Selling Your Car - Get the Highest Price - Go to Clearbook.com

When I wanted to sell my car I would always go to KelleyBlueBook.com and Edmunds.com to see what my car was selling for. It seemed complete and accurate. You could see the wholesale, retail, and private sale prices of what cars were going for. Though I couldn't figure out how they got the data for private sales. 

Well there is a new website on the block that is offering the same thing. It's called Clearbook.com. It combs millions of used car listings on the Web and analyzes that data to provide consumers with an indication of how much a particular used vehicle (down to the year, make, model, mileage and condition) is worth.

So what's the difference between Clearbook.com and the others? Clearbook.com entire process occurs on one page. The others have page after page loading in between every option. It seemed very Web 2.0 while the others felt clunky and old style. Listed in order of speed and ease of use. First is Clearbook.com followed by Autotrader.com, KBB.com, and nadaguides.com.

I put in my info for a Ford Excursion my Dad has been wanting to sell and the prices seemed to jive with the other websites numbers. Though there is some variation site to site.

Future versions of the tool will also incorporate actual transaction prices and wholesale prices of the vehicle to provide a broader price context for the user. Clearbook.com hopes the new tool will help it create a robust database of pricing information that will ultimately help it release a trade-in service for consumers down the road.

Reader: what have you experiences been with these kind of websites?

Related articles

• How to Save Money at the Car Dealership (bucks.blogs.nytimes.com)
• Selling a $10K car - do I have to accept cash? (ask.metafilter.com)
• The Four Ways to Sell a Car (athingforcars.com)

Financial Advice is Everywhere - But What do People do with it?

Image via WikipediaWhat is the financial literacy of this country? How many thousands of financial blogs are there? There is a money section in every newspaper. We have Money Magazine, Kiplinger and others magazines. We have Suze Orman and Dave Ramsey on TV and radio. With all this good information, why is so much of the population in a financial mess?

 Where has all this information gotten us? We are in a level of indebtedness that some think is dangerously high? People are out of work and they are afraid. With all the help out there to many people remain ill-equipped in understanding money matters.

 I propose there is to much focus on information and not enough on how it relates to real people. Author Bruce Sellery new personal finance book called Moolala: Why Smart People Do Dumb Things With Their Money (And What You Can Do About It) contends "We have given everybody more information than they can ever possibly consume, without giving them insights,”.

  Sellery describes how people were not grasping the informations financial lessons. He’s developed workshops on handling money and he’s written Moolala, a very approachable, self-help book full of quotes from people he’s worked with.

 He describes a couple he was advising who had a six figure income, money in mutual funds under performing the index's, no college fund for the 2 children and 2 new cars in the driveway.

His plan for the couple was what he called the "Priority Pyramid". Starting at the bottom:

Cash Flow. Are you earning more than you are spending? Maximize income and minimize expenses.

Debt. Have you eliminated useless credit card debt? Living below your income would help this.

Savings. Are you saving enough to meet your goals. Whether they are retirement, a car or putting the kids through college.

Taxes. Are you taking care of the tax implications of your investments by using tax free or tax deferred accounts.

Investment Performance. Are your investments keeping up with the benchmark indexes. If not why not just invest in the indexes?

Optimizing Investment Returns. Using other strategies to maximize gains.

After reading a little of Mr. Sellery's advice I don't see he is much different than any other financial guru. I see the same advice as all the rest. There is nothing new to his book.

Mr. Sellery retreads the golden oldies of personal finance. If your a new comer to the personal finance world take heed of these principles they are golden. But knowing something and doing something is to different things. The author makes the point that you have to change your behaviors to carry out your goals. You're in the mess you're in now because of your behaviors. You have a basic understanding of spending and saving, everyone has, but you don't focus on it. 

Financial knowledge is only the tool you use to get to your goal. It's like like buying a diet book or joining a gym, they're tools to a purpose. The knowledge is a tool. Your problem is your sitting there waiting for the tools to do the work, ain't going to happen. 

To make this money thing work you have to change. You must change on the inside, no book will do that for you. If your a spender, stop spending. If your not making enough money, do something to make more money. You need to turn the ship around and just do the opposite of all the dumb things your doing. You don't need to be a genius to be a winner with your money. 

Related articles

• Suze Orman's Tips for Earning More, Surviving Unemployment (dailyfinance.com)
• Cents and sensibility (financialpost.com)
• Why smart people do dumb things with their money (theglobeandmail.com)

Whats Better a Personal Loan or a Credit Card?

You want to paying off your debts in the most economically way. You have a choice between an old fashion unsecured personal loan from your bank or a credit card. Which do you use?

The Good.

With the personal loan you have a fixed interest rate and you make regular monthly payments over time, maybe 3 or five years. No variable rates. No confusing rules. You don't risk your home as with a home equity loan. If you default, you will just have to deal with a collection agency.

Among the banks promoting personal loans now: Wells Fargo, Discover Financial, Citi and CapitalOne. Wells Fargo says that it will lend from $3,000 to $100,000 for a term as long as five years. From Citi, you can borrow from $300 to $7,500. The banks keep the rates top secret until you apply, because they are “risk-based” — in other words, they vary according to your credit score.

The Bad.

The interest rates you will encounter on a personal loan will be between 10 and 15 percent. It will never change like credit cards can if you miss a payment.

With credit cards you could swing a zero or low interest balance transfer, beating the rate for a personal loan. You also have the flexibility to just make the minimum payment if one month the car breaks down and you need the money. Even if you can't get the low interest credit card balance transfer and just get your regular rate you still have more flexibility.

What about fees? With personal loans there is a an origination fee, of on average between $50 and $100 dollars, but with the credit card balance transfer you also have a fee which is between 3 and 5 percent of the loan amount.

The Ugly.

Now comes the best part, the psychology. How many times have you vowed to pay $500 on your bankcard balance transfer only to wimp out and pay $300 because you spent too much at Starbucks that month — or eating out. The $200 you didn’t pay stayed on your balance and accrued more interest for the bank. A payment, by the way, for a $10,000 loan for five years at 15% would be $238 a month.

The bottom line is credit cards have flexibility and personal loans don't. The flexibility has it's benefits and it's problems. If your undisciplined you could always just pay the minimum and also run the balance up again.

With the personal loan the discipline is built in, you have a fixed payment with a fix time frame. You could be paying higher interest for this benefit.

Reader: Which type of loan do you think is better?

Financial Education Is Not Enough To Save You From Yourself

Do you think you have enough financial knowledge to handle your own finances? I'm talking about all facets of your finances, from soup to nuts. If your response is no, thanks for being honest, I'll get back to you in a minute. If you said "Yes", we need to pursue this further.

I believe there are 3 types or levels of financial knowledge. The first is "Financial Literacy". Financial Literacy is a general knowledge of financial vocabulary, financial instruments, and when and why they are used. This consists of knowing of what an investment is and the different types. In banking you know the difference between a checking and savings account.

Next there is "Financial Knowledge". This a deeper knowledge of all things financial. You know about investments. You know the difference between mutual funds, ETF's, IRA's, cash accounts, derivatives, and types of brokers. You can actually tell me if a mutual fund is better than another mutual fund. You know when it's good to own bonds and when it's not. You have knowledge of health, disability, life, and long term care insurance. You can tell me all about fixed and variable annuities.

The third and final type of knowledge is "Financial Capability". This kind of knowledge is when you actually put into effect what you know and are successful at implementing it. The evidence of this knowledge is an emergency fund, a hefty retirement account in the correct vehicles, your living below your means, you have no credit card debt, you have a college fund for your children and your home is paid for or your close to paying it off.

Financial Capability is the final step in the journey of financial education because it describes financial knowledge, competence, confidence and practical skills, such as balancing a checkbook or household budgeting.

Are you at this last step yet? If not, why not? Where on the journey are you? You will never succeed financially if you don't reach this last step. We all know what's good for us, but do we do it?

For those of you who were honest enough to say No to my question, what are you going to do? You admit you don't have the knowledge to run your own finances. Is this a lack of knowledge or a lack of will? If this is a lack of knowledge then find the knowledge. Read a book. A complete book that will help you is Dave Ramsey's Total Money Makeover, read it, do exactly what it says and you will be successful with money.

If you have a lack of will, we call that being lazy in my house. That can be fixed to but not by reading a book. That problem has to fixed on the inside. Make the decision and be a financial winner.

5 Things You Need To Know About Homeowners Insurance

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I am coming up on my homeowners insurance renewal time. Going through Money Magazine I found a great check list of ways to save money on your homeowners insurance. My insurance went up last year 20%, quite a leap. I was glad to have it because it is hard to get insurance in South Florida with all the fears of hurricanes. 

It's so bad many companies have bailed out of the state or are just refusing to write new policies. It was back after Hurricane Andrew when I had State Farm insurance. Just four years after, I missed a premium and they dropped me. They would not take me back even though I had my car insurance with them. Also multiple vehicles and equipment insured with them under my company. They had no loyalty to me even though I had coverage with them for the last 15 years.

Choosing Homeowners Insurance, just like all business decisions, comes down to dollars and cents. So for you and me, we must also do what's right for us. Here are 5 tips to help in your adventure in purchasing your homeowners insurance.

A Homes History Matters.

If your shopping for a new home it may seem unfair but claims associated with the property before you by it can result in your paying more than you would otherwise. Certain locations may be more prone to certain kind of claims.

To get past info on claims ask for a copy of the homes CLUE (Comprehensive Loss Underwriting Exchange) report. this will show all past claims. The homes past history of claims will impact all future insurance rates. If you like the house and purchase it you will be stuck with it's history. This could work in your favor because if the report is negative you could negotiate a lower price for the home.

Small Claims Can Cost You Money.

Go with the highest deductible you can afford and use the savings for all minor repairs. If you file a claim for every broken window or leaky pipe you can drive up your premiums 10 to 15 percent. Insurance agents say even just inquiring about a claim can raise red flags. Increasing you deductible from $500 to $1000 can substantially save you money on your premium. Check with your insurance agent for quotes of insurance with higher deductibles.

A Bad Reputation Can Cost You Higher Premiums.

When insurance agents give you an insurance quote they tap into the Comprehensive Loss Underwriters Exchange to see your relationship with past insurance companies. They want to see your history of past claims. To many claims raises a red flag and may increase your premiums.

You can check your insurance report for errors at Choicetrust.com, it's free if you have been denied coverage, otherwise it costs $19.95.

You May Have to Much Coverage.

You may have an inflation-protection clause in your policy. This automatically increases your premium with inflation rising. This adjustment may be erroneous. Switch it off and keep an eye on your home value yourself. Sometimes the costs of replacement could be less than when you originally purchased the policy. You could of paid a premium for your home, way above the actual replacement value. Check on your actual replacement cost and lower your premium.

Loyalty is Overrated.

Insurance companies that are associated with banks may be using you to make up for losses in the banking part of the company. Remember insurers are still competing for your business. You may be able to get a better deal as a new policy holder than as a existing one. When it's time to renew check Insweb.com and Netquote.com to see if you can get a better deal. Try to bundle it with your car insurance company, you may get a premium cut of 5% to 15%.

Check out Money Magazine online

Here are some Related Stories:

Insurance Coverage Changes If Your Home Is Uninhabited or Rented

Get a CLUE Report if your buying a home

Related articles

• Why Your Homeowner's Insurance Bill Is Still Through The Roof (walletpop.com)
• Top 7 Ways to Save on your Homeowners Insurance (homeownersinsurance.org)
• Know What Your Homeowners Insurance Covers (homeownersinsurance.org)

4 Ways to get FASFA Help

It's that time of year again to fill out your FASFA forms. In my house we have three to do. We have been doing it for a few years now so the initial trauma has subsided. But if you were like me and were confused at first I have listed a few helpful resources to get you started. Good Luck.

1. FAFSA on the Web.

When you’re wrestling with the FAFSA, you can get help from the FAFSA help line courtesy of the U.S. Department of Education. Here is the FAFSA phone number: (800) 433-3243. When you are working online with the application, you can also obtain help by clicking the “Live Help” button.

Before tackling the financial aid form, I’d recommend using the FAFSA on the Web Worksheet, which you can download from the federal student aid website.

2. TuitionCoach.

This free site contains videos, financial aid backgrounders and a FAFSA calculator that can help you determine what your college costs could be. You’ll also find worksheets that can help you complete the FAFSA and the CSS/Financial Aid PROFILE.

3. College Goal Sunday.

This free program, which is sponsored by the YMCA and the Lumina Foundation, offers personal FAFSA advice at weekend events in January and February through the nation.  Some events are starting as early as this week. You can find a calendar of events on the College Goal Sunday website.

4. Student Financial Aid Services.

This is a paid service that helps families prepare and file the FAFSA via the phone and Internet. Depending on the services, the prices range from $79.99 to $99.99.

Here are some additional helpful articles:

4 Misconceptions About College Financial Aid

How To Go To Medical School For Free

Divorced Families Cause Problems For College Students

5 Things You Need to know When Dealing With Debt Settlement Companies

We have had our experiences with debt collectors. The calls all day long and on weekends also. Starting in the morning, sometimes starting at 9:00 A.M. Sunday morning. We have learned to screen our calls but it's still annoying.

Two of our children have had some credit card debts go into default. The debt collectors started to call. There are probably 5 different debt collectors that still call on a regular basis. I talk to them to explain that my kids don't live here anymore and that they are wasting their time. It usually goes well, the caller is business like and we're done but I had one bad call with a nasty debt collector who was insulting. I can see how the tactic works. They make you feel so upset that you give them the rent money to make them quit calling.

With the constant daily calls you become desperate to in trying to pay your debts. That's when you think of trying that debt settlement company. Most debt settlement companies don't succeed in cleaning up your debt. The fees are enormous and the process is long and stressful. Sure there are some that succeed but the success level is low. When dealing with these companies you have to very careful. I have listed a few tips to help you navigate them.

1. Most debt settlement companies charge regardless of whether they ever settle your debts. They usually collect most or all the fee from you long before they have helped to eliminate your debts. You pay the fee whether your debts are settled or not.

2. Debt settlement services don’t provide instant relief. Most debt settlement services require you to deposit a specific amount of money in a bank account each month until you have enough to make a reasonable settlement offer. While you are trying to save, the debt settlement company’s fees are being deducted from your bank account. Saving enough for a settlement can take a year or more. If you have multiple debts, you will save for them one-at-a-time, so the whole process could take several years.

3. Debt settlement services can be very expensive. The charge is often based on a percentage of the total amount of debt that you want help with when you sign up for the service. A typical fee of 15 percent (some are even higher) on four credit card accounts totaling $20,000 would be $3,000. You would pay that amount regardless of how many of the accounts, if any, are actually settled.

4. Claims for success rates can be very misleading. Debt settlement companies advertise big savings but those claims often don’t take into consideration the number of accounts that are never settled or the fees that customers pay. Industry figures show that the majority of debt settlement customers drop out of the programs within the first six months, after they have paid a large portion of the fees but before their debts are settled.

5. Debt settlement programs don’t stop debt collection. Banks and debt collectors don’t have to cooperate with debt settlement companies and they can keep trying to collect the money you owe. While you are saving for a settlement, your debt may increase because of interest and penalties, you may be hounded by collection agents, and you can be sued for the debt.

Debt Settlement companies are everywhere they want your business and may make promises they can't keep. At first, they may stay on top of your program but as time passes either you or the companies lose interest and your case just becomes another account in their computer. There are better ways to settle your accounts which I will cover in another post.


Here are some additional posts about debt:

The Early Warning Signs of Debt

Debt Collectors Are Calling me Everyday - What are my Rights?

Readers Question: A Debt Collector Is Threating me if I Don't Pay | What Should I Do?

Debt Snowball. What is it?

Related articles

• The Five Senses Of Debt Settlement Strategy (totaldebtrelief.net)
• Review: Debt Free for Life (thesimpledollar.com)
• How Debt-Settlement Companies Skirt the New FTC Rules (dailyfinance.com)
• Debt Settlement Companies: The New Rules That May Keep Them Honest (walletpop.com)
• Debt Settlement Companies: How to Tell The Good From The Bad (walletpop.com)

How to Lower Your Car Insurance the 21st Century Way

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Here's the problem, the cost of your car insurance is pretty steep these days. Your a careful driver, you have not gotten in any accidents and you have no tickets. For the insurance companies your the perfect customer. But why do you still have to pay these high insurance bills as if your a bad driver?

To solve this dilemma the car insurances companies have come up with a device to measure just how good a driver you really are. This device installs in your car and measures all the details of your driving. It measures the amount of miles you drive, how fast you go, how many times you use the brakes and the amount of time you drive your car.

GMAC Insurance’s low-mileage discount plan is a version for owners of General Motors cars who have OnStar service. OnStar, which also can alert an operator to call 911 in an emergency or remotely diagnose a car’s mechanical problems, reports actual miles driven for subscribers who sign up for the insurance plan. Discounts are based on how much less than 15,000 miles you drive in a year, though there is no penalty for driving more. For instance, if you drive between 7,501 and 10,000 miles annually, you would save 26% or $208 if the starting premium were $800. GMAC says it has 30,000 low-mileage customers so far.

The Snapshot program from Progressive Insurance has 100,000 customers and is available in 30 states. With Snapshot, you plug in a device about the size of a garage door opener into your car’s diagnostic port (often under the dash below the steering wheel). For 30 days, the gizmo sends data back to Progressive about how many miles you drive at what time of day and attempts to discern if you are an aggressive driver. (Lots of braking translates as aggressive since tailgaters hit their brakes a lot). After 30 days, Progressive will tell you, based on your mileage and driving habits, whether you qualify for a discount of up to 30%.

While other programs don’t measure your speed, Allstate’s DriveWise program doesn’t shy away from that. Now in effect in Illinois, the plan will be rolled out to other states during this year. The device installed for DriveWise will note any time you exceed 80 mph. In addition to your mileage and episodes of hard braking and aggressive acceleration, Allstate says such speeding could affect your rating and your premium.


Are you thinking about doing this than consider the issues:

• Will you cut back your mileage during this period. Are you considering a road trip.
• Will you really show up as a safe driver? You're going to reveal what kind of driver you really are. We all think we are great drivers. Do you change lanes a lot. Do you speed up quickly? All this will be revealed. 
• Understand what discounts will arise with this examination. Also check out the penalties if your considered a bad driver.
• Are you worried about your privacy? these devices could be used with your GPS revealing where your are going to and how long your there. 

This is definitely a win for people who drive very little or are good drivers. But if your a bad driver with a lot of claims are you going to add to the damage by attaching this device to your car revealing how bad a driver you really are?

Tax Tips for the Unemployed

If it's not enough that you have been unemployed for so long, now you have tax season to make you feel worse.  We all could use a little help sorting out the maze of forms and deductions that need to be kept up on to do our taxes correctly. Courtesy of HRBlock.com they have listed 5 helpful tips to get you started.

1. Unemployment Benefits

• Expiration alert: all unemployment benefits in 2010 are taxable. In 2009, the first $2,400 in unemployment benefits were tax free — but this benefit has since expired.
• When claiming your unemployment benefits, you can choose to have 10 percent of your unemployment payment withheld to help pay your federal taxes. You can also withhold your state income taxes.
• Although withholding is voluntary, it is beneficial because it eliminates the need to make estimated tax payments.
• Start on tax withholding unemployment payments by filing Form W-4V, Voluntary Withholding Request, with the payer of the unemployment.

2. Job Search Expenses

• Here's some good news: if you are looking for a new job, you may qualify for a number of tax deductions.
• These deductions include travel expenses, cost of printing, mailing, and creating a resume, job placement agency expenses, and more.
• Remember that expenses for a job search in your same line of work are deductible, but you will have to clear several hurdles to reap the benefits.
• If you itemize, job hunting expenses in your same line of work are considered miscellaneous itemized deductions.
• Your total miscellaneous deductions must be greater than 2 percent of your adjusted gross income, and only the amount that exceeds the 2 percent “floor” is deductible.

3. Moving Expenses

• More good news: if you moved for a new job, the expenses associated with that move are deductible, even if you do not itemize.
• To deduct moving expenses, the new job must be at least 50 miles farther from your old home than the old job was. For example, if you commute 20 miles to your old job, your new job must be at least 70 miles from your previous home.
• The deductible amount is the unreimbursed cost of moving you and your belongings to the new location.
• You must stay at the new job at least 39 weeks to qualify for this deduction.

4. Medical Deduction

• If you aren’t working and are paying COBRA premiums, you should track these and other out of pocket medical expenses as they may qualify for a medical expense deduction.
• Unreimbursed medical expenses, which include COBRA premiums, prescription drug costs, dental expenses, and more totaling more than 7.5 percent of your adjusted gross income, are deductible.
• This is one instance where married couples may benefit by filing separately. If one isn't working and has low income/big medical bills, married filing separately may be a good way to go.

5. Health Insurance

• If you are under 27 years old and do not have access to employer-provided insurance, you may be added to your parents' health insurance policies starting in 2011. This benefit is not taxable.

I hope these tips help you get more organized in filing your tax return.



Related Posts:

5 Tax Benefits For Students

Follow the IRS on YouTube and Twitter

The I.R.S. has an App to Track Yor Refund

File Your Tax Return For Free - Here's Where to do it

The New Tax Law: Gifts For All

Related articles

• Should I Itemize Deductions on My Taxes? (turbotax.intuit.com)
• Overlooked Tax Credits, Deductions (abcnews.go.com)
• Unemployed? We've got some tax tips for you (turbotax.intuit.com)
• Unemployed Doesn't Mean Untaxed (turbotax.intuit.com)

Tips To Help You Talk Money To Your Sweetheart

Image by Sister72 via Flickr

This past Valentines Day just brought out the best side of me. When my wife and I talk about money these days it's good to know it won't turn into a knock down drag out fight like it used to. We have learned to talk calmly about money and practically know how the other will respond in any situation..

During are early years of marriage money was very tight. We were combining families and lives. It wasn't easy because most of our fights were about money. We both came from different experiences with money. Our families handled money differently. We had to get used to each other and also our spending-saving habits.

I found that the number one thing to solving money issues was communication. We had to check our baggage at the door and talk openly about the reasons for our differences. We had to be careful not to be hurtful and try to resolve little issues before they festered into big ones. Having those smaller open discussions headed off the potentially bigger ones down the line.

With so many differences we had to find common ground. We tried not to dwell on our past experiences but we set goals and figured ways to arrive at them. It wasn't easy but we kept trying. There was some times when the wheels came off the wagon. But with time and patience we persisted.

We found out early that if we didn't do the math and have a game plan but just relied on our talks we would fail. Putting your goals in writing, setting up a spending plan and tracking actual household income and expenses was imperative to success.

When discussing all this financial stuff we had to methodical and not emotional think about what we we're doing and planning to do. We came together and didn't have a chance to stay together unless we were methodical about our plans.

Sometimes you have to lose a battle, to win a war. Each of us had to give up entrenched ideas and beliefs for the common good. This is very hard to do. Giving up habits that you know are good, but for the greater goals of the marriage, we had to agree to disagree.

Lastly we sought out professional help. Not a psychiatrist, because it feels that way now and then, but a financial expert. They will show you the things you overlooked and things to do, to make your plans happen.

Marriage poses many challenges. Sharing money decisions, in a caring way, will only strengthen your marriage. Not working together may cause your marriage to dissolve. Giving your trust to another is a big step. You trust your spouse with your heart, why not your money?

Reader, what situations cause money fights in your home? Or are you past that ?

Related articles

• A man's perspective on 'filling up your sweetheart's emotional tank' (knoxnews.com)
• Are You Talking with Your Family About Money? (moneyning.com)

5 Tax Benefits For Students

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With college being so expensive you need all the help you can get to save a little money. Our friends over at HRBlock.com have given us 5 tips that apply to the student or the one paying for the students education. 

• American Opportunity Credit: Up to $2,500 in 2010 for qualified education expenses will be paid to each eligible student who is enrolled part-time or full-time. You can claim the credit only for the first four years of higher education, but it doesn't apply to private secondary school or graduate school. This credit is 40 percent refundable and up to $1,000 may be refunded to the taxpayer even if there is no tax liability.
• Lifetime Learning Credit: You can receive up to $2,000 for qualified education expenses. You can claim this credit only once per return, but there is no limit on the number of years you can claim the credit. You're eligible for this if you're a student who takes one or more courses. Qualified expenses for the Lifetime Learning Credit include the cost of courses that aren't part of a degree or certificate program. So if you work and take occasional courses to strengthen your job skills, you are eligible for this credit.
• Tuition and Fees Deduction: You may be eligible for up to 100 percent of qualified higher education expenses with a maximum of either $4,000 or $2,000, depending on the taxpayer's filing status and income level. Like the Lifetime Learning Credit, there is no course load requirement or limit on the number of years the deduction can be taken.
• Student Loan Interest Deduction: If you are paying back student loans used to pay for higher education, you may be eligible to deduct up to $2,500 per return for every year.
• Employer-provided Educational Assistance: If you received educational assistance benefits from your employer you can exclude up to $5,250 of those benefits each year.

Our tax returns are becoming more complicated every year. If you have any doubt to your ability to complete them correctly be sure to hire a competent tax preparer. They always seem to find those pesky deductions we miss. They may be able to keep a little more coin in your pocket and less in Uncle Sam's.

Related articles

• Two Tax Credits for Higher Education (money.usnews.com)
• Students Shouldn't Miss Out on Valuable Tax Deductions (onlinecollege.org)
• The Lowdown on Education Tax Breaks (turbotax.intuit.com)

US Healthcare System Is "Evil," Says Justin Bieber

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When I think of words to describe the U.S. Healthcare system, the word "evil" has never entered my mind. But to our young friend Justin Bieber, it's evil. Recently, I don't know how this could come up, but Justin Bieber commented on the U.S. Healthcare System. Here's what he told the Rolling Stone magazine when asked if he would switch from being Canadian to a US citizen. Bieber says:

"You guys are evil. Canada's the best country in the world. We go to the doctor and we don't need to worry about paying him, but here, your whole life, you're broke because of medical bills. My bodyguard's baby was premature, and now he has to pay for it. In Canada, if your baby's premature, he stays in the hospital as long as he needs to, and then you go home."

Even though he is only 16 years old he does have his opinions. I did not know he was a Canadian. He has grown up in a country that has socialized medicine. He believes it is a good thing. Lets remember that because of his youth he has a very limited knowledge of finances and paying your own way. Also remember he is being sympathetic to his body guards situation. He is coming from a good heart.

By his comments, I believe he is not that involved with his personal finances. Someday when he is old enough to take an interest in his tax returns, he may think differently. His future looks bright, with music, TV and movies in his future. He will be making obscene amounts of money and paying obscene amounts of tax. He may wonder when that day comes where his money is going to. That day hopefully he'll put 2 and 2 together and realize that his Canadian Healthcare System is not so free anymore.

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• Justin Bieber: "I Don't Really Believe In Abortion" (mediaite.com)
• Justin Bieber talks sex, politics and Swiss Chalet (theprovince.com)
• Justin Bieber to Rolling Stone: 'I don't think you should have sex with anyone unless you love them.' (popwatch.ew.com)
• Justin Bieber Does 'Rolling Stone' Magazine (pinkisthenewblog.com)

Your Budget Will Always Fail If You Don't Have This One Ingredient

Budgeting is the backbone of your financial plan. It's a spending plan that tells your money where to go every month. We all have various reasons to have a spending plan. It can be saving for retirement, getting out of debt or saving for a house or car.

The fuel to make this plan come all together is your income. Budgeting your income channels the money to a future purpose. Now a days money is at a premium, people have lost jobs and income is reduced. On the other hand expenses are going up. My insurance, property taxes, and consumables have all risen sharply in the last few years. The spending plan is tighter than ever.

How To: Create A Budget

The problem is that you don't have the money to save anymore. Your just making the bills and this is the worst time to put money into retirement or paying off debt. In my own situation, my health care used to be paid for at my business. Now the money just isn't their anymore. It now comes out of my income every month. Like me, many others have incomes reduced or eliminated causing a drastic cut back in lifestyle and spending.

The cure for all this is to find other channels of income. Whether it's a part time job or a home based business. If you are thinking you already work 6 or 7 days a week now, how can I work more? You will have to find the way that works in your life. This is not going to be easy. If your fluent in computers build a website and sell something. Have a garage sale on Ebay.

Budgets: Hold Your Nose and Try One

If computers are not your thing then, find a way to use your job specific knowledge and do what you do at work for clients. Starting a business at home will have low start up costs and it lets you test the waters cheaply to see if your idea will fly.

You need the increased income to jump start your goals. We all need to do something on the side. It may grow into to something substantial, it may flounder, or it may make you some money that will give you an income, that will take you into retirement. Don't just sit there in front of the TV complaining. Shut off "Biggest Loser" and make yourself the biggest winner.

Online Budgeting Tool That Keeps Your Data Private Try Doughhound.com

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Is It Fair Baby Boomers Are Getting Blamed For Everything These Days

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If you are of the Baby Boomer generation are you to blame for the Social Security and health care problems? I am seeing in the news more and more how the Boomer's are beginning to be used as the scape goat for the nations problems. The trends are starting to show that the shear number of Baby Boomers will effect the economy and jobs in this country for the next 30 years. In many ways they will be blamed for the future economic woes of this country.

The boomer's are getting blamed that, as they age, they will be using more than their share of medical resources. They will be the generation that will enjoy the best of the medical benefits this country has to offer. They will be living longer than any generation has ever in this country. Their longevity will cause Medicare to become insoluble.

Social Security is teetering on bankruptcy more and more every year. Guess who will be blamed for pushing it over the edge. Boomer's, with their state of the art medical care will have extended life spans that will allow them to receive benefits much longer than the system was built to sustain. The X and Y generations will have to foot the bill for their longer lives. Not only that the X and Y's will have to be paying more in to support their eventual retirement. They are not going to like that.

Enjoying a longer life span comes with a need to work longer. The bulk of Boomer's are ill equipped for retirement. You will see retirees keeping their jobs longer, not passing their businesses on to their children because they need money to live. Boomer's will be seen everywhere. We will have a gray army of workers bagging groceries, doing office work and working in McDonald's. The X and Y's are not going to like the Boomer's taking jobs, they may need or want.

The first Boomer's are the children of the "Greatest Generation", the generation that saw the end of World War 2 and the greatest rise in the economy this country has ever known. Their progeny will rewrite the book on retirement, aging and end of life issues for future generations. The first Boomer's are turning 65 this year, with 76 million of them, it's just beginning

Additional Links:

5 Ways to Mess Up Your Retirement Plan

Social Security Can't Be Eliminated and Here's Why

Related articles

• Marty Zwilling: Boomers are Driving a New Entrepreneurship Boom (huffingtonpost.com)
• First Baby Boomers Turn 65 (npr.org)
• Green GrandBoomers in Toyland (advertisingtobabyboomers.blogspot.com)
• 7 Ways to Keep Retirement Exciting (money.usnews.com)
• You're the Boss: Are Baby Boomers Ready to Exit Their Businesses? (boss.blogs.nytimes.com)