$300,000 In Taxes Forgiven

Antique Show Generates Over $23,000 For Hospital

By RON BARTIZEK rbartizek@leader.net
 Wednesday, December 14, 2005 &nbsp;&nbsp;&nbsp;&nbsp;Page: 1C 





If saving is a virtue, we could stand a little religion. That's one way to
interpret the region's standing in the latest "Nest Egg Index" published by
the national investment firm A.G. Edwards. &nbsp;&nbsp;&nbsp; 
 According to the index, the Wilkes-Barre/Scranton/Hazleton area is below
the national average when 12 savings and investment factors are compared.
Those include the proportion of households that have various savings products,
net worth, housing value and debt level. The factors were adjusted to reflect
the cost of living in each area. &nbsp;&nbsp;&nbsp; But the news isn't all bad. "Your home ownership is strong there," said
Sophie Beckman, an Edwards financial planning specialist. &nbsp;&nbsp;&nbsp; 
 Beckman said soaring home values may have skewed the results for some
high-ranked areas, such as San Jose, Calif., which topped the survey. But big
mortgage balances can offset the property values. &nbsp;&nbsp;&nbsp; 
 Both home values and mortgage balances were below average here. And the
debt level - particularly credit cards - is "significantly lower than the
national average," Beckman said. &nbsp;&nbsp;&nbsp; 
 The big shortfall comes in income and retirement saving. The participation
rate in 401(k) plans "was well below average." &nbsp;&nbsp;&nbsp; 
 The median household income in this area is about 20 percent below the
national figure. "One could be driving the other," Beckman said, with workers'
budgets stretched to the point they can't contribute to retirement savings. &nbsp;&nbsp;&nbsp; 
 Tim Yurek, a financial advisor at LPL Financial Services in the East
Mountain Corporate Center, said he thinks most people in this region save as
much as they can. &nbsp;&nbsp;&nbsp; 
 "Most people I'm dealing with seem to be very good savers," Yurek said.
They're in the habit of consistently putting money away, although, "The fact
of the matter is, you could always be better." &nbsp;&nbsp;&nbsp; 
 Yurek acknowledged that he generally deals with people who have higher
incomes and net worth. "Most people max out to the company match," in their
company retirement plan. &nbsp;&nbsp;&nbsp; 
 Beckman lauds that strategy. "It employs a basic concept of paying yourself
first." And money saved in a retirement account grows tax-deferred,
compounding its value. &nbsp;&nbsp;&nbsp; 
 From there it becomes a personal issue of whether it's prudent to save
more, Yurek said. &nbsp;&nbsp;&nbsp; 
 The national savings rate plunged to minus .7 percent in October, which is
the lowest of any industrialized country. About half of American households
nearing retirement have $10,000 or less in an IRA or 401(k) account, according
the research published by the Pew Charitable Trust. &nbsp;&nbsp;&nbsp; 
 According to the index, the nation's best savers live in San Jose, Calif.
But the majority of high-ranking areas - five of the top 10 - are located on
the East Coast. Lancaster (No. 27) was the highest-ranked Pennsylvania market.
The state ranked 17th with an index of 103.44, well behind top-ranked New
Jersey's 114.35. &nbsp;&nbsp;&nbsp; 
 This area ranked 160th out of 318 markets, with an index value of 98.42. &nbsp;&nbsp;&nbsp; 
 Six of the top 10 states were in the Northeast. Mississippi brought up the
rear. &nbsp;&nbsp;&nbsp; 
 While San Francisco (No. 4), Washington D.C. (No. 11) and Boston (19)
ranked highly, major cities New York, Los Angeles and Miami didn't make the
top 200. &nbsp;&nbsp;&nbsp; 
 "There may be a perception that economic and savings opportunities are more
limited in smaller cities," Beckman said. "But in many of the small markets
that scored well on the index, unemployment is lower than the national average
and participation in savings plans such as 401(k)s is relatively high." &nbsp;&nbsp;&nbsp;

Area Savings Rate Below Average / Strength Of Home Ownership Helps Balance Picture, Expert Says