The End

It's nearly over - 2008. The old man will be replaced by the baby of 2009.

Here's hoping 2009 is financially an improvement over 2008 for all of us. Let's keep jobs and make more. Let's not lose our hope in the future. Let's pray for our new president as we enter the unknown tax increases, government bailouts, and increased social programs that bind but do not encourage.

Celebrate 2008 or celebrate the entry of 2009 but do it all reasonably. Bob and I stay off the roads this one evening of the year. We leave the drunk driving to the amateurs. Make your plans wisely and enjoy.

'til later

Doing Our Part

Bob's 2000 Olds has cost us several major repairs this year. The latest is a part that will be difficult to find because that car has gone the way of the Plymouth and Edsel.

Recently there have been some financial voices calling for calm and confidence. Our economy does not need a panic and it does not need $ parked on the sidelines.

We have decided to proceed with making our IRA contributions back into the stock market. Plus we have decided to spend $ like we normally would.

We purchased a Honda Odyssey in March to replace my 1998 Ford Explorer. That left Bob driving his '00 Olds Intrique. Our plan was to replace it in early to mid-2009. He was set on a Toyota Avalon.

Yesterday we did our part to support the economy and purchased a slightly used 2008 Honda Accord. The trade-in allowed for the old white sedan barely covered the repairs of 2008 but it is time to move on.

You can try to criticize us for not buying American but this car was made by Americans, transported by Americans, and sold by Americans. The car will serve us for years economically without plugging it in or trying to find a natural gas source every 170 miles.

This morning Bob will unabashedly pull his new used silver car out onto the open road. Happy trails.

'til later

Caroline Kennedy

I heard a recording of Caroline Kennedy (she has another last name but does not claim it now) speaking the other day regarding why she wanted to represent the State of New York in the US Senate filling H. Rodham's seat.

If you hear her, count the "you know"s. I was not impressed. No one could have been.

She lists one of her qualifications as having raised her children. I suddenly felt I too could lead this great nation through the economic mess. You know?

And "they" made fun of the leader of that small, cold, poor state of Alaska.

Let's aim higher for our leaders, please.

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Year End Things

Tomorrow Bob and I will drop off a van full of usable and clean items at Goodwill Industries. We have acquired so many things and certainly could donate more but for now we will unload some clothes, dishware, books, and linens.

Tomorrow we will visit my Quicken reports of our personal finances for 2008. We will decide regarding IRA contributions which we have until April 15 (or the day we file our 2008 taxes) to make. Our thinking is that maybe the market is near the low. Buy low. Sell high, not low.

Our little business will hold its annual meeting which is a requirement of corporations. We will distribute a chunk of the profit for the year in the form of salary and SEP-IRA contributions. Through the year Bob takes a regular monthly payroll check but the rules are that S Corp income mostly be paid out as salary.

I will cut checks for as many of the bills the corporate faces including the large American Express amount so the books will be clean going into 2009. I will set up new files for the likes of bank statements and payroll.

What can you do to clean up your books by 12/31? Can you make charitable donations? Make that state income tax payment early so the expense on Schedule A will include the payment that is due January 15.

Once I get this all done, I can reflect on the year that was 2008 and consider resolutions in the New Year.

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Gifts

I gave a calendar and I received a calendar. We all live one day at a time but we plan ahead months and possibly years for special events.

I have hung my calendar with special days marked including birthdays and holidays. Vacations are penciled in awaiting confirmation. I have noted that July 4 is a Saturday in 2009 and my brother's birthday falls on Labor Day.

Time is something we all budget. Or shall I say we all spend but may not budget. Our days contain 24 hours. We all have days that are too full and some days we set aside away from the usual demands.

Bob was a troubleshooter for a large food company for decades. His days were spent accomplishing things between urgent calls and emergency trips. He felt he got little done and worked hard to reach business goals for his boss. Now his calendar is his to fill with his consulting work. And fishing.

In 2009 how will I better budget my time? What are my goals? What about you?

'til late

Is It Over?

Is it over? All the gift giving, wrapping and unwrapping?

Do you have memories left or do you have memories and credit card debt as well? Will you face more than placing pictures in the photo album over the next months?

You are not alone. The news will be full of statistics about how dismal this buying season was. We will feel responsible for not spending more $ but it is not our responsibility. The Visa and Mastercard balances are.

Now, today, there are opportunities for great deals. If you can pay for it without using your credit card and you have wanted a pre-lit tree, they are 1/2 price now.

If you have room, stock up on wrappings, bows, and accessories. Ornaments are on sale everywhere. That Christmas sweater you have wanted will now cost much less. Christmas cards are expensive but not today. That blow up snowman for the front lawn is on sale too.

Tis the season to pick up sales without doing more debt damage.

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Gathered Around

They gathered around. The shepherds, the animals, the three wise men, the mother & father, and the angelic host.

Join me. Let's gather around the Christ child. Take a moment and focus on the wonder and miracle of the event.

The gift given. The life lived and laid down. Is this not the definition of love?

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Season's Reason

Tonight millions who normally do not worship will attend services across the land. We all go this night for our own reasons. Some out habit, some for the music, some to please loved ones, some for the peace in the hectic storm, and some to renew our faith.

A birth in an animal shed in the middle of the night. The engaged couple the only witnesses to the miracle at first. Then came the shepherds. These were working people who witnessed the angelic announcement and responded.

We know others came including foreign magistrate bearing expensive gifts. With the advantage of hindsight, we know Jesus' birth changed the world forever.

What we do with Him will change our lives and our eternity. What shall we do with Him?

'til later

Gifting

I spoke with a friend the other day and asked if she was ready for Christmas. Her response was "I have to buy for 23 people and I have only purchased 4 gifts so far."

I don't think it's a gift if you feed you "have to." I do not know why she thought she had to purchase for that many people. I do not know who all are included in her list.

Maybe she buys for friends who give to her. Maybe she feels obligated to purchase for siblings, nieces/nephews, co-workers, and bosses.

We all give gifts out of some sort of obligation or in response to gifts received. I think our true motivation should be because we want to. We desire that item for someone we love.

I am reminded of the gift received that we can do nothing about except to receive it. We can not gift in return. We can not top the giver. Our only response is to receive.

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Medical Costs Exploding

Some fortunate employees receive medical coverage covered 100% by the boss. Coverages can vary widely. Some people have dental and vision plus medical.

The last 10 years Bob worked for a large corporation, we had the privilege of paying for our medical coverage. Through his payroll we participated in one of 3 or 4 plans available and paid for eye and dental plus long term insurance.

When Bob retired and between now and when he qualifies for Medicare, we get to purchase through his pension. We do not have the option to purchase vision and dental but we have 2 or 3 levels of medical coverage available.

At $490 a month, we have $1,500 deductible per person per year which then pays 80%. We are glad to have it. We have friends who are self-employed and their coverage has higher deductibles and costs them $11,000 a year. They have had no dental or vision care for decades.

A family friend is a doctor in family practice. He says his liability coverage costs him nearly $50,000 a quarter! Plus, he has to maintain that coverage 15 years after he retires to cover any claims that could be made.

We all know the costs of medical tests and office visits and prescriptions. Few of us would consider the emergency room without pause. We go only for life saving needs knowing that the first thing they would ask is what's wrong and the second would be do you have your insurance card with you.

Thousands are seen for medical needs without coverage and pay nothing. I think they should get life saving measures. However, those who get free exams, drug samples, scans and tests, run up the costs for the rest of us. Those who are here illegally are robbing us.

It's akin to shoplifters costing vendors who pass on the loss to paying customers. Or the fact that no corporation pays income tax as those costs are merely built into their costs and passed on to their customers. If the hospital gets 2 paying customers out of 5, the expense is paid by 2 and not by 5. The costs are passed on to the payers.

Like I said, I want those with real needs to get help. I want us all aware of the facts. Those that can, do. Those who can't, abuse without consequence while the rest pay the price.

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Madness Madness

We have had a winter weather week. Schools were closed yesterday which was the last day before Christmas break. We are set for some more snow this evening followed by a blast of Canadian air that will bring temperatures down to actual single digits and wind chills below zero.

Today there are four shopping days before Christmas Eve. There are always the mad folks that leave much of their purchasing to Christmas Eve but these next 4 days crowds will form lines.

At least that's the picture in years past. I do not know how the spending season is going this year. I know several families where someone is either laid off without pay due to manufacturing pull backs or someone has lost their job in the last 6 months.

My cousin lost his job back in the summer. He was an economic/banker mind behind large international real estate development deals. Most of us thought the hardest hit were the victims of predator lenders but the economic illness is an equal opportunity killer.

Will you join in the madness at the mall? Will you be paying for express shipping for purchases made on the internet? Will you pare back the number of packages you will be wrapping and giving or will you pare back the amounts spent or will you stretch the credit card to the limit?

Let us refocus on the reason for the season and the reason for the giving without destroying our future security.

'til later

How Low Can We Go?

The limbo stick is barely off the ground. The Feds cut key interest rate to a range this time. Usually they set a % but the rate is now anything between 0.25% and 0%. One quarter of one percent and all the way down to zero.

The rate was previously 1%. That seemed low to me. This is the first time the Fed has cut the rate below 1% and they cut it to the floor! Many thought the rate would be cut to 0.5% or 0.25% but I did not think they would take it below 1%.

What does this mean to us? Certainly mortgage rates will hold in the 4.5% range for a while. And the flip to that is money market funds will pay record lows.

Cash which should be king in this credit mire will be worth less and less. There will be safety for cash but no growth. None. The whole economy has little hope of stimulus.

Obama's resurrection of FDR's deal holds no hope for stimulus. None. It will employ some and feed some but will not stimulus the economy. And that's what we need. Tax cuts and hands off are our only hope for growth and the strength to climb out of this hole.

But I look like things like college tuition increases on the horizon and medical insurance coverage costs which only climb and climb.

We have gone low enough to break backs.

'til later

Good News

If you have an ARM (adjustable rate mortgage) and owe 80% or less of the home's current value and your credit rating is wonderful, you can refinance now for a rate not seen since the 1960s.

A 30-year fixed obligation could come at a 5.06% rate.

Some reports are expecting such mortgages to fall to 4.5% rate!

This is wonderful news for many but not for those struggling to make payments, on the verge of foreclosure, or those folks under water. The statistics of those under water (owing more than the current value of their homes) are staggering.

For now, I will focus on the little good news visible in this economic atmosphere where my sister just took a 10% cut. She didn't exactly "take" the cut. It was presented as a fact. Everyone in her division would now earn less than they did the day before by 10%. The company asked if anyone was interested in cutting their hours to 32 per week. Will that be the next presented fact?

'til later

Ponzi Scheme

From Wikipedia, the free encyclopedia:
"A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from the profit from any real business. It is named after Charles Ponzi. The term "Ponzi scheme" is used primarily in the United States."

By now you have heard the name Bernard Madoff. He was the chairman of the NASDAQ at one time and a pioneer in electronic trading. He took investments from people and charities (some of which have been bankrupted by this scheme) promising regular returns of as much as 1% to 2% monthly. 2% a month = 24% return!

He paid these dividends with $ that came in from other investors. The scheme ran a long time and the losses to investors is at least $24,000,000,000 and may be as much as $50,000,000,000.

Maybe you're not sure how a ponzi scheme works. The longest running official ponzi scheme is our Social Security system. What my employer withholds and matches pays recipients who are collecting Social Security now.

You see, there's really no $ in an account earning $ for my retirement. Surprised? If there was $ earning for you, your heirs would inherit it. No. It's a pyramid or ponzi scheme. Money goes out from $ that arrives. There are no assets in these accounts either.

I have heard that investors with Madoff ("made off" like he made off with their $) may be required to pay back any $ "earned" through Madoff's business.

If it's too good to be true, it probably is. Ronald Reagan used to say "trust but verify."

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Enslaved

I have a friend who worked summers during college in a factory. Early on a co-worker told her to slow her pace. She was making the others look bad. She was confused.

By the end of her first 2 weeks, she was approached by a worker she did not know who warned her to slow her pace. She was making it difficult for her brothers and sisters.

That was her first and only job as part of a union. She went on to get her accounting education. She is no longer enslaved and dictated to about how she should perform her responsibilities.

She enjoys the freedom and pride in doing a job the best she can. Her company is cutting back in her department and she faces uncertain times but she goes to work and keeps on task and works hard to earn her $.

Unions were necessary 100 years ago when employers used and abused people and then discarded them as used equipment. Unions now are slave owners. I fear the UAW may take down their slaves along with Chrysler, Ford, and General Motors.

Give me the freedom to do an honest day work for a fair wage.

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Full Disclosure

I wrote the other day about meeting Bob for the first time. We dated for 6 months before our engagement November 1, 1974 and were married in April 1975.

He was living in a furnished one bedroom apartment and I was sharing a small house with a friend. The friend moved out in early 1975 knowing that Bob and I would live in the house or I would be moving out.

It was in early January that we started talking about where we would like to live. He did not like my neighborhood out south and I was not fond of "cookie cutter" apartment complexes. So we talked about buying a house.

We sat down with our checkbooks and examined what we had together. I had very little but he had been living below his means and had accumulated nearly $9,000. His car was completely paid for. It was a 1973 Chevy Vega. So sporty and so small.

In February Bob closed on our house. We were not married so he bought it in his name based on his assets and credit history. We put $8,000 down on a yellow 2-story, 3 bed-room house part way between his apartment and my rental house. We got it for less than asking since we did not need to take possession until the middle of April.

Bob's $8,000 was 1/3 of the cost. Our first house cost $24,000. It's all relative. Bob made $17,000 that year and I made nearly $9,000. Plus, we had enough of his savings left to refinish the basement and buy living room furniture that was not used.

Full disclosure and honesty. Necessary roots for a healthy relationship.

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Auto Three

It looks like there's a deal made for the 3 to get some $. They may also get a Car Czar appointed by President Bush. Someone who will watch over as they create new blueprints or business plans and submit them on or before (a phrase always used in regards to the government deadlines) March 31, 2009.

A Car Czar appointed by Bush. Does anyone else realize that if this fails, the only fingerprints left will be those of George W? Once again, it will all be a Republican problem.

The only voices crying out against more $ for the UAW - that's what it's for - are Republicans. When this large chunk of change is not enough, it will be a Republican problem. Once again the Dems will be sitting pretty on the side of the unions. It's those bad Republicans and Capitalist Pigs who caused the ruin of the U.S. auto industry.

The UAW will suck the bridge $ up in a few months. They have made no concessions. They don't have to until Chapter 11s are filed. It will come to that.

Plus, the government is dictating to the automakers what type of cars to build and what emission standards and fuel standards must be met. It's no longer a free market.

In a free market, the maker produces what the consumer wants. Unless gas goes back to $4/gallon, we the consumer want our trucks, our SUVs, our minivans, and comfortable road cars like Buick and Cadillac.

I want all Republicans in Congress and the President to spell out in detail why they are against this. I guess Bush is not against this but all the rest who are need to speak out loudly. Go on the record. Be the voice of reason and forecast the demise of this plan.

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1973

Thirty-five years ago today something happened that I did not recognize at the moment.

I was sharing a small house with a friend. The monthly rent was $125 but I was paying $90 of it because I had just asked the other gal who was living with us to move out. It was not a good fit. Rachel was working second shift so we each had quiet time alone and yet could have fun together on the weekends.

I was working as the bookkeeper/inventory clerk at a medium sized book and gift shop. I enjoyed my work but was only making gross $95 a week. My car payment was $45 a month for a used 1969 VW Bug. I needed to make more $ and my mother told me they were hiring where she worked.

I interviewed and tested in November for a secretarial spot in the office building. When I did well on the math portion, they gave me advanced math tests just to see how I did. I did not get the job but was called back before Thanksgiving to interview with the head of Research and Development. I was hired as a statistics clerk in the Quality Assurance Department at the corporate level. I would be working on the same floor as my mother attached to a processing plant.

The job title alone rattled my confidence but I was assured the job was something I could handle. I gave notice at the book store and started December 10, 1973. My supervisor was pleasant but she had the responsibility of the technical typing pool and record keeping clerks for all of Engineering and Research. Before she handed me off to the math whiz in Procurement and Pricing, she gave me a quick tour introducing me to many new faces.

We stuck our head in the Chem Lab and she said hello to the two Bobs. One was short and one was tall. On to the Micro Lab where Mom worked, down the hall to the Engineering group and back past the secretaries to the department heads.

That's right. I met my Bob that morning. I would not get to know him until the place had a large fire in late January 1974 and most of us were relocated to a small industrial building across the railroad tracks. By then he was out of the lab and was the Director of Sanitation for all Eckrich plants. He had been hired in July and had "cut his teeth" in the labs and each of the plants.

Our first date was late April and we were married one year later. Now you know the rest of the story except I began my new job making gross $143 a week. That was quite a raise. It all changed my life. A new job and a new beginning.

'til later

New Shoes

I have worn the same "tennis" or walking shoes for 6 years. Needless to say they were no longer as supportive and the tread was worn smooth. Time for another pair.

I have hunted for the same make and model to no avail. With the weather a mix of rain and sleet, the icy sidewalks were hard to face in my dear Avias. Yesterday I wandered into a mall in West Burlington, into Younkers. I sense they may be part of the Macys family.

I found a pair of Avias but they did not fit my heal correctly. I purchased a pair of Ryka which fit OK, not great. I am giving them the whole day to break in. There's one spot across the ball of my left foot that's not feeling comfortable now.

When I made my decision, the clerk asked if I had clipped the coupon out of Sunday's paper. I had not so she scanned one she had and I received a $5 discount beyond the sale price. For $44 I'm hoping these shoes carry me miles and miles.

Today I plan to get to the local Hobby Lobby store. I did clip their 40% of any regularly priced item coupon from Sunday's paper.

'til later

HGTV

There's a daily show on HGTV called My House is Worth What? People have a realtor assess their property making suggestions and uncovering what they would list their house for. Many of these people are not interested in selling but rather in knowing the equity they have in their houses.

Many of them are seeking this knowledge so they can "tap" the equity for improvements. Some want to make other large purchases. Tonight's show made the homeowners very happy. They can now buy jet skis.

Tapping the equity means a loan. Either a home equity loan or a new mortgage contract completely. Everyone is so happy as if it is all found money but the truth is, it's more debt.

So many are "under water" because they tapped or took out equity from their homes as prices rose. Now as prices are decreasing, these debts are breaking the backs of good hard working people.

Bob and I enjoy watching the houses and seeing the improvements made and the suggested ones made by professionals. We know we need to redo our master bath and our kitchen needs a complete gut job. For now, we'll live with the laminate counter tops and vinyl floors, the cream colored appliances and cheap cabinets, the gilded framed mirror hiding the medicine cabinet and the stove vent fan that doesn't work.

'til later

Shop On Line

A friend was telling me how she did most of her Christmas shopping on line this year. She estimated she saved nearly $180 in sales tax and shipping. Many sites are offering free shipping with orders over a threshold as small as $25.

Unfortunately she was not home Friday afternoon to sign for one delivery and hopes they will attempt to deliver again Monday. She said it's the big electronics order and someone needs to sign for it.

My friend has a 4 month old infant and says it's so much easier to stay at home. Little need to take the baby out in the crowds and the cold of Illinois.

Consider the savings of shopping on line. Be sure you are shopping a reputable site. If the deals are too good to be true, they probably are and you may be handing your credit card information over to a thief. Buyer beware.

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Bambi's Dad

My friend Anita and her sister Mary drove from North Carolina to southern Indiana for the week of Thanksgiving. The last leg of their trip is on state roads. Anita was driving and had slowed as they were approaching a small town not far from their Dad's place. Mary was not watching the road and was surprised when they quickly stopped.

When she asked what happened, Anita said, get out of the car but don't let the dogs out. They had run into a large multiple point buck standing in the road. He was down - probably broke all his legs, he was alive, and the Toyota Highlander was a mess.

Long story short. "Barney", the local authority, came to the scene. He had to put the buck down. It took 4 shots! The Toyota had to be towed and will be repaired. The airbags did not open as the impact was not that great due to the reduced speed.

When I asked if they got to keep the deer for meat or trophy, Mary said the meat would not be good due to all the lead Barney pumped into him. She didn't want any dead heads on her wall either.

More to the point of my story. Mary will never give up her SUV. Thank goodness they were not in a Prius or one of those Smart Cars. That wouldn't have been very smart.

'til later

What If

What if the government removed the restrictions on the auto industry to produce cars that will not sell until gas reaches $4/gallon? What if they each got $1 billion and all demands that they provide electric and hydrogen cars removed? Period. Free market. Supply and demand.

These execs are sitting before Congress with their male jewels in their hands like they are the bad guys. They are sitting in front of men and women who, for the most part, have never owned or run a business. They may be very educated and understand how to read a basic balance sheet but they have never be personally liable for employee payroll, union negotiations, tax restrictions, and red ink.

We have not held them accountable for the red ink on the U.S. balance sheet. We have not held them responsible for their part in the mortgage mess. They were the authors of it all. Let's hold a mirror in front of B.F. and C.D. and N.P. et al.

Ford, Chrysler, and GM are not the bad guys. However, many in Congress are. Remove the restrictions. Ask the UAW for the same deal they cut for the Toyota auto workers. Step back and watch capitalism work. Watch the stock market react to that one.

Come on. Some one out there get a back bone. Set the captives free. Free to make $. Free to pay dividends to the few of us who still have their stocks in our retirement funds. Free to make it or lose it.

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Slow Going

Yesterday Bob and I traveled down I55 from Chicago to St. Louis and then west across Missouri to Joplin. Central Illinois was covered in 3 inches of heavy snow plus a base of slush and blowing snow in the air causing near white outs.

We spent over an hour crawling along at 40 and 45 miles per hour. Others on the road, most of whom were returning home after the Thanksgiving holiday, were not all careful. We watched one SUV loose it in the left lane, spinning out into the median and nearly across to the north bound traffic but turned and came back across nearly into the lane he left. Thankfully he was able to stop.

There were at least 10 vehicles in ditches but there appeared to be no physical injuries so we traveled on.

I got to thinking about our savings approach. Slow going for now. We continue to put aside some each month but I know with rates so very low, it will be a very slow arduous road to our goals. However, we see no need to speed up with risky investments or loose control by not saving some $.

Slow and steady - the race is on.

'til later

Bank Changes

Our bank which was purchased last year by National City. Now National City will be sold by year end to PNC. I asked my favorite local teller yesterday about another change.

She said the purchase will be complete but we won't see PNC over the door for a while. The transition can take 24 months according to what she's been told.

Pam went on to say that PNC is strong. Maybe she saw concern on my face. Maybe she knows that National City was strong a year ago when they acquired MidAmerica Bank.

I will let you know when the name change happens. I am hoping PNC will allow or "grandfather" our account. We have no minimum balance in our checking account and it earns a few pennies a month. No minimum plus interest. My fingers are crossed.

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2008 Look Back

Today is the day I will compile our spending so far this year. It's not very difficult since I maintain our checking account on Quicken. It makes bank reconciliation very quick each month and as I enter the checks written I categorize each to an expense line item such as utilities, gifts given, fuel for the cars, real estate tax, etc.

We will study the 11 months so far and make some decisions that we will implement in December. We have a gift given budget which we will revisit. Bob and I will decide if we are giving gifts to each other (I hope so) and the approximate value we will spend on each other.

We will visit the charitable donations so far this year and consider making more by year end. I will recap federal and state withholding so far in 2008 and provide Bob with our tax liabilities for 2007.

By the end of the year, our business will have its annual meeting and bonuses (if there are any) will be given. Since the only officers and employees are Bob and I, it is simply a matter of paying out any extra income through W2 wages.

It's comforting to know ahead of my major Christmas shopping these next 2 weeks just exactly what is budgeted. It's important also because our Visa credit card statement carries a 25th of the month payment due date. In December that's Christmas Day.

Plans are important. Gift giving can be delightful.

'til later

Perfect Gravy

The perfect gravy. Carmel brown, the careful balance of thick and smooth, seasoned just right, stirred and stirred with love and patience. The necessary companion to the picture perfect Thanksgiving feast.

Turkey just right, sweet potatoes, green bean casserole, potatoes so creamy and yummy, sausage/apple stuffing (personal favorite), crunchy fresh broccoli salad, and that perfect gravy. Add delicate dinner rolls, cranberry sauce, and some wine - all at a perfectly set table. Yum.

Top off with cheesecake and pie. A special time celebrated with loved ones. Thankful hearts around the table.

All that work and leftovers enough for 5 people for 3 meals!

My financial tip is if you put in all that work and $ in to produce the Norman Rockwell perfect holiday meal, make enough to savor beyond the big day.

Turkey sandwiches. Cold stuffing with a dash of warmed perfect gravy. So satisfying.

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Thanksgivings

Thanksgiving is a pure holiday. Gathering with family and friends with grateful hearts. Add some food, usually too much and always tasty. Turn on some football and parades. A wonderful time.

I pause to consider what I am bless with and I have cause to thank God. I'm not alone in that. This is the day that we set aside to do just that. Reflect and give God thanks.

I have memories of dozens of November trips to western New York to be with Bob's family. I have memories of years when we drove from Illinois to northeast Indiana to be at Grandma's house with all my family.

I have memory of a Thanksgiving my parents hosted when I was in grade school. Mom's parents were away visiting out of town so the day included my father's parents and his sister who was either in high school or college. Mom was setting the table, getting serving dishes out and the house smelled so good. But we were under foot so Dad took the three of us for a ride. We were probably gone 30 minutes but when we returned, the dining room was transformed.

Someone I love very much is setting her table this morning. Everything will be transformed. Her house will smell of turkey and stuffing. There will be seats set for Bob and I as we join her and her family.

I pause to give thanks for my friend. I am truly blessed.

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Banks & More Banks

There is a list in yesterday's USA Today of the top bailout recipients. Most of them are banks or financial institutions. The list is the top 10 including Citigroup who got $20 Billion over the weekend (sounds shady) and AIM who got $150 Billion.

I'm confused. Didn't Citigroup buy another bank less than 2 months ago? Like Wachovia or WaMu? How can that be?

And, closer to home, PNC received $7.7 Billion and they just bought my bank, National City.

Will there be an investigation by Congress? I want to know why we are paying out $ to big banks who bought out other banks. I want to know why those big banks were "allowed" or approved to buy the lesser institutions and yet turn right around and get $, big $, from us.

Is anyone else concerned about the burden these bailouts are to you and I and our kids and our grandkids? And, if it all began with the loosening of credit requirements and the push to make everyone a homeowner, I think there must be an investigation.

Of course, like one commentator said, if it was a Republican, that person would already be in jail. Shouldn't we demand names? I'm angry and confused. These are Billions of $ that add up to Trillions of $.

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Dictating?

I may have misunderstood Mr. Obama recently. It sounded like he wants to bail out the big three with some major strings. It sounded as if they will make cars the government wants them to. The implication was small, electric, hydrogen, and hybrids only.

No lesez faire attitude there. No letting the market demand and supplier supply.

Mr. O went on to promise millions of jobs working for the government digging ditches and making roads. How 1930 of him. If we do not remember the past and its mistakes, we are doomed to repeat them - eighty years later.

Where is the change? I heard the hope but I did not detect a change except when it comes to what Detroit will be allowed to produce. Hope gets little accomplished.

'til later

Plan Now for Friday

Now is the time to plan your Friday shopping outing. Check out: bfads.net It's the official website with all the ads that will be happening later this week. Some places are open part of Thursday with specials as well.

The outlet mall in Aurora opens at midnight Thanksgiving night. You can bet the cars will be lined up along 88. It'll be crazy.

No, I won't be there. I doubt I'll go out at all Friday. I have in the past when the specials were too hard to pass up or I was with my sisters. Marney and I have gone early the past 2 Black Fridays.

The key is to plan ahead. Know exactly what specials you want to take advantage of. Get in, get it, get out. This is not a day to "shop" but a day to acquire.

Why do they call it Black Friday? It's traditionally the day retailers' books go from being in the red to being in the black. That's right - all those months and suddenly in one day they start to see a profit.

'til later

Suze Orman

I caught part of Suze Orman's show last night. She used a phrase I have heard in regards to federal spending. That commentator suggested a few years ago that the Feds need to trim back spending and adopt a "pay as you go" mindset.

Suze warned last night that from here on we need to be a nation of people who "pay as we go" meaning buying less if we can't cover it with our income or savings.

She went on to explain that those with HELOCs (Home Equity Lines of Credit) will soon see changes in the contract with their bank or lending institute. She thinks those with a line available of $20,000 may see that trimmed to a max of $15,000. Less credit available.

"Pay as you go" is what we will do from here on. Keep it in mind too.

'til later

Making My List

It's time to get suggestions from friends and family. What do they want for Christmas? Marney has asked for suggestions from us. I do not know their gift budget for the season, but I came up with a few practical suggestions. She handed me the Lang calendar catalog and I marked 2 that I would enjoy hanging in our kitchen in 2009. The choice is hers.

Are there gifts for loved ones that you will struggle with this year. Not finding what they would like or what you want them to have but the costs. Can you find a satisfying alternative that's cheaper?

I have a friend and we give each other a day shopping after Christmas with a nice lunch along the Fox River. We take advantage of the sales and splurge on lunch. We each treasure the time together and it's the gift I look forward to each year.

Have you noticed on-line stores are offering free shipping? Many are and others have marked down some things ahead of the holidays. On-line you can avoid sales tax as well.

Time to make those lists and get shopping. Remember your budget and be nice to yourself. Think ahead to the Visa bill that will arrive in January. Don't face the new year with a big debt.

'til later

Tranqullity

The garden club in my town hosts a special day in early December. The ladies decorate 5 or 6 homes for Christmas and sell tour tickets. It's fun to see inside different types of houses and gain decorating ideas.

Several years I went with a dear friend and afterwards we would both say how hard it was to return to our houses. We had ideas but little means of decorating like the garden club plus our houses are modest. Too modest to host a tour.

I think we have become a discontent society. Marketing specialists know if we can be convinced we are unhappy without something or need something to be seen as worthy or wealthy, we will purchase. We will go into debt to have things.

We often equate financial success with happiness but I know riches do not bring contentment and a luxurious lifestyle does not bring joy. I know debt can crush a marriage and cause great pain.

There is much to be said for seeking contentment. Look at all that you have - your health, your family, your home, your job. Count your blessings.

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Sink Or Swim

The big three tried to make their case to Congress for another $25 BILLION but failed miserably. They have no business plan. They had no answer to the question "If you get this $, will you come back for more $?"

They flew into Washington in their corporate jets with a slew of lawyers. They admitted they are not personally making concessions but if they don't get this $, they are in big trouble.

I say let 'em fail. Let 'em face bankruptcy, regroup, and emerge leaner and stronger.

From the mid-1940s through 1960 the biggest selling car was the DeSota. It had its run and it was a great one. American Motors had the Gremlin in the early 1970s. Plymouths are gone. Oldsmobiles are gone. Cords and Auburns are long gone.

Change is constant. Pouring $ down a rat hole is stupid. I applaud Congress for asking hard questions. I pray they do not flush more of OUR $.

'til later

Thinking Taxes

There are a few things you can do in regards to 2008 taxes and this is the time to examine your incomes and expenses year-to-date.

Donate to charity. If you are considering donating that old car, now is the time to do so. If you support charities regularly, increase your gifts between now and December 31.

Accelerate deductible expenses. If you itemize and qualify for medical expense deductions, add to that column of your expenses. Get to the dentist, eye doctor, and purchase medications ahead of the first of the year.

Also consider paying ahead local taxes like real estate. If you make estimated tax payments toward your state liability, make your 1/15/09 payment early. It will count on your Schedule A.

Defer income into the new year like bonuses. If you have savings bonds maturing, wait until 2009 to cash them.

If you have capital gains to report for the year, consider realizing some losses to offset. The maximum you can write off is $3,000 per year. Matching the positives against the negatives will reduce your bottom line.

Max out your contributions to IRAs and 401(k)s and the like. These reduce your taxable income and you will be glad the $ is there in retirements.

'til later

Banking

Have you heard who wants to be a bank? American Express and Lincoln Financial both want to be granted bank status.

Do you wonder why? I do. Maybe they would be in line for part of the $700 billion rescue package.

Why wouldn't they make this move? It's worth the effort since the potential gain is so big.

Where I grew up there was a local bank called Lincoln National Bank. It was the big hitter in town and was long ago purchased by a true national bank.

I think nearly all small local banks are gone. Soon we will be left with 6 or 7 choices for banking. Our local bank was acquired by National City earlier this year and is line to become PNC Bank.

What will change at my branch office? Will familiar faces remain? Will PNC honor our "grandfathered" checking account which has no minimum balance and pays a teeny tiny interest? I'll let you know.

'til later

Place Your Bet

The government is placing our bets. Will they put another $50 billion on the wheel? Would you lend a gambler big bucks?

Of course not, why would anyone and yet we are about to do that AGAIN.

The auto industry, the big three, are in big trouble. It did not happen over night and the $ we already "gave" them is long gone already. Yes, those were gifts. Wave good bye to your $.

United Airlines has been in and out of bankruptcy a few times. Throughout the process, they continued to fly. If GM, Ford, and Chrysler take the same road, people will keep working. Cars will roll off the line.

The difference? The companies can make wiser decisions, regroup their debts, and reconstruct a plan.

Oh, yes. The UAW will be back at the table to negotiate contracts all over the place. Possibly, the darkness will be lit and we will see why it costs these manufacturers over $70/hour per worker while Toyota pays less than $50/hour per worker.

Maybe the big three will go on diets and survive. Tough to face but I'm not comfortable gambling with all that $.

'til later

Spring Memories

Spring is my favorite season. I love fresh green life. The renewal of the world after the dark cold winter. In fact, I enjoy watching the eruption of the buds in March on the stark tree branches.

The maple trees out front change quickly from little bumps to large odd shaped brown growths. Then as the green comes forth, it's so fresh and light. A young green.

During the heat of late June through September, the shade from those leaves buffer against the temperatures. The full blown canopies across the streets in my town add cover from the sun and from the rains.

Now we are in the season of deposing of the dead brown and yellow leaves. The neighborhood is full of the roars of leaf blowers. Some are bagging and some are piling leaves in the streets for the last community pick up which is this week.

Those fresh green leaves are all spent. Their lives fully lived and now the job of clearing yards and sidewalks of their dead bodies. Autumn is sad. A foretelling of the naked cold winter ahead.

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What Is It?

"No taxation without representation" began as a slogan in the period 1763–1776 that summarized a primary grievance of the British colonists in the Thirteen Colonies. In short, many in those colonies believed the lack of direct representation in the distant British Parliament was an illegal denial of their rights as Englishmen, and therefore laws taxing the colonists (the kind of law that affects the most individuals directly), and other laws applying only to the colonies, were unconstitutional." This is quoted directly from Wikipedia.com.

President Obama has promised less taxes for 95 millions Americans! Of course, now over 45 million pay no taxes. Many of them receiving the Earned Income Credit - welfare hidden in the IRS 1040 form.

What will we have when 15% pay income taxes and 85% do not but each group has equal representation in federal government? Do we have representation without taxation?

Is that fairer than taxation without representation?

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Precious Life

We have received word that the 19 year old son of a friend has died suddenly. We are in shock. Our friends are devastated. Craig's sister is inconsolable.

Life is precious. To lose a child has to seem like the end of your own life.

Today reach out to those closest to you. Share hugs more freely. We have no promise for tomorrow here on earth.

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Less Convenience Stops

Bob and I used to pay cash when we put gas in the cars. Of course, that was much easier when $15 would be sufficient for the week. Now we use our credit card and no longer take time to deal with the cashier.

A dear friend of ours works for a manufacturer of specialty items that are always positioned near check out counters and especially within sight in convenient stores and gas stations. Her business has been cut in half. So few people go inside to pick up a Coke and chips or something.

It got me to thinking about habits and I thought of a few things regarding credit cards and credit card balances.

Have a Payment Plan - Making only the minimum required payment is not a realistic strategy for resolving credit card debt. Set a goal date for when you want your card paid off and budget payments accordingly. If you have multiple cards, pay off the credit card with the highest interest rate first. Once the first card is paid off, roll the amount you were paying on that card into the payment plan for the next card with a balance, and so on.

Pay Attention to Changes in Interest Rates - Do you know the rate you are paying on your cards? Credit card companies are required to provide you notice of any changes in the terms of your contracts. So often we toss these notices tossed aside as "just more junk mail". Changes in the interest rate or minimum monthly payment can significantly affect both your payment plan and the urgency for paying off the balance.

Avoid Using Credit - Ideally, your credit card should only be used in the event of an emergency such as an expensive repair or unexpected medical expense. But the truth is we use our card at the gas station, at the dentist's office, at Target/other discount stores, for internet purchases, and for some donations. But we do not use the card unless we know we can cover the charges. Rarely do we leave a credit card balance stand from month to month. We never pay utility bills or large purchases on our card. We have never taken a cash advance. Some of those rates should be unlawful.

'til later

Used Things

We picked up a used high chair at a garage sale on our block this summer for $15. We tore it apart cleaning every surface and washing the pad. The adjusting buttons don't work but we can adjust it by turning it over. It's a Graco and has a one hand release of the large tray. The straps are adjustable.

We gave it to our friend with the 4 month old. Her little girl can use it now as the chair reclines to three different positions. Grace is holding her head steady fairly well but she won't have to in this chair.

Now our friend and her husband can enjoy dinner while Grace sits at the table. She has been fussing during the meal until her daddy picks her up. She just wants to be part of meal and now she can.

It was a joy to find the chair, clean it and give it. Grace will use it for a few years and the chair will live to serve another child.

'til later

Flying Specifications

In order to not have to check a bag, Bob took a small carry-on along with his briefcase. He travels often and know the rules. Or he thought he did.

Tuesday morning a trainee was working the check point. He confiscated Bob's quart size bag and it's liquid contents. The problem was it was not a zip lock but was tied with a twist wire.

So once Bob got to his hotel and checked in, he got directions to the nearest grocery store. He had to buy toothpaste and shaving cream just to get by. He said it cost him about $5 for these. If he'd stayed at a Choice Hotel (like Comfort Inn) they offer free sample size toiletries for their guests but the Hampton had nothing to offer but directions to the Kroger store.

Note that it must be a clear plastic zip lock quart size bag.

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Court Worries

Now we have Obama as president. Lucky us. He will be commander and chief. Since the military voted 10-1 for McCain, I will predict now that the US will reinstate the draft. Mark my words today.

However, before the draft, Obama will have the duty to fill one or two seats on the highest court in the land.

Because Barack is a liberal, we know that all that he puts up will be pro-abortion. Not just upholding the laws of the land but with the agenda equal to his own.

State senator Obama worked very hard on one piece of legislation. I'll call it "leave it in the sink". He wanted no medical assistance available for a baby born alive due to an abortion.

It seems the medical professionals had trouble with it because of those oaths they take to continue life or something. So the bill did not come out strong enough after all his hard work, so Obama voted "present" to his own bill.

Beyond this bill, Obama believes abortions should be available to every woman at no cost to her. That's right. Right along the lines of nationalized health care, he will make you and I pay for all abortions. Abortion as free birth control.

I think I need to reread about the rise and fall of the Roman empire.

'til later

Joe The Plumber

If B. Obama does not win the election, Joe the Plumber will be murdered. I did not make this up. There are several websites calling for his demise now. What has this come to?

People are emotional. People are not rational.

Do not leave your brain at the curb. Use your brain when you vote. Please.

'til later

Flood in the Desert

Nevada is under water. A flood in the desert.

For a few years we heard about the housing bubble. There was fear of the bubble bursting. It's happened in Nevada.

Nearly half of Nevada homeowners with a mortgage owe more than their homes are worth. That's the definition of being under water. Owing more than the value of the asset. Of course not everyone in Nevada has a mortgage on their home but we can bet most of them do.

The picture worsens. If you add in the homeowners like them in California, Arizona, Florida, Georgia and Michigan, together the percent nears 60 who are under water.

Nationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth. One is five is 20%.

If these folks can continue to make their house payments and ride out the storm, real estate has proven over time to be a good investment. It could very well be a long tough storm with severe damages ahead.

My heart goes out. Most of these people are making payments and keeping a roof over their heads. They are praying their jobs don't disappear.

On our block we know of one young lady who has just lost her job. She's moving back home so the house behind us will be for rent soon. Stacey was a good neighbor and we will miss her. Across the street an older widow has lost her little house. She's been living in a facility. Between her medical bills and housing requirements, she'd fallen behind on the mortgage and taxes. The property was on the market for less than 2 weeks. It will be torn down and replaced eventually. It sold for what the land is worth to pay back taxes and satisfy the gap. The bank was owed more but between their insurance coverage and what the repo company gave them, the debt was covered.

Sad stories repeated across this great land.

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Family

Obama cares enough for his destitute aunt in Boston. Rather he cares enough for her $. She has donated more than $250. So? She's not a U.S. citizen. He knows this but only when it was pointed out was the $ donated to charity.

That's not the big point as far as I'm concerned. His aunt is here illegally. The courts ordered her out but she's living in public housing near Boston.

Public housing. That means we are supporting her. She's not here legally, she's making illegal political contributions, and we the people are subsidizing her housing.

Let's get over it. We the people will soon be paying for >50% of our own citizens through Obama's gifts and promises. He will cut taxes and give $ to everyone making less than $250,000 or $200,000 or $150,000 (Joe Biden) or $120,000 (Richardson).

Wait, that's us! We're going to get a reduction in our taxes and $ back.

Why did I vote for McCain?

Oh yeah. He's more experienced, he's determined not to lose the wars, he is more conservative than the most liberal senator (duh, that would include everyone else), and he had the foresight to pick a female for the VP position.

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Real Bargain

Tonight we realize a bargain. A free hour. It's actually the hour we lost in the spring. We recapture it tonight.

What will you do with the extra time? Most of us sleep it away and it feels so good. But that's not the only thing you can do with it.

Don't set your clocks back when you go to bed. Get up after your normal night's rest. Plan ahead to use that free hour for time with family, work on a hobby, exercise, organize a closet, write or chat with a dear friend, volunteer, rake leaves or another chore.

This is a real bargain. Use it and don't lose it.

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Scary Stuff

A lady was interviewed after a big Obama rally this week. Her statement wraps up the truth and expectations of President Barack.

"I won't have to work again. He'll take care of us."

What? That didn't make the mainline newspapers and radios and tv reports? Why not?

Folks, I think it's over. Now we can all turn everything over to him and let him take care of us.

I'm a Christian. There is someone I will turn things over to. I will rest in Him for my future.

I will cling to my religion, my guns, and get on my knees.

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Down Down Down

Down 0.5%. The feds cut the rate from 1.5% to 1%. That's a reduction of a third. It's now as low as it was in 2003 and 2004 at the end of the 2000-2001 recession.

Their mandate is to control inflation but I sense they did this to help the economy. So much help and still the reports are that money is tighter than ever, housing is in the dumpster, and the stock market is undergoing a 6.0 earthquake.

Of course the housing mess is painful. The foreclosures are all over the place. In general, so many are so over extended. Houses are not worth what is owed on them.

The economy is like a diet and exercise program. No pain, no gain. All the expensive fixes may soften the pain but it can also lengthen the process.

I think hindsight will show similar effects as back in the 1930s. If we do not learn from history, we are doomed to repeat it. FDR's programs lengthened the big one and set us on the path to big government and masses dependent upon Uncle Sam for their existence.

I prefer John McCain's promise to get government out of the way of our personal progress.

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Proposed & Nearly Sold

On the radio yesterday I heard excerpts from a Congress woman excited about the proposed new 401K. "It won't cost the government anything." The government will return the balance in your 401K to its August 31, 2008 amount and take it over for you. There's the sales point - return the value to what it was.

Here's an article I found on the internet. Few news sources are reporting this proposal that will likely be on the table January 21, 2009.

By Mark Impomeni

Oct 24th 2008

"Sen. Barack Obama's Democratic allies in Congress are looking into a radical new plan that would fundamentally change the way Americans save for retirement. House Democrats recently heard testimony on the idea and, under a potential Obama administration, would likely move to put it in place.

"Democrats want to seize the money that workers currently invest in their 401(k) plans and replace the popular retirement savings accounts with a one-size-fits-all government sponsored retirement account. Under the scheme, Americans would be forced to transfer all of their hard earned retirement savings from their 401(k) to the government.The government would contribute $600 a year to fund each account and would pay a rate of return of around three percent in interest. The government would also mandate that each worker contribute 5% of their yearly salary to the accounts.

"Under current law, workers with 401(k) plans contribute to their retirement accounts and earn interest tax free. The Democrats' plan would end those tax breaks, amounting to as much as a 15% tax hike on each American worker.Rep. Jim McDermott (D-WA) said recently that Democrats had better ideas for the $80 billion that Americans contribute to their 401(k) plans each year. "We have to start thinking about whether or not we want to continue to invest that $80 billion for a policy that's not doing what we say it should."

"Sen. Obama would likely sign on to the plan as president.Obama, McDermott, and Congressional Democrats miss the point that under current law, Americans have control over their retirement savings, where and how it is invested, and when and how much they contribute. The idea to nationalize retirement savings is another example of Democrats' socialist proclivities. They want control of Americans' retirement to reside in Washington DC, not on Main St., all in the name of "retirement security."

The Congress woman was excited about making it all fair because with different tax rates (as much as 39.6%) some people were realizing a larger break than others. That wasn't fair. This proposed plan would be fairer and spread the wealth.

My concerns include how wonderfully the government has run Social Security and Medicare plus under the 401K rules now I can bequeath any balance in my IRAs and 401K and I can inherit same. I could not leave a legacy to the next generation or even a charity. It would be sucked into the black hole of government. Is that fair?

'til later

Goes to Base Beliefs

State Senator Obama gave an interview in 2001 that reveals his true feelings and his true goal. Hold on to your wallets. You think taxes are high now. You think the rich exploit us, try working for a poor man.

Obama said the civil rights movement was victorious in some regards, but failed to create a "redistributive change" in its appeals to the Supreme Court, led at the time by Chief Justice Earl Warren. He suggested that such change should occur at the state legislature level, since the courts did not interpret the U.S. Constitution to permit such change.

"The Supreme Court never ventured into the issues of redistribution of wealth and sort of basic issues of political and economic justice in this society, and to that extent as radical as people try to characterize the Warren Court, it wasn't that radical," Obama said in the interview.

Where in redistribution of wealth is my right to pursue happiness? Just give folks an opportunity. Give people good teachers. Give them the freedom to pursue and get out of their way.

There's Jennifer Hudson who found a wonderful way to use her voice. She earned an Oscar award. How wonderful for her to pursue her happiness. Oops. She forgot to redistribute her wealth and her sister's paycheck was garnished due to failure to make car payments. We will need to assure that the redistribution of wealth becomes part of our new education knowledge.

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Home Ownership

Is home ownership a right or a privilege? It seems folks today expect to buy a house or condo upon completion of college or by age 21. I'd like to share how home ownership has happened for those in my life.

I come from German and Scottish heritages. We are frugal stock and many before my grandparents farmed for a living. There are women in my ancestry who have worked before, after, and during child rearing ages.

In 1949 my parents married. They purchased their first home in 1960. For 11 years they worked and had 4 kids when we moved into that small 1 1/2 story house. Three girls up in the dormer room with the fourth one arriving the next summer. Our brother was the lucky resident of the tiny back bedroom. Seven people and one bath. It was normal for us.

When Bob and I married in 1975, together we had saved $8,000 and put it down on a modest yellow home which cost us $24,000. Sounds like so little but we were making very little. I made about $3.50 per hour and his salary was in the $21,000 range. We were thrilled to have a house.

Our daughter and her husband were married in 2004 and rented for a few years in California and Illinois. They set aside one income and lived off the other saving for their first home. They purchased a beautiful modest house in 2006 with 20% down.

Saving toward a goal is so rewarding. Making those monthly payments are not always easy but taking on less than you can afford sure helps. I'm afraid so many have stretched their $ to the limit just to pay for a house.

Living below our means and finding peace and contentment with the blessings we enjoy are key to really living. Smelling the flowers where we are planted.

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Early Voting

Yesterday Bob and I went down to the city building and stood in line for 1 hour and 20 minutes to vote early. We will be on the road November 4. We have voted early several times over the past 10 years but have never stood in such a crowd. They took our picture IDs (like driver's licenses) and checked our signatures. We heard them challenge one fellow. That has never happened before. I think they should do that at the regular poling places on November 4, don't you?

It is good to have cast my vote and my voice. Now I will be praying for this country every day. The future is unknown. I am not crazy about McCain but I am afraid of the reign of President Obama. We will be much weaker militarily and perceived as a target once again available.

The economy under Obama will be worse and the recession lengthened. Under McCain's plan, at least there would be a slowing to the job losses; however, with the domination by the Dems in both Houses there is no way Bush's tax cuts will be extended or made permanent. We are probably doomed to a prolonged painful decade ahead and our children will pay the price for several decades beyond.

Join me in praying. There's little any of us can do after we vote.

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Home Sweet Home

Bob & I enjoy watching a show on HGTV called What's My Home Worth? I think that's the name. People invite the cameras and a realtor in to find out what realistically their house would sell for.

The homeowner always says when they purchased and for how much and then detail all the improvements they have made. The realtor tells them if their improvements were the right ones and if the $ spent was wise. They also give suggestions they would advise if they were listing the house for sale.

So many suggest replacing all appliances with stainless steel or tumbled marble tiles in the showers or replacing all floors with hardwood. People are told to gut baths and to enlarge closets even if taking space from adjacent rooms. Front doors need to be replaced. Landscaping needs total replacements. Windows need to be all universal throughout. The chainlink fence needs to be removed. The pool is not a selling point or the pool is a big selling point.

Bob and I wonder about people who live always doing things that will be good for resale. Maybe it's because we've lived in the same house for 23 years.

We've made some improvements and changes. We did those for our own comfort. Of course, we have not painted rooms bright colors or put a hot tub in the basement. We have not replaced windows or doors. We have replaced shag carpet in the family room with "tavern" style wood floors. We have redone the screened in porch. We have replaced the shed and have done some landscaping in the front and tree planting in the back yard.

We have lived here as our home and not primarily an investment. If (or when) we make changes to our kitchen, we probably will not add granite counter tops. We'd rather live here and not worry about staining. We would likely pick a quartz or solid composite counter for cleanliness and ease of living.

We live in a home which is a house made for our comfort and living.

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Scary Prophesy

Joe Biden has spoken prophetically about our future under President Obama. It is quite disturbing considering his pronouncements came days after highest level briefing on security and foreign affairs.

I have not heard the entire prophesy on the major networks; although, they are sure to run the quote regarding President Obama's spine.

Here's a few lines from Joe's big speech that have been overlooked, buried if you will.

"Mark my words. It will not be six months before the world tests Barack Obama like they did John Kennedy."

"Remember I said it standing here, if you don't remember anything else I said. Watch, we're gonna have an international crisis, a generated crisis, to test the mettle of this guy."

"I can give you at least four or five scenarios from where it might originate," Biden said mentioning the Middle East and Russia as possibilities. "And he's gonna need help. And the kind of help he's gonna need is, he's gonna need you - not financially to help him - we're gonna need you to use your influence, your influence within the community, to stand with him. Because it's gonna be apparent initially, it's not gonna be apparent that we're right."

If you cry fire in a crowded room, don't be surprised when no one wants to stay to roast marshmallows. AP's latest poll shows them at a dead heat as we round the last big bend toward the finish line.

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Tax Changes 2008

The value for each of our personal and dependent exemptions has been raised $100 each to $3,500. So my friend and her husband who had their baby in July will have exemptions totaling $10,500.

The standard deduction is now $10,900 for married filing jointly returns an $5,450 for singles and marrieds filing separately.

The IRS says nearly 2/3 of taxpayers take the standard deduction rather than itemizing things like mortgage interest, real estate taxes, state taxes, and charitable donations.

There are phase out income restrictions on both the exemption and deductions (itemized and standard) amounts. The more income, the less allowable subtractions.

For married couples filing jointly the line between the 15% and the 25% federal brackets is not $65,100.

Other limits have changed regarding Roth IRAs and deductible traditional IRAs. A quick trip to irs.gov can be helpful with decisions.

The bottom line is the more one makes the less the subtractions allowed and the higher the tax bracket. Also the less one can save under the umbrellas of deductible and Roth IRAs.

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Tax Chat

Yesterday I got caught up with an old friend who lives in western New York. Her cat who was 19 years old was put down and she was still hurting weeks after.

Our conversation drifted to the economy. A close friend of hers works in management at a regional bank in Buffalo. Then I mentioned the new stimulus package that may be presented to Bush to sign yet this year.

I told her another check would be saved and not spent. We purchased two chairs for the family room last spring but any more $ would go into the bank.

She went on about how her stimulus check went for taxes. The economy in her area is closely tied to the automobile industry and has been depressed for years.

She went on about the whole state is no where to be due to the economy and mostly due to the heavy taxes. She pays the school tax bill and then 3 months later gets the county tax bill and 3 months following that the city tax bill.

Plus, her small pension is taxed. So the first stimulus check gave her a little breathing room and went to one of those tax bills. If there's another "gift" from the government it will go toward the local government.

Will there be another stimulus check? Or is this a political promise?

'til later

Money Gifts to Minors

I found new rules on the irs.gov site regarding minors and income.

"Beginning in 2008, the age of children whose unearned income is taxed at their parent’s rate increased. For children under age 18 and certain older children, unearned income over $1,800 is taxed at the parent’s rate. These special tax rules apply to children who meet all of the following conditions:

1. The child had more than $1,800 of unearned income.
2. The child is required to file a tax return.
3. The child either:
a. Was under age 18 at the end of 2008,
b. Was age 18 at the end of 2008 and did not have earned income
that was more than half of the child’s support
c. Was over age 18 and under age 24 at the end of 2008 and was a full-time student who did not have earned income that was more than half of the child’s support.
4. At least one of the child’s parents was alive at the end of 2008.5. The child does not file a joint return for 2008."

There is more information available on their site. As a grandmother who is thinking of gifting a little $, I wanted to review the tax rules. These rules can vary year to year but my desire to provide for future education and needs feels important.

Bob and I will speak with the parents and ask if there are college funds established. That might be the place for our Christmas and birthday gifts. Some day our granddaughter and our grandson will appreciate the $ rather than the Barbie Doll or big wheel.

'til later

A Deal is A Deal or Not

When our daughter was in junior high, she found an outfit she really wanted. It was a cute skirt with a large belt and a tight fitting bright pink top. Bob and I agreed that we did not care for it and refused to purchase it. Marney said she wanted it bad enough she would pay for it herself. So, we purposed a deal. If she would agree to a 50% reduction in her weekly allowance for the next 4 months, the clothes would be hers. Of course, in her 12 year old mind that was a deal.

Four weeks later, Marney started to complain about not having any $. She was sure she could not survive the next few months with our arrangement. It didn't seem fair.

Of course, as parents we realized the lesson is best learned that feels real. The pain would be her gain. She would remember the difficulties of those few months and possibly link it with wanting what she could not afford.

Senator Obama swears openly and loudly that he is for change. He promised to take federal funding and made a big deal of pointing fingers at everyone else demanding that they take the same deal. He was the maverick for change.

As pointed out last week, he changed his mind. Maybe he saw the light. Possibly he did not have the strength of conviction to resist but he quietly was lured by the glory of more bucks outside the federal funding. He broke his promise he made with Senator McCain and did not have the courage to say so to his face.

It's a matter of character. Cut a deal and stick with the deal.

Obama's character has always been a question. His association with Rev. Wright was dismissed as not that important although Rev. Wright was part of his campaign announcement and served on his advisory board.

His association with Bill Ayers was just a living room large enough for a campaign announcement.

His association with the bill that denies medical assistance to aborted babies born alive was just a "present" vote. Although he is quoted as saying it was the wishes of the mother and sounds like he voted for it.

Defer, deflect, deny, promise, gloss over. He's a good actor but no one points out that he's a liar. Would that be a racist comment? No. It goes to character.

He'll cut a deal with you and me and then he'll lie, denounce, shun, dismiss, and abandon. What will he do on the world stage? His ties with Syria, Iran, and Pakistan are strong. Will he not denounce Israel?

He was most candid with Joe the Plumber. It's for those behind him. Redistribution of wealth. What a deal!

'til later

Flu Shot

Bob and I got our flu shots this afternoon. The line was not long. The nurse said it had been a steady flow of people all day.

The local Visiting Nurse Association posts their shot schedule on line by suburb. We were in Aurora IL last year but today worked well for both of us and the pharmacy hosting the event is not far from our house.

The shots cost $25 each. Neither Bob nor I qualify for Part B Medicare coverage so we wrote a check for $50 to cover both. I will keep our receipts in a file folder marked Medical 2008. To qualify for medical deductions on Schedule A of our 1040 we would need many more expenses than we normally incur so the exercise of maintaining these records all year long is usually worthless.

However, I am in the habit of stuffing the folder which I keep near the phone in the kitchen next to the green plastic envelope. We stick charitable receipts, real estate tax bills, and safe deposit box receipts in there.

We use a green envelope because those expenses are deductible or may be deductible on our taxes. I keep an exact envelope there that is red for receipts from Visa charges so I can reconcile the monthly credit card statement.

It's a very simply system that works for us. Red for monthly outflows via Visa. Green for deductible expenses and a file folder to house medical receipts and reconcile insurance claims with medical invoices.

'til later

Leaving It Behind

I had a recent conversation with my friend Judy about her grandfather's estate. He passed away in his late 90s about 2 years ago. He lived on his farm. He shared the place with one of his sons and his family.

Grandpa had 11 of his 12 children survive him. His will was a simple one leaving fair shares to his surviving children.

The dilemma is the farm. The resident son wants to buy the property and continue to live there and work the land. Nine of the other siblings are fine with the price this son has offered.

It's a sad story so far, isn't it? I asked how large Grandpa's estate was worth thinking that the land might have great value.

The truth is the difference between "fair market value" and the offered price would break down to less than $1,200 difference per child.

This stalemate will likely force the estate to liquidate or sell the farm either at auction or through a realtor. By the time commissions are paid, the realized difference could be less than $100 per child.

Through their pain of loss and their need to be equal, they (the children) may lose much more than $. They may lose each other. So far no one is budging and the estate may stay open for years. That all adds to more feeling of loss and discontent.

The moral of the story, be very specific about how your estate will be passed on. Have a proper will with complete directions and a named Executor so there is little miscommunication. Get help with any questions like taxes and especially if there are dependents that may be misplaced. Consider naming guardians who care for the person, care for you, and have agreed to the responsibilities entailed should you pass.

I hurt for my friend who is hurting for her mother. In her pain, she is the one hold out sibling. Constance is just wanting to do what's right by her father and can not see beyond to the families held in limbo who are also suffering.

'til later

No Lap Dog

My bulldog is no lap dog. His beady eyes squint and his forced smile appears a smirk when he's restrained.

John's forced smile is so that he appears friendly and not mad. Last night he should have shown more anger. He should have put on the gloves and looked set for a battle.

McCain has a long history of temper and endurance. He is the right dog for the job but he won't win. We will lose out on having that bulldog in our corner. He'll remain in the Senate representing Arizona and he will serve out his term fighting.

Obama is tall (most presidents have been over the past 2 decades). He's good looking while John's broken arms suffered when his helicopter was shot down in VietNam are awkward. Obama has the art of charismatic lying nailed while John is uncomfortable calling his opponent the liar that he is.

Obama was quick to point out comments made during a Palin rally last week. However, it is unfair for us to question his associations with Wright, Ayers, Rezko, and ACORN. Sarah Palin did not know the person who called out "kill him" but Barack has known and there has documented ties with these questionable people and attitudes.

Obama will get us out of Iraq and into negotiations with Iran. He will always be a friend of Pakistan - always. He has strong ties there and spent most of one summer between there and Africa while he was struggling in college. That's when he stopped using Barry and embraced Barack as his name and background.

Obama will redistribute our wealth. He will rob us of our motivation to get ahead because we will not be allowed to.

'til later

ps - The Secret Service men at that Palin rally are now out saying no comment was heard. They would know as they are planted in the crowds. Good thing their reports were not leaked until after the debate last night.