07.03.08
Posted in Budgeting, Fundamentals, Personal Finance, Wealth at 2:01 pm by jean
I apologize to my readers for not posting in some time. Life got busy as it occasionally does and it has been difficult to make heads or tails of trends in the markets. Even so called investment experts remain baffled.
My husband and I plan to sell our postage-stamp sized condo for larger digs in the up-and-coming Beverly neighborhood. Searching for a new home is an arduous task, but more relaxing than it was in the craziness of 2004 and 2005. It is comforting to know that we will get more for about the same price that we are paying in Lakeview.
House shopping farther from the mainlines of public transportation involves shopping for a new car as well. Naturally, with gas prices at record highs, we first considered a hybrid. Since we haven’t owned a car in six years, nor have we incurred car insurance expenses, we considered purchasing a hybrid at first.
But then we dug deeper…
In analyzing the amount of time we would drive versus the cost of the vehicle and the years to recoup the premium price tag of a hybrid, we discovered that hybrids weren’t cost effective for our lifestyle. Does that mean we are off to buy an SUV? Absolutely not. Instead, we have settled on and will likely purchase a used Toyota Matix, a perfectly respectable fuel efficient car at a reasonable cost.
Why used? Read The Millionaire Next Door and find out for yourself.
And for more details on why hybrids may not make financial sense, while still committing to the environment and lowering out of pocket fuel costs, read Carmen Wong Ulrich’s post on CNBC.com entitled Hybrids: Worth the Price?
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05.26.08
Posted in Personal Finance, Wealth at 7:07 pm by jean
In the hubbub of moving from Seattle to Chicago, I forgot many things and some I just downright chose to forget. Five years later, I receive a letter from my credit union in Seattle saying, “Respond to this letter or your account will be closed!” Thinking the letter a hoax, I look up my credit union’s number and give a call. Lo and behold, in all of the craziness of moving, I left behind $150 in an old checking account with the credit union. I closed the account post haste and moved the funds to Chicago.
Don’t leave behind what is rightfully yours. Fortunately, you don’t have to wait five years like I did. Visit www.missingmoney.com to run a search on your name and deceased relatives’ names to discover if there is any missing money that you need to move!
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05.18.08
Posted in Budgeting, Debt Management, Personal Finance, Wealth at 8:33 pm by jean
Every Sunday, I do my grocery shopping. Right after I clip coupons from the Sunday paper, I prepare my list and head out early in the morning to beat the crowds. Today, I got a late start and a first hand account that food prices are hitting people hard.
One shopper commented, “There are no deals today.” Many others toted a handful of coupons as they walked the aisles. Never before have I seen so many coupon clippers. As food prices soar and putting food on the table becomes more and more of a struggle, coupons no longer are a frugal, social stigma. They are a symbol of survival in these economic times.
Don’t be afraid to clip coupons to save dollars on a grocery bill. Make clipping coupons a habit for life and follow the path of true millionaires.
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04.25.08
Posted in Budgeting, Debt Management, Investing, Personal Finance, Tax at 5:23 pm by jean
The government announced that due to improvements in the IRS computing systems, ecomonic stimulus checks and direct deposits will go out one week ahead of these schedules. The schedules are according to the last two digits of the primary filer’s social security number.
Remember, the best thing you can do with your stimulus money is to save it or use it to pay off your debts. But don’t add on more debt. America is overspent as it is.Â
DIRECT DEPOSIT
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 Last two SSN digits:
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 Payment will be transmitted by:
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 00 through 20
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 May 2
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 21 through 75
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 May 9
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 76 through 99
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 May 16
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Â
Â
Â
 PAPER CHECK
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 Last two SSN digits:
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 Payments will be mailed by:
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 00 through 09
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 May 16
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 10 through 18
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 May 23
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 19 through 25
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 May 30
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 26 through 38
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 June 6
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 39 through 51
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 June 13
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 52 through 63
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 June 20
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 64 through 75
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 June 27
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 76 through 87
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 July 4
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 88 through 99
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 July 11
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04.18.08
Posted in Budgeting, Tax, Wealth at 10:37 am by jean
Although a huge tax refund feels like winning the lotto in April, prudent tax payers should avoid it.
A huge refund in your pocket signifies that you loaned money to the government tax free. Okay, granted, savings and money market account interest rates produce dismal returns these days, but there is nothing worse than loaning money to the government at 0% interest. Change your withholding to have less taken out of your paycheck.
Accurate withholding is not an easy thing to pin down when you really don’t have an idea of your earned income or deductions for this current year, but with the help of the IRS Tax Withholding Calculator, you can pin your withholding down as best as you can, ensuring more money in your pocket and less free money in the Fed’s coffers.
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03.17.08
Posted in Budgeting, Debt Management, Investing, Personal Finance, Retirement, Wealth at 3:24 pm by jean
Within 72 hours, Bear Steans’ went from the hunky-dory billion dollars powerhouse to “two buck chuck”—the 2 bucks a share value of the 85 year old investment firm. Yep, Wall Street eats risk takers alive and it’s about time the greedy got a reality check. Today is their day of atonement.
But what about the run-of-the-mill investor? Do you stay in mutual funds, stocks and bonds, or do you move everything to cash? How do you weather the storm created by these greedy imbeciles?
The first rule is:
DON’T panic. The worst drops in the market precede the largest gains. Those that weathered the Great Depression woke up to increased stock values. Keep your money where it is to avoid the gut-wrenching, on the verge of puking, rollercoaster volatility that the market enjoys today, up 100 points one day, down 150 the next. Timing the market will result in a loss and by moving out of mutual funds and stocks, you acknowledge a loss.
The second rule is:
Diversify. If you haven’t already, consider spreading your risk across a variety of stocks and bonds, both international and domestic. Bond investors—rejoice! Bond investments are up on average of six or more percent. A six percent gain takes a nice chunk out of a ten percent loss in equities. Spread out and enjoy the ride.
The third rule is:
Invest a little bit each time. Called dollar cost averaging, investing a set amount each week or each month insures against an overall loss in the market. Guaranteed to see results, your investments over time will occur at market lows, market highs and market ‘tweens. Once low is now high, once high is now low, and ‘tween will always be ‘tween. You are guaranteed to see better returns using dollar cost averaging than if you timed the market.
As long as you follow these three rules, you will be able to ride out the carnage and the cannibalism that is Wall Street.
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03.09.08
Posted in Insurance, Wealth at 3:58 pm by jean
If you have an insurance rider in your homeowner’s policy for valuable golden items such as engagement rings, consider getting them reappraised.
Gold prices have soared in the last two years and the value of your gold items has risen as well. The same wedding ring set that my husband purchased for me over two years ago is worth $500 more now just due to the cost of gold.
But what if my ring was stolen and I chose to file a claim with my homeowner’s policy? My insurance company would write a check the ring’s appraised value on record, its estimated value two years ago.
Market highs for diamonds, gems or precious metals can significantly reduce the replacement value of your theft claim. You will not be able to purchase a new item at the same price that you paid two years ago or more. Quite simply, gold costs more.
It makes sense to reappraise valuables when prices, such as gold and platinum, soar through the roof. Just don’t forget to notify your insurance company of the new appraised value.
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02.28.08
Posted in Budgeting, Personal Finance, Retirement, Tax at 5:58 pm by jean
If your income is below $26,000 (single, married filing separately) or $52,000 (married filing jointly), take advantage of the Saver’s Credit! The IRS will allow you to take a credit of 10% to 50% of the amount that you contribute to an IRA, Roth IRA, 403(b) or 401(k).
It makes sense to tuck away money into retirement even at these lower income thresholds if you are getting money back on the money that you put into retirement.
To obtain the credit, complete IRS Form 8880 and file with your 1040 or 1040A.
Students and those born after January 1, 1990 are not eligible to take advantage of the credit.
So start socking the money away and get paid to do it!
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02.03.08
Posted in Budgeting, Debt Management, Investing, Personal Finance, Wealth at 2:20 pm by jean
Actually, I could care less about the Super Bowl this year. My husband’s aunt hails from Boston and she would crucify me if she reads this post. She loves her Pats. But I am cheering for the Giants this year.
Few people have studied it, but many have heard it. Since 1967, financial analysts tracked the stock market with the Super Bowl winners. Although a tongue in cheek analysis, the statistic proves startling…almost scary.
If the AFC wins the Bowl, the market typically falls for the remainder of the year. If the NFC wins, the opposite holds true. Markets tend to rise.
So if you want the market to rise this year, send positive energy to the Giants!
And remember, please vote on Super Tuesday. It doesn’t matter if you are Republican, Democrat or Independent. Without a vote, you rob yourself your ability to change your future financial health. Voting is power and to read an example of such power, visit my post Jesse “The Body” Ventura Power.
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01.17.08
Posted in Budgeting, Debt Management, Investing, Personal Finance, Retirement, Wealth at 10:22 am by jean
I have been following the 2008 Election process with rapt attention. It is such an interesting study in organizational behavior from the perspective that this nation as one large company.
Last night a CNN commentator (I apologize. I can’t remember her name to properly cite her.) quipped that we are a nation living like we are addicted to crack. We spend and spend and spend until the money dries up and we are begging for our next hit. A smile spread across my face. FINALLY! People recognize that we have been supplying our nation with stimulus packages that have kept the drug trafficking going but has created a whole nation full of consumers that need to go into rehab.
If you are one of these drug addicts and you want rehab yourself into a millionaire, you must:
Get help. Work with a financial planner, a family member or Consumer Credit Counseling. Knowing where your money needs to go is the first step to rise above the influence.
Save. Period. There is no way around it. Start paying off your debts and start putting money away. Those that have saved for the last few years are already positioning themselves to reap the rewards of the subprime housing disaster by gobbling up a home on the cheap. Good for them. For everyone else, just stop shopping. It’s that simple.
Invest prudently. Don’t let these drops in the stock market freak you out. Drops are normal and can’t be sustained indefinitely. Recessions are only temporary. If you have a diversified portfolio of stocks or mutual funds you automatically insure yourself against these fluctuations.
Incidentally, in that same CNN segment, the Fed Banks ran a funny commercial urging people to stop spending on things that they don’t need and start feeding the piggy bank.
About freakin’ time….
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