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.

Related articles

• 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.

Bloggers Vs. Financial Gurus - Who Helps More?

Image by Casey Serin via FlickrYou know their names Suze Orman, Dave Ramsey, Robert Kiyosaki, Liz Pullman, and David Bach. They are today's financial gurus. We hang on their every word and gage all our actions by their wise advice. 

Online we have thousands of personal finance bloggers relating their own advice and experiences. Which group is better suited to address your situation?

Both sources have much to give to financial education and advice. The Guru's advice does help many people and by the numbers, help many more than bloggers in general. They have access to an audience through TV or by books they have written. The Guru has access to millions of followers and can reach more everyday. The blogger has limited followers and limited access to promotional services. Their audience is smaller but they can help people as well. 

Check out Businessinsider.com "Who are You Listening to?"

If both are able to help people with financial advice and education, which one is more effective.

The Guru has more followers but is limited because they have to spread their wisdom to a mass audience. Why limited? Their books and television appearances have to appeal to a mass audience. This limits them to a general message or plan. It has to be a one size fits all. They have to appeal to the most people to maximize their message so they can sell books and merchandise. Their advice is correct in general. But what if their advice doesn't cover your specific problems?

There are as many different financial situations, as there are people. This is where the financial blogger is better than the financial Guru. Many bloggers write about their own specific situation and experiences. They relate to their readers how they overcame a financial problem in their life. What could be a better way to help someone with a problem, when you already had the problem and overcame it. That's what makes the financial bloggers better than the Gurus.

With all the financial bloggers out there, you should be able to find one that speaks to your situation. Your average blogger doesn't have a manager or book to peddle. They are able to get real with their audience. The hype is very low and the experience is very personal. Many bloggers write about their financial journey from being broke to getting out of debt. Their stories are personal and inspiring. They make you actually believe you can overcome your financial problems.

A Different Reason For Refinancing Your Home

Image via WikipediaWith interest rates at historical lows, refinancing is on the minds of many homeowners. Weighing the benefits against the costs is the only way to determine if it makes sense. We all are looking for that lower mortgage payment so we can use the savings for other things, it's the usually the only reason that someone refinances their home. But maybe there is another way to think about it?

When thinking about refinancing, a better way to weigh the decision is to evaluate the "net benefit". Net benefit represents the overall impact on your personal wealth from refinancing your home mortgage. With that in mind, CreditSesame.com has an infographic spotlighting a new way to think about refinancing your mortgage.

The infographic explains net benefit and an example case study of a proposed refinance. In the infographic, the proposed mortgage refinance has the homeowners making a larger payment over a shorter term. Raising your mortgage payment sounds counter productive but for the example, it actually doubled the net benefit and equity of the home for the home owners.

Should I Refinance My Mortgage? Here’s a New Way to Think About It [Credit Sesame]

When Did The Thanksgiving Day Holiday Begin and Who Was Sarah Josepha Hale?

We all know the Thanksgiving story when the Pilgrims landed the Mayflower on Plymouth Rock. But when was the actual legal holiday established? 


Right in the middle of the Civil War, President Abraham Lincoln took the time to proclaim Thanksgiving a national holiday. 

But little is known of who really was behind influencing Lincoln and the government to make Thanksgiving a holiday.

Sarah Joespha Hale

Little is known of the women who petitioned Lincoln and the four previous presidents to establish the holiday. Her name was Sarah Josepha Hale and she is credited as the individual most responsible for making Thanksgiving a national holiday in the United States; it had previously been celebrated only in New England. 

Each state scheduled its own holiday, some as early as October and others as late as January; it was largely unknown in the American South. Her advocacy for the national holiday began in 1846 and lasted 17 years before it was successful. In support of the proposed national holiday, she wrote letters to five Presidents of the United States -- Zachary Taylor, Millard Filmore, Franklin Pierce, James Buchanan, and Abraham Lincoln. 

Her initial letters failed to persuade, but the letter she wrote to Lincoln did convince him to support legislation establishing a national holiday of Thanksgiving in 1863. 

The new national holiday was considered a unifying day after the stress of the American Civil War. Prior to the addition of Thanksgiving, the only national holidays celebrated in the United States were Washington's Birthday and Independence Day.

Lincoln's Proclamation Establishing Thanksgiving Day:

The year that is drawing towards its close, has been filled with the blessings of fruitful fields and healthful skies. To these bounties, which are so constantly enjoyed that we are prone to forget the source from which they come, others have been added, which are of so extraordinary a nature, that they cannot fail to penetrate and soften even the heart which is habitually insensible to the ever watchful providence of Almighty God. In the midst of a civil war of unequalled magnitude and severity, which has sometimes seemed to foreign States to invite and to provoke their aggression, peace has been preserved with all nations, order has been maintained, the laws have been respected and obeyed, and harmony has prevailed everywhere except in the theatre of military conflict; while that theatre has been greatly contracted by the advancing armies and navies of the Union. Needful diversions of wealth and of strength from the fields of peaceful industry to the national defence, have not arrested the plough, the shuttle, or the ship; the axe had enlarged the borders of our settlements, and the mines, as well of iron and coal as of the precious metals, have yielded even more abundantly than heretofore. Population has steadily increased, notwithstanding the waste that has been made in the camp, the siege and the battle-field; and the country, rejoicing in the consciousness of augmented strength and vigor, is permitted to expect continuance of years, with large increase of freedom. 

No human counsel hath devised nor hath any mortal hand worked out these great things. They are the gracious gifts of the Most High God, who, while dealing with us in anger for our sins, hath nevertheless remembered mercy. 

It has seemed to me fit and proper that they should be solemnly, reverently and gratefully acknowledged as with one heart and voice by the whole American people. I do therefore invite my fellow citizens in every part of the United States, and also those who are at sea and those who are sojourning in foreign lands, to set apart and observe the last Thursday of November next, as a day of Thanksgiving and Praise to our beneficent Father who dwelleth in the Heavens. And I recommend to them that while offering up the ascriptions justly due to Him for such singular deliverances and blessings, they do also, with humble penitence for our national perverseness and disobedience, commend to his tender care all those who have become widows, orphans, mourners or sufferers in the lamentable civil strife in which we are unavoidably engaged, and fervently implore the interposition of the Almighty Hand to heal the wounds of the nation and to restore it as soon as may be consistent with the Divine purposes to the full enjoyment of peace, harmony, tranquillity and Union. 

In testimony whereof, I have hereunto set my hand, and caused the seal of the United States to be affixed. 

Done at the city of Washington, this third day of October, in the year of our Lord one thousand eight hundred and sixty-three, and of the independence of the United States the eighty-eighth. 

A. Lincoln

So when you are sitting down to have your Thanksgiving dinner give thanks also for Sarah Josepha Hale, for all her perseverance and hard work in making our national holiday a permanent part of our culture and history.

The Smart Way for Daily Deal Shopping

Image by Glikò via FlickrAuthor Bio: Kevin is the author of the DebtEye Blog. He is the co-founder of DebtEye and a certified credit counselor.

Daily deal websites have taken the web by storm over the past few years. I usually advised my readers to unsubscribe from the newsletters, but I soon came to realize that some of the deals can actually save you money.

At first, I was against subscribing to some of the daily deal sites because it created a lot of impulse shopping. I was buying “coupons” for items that I didn’t need, and a lot of these actually went unused. A prime example of this is when I bought a $25 Virgin America voucher which was valued at $100. I didn’t read the fine prints, and didn’t know I had to book a reservation within a certain date.

Budgeting is all about saving money right? When you come to think about it, this is what daily deal sites are trying to do. If you’re able to keep disciplined in purchasing the coupons, it can definitely make a difference. Here are some ways you can prevent yourself from going a bit too crazy with daily deals:

1) Spend money wisely – If you’re a fan of daily deal sites, make sure you include this in your budget. It can count towards your entertainment category or your food if you intend to only buy coupons for restaurants. Set a limit on how much you’re willing to spend on it every month. If you can stick to your budget, then it shouldn’t be a problem!

2) Take your time- If you see a deal that you like; take a second to really ask yourself if you really need it. Is it a necessity, or is it a luxury? The truth of the matter is that it’s not going to go way forever. There’s a high chance that a similar coupon will resurface. If you have regrets on not buying it the first time around, you’ll always have a second chance!

3) Niche Markets- As I mentioned, the boom of this industry caused a handful of niche daily deal companies to emerge. Some of my favorite ones are (Aisle50 & CampusCred). Aisle50 focuses solely on grocery items, and have partnerships with some of the major grocery chains. You’ll end up buying items that you need, and they probably won’t go to waste (unless you don’t end up eating your food). CampusCred focuses on daily deals for college campuses which includes tons of restaurants. This is deal for college students who tend to eat out often.

4) Extreme Deals – Once in a while, a new daily deal sites will emerge and giveaway pretty useful coupons. Some of these include a $10 for $20 Amazon gift card or a $4 AMC movie ticket all in hopes to gain subscribers. Jump on these deals before it gets sold out, because these are items that you’re definitely going to use in the future.

5) Use Your Coupons – Lastly but not least, use your coupon! If you’re the type of person who forgot to use your coupon, that’s exactly the reason why a secondary market for unused coupons emerged. If you don’t think you can use your coupon within the expiration date, make sure you sell it to get something out of it at least.

So there you have it. I confess that I started to subscribe to some of the daily deal websites, but I’m definitely more cautious on what I purchase. Use common sense when purchasing coupons, and make sure it’s a necessity, not a luxury!

Does Government Intervention In The Housing Market Ever Turn Out Good?

Image via WikipediaWe are in an economic funk that just doesn't seem to want to go away. With a credit crisis caused by excessive debt secured by over priced property does it make sense to have tougher lending rules or looser ones?

It's going to take a while for real estate values to stabilize. At the same time the economy needs to recover. In time normal market forces will bring thing slowly back to normal. Responsible government spending and responsible private sector spending and saving habits will bring the economy back online. It's going to take some time for all this to happen. Patience is the key.

We are not a patient people. The politicians know this and fear the public will take their pain out on them. Which means they get the blame for the economy and get voted out. The politicians must do something and out of their bag of tricks they pull out an idea, the problem is the idea is usually going to make things worse.

Our friends in the U.K. are getting a plan, by the Prime Minister, to help first-time buyers of new homes to carrying part of the risk of their mortgage loan. They also propose subsidising the construction of 16,000 homes by giving £400 million of taxpayers’ money to property developers. Also they are working on a scheme under which billions of pounds of money in pension funds will be used to finance the construction of power stations, wind turbines and roads.

The Prime Minister, David Cameron says, "This strategy, will unlock the housing market, get Britain building again, and give many more people the satisfaction and security that comes with stepping over their own threshold.”

Propping up the housing market by lending money to people who couldn't currently get a mortgage loan on their own doesn't seem to make sense. But the mortgage guarantee, the first time such a scheme has been attempted in the UK, will result in lenders providing loans with significantly lower deposits than the 20 per cent or more that is typically demanded. This means taxpayers will be liable for losses when borrowers default and homes are repossessed.

On this side of the Atlantic the plan concerns many people. They see government trying to get people into homes they normally couldn't afford, the taxpayers who will be the ones to pay for it if all goes wrong, and the human tragedy of families encouraged to live beyond their means when all come crashing down.

The question is: Does Government Intervention In The Housing Market Ever Turn Out Good?

6 Money Mistakes The New Business Owner Makes

Image by _Davo_ via FlickrMany new business owners get so consumed by their new business venture that they make common personal finance mistakes that may crash their business. It can be not setting up proper tax I.D.'s, getting proper financing, or not keeping good financial records. The new entrepreneur is sometimes caught up to much in the product or service and not whats going on in the office.

1. Overspending for the Business.
The start-up cash that new businesses have can sometimes be wasted on useless things. Overspending on office rent or having to many employees can eat into your initial start-up money. Your buying an expensive office phone system, network or PCs can eat up cash fast. It's best to grow slowly and space out and budget these highly expensive office costs.

2. Get Professional help when needed.
To cut costs many new businessmen will avoid hiring an accountant or lawyer. An accounting or legal mistake early on can get you in hot water with the I.R.S. or set you up for a law suit later. Professional help can help keep you out of trouble. It's like a type of insurance.

3. Pay Yourself Along the Way.
Sure you want to save money and reinvest all profits back into your business. The new businessman usually makes the mistake of letting the company pay his expenses. If Uncle Sam sees you are paying personal expenses with company money, there could be trouble. The best thing to do is pay yourself a salary and keep your business and personal expenses separate. Also make sure to keep the salary at a manageable level. No big salary at the beginning. The company will need the money.

4. Set Up A Rainy Day Fund.
As in personal finance, a rainy day fund is very important. It's your cushion from trouble . So must your company have one to. It's easy to think it can never happen to you but when you think that it usually does. Having the cash on hand to weather any storm will make you a better decision maker because your prepared for the worst.

5. Keep your Business and Personal Assets Separate.
Borrowing money from people in your personal life is a bad idea. Using your personal assets as collateral for a loan is a really bad idea. You need to consider what would happen if your business failed. You would not only lose your business but creditors would come after your personal assets leaving you with nothing.

6. Using a Personal Credit Card For Business Expenses
This is the way most new business people get into trouble. Credit cards in your name used for business. Bad move, you are on the hook if things come crashing down. You can be personally sued for their repayment. Again, don't mix personal and business. Apply for credit cards on the companies credit rating or not at all.

Many start ups today need to concentrate on making money and taking care of the office at the same time. When you are new start up you are at your most vulnerable time you can't afford not to be careful.

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