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Show Thursday, August 28, 2008 SPRINGVILLE HERALD 15 j "' . I ill Caleb Christensen was chosen the SHS Defensive Player of the Week in the football game against Dixie Friday. Mira Goodman was chosen thhe SHS Special Teams Player of the Week in the Friday football game against Dixie. Aaron Gray was chosen the SHS Offensive Scout Team Player of the Week in the football game against Dixie. Colton Ramon was chosen the SHS Offensive Player of the Week in the football game against Dixie last week. 17 .woBmrnmsT " ojAw5iw,:v.-.:.v.:.:.:.v.v.. . .cvm -:-:::-: gill iujiiiiijiii .mum .ww w w I w 1 1 1 J 1 1 1 1 1 1 1 1 1 I ill 1 1 1 1 1 1 1 1 1 1 1 1 ! iiuMiiW'Mi,'mJM m ".:-. " - 'M '' ' ' , ; ..- : ; !)..-., -s . ; """"'U ' , I ! If , iAf j ; Si'- . ' - " X ' --. . ' : ; O--" . : Lit E S 1 I...JT .. - Orchard Park Rehabilitation and Healthcare 740 North 300 East Orem 801-224-0921 Borrowing retirement a costly mistake Jason Alderman The current housing crisis and other economic woes are taking their toll on people's wallets. Caught between escalating mortgage mort-gage payments and rising fuel and food costs, many folks are having difficulty paying their bills. Not so long ago, some people probably would've just taken out a home equity loan, but with property values plummeting, their equity may already be exhausted ex-hausted - not to mention, those loans are now harder hard-er to get. Which leads me to cite a disturbing behavior that's on the rise: Tapping long-term long-term retirement savings accounts to pay short-term short-term bills. Loans and withdrawals from 401(k) plans, IRAs and other tax-sheltered plans are allowed in many cases but the financial consequences con-sequences can be extremely extreme-ly costly, because of taxes, penalties and lost investment invest-ment income. Here are a few cautions to consider before raiding raid-ing your nest egg: 401(k) loans. Many employer-' sponsored 401(k) retirement retire-ment plans let participants borrow from their account to buy a home, pay for education or medical expenses ex-penses or for certain other reasons. Usually you must pay back the loan within five years (sometimes the timeframe is longer for home purchases). However, if you miss payments or leave your job, you must pay off the loan immediately (usually within 30 to 90 days) or you'll owe income tax on the remainder - as well as a 10 percent early distribution dis-tribution penalty if you're under 59 xh. That 10 percent per-cent penalty could quickly quick-ly erase any investment gains your account might have earned. Another potential down- Brandon Harris was chosen the SHS Defensive Scout Team Player of the Week in the football game against Dixie. rvnrnrf im nruADii & SENIOR CARE Orchard Park recently held a . community blood drive.Stand-as drive.Stand-as , " r ing outside the blood mobile ; dJL-Tt U is administrator Jared Swain. Orchard Park is dedicated to community efforts, especially ; J!- ...lt-i .U.L I ' piUVIUiilU eXUMIL'Ht It'lldU dllU nursing services. Feel free to call with any questions ques-tions regarding our services! from accounts side to 401(k) loans: Because Be-cause you would now have a loan payment, you might be tempted to reduce your monthly contribution amount, thereby reducing your potential long-term account balance and earnings. earn-ings. 401(k) plan and IRA withdrawals. Some 401(k) plans also allow hardship withdrawals to pay for certain medical or higher education expenses, funerals, funer-als, buying or repairing your home or to prevent eviction or foreclosure. You'll owe income tax on the withdrawal - and often the 10 percent penalty as well. Unlike employer plans, traditional IRAs let you withdraw from your account ac-count at any time for any reason. However, you will be subject to income tax on the withdrawal - and usually usu-ally the 10 percent penalty as well. With Roth IRAs, you can withdraw the money you've contributed at any time, since it's already been taxed. However, if you withdraw the interest inter-est earnings before 59 Vi, you'll face that 10 percent penalty. Further tax implications. Note that with 401(k) and traditional IRA withdrawals, withdraw-als, the money is added to your taxable income for the year, which could bump you into a higher tax bracket or even jeopardize certain tax credits, deductions deduc-tions and exemptions that are tied to your adjusted gross income. All told, you could end up paying half or more of your withdrawal withdraw-al in taxes and penalties. Compound earnings. Finally, if you borrow or withdraw your retirement savings, you'll lose out on the power of compounding, compound-ing, where interest earned on your savings is reinvested rein-vested and in turn generates gener-ates more earnings. You'll lose out on any gains those funds would have earned for you, which over a couple cou-ple of decades could add up to tens or hundreds of thousands of dollars in lost income. Bottom line: Think long and hard before tapping your retirement savings for anything other than retirement itself. If that's your only recourse, be sure to consult a financial professional about the tax implications; if you don't know one, www.plan-nersearch.org www.plan-nersearch.org is a good place to start your search. Jason Alderman directs Visa's financial education programs. Sign up for his free monthly e-Newslet-ter at www.practicalmo-neyskills.comnewsletter. www.practicalmo-neyskills.comnewsletter. itatiam Voted 1 in Utah County 5 Years in a Row! Private Rooms! "Our Goal is to get you Home!" Lv.OtiliQnm . J Hobble Creek School gets four-year arts grant Hobble Creek Elementary Elemen-tary School in Nebo School District has been awarded a four-year grant from the Beverly Taylor Sorenson Elementary Arts Program. The main focus is to work side-by-side with teachers teach-ers to help them provide new learning experiences through the use of the State Theatre Core Curriculum integrating in-tegrating it into all areas of classroom studies. The grant also requires participation in research and development projects through the State Office of Education and State Teacher Teach-er Education Programs to document student achievement achieve-ment and academic growth through participation in the fine arts-especially drama. As part of the Sorenson Grant, Garth Bird, principal of Hobble Creek Elementary Elemen-tary in Mapleton, has hired David Len Allen, a veteran educator and performer, to help accomplish these goals. Allen, who goes by just plain "Len," received his Bachelor of Fine Arts degree from University of Wisconsin Wiscon-sin in music education and theatre. Much of his graduate gradu-ate work has been through the Utah Shakespearean Festival and Southern Utah University (SUU). For 30 years, Len has taught and directed students of all ages from pre-school to community college. He made his first appearance onstage at age four and began producing his own plays in second grade. At the age of 12, he received his first appointment as church organist and began arranging arrang-ing music soon after. In Utah, Len has helped found the Pages Lane Theater The-ater (Rodgers Memorial) of Centerville and served as resident actor and art director di-rector during its inaugural season. He was also a co-founder co-founder Terrace Plaza Playhouse Play-house in Weber County. Len served many years as Music Director for the Desert Des-ert Star Playhouse in Murray Mur-ray and was instrumental in bringing many popular hits such as "Forever Joseph," , "Miracle on 42nd Street and "Phantom of the Opera" to its stage. Allen is also a published composer, lyricist and author au-thor with over 75 titles in print. His composition "On a Still and Starry Night" was named to US Top Ten New Choral Works for 1994. His music is regularly performed per-formed by school, church and community choirs throughout the English-speaking English-speaking world. (Occasionally (Occasion-ally one even pops up on local "Sounds of Sunday" radio broadcasts.) Many of his manuscripts and non-published non-published "first editions" are now housed in the music archive ar-chive of the BYU Harold B. Lee Library. , Len and his wife, Angie, are parents to five grown children and one granddaughter. - X 1 t t 5 Bfjier Wayofffioing -...'..s ; if' . ; p4K .v e i, ' 5 v . ' ' " . , . .., V Len Allen 1 - ' MU1IIIII. !X.t 1 Maple Mountain nrepiaces Quality Fireplaces at Discount Prices 414 South Main Spanish Some Restrictions Apply Expires 083008 1 J; Low-E&Argon J If I I !; Quaiifiesfor Utility : faCT)C )LTrSJ 1 Rebates wQxyUf T VTrW W ' JNoPavmenTN. S I f no interest i 1 Manuary200g i Dont miss out on this GREAT RATE. For a limited time only, State Farm Bank is offering the following promotional term CD rate. Oil me today for more information. r.FRTTFTflATF. 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