Financial BLACK Fitness ENTERPRISE Contest Winner #2 Jennifer Jones.

DECLARATION OF FINANCIAL EMPOWERMENT

From his day forward, declare my vigilant and life-long commitment to financial empowerment. I pledge the following:

1 To save and invest 10% to 15% of my after-tax income

2. To be a proactive and informed investor

3. To be a disciplined and knowledgeable consumer

4 To measure my personal wealth by net worth, not income

5 To engage in sound budget, credit and tax management practices

6 To teach business and financial principles to my children

7 To use a portion or my personal wealth to strengthen my community

8 To support the creation and growth of profitable, competitive black-owned enterprises

9 To maximize my earning power through a commitment to career development, technological literacy and professional excellence

10 To ensure that my wealth is passed on future generations

THESE DAYS, NOTHING IS MORE IMPORTANT TO Jennifer Jones than building her nest egg. During her lunch break last November, the 43-year-old designer of data circuits for AT&T in Lithonia, Georgia, was cruising the Web in search of information on retirement planning when she spotted our financial fitness contest. She entered the contest with no expectation of the outcome. "I didn't think I would win," she says. "I entered because I needed some help, I needed someone to set me up with a plan."

For years, Jones, who is single, has had to make sacrifices. Over the past two decades, most of her income went to the care of her two sons, who are now grown up. And, last year, she depicted $4,500 in savings to realize one of her dreams: home ownership.

To achieve her new goal, she has no time to waste. Jones, who has an annual income of $41,000, seeks to retire in 12 years and hopes she can spend part of her post-retirement years as the proprietor of a clothing out let. "I don't want to work until I'm 65 years old," she says. "I don't want to have worked hard and made sacrifices and then not be able to retire with some level of comfort."

Jones has several challenges to overcome. She currently has $3,381 in credit card debt. Much of it comes from money she spent to decorate her home, including $2,800 in new furnishings, Also. her 401(k) account, her primary retirement: investment vehicle stands at $2,300. She also has 12 shares of AT&T stock, which she can't touch until she retires.

An admitted "shopaholic," Jones is already making moves to correct her financial status. To reduce her debt burden, she recently arranged a debt-consolidation loan from her credit union. She has also made a commitment to boost her savings by more than 15% of her after-tax income and keep better tack of her bills so that she doesn't get behind in payments.

But she believes the key to a healthy retirement will come through gaining financial advice that will help her become a savvy investor, in fact, Jones has already targeted much of the $2,000 in contest winnings to be invested in mutual funds. "I need to find a way for my money to work for me." she says. "I want to place my cash in a solid investment and not touch it."

THE ADVICE

In order for Jones to start her financial fitness program. BE arranged for her to have her initial consultation with Les Netter, a financial advisor with SalomonSmithBarney in Atlanta. Focusing on her retirement goal, he suggested the following:

* Increase savings and find supplemental sources of income. As Jones whittles down her debt, she needs to significantly increase her savings, including an emergency fund with three to six months of income. Then she can start investing in mutual funds that will provide her both with diversification and professional money management.

* Make the maximum contribution to her 401(k) plan. Netter Bays Jones should take full advantage of her company-sponsored retirement plan, "Under her current plan, AT&T will match two-thirds of every dollar she puts in to her 401(k), up to 6%," says Netter, "She shouldn't let an opportunity like that slip away."

* Scrutinize her investment options within her retirement plan. Netter says Jones needs to make sure that she is investing in the right mix of funds. Because of her time horizon and tolerance for high risk, Jones will need to be aggressive in order to reach her goal. He suggests that she structure an aggressive stock or mutual fund portfolio. If Jones commits $3,366 annually to her 401(k), she will have a balance of $83,449 in her account by 2011, assuming an 11% rate of return.

To achieve this, Netter suggests that she diversify her 401(k) holdings. Currently, 40% of her portfolio is invested in AT&T stock. 40% in Fidelity Aggressive Growth Fund and 20% in international funds.

* Establish in Roth IRA. In addition to maximizing the amount of money Jones can put in her 401(k), Netter says, she can use a Roth IRA to accumulate money tax free and withdraw it, tax free at retirement. Since she is already enrolled in an employer-sponsored program, Jones is able to contribute up to $2,000 a year. With a Roth IRA, she will be able to withdraw contributions tax free at any time, but, generally, earnings have to remain untouched until she's 59 1/2 and at least five years have expired.

Jennifer Jones

ASSETS

Checking:                      $   214.00
Life insurance (cash value)     90,000.00
Stocks                             640.50(*)
401(k)                           2,300.00

TOTAL                          $93,154.50

LIABILITIES

Credit cards                   $ 3,381.00
Car loan                        13,200.00
Mortgage                       104,500.00
Debt-consolidation loan          4,700.00

TOTAL                         $125.781.00

NET WORTH                     $-32,626.50

(*) AS OF DECEMBER 16, 1999