Saturday, January 17, 2009
CNN & 25 ideas to get rich by .....
1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.
2. It's worth refinancing your mortgage when you can cut your interest rate by at least one point.
3. Spend no more than 2 1/2 times your income on a home. For a down payment, it's best to come up with at least 20%.
4. Your total housing payments should not exceed 28% of your gross income. Total debt payments should come in under 36%.
5. Never hire a roofer, driveway paver or chimney sweep who is going door to door.
6. All else being equal, the best place to invest is a 401(k). Once you've earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA.
7. To figure out what percentage of your money should be in stocks, subtract your age from 120. (NOTE: This is optimistic. If your retirement income DEPENDS on that income you need to make it no more than 25% - in my estimation. KForrest)
8. Invest no more than 10% of your portfolio in your company stock - or any single company's stock, for that matter.
9. The most you should pay in annual fees for a mutual fund is 1% for a large-company stock fund, 1.3% for any other type of stock fund and 0.6% for a U.S. bond fund.
10. Aim to build a retirement nest egg that is 25 times the annual investment income you need.
11. If you don't understand how an investment works, don't buy it.
12. If you're not saving 10% of your salary, you aren't saving enough.
13. Keep three months' worth of living expenses in a bank savings account or a high-yield money-market fund for emergencies. If you have kids or rely on one income, make it six months'.
14. Aim to accumulate enough money to pay for a third of your kids' college costs. You can borrow the rest or use some of your income to help out when your child is in college.
15. You need enough life insurance to replace at least five years of your salary as much as 10 years if you have several young children or significant debts.
16. When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium.
17. The best credit card is a no-fee rewards card that you pay in full every month. But if you carry a balance, high-interest rates will wipe out the benefits.
18. The best way to improve your credit score is to pay bills on time and to borrow no more than 30% of your available credit.
19. Anyone who calls or e-mails you asking for your Social Security number or information about your bank or credit card account is a scam artist.
20. The best way to save money on a car is to buy a late-model used car and drive it until it's junk. A car loses 30% of its value in the first year.
21. Lease a new car or truck only if you plan to replace it within two or three years.
22. Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower.
23. Buy airline tickets early because the cheapest fares are snapped up first. Most seats go on sale 11 months in advance.
24. Don't redeem frequent flier miles unless you can get more than a dollar's worth of air fare or other stuff for every 100 miles you spend.
25. When you shop for electronics, don't pay for an extended warranty. One exception: It's a laptop and the warranty is from the manufacturer.
1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.
2. It's worth refinancing your mortgage when you can cut your interest rate by at least one point.
3. Spend no more than 2 1/2 times your income on a home. For a down payment, it's best to come up with at least 20%.
4. Your total housing payments should not exceed 28% of your gross income. Total debt payments should come in under 36%.
5. Never hire a roofer, driveway paver or chimney sweep who is going door to door.
6. All else being equal, the best place to invest is a 401(k). Once you've earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA.
7. To figure out what percentage of your money should be in stocks, subtract your age from 120. (NOTE: This is optimistic. If your retirement income DEPENDS on that income you need to make it no more than 25% - in my estimation. KForrest)
8. Invest no more than 10% of your portfolio in your company stock - or any single company's stock, for that matter.
9. The most you should pay in annual fees for a mutual fund is 1% for a large-company stock fund, 1.3% for any other type of stock fund and 0.6% for a U.S. bond fund.
10. Aim to build a retirement nest egg that is 25 times the annual investment income you need.
11. If you don't understand how an investment works, don't buy it.
12. If you're not saving 10% of your salary, you aren't saving enough.
13. Keep three months' worth of living expenses in a bank savings account or a high-yield money-market fund for emergencies. If you have kids or rely on one income, make it six months'.
14. Aim to accumulate enough money to pay for a third of your kids' college costs. You can borrow the rest or use some of your income to help out when your child is in college.
15. You need enough life insurance to replace at least five years of your salary as much as 10 years if you have several young children or significant debts.
16. When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium.
17. The best credit card is a no-fee rewards card that you pay in full every month. But if you carry a balance, high-interest rates will wipe out the benefits.
18. The best way to improve your credit score is to pay bills on time and to borrow no more than 30% of your available credit.
19. Anyone who calls or e-mails you asking for your Social Security number or information about your bank or credit card account is a scam artist.
20. The best way to save money on a car is to buy a late-model used car and drive it until it's junk. A car loses 30% of its value in the first year.
21. Lease a new car or truck only if you plan to replace it within two or three years.
22. Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower.
23. Buy airline tickets early because the cheapest fares are snapped up first. Most seats go on sale 11 months in advance.
24. Don't redeem frequent flier miles unless you can get more than a dollar's worth of air fare or other stuff for every 100 miles you spend.
25. When you shop for electronics, don't pay for an extended warranty. One exception: It's a laptop and the warranty is from the manufacturer.
Monday, January 12, 2009
Importance of Keeping Receipts....
Normally I have one "box" in which I toss ALL of my sales receipts and another for any receipt that might have some tax consequence (I do a long form). I change the Tax Receipt box each year on Jan. 1st. If you ever have to take something back or justify an expense you will have a receipt.
Normally I have one "box" in which I toss ALL of my sales receipts and another for any receipt that might have some tax consequence (I do a long form). I change the Tax Receipt box each year on Jan. 1st. If you ever have to take something back or justify an expense you will have a receipt.
Friday, January 02, 2009
Reminder: Buying a new car is a luxury. Given the cost of credit, car insurance, property tax, depreciation, etc. you need to made this purchase with CARE. A used car purchase will save you 50% over the life of the car. Some people think that purchasing a new car over 60 months will save them money. The irony is that after 3 years the car is not worth the cost of the remaining payments. Never buy more car than you can afford.
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Refinancing your Mortgage
I was watching a show on refinancing your mortgage. The obvious advice of there had to be at least 1% difference in your existing rate and the new rate plus you needed to live in your house for the next five years to break even. However, something I had not heard of before was the necessity of ASKING for the Reissue rate on "Tile Insurance Policy" that can save you up to 70%. Evidently companies don't want to tell you about the Reissue rate so they can make the extra money. Keep it in mind.
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I was watching a show on refinancing your mortgage. The obvious advice of there had to be at least 1% difference in your existing rate and the new rate plus you needed to live in your house for the next five years to break even. However, something I had not heard of before was the necessity of ASKING for the Reissue rate on "Tile Insurance Policy" that can save you up to 70%. Evidently companies don't want to tell you about the Reissue rate so they can make the extra money. Keep it in mind.
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Wednesday, December 17, 2008
Shingles Vaccination....
If your over the age of 60 you definitely want to get a Shingles Vaccination. The cost of the shot is $200 without insurance but I can guarantee you that after spending three months in bed in pain you will see this as a bargain after you see someone having the disease. Think of it as if someone took an electric sandbelt tool and ran it across your body. That your body proceeds to produce infectous welt and your subject to constant itching and pain. That at best, the only available medications can only ease some of the pain. How long you have the disease will vary between individuals but after 60 it is not uncommon to last months to even years. Your chance of getting the disease between 60 and 85 is 50%.
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If your over the age of 60 you definitely want to get a Shingles Vaccination. The cost of the shot is $200 without insurance but I can guarantee you that after spending three months in bed in pain you will see this as a bargain after you see someone having the disease. Think of it as if someone took an electric sandbelt tool and ran it across your body. That your body proceeds to produce infectous welt and your subject to constant itching and pain. That at best, the only available medications can only ease some of the pain. How long you have the disease will vary between individuals but after 60 it is not uncommon to last months to even years. Your chance of getting the disease between 60 and 85 is 50%.
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Wednesday, June 13, 2007
What do your children owe you? - Nothing...
I am always amazed at people who somehow believe that their children OWE them time and attention. Children do not represent your old age retirement system or your support group. Children are a continuation of your SELF - their actions are only an extension of your own behavior and values. Hopefully you have done a good job and the best part of you and your spouse moves on.
We love our children...and have the luxury to think and worry about them everyday of our/their lives. Remember they have their own lives to live And if you need to hear their voices pick up YOUR phone.
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Key People Responsible ---- For Parkway's Conversion to XP
Just a reminder...
Dr. Malito, Kathy Blackmore, Steve VanMater, and Monty Montgomery were the chief secret planners for the conversion of the 5,000 Parkway School District Macs to Windows XP (Approved by BOE in FEB 2007) .
This conversion decision made in secret, with the participation only a few SELECT schools, no public plan of instructional or financial impact, no meaningful public discussion with community or outside experts, no validation of vague reasons for the conversion, and not mentioned in the Parkway District Technology Plan (2006).
Time will measure the consequences.... but a terrible waste of people and resources in my opinion. And odds are that no matter how much financial accountability is often "hawked" in the district the true costs of this project will not be made public since cost was not a "factor" in the Board of Education's final approval. (Note: Apple Computer was not even invited to make a bid for the intel based processors - another indication that cost was not a factor in this decision since their "non-invited" bid was actually less than the final bid submitted and accepted by Parkway from HP.)
Recently I noted that the District is "PUSHING" the staff to accept laptop computers since they require less electricity (and the HP computers require almost twice as much as the Macintosh computers and thus would cost the District hundreds of thousands of dollars in unplanned electrical infrastructure.) What is really sad is that the staff members who accept these computers are expected to pay for any accidents with their own home insurance.
Lastly, I challenge the School District to make a public summary of this project with all the costs involved. Needless to say, that EVEN IF they made such a public document it would be "incomplete" and not subject to review by critics.
While I could continue to tear this issue to death with other issues of poor planning I know it will not change what has already happened. Still, I want to leave this reminder for the future. How many times in the past has the BOE approved a "proposal" without a detailed plan including cost or instructional impact? Only AFTER they approved the "proposal" did the proponents offer to write THE PLAN.
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Dr. Malito, Kathy Blackmore, Steve VanMater, and Monty Montgomery were the chief secret planners for the conversion of the 5,000 Parkway School District Macs to Windows XP (Approved by BOE in FEB 2007) .
This conversion decision made in secret, with the participation only a few SELECT schools, no public plan of instructional or financial impact, no meaningful public discussion with community or outside experts, no validation of vague reasons for the conversion, and not mentioned in the Parkway District Technology Plan (2006).
Time will measure the consequences.... but a terrible waste of people and resources in my opinion. And odds are that no matter how much financial accountability is often "hawked" in the district the true costs of this project will not be made public since cost was not a "factor" in the Board of Education's final approval. (Note: Apple Computer was not even invited to make a bid for the intel based processors - another indication that cost was not a factor in this decision since their "non-invited" bid was actually less than the final bid submitted and accepted by Parkway from HP.)
Recently I noted that the District is "PUSHING" the staff to accept laptop computers since they require less electricity (and the HP computers require almost twice as much as the Macintosh computers and thus would cost the District hundreds of thousands of dollars in unplanned electrical infrastructure.) What is really sad is that the staff members who accept these computers are expected to pay for any accidents with their own home insurance.
Lastly, I challenge the School District to make a public summary of this project with all the costs involved. Needless to say, that EVEN IF they made such a public document it would be "incomplete" and not subject to review by critics.
While I could continue to tear this issue to death with other issues of poor planning I know it will not change what has already happened. Still, I want to leave this reminder for the future. How many times in the past has the BOE approved a "proposal" without a detailed plan including cost or instructional impact? Only AFTER they approved the "proposal" did the proponents offer to write THE PLAN.
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Tuesday, June 12, 2007
Record Keeping
I have been working for the last couple of months on family genealogy. While it has been a very enjoyable pursuit it has also made me even more aware of the necessity of keeping "backups" of important records at remote sites. Some things (photos, original documents, etc. are simply irreplaceable.) And since you can't keep original records in multiple locations you can can keep COPIES.
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Deceit - A Way of Life...?
Having lived a good portion of my life - I have come to conclude that much of human existence is lived with an element of deceit. No matter how much professed "morality" or "good intentions" I suspect there is always some "untold" story, "truth", "behavior", or whatever that is not freely shared with other people for a variety of reasons - such as suggested by the "Seven deadly sins" of (pride, wrath, greed, envy, lust, sloth, and gluttony.)
No matter who you are you have a secret life.....
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Saturday, April 14, 2007
House Conservation is profitable
In October of 2006 I made major conservation projects to our house. I installed new attic insulation, sealed all the holes in the foundation, and insulated spaces between the floor beams. After an interesting (and cold) winter a review of my housing energy costs show that both natural gas and electricity were down by almost 25%. Given that the US Government offered an addition $500 tax deduction for insulation and another $200 for an energy replacement window the project will pay for itself in 2 years. I would strongly advice everyone to work on energy conservation in the coming years since energy costs will continue to increase.
Saturday, February 10, 2007
Useful Quotes to Remember...
2/10/2007
Our whole nation is founded on compromise. Shelby Foote
Abraham Lincoln reportedly said that, given eight hours to chop down a tree, he'd spend six sharpening his axe.
-- TidBITS 654, quoted by Derek K. Miller, via Art Evans
One test is worth a thousand opinions.
A leader is best when people barely know that he exists.
Less good when they obey and acclaim him.
Worse when they fear and despise him.
Fail to honor people, and they fail to honor you.
But of a good leader, when his work is done, his aim fulfilled,
they will say, "We did this ourselves."
-- Lao-Tzu
It is not enough to do your best: you must know what to do, and THEN do your best.
-- W. Edwards Deming
The significant problems we face cannot be solved by the same level of thinking that created them.
-- Albert Einstein
Deming's 14 points
1. Create constancy of purpose.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection to achieve quality.
4. Minimize total cost, not initial price of supplies.
5. Improve constantly the system of production and service.
6. Institute training on the job.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate slogans, exhortations, and numerical targets.
11. Eliminate work standards (quotas) and management by objective.
12. Remove barriers that rob workers, engineers, and managers of their right to pride of workmanship.
13. Institute a vigorous program of education and self-improvement.
14. Put everyone in the company to work to accomplish the transformation.
Tom DeMarco, rephrasing Einstein, who said
Insanity: doing the same thing over and over again and expecting different results.
Wexelblat's Scheduling Algorithm:
Choose two:
* Good
* Fast
* Cheap
No matter what the problem is,
it's always a people problem.
Jerry Weinberg
A clever person solves a problem.
A wise person avoids it.
-- Einstein
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Our whole nation is founded on compromise. Shelby Foote
Abraham Lincoln reportedly said that, given eight hours to chop down a tree, he'd spend six sharpening his axe.
-- TidBITS 654, quoted by Derek K. Miller, via Art Evans
One test is worth a thousand opinions.
A leader is best when people barely know that he exists.
Less good when they obey and acclaim him.
Worse when they fear and despise him.
Fail to honor people, and they fail to honor you.
But of a good leader, when his work is done, his aim fulfilled,
they will say, "We did this ourselves."
-- Lao-Tzu
It is not enough to do your best: you must know what to do, and THEN do your best.
-- W. Edwards Deming
The significant problems we face cannot be solved by the same level of thinking that created them.
-- Albert Einstein
Deming's 14 points
1. Create constancy of purpose.
2. Adopt the new philosophy.
3. Cease dependence on mass inspection to achieve quality.
4. Minimize total cost, not initial price of supplies.
5. Improve constantly the system of production and service.
6. Institute training on the job.
7. Institute leadership.
8. Drive out fear.
9. Break down barriers between departments.
10. Eliminate slogans, exhortations, and numerical targets.
11. Eliminate work standards (quotas) and management by objective.
12. Remove barriers that rob workers, engineers, and managers of their right to pride of workmanship.
13. Institute a vigorous program of education and self-improvement.
14. Put everyone in the company to work to accomplish the transformation.
Tom DeMarco, rephrasing Einstein, who said
Insanity: doing the same thing over and over again and expecting different results.
Wexelblat's Scheduling Algorithm:
Choose two:
* Good
* Fast
* Cheap
No matter what the problem is,
it's always a people problem.
Jerry Weinberg
A clever person solves a problem.
A wise person avoids it.
-- Einstein
------------------------------------
Monday, February 05, 2007
Some useful economic suggestions to save money...
1. For return on investment, the best home renovation is to upgrade an old bathroom. Kitchens come in second.
2. It's worth refinancing your mortgage when you can cut your interest rate by at least one point. There are transaction costs and fees involved in any refinancing that must be either paid out of pocket or added to the mortgage principal. Some of those costs can be considerable. Title insurance can easily run into four figures and broker fees can be expensive as well.
Like many things in life, timing is everything here. Is your job likely to relocate soon? Will you need a bigger house in the next couple of years? Unless you're planning to stay in the home for a while, the benefits of a lower monthly bill may not be worth the additional expenses that refinancing generates.
3. Spend no more than 2 1/2 times your income on a home. For a down payment, it's best to come up with at least 20%. Many buyers in recent years have stretched the limits of affordability, and have bypassed the traditional 20% down model. But make a smaller down payment, and most lenders will require you to have private mortgage insurance (PMI), which adds a minimum 0.5% of the loan amount to your mortgage payments, about $1,000 more a year on a $200,000 principal.
4. Your total housing payments should not exceed 28% of your gross income. Total debt payments should come in under 36%.
These guidelines include payment on all loans, such as school and auto loans and credit card debt.
Also remember to take into account other home-related expenses to judge a house's affordability. Property and school taxes, home insurance and energy costs and requirements can vary considerably around the nation.
Try to estimate future maintenance costs and work them into your budget. Some homes, especially older ones, may require more regular upkeep than homes built with more modern materials. Roofs, siding and heating, cooling, plumbing, and electric services may have to be replaced within a few years of purchase.
5. Never hire a roofer, driveway paver or chimney sweep who is going door to door.
Even if these contractors aren't scam artists, they may lack licensing and insurance. If a worker gets hurt on your property it could wind up costing a lot more than you bargained for.
Instead, get contractor recommendations from friends, neighbors or relatives. Check references and get documentation of insurance coverage.
And don't put more than 10% down for the job. Mete out the payments gradually as work is done and withhold the final 25% until you're satisfied with the completed project.
6. All else being equal, the best place to invest is a 401(k). Once you've earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA.
One of the keys to saving for the long run is keeping as much money as possible shielded from taxes. A 401(k) gives you that and more: You also get an immediate tax break, because contributions come out of your paycheck before taxes are withheld. And there's the possibility of a matching contribution from your employer – that's free money.
The federal limit on annual contributions has been increasing gradually, and is $15,000 in 2006. If you're 50 or older, you may contribute an additional $5,000.
With a Roth IRA, you get no immediate tax break, but withdrawals in retirement will be tax-free. You can make at least a partial contribution to a Roth if your modified adjusted gross income is less than $110,000, if you're single, or less than $160,000, if you're married and filing jointly.
7. To figure out what percentage of your money should be in stocks, subtract your age from 120.
Since 1926, stocks have returned an annual average of 10.5 percent, long-term government bonds returned 5.1 percent, and "cash," measured by Treasury bills and other short-term investments, has returned just 3.1 percent. In other words, if you're investing for the long-term, stocks are the place to be. But in the short term, the stock market can be downright dangerous, with much more severe drops than the bond market has.
That's where this rule comes in - the younger you are, the more time you have to recover from stock-market crashes. As you get older, you should gradually move money out of stocks and into bonds.
8. Invest no more than 10% of your portfolio in your company stock - or any single company's stock, for that matter.
In a bear market, it's tough to find a safe-haven – a lot of the stocks in your portfolio will be sinking too. But don't compound the risk by holding too much in any one stock.
The most recent dramatic example of just how serious this "specific-stock" risk can be is Enron, which imploded after its executives allegedly engaged in various acts of malfeasance. But a company with perfectly honest management might fall on hard times too.
And if it's your employer's stock, you're in an even worse position – not only will your portfolio be decimated, but your job could be at risk too.
9. The most you should pay in annual fees for a mutual fund is 1% for a large-company stock fund, 1.3% for any other type of stock fund and 0.6% for a U.S. bond fund.
Running a mutual fund isn't free – companies have to pay for research, managers' salaries, and so on. Those costs are borne by the investors in the funds and get deducted from returns. A percentage point here and there may not sound like much, but a fund manager needs to pick a lot of great stocks to make up for those costs.
10. Aim to build a retirement nest egg that is 25 times the annual investment income you need.
So if you want $40,000 a year to supplement Social Security and a pension, you must save $1 million. This rule is based on the amount that you can safely withdraw from your nest egg in retirement.
The single most effective thing you can do to ensure that your money will last is to start out with a low withdrawal rate of 4 percent, then raise that amount annually to compensate for a cost-of-living increase or inflation.
The reason is that if a bear market hits early in retirement, an enormous loss can put such a big dent in the portfolio that it won't be able to recover in time to benefit when the market rebounds.
11. If you don't understand how an investment works, don't buy it.
There is no shortage of investment products out there. In addition to stocks and bonds, there are exotic hedge funds and insurance products.
Fortunately, you don't have to try and make sense out of them. In fact, you can construct a sensible portfolio with just two index mutual funds – one stock and one bond.
To reach your goals, you don't need to shoot for spectacular returns. Individual investors can outpace the market with moderately above-average returns in good times, as long as they don't lose too much money in bad times.
12. If you're not saving 10% of your salary, you aren't saving enough.
The earlier you start saving, the less you'll need to set aside every year to meet your goals. That's because you allow your money more time to grow -- the gains on your invested savings will build on the prior year's gains. That's the power of compounding, and it's the best way to accumulate wealth.
Saving at least 10% of your annual salary for retirement is recommended, but the older you start saving, the more you'll need to save. If you start at 50, you may need to put away 30% a year and still postpone retirement by a few years.
13. Keep three months' worth of living expenses in a bank savings account or a high-yield money-market fund for emergencies. If you have kids or rely on one income, make it six months'.
An emergency fund is a hassle to build, but you'll be glad you did next time your transmission sputters or your boss hands you a pink slip. Besides curbing spending where you can and setting aside a small amount of your pay every two weeks, there are several ways to build your cash cushion. Some sources to draw on:
* A bonus or financial gift from a relative
* Money you get back from a flexible spending account, a transportation reimbursement account or an insurance claim.
* An extra paycheck. If you're paid every two weeks, you'll get 26 paychecks a year. So in some months you'll get three instead of two. If your fixed monthly expenses don't change, you might be able to set aside one paycheck a year.
14. Aim to accumulate enough money to pay for a third of your kids' college costs. You can borrow the rest or use some of your income to help out when your child is in college.
Most parents have trouble saving enough for their retirement. But they still want to help their children pay for college.
In the struggle to feed your 401(k) and your child's 529, the 401(k) should win out. That's because there are no scholarships for retirement and your children have a lot of funding options, including financial aid, loans and a job. They also can go to an excellent, but less expensive school.
And when they're in college, if you have some extra cash after contributing to your retirement accounts, you can help them pay some of their expenses with it.
15. You need enough life insurance to replace at least five years of your salary – as much as 10 years if you have several young children or significant debts.
Life insurance lets surviving family members maintain something close to the standard of living they enjoyed prior to you or your spouse's death. Stay-at-home spouses also should have life insurance, since they do all sorts of things that you would need to pay someone else to do in their absence.
There are two types of policies:
* Cash-value: These cover you for your entire life and includes an investment component.
* Term: These cover you for a specific period of time and provide a death benefit only.
For most people the choice is a no-brainer - the premiums on a term policy are much lower.
16. When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium.
It's the open secret of the insurance game: File a claim, your premiums go up. For that reason, it's in your interest – as much as possible – to shoulder small damages out of pocket.
For home insurance, raising your deductible from $500 to $1,000 could save you 25% on premiums, according to the Insurance Information Institute.
17. The best credit card is a no-fee rewards card that you pay in full every month. But if you carry a balance, high-interest rates will wipe out the benefits.
If you carry a balance, you may pay a variable interest rate as high as 19%. And if you've been late with payments or used up too much of your credit limit, you may be hit with a penalty rate, which can run north of 30%.
Credit card penalty fees, meanwhile, have been on the rise for years. The average late fee in 2005, for example, was $34, up 162% from $13 in 1995, according to the Government Accountability Office. Over-the-limit fees, meanwhile, were $31, up 138% from $13 during the same period.
So no matter how many airline miles or cash back rebates a no-fee rewards card offers you, it won't be enough to compensate you for your very expensive credit card habit.
18. The best way to improve your credit score is to pay bills on time and to borrow no more than 30% of your available credit.
It also helps to pay off debt rather than moving it around because the ratio of your credit card balance to your credit limit is key.
Say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit. Your total credit limit is $8,000, of which your total balance ($2,000) accounts for 25%.
If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50% of that limit.
Also, don't open new accounts when applying for a loan if possible.
19. Anyone who calls or e-mails you asking for your Social Security number or information about your bank or credit card account is a scam artist.
The scam artist's goal is to steal your money, steal your identity or both. In fact, don't carry anything with your Social Security number on it, and don't offer it to anyone unless it's for tax, employment or credit purposes.
There are other ways scammers and identity thieves can get your valuable financial information – for instance, by hacking into a merchant's system and lifting your (and hundreds of other customers') debit card pin numbers.
So be sure to monitor online bank and brokerage accounts a few times a week, and if you see any suspicious withdrawals or charges, report it to your financial institution.
20. The best way to save money on a car is to buy a late-model used car and drive it until it's junk. A car loses 30% of its value in the first year.
Don't believe your father's old-fashioned warnings about buying used. Buying a "pre-owned car" means you've let someone else drive those expensive early miles.
Do your research, of course, and look for a reliable model. But today's cars can generally be expected to rack up six-digit odometer numbers before experiencing major mechanical breakdowns.
Check ConsumerReports.com for detailed reliability information. Sites like Edmunds.com and Kelley Blue Book's KBB.com can help you narrow down the price you should pay.
21. Lease a new car or truck only if you plan to replace it within two or three years.
Keeping a car at the end of lease-term can cost you thousands more than it would have to simply have bought the car from the get-go.
Leasing does have its place, but it's not right for most people. If you're absolutely certain you don't want the car long-term, leasing keeps your monthly payments low. That's because the payments are based on the actual value the car loses during the time you're driving it. Instead of making payments then getting some money back when you trade the car in, as you do when you finance a purchase, with a lease you just don't pay that money out to begin with.
22. Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower.
As with cars, electronics cost the most for those who must be first with the latest cool thing. Let the gadget freaks get their fill, then go shopping when the market has calmed.
Also, those first-in-line buyers can have the fun of discovering the annoying bugs, disappointing features and poorly designed interfaces. You can check the user reviews on C-Net and Amazon.com later to find out for yourself without having spent the money.
23. Buy airline tickets early because the cheapest fares are snapped up first. Most seats go on sale 11 months in advance.
Airlines would love it if every passenger would reserve their seat as far in advance as possible. That way, they'd always know how many flights they actually need for each route. So they make it as attractive as possible for people to book early. To punish procrastinators, ticket prices get higher as take-off gets closer.
Up to a point, at least. In the end, the airline just wants to fill every seat. So, if there are a few seats left open at the last minute, you can sometimes find a bargain deal. If you really have to fly, though, don't count on that. Airline bean counters have gotten pretty good at knowing just how many seats they need.
24. Don't redeem frequent flier miles unless you can get more than a dollar's worth of air fare or other stuff for every 100 miles you spend.
You typically need 25,000 miles for a domestic round-trip ticket. If the ticket costs less than $250, you're probably better off paying cash.
Airlines push redeeming miles online and will charge $5 to $15 to speak to a person. But it may be worth it: the airline representative has access to additional inventory on partner airlines.
Your miles stretch further on international flights, which typically require 40,000 to 60,000 miles or more depending on the destination. You want to aim to get $2 worth of airfare for every 100 miles. In other words, for a $1,200 flight to Paris, you'd be getting your money's worth using 60,000 miles.
25. When you shop for electronics, don't pay for an extended warranty. One exception: It's a laptop and the warranty is from the manufacturer.
Most electronics, like PDAs and MP3 players, have few moving parts that are prone to wear. If there's anything defective, you'll probably find out about it within the first few months.
Laptops, on the other hand, have parts like hard drives and big screens that can actually fail over time. Plus, laptops can cost thousands of dollars to replace.
From: http://money.cnn.com/popups/2006/moneymag/25_rules/25.html
2. It's worth refinancing your mortgage when you can cut your interest rate by at least one point. There are transaction costs and fees involved in any refinancing that must be either paid out of pocket or added to the mortgage principal. Some of those costs can be considerable. Title insurance can easily run into four figures and broker fees can be expensive as well.
Like many things in life, timing is everything here. Is your job likely to relocate soon? Will you need a bigger house in the next couple of years? Unless you're planning to stay in the home for a while, the benefits of a lower monthly bill may not be worth the additional expenses that refinancing generates.
3. Spend no more than 2 1/2 times your income on a home. For a down payment, it's best to come up with at least 20%. Many buyers in recent years have stretched the limits of affordability, and have bypassed the traditional 20% down model. But make a smaller down payment, and most lenders will require you to have private mortgage insurance (PMI), which adds a minimum 0.5% of the loan amount to your mortgage payments, about $1,000 more a year on a $200,000 principal.
4. Your total housing payments should not exceed 28% of your gross income. Total debt payments should come in under 36%.
These guidelines include payment on all loans, such as school and auto loans and credit card debt.
Also remember to take into account other home-related expenses to judge a house's affordability. Property and school taxes, home insurance and energy costs and requirements can vary considerably around the nation.
Try to estimate future maintenance costs and work them into your budget. Some homes, especially older ones, may require more regular upkeep than homes built with more modern materials. Roofs, siding and heating, cooling, plumbing, and electric services may have to be replaced within a few years of purchase.
5. Never hire a roofer, driveway paver or chimney sweep who is going door to door.
Even if these contractors aren't scam artists, they may lack licensing and insurance. If a worker gets hurt on your property it could wind up costing a lot more than you bargained for.
Instead, get contractor recommendations from friends, neighbors or relatives. Check references and get documentation of insurance coverage.
And don't put more than 10% down for the job. Mete out the payments gradually as work is done and withhold the final 25% until you're satisfied with the completed project.
6. All else being equal, the best place to invest is a 401(k). Once you've earned the full company match, max out a Roth IRA. Still have money to invest? Put more in your 401(k) or a traditional IRA.
One of the keys to saving for the long run is keeping as much money as possible shielded from taxes. A 401(k) gives you that and more: You also get an immediate tax break, because contributions come out of your paycheck before taxes are withheld. And there's the possibility of a matching contribution from your employer – that's free money.
The federal limit on annual contributions has been increasing gradually, and is $15,000 in 2006. If you're 50 or older, you may contribute an additional $5,000.
With a Roth IRA, you get no immediate tax break, but withdrawals in retirement will be tax-free. You can make at least a partial contribution to a Roth if your modified adjusted gross income is less than $110,000, if you're single, or less than $160,000, if you're married and filing jointly.
7. To figure out what percentage of your money should be in stocks, subtract your age from 120.
Since 1926, stocks have returned an annual average of 10.5 percent, long-term government bonds returned 5.1 percent, and "cash," measured by Treasury bills and other short-term investments, has returned just 3.1 percent. In other words, if you're investing for the long-term, stocks are the place to be. But in the short term, the stock market can be downright dangerous, with much more severe drops than the bond market has.
That's where this rule comes in - the younger you are, the more time you have to recover from stock-market crashes. As you get older, you should gradually move money out of stocks and into bonds.
8. Invest no more than 10% of your portfolio in your company stock - or any single company's stock, for that matter.
In a bear market, it's tough to find a safe-haven – a lot of the stocks in your portfolio will be sinking too. But don't compound the risk by holding too much in any one stock.
The most recent dramatic example of just how serious this "specific-stock" risk can be is Enron, which imploded after its executives allegedly engaged in various acts of malfeasance. But a company with perfectly honest management might fall on hard times too.
And if it's your employer's stock, you're in an even worse position – not only will your portfolio be decimated, but your job could be at risk too.
9. The most you should pay in annual fees for a mutual fund is 1% for a large-company stock fund, 1.3% for any other type of stock fund and 0.6% for a U.S. bond fund.
Running a mutual fund isn't free – companies have to pay for research, managers' salaries, and so on. Those costs are borne by the investors in the funds and get deducted from returns. A percentage point here and there may not sound like much, but a fund manager needs to pick a lot of great stocks to make up for those costs.
10. Aim to build a retirement nest egg that is 25 times the annual investment income you need.
So if you want $40,000 a year to supplement Social Security and a pension, you must save $1 million. This rule is based on the amount that you can safely withdraw from your nest egg in retirement.
The single most effective thing you can do to ensure that your money will last is to start out with a low withdrawal rate of 4 percent, then raise that amount annually to compensate for a cost-of-living increase or inflation.
The reason is that if a bear market hits early in retirement, an enormous loss can put such a big dent in the portfolio that it won't be able to recover in time to benefit when the market rebounds.
11. If you don't understand how an investment works, don't buy it.
There is no shortage of investment products out there. In addition to stocks and bonds, there are exotic hedge funds and insurance products.
Fortunately, you don't have to try and make sense out of them. In fact, you can construct a sensible portfolio with just two index mutual funds – one stock and one bond.
To reach your goals, you don't need to shoot for spectacular returns. Individual investors can outpace the market with moderately above-average returns in good times, as long as they don't lose too much money in bad times.
12. If you're not saving 10% of your salary, you aren't saving enough.
The earlier you start saving, the less you'll need to set aside every year to meet your goals. That's because you allow your money more time to grow -- the gains on your invested savings will build on the prior year's gains. That's the power of compounding, and it's the best way to accumulate wealth.
Saving at least 10% of your annual salary for retirement is recommended, but the older you start saving, the more you'll need to save. If you start at 50, you may need to put away 30% a year and still postpone retirement by a few years.
13. Keep three months' worth of living expenses in a bank savings account or a high-yield money-market fund for emergencies. If you have kids or rely on one income, make it six months'.
An emergency fund is a hassle to build, but you'll be glad you did next time your transmission sputters or your boss hands you a pink slip. Besides curbing spending where you can and setting aside a small amount of your pay every two weeks, there are several ways to build your cash cushion. Some sources to draw on:
* A bonus or financial gift from a relative
* Money you get back from a flexible spending account, a transportation reimbursement account or an insurance claim.
* An extra paycheck. If you're paid every two weeks, you'll get 26 paychecks a year. So in some months you'll get three instead of two. If your fixed monthly expenses don't change, you might be able to set aside one paycheck a year.
14. Aim to accumulate enough money to pay for a third of your kids' college costs. You can borrow the rest or use some of your income to help out when your child is in college.
Most parents have trouble saving enough for their retirement. But they still want to help their children pay for college.
In the struggle to feed your 401(k) and your child's 529, the 401(k) should win out. That's because there are no scholarships for retirement and your children have a lot of funding options, including financial aid, loans and a job. They also can go to an excellent, but less expensive school.
And when they're in college, if you have some extra cash after contributing to your retirement accounts, you can help them pay some of their expenses with it.
15. You need enough life insurance to replace at least five years of your salary – as much as 10 years if you have several young children or significant debts.
Life insurance lets surviving family members maintain something close to the standard of living they enjoyed prior to you or your spouse's death. Stay-at-home spouses also should have life insurance, since they do all sorts of things that you would need to pay someone else to do in their absence.
There are two types of policies:
* Cash-value: These cover you for your entire life and includes an investment component.
* Term: These cover you for a specific period of time and provide a death benefit only.
For most people the choice is a no-brainer - the premiums on a term policy are much lower.
16. When you buy insurance, choose the highest deductible you can afford. It's the easiest way to lower your premium.
It's the open secret of the insurance game: File a claim, your premiums go up. For that reason, it's in your interest – as much as possible – to shoulder small damages out of pocket.
For home insurance, raising your deductible from $500 to $1,000 could save you 25% on premiums, according to the Insurance Information Institute.
17. The best credit card is a no-fee rewards card that you pay in full every month. But if you carry a balance, high-interest rates will wipe out the benefits.
If you carry a balance, you may pay a variable interest rate as high as 19%. And if you've been late with payments or used up too much of your credit limit, you may be hit with a penalty rate, which can run north of 30%.
Credit card penalty fees, meanwhile, have been on the rise for years. The average late fee in 2005, for example, was $34, up 162% from $13 in 1995, according to the Government Accountability Office. Over-the-limit fees, meanwhile, were $31, up 138% from $13 during the same period.
So no matter how many airline miles or cash back rebates a no-fee rewards card offers you, it won't be enough to compensate you for your very expensive credit card habit.
18. The best way to improve your credit score is to pay bills on time and to borrow no more than 30% of your available credit.
It also helps to pay off debt rather than moving it around because the ratio of your credit card balance to your credit limit is key.
Say you owe a total of $2,000 on four credit cards, each of which has a $2,000 limit. Your total credit limit is $8,000, of which your total balance ($2,000) accounts for 25%.
If you transfer all your balances to two cards and cancel the other two, your total credit limit is reduced to $4,000, and your $2,000 balance now accounts for 50% of that limit.
Also, don't open new accounts when applying for a loan if possible.
19. Anyone who calls or e-mails you asking for your Social Security number or information about your bank or credit card account is a scam artist.
The scam artist's goal is to steal your money, steal your identity or both. In fact, don't carry anything with your Social Security number on it, and don't offer it to anyone unless it's for tax, employment or credit purposes.
There are other ways scammers and identity thieves can get your valuable financial information – for instance, by hacking into a merchant's system and lifting your (and hundreds of other customers') debit card pin numbers.
So be sure to monitor online bank and brokerage accounts a few times a week, and if you see any suspicious withdrawals or charges, report it to your financial institution.
20. The best way to save money on a car is to buy a late-model used car and drive it until it's junk. A car loses 30% of its value in the first year.
Don't believe your father's old-fashioned warnings about buying used. Buying a "pre-owned car" means you've let someone else drive those expensive early miles.
Do your research, of course, and look for a reliable model. But today's cars can generally be expected to rack up six-digit odometer numbers before experiencing major mechanical breakdowns.
Check ConsumerReports.com for detailed reliability information. Sites like Edmunds.com and Kelley Blue Book's KBB.com can help you narrow down the price you should pay.
21. Lease a new car or truck only if you plan to replace it within two or three years.
Keeping a car at the end of lease-term can cost you thousands more than it would have to simply have bought the car from the get-go.
Leasing does have its place, but it's not right for most people. If you're absolutely certain you don't want the car long-term, leasing keeps your monthly payments low. That's because the payments are based on the actual value the car loses during the time you're driving it. Instead of making payments then getting some money back when you trade the car in, as you do when you finance a purchase, with a lease you just don't pay that money out to begin with.
22. Resist the urge to buy the latest computer or other gadget as soon as it comes out. Wait three months and the price will be lower.
As with cars, electronics cost the most for those who must be first with the latest cool thing. Let the gadget freaks get their fill, then go shopping when the market has calmed.
Also, those first-in-line buyers can have the fun of discovering the annoying bugs, disappointing features and poorly designed interfaces. You can check the user reviews on C-Net and Amazon.com later to find out for yourself without having spent the money.
23. Buy airline tickets early because the cheapest fares are snapped up first. Most seats go on sale 11 months in advance.
Airlines would love it if every passenger would reserve their seat as far in advance as possible. That way, they'd always know how many flights they actually need for each route. So they make it as attractive as possible for people to book early. To punish procrastinators, ticket prices get higher as take-off gets closer.
Up to a point, at least. In the end, the airline just wants to fill every seat. So, if there are a few seats left open at the last minute, you can sometimes find a bargain deal. If you really have to fly, though, don't count on that. Airline bean counters have gotten pretty good at knowing just how many seats they need.
24. Don't redeem frequent flier miles unless you can get more than a dollar's worth of air fare or other stuff for every 100 miles you spend.
You typically need 25,000 miles for a domestic round-trip ticket. If the ticket costs less than $250, you're probably better off paying cash.
Airlines push redeeming miles online and will charge $5 to $15 to speak to a person. But it may be worth it: the airline representative has access to additional inventory on partner airlines.
Your miles stretch further on international flights, which typically require 40,000 to 60,000 miles or more depending on the destination. You want to aim to get $2 worth of airfare for every 100 miles. In other words, for a $1,200 flight to Paris, you'd be getting your money's worth using 60,000 miles.
25. When you shop for electronics, don't pay for an extended warranty. One exception: It's a laptop and the warranty is from the manufacturer.
Most electronics, like PDAs and MP3 players, have few moving parts that are prone to wear. If there's anything defective, you'll probably find out about it within the first few months.
Laptops, on the other hand, have parts like hard drives and big screens that can actually fail over time. Plus, laptops can cost thousands of dollars to replace.
From: http://money.cnn.com/popups/2006/moneymag/25_rules/25.html
Sunday, July 30, 2006
A PRAYER..... I am not a religious person in the ...
A PRAYER.....
I am not a religious person in the traditional sense. I do not believe there is an omnipotent and omminicent entity watching over this or any other planet. I believe that the only forces that can govern our collective survival is our ability to reason and a self-imposed "humanitarian moral order." Without these efforts we will not survive.
If I WERE religious man this the one prayer I would offer:
"Dear GOD, please provide more common sense and humanity to the human race. End the constant selfishness offered in your name. Make a new visitation and UPDATE your mission statement. Tell us WHY we are here. And if there is a "damnation clause" in our "so-called contract" please make sure that everyone who kills another human being in your name receive instant and full punishment." (work in progress)
Sadly the history of mankind has been a struggle of one group of believers to impose their WILL on others and enriched with hatred and revenge of others not possessing the ONE TRUE RELIGION. I don't see see this ever ending.
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I am not a religious person in the traditional sense. I do not believe there is an omnipotent and omminicent entity watching over this or any other planet. I believe that the only forces that can govern our collective survival is our ability to reason and a self-imposed "humanitarian moral order." Without these efforts we will not survive.
If I WERE religious man this the one prayer I would offer:
"Dear GOD, please provide more common sense and humanity to the human race. End the constant selfishness offered in your name. Make a new visitation and UPDATE your mission statement. Tell us WHY we are here. And if there is a "damnation clause" in our "so-called contract" please make sure that everyone who kills another human being in your name receive instant and full punishment." (work in progress)
Sadly the history of mankind has been a struggle of one group of believers to impose their WILL on others and enriched with hatred and revenge of others not possessing the ONE TRUE RELIGION. I don't see see this ever ending.
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Monday, July 17, 2006
GAMBLING.....
A recent article revealed that "Students with computers can wager 24/7 from their dorm rooms on unregulated, offshore Internet poker sites. And they do. Nearly 600,000 youths under age 22 gamble online every week, and online wagering among college students has increased fivefold since 2002, according to a study last year by the University of Pennsylvania's Annenberg Public Policy Center.
Not surprisingly, more young people are suffering social ills such as compulsive gambling, overspending and social isolation as they start playing video games for real money."
Parents need to pay particular attention to the actions of their children - especially with this recent addiction.
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Not surprisingly, more young people are suffering social ills such as compulsive gambling, overspending and social isolation as they start playing video games for real money."
Parents need to pay particular attention to the actions of their children - especially with this recent addiction.
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Tuesday, July 11, 2006
IMPORTANCE OF BEING OBSERVANT......
I have been working on "rehabbing" my home so I have not found much time to work on my "life lessons." But today as I went to the local Home Depot checkout with a number of purchases the cashier told the purchase was "$278". I did a quick mental check of the monitor purchase list and it did not come close to that amount. I asked the clerk to check the items out again as I did not agree with the total. A second checkout resulted in "$172."
I mention this incident because it is very important to be financially "observant" whenever you make a purchase.
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I have been working on "rehabbing" my home so I have not found much time to work on my "life lessons." But today as I went to the local Home Depot checkout with a number of purchases the cashier told the purchase was "$278". I did a quick mental check of the monitor purchase list and it did not come close to that amount. I asked the clerk to check the items out again as I did not agree with the total. A second checkout resulted in "$172."
I mention this incident because it is very important to be financially "observant" whenever you make a purchase.
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Saturday, July 08, 2006
PRACTICAL ADVICE....
A neighbor asked me why her lawnmower had such a hard time starting. I looked at the mower and noted she had a large gas container she used for the fuel. When I asked her how OLD was the gas she replied it was from last year.
Gasoline is made for "seasonal" use - it has a slightly different composition for each season. In addition, gas left to set out will "separate" by the seasons. In your "gas device" this separate often deposits sediments in the carburator making it nearly impossible to start unless you clean the carburator.
There is a simple method that prevents this from happening. Purchase a bottle of "STA-BILE" or some similar fuel stabilitzer. Use as directed. Odds are you will have minimal starting problems.
--------------------------------
A neighbor asked me why her lawnmower had such a hard time starting. I looked at the mower and noted she had a large gas container she used for the fuel. When I asked her how OLD was the gas she replied it was from last year.
Gasoline is made for "seasonal" use - it has a slightly different composition for each season. In addition, gas left to set out will "separate" by the seasons. In your "gas device" this separate often deposits sediments in the carburator making it nearly impossible to start unless you clean the carburator.
There is a simple method that prevents this from happening. Purchase a bottle of "STA-BILE" or some similar fuel stabilitzer. Use as directed. Odds are you will have minimal starting problems.
--------------------------------
Wednesday, July 05, 2006
ENERGY CONSERVATION.....
Being retired I have taken more time to constantly "insulate" our home and practice "energy conservation." Each small effort produces a saving over the long haul. My only regret is not doing this when I was younger.
Today's conversation effort was to insulate the hot water heater.
http://www.eere.energy.gov/consumer/your_home/water_heating/index.cfm/mytopic=13070
"Insulate Your Water Heater Tank for Energy Savings
Unless your water heater's storage tank already has a high R-value of insulation (at least R-24), adding insulation to it can reduce standby heat losses by 25%–45%. This will save you around 4%–9% in water heating costs.
If you don't know your water heater tank's R-value, touch it. A tank that's warm to the touch needs additional insulation.
Insulating your storage water heater tank is fairly simple and inexpensive, and it will pay for itself in about a year. You can find pre-cut jackets or blankets available from around $17–$20 (Lowes $16.85). Choose one with an insulating value of at least R-8. Some utilities sell them at low prices, offer rebates, and even install them at a low or no cost.
Insulating an Electric Water Heater Tank
You can probably install an insulating pre-cut jacket or blanket on your electric water heater tank yourself. Read and follow the directions carefully. Leave the thermostat access panel(s) uncovered. Don't set the thermostat above 130ºF on electric water heater with an insulating jacket or blanket—the wiring may overheat.
You also might consider placing a piece of rigid insulation—a bottom board— under the tank of your electric water heater. This will help prevent heat loss into the floor, saving another 4%–9% of water heating energy. It's best done when installing a new water heater.
Insulating a Gas Water Heater Tank
The installation of insulating blankets or jackets on gas and oil-fired water heater tanks is more difficult than those for electric water heater tanks. It's best to have a qualified plumbing and heating contractor add the insulation. If you want to install it yourself, read and follow the directions very carefully. Keep the jacket or blanket away from the drain at the bottom and the flue at the top. Make sure the airflow to the burner isn't obstructed. Leave the thermostat uncovered, and don't insulate the top of a gas water heater tank—the insulation is combustible and can interfere with the draft diverter."
---------------------------------------
Being retired I have taken more time to constantly "insulate" our home and practice "energy conservation." Each small effort produces a saving over the long haul. My only regret is not doing this when I was younger.
Today's conversation effort was to insulate the hot water heater.
http://www.eere.energy.gov/consumer/your_home/water_heating/index.cfm/mytopic=13070
"Insulate Your Water Heater Tank for Energy Savings
Unless your water heater's storage tank already has a high R-value of insulation (at least R-24), adding insulation to it can reduce standby heat losses by 25%–45%. This will save you around 4%–9% in water heating costs.
If you don't know your water heater tank's R-value, touch it. A tank that's warm to the touch needs additional insulation.
Insulating your storage water heater tank is fairly simple and inexpensive, and it will pay for itself in about a year. You can find pre-cut jackets or blankets available from around $17–$20 (Lowes $16.85). Choose one with an insulating value of at least R-8. Some utilities sell them at low prices, offer rebates, and even install them at a low or no cost.
Insulating an Electric Water Heater Tank
You can probably install an insulating pre-cut jacket or blanket on your electric water heater tank yourself. Read and follow the directions carefully. Leave the thermostat access panel(s) uncovered. Don't set the thermostat above 130ºF on electric water heater with an insulating jacket or blanket—the wiring may overheat.
You also might consider placing a piece of rigid insulation—a bottom board— under the tank of your electric water heater. This will help prevent heat loss into the floor, saving another 4%–9% of water heating energy. It's best done when installing a new water heater.
Insulating a Gas Water Heater Tank
The installation of insulating blankets or jackets on gas and oil-fired water heater tanks is more difficult than those for electric water heater tanks. It's best to have a qualified plumbing and heating contractor add the insulation. If you want to install it yourself, read and follow the directions very carefully. Keep the jacket or blanket away from the drain at the bottom and the flue at the top. Make sure the airflow to the burner isn't obstructed. Leave the thermostat uncovered, and don't insulate the top of a gas water heater tank—the insulation is combustible and can interfere with the draft diverter."
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Sunday, July 02, 2006
LIFE EXPECTANCY....
"In 1900, the average life expectancy was 50 and the major causes of death were infant mortality, malnutrition, infection and trauma, he said. By 2000, life expectancy had climbed to near 80 and causes of death shifted to chronic conditions such as heart disease and cancer."
This FACT of life is often over-looked in individual retirement plans. The fact of life is - your retirement income will probably not keep pace with the cost of living. You can live "too long" and not have adequate resources to pay for unexpected chronic health conditions.
Plan carefully for the future....
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"In 1900, the average life expectancy was 50 and the major causes of death were infant mortality, malnutrition, infection and trauma, he said. By 2000, life expectancy had climbed to near 80 and causes of death shifted to chronic conditions such as heart disease and cancer."
This FACT of life is often over-looked in individual retirement plans. The fact of life is - your retirement income will probably not keep pace with the cost of living. You can live "too long" and not have adequate resources to pay for unexpected chronic health conditions.
Plan carefully for the future....
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Monday, June 26, 2006
YOUR FUTURE JOB....
You need to ask yourself whether your job will be affected in the future by the "China" economic revolution. In the new
Chinese economy workers make about .35 cents an hour and no benefits. What are you making? Always keep an eye over your shoulder and constantly update your skill sets.
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You need to ask yourself whether your job will be affected in the future by the "China" economic revolution. In the new
Chinese economy workers make about .35 cents an hour and no benefits. What are you making? Always keep an eye over your shoulder and constantly update your skill sets.
----------------------
Friday, June 23, 2006
How the Monthly Mentality Messes Up Your Wealth
by Laura Rowley
I recently read an article by Laura Rowley on “How the Month Mentality Messes Up Your Wealth” and came to reflect on some distant family members who “fit the bill.” I strongly recommend you read the summary below and make any necessary corrections in your lifestyle so your “future retirement” willl work.
In summary:
“There are increasingly more people who look at only the “monthly payment” and not the total cost of ownership. “
“From housing to autos to material goods, Americans are bombarded with the notion that if you can afford the monthly payment, you can afford the thing you're buying. What's never discussed is the princely opportunity cost of living on borrowed money -- and how devastating the monthly mentality can be to long-term wealth.”
“The philosophy is obvious in the home market as more buyers stretch to get their piece of the American dream. According to a recent Harvard study, in just two years, interest-only loans went from a relatively obscure product to an estimated 20 percent of the dollar value of all loans and 37 percent of adjustable-rate loans originated last year. Option ARMs, in which the borrowers can pay even less than the monthly interest due on the loan and roll the balance forward, accounted for nearly 10 percent of last year's loan originations.”
Mortgage lenders are now offering new-fangled option ARMs to defer the pain for borrowers whacked by paying principal for the first time in a rising interest-rate environment,. IndyMac Bancorp., for instance, offers an extended fixed-rate period before interest charges reset, and the ability to defer repayment of principal for a longer period of time. IndyMac's head of mortgage products says it's the bank's fastest-growing new product. “
"Manageable" Debt Levels?
The Federal Reserve's Flow of Funds report, as homeowners sucked out more equity out of their properties amid rising real estate values. Overall, household debt rose at an annual rate of 11.6 percent, up 0.5 percent from the previous quarter.
Mortgage delinquencies declined slightly in the first quarter, as the strong economy and job growth offset rising interest rates and higher energy prices. Some 4.41 percent of residential mortgages were delinquent, down 0.29 percent from the previous quarter, according to the Mortgage Bankers Association. About 1 percent of mortgages are in foreclosure, virtually flat from the previous quarter.
“Maybe I'm a little behind the times, but I have a different definition of "managing your personal finances well". It would include things like paying off your mortgage early -- vs. avoiding delinquency and foreclosure. It would include saving for larger purchases in advance and paying cash -- vs. buying items with "manageable" credit-card debt.
The Fed reported that consumer credit soared $10.6 billion in April, to a record $2.170 trillion -- more than three times Wall Street estimates. Credit grew at a seasonally adjusted annual rate of 5.9 percent -- the fastest pace in a year. (The data exclude home mortgages and other real estate-secured loans.)
Upside-Down Borrowers
The monthly mentality is also evident in the auto market. Some 29 percent of U.S. vehicle buyers were "upside-down" in their loans in May -- meaning they owe more than the trade-in value of their cars. That's the second-highest level in four years, according to Jesse Toprak, executive director of industry analysis for Edmunds.com. The average amount of negative equity was $3,789.
The reason? Borrowers who otherwise can't afford the cars they want are opting for mega-term loans: In January, 2002, the average loan term was 57.3 months. Now it's 63.6 months. Toprak says 72 months is becoming the norm.
"Unfortunately, we still often see people going to the dealer and saying, 'I want to pay $400 a month,' despite the fact that it's a really bad way to buy a car," Toprak explains. "Extended terms become the only way to get the car they want. They don't see the consequences two years down the road."
Toprak says he's seen a new trend in leasing among upside-down borrowers because it allows them to finance up to 115% of the vehicle's sticker price, whereas a traditional purchase only provides 100% financing. Thus, borrowers can trade in their vehicle and add their negative equity to the lease. It results in higher monthly payments, but at the end of the lease the negative equity is gone. Of course, they don't own anything at the end of the lease, either.
Coming Home to Roost
The monthly mentality certainly opens the door to a more comfortable monthly life. But I suspect that deep down, it inspires a level of discomfort about what may happen if the monthly nut can't be paid.
And here's where the monthly mentality finally comes home to roost: When you can't work anymore. A new study from the Center for Retirement Research at Boston College found that 43 percent of working-age households are at risk of not having enough to maintain their standard of living in retirement. Pensions are disappearing, people are living longer, and savings rates are weak. In 2004, the typical household head approaching retirement had only $60,000 in 401(k) and IRA accounts, which translates into less than $400 per month in retirement, the study noted.
The good news: This situation can be turned around if people work until age 67, rather than retiring at 65 or earlier, and if they save more -- putting aside even 3 percent of income can make a difference over time. But making that happen isn't going to be easy in a culture that glorifies the monthly mentality.”
Thank you Laura for this important life-style reminder.....
-----------------------------------
by Laura Rowley
I recently read an article by Laura Rowley on “How the Month Mentality Messes Up Your Wealth” and came to reflect on some distant family members who “fit the bill.” I strongly recommend you read the summary below and make any necessary corrections in your lifestyle so your “future retirement” willl work.
In summary:
“There are increasingly more people who look at only the “monthly payment” and not the total cost of ownership. “
“From housing to autos to material goods, Americans are bombarded with the notion that if you can afford the monthly payment, you can afford the thing you're buying. What's never discussed is the princely opportunity cost of living on borrowed money -- and how devastating the monthly mentality can be to long-term wealth.”
“The philosophy is obvious in the home market as more buyers stretch to get their piece of the American dream. According to a recent Harvard study, in just two years, interest-only loans went from a relatively obscure product to an estimated 20 percent of the dollar value of all loans and 37 percent of adjustable-rate loans originated last year. Option ARMs, in which the borrowers can pay even less than the monthly interest due on the loan and roll the balance forward, accounted for nearly 10 percent of last year's loan originations.”
Mortgage lenders are now offering new-fangled option ARMs to defer the pain for borrowers whacked by paying principal for the first time in a rising interest-rate environment,. IndyMac Bancorp., for instance, offers an extended fixed-rate period before interest charges reset, and the ability to defer repayment of principal for a longer period of time. IndyMac's head of mortgage products says it's the bank's fastest-growing new product. “
"Manageable" Debt Levels?
The Federal Reserve's Flow of Funds report, as homeowners sucked out more equity out of their properties amid rising real estate values. Overall, household debt rose at an annual rate of 11.6 percent, up 0.5 percent from the previous quarter.
Mortgage delinquencies declined slightly in the first quarter, as the strong economy and job growth offset rising interest rates and higher energy prices. Some 4.41 percent of residential mortgages were delinquent, down 0.29 percent from the previous quarter, according to the Mortgage Bankers Association. About 1 percent of mortgages are in foreclosure, virtually flat from the previous quarter.
“Maybe I'm a little behind the times, but I have a different definition of "managing your personal finances well". It would include things like paying off your mortgage early -- vs. avoiding delinquency and foreclosure. It would include saving for larger purchases in advance and paying cash -- vs. buying items with "manageable" credit-card debt.
The Fed reported that consumer credit soared $10.6 billion in April, to a record $2.170 trillion -- more than three times Wall Street estimates. Credit grew at a seasonally adjusted annual rate of 5.9 percent -- the fastest pace in a year. (The data exclude home mortgages and other real estate-secured loans.)
Upside-Down Borrowers
The monthly mentality is also evident in the auto market. Some 29 percent of U.S. vehicle buyers were "upside-down" in their loans in May -- meaning they owe more than the trade-in value of their cars. That's the second-highest level in four years, according to Jesse Toprak, executive director of industry analysis for Edmunds.com. The average amount of negative equity was $3,789.
The reason? Borrowers who otherwise can't afford the cars they want are opting for mega-term loans: In January, 2002, the average loan term was 57.3 months. Now it's 63.6 months. Toprak says 72 months is becoming the norm.
"Unfortunately, we still often see people going to the dealer and saying, 'I want to pay $400 a month,' despite the fact that it's a really bad way to buy a car," Toprak explains. "Extended terms become the only way to get the car they want. They don't see the consequences two years down the road."
Toprak says he's seen a new trend in leasing among upside-down borrowers because it allows them to finance up to 115% of the vehicle's sticker price, whereas a traditional purchase only provides 100% financing. Thus, borrowers can trade in their vehicle and add their negative equity to the lease. It results in higher monthly payments, but at the end of the lease the negative equity is gone. Of course, they don't own anything at the end of the lease, either.
Coming Home to Roost
The monthly mentality certainly opens the door to a more comfortable monthly life. But I suspect that deep down, it inspires a level of discomfort about what may happen if the monthly nut can't be paid.
And here's where the monthly mentality finally comes home to roost: When you can't work anymore. A new study from the Center for Retirement Research at Boston College found that 43 percent of working-age households are at risk of not having enough to maintain their standard of living in retirement. Pensions are disappearing, people are living longer, and savings rates are weak. In 2004, the typical household head approaching retirement had only $60,000 in 401(k) and IRA accounts, which translates into less than $400 per month in retirement, the study noted.
The good news: This situation can be turned around if people work until age 67, rather than retiring at 65 or earlier, and if they save more -- putting aside even 3 percent of income can make a difference over time. But making that happen isn't going to be easy in a culture that glorifies the monthly mentality.”
Thank you Laura for this important life-style reminder.....
-----------------------------------
Tuesday, June 20, 2006
Life's Potholes....
Periodically life reminds you of the frality of life with "potholes" in your life journey. There is seldom a warning of the "event(s)" nor ever the "understanding" you expect from others.
That being said, life goes on....and what you have learned from the last "pothole" should benefit you at the next pothole but only if your astute, calm, and perceptive.
-----------------------
Periodically life reminds you of the frality of life with "potholes" in your life journey. There is seldom a warning of the "event(s)" nor ever the "understanding" you expect from others.
That being said, life goes on....and what you have learned from the last "pothole" should benefit you at the next pothole but only if your astute, calm, and perceptive.
-----------------------
Sunday, June 18, 2006
ANOTHER BUSH INHUMANITY PROPOSAL
LET 'EM EAT....
I have always considered that President George Bush one of the most selfish Presidents in our country's history. The following article from the AARP merely illustrates one such trait.
Let 'em Eat…a Balanced Budget
Surplus food for low-income older Americans is on the federal budget chopping block.
By Susan Q. Stranahan
June 2006
When her food stamps run out each month, Rita Mash of Nelsonville, Ohio, turns to a box of surplus food delivered under a federal program. With the canned vegetables and fruit, cheese, cereal, peanut butter and evaporated milk, she feeds her husband and four grandchildren. "This way, we are able to have groceries for the last week of the month," Mash says. "This program is vital to us."
Yet President Bush's budget proposals for fiscal 2007 would eliminate the program (the Commodity Supplemental Food Program, or CSFP, started in 1968), which serves 420,000 low-income older Americans in 32 states and the District of Columbia. Total projected savings: $107 million—out of a $2.8 trillion budget.
"It's unconscionable," says Lisa Hamler-Fugitt, director of the Ohio Association of Second Harvest Foodbanks. Her group and other charities deliver 12,000 food boxes a month and have a waiting list of thousands.
"If we can't sustain these seniors in independent living, they're going to move into nursing homes and increase the costs to government," Hamler-Fugitt says. "Do we want to give them CSFP food boxes valued at about $150 a year or spend $50,000 a year to put them in a nursing home?"
The Bush administration says it wants to eliminate the food distribution program, which also helps low-income women and young children, because its effectiveness has not been demonstrated and because it overlaps with the food stamp and WIC (Women, Infants, and Children) programs. Instead, more of the older recipients will be encouraged to apply for food stamps if they don't already receive them.
The administration's claim that food stamps will replace the surplus food is "a poor excuse" for eliminating the program, says Richard Noriega of the South Texas Food Bank, which has about 5,000 people enrolled in CSFP.
Noriega estimates the retail value of the monthly food deliveries at $55 a box. The monthly food stamp benefit for an older individual is less than $20, often as little as $10, and the program has more restrictive eligibility requirements. In addition, Noriega says, the recipients "then have to pay someone $10 for gas to get them to the grocery store to buy the food."
The consternation is shared by Sen. Herb Kohl of Wisconsin, the ranking Democrat on the Senate Appropriations Subcommittee on Agriculture. "It really does come under the category, in the most extreme way, of balancing the budget on the backs of those who are most needy," Kohl said earlier this year after Bush's plan became public.
Will Congress go along with Bush's proposal? Not likely. In early budget deliberations, the House Appropriations Committee voted to increase funding for CSFP to $118 million.
----------------------------------
LET 'EM EAT....
I have always considered that President George Bush one of the most selfish Presidents in our country's history. The following article from the AARP merely illustrates one such trait.
Let 'em Eat…a Balanced Budget
Surplus food for low-income older Americans is on the federal budget chopping block.
By Susan Q. Stranahan
June 2006
When her food stamps run out each month, Rita Mash of Nelsonville, Ohio, turns to a box of surplus food delivered under a federal program. With the canned vegetables and fruit, cheese, cereal, peanut butter and evaporated milk, she feeds her husband and four grandchildren. "This way, we are able to have groceries for the last week of the month," Mash says. "This program is vital to us."
Yet President Bush's budget proposals for fiscal 2007 would eliminate the program (the Commodity Supplemental Food Program, or CSFP, started in 1968), which serves 420,000 low-income older Americans in 32 states and the District of Columbia. Total projected savings: $107 million—out of a $2.8 trillion budget.
"It's unconscionable," says Lisa Hamler-Fugitt, director of the Ohio Association of Second Harvest Foodbanks. Her group and other charities deliver 12,000 food boxes a month and have a waiting list of thousands.
"If we can't sustain these seniors in independent living, they're going to move into nursing homes and increase the costs to government," Hamler-Fugitt says. "Do we want to give them CSFP food boxes valued at about $150 a year or spend $50,000 a year to put them in a nursing home?"
The Bush administration says it wants to eliminate the food distribution program, which also helps low-income women and young children, because its effectiveness has not been demonstrated and because it overlaps with the food stamp and WIC (Women, Infants, and Children) programs. Instead, more of the older recipients will be encouraged to apply for food stamps if they don't already receive them.
The administration's claim that food stamps will replace the surplus food is "a poor excuse" for eliminating the program, says Richard Noriega of the South Texas Food Bank, which has about 5,000 people enrolled in CSFP.
Noriega estimates the retail value of the monthly food deliveries at $55 a box. The monthly food stamp benefit for an older individual is less than $20, often as little as $10, and the program has more restrictive eligibility requirements. In addition, Noriega says, the recipients "then have to pay someone $10 for gas to get them to the grocery store to buy the food."
The consternation is shared by Sen. Herb Kohl of Wisconsin, the ranking Democrat on the Senate Appropriations Subcommittee on Agriculture. "It really does come under the category, in the most extreme way, of balancing the budget on the backs of those who are most needy," Kohl said earlier this year after Bush's plan became public.
Will Congress go along with Bush's proposal? Not likely. In early budget deliberations, the House Appropriations Committee voted to increase funding for CSFP to $118 million.
----------------------------------
Saturday, June 17, 2006
Instruction....
Teachers....
Everyone who remembers his own educational experience remember teachers, not methods and instructional techniques.
Everyone who remembers his own educational experience remember teachers, not methods and instructional techniques.
Wednesday, June 14, 2006
"Theory of Learning Immunization"
A BASIC CONCEPT OF LEARNING (Training)....
I used to have a supervisor who constantly fought with his superiors to spend more on staff training and LESS on hardware. Unfortunately, his supervisors could not grasp the importance of this concept.
His supervisors believed in the "Theory of Learning Immunization" - that is, if you provide a "training" session (shot) that should provide a long-term solution to the probelm.
As any classroom teacher can tell you (from experience) training and learning is a long drawn out process - it is not immunization.
All "training" requires a well thought out plan with frequent "retraining" on a regular basis.
-----------------------
I used to have a supervisor who constantly fought with his superiors to spend more on staff training and LESS on hardware. Unfortunately, his supervisors could not grasp the importance of this concept.
His supervisors believed in the "Theory of Learning Immunization" - that is, if you provide a "training" session (shot) that should provide a long-term solution to the probelm.
As any classroom teacher can tell you (from experience) training and learning is a long drawn out process - it is not immunization.
All "training" requires a well thought out plan with frequent "retraining" on a regular basis.
-----------------------
Tuesday, June 06, 2006
MARRIAGE....
Is certainly one on the most important choices you will make in your life. The selection of a mate not only is a great "emotional" decision but an economic one as well.
A relative is in midst of making elaborate wedding plans and unfortunately has decided to place themselves into future bankrupcy by "borrowing" for this event.
It is always interesting that people who have very little will "over-compensate" in their "public-display" with expensive events, cars, etc. attempting to win "public-recognition."
Live within your income, be consistent, - and start early!
--------------------------
Is certainly one on the most important choices you will make in your life. The selection of a mate not only is a great "emotional" decision but an economic one as well.
A relative is in midst of making elaborate wedding plans and unfortunately has decided to place themselves into future bankrupcy by "borrowing" for this event.
It is always interesting that people who have very little will "over-compensate" in their "public-display" with expensive events, cars, etc. attempting to win "public-recognition."
Live within your income, be consistent, - and start early!
--------------------------
Thursday, June 01, 2006
SWEATING THE SMALL STUFF....
I have always marveled at how people can ignore the "small stuff" in life. It is the accumulation of many "small things" which become the "big things" that overwhelm people.
I do "sweat" the "small stuff" everyday of my life and make no amends for it - neither should you.
--------------------
I have always marveled at how people can ignore the "small stuff" in life. It is the accumulation of many "small things" which become the "big things" that overwhelm people.
I do "sweat" the "small stuff" everyday of my life and make no amends for it - neither should you.
--------------------
BACKING UP.....
for years I kept a favorite IT cartoon on my wall. It showed two IT managers in conversation at a party. The one IT manager said to the other "You know you really have to have a backup." In back of him were TWO WIVES, TWO DOGS, TWO CHILDREN, TWO CATS.....
I mention this because even after retirement (from IT) I periodically have people call me seeking advice about their problems. And while I always direct them to their HELP DESK I always smile because in most cases PREVENTION on their parts would have saved them their immediate grief.
Yesterday a friend called and told me that all her e-mail had disappeared. While I told her it COULD be reconstructed (via her Help Desk) SHE needed to be more proactive in the future. I steered her to established an email account at Yahoo or Google to forward "copies" of all her correspondence/files. No matter what IT people tell you "stuff happens" and it will always be at a time you need it to happen.
---------------------------------
for years I kept a favorite IT cartoon on my wall. It showed two IT managers in conversation at a party. The one IT manager said to the other "You know you really have to have a backup." In back of him were TWO WIVES, TWO DOGS, TWO CHILDREN, TWO CATS.....
I mention this because even after retirement (from IT) I periodically have people call me seeking advice about their problems. And while I always direct them to their HELP DESK I always smile because in most cases PREVENTION on their parts would have saved them their immediate grief.
Yesterday a friend called and told me that all her e-mail had disappeared. While I told her it COULD be reconstructed (via her Help Desk) SHE needed to be more proactive in the future. I steered her to established an email account at Yahoo or Google to forward "copies" of all her correspondence/files. No matter what IT people tell you "stuff happens" and it will always be at a time you need it to happen.
---------------------------------
Tuesday, May 30, 2006
WEIGHING ALL YOUR OPTIONS....
I recently decided to paint (stain) my back fence. I made the usual trip to Lowes/Home Depot to shop for stains. In both cases you cannot purchase anything less than a gallon by selecting a "color" from a color chart. After I purchased a "gallon" for $27.00 I decided I didn't like the way in went on - but you can't return it.
On an impulse I stopped by a small local paint store which I had always avoided because I thought the prices were too high. I asked the owner if there were any smaller amount I could purchase for a test. The owner told me he could be glad to get me a sample (in fact offered me two small half-pints.)
Lesson learned: Sometimes "more is less." Weight ALL your options carefully before you make a decision.
------------------------------
I recently decided to paint (stain) my back fence. I made the usual trip to Lowes/Home Depot to shop for stains. In both cases you cannot purchase anything less than a gallon by selecting a "color" from a color chart. After I purchased a "gallon" for $27.00 I decided I didn't like the way in went on - but you can't return it.
On an impulse I stopped by a small local paint store which I had always avoided because I thought the prices were too high. I asked the owner if there were any smaller amount I could purchase for a test. The owner told me he could be glad to get me a sample (in fact offered me two small half-pints.)
Lesson learned: Sometimes "more is less." Weight ALL your options carefully before you make a decision.
------------------------------
Monday, May 29, 2006
HAVING PROTECTION DOES NOT MEAN SOMEONE WILL USE IT.....
There is a mind set among many people that "bad things happen" to other people - but not to them. Three interesting statistics:
One in three people do not wear their seatbelts.
One in three POLICE OFFICERS do not wear their bullet proof vest.
About one-third of teenagers use no protection for sex at all.
and the list goes on.....
Lesson learned: Not to be part of the one-third of the population that ignores safety and health considerations.
------------------
There is a mind set among many people that "bad things happen" to other people - but not to them. Three interesting statistics:
One in three people do not wear their seatbelts.
One in three POLICE OFFICERS do not wear their bullet proof vest.
About one-third of teenagers use no protection for sex at all.
and the list goes on.....
Lesson learned: Not to be part of the one-third of the population that ignores safety and health considerations.
------------------
Saturday, May 27, 2006
KEEPING THINGS IN PERSPECTIVE........
THOUGHT OF THE DAY:
"For all our conceits about being the center of the universe, we live in a routine planet of a humdrum star stuck away in an obscure corner ... on an unexceptional galaxy which is one of about 100 billion galaxies. That is the fundamental fact of the universe we inhabit, and it is very good for us to understand that." - Carl Sagan
-----------------------------
THOUGHT OF THE DAY:
"For all our conceits about being the center of the universe, we live in a routine planet of a humdrum star stuck away in an obscure corner ... on an unexceptional galaxy which is one of about 100 billion galaxies. That is the fundamental fact of the universe we inhabit, and it is very good for us to understand that." - Carl Sagan
-----------------------------
FRAUD IS A CONSTANT IN LIFE.......
I visited a Civil War show recently. A number of participants had "artifacts" for sale. When I went to a table one man had a group of Indian artifacts (arrowheads, spear points, and hatchets.) As I starred at the objects contemplating perhaps a purchase the vendor turned to me and said "Now those are REAL artifacts."
I was slightly taken back by the comment - wondering WHO would have the time to make these from a contemporary stone. But evidently there is a "niche" market for counterfeiting in just about every area of collectible. The vendor explained that just about every Indian artifact worth money was being turned out by third world laborers.
As I continued through the show there was also a display of "confederate" artillery fuses that were also "counterfeit."
Another vendor was giving a lesson on how to spot "repro" Confederate flags.
The point is: Never spend your resources on items you don't have absolute faith in the knowledge and integrity of the seller.
----------------------------
I visited a Civil War show recently. A number of participants had "artifacts" for sale. When I went to a table one man had a group of Indian artifacts (arrowheads, spear points, and hatchets.) As I starred at the objects contemplating perhaps a purchase the vendor turned to me and said "Now those are REAL artifacts."
I was slightly taken back by the comment - wondering WHO would have the time to make these from a contemporary stone. But evidently there is a "niche" market for counterfeiting in just about every area of collectible. The vendor explained that just about every Indian artifact worth money was being turned out by third world laborers.
As I continued through the show there was also a display of "confederate" artillery fuses that were also "counterfeit."
Another vendor was giving a lesson on how to spot "repro" Confederate flags.
The point is: Never spend your resources on items you don't have absolute faith in the knowledge and integrity of the seller.
----------------------------
Friday, May 26, 2006
LESSONS FROM MY FATHER....
I am reading the autobiogaphy of Marcus Aurelius (Roman Emperor.) One of the chapters dwelt on the childhood "lessons he learned from his "father" and family members. The thought of this has prompted me to reflect on what I have learned...
This list will be on-going and subject to revisions:
- Whatever your occupation always have an eye on the future - be prepared for any changes in technology that may affect your livelihood. Diverse skills offer you a better chance of survival.
(When my father took me to college he also began my "education" as a "meat cutter." The occupation had nothing to do with my professional education but it did prove to be an immense financial security blanket for the next 20 years of my life. It likewise taught me many valuable cooking and grocery shopping skills and most important of all - how to deal with people.)
- As a new "meat-cutter" he reminded me that because I was "new" and had less than perfect meat-cutting skills I had to have an "edge." That edge was to convince my employeers that I was always working hard and had their interests at heart. For example, whenever I worked at the meat counter I would always have a clean rag and would wipe down the counters, cases, scales, etc. whenever there was "spare" time. I never forgot that advice.....
- Be friendly and courteous to everyone (no matter what their title and authority). "What goes up can also go down."
----------------------------------
------------------------
I am reading the autobiogaphy of Marcus Aurelius (Roman Emperor.) One of the chapters dwelt on the childhood "lessons he learned from his "father" and family members. The thought of this has prompted me to reflect on what I have learned...
This list will be on-going and subject to revisions:
- Whatever your occupation always have an eye on the future - be prepared for any changes in technology that may affect your livelihood. Diverse skills offer you a better chance of survival.
(When my father took me to college he also began my "education" as a "meat cutter." The occupation had nothing to do with my professional education but it did prove to be an immense financial security blanket for the next 20 years of my life. It likewise taught me many valuable cooking and grocery shopping skills and most important of all - how to deal with people.)
- As a new "meat-cutter" he reminded me that because I was "new" and had less than perfect meat-cutting skills I had to have an "edge." That edge was to convince my employeers that I was always working hard and had their interests at heart. For example, whenever I worked at the meat counter I would always have a clean rag and would wipe down the counters, cases, scales, etc. whenever there was "spare" time. I never forgot that advice.....
- Be friendly and courteous to everyone (no matter what their title and authority). "What goes up can also go down."
----------------------------------
------------------------
Wednesday, May 24, 2006
WILLS AND TRUSTS......
We are in the midst of making a major conversion of our existing will to a TRUST. (Don't worry my children you will still get your inheritance - and even more because of the TRUST.)
A Trust costs more than a Will ($1500-10,000 depending on your financial complexity) but offers a major advantage of keeping your assets out of PROBATE COURT and prescribed state mandated fee schedules far more than a trust fee. There are some companies which offer "trust forms" for do-it-your-selfers but do you really want to speculate your finances to a $29.95 CD and out-of-state lawyer?
The State of Missouri (where we reside) has changed Trust laws this past year and as a result virtually every existing family trust needs to be reexamined.
Everyone needs to examine their PLANS for the "Rites of Passage." Everyone is going to die - it is just a matter of when.
Even if a Trust is NOT in your plan you do need a WILL or else the courts will decide for you!
----------------------------
We are in the midst of making a major conversion of our existing will to a TRUST. (Don't worry my children you will still get your inheritance - and even more because of the TRUST.)
A Trust costs more than a Will ($1500-10,000 depending on your financial complexity) but offers a major advantage of keeping your assets out of PROBATE COURT and prescribed state mandated fee schedules far more than a trust fee. There are some companies which offer "trust forms" for do-it-your-selfers but do you really want to speculate your finances to a $29.95 CD and out-of-state lawyer?
The State of Missouri (where we reside) has changed Trust laws this past year and as a result virtually every existing family trust needs to be reexamined.
Everyone needs to examine their PLANS for the "Rites of Passage." Everyone is going to die - it is just a matter of when.
Even if a Trust is NOT in your plan you do need a WILL or else the courts will decide for you!
----------------------------
Tuesday, May 23, 2006
FEELING SAFE?
In the entire 6 years of the Second World War we exploded about 2 Mega tons of TNT. Today we have over 10,000 Mega tons of TNT held in nuclear weapons threatening our "cosmic" end.
At this moment there are about 15-20 wars going on. Will one of these events precipitate our demise?
-----------------------
In the entire 6 years of the Second World War we exploded about 2 Mega tons of TNT. Today we have over 10,000 Mega tons of TNT held in nuclear weapons threatening our "cosmic" end.
At this moment there are about 15-20 wars going on. Will one of these events precipitate our demise?
-----------------------
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