What's $40 Dollars To You?

As usual our employees in Washington D.C. are making a mess of everything. They can't even get it together to give us a meaningless tax break. The bottom line of this whole mess is that the average family will lose their $1000 tax cut if the Congress doesn't act by the end of the year. Why is it they always wait till the last minute to take care of these things? It's like my kid waiting till the last minute to do his homework.

The $1000 tax break comes down to $40 every two weeks. Is that such a big amount to get so worked up for? Well, the White House seems to think it is a big deal and they have set up a web site for you to chime in on what you think: www.whitehouse.gov/40dollars

It seems $40 every two weeks can amount to something over time. In 3 years it turns into $3,531. In 5 years it grows to $6,403. In ten years it grows to $15,951.

It seems $40 is a significant amount. Such a small amount invested every two weeks can have an interesting effect on your retirement needs.

Related Post: Investing 101: Index Funds

Real Resolutions For 2012

Image by ElvertBarnes via FlickrWith the Christmas season nearly over it's time to make some real resolutions for the coming year. I don't mean the typical resolutions to lose weight and eat better. Those are admirable things to aim for but usually fall along the wayside by the end of January. I want you to make some important resolutions that will put some money in your pocket and make life better.

Save more in 2012.

If your not saving enough or at all, it's time to do a better job. Next year the contribution limit for 401(k)s, 403(b)s, and the federal government's Thrift Savings Plan will increase by $500 in 2012, to $17,000. Here Uncle Sam is is allowing you to save $42 more per month in your retirement account. Take advantage of this and adjust you payroll deduction when you go back to work in 2012.

Low-income savers whose modified adjusted gross incomes are less than $28,750 for singles, $43,125 for heads of household, and $57,500 for married couples may also be able to claim the Saver's Credit, which is worth up to $1,000 for singles and $2,000 for couples.

If your putting money into a Roth Ira be sure you are putting in the max. Any other money you can save, outside of retirement accounts, can be put into a nice emergency fund.

Related post: Savings Plan Pays Off

Emergency Fund.

Is your emergency fund completed yet? If not why not address it this coming year. The key to staying out of debt is to have that rainy day fund ready. It's a vital part of a financial plan. It should be large enough to cover 3 to 6 months of your living expenses.

Related post: The 4 Ways to a Better Emergency Fund

Reduce Expenses.

It's a good time to go over your monthly expenses. Maybe you have some monthly subscriptions you are paying for that you no longer use. Cancel them.

Reduce your expenses of your cable bill, phone bill, or cell phone plan. Call your providers and see if there are any cheaper plans available. Every time I call my cell phone provider I learn of a reduced plan they are offering. They won't be calling you so it's your job to be proactive.

Are there any ways to reduce your utility cost? Find ways to use less water and electric. There are many new devices that can help you cut back without impacting your lifestyle.
Related post:  How To: Create A Budget

Insurance Bills.

Insurance companies are still competitive in there rates. I recently moved my car insurance to a new provider. I not only saving  $50 per month, I have the rate locked in for the next year. Even your home insurance can be reduced by evaluating the bill. Call your agent and see if you have coverage you may not need. I recently reduced my coverage on a detached storage shed on my property. By not insuring the shed I am reducing my costs by $40 per month.

Related post:  Car Insurance Discounts Are Waiting For You

Make Sure Your Will Is Up to Date.

If you have a will make sure it is up to date. If not then make any corrections needed. If you don't even have a will make it a priority to have it done in January. The best gift you can give your family after you die is an orderly transfer of your affairs.

Have Adequate Life Insurance.

Not everyone needs life insurance. The only reason to have life insurance is to fill a financial need if you die. It may be taking care of your young children, college costs, or paying of a mortgage among other things. Check to see if the benefit is an amount adequate to fill your purpose. 

Related post:  How Much Life Insurance Do I Need?

Make the coming year better than ever by getting you finances in order. Slowly the economy is getting better. Learn the lessons it has taught us and carry them on into 2012.

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Audible.com Giving Away A Free Book For The Holiday Season

Audible.com is the website that provides quality and timely audio books for you to listen to on your computer or portable device. I have been using Audible .com for the last couple of months and really like being able to enjoy many books that I really don't have the time to sit and read. Mostly while in the car or at work I have time to listen to a book per week. 

For the holidays Audible.com is giving away the audio book, "The Adventures of Sherlock Holmes" by Sir Arthur Conan Doyle, to new and existing members till Dec 23 at 11:59PM EST. Existing members just have to go to the website and download it. If you are new to Audible.com, now is the best time to join.

Member Benefits:

· 1 audiobook per month
· Members save 30% on additional purchases
· Free previews, chapters and excerpts
· Free digital subscription to the New York Times or Wall Street Journal
· Invitations to exclusive member-only special sales and promotions
· Free daily audio newspaper subscriptions
· Now Over 100,000 titles to choose from
· Compatible with iPod, iPhone, BlackBerry and over 500 mp3 devices


When you sign up for membership you receive your first audio book free during the 14 day trial period. If you decide to not join you still get to keep the free audio book of your choice. If you join before Dec 23 deadline you get to also download the free Sherlock Holmes book.

Try Audible Now and Get A FREE Audiobook!


Further Reading : 5 Reasons Reading Books Is Important To Your Well Being

Who Can See What Is In My Credit Report?

Image via WikipediaCredit reports contain a large amount of information about consumers. In them you will find Social Security numbers, date of birth, current and previous addresses, telephone number (including unlisted numbers), credit payment status, employment, even legal information.

Credit reporting agencies are in the business of collecting and sorting your financial information for the sole purpose of selling the information to companies that need to know your credit worthiness. Many types of companies and entities can have access to your information just for the asking. Anyone with a legitimate business need can seek access to your credit report. They include: 

• Those considering granting you credit.
• Landlords.
• Insurance companies.
• Employers and potential employers (but only with your consent).
• Companies with which you have a credit account for account monitoring purposes.
• Those considering your application for a government license or benefit if the agency is required to consider your financial status.
• A state or local child support enforcement agency.
• Any government agency (limited usually to your name, address, former addresses, current and former employers).

Usually a boss or future boss needs your permission to view it. Many potential creditors ask the permission of the client. But it is not required when companies wish to offer pre-approved credit.

Most people don't even know that they can see their own credit reports. But it is your right under state and federal law. It's always a good idea to check out your own credit report on a regular basis. Every year is an adequate time frame. You are able to view your report once a year from each credit reporting agency. All you have to do is ask. And it's free.

Your Rights under Law:

• Obtain a copy of your credit report. You now have a right to a free copy once a year.
• Know who has received a copy of your report.
• Dispute inaccurate information.
• Even if negative information is included, to explain the circumstances.
• "Opt-out" to prevent credit bureaus from using your information for marketing.
• Complain to the appropriate government agency or file a lawsuit.

To order your free reports, you can call the official toll-free number, (877) 322-8228. You can also go online to www.annualcreditreport.com where you can order your reports directly. Or you can print out the form and mail your request at, www.annualcreditreport.com/cra/requestformfinal.pdf, until sometime in 2012 when CoreLogic reports are available online. Free reports may be ordered by calling 877-532-8778.

You can also contact the 3 credit reporting agencies directly.

Equifax
(800) 685-1111
Web, www.equifax.com
Experian
(888) EXPERIAN
(888-397-3742)
Web, www.experian.com
Trans Union
(800) 888-4213
Web, www.transunion.com

Six Tax Breaks Expiring At The End of 2011

Image by 401K via FlickrBefore you know it the holidays will be over and tax time will be here. As this year comes to a close several tax breaks will be ending for good. Before 2012 arrives be sure to take advantage of them.

Listed below are the six tax breaks about to expire unless Congress extends them:

1. Expenses For Higher Education.

The deduction of up to $4,000 for qualified higher education expenses won't be available after 2011. It probably is smart to consider prepaying eligible expenses for 2012. The deduction applies to tuition and fees paid in connection with enrollment at an institution of higher education during 2011 or the first three months of 2012. The maximum deduction is available to taxpayers with adjusted gross incomes of up to $65,000 for singles and $130,000 for joint filers. A deduction of $2,000 is allowed for singles with adjusted gross incomes of up to $80,000, or joint filers with adjusted gross incomes up to $160,000.

2. Adoption Tax Credit.

The Adoption Credit and Adoption Assistance Program lets adoptive parents claim a credit against their federal tax of up to $13,360 for "qualified adoption expenses" for each adopted child. Though new access to the credit expires when the program ends on Jan. 1, the rules allowed the credit to be carried forward over five years.

3. Sales Tax.

If you don't pay state and local income taxes -- a common situation for retired public employees or those living in 'no-income-tax' states like Florida -- you have had the choice of using the optional sales tax deduction to cut your federal income tax. After 2011, that option goes away. So if you're planning to buy big-ticket items like a new car in the near future, you might want to push them up into 2011 to get those last deductions.

4. Mortgage Insurance Premiums.

As of 2012, you won't even be able to take the mortgage insurance premium deduction. 2011 is the last time homeowners with joint adjusted gross incomes of less than $109,000 will be able to deduct the cost of mortgage insurance on a first or second home.

5. Teachers' Classroom Materials.

For years, K-12 teachers, instructors, counselors, principals or aides who worked in a school for at least 900 hours during a school year could claim an "above the line" deduction for up to $250 of expenses incurred for books, supplies, computer equipment or supplementary materials used in the classroom. Shop now, teachers: Starting next year, that deduction will disappear like kids vanishing from the classroom when the bell rings.

6. Energy-Efficient Home Upgrades.

Making energy-saving improvements to your home not only cuts down on heating and cooling costs, it also earns you a tax credit. For example, if you add extra insulation in your attic, replace drafty old windows with modern thermal-pane models, or install an energy-efficient heater or air conditioner, you're eligible for a tax credit of 10% of the cost, up to $500. You don't have to attach the manufacturer's certification that the property meets the requirements for the credit to your tax return, but you must maintain records that establish your entitlement. However, if you've claimed this credit for upgrades in past years, you can't do it again: It's a one-time deal.

These tax breaks should all be considered with the help of a knowledgeable tax preparer.

PerkStreet Offering $25 Bonus For New Checking Accounts

If you are looking for a new place to do your banking and you need a little incentive, PerkStreet Bank is offering a $25 bonus for new PerkStreet customers. When you sign up for a new account by December 25th and make 3 purchases with your new debit card within 30 days you will receive a $25 bonus in your account.

As an added incentive for the first 3 months you will earn 2% cash back on all non-pin purchases. After 3 months you will earn 1-2% cash back depending on your account balance.

From the PerkStreet website 2 actual customer's comments:

“It's a great way to "budget" for Christmas gifts and not be surprised come December when it's time to shop for gifts. It will be so fun to cash out our perks and go shopping - guilt-free!” – Jennifer, Nebraska 

“It's been an amazing way to lower the cost of Christmas presents for me and it's been a lot of fun because I was able to buy several presents early with the money. I now am entering December nearly worry-free about Christmas.” Melanie, Knoxville, TN

Compare PerkStreet with other banks







To receive your $25 cash back bonus:

1. Apply for your account online by 11:59PM EST, December 25, 2011 and fund the account with $25 or more.
2. Use your card to make 3 purchases within 30 days of opening your account.

PerkStreet will credit $25 to your Perks Account within 10 business days of your third purchase. This great offer expires at 11:59 PM EST, December 25th, 2011. PerkStreet may modify or cancel this offer at any time.

Don't pass up this great opportunity. Sign up today and get your $25 bonus.

Is Consumer Reports Still Relevent in 2011?

Image via WikipediaConsumer Reports was born 75 years ago in 1936 and it's still going strong today. In the age of the Internet where you can look up information and reviews for anything from TV's to washing machines to camera's for free, millions go to Consumer Reports for the final word on consumer goods.

The Consumer Reports website started in 1997 has grown to over 3.3 million paying subscribers in 2011. It has a larger subscriber base than the largest national newspapers. It's magazine subscribers have stayed steady and it's digital subscribers have grown at a rapid pace.

Subscribers who sign up for access to the Web site pay $26 for a year or $5.95 monthly. A smartphone app is available, and this month an iPad version was introduced.

Consumer Reports still has the most thorough testing regimen than any other testing site. No matter what the item being tested, you can be sure it's compared and test along with 10 to 15 other of it's competitors to see which one is the best with grading along with other qualities of the product. Consumer Reports has never taken advertisers or allowed it's test results to be used by manufactures who would like to to use beneficial results in advertising. The testing and it's results are only to be used by the consumers.

Recently, Consumer Reports has added surveys of its subscribers, asking them to report their experiences with products being tested. This makes the reviews much more useful to the consumer.

The best way to use the Consumers Report website.

When you need to search for information for a purchase it's usually one that comes with a hefty price tag. It may be a car, refrigerator or TV. When the item carries a large price tag it's best to do some research on the products and try to find one with the best ratings. This is where Consumer Reports shines. You can even sign up for a subscription, one month at a time. For $5.95, you can do all the research you need to do and you have 30 days to complete it. It's not a high price to pay for research for an expensive purchase and it's well worth it.

I have registered for the one month fee and gone online to check out ratings for a washer I needed to buy. I got my information and used the website for the month and then I was done with it. Only $5.95 and it helped make sure I was purchasing a washer that was well built and reliable.

Is Consumers Reports Relevant today?
For me it was convenient, relevent and an easy way to use Consumers Reports great data base of testing research. With over 3000 items tested you will definitely be able to find the item you need to know about.

5 Christmas Gifts To Never Give A Baby Boomer

Image via WikipediaThe holidays are only a few weeks away and figuring out what to get for your loved ones is never an easy job. Shopping for the right gift for that fussy or special person gets to be a difficult task. Baby Boomers can sometimes be the most difficult people to shop for because they are well past the gadget gift phase and really don't need anything.

Doing all you can to figure out that perfect gift, will make this season all the more special for someone you care about. Most people usually don't even remember what they got last Christmas but they never forget when they receive a really dumb present. With that in mind, the Huffington Post spotlights 5 types of gifts to not buy for your baby boomer friends.

The writer notes 5 types of gifts that would make your average baby boomer cringe. When your making your list for Christmas gifts be sure to check it twice and compare it to "Holiday Gifts Post50s Don't Want" at the Huffington Post.


Holiday Gifts Post50s Don't Want [Huffington Post].

Contingencies for After 50

So you're in your 50's and are eagerly awaiting retirement. You've worked hard your whole life, saved where possible, shored up money in a retirement plan and various safe investments, secured low interest home loans, and financed your kids' college educations. You're good to go, right? Not necessarily. Take a step back and look at the economic landscape right now. Hundreds of thousands of people your age thought they were safe and discovered that weakened financial institutions everywhere are forcing American to reappraise their money. Here are a few contingencies that may force you to reassess your retirement years: 

Your kids may not be able to repay their student loans. It's a tough environment for graduates and unemployment rates are high. With the combination of rent, the cost of living, and car payments, your kid may not be able to take on student loans immediately, which means you will. Student loan companies are not always quick to forebear, so you will need to make sure you can make those monthly payments on your child's behalf.

You may have to borrow from your 401(k) or IRA. Because of the previous factor and the ones to come, you may find yourself needing to borrow from your retirement plan. Just remember that the borrowed money will not be invested and will be taxed. This should be avoided if at all possible.

You may not be able to sell your home for the price you were expecting. The housing market plummeted and is not expected to recover anytime soon, at least not to the pre-recession bubble. Whatever you were expecting for your house could easily be cut in half by the time you make the sell. Of course, the flip side to this is that you'll probably be able to get a great deal on whatever new home you're looking to buy.

It's no stock market for old men. Sorry to be frank, but the current stock market is as volatile as it has ever been and investing should not be entered into lightly. Hopefully you didn't lose too much in the crash of a few years ago but that money's not coming back. Your retirement money is probably safer in bonds, or back into your IRA or 401k.

This post is not meant to frighten you but it is meant to make you aware of some of the contingencies that you should prepare for in your 50's. As you move towards retirement, consider the financial obligations of your children, your home, your loans, and your investments.

This guest post is by financial writer Alex Summers.

Money Matters for Parents of Teenagers

Many parents are responding to the financial crisis by teaching their kids more about money. They are making sure their children are learning the lessons of today's financial difficulties. 

Most families have made it a priority to teach their children the proper way to handle money. Showing them how to use a checking and savings account was always a normal step in their development. But today it is regarded as a high priority in preparing our kids for the future.

In a recent study, the findings revealed, 58% of parents in the United States report talking more about money with their children in the past 12 months than ever before, and that 92% of parents say they feel personal finance and financial education should be taught as part of the school curriculum. The studies results were surprisingly one sided in the extent of the parents emphasis that their children were being educated in the schools curriculum on matters of money and money management.

Parents wanted their children to be taught the basics of money management and they were willing to work with schools by reinforcing lessons at home. The three elements in money management that they wanted especially taught were those listed here:

1. An allowance or earning money from chores.
This is where parents are the most confused on what to do. All money situations are opportunities to teach. Remember that your trying to solve a problem now but be careful you are not teaching them a bad habit that will hurt them when they are adults. Allowances are the old fashion way we all grew up with. Allowances were akin to charity, their was no work performed. But in my family, there were no allowances. It was Work = Money, when you performed a task around the house you received compensation. It taught that money did not come until work took place first. It was a good lesson that stood with me even till today when I use the same idea on my children.

2. Planning where money is going to be spent.
Yes, even children must learn how to budget their money. When they blow all their money as soon as they get it in their little hands, history will repeat itself if the parents don't step in and teach how to make a spending plan. "Spending plan" is a nicer way to say budget. A spending plan gives a feeling of being in charge of your money while budgeting sounds like work. How you explain an idea is as important as what the idea is.

This spending plan will also encompass lessons that children need to learn how to determine a want from a need. Also the postponement of pleasure now, for a greater benefit later. If you can get your teenager to learn that, you are making a major accomplishment.

3. A plan to save money.
It's hard for even adults to know the right amount to save depending on personal circumstances. But with children it is easy. They can just set up a percentage of 25 or 33 percent of their money into a savings fund. It can be in a bank savings account or in a sealed jar where they can't get at it. When they see their money growing it will make them feel a sense of accomplishment and encourage them to do more. This lesson is one that hopefully follows them into adulthood.

All parents hope to that their children can learn these lessons. These lessons have always been the foundation of money management. With lessons and curriculum at school, reinforced with real life lessons at home, our children will have a firm foundation to stand on in adulthood.

What You Don’t Know About Debt Will Cost You

Responsible consumers faithfully make their debt payments every month, likely without questioning the real impact of those payments. Here’s a fact you may not know: if you’re only paying the amount your creditor or lender recommends you pay, then you may be paying for a very, very long time.

You don’t have to hire a professional to help you assess your debt and you don’t have to know dozens of complicated math formulas. You can evaluate your debt on your own, for free, using CNN Money’s Debt Reduction Calculator. All you have to do is enter your debt information, select a repayment plan, and click the calculate button. What you get is very valuable – and possibly shocking – information about paying off your debt.

Minimum Payment Payoff Plan

If you’re currently paying the minimum payments on your debts, this calculator will be extremely valuable. To get started, you need to know each of your debts, the outstanding balance, the interest rate, and minimum payments for each of debts. In step two, choose a debt reduction plan which, in this case, is the minimum payment plan. Once you click calculate, you’ll be shown the amount of time it will take to pay off your debt and the amount of interest you’ll pay when you make minimum payments. Very often, paying the minimum will cause people to pay up to 80% of the amount of their debt in interest!

The Impact of Paying More

If you want to get out of debt faster and save thousands of dollars on interest payments, you’ll have to spend more money per month paying off your debt. Whether you can pay a little or a lot, anything you pay above the minimum will help you make tremendous progress with your debt repayment.

Use the calculator’s Fixed Payment plan to see the result of paying $25 or $100 above the minimum payment. This may seem like a small addition but it will save thousands on a $10,000 loan. Or, if you can afford to put more toward your debt, plug that number in the calculator and see what you will get! Many people are surprised, and perhaps relieved, to see the difference that can be made with just a little extra added to their payment each month.

Get Out of Debt on Your Time

The third option with CNN Money’s calculator is the Debt-free Deadline. With this option, you can choose the amount of time in which you want to be out of debt and the calculator tells you the monthly payment that you’ll have to make to get out of debt by that time. So, for example, if you’re turning age 55 in three years and want to be debt-free by that time, the calculator will help you figure out what it will cost per month to make that happen. (Note that your credit card statements will include the monthly payment required to pay off your balance in 36 months.)

Evaluating your debt is an important financial step, especially as you approach retirement. If you wait too long, it may be much more difficult to repay your debt. While it may be painful to face the truth about your debt, getting the courage sooner rather than later is the key to securing your financial future.

This guest post was written by Eliza Collins, a seasoned personal finance writer with professional experience in the debt relief industry. Eliza writes at the debt settlement blog where you can read more about hands-on debt relief strategies, debt relief services or credit repair.

A Better Way To Sell Mobile Phones

Image by sunface13 via FlickrAfter a while the old electronic gadgets begin to fill up the drawers in your home. What do you do throw them out? That wouldn't be right because a better alternative would be to recycle or better yet try to sell them. You could use Ebay, but that's just a hassle. Why not just sell it to one of the online companies that will take your old phone and pay you cash for it.

There are so many sites that buy back your old phones. So which one will give you the largest amount for your old phone? A website called SellMyMobile.com, a popular U.K. website that compares the top phone buyback companies and finds you the ones with the top prices. You get a selection of the best buyback companies and the amount of money they will pay you for your phone, when you want to sell mobile

You can compare all the leading mobile phone buyers in the U.K. on Sellmymobile.com, like, Cashinmyfone, Earth Mobile, Envirofone, Fone Hub, Fone Bank, Greentec, Love 2 Recycle, Mazuma Mobile, Mobile Cash Monster, Mirror Go Green, Mobile Phone Xchange, Money 4 My Mobile, Money For Your Phone, Money4urMobile, Mopay, 02 Recycle, PhoneRecycleBank, RPC Recycle, Reycle my mobi, Royal Mail Simply Drop, Sell Old Mobile, Sell Old Phone, Sell-My-Phone, Simply Recycle and Used Fone.

When you go to SellMyMobile.com you see the homepage is organized and you notice an easy way to enter the info about your phone you want to sell. With just a few simple clicks you get to see the price a company will pay for your phone. All price are kept up to date on a daily basis, you always have the freshest info of your phones value.

After you see the price offered you just click on the form to add your name and address to the page. The company will then send you a postage paid envelope so you can send your phone back to them. 

For a quick and easy way to sell your old phone go to SellMyMobile.com, the No. 1 mobile phone recycling site.

This is a sponsored post and reflects the opinion of this website.

Why The Kindle Fire Is Better Than The iPad

Since the introduction of the iPad no other pad device has come close to being able to make a dent in the pad market. Hands down the Apple iPad is the best pad device around, but its $500 price tag has kept many customers away, including me. Now the Amazon Kindle Fire is making a stir with its $199 price tag. I purchased my own Kindle Fire and this review is my opinion of its usefulness.

Around the Internet the reaction to the Kindle Fire is luke warm to say the least. When you only have the iPad to compare it to it will not really impress anyone. It isn't supposed to be a iPad competitor but it will take potential sales away from it. The Kindle Fire is a well made, well thought out device that will perform all the functions the average customer needs to do.

What can the Kindle Fire Do?

A Content Device.
Through the Amazon music and video store you can purchase content and consume it on the Fire. Amazon has a music store and video store much like iTunes. You can store your media on the device or in the cloud to stream at anytime. As a bonus, you get a free trial to Amazon Prime with your Kindle Fire. That means you get free two-day shipping when you buy stuff from Amazon, plus free streaming access to thousands of movies and TV shows. If you decide to keep Amazon Prime, it'll cost you $79 per year. Not a bad deal considering there are 1000's of TV shows and movies to watch. If you are using Netflix now you don't need both, cancel the Netflix and use Amazon's streaming movies and save money too.

If you have an Android phone you are already familiar with the interface, if not you will still find it very easy to navigate. The video and audio plays smoothly. The built in speakers are small, but adequate enough for individual use. A headphone jack is available for private listening.


Apps are Plentiful.
Again like your Android phone, apps are easy to load and use. The Android App Store is not included on the device but Amazon's App Store is and it has many apps for you to download and use. Some free, some at a low cost. There are apps of all kinds. Though iPad does have many more apps the Kindle has more than enough to satisfy the average user. Receiving your email on the Fire is a snap, too.

There is a Kindle Reader Inside.
Above all the Fire is a Kindle tablet. The Kindle book reader is the ultimate device to read ebooks. If you have been wanting to get back into the habit of reading, the Kindle will help you. It makes reading books very easy. You can adjust the font size, color, and background color. Since I got mine I have been reading like never before. The Kindle book store has thousands of free books and many only $.99. Your local library also lends Kindle books. Reading has never been made so easy to do.

The "Silk" Internet Browser.
Amazon spent the time to get the Internet browser just right. It is smooth and quick to load pages. It has tabbed pages, bookmarks, and everything else a well made browser needs. No skimping here.

Should You Buy it?
In my case the iPad selling for $500 will never be worth it to me. If I was going to spend $500 it would be for a 42" LCD TV. It doesn't make sense for a casual electronic product. At $199 it's worth it, because of all the functions it performs that I don't have to use my desktop for. The portability and functionality makes it a great idea to own one.

Other pads from Blackberry, HTC, and Samsung sell at $400 or more. At that price I would go the extra $100 and get the iPad. Remember, with the iPad and the Amazon Kindle, you have large companies in the market for the long haul to support it. Will these other companies be there in a year or two down the line when sales don't do to well. Remember HP dumped there pads at $200 when they wanted out of the business.

Bottom line the Amazon Kindle Fire gives you the best value and provides you access to the best content. You have the support of one of the biggest companies behind you. That's more than enough to make it worth considering.

Index Funds: The Best Investment Advice Is Not Always The Most Popular

Image via WikipediaOne of the worst problems an investor has is figuring out how to ride the highs and lows of your portfolios performance. The highs can be exhilarating and the lows are always gut wrenching. There has to be a way to invest that allows you to not worry so much. 


What is the key for staying the course?

At the nytimes.com an article describing  the research of Janet M. Brown, president of DAL Investments, revealed the returns of 306 mutual funds over a 20 year period.  She wanted to see if active management was actually the best way. Brown said, “The overall challenge of mutual fund investing is selecting funds in advance that people think will do well in the future,” Ms. Brown continues. “The easiest thing would be to buy and hold or to select a manager with a good long-term track record and buy it and forget it. That was not an effective way of selecting funds.”

Find more information at The Best Investing Advice? Maybe Not the Conventional Method

Performance.
Mutual funds usually compare their returns to the returns of the S.& P. 500 or the Vanguard S.& P. 500 Index Fund. Strategies that use mutual funds in different combinations to build portfolio's can't produce superior results. But Browns research indicated, over the last two decades, no non-index fund investment strategy dominated. At best, some strategies were only successful for a four to five year period on average. Not one fund beat the benchmark every year.

Investment Management.
You will always find the hot manager of the year making tons of money for their clients. Eventually, all managers under perform the benchmark S&P. No particular investment strategy was successful for the entire period of this research.

Expenses.
All investors usually can agree on the idea that high expenses wear away performance. You can always find some funds with high expenses that have outperformed the index. But you will find they have, on average, returned only 1 percent more than the benchmark S&P 500.

Brown's Best Non-Index Fund Strategy. Brown's best non index fund strategy for using mutual funds surpassed the benchmark S&P 500 with a 12.19 percent return. Yet it underperformed the benchmark 9 out of 20 times. 

Takeaway.
Brown admits that the benchmark S&P 500 index has returned 7.65 percent over the last 20 years. I think most investors would be quite happy with that. There are mutual funds that produce a higher return but they don"t do it consistently. The trouble is finding these great performers on a consistent basis. The bottom line is index funds make the most sense for the average investor.

I have found the best implementation of an index fund centered portfolio is Paul Merrimans "Ultimate Buy and Hold Strategy". It has 11 different asset classes giving a broad, diversified group of index funds that will provide a good return over time. The days of tracking down the so called best funds will be over. You will be able to sit back and know you have done all you can to properly invest your money.


Check out Paul Merriman's Ultimate Buy and Hold Strategy here.

Find all Paul Merriman's great strategy and sample portfolios here.

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• Book Review - Financial Fitness Forever: 5 Steps to More Money, Less Risk, and More Peace of Mind by Paul Merriman (50plusfinance.com)
• Walking With Giants: An Interview with Paul Merriman (businessinsider.com)

"Super Committee's" Failure Shows, We're On Our Own

Image via WikipediaOnly in Washington D.C. can you meet for half a year and return with no results. If Congress were employees of a company they would be immediately fired. Their failure sets in motion automatic budgets cuts that take place in 2013.

It doesn't matter who's at fault, the people will have to pay the price to clean up the mess. The automatic cuts will total 1.2 trillion dollars over 10 years. It sounds like a lot of money but over ten years it amounts to only 120 billion per year. That is about 10 percent of the $1 trillion dollar yearly deficit. What happens to the other 90 percent of the deficit. The politicians failure to make needed spending cuts frees them from the burden of taking the blame in the next election. With the election one year away who wants to take the blame for budget cuts.

I remember only a few years ago when a committee was assigned a task to come up with recommendations concerning the deficit. After a year deliberating the committee came up with recommendations for the president. The president didn't take action on any of them. From now on whenever I hear the word committee coming out of Washington, I will think big waste of time. I wonder why politicians don't understand how people have lost faith in their government.

Related: The Deficit Commission Comes In DOA

What's the average person do now?

The problem with all this is the people have become all to dependent on their government for all their needs. The government can't get out of its own way. We believe Washington can fix anything. It can't fix itself, how can it fix your problems?

It only makes me wonder when I am living in retirement, what I will be doing. I don't want to be living under the hopeful good intentions of a government led by men who have to do things not for my benefit but to get themselves elected again. We have finally pushed the limits on the nanny-state. Cradle to grave care by the government is a dismal failure. Trusting in a government that can give a retirement check, can also be a government that can take one away from you.

The most important lesson learned from all this is that you are responsible for your own welfare. It's your job to take care of you. Only you can take care of yourself. Preparing for your health care and retirement is your job. Remember the old saying, "If you want it done right, you have to do it yourself."

With the new year coming, make a resolution to prepare for your future. Save and invest to take care of yourself before it's to late. Start that Roth Ira and get that health care arranged. Start that emergency fund. Quit buying everything in site. Invest the money into your future.