nation from Florida to California have lost as much as 40-50% in real value. Consequently, families have had to move out of their homes, because the professionals, who should have been responsible (Bankers, Realtors, and Mortgage Brokers) distributed bad loans to buyers who would not be able to pay them back in the long term. Leaving many believing that they would be able to eventually refinance into a better loan, which was not the case.
What about the homeowners who bought their home the right way? They pay their mortgage on time faithfully every month but, because nearly half of the houses in their neighborhood are either in foreclosure, or on “fire sale” by the developer, they are forced to reduce the sales price of their home; and in the event that they need to move they must either cope with the fact that they may see a significant loss in profits once the house is sold; or even worse, they may only break even or lose money in the sale.
Fortunately there is a silver lining in all of the turmoil within the economy for those homeowners who are struggling to avoid foreclosure. In August of 2009 the Federal Government began offering more assistance to homeowners by including FHA loans in the “Making Homes Affordable Loan Modification Program”. The program is a comprehensive plan to stabilize the U.S. housing market and offer assistance to up to 7-9 million homeowners by reducing mortgage payments to affordable level and preventing avoidable foreclosures. This implementation expands the Obama Administration’s program to include FHA borrowers, which will allow homeowners who qualify to significantly reduce their monthly mortgage payments, which in turn will allow them to stay in their homes.
According to the “National Association of Realtors; NAR” there is more good news for the real estate market. Existing home sales bounced back strongly, marking five gains in the past six months. Leading the charge for this gain were first time homebuyers driving sales up 9.4% to a rate of 5.57 million units up from 5.10 million. This gain in home sales indicates that the $8,000 homebuyer tax credit is working, home prices are becoming more affordable, and hence forth a higher amount of qualified buyers are surfacing.
Although it’s a fragile recovery this momentum can still keep going. By recently extending the $8,000 tax credit into June 2010, we can expect to see an increased growth in sales going into the New Year. This extension is due to the senate approving a 24 billion dollar economic stimulus bill that will provide tax incentives to future homebuyers, along with extending unemployment benefits. For homeowners that have difficulty purchasing a new home, the $8,000 tax credit was expanded to include a $6,500 credit for existing homeowners who buy a new home after living in their present home for at least five years.
With the recent up-tick in sales for the Real Estate market, where can we go from here? If you’re interested in purchasing a home to take advantage of the homebuyer tax credits, you should begin by making sure your financial house is in order before purchasing. Begin by getting on a budget; this will help you find out how much house you can afford. Get your FICO score up, as creditors are looking at credit scores of 700 or higher. Locating credible professionals (Realtor, Attorney, Mortgage Banker etc…) that will assist you in purchasing a home is equally as important as the first two; the right professional can help you save time, and money when purchasing. Doing these few things can ultimately put you on a clearer path to owning your new home.
America's Healthy FuturePosted
Author: Manuel M. Gonzalez, Intern for Optimum Capital Management, LLC
On October 13, 2009 the Senate Finance Committee approved, by a vote of 14 to 9, the “America’s Healthy Future Act”; which is a bill that aims to lower costs and provide quality, affordable healthcare coverage for an estimated 29 million uninsured Americans within the next decade. Moreover, the bill proposes to eliminate the discriminatory practices of private market insurance providers against individuals with pre-existing medical conditions as well as improve the overall efficiency and quality of healthcare delivery. Also, the Congressional Budget Office estimates that this proposed legislation will cost $829 billion and will reduce the federal deficit by $81 billion during the decade after its ratification. To ensure such favorable outcomes, the bill contains a variety of provisions.
For instance, the bill prohibits insurance companies from charging women or those with prior illness an increased premium and also eliminates yearly and/or lifetime limits on the amount of coverage that is provided under a given health plan; which would make it illegal for an insurance company to drop the health coverage of a policy holder. Furthermore, the bill provides tax credits for small businesses to assist them in offering insurance to employees and will also offer a fifty percent discount on prescription drugs to seniors with gaps in their Medicare part D prescription drug coverage. These provisions would make the coverage more affordable and equitable for individuals with low to moderate incomes, particularly senior citizens and the working poor. While such provisions seem ideal, the prescription discounts for Medicare beneficiaries aren’t without drawbacks. For instance, according to the Congressional Budget Office, under the House bill (HR3200) Medicare recipients will see a five percent increase in their premiums by 2011 which would grow to twenty percent by 2019; however, expenses on prescription medications apart from Medicare premiums would decline overall. These discounts and savings on prescriptions provided by the Senate Bill may not be worth the cost of the increased premium of the House bill, especially, for the beneficiary who takes only one form of medication. The good news, however, is that there will not be any Medicare benefit cuts under the “Americas Healthy Future Act”.
Another proposal of the Senate bill is to transition the Medicare fee-for-service system based on the volume of care towards a reimbursement system based on the quality and value of care. Consequently, a percentage of hospital payments would be linked to performance and quality measures in terms of the care for general and high-cost health conditions. These standards would be designed to encourage physicians to avoid redundant testing and procedures, which are likely to impede efficiency and result in cost ineffectiveness; but instead, strive to achieve the most optimal patient outcomes in the most inexpensive manners.
Although a healthcare environment under this proposed legislation has plenty of appeal and potential, there are also several prospective issues that may arise as a result of its enactment. For instance, many Americans could be subjected to considerable increases in taxation as well as rationing of actual healthcare, which under some circumstances may be the difference between life and death. Furthermore, Republicans have strongly opposed these healthcare reforms and have made claims that this legislation is a slow start to a “government takeover”. Moreover, if the private insurance companies are unable to compete with the federal government, the government can possibly become a monopoly within the health insurance market. Also, private insurance companies have made claims that there would be an increase in private plan premiums instead of the “competitive decrease” that the federal government anticipates, which would impose greatly upon individuals who prefer private insurance coverage.
Taken as a whole, the healthcare reforms proposed in the bill are certain to change the way Americans pay for healthcare services, however, with regards to improving the quality and efficiency of healthcare delivery, the “America’s Healthy Future Act” doesn’t quite deliver. The bill seems to be lacking clear-cut practices or standards that will ensure that Americans will receive the highest quality of care. Moreover, it fails to define and/or standardize methods to reduce operating costs of hospitals and other healthcare organizations. Theoretically it would be ideal to provide affordable healthcare to the millions of uninsured Americans but, as the old saying goes “it’s not about quantity but quality”; and with respect to the likely increase in taxation to pay for this healthcare overhaul, many Americans deserve to get their “moneys worth”. Furthermore, if the quality of care declines under government healthcare coverage, citizens may find themselves at the mercy of private insurance companies, even more so than they are at present time, as they seek quality healthcare under the coverage of private plans with “hyper-inflated premiums”. It is not yet known as to whether or not there will be an actual healthcare reform under the proposed legislations but, if such a reform were to occur, the final body of legislation would have to accentuate tangible means that will guarantee quality care and cost efficiency in order to be truly beneficial to American society.
Ultimately, the demand for affordable and quality healthcare presents a challenge, and thus far, the private sector hasn’t achieved nor attempted to achieve this challenge. Instead, private insurance companies have sacrificed the well-being of countless Americans to ensure their own interests. Furthermore, many Americans have been sold a false sense of security under private health coverage because when it comes to the “bottom-line” policy holders are viewed as liabilities or expenses and when the insured become too expensive the insurance company is liable to drop their coverage. Therefore, it is imperative to afford the American people a better alternative which is both affordable and beneficial. It just so happens, that the alternative is being proposed by the United States government which is the same government that has instituted successful programs like Medicaid, Medicare, Social Security and W.I.C. to ensure the welfare of the American people. Albeit, these programs have not always been well received, they are still quite beneficial nonetheless. For that reason, a healthcare reform with a public option may be just what the doctor ordered.
!!!HELP 1000 HOMELESS KIDS HAVE A GOOD XMAS!!!
DON’T RSVP UNLESS YOU PLAN ON DONATING A TOY, I WANT TO KEEP ACCURATE COUNT.
I was at HOT 97 last week and they hit me up asking for organizations to do a Xmas party with. I immediately thought about the Students in Temporary Housing program that I have been volunteering for almost 3 years now teaching financial literacy. I connected the two together and the director Wayne Harris was extremely excited because he was trying to plan a Xmas party for 1000 homeless children and they didn’t have any funds to give them toys. Well, that was short lived because HOT 97 pulled out not even 24 hours later.
So now BlackPlanet…these kids need you! We talk about how to use social networking well this is one way that we can really create a good Xmas for a homeless child this year. If just 1 of every 100 of my BP friends donates 1 – 2 toys that would mean 1-2000 toys for these homeless children this Xmas! Can we do it? YES WE CAN!
If everyone can go out to purchase one, two, or more toys and send them to the address below. The toys don’t have to be extravagant but you can purchase 4 decent toys for less than $20. All toys need to be sent by December 10th as the party is on December 23rd and they will need time to organize all of the toys. I love these kids and really would love to pull this off for them. Find it in your hear to just take $20 and a little time to ship the toys to the below address…help put a smile on a child’s face this year. Thanks!
Mad Fun Family Entertainment Center
303 Stanley Avenue
Brooklyn, New York 11207
Attn: Harry
718-498-9002
December 10th cut off date/ December 23rd Party
COME GET JOBS, FREE EDUCATION, FREE TRAINING, FREE FOOD AND INSPIRATION!
Come for a full day of inspirational speeches, an empowering panel discussion covering community empowerment/upliftment, singing, fellowship, free food, and plenty of FREE community resources (job training, jobs, education, etc.) to empower yourself in the "resource room" beneath the festivities. Place: St. Paul Community Baptist Church 859 Hendrix Street Brooklyn, NY 11297 Date: October 31st Time: 10:00am — 4:00pm Special Guests Include: Vanda Seward Director of Statewide Re-Entry Services, NYS Division of Parole
Dr. Ron Daniels
Talk Radio Extraordinaire Andrew Morrison Small Business Boot Camp Maurice Carver Host of Black Men Screaming Darnell Canada President of REBUILD Greg Russell Community Activist Lorenzo Steele Community Activist "We have done a month of 13 workshops in less than 30 days to multiple demographics and we want to close this inspirational month out with a rally without our community. We are so tired of hearing about the problems in our community without solutions. We are so tired of hearing about all that is wrong with our community. THIS event is filled with tangible solutions to many of our economic problems. THIS event is not about focusing on the obstacles that we face, but focusing on the opportunities that are present. It is time to celebrate tomorrow because we know that with hard work and unity we WILL be prosperous! If you have any free resources or empowerment programs that you are currently offering to the community, please reach out to us as we would love to have you set up a table to market your services." Ryan Mack, President of Optimum Capital Management, LLC Black America and InvestingPosted
Author: Ryan Mack, President of Optimum Capital Management, LLC
If I gave you $100,000 today how would you spend it? Before you continue to read, I want you to take a moment and think hard about this question. How would you put that money to work? After you have thought about it, which of the following two scenarios describes the best use of the funds?
Scenario A: Spend $50,000 on a "caddy", $25,000 for your pinky, and the balance on a "pound of blow". In twenty years you will have an old pinky ring and a lot less brain cells.
Scenario B: Spend $20,000 on a Honda Accord, $5,000 on a nice vacation, and invest $75,000 in your own portfolio. In twenty years you could have as much as $350,000 (with a very modest 8% return).
For those who chose Scenario A, you have agreed with famous rap star Lil' Wayne as this scenario was taken from his lyrics in his song "Stuntin' Like My Daddy". I listen to rap music, but we must understand that many of the lyrics in this music were written because of their ability to make money…NOT because of their contribution to our intellectual capital as a people.
I personally agree with Scenario B and so do the majority of millionaires in this country. Half of the millionaires in America have never spent over $30,000 for a car in their ENTIRE life (The Millionaire Next Door, Thomas J. Stanley and William D. Danko).
One reason is they are so busy making money that they do not have much time to worry about self image. If you were TRULY wealthy, and like 5% of America who controls 95% of the wealth in America, would you care about what others thought about you? Another more important reason is they understand that as long as they are spending money on items that lose value instead of things that gain value they are less able to maintain and increase their economic status. This is why you will hear stories about Jim Walton, heir to the fortune created by his father Sam Walton (founder of Wal-Mart). He still drives a 15-year-old Dodge Dakota pickup despite being number 23 on the 2007 billionaire's list. You may have also heard about Ingvar Kamprad, founder of multi-billion dollar enterprise and also a billionaire. He still drives a Volvo which is also 15 years old. Before he attained his fortune, his father gave him a very modest reward for doing well in school and what did he spend his money on…a "modest" furniture company named Ikea which reported revenues of $17.7 billion dollars in 2005.
The question that you should be asking if you do not know and have not asked already is, “What are they spending their money on if it is not consumption?” The opposite of consumption (putting your money into assets that lose value) is production (putting your money into assets that go up in value). Four of the most common vehicles that you can invest your money into are the following:
1. Stocks
2. Bonds
3. Real Estate
4. Entrepreneurship
1. Stocks
Simply put, stock is ownership of a company. You can go to Starbucks and purchase coffee to be a customer. However, you can purchase stock in Starbucks and become part owner of the company. As an owner, you have a stake in every coffee that is purchased. The more shares you purchase, the larger your stake becomes.
2. Bonds
Both governments and corporations need to raise capital to operate. Salaries, suppliers, facilities are all examples of expenses that an employer incurs on a consistent basis. Welfare, social security, Medicaid, public schools, and the Iraq war are all examples of programs and events that require a significant amount of funding from the government. One of the ways to pay for expenses and programming is to borrow from individuals by issuing bonds. If you purchase a bond you are essentially lending that entity money with their promise to return the funds borrowed PLUS interest.
3. Real Estate
Whether it is your first home or purchasing a piece of investment property on the side, home ownership has always been an American dream and one of premier ways of accumulating wealth.
4. Entrepreneurship
Owning and operating your own business has proven to provide the highest return of all of the stated investment vehicles. However, this investment also has the highest risk. It is a risk that is worth it because you are investing in your own ideas. There are those who want to invest in other peoples’ ideas…these investors are called venture capitalists.
Before you begin investing in these vehicles, there are a few things that you must do to prepare yourself to invest such as the following:
How to Prepare a Budget: It is a must that we begin to pay closer attention to our spending habits. There is an old saying that you can tell a lot about the values of a person by looking at their checkbook journal entries. I cannot tell you how many friends who I have put on a budget and they have said things like the following:
· “I would have never thought that I spent that much money at the bar in a month.”
· “I need to stop eating out so much!”
· “My girl is just going to have to learn to be happy with pizza!”
· “I didn’t know that my closet full of sneakers was costing that much over the past six months!”
The budget is the most important piece of the financial plan. It is time consuming when you first start to organize your finances in this fashion. However, as with any other financial principle and habit, we must make a diligent effort to incorporate the language and actions of economic empowerment into our daily lives. Sixty percent of America is spending more money than they earn every month because they have not learned the habit of budgeting.
Eliminate Credit Card Debt: Many people feel that it is not important to eliminate credit card debt before investing in the market. Credit card debt has variable interest rates that can go as high as 30%. The national average annual percentage yield being paid by the average person in the US at the time this is being written is approximately 15%. Average credit card balance in each household in the US is around $9,000 and steadily increasing. If you have $5,000 in cash, have a credit card balance of $9,000, it does not make sense to put that $5,000 at risk to HOPEFULLY get a 15% return in the stock market when you are CERTAIN that you have to pay 15% on your credit cards. Whatever extra cash you possess, use that money to pay down your credit card debt.
Prepare an Emergency Fund: It is important to have 3-6 months of living expenses saved before you invest in the market. Recently, in October of 2006 when the Detroit teachers were on strike for 8 days, there were many teachers at the Credit Union applying for loans because they didn’t have enough savings to last for much more than a week. Additionally, these savings should be placed in a high yield savings account. “High yield” refers to the interest rate on the account. In a regular checking account known to have as low as a .35% interest rate or 0%, you are losing money when you factor in inflation.
Inflation is the rise of the general level of prices in the nation related to the increase in amount of money in circulation. The result of inflation is the loss of value of currency. Inflation is why you could by a candy bar in the 70s for nickel but have to pay as much as a dollar at many stores today. Inflation is the reason that gas prices continue to increase making it more expensive to drive. If you are keeping your money under the mattress, in a safe in the basement, or anywhere that is not earning interest then your money is loosing value as you read this. Putting your money into a high yield savings account will ensure that your money will earn interest that will outpace inflation thereby retain its value and even grow in real value. Good examples of high yield savings accounts are ING Direct, Emigrant Direct, and One United Bank. I saved the best for last in this case because One United Bank is a Black owned bank which is giving one of the highest rates of return in the country as this is being written.
I was watching CNN and saw an older gentleman being interviewed who was worth over two million dollars. That might not sound amazing to you but it is very amazing when I learned that he had never in his life earned over $11/hour. He made a practice of investing his money and living beneath his means. He made sure to include another monthly bill to pay himself within a savings/investment account on a monthly basis. Investing is not just for the rich, but for all income and age levels. The less you earn, the more important it is to be mindful of your expenditures. Less income means less financial protection to provide a cushion during financial setbacks (job loss, salary reduction, rising gas prices, or medical emergencies). Regardless of your income of financial position, it is up to you to make the decision to begin saving towards financial independence today!
[1] stock. (n.d.). Dictionary.com Unabridged (v 1.0.1). Retrieved November 15, 2006, from Dictionary.com website: http://dictionary.reference.com/browse/stock
[2] bond. (n.d.). Dictionary.com Unabridged (v 1.1). Retrieved February 28, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/bond
[3] real estate. (n.d.). Investopedia.com. Retrieved February 28, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/real estate
[4]entrepreneurship. (n.d.). On-line Medical Dictionary. Retrieved February 28, 2008, from Dictionary.com website: http://dictionary.reference.com/browse/entrepreneurship
Are YOU Still a Slave?Posted
Author: Ryan Mack, President of Optimum Capital Management, LLC
Slavery is not only a physical state but it is also a mental state. Any Black male or woman carrying the notion that he/she does not have the ability within himself to attain economic prosperity, or who feels as if he/she must rely upon the decisions and influence of others, who seemingly hold the key to his financial future, is still a slave. Let me explain the concept of slavery as it relates to economic independence and financial empowerment.
African-Americans come from a strong bloodline of prosperity within a rich ancient ancestry. However, here in the U.S., an oppressive society has been successful in creating the overwhelmingly popular, inaccurate perception within African Americans that we are incapable of creating our own economic reality—that we are incapable of achieving financial independence. It is unfortunate but true that many of us allow ourselves to believe this and therefore allow an oppressive society to control our lives and shape our destinies. If it is true that the next phase of the civil rights movement will be fought on an economic front, it is imperative that the African-Americans remove themselves from this form of mental slavery that continues to prevent them from achieving the level of economic independence that we are capable of achieving.
Are you a slave? This is a question that all Blacks must ask themselves before they can effectively attempt to contribute to the advancement of the Black race, and certainly before they can understand the critical importance of financial empowerment. Let’s examine the definition of the word “slavery”.
Slavery[1]
The first definition describes a “physical” state in which someone is physically bound and held as a piece of property. The second and third definitions are not necessarily a physical state of being, but can also be a mental state of being. If I as a person allow you to influence or keep me under your control, but you do not have me bounded with any physical constraints or boundaries, then the control and influence must be that of a mental state. In essence if I have allowed others to control me and/or my destiny, then I am still a slave.
Consider cases of Harriet Tubman and Sojourner Truth, both of whom were born into slavery; both were able to overcome their physical states of slavery by escaping. However, before overcoming the physical state of slavery, they had the tougher task of breaking the mental “chains” that resulted from the years of oppression brought upon by their masters. They both had the daunting task of realizing that the influence and control of their masters were not necessary for them to lead a productive and fruitful life. Likewise it is up to all African-Americans to realize that these mental chains of slavery must be broken in order to walk the road to financial independence.
So are you a slave? Below are a series of questions that you can answer to assist you in determining if your mentality is that of a slave or if you have taken the first important step to financial freedom by breaking the mental chains of bondage.
1. Oppression, racism, and discrimination are substantial obstacles to overcome and have understandably resulted in the lack of financial success for many African-Americans. Is it possible to overcome these obstacles and be successful?............................................................................................. Yes No
2. Is it possible for someone to be successful who comes from an inner-city neighborhood without government and/or family support? …………. Yes No
3. Ward Connerly of the American Civil Rights Institute is attempting to end affirmative action, deeming it to be unconstitutional and racist. If he is successful will it be possible for Blacks to be successful? …………... Yes No
4. Will you be able find a legal way to continue to financially support yourself and/or your family if you lose your job tomorrow? ….…….…...…..... Yes No
5. A hurricane demolishes your home and leaves you and your family homeless. Is it possible for you and your family to recover?………..…………... Yes No
All five examples describe real scenarios that have already been experienced by thousands or could happen to you within the very near future. If you did not answer “Yes” to all of the above questions then you are under the control of the environment and/or the people within the environment. You too are a slave.
If you answered “Yes” to all questions, you should prepare yourself for a life of abundance. Your thoughts determine your words, which determine your actions, which determine your habits, which determine your character, which determines your destiny. If you have broken the mental chains of slavery, then your destiny will also be free to be as fruitful and expansive as you desire it to be.
[1] “slavery.” The American Heritage Dictionary of the English Language, Fourth Edition. Houghton Mifflin Company, 2004. 20 Dec. 2007. <Dictionary.com http:dictionary.reference.com/browse/slavery>.
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