Black Enterprise Financial Fitness Contest

Winner #4 Sondra Helenese

company’s 401(k) plan. He suggests Helenese use $1,000 of the $2,000 that she received from be for winning the Financial Fitness Contest to begin her retirement savings. The investment will reduce

  • her taxable 1999 income of $11,000. What should she invest in? Since Helenese is starting her career, Davis says, she can afford to be aggressive and divide her investment in the following manner: 50% in technology-heavy mutual funds and another 50% in large-cap funds.
  • Construct a growth portfolio with mutual funds. Davis says Helenese should use her remaining winnings to start an investment portfolio geared toward growth. Before investing directly in stocks with a broker, he suggests that she buy mutual funds and then engage in the practice of dollar-cost averaging-setting aside $100 a month to invest in a mix of technology and large-cap mutual funds. Says Davis of the plan: “She should start investing now because even though Sondra may be investing small amounts of money, time is on her side.”
  • Sondra Helenese
    Savings: $1,000
    TOTAL $1,000

    Student loans: $35,000 Credit cards: 1,100
    Other loans: 460

    TOTAL $36,560
    NET WORTH -$35,560

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