Black Enterprise Financial Fitness Contest Winners

Kevin & Nicole Simpkins

professional money management. He believes they should invest in a growth stock fund in order, for example, to save toward the $10,000 down payment on the new home. Once they have achieved that goal, approximately 85%, or $8,500, of that money should be moved into a money market fund as a way to protect it from the volatility of the stock market. Any savings they have can then be added to the remaining $1,500 in the growth fund in order to grow capital for their next financial goal. To build their portfolio, the Simpkinses should also invest in a mutual fund that has, among its core holdings, a good mix of such large-cap stocks as Home Depot (NYSE: HD), America Online (NSYE: AOL) and Microsoft (Nasdaq: MSFT), instead of investing in individual stocks on their own.

Kevin and Nicole Simpkins
Checking: $2,000
Savings: $1,500
Life Insurance (cash value): $120,000
Bonds: $200
401(k): $2,000
TOTAL: $125,700
Credit Cards: $7,000
Student Loans: $19,500
Personal Loans: $3,000
TOTAL: $29,500

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