New Credit Card Rules Effective August 22

Image via WikipediaLast week, new rules kicked in concerning the Credit Card Accountability, Responsibility, and Disclosure Act of 2009. These new rules, that the credit card companies are balking at, are finally here and you should be seeing them take affect on your next credit card bill.

New rules from the Federal Reserve mean more new credit card protections for you. Here are some key changes you should expect from your credit card company beginning on August 22, 2010:

Reasonable penalty fees

Let's say you are late making your minimum payment.

• Today: Your late payment fee may be as high as $39, and you likely pay the same fee whether you are late with a $20 minimum payment or a $100 minimum payment.
• Under the new rules: Your credit card company cannot charge you a fee of more than $25 unless:
• One of your last six payments was late, in which case your fee may be up to $35; or
• Your credit card company can show that the costs it incurs as a result of late payments justify a higher fee.

In addition, your credit card company cannot charge a late payment fee that is greater than your minimum payment. So, if your minimum payment is $20, your late payment fee can't be more than $20. Similarly, if you exceed your credit limit by $5, you can't be charged an over-the-limit fee of more than $5.


Additional fee protections

• No inactivity fees. Your credit card company can't charge you inactivity fees, such as fees for not using your card.
• One-fee limit. Your credit card company can't charge you more than one fee for a single event or transaction that violates your cardholder agreement. For example, you cannot be charged more than one fee for a single late payment.

Explanation of rate increase

• If your credit card company increases your card's Annual Percentage Rate (APR), it must tell you why.

Re-evaluation of recent rate increases

• Today: Your credit card company can increase your card's APR with no obligation to re-evaluate your rate increase.
• Under the new rules: If your credit card company increases your APR, it must re-evaluate that rate increase every six months. If appropriate, it must reduce your rate within 45 days after completing the evaluation.

These are simple changes that will streamline the rules across all credit card companies. There won't be different rules across different companies anymore. 

Debt and Marriage: When Do I Owe My Ex-Spouse's Debts?

Image via WikipediaWhile researching this article, I Googled the words "debt" and "divorce", I got over 14 million results. In our society, debt and divorce go hand in hand. With money problems the leading cause of divorce in our country I can see why. Even with many intact marriages money is a big point of contention. The bills are continually rising, it costs a lot to raise children and many other factors contribute to the problem. Sadly the strain, of money problems, can be devastating and many marriages end up in divorce.

In a divorce, the marriage you entered into with such high hopes, can be ended with the signature of a judge. The only problem is that debts are not eliminated so easily. If your in the pre-stages of divorce you may want to learn how the debts of the marriage are going to be looked at by the creditors. You may agree with your spouse or the judge may decide for you who is to pay the debts but your debtors don't look at it the same way you are.

With all forms of debt entered into you will find two ways the responsible parties are listed:

Individual Account:
Your income, assets, and credit history are considered by the creditor. Whether you are married or single, you alone are responsible for paying off the debt. The account will appear on your credit report, and may appear on the credit report of any "authorized" user. However, if you live in a community property state (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you and your spouse may be responsible for debts incurred during the marriage, and the individual debts of one spouse may appear on the credit report of the other.

Pro's and Con's:
If you're not employed outside the home, work part-time, or have a low-paying job, it may be difficult to demonstrate a strong financial picture without your spouse's income. But if you open an account in your name and are responsible, no one can negatively affect your credit record.

Joint Account:
Your income, financial assets, and credit history - and your spouse's - are considerations for a joint account. No matter who handles the household bills, you and your spouse are responsible for seeing that debts are paid. A creditor who reports the credit history of a joint account to credit bureaus must report it in both names (if the account was opened after June 1, 1977).

Pro's and Con's:
An application combining the financial resources of two people may present a stronger case to a creditor who is granting a loan or credit card. But because two people applied together for the credit, each is responsible for the debt. This is true even if a divorce decree assigns separate debt obligations to each spouse. Former spouses who run up bills and don't pay them can hurt their ex-partner's credit histories on jointly-held accounts.

Authorized Users:
If you open an individual account, you may authorize another person to use it. If you name your spouse as the authorized user, a creditor who reports the credit history to a credit bureau must report it in your spouse's name as well as in your's (if the account was opened after June 1, 1977). A creditor also may report the credit history in the name of any other authorized user.

Pro's and Con's:
User accounts often are opened for convenience. They benefit people who might not qualify for credit on their own, such as students or homemakers. While these people may use the account, you - not they - are contractually liable for paying the debt.

Action Plan:

• If you're considering divorce or separation, it's important to make regular payments so your credit record won't suffer. As long as there's an outstanding balance on a joint account, you and your spouse are responsible for it.
• If you divorce, you may want to close joint accounts or accounts in which your former spouse was an authorized user. Or ask the creditor to convert these accounts to individual accounts.

Failure to do this usually leads to one spouse paying for a while but later defaulting because of lack of income or out of spite. This results in the other spouse having a ding on their personal credit report or eventually being sued by the creditor for not paying.

In a joint mortgage, the only way to get your name off the document is to have the home refinanced. Just having a judges decree for one spouse to pay the debt is not recognized by the creditor. Divorce does a good job of separating you legally from your spouse but does a bad job divorcing you from your spouses debts. It's going to be your job to divorce yourself financially from your spouse.

The 15 Best Budget, Economic, and Retirement Financial Quotes

Quotes are a great way to learn a concept in a quick and dirty way. There is a lot a wisdom in quotes and their fun too. I have listed 15 quotes from 3 interesting subjects.

Budgets

The basic foundation of personal finance is the budget. Like Dave Ramsey says, " If you don't tell money where to go, it will just leave." Budgeting is the the hardest thing to do when you are just getting started and if you want to win in the money game, it's a skill you need to learn.

"Some couples go over their budgets very carefully every month; others just go over them."

-Sally Poplin

"A budget is just a method of worrying before you spend money, as well as afterward."
-Unknown

A budget tells us what we can't afford, but it doesn't keep us from buying it.
-William Feather

The amount of money you have has got nothing to do with what you earn. People earning a million dollars a year can have no money. People earning $35,000 a year can be quite well off. It's not what you earn, it's what you spend.
- Paul Clitheroe

Never spend your money before you have it.
- Thomas Jefferson


Economists

Another of my favorite financial subjects are economists. I have to admit that I admire these guys, you have to be very smart to understand all those theories and laws. Yet there is still disagreement by economists in differing theories. The fight between the Keynes theory and the Hayek theory of economics goes on. All the stimulus we are currently living with today comes from the Keynes theory of economics. Maybe we should try Hayek's theory?

An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.
-Laurence J. Peter

An economist's guess is liable to be as good as anybody else's.
-Will Rogers

Ask five economists and you'll get five different answers - six if one went to Harvard.
-Edgar R. Fiedler

Definition of a Statistician: A man who believes figures don't lie, but admits than under analysis some of them won't stand up either.
-Evan Esar

If all the economists were laid end to end, they'd never reach a conclusion.
-George Bernard Shaw

Retirement

This is both my favorite subject and goal. Retirement is a two part process. First the accumulation of retirement funds and assets. This part takes up the better part of our lives. Followed by the retirement part that fills hopefully the latter third of our life if we are lucky. It's like a house you take 50 years to build and that you have to live in another 25 years. The problem is you don't know if you did a good job until it's to late.

Don't simply retire from something; have something to retire to.
-Harry Emerson Fosdick

Retirement is wonderful if you have two essentials — much to live on and much to live for. – Author Unknown

Retirement means doing whatever I want to do. It means choice. 

– Dianne Nahirny

When a man retires, his wife gets twice the husband but only half the income.

– Chi Chi Rodriguez

Retirement is wonderful if you have two essentials — much to live on and much to live for. – Author Unknown

Mobile Home Becomes Vacation Home Becomes Retirement Home

Image via WikipediaNear my home there are many mobile home parks filled with retiree's. It's a great place to live because the weather is great most of the time and it's a ten minute drive to the beach. Many people chose manufactured homes because of the lower costs when compared to apartments, condos, homes, and townhouses.

Friends from Illinois come down to visit us often and they stay in their manufactured home. Whenever they visited they had to pay for a hotel. Over the years spending money on a place to stay got pretty expensive. Through the grapevine we learned about a manufactured home nearby that was being sold. We went over to take a look at it and recommended it to our friends. They fell in love with it, the rest is history. For them it works out great because they save on hotel and restaurant expenses allowing them to stay with us longer. When they finally get around to retiring they will sell their Illinois home and move permanently here.

Manufactured homes are often overlooked as an answer to the affordable housing problems we have in the country. An idea like this would work out for newlyweds, students,and people just starting out in the work force. It would save them a lot of money over more expensive alternatives like apartment rentals. It's something to look into.

Cities Using Special Tax Accessments To Cover Budget Shortfalls

Image via Wikipedia

More and more cities are having trouble meeting revenue requirements for the city employees pension plan. City and state employees along with firefighters and police have yearly pension obligations. They are usually funded by property tax or income tax revenues. What happens when these pension plans are not funded because of a revenue shortfall?

Pension plans are usually created by the employee unions and the city leaders. These plans have to be funded or the unions become very angry. This leaves cities no other choice but to go to where the money is: the residents of the city.

In one of our neighboring cities this problems is happening. In Lake Worth, city commissioners are working toward making a plan to levy a per-building assessment on homes and commercial buildings to cover a shortfall in firefighters pensions. Commissioners voted to take the first step in levying a fire assessment for the budget year that begins Oct. 1. The city's annual fire assessment would be $60 per residential unit, 13 cents per square foot for commercial buildings, 2 cents per square foot for industrial or warehouse buildings and 9 cents per square foot for institutional buildings.

Notices showing the amount owed will be mailed to each affected property owner on Sept. 1. A public hearing on the assessment is scheduled for 6 p.m. Sept. 22 at city hall. The commission is expected to vote on the fire assessment following the public hearing.

When the assessment is O.K.'d as proposed, the city will use most of the $1.4 million to cover part of the cost of firefighter pensions, which cost the city $1.8 million this year.

The Lake Worth city commissioners have come up with a clever plan to cover the shortfall. The only problem is the publics reaction to it is not good. Many people have voiced concerns that raising taxes in this financial environment is counter productive. Other concerns are that fulfilling the never ending pension needs of the fire fighters is representative of the Social Security shortfalls we currently experiencing in Washington. Many believe that all city and state employees should fund their own pensions with their own money. 

The current pension system is broken. The unions should see this and ween the firefighters off the taxpayers to a self supporting system. We are seeing more pension and budget shortfalls every day. Don't bleed the tax payers anymore and don't let the employees of the city and state goverment trust in a pension system that will eventually collapse under it's own weight. 

Marshmallows Can Predict If You Will Be A Saver Or A Spender

In the 1960s, Stanford psychologists conducted an experiment on a group of 4 year olds, and it yielded absolutely fascinating results. They put a group of children, one-by-one, in a room with a marshmallow. They told the children they could eat the marshmallow whenever they wanted, but if they waited till the adult came back they’d get two marshmallows. Recently, the experiment was conducted again, and filmed. So here’s what happened…

It’s pretty strange to watch their behavior. Because they are like little drug addicts. They’re sitting there, trying not to think about that marshmallow, but you can tell it’s the only thing in their whole world. One kid starts smelling it, before putting it down and putting his head in his hands, like he’s 40 instead of 4. Another looks away, trying to pass the time, but his fingers creep over and hold onto the marshmallow, as if to reassure him that his sugary prize hasn't up and vanished.

Only a small number could wait. The researchers studied both groups of children throughout their life, and discovered some fascinating patterns. The low delayers (failers)—those who could not wait until the adult came back to eat their marshmallow—were affected by a number of risk factors that did not affect high delayers (passers). Here is what they discovered:

The Ones That Couldn't wait:

• struggled more in stressful situations
• had trouble paying attention
• had greater difficulty maintaining friendships
• scored lower on the S.A.T. (by over 200 points)
• prone to a much higher body mass index
• were more likely to have drug addictions

So it turns out that this experiment is not just about a bunch of four year olds hungry for sugar. This is about all of us. This is about the power of patience. Financially, we are tested in the area of patience every day. We’re on our way home and we really want something that would be a lot cheaper at the grocery store. But the convenience store is a lot closer. And you’ll always pay for convenience. It’s closer, but it ain't cheaper.

When we delay gratification, not only does it pay off in the end, but it often pays off more substantially than if we had just gone for instant gratification. But you don’t inherit the ability to delay gratification. You develop it. You develop it by facing off against this decision over and over: do we spend more to get the thing we want now, or do we wait? What if we skipped the purchase entirely? The we’d still have the money with us later on when we needed it. And if we skipped the purchase and left it in an account, over time that money could increase through interest. Eventually we’d have two marshmallows instead of just one.

AAA Has 3 Apps To Help On Your Next Trip

Image via CrunchBaseI recently wrote about taking my stepson back to college for his 3rd year there. We live in South Florida and his school is in Tallahassee. Its a drive of 450 miles. Even though we have made it many times before I always have the GPS on showing me where I am and it helps when we stray a little to do some outlet mall shopping.

I also am a AAA member. I like them because they are great for money saving deals and of course when your locked out of your car they save the day. They have a great website which gives you a lot help when you need to make your travel plans. But when your on the road it's not always convenient to take the laptop. Luckily AAA has made some great smart phone apps.

AAA TRIPTIK MOBILE

Previously available for iPhones, you can now download it to your Android! The AAATripTik Mobile app is a GPS-based mobile version of AAA’s popular TripTik Travel Planner. Services provided by the app include:

• Turn-by-turn directions, including voice if enabled.
• Pinpointed AAA Approved and Diamond Rated hotels and restaurants, attractions, AAA offices and discount locations along a user’s route.
• The option to call for lodging reservations with the touch of a button.
• AAA office locations
• Points of interests are automatically updated as your location changes or as you move the map

This is my favorite because when you hungry, in an area your not familiar with,finding a good place to eat is a problem. Not with this app, it gives you a birds eye view of all the restaurants around you, including the ones that give discounts.

Named one of the “Top Six Apps to Battle Rising Gas Prices” by the Associated Press, the app also identifies the cheapest fuel near you using data updated daily from more than 100,000 fuel stations nationwide, making it a valuable savings tool in everyday driving.

AAA Discounts

This app also taps into the phone’s GPS technology to acquire the user’s location in order to display AAA Member Discount locations nearby. Downloaded more than 1.1 million times, the app displays discounts at more than 164,000 establishments across the U.S. and Canada, including:

• Attraction tickets: AAA offers discounts at dozens of the most popular summer attractions, including Disney World, Universal Orlando, SeaWorld, Six Flags and Busch Gardens.
• Lodging: With more than 31,000 AAA Approved and Diamond Rated lodgings, travelers are sure to find one that fits their budget and style.

AAA Roadside

While members can always summon service by calling 1-800-AAA-HELP, the AAA Roadside app brings AAA’s legendary roadside assistance to motorists’ fingertips. Downloaded by more than 560,000 users, the app allows members who experience a vehicle breakdown to quickly:

• Transmit their location to AAA using the phone’s GPS capability.
• Input and send vehicle description information, including year, make and model. Send specific breakdown details to AAA, which helps the auto club dispatch specialized assistance to help the member get back on the road.
• Identify the nearest AAA Approved Auto Repair locations and Hertz rental car locations.
• Utilize additional features, including a digital membership card and maps.

These free apps are available for download at the iTunes Store or Android Market. For more information on AAA’s mobile solutions, visit AAA.com/Mobile.

Simple Money Advice For The College Student

Image via WikipediaMy wife and I just got back from taking my step-son back to college. He is starting his 3rd year and has taken a lot of my advice on how to be smart with money. I have seen many of his friends fall into the easy trap of getting into credit card debt. So far he has heeded my warnings and stayed away form credit cards.

When the student is away at school and not under the influence of mom and dad all those great lessons learned can be forgotten. A little independence can sometimes short circuit good money lessons. So before leaving for college it's good to plan ahead.

A budget is necessary for managing your money. A written budget or one done online at personal finance websites like Mint.com can help in managing a budget and also track spending. It's important to put in the budget items that money will be spent on every month. Budget items like food, entertainment, clothing, gas, and essentials. It's important to track spending to see if the amount budgeted is adequate, we don't want anyone broke by Thanksgiving.

Getting a job. There are two good reasons for getting a job while at school. The first one is that the money earned will contribute to providing necessary funds to help support the student. It shouldn't be all up to mom and dad to support junior. Also the lessons of showing up for work on a regular basis is necessary in instilling the work ethic. A job teaches the responsibility of taking care of one self. Also having a job during the summer is important to maintain the students responsibility toward his own money needs.

Saving money. Just because the student has a job it doesn't mean all that money is to be spent. Some of that money should go into a savings account for unexpected or future expenses. It is thought by some students that their money goes toward all the fun things in life and the parents money goes toward paying the students school and living expenses. This is wrong because it teaches an entitlement mentality. Connecting the lesson that work = money is a life lesson all students need to learn.

Checking and Savings accounts. Setting this up before hand is critical to setting up a ground work for spending and is essential to staying on budget. The account should be one that would allow the parents to deposit money into it as needed. It doesn't hurt to use the joint access, of a checking account, to keep an eye out on what the student is spending money on. Once you check out the spending habits of the student and see everything is working well you usually won't have to check very much. This ability to take a peek at the account will be a natural incentive to the student to stay on track because they know the parents are looking in from time to time.

Credit Cards. This is one way students can get into trouble. The excuse to have a credit card for the student is that what if there were some unforeseen emergency. With the checking account mom and dad will be able to deposit money into it if any emergency arises. Another excuse for the card is the students are told that to build your credit score you must have one. The debate, if that is true or not, can discussed another time but for the student today, they can wait for when they graduate to build their credit. There is no need for a credit score while they are in school.

But if you insist on having a credit card you do not have to have it in the students name. The parents credit card company can issue a card for the student to use if necessary. This way you can monitor it's use. If the card must be used, it can only be for emergencies and with the consultation of the parents.

With a little planning and communication the finances of the college journey can be easily planned and carried out. This can give the parents a worry free school year and the student can concentrate on their studies.

For Many Seniors Retirement May Never Come

The Wall Street Journal had a good article about how because of the the economy and small retirement savings, some seniors will never be able to retire. For many, to make ends meet, seniors are postponing their retirement or have no plans to quit working. They see their retirement accounts at a level that is to low to tap. Prices of everything continue to rise. The returns on safe investments at all time lows and prospects for higher rates of interest being low for many years to come.

Many have no choice but to continue working to pay the bills. They never saw this day coming. Most of their money is in their home and selling the home couldn't be done because of the falling prices in home sales.

This months battered market is just a reminder of how much of a hit retirement savings has taken over the last few years. With interest rates almost at zero, Treasurys and certificates of deposit provide almost no income. According to the Federal Reserve, they intend to keep rates at historical lows at least until 2013.

More than three in five U.S. workers in their 50s and 60s plan on working past 65 -- and 47% of that group say they'll do so because they'll need the money or health benefits, according to a 2011 study from the nonprofit Transamerica Center for Retirement Studies.

Is there any way make the situation better?

All you can do is just continue at your current place of work. But now more than ever you must be a better employee. You are competing with younger employees who are making less of a wage than you. They are less experienced than the older worker but when times get tough whose job will the boss cut. Even with greater experience the boss has to make the bottom line work. So you have to be more valuable than ever. You should take on more projects and work. Making yourself a valuable asset of the company will be reason to keep you over another employee.

What if I have to start over?

It's going to be tough to find work for the older worker. You have to prove yourself all over again. Try to stay in the same industry where your skills will shine the most. If you can't stay in the same industry find a place where your skills can also be used affectively. Some employers are known to hire senior citizens. AARP (aarp.org) has a directory. Search for "National Employer Team." Some temporary-employment agencies, including Kelly Services and Adecco, specialize in placing seniors.

Starting your own business.

If you continue to find yourself not earning enough from your job or finding yourself unemployed, another path you could try is starting your own business. It is possible to transfer your present jobs skill set to a self-employment plan. Also to start yourself off in the direction of a completely new trade which you have always wanted to try.

The sad truth is most seniors can't do anything about their situation. They will have to continue struggling and waiting for the federal government to help them out. That help will never come because the cupboards are bare in Washington and it will get worse before it will get better.

The 4 Ways to a Better Emergency Fund

Image by lism. via FlickrThe worst mistake people make in their journey to a better financial future is failing to create a fully funded emergency fund. Many people get into credit card trouble because when that inevitable emergency comes they have to go into debt to take care of the problem. They don't have the money to pay off their debts and the cycle repeats till they are over their heads in major debt. An emergency fund is your insurance to staying out of debt.


If you are a fan of Dave Ramsey you know his first "Baby Step" is to save up a $1,000 emergency fund before ever starting to pay off debt. That emergency fund is the number one way to be prepared for what trouble life hands you.


A rainy day fund or emergency fund is a cushion of money that keeps us afloat when times are tough but actually building one is sometimes harder than paying off debt. To get started building the fund you need a plan.


Create a Plan. The rule of thumb for an emergency fund is it must be at least three months worth of expense. So add up your mortgage or rent, utilities, food, health insurance, etc., multiply it by three, and that's your minimum goal for emergency savings. If you spend $3,000 a month, you will want to have at least $9,000 in your emergency fund. Having more than that depends on if you are self-employed or have any other issues that may affect you losing your job or any health issues. Another way to determine the size of the fund is your "sleep well" ratio. If you don't sleep well at night because your worried about a future layoff or other expense issue, maybe raise the amount of the fund till you can sleep well. It's a common indicator of satisfaction and peace.


Make it Automatic. It's hard to save money every month if you are doing manually. You may forget or be distracted by some work or family problem. It's best to make the process automatic. Set up a payrole deduction at work that adds money to you emergency fund automatically. If not at work set up an automatic transfer of money from your checking account to a savings account. It will all be simple and painless and won't be forgotten.


Where is the Right Place to Put it? It would be a good idea to put the money in a place where it could make some interest. But in today's savings environment a good place is hard to come by. The place has to be somewhere that it is completely safe and guaranteed not to lose principle. Today's low interest environment is bad for now but it may be better in the years to come. Accessibility is key for a good emergency fund.


Don't Touch it. The only real reason to access this money is for a true emergency. A true emergency is any event where you where you could not have predicted it's occurrence. It's not to fix that broken washing machine. You know that baby will someday breakdown, it doesn't qualify. An emergency fund is for a dire event not one that you are temporarily uncomfortable.

Credit card delinquency rates at a record 17 year low

Image via WikipediaCredit card users have gotten serious about their debts, this new found responsibility has driven down the credit card delinquency rate to a 17 year low of 0.6%. This according to credit reporting agency TransUnion.

"National credit card delinquency rates have fallen to levels not seen since 1994 as consumers continue to tighten their spending," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.

              Link to TransUnion's Infographic Of State By State Delinquency

The 0.6% delinquency rate, which reflects borrowers 90 or more days past due is down from 0.74% in the prior quarter and 0.92% a year earlier. TransUnion also reported that even though the average credit card debt per borrower rose 0.42%, it still is down 5.1% as compared to one year ago.

Of all the states, Alaska, North Dakota and Iowa showed the lowest delinquency rates. The highest delinquencies were in Nevada, Georgia and Florida.

Why does Florida rank at the lower end of the scale?

Like Nevada, Florida has more of a problem with it's real estate market. Residents have found themselves more devastated by the real estate bubble bursting. With home values rising the highest and in result falling the farthest, many homeowners find themselves either in foreclosure or without a job. This explains how the average household is juggling between the paying of their mortgage or their credit cards. 

TransUnion's explanation for the falling delinquency rate is people are treating their debts more seriously and paying them off more quickly. Also lenders are more selective to who they give credit to.

Still Florida's stagnant real estate problems are a big drag on the local economy.The construction business is as important to Florida as it's tourist business which is also stumbling. Much of the population counts on these businesses for their livelihood, along with the supporting businesses. These statistics are not going to change until we can get people back to buying homes and spending money.

Florida has grown by a constant influx of people who wish to live in our great climate and vacation here. The climate is not broken just our economy. Florida is like the tail on the dog, get the country back to work and Florida will be where they spend their money.

Citi ThankYou Preferred Card $200 Bonus Review Update

The Citi ThankYou Preferred Card is offering 20,000 bonus points after making $700 in purchases within the first 3 months. The 20,000 bonus points is worth $200 in gift cards at top retailers. The card has no annual fee and it comes with 0% APR for 7 months on purchases and balance transfers.

The 20,000 bonus points, redeemable for $200 gift cards, is what caught my attention. You can easily make $700 in transactions the first month and pocket the $200 or use it for your Christmas shopping. As a bonus you get 7 months of 0% APR on balance transfers or purchases.

You can also earn points when you shop, 1 point for every $1 spent for all your purchases. Don't worry about your points expiring; as long as you make one purchase in a 12 month period they will never expire. Also earn 100 points for signing up for paperless statements and 100 points for enrolling in your online account. There is also a an Anniversary Bonus each year up to 3% which is calculated as a percentage of ThankYou Points earned from purchases during that year.

What's great is you can redeem your ThankYou points for gift cards, music, cash, electronics, etc, through the Citi ThankYou network. For a cash reward of $50 you must have 8,000 points.

There are security benefits such as $0 Fraud Liability Protection on unauthorized purchases, identity theft solutions, personal photo on card option, fraud and security protection services, lost or stolen card reporting, emergency cash or card replacement, various internet account services, and many more.

Without doubt The Citi ThankYou Preferred Card has a great $200 bonus to get you started and 7 months 0% intro APR interest. Citi also gives you retail purchase protection, price protection and extended warranty on the things you purchase. And don't forget no annual fee.

If You Can't Sell That Empty Nest, Repurpose It

Image via WikipediaI think a lot about retirement. I have been working full time in the construction business since I graduated college and I look enthusiastically toward retirement. It's still 10 to 15 years away but it's often on my mind. One part of my retirement plan is to downsize on my home. We have a fairly large home because we were raising six kids, now 3 are in college and 2 are on their own. I like the home, I like the space, and the neighborhood. But eventually we will sell just to save the money. Moving to a condo or an apartment rental isn't for me, I would like a small 3 bedroom 2 bath home, something easy to take care. If I sold my home the equity I have would be enough to pay cash on a smaller home.

I believe most people have the same goals as I do. But in todays housing market prices have dropped so low it may pay to wait. In my area the real estate market is terrible. Not many homes are for sale. When I drive through my neighborhood, I would be lucky to see a hand full of for sale signs, people are just not selling now. My neighbor had a for sale sign out for 3 months and the only offers he got were investors looking to steal the home. It's definitely a bad time to sell.

Eventually, I believe prices of homes will begin to rise. It definitely will take years at the rate we are going. So what do people do till the home makes sense to sell?

Many innovative homeowners are reinventing their homes for comfort and to save money. It's going to be a waiting game so why not be a little more comfortable. When all our kids are gone we will have 3 empty bedrooms to repurpose. I can think of a few ideas to try out.

A Home Office. My home office today is in a room barely bigger than a closet. Taking one of the empty bedrooms redecorating with a coat of paint, a few new shelves, and a nice desk would be perfect for dad. It would be a great place to get some work done. Sorting the mail and managing the home finances, or even a hobby or craft. There could be a nice open work surface, generous storage spaces, comfortable seating and ample lighting. I could eliminate the clutter and chaos of a small shared space and create a dedicated office all in one room.

A Sewing or Hobby Room. If mom likes to sew,having a dedicated sewing room will allow you layout your projects in a comfortable place. You won't have to use the kitchen or dining room table anymore. Also this could be a crafts room for the hobbiest in the family. When the grandkids come over this could be a great room to make crafts in. All the hobby equipment could be in one room with a dedicated closet containing all the paraphernalia that goes with it.

A Great TV Room. This would be great for mom or dad to have a special place only for TV viewing. A rectangular room with a nice 42" LCD panel hanging on one wall with two comfortable recliners on the other. Of course satellite or cable hooked up. Watching a nice movie with some popcorn would make a great evening. It would be easy to decorate with a fresh coat of paint and minimum furniture.

The Ultimate Guest Bedroom. Your guests won't have to sleep on the couch anymore. The decorator of the family would have a field day decorating this room for comfort. Guest would be knocking down the door to stay over night here. This is where you can go over budget to make a show room with a comfortable bed with nice bedspread and tons of pillows. Lots of wall decorations, really go all out. You won't have the kids around to mess it up. Make it a fun room.

With all this re-purposing you may decide to never sell your home, it will be so comfortable. Many people as they get older lose a spouse or special someone. Even in my family I have a couple of Aunts who have decided to share expenses. One aunt sold her home and moved in with the other. They share the home expenses. They both are saving money and the bonus is they have each other for company. There are ways to make the home you are in now work for your situation.

The Simple Light Bulb Just Got A Lot More Complicated

Image via WikipediaWhen I needed a light bulb I would either use a 40 or 60 watt bulb and I was done. But those days are over. Thanks to regulations, taking effect in January, under the Energy Independence and Security Act of 2007, shopping for light bulbs is fast becoming akin to choosing a new car. The upside is the new fangled light bulbs may last longer than you do.

I was worried because I heard some rumors that people were going to stockpile the old incandescent bulbs because they would not be manufactured anymore. But this is just wrong.

Starting in January, any bulb that can generate the amount of light produced by a conventional 100-watt bulb, but do so with roughly 30 percent less energy, will be eligible for the market. The new law is gradual — in 2013, the rule will be extended to 75-watt bulbs, followed, in 2014, by 60- and 40-watt bulbs — but the point is that nothing is outlawed if it meets the new mandated efficiencies.

What’s more, the looming rules have triggered rapid advances in a number of lighting technologies. Halogens, a type of incandescent that delivers light the way Edison intended, with a tungsten filament, are now available in the standard bulb shape. Compact fluorescent lights, or C.F.L.’s, have gotten better at delivering good light quickly, and without the buzzing and flickering for which they were known. And some bulbs with light-emitting diodes, or L.E.D.’s, now cast their light in all directions, not just one.

With all this new technology, how can you know what would be an equivalent to the old fashion 60 watt bulb?

Home Depot and Lowe’s are working to simplify shopping, with better merchandising and displays with samples of the forthcoming bulbs. Sylvania, Philips and General Electric, are already putting “lighting facts” labels on at least a few bulbs, even though new labeling requirements do not take effect until January.

The new packaging will describe the new bulbs by their lumens, the measure of light produced. But don't be discouraged, the package will also describe the bulb in "watt equivalents".

Does this mean I have to go out and buy all new bulbs? 

No but it does mean you will have to do a little more shopping and comparing to get what you want. Remember these new bulbs will be energy savers and have a working life, longer than maybe the fixture they are in.

So don't panic, like every government program to help us, this one will also take years to phase in. Here are a few things to keep in mind when you finally go bulb shopping.

• When you feel like you want to stick a toe into the waters of these new bulbs, just wade in. If you don't want them you still will be able to buy the old reliable one for many years to come. As we wait for the new bulbs to pop up in stores you will see many commercials and magazine articles touting their effectiveness. You will be shown what types of bulbs work best for what lamps you have in your home. So only replace bulbs as needed and when you understand what you are purchasing.
• At first the new bulbs will be sold only by your usual bulb manufactures like GE, Sylvania, and others. Stick with these because we will be seeing cheap overseas knockoffs coming soon.
• Consult sources like energystar.gov, energysavers.govand homedepot.com, which offers a video tutorial on the new law.
• Try the new bulbs in different lamps and fixtures in your home to see which work best in that location.
• Remember these new bulbs are going to save you money in the long run.

I remember when  the compact florescent bulbs came out years ago. They were very expensive and didn't shine a very attractive light. But the price eventually came down and the quality came up. This will also happen with the new lights coming. In the long run, we will have better and longer lasting bulbs

Has The National Debt Killed The American Dream For The Next Generation?

The recent downgrading of the nations credit worthiness, by the credit rating agency Standard & Poors, has many more people thinking about the federal debt. It used to be something many of us didn't understand and didn't think we needed to be aware of. We worried that it might affect us with higher interest rates in the near term, though that hasn't happen yet. But today the threat has grown large enough that the future generations are going to have to pay for this debacle.

It reminds me of how I used to be in credit card debt. I went along casually spending and buying things over the years. Always thinking just a few more payments it would be paid off. But there always was that emergency like the car needing tires or repair work. The kids needing something. The washer or dryer breaking down. It was always something. The years passed and the payments on the credit cards were so much I couldn't pay my regular bills. It was a scary time with 3 kids, a wife, and a big mortgage. I was worried my kids would have to do with less because of my mess.

This is how I relate to the current debt crisis. To much free spending, all being borrowed and not seeing ahead to the future. Like me, the government has reached it's tipping point where something has to be done. But the government's problems are much larger and the family affected, is not three kids like I had, but 250 million people.

The solution to this incredible problem is to cutback spending and pay down debt. It's simplistic and many people, smarter than me claim that it's OK for the government to have debt. But wouldn't we be better off if the Federal budget was smaller, so Washington needed less of our money to function. The other side of the coin is to raise taxes. It should be on the table if necessary but lets try cutting back spending and see what the results are.

It hasn't occurred yet, but all this money printing and borrowing economists claim, is inflationary. I agree with that because I have been to the supermarket and the gas station, prices are rising. This is one of my concerns for the future generations. Basic costs of food, fuel and goods are rising. The electric bill, water bill, and other necessities are increasing. All these basic needs are competing for the dollars from your paycheck.

What other problems will arise from the debt crisis? Will interest rates go up so the interest for future borrowing will be even costlier. State and local governments have debts to pay also. If their interest rates rise, won't we have to pay more taxes. Between Federal and State governments, taxes are definitely going to go up, taking more from peoples budgets.

We can be sure that the governments free spending will be paid for by future generations. There will be higher taxes eventually taking more money from their families budget. It seems to me we are moving towards a time where the next generation will be burdened with the problems of the current generation. If you factor in the future problems with Social Security and state pensions, the problems are much worse. I am afraid we have dug a large hole that our children and their children will have to clean up.

I hope the days of this massive borrowing is over but I am afraid it may not be. I read Paul Krugman's column titled "The Hijacked Crisis" in today's New York Times Online. The article was a typical Paul Krugman column, but something he wrote at the end worried me and I wondered if this comment, was the general theory of the current administration in Washington. Here is an excerpt from his August 12 column:

"What would a real response to our problems involve? First of all, it would involve more, not less, government spending for the time being — with mass unemployment and incredibly low borrowing costs, we should be rebuilding our schools, our roads, our water systems and more. It would involve aggressive moves to reduce household debt via mortgage forgiveness and refinancing. And it would involve an all-out effort by the Federal Reserve to get the economy moving, with the deliberate goal of generating higher inflation to help alleviate debt problems."

        Paul Krugman, New York Times, "The Hijacked Crisis"

Paul Krugman has a PH.d in Economics, he should be the one knowledgeable in getting the country back on track. It seems to make sense, but to do it would mean another larger stimulus plan with more debt. This kind of thinking just seems wrong.

All these decisions of what to do about the economy must be put in perspective of how it will affect future generations and not just today.

What are your thoughts?

Cable Company Comcast to Offer Discounted Internet Service

Image via WikipediaCable and Internet company Comcast is offering a discounted Internet service package to low income families. The new Internet service will be called Internet Essentials. It will provide low cost Internet access and also offer a netbook computer at a discounted price. To be eligible for the new service your child must also be eligible for the National School Lunch Program.

Internet service provided through Internet Essentials features download speeds of up to 1.5 Mbps and upload speeds of up to 384 Kbps. The plan costs $9.95 per month (plus tax) and is available for families that:

• Are located where Comcast offers Internet service (currently in 39 states)
• Have at least one child receiving free school lunches through the National School Lunch Program
• Have not subscribed to Comcast Internet service within the last 90 days
• Do not have an overdue Comcast bill or unreturned equipment

After you are enrolled you will have the opportunity to purchase a netbook style laptop computer for $149.99 plus tax. The computer comes with wired and wireless ability and the Windows 7 operating system and Internet browser software.

The program will continue for 3 years and is available now.

How to apply:

• Call 1-855-8-INTERNET (1-855-846-8376) to request an application
• Complete and return it, along with lunch program documents from your child's school
• You will notified by mail about the status of your application. Allow 7-10 days for a response
• Once you are approved, you will be mailed a welcome package with everything you need to set up your Internet service and receive free Internet training. If you choose to purchase a low-cost computer, your welcome package will provide details.

You can access the website at http://www.internetessentials.com/

Summer Camp Fees Can Qualify for a Tax Credit

Image via WikipediaSummer time is coming to an end and it's time to get the kids ready for the new school year. But before you put away the summer fun and start to get ready for the new school year, get out those receipts for the summer camp you sent the kids to. If you have enrolled your kids in summer camp and they attended while you were at work or while you were looking for work, you are eligible for a tax credit.

According to the IRS website, at IRS.gov, under the existing rules up to 35% of qualifying camp expenses is allowed to be claimed as a federal child care tax credit for children under 13.

The IRS wants the public to know that a summer day camp does qualify for a tax credit. It's looked at as the same as a day care center or even hiring a baby sitter does just like during the school year. The federal child and dependent care tax credit allows a 35% credit. For incomes above $43,000, it's 20 percent. Qualifying expenses for the tax credit are limited to $3,000 per year for one child or $6,000 for two or more. So if you're eligible for the maximum 35 percent with one child, you could claim a credit of $1,050.

Also note that overnight camps do not qualify toward the tax credit. Only expenses that occur when the parent is at work or looking for work.

6 Money Rules For A Successful Retirement

Retirement is a fact of life, an event that someday will happen to all of us. We budget and plan for other situations like college costs, home purchases and life events but often we put off preparing for the longest lasting time of our lives. 

If I told you that you would be unemployed for more than 25 years of your life, wouldn't you prepare for such an event. Yes you would, but being it's so far away when we are younger we tend to put it off. I have listed 6 money rules that must be considered to have a great retirement.

Save Early For Retirement. Waiting to save for retirement is the biggest mistake you will ever make. When you get that first job always be putting money away for the future. Paying off debt is a a top priority, but don't let it get in the way of your long term goals. If your employer offers a 401(k) with matching, save at least enough to get the matching. It's free money and you can't get a sweeter deal than that. 

Your ideal goal is to save 15 % of your income. If you have maxed out the 401(k) then start a Roth Ira. Start small with a 3% contribution and work your way up slowly to 10%. As you eliminate debt bump up your savings.

Cut your debt, but not your credit cards. Cutting your debt to zero is a great idea. But don't cancel your credit cards, you could take a big hit on your FICO score. You still need to maintain a good credit score even in retirement. Also the cards are a safety net of last resort. Sure having a large emergency fund is important, but your credit cards are a second line of defense in an emergency. But never to be used unless for dire emergency.

Reasonable housing, not Beverly Hills mansion. Let's face it your home is not an investment and the less you put into it the more you will have for investing and retirement. The typical rule of thumb used to be, you could afford a home 3 times you annual salary. But that rule went by the wayside,  your house payment including principle, interest, insurance, and taxes should be no more than 28% of your gross income. This also goes long with a 20% down payment. 

You will find many mortgage brokers allowing you to borrow a lot more but you have to be smart and stay away from a too large home. You will end up putting too much money into your payment and don't forget all the never ending maintenance of your home. After making the mistake of not saving for retirement, buying a to expensive home will crash your financial plan leaving your retirement sorely lacking.

An emergency fund built for your individual situation. It was always called a savings account but it's better known as your emergency fund. We all can agree an emergency fund is a necessity, but how large a fund is the the question. If you work on a commission basis, have irregular income, or think your job is going to be eliminated you need a larger fund. It should be at least 6 months of expenses. If your job is stable then you only need 3 to 6 months of expenses. The goal is to keep enough cash available to see you through the emergency with out having to cash in investments or use credit cards. 

Renting is sometimes better than buying. In a environment of rising home prices, buying a house is better. If prices are falling or flat, like they are today, then only buy if you can get the house for a steal. Renting may be an option if you don't want to deal with the extra costs of home ownership or maybe you are tired of the constant work of owning a home. 

Renting does have it's advantages in lower costs and hassle. Find a renting vs. buying calculator and do the math before doing either. But home ownership is the American dream, but with the extra costs and hassle it does come at a price.

Quit your mortgage when you quit your job to retire. It makes sense to lower costs in retirement and finishing your mortgage when you retire would be the right thing to do. Many people argue that having all your money tied up in a paid for house is the wrong thing to do. They think you need to have your money working for you in investments. 

But for many, not having a mortgage gives a sense of peace that your home will never be lost through foreclosure. But mathematically, we all agree that reducing expenses in retirement is the safest thing to do.

Making good retirement decisions means following a plan. The plan must be based on a good financial foundation. 

It's Tax Free Weekend, Time To Get Ready For School

Image via WikipediaIn 8 states this weekend you will not have to pay sales tax on back to school items. During the month of August eight other states will also have tax free weekends. During this tax free holiday the items allowed to be tax free are clothes, school supplies, books, and computers. Each state has certain limits to the amount of the purchase and which items are allowed to be tax free in the particular state.

Originally the weekends were meant to get junior outfitted with new clothes and shoes for returning to school but the items covered by the tax free rules have expanded. Now you can purchase computers, school supplies, and even appliances. The amount of the items can go as high as $2,500 as in Louisiana.


The Louisiana Sales Tax Holiday provides an exemption from state sales tax on the first $2,500 of the purchase price of most individual items of tangible personal property for non-business use. The state sales tax is payable on the portion of the purchase price of any individual item in excess of $2,500.This Means you can buy anything except vehicles that require a tag and title.

Missouri allows you to buy software up to $350 without paying tax and computers up to $3,500 without paying sales tax.

Check out this chart for purchasing rules and links to specific states information.

State	Items and Maximum Cost (Per Item)	2011 Dates	More Information
Alabama	clothing – $100 computers – $750 school supplies – $50 books – $30	August 5-7	revenue.alabama.gov
Arkansas	clothing and footwear – $100 Clothing accessories – $50 school supplies, art supplies, school instructional material	August 6-7	www.dfa.arkansas.gov
Connecticut	clothing and footwear – $300	August 21-27	www.ct.gov
Florida	school supplies – $15 clothing – $75	August 12-14	dor.myflorida.com
Iowa	clothing – $100	August 5-6	www.iowaccess.org
Louisiana	all TPP – $2,500 hurricane preparedness items – $1,500	August 5-6	revenue.louisiana.gov
Maryland	clothing and footwear – $100	August 14-20	www.marylandtaxes.com
Massachusetts	TVs, clothing, personal items – $2,500	August 13-14	www.mass.gov
Missouri	clothing – $100 computers – $3,500 school supplies – $50	August 5-7	dor.mo.gov
New Mexico	clothing – $100 computers – $1,000 school supplies – $15	August 5-7	www.tax.newmexico.gov
North Carolina	clothing – $100 school supples – $100 instructional material – $300 computers – $3,500 other comp. – $250 sports equip – $50	August 5-7	www.dornc.com
Oklahoma	clothing – $100	August 5-7	www.tax.ok.gov
South Carolina	clothing school supplies computers other (Check SC site for explicit items’ exemptions)	August 5-7	www.sctax.org
Tennessee	clothing – $100 school supplies – $100 computers – $1,500	August 5-7	tn.gov
Texas	clothing, backpacks, and school supplies – $100	August 19-21	www.window.state.tx.us
Virginia	clothing – $100 school supplies – $20	August 5-7	www.tax.virginia.gov