Money Magazine (Mar '08) has an article titled "The Midlife Money Checkup". They have comprised a simple formula to see if you're savings are on track.
There is a factor by age group that is multiplied by your current income. This gives how much you should have saved by now.
If you are 45, the factor is 4.1. For 50 it is 6.1, for 55 it is 8.5, and for 60 it is 11.4.
So if you are 50 or near 50 and you make $55,000 a year, your savings should be $335,500. If you make $95,000 a year, are your savings at the level of $579,500?
This is meant as a gauge to see if you are keeping up or falling behind. The small print reads "Assumes 80% pre-retirement income replacement, including full Social Security; no pension; 4% annual real rate of return; 4% inflation-adjusted distribution rate; and 30-year life expectancy in retirement."
'til later
Friday, February 29, 2008
Thursday, February 28, 2008
That's Too Much!
My dear husband usually grabs extra paper napkins at fast food restaurants and Dunkin Donuts. Most of the time these end up in the glove box of the car - in case of spills or if he wants to check the oil.
Well, some of these precious tissue napkins make their way into the house via his briefcase or in the food bags themselves.
Bob cleaned out his briefcase and discovered a whole pile of these napkins - many of them embossed with Burger King or Subway logos. He made a neat pile of them next to the napkin holder on the kitchen table.
Is there such a thing as too frugal? Can we not afford the Scott brand napkins I bought on sale at Target?
'til later
Well, some of these precious tissue napkins make their way into the house via his briefcase or in the food bags themselves.
Bob cleaned out his briefcase and discovered a whole pile of these napkins - many of them embossed with Burger King or Subway logos. He made a neat pile of them next to the napkin holder on the kitchen table.
Is there such a thing as too frugal? Can we not afford the Scott brand napkins I bought on sale at Target?
'til later
Wednesday, February 27, 2008
Cup O Mud
Bob and I enjoy coffee. No, we are not Starbuck lovers. Their regular coffee tastes burned to us. We think McDonald’s coffee is ok but a little strong.
We truly enjoy Dunkin Donuts coffee. The temptations there are great. Too often we add a donut or two to our order. But we love their coffee enough that we brew their brand at home. Not cheap but one of life’s pleasures for us.
While in Canada last summer on work, we discovered Tim Horton. There are a few “Timmy” stores in the US. Not enough to reach to Chicago area. We did find them in Buffalo while visiting Bob’s niece. She has tried to brew Tim’s grounds but not the same. She claims his coffee is addictive and possibly contains cocaine!
I will confess Hortons was so good that I had several afternoon cups from their stores up in Ontario. I rarely drink coffee after my first two mugs in the morning. It was just wonderful.
My question is, if it’s that good, why hasn’t Timmy found his way into the midwest? Also, why so few Dunkin Donuts. Many towns have no Dunkin Donuts. I’m not sure why not. You should see the lines at our local shop every morning. Sundays are huge as folks pick up treats for home or church. They sell donut holes called Munchkins.
Bottom line. For regular coffee, Dunkin Donuts or Tim Horton. Worth the search to find a decent cup of regular coffee. If you want froth or spices, maybe Starbucks is for you. They are currently trying harder.
‘til later
Tuesday, February 26, 2008
Plastic Rates
I was reading the small print at the bottom on our Visa bill. I was curious about the rate this card charges. I didn't know if our 7.99% rate was a good one so I turned to the internet.
One site listed cards available from 4.99% to 23.99%. What a range. I know any cash advances we would take on our Visa would cost us 21.74%. I do not understand why cash would cost us so much more.
Merchants pay a small % to Visa and the other cards for the privilege of accepting their credit cards. Usually that's about 2%. So why would cash cost us so much more? No middle man to collect from?
Will these rates go down along with mortgage rates?
'til later
One site listed cards available from 4.99% to 23.99%. What a range. I know any cash advances we would take on our Visa would cost us 21.74%. I do not understand why cash would cost us so much more.
Merchants pay a small % to Visa and the other cards for the privilege of accepting their credit cards. Usually that's about 2%. So why would cash cost us so much more? No middle man to collect from?
Will these rates go down along with mortgage rates?
'til later
Monday, February 25, 2008
Window Shopping
Bob and I visited two car lots after church yesterday. It's still winter here but the sun was out. We pressed our noses up against windows of over a dozen minivans.
It's been 10 years since we bought a new car. We thought we were braced against sticker shock. We had visited websites to better understand options and configurations.
We talked about going back to the websites and creating exactly what we think we want on line. Some sites offer the ability to throw out our creation for dealers to compete over to fulfill.
But, we didn't do that when we got home. We finished our income taxes instead and they go out in the mail today.
Nonetheless, a big step in our talking about a new vehicle.
'til later
It's been 10 years since we bought a new car. We thought we were braced against sticker shock. We had visited websites to better understand options and configurations.
We talked about going back to the websites and creating exactly what we think we want on line. Some sites offer the ability to throw out our creation for dealers to compete over to fulfill.
But, we didn't do that when we got home. We finished our income taxes instead and they go out in the mail today.
Nonetheless, a big step in our talking about a new vehicle.
'til later
Sunday, February 24, 2008
Retirement Tools
Have you ever tried a retirement projection tool? Many of the mutual fund families offer similar aides.
The other day I quickly put our financial numbers into Fidelity's Retirement Quick Check. They asked for earnings now, retirement account totals, estimated social security benefits, pension projected income, investments outside of retirement funds, cost of living now, and questions regarding your life in retirement.
These tools want you to guess how long you will live. With that information they build in inflation factors. I bet these numbers are closer to truth the nearer one is to retirement but it will give you an idea how long your $ will last.
The Fidelity exercise was free. Choosetosave.org offers a free snapshot. Other places charge a bit. Morningstar and ESPlanner charge $149. I would recommend a free one unless you need a more definitive strategy for retirement or an exact savings plan to reach your goals.
Our projected picture was fairly good. I think the smartest thing we did was contribute as much as we possibly could from the moment a 401(k) was available for Bob at work. That was nearly 25 years ago. It wasn't always easy but it was deducted automatically. If it wasn't in the bank account, I didn't have it to spend.
Saving regularly over time.
'til later
The other day I quickly put our financial numbers into Fidelity's Retirement Quick Check. They asked for earnings now, retirement account totals, estimated social security benefits, pension projected income, investments outside of retirement funds, cost of living now, and questions regarding your life in retirement.
These tools want you to guess how long you will live. With that information they build in inflation factors. I bet these numbers are closer to truth the nearer one is to retirement but it will give you an idea how long your $ will last.
The Fidelity exercise was free. Choosetosave.org offers a free snapshot. Other places charge a bit. Morningstar and ESPlanner charge $149. I would recommend a free one unless you need a more definitive strategy for retirement or an exact savings plan to reach your goals.
Our projected picture was fairly good. I think the smartest thing we did was contribute as much as we possibly could from the moment a 401(k) was available for Bob at work. That was nearly 25 years ago. It wasn't always easy but it was deducted automatically. If it wasn't in the bank account, I didn't have it to spend.
Saving regularly over time.
'til later
Saturday, February 23, 2008
IRS Answers
From the horse's mouth. Some answers to our rebate questions.
Definition of child: "Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. To qualify a child must be under age 17." (That is 16 or younger as 12/31/07.)
Will I receive a paper check in May? It could be quicker. "Stimulus payments will be direct deposited for taxpayers who select that option when filing their 2007 tax returns. Taxpayers who already filed and requested direct deposit won't need to do anything else to receive the stimulus payment. Taxpayers who did not request direct deposit for their 2007 refund will receive a paper check by mail. The IRS reminds taxpayers who haven't filed their 2007 returns yet that direct deposit is the fastest way to get both regular refunds and stimulus payments."
This year you can have tax refunds split between bank accounts by amount as long as the ID numbers match. Possibly a chunk to the passbook where the spouse won't see it? Here's more from the IRS.
"If you elected to split your refund between several accounts, you will not receive your stimulus payment by direct deposit. Instead, you will receive a paper check."
And, the question I have been asking everyone. Is this $ taxable on my 2008 tax filing: "No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received."
Did you catch that? This eligibility will stretch into next year? More government bureaucracy?
There are the results of my latest rebate (stimulus) checks.
'til later
Definition of child: "Eligible taxpayers who qualify for a payment may receive an additional $300 for each qualifying child. To qualify a child must be under age 17." (That is 16 or younger as 12/31/07.)
Will I receive a paper check in May? It could be quicker. "Stimulus payments will be direct deposited for taxpayers who select that option when filing their 2007 tax returns. Taxpayers who already filed and requested direct deposit won't need to do anything else to receive the stimulus payment. Taxpayers who did not request direct deposit for their 2007 refund will receive a paper check by mail. The IRS reminds taxpayers who haven't filed their 2007 returns yet that direct deposit is the fastest way to get both regular refunds and stimulus payments."
This year you can have tax refunds split between bank accounts by amount as long as the ID numbers match. Possibly a chunk to the passbook where the spouse won't see it? Here's more from the IRS.
"If you elected to split your refund between several accounts, you will not receive your stimulus payment by direct deposit. Instead, you will receive a paper check."
And, the question I have been asking everyone. Is this $ taxable on my 2008 tax filing: "No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received."
Did you catch that? This eligibility will stretch into next year? More government bureaucracy?
There are the results of my latest rebate (stimulus) checks.
'til later
Friday, February 22, 2008
Glass Half Empty?
Bush's tax cuts are doomed. They will be history in another year or so. I doubt if the Dems allow them to run their course into 2010.
The rich benefited from those cuts. The rich helped the rich. The rich are the only ones who want the cuts to remain and be made permanent.
Let's take a look at the middle class. Say a couple makes $50,000 jointly. In 2000 they were in the 28% bracket. Which equals $14,000.
This year, the same couple making the same $50,000 are living under the 15% bracket or will pay $7,500. That's $6,500 more in their pockets. For these hard working folks the savings each year is nearly half.
Their cup is fuller. Why is the case not made for the middle guy? Are they ignorant of the effect the expiring of the cuts or the removal of the cuts will have on their lives? Are their pockets not fuller now?
Maybe this couple is young and have little idea what they will be paying should the rates be increased or left to expire. I'm sure they do not consider themselves rich; however, they will consider themselves poor when their take home pay is reduced by over $500 a month.
Just a view from the other side. The middle class.
'til later
The rich benefited from those cuts. The rich helped the rich. The rich are the only ones who want the cuts to remain and be made permanent.
Let's take a look at the middle class. Say a couple makes $50,000 jointly. In 2000 they were in the 28% bracket. Which equals $14,000.
This year, the same couple making the same $50,000 are living under the 15% bracket or will pay $7,500. That's $6,500 more in their pockets. For these hard working folks the savings each year is nearly half.
Their cup is fuller. Why is the case not made for the middle guy? Are they ignorant of the effect the expiring of the cuts or the removal of the cuts will have on their lives? Are their pockets not fuller now?
Maybe this couple is young and have little idea what they will be paying should the rates be increased or left to expire. I'm sure they do not consider themselves rich; however, they will consider themselves poor when their take home pay is reduced by over $500 a month.
Just a view from the other side. The middle class.
'til later
Thursday, February 21, 2008
Gas Bill
Our gas bill came yesterday. It is $100 more than January's. It has been cold. Frigid. Thank goodness for global warming.
Right after I reset the thermostat to 65, I got out last month's invoice to compare and then I saw the difference. The reading in mid-January was an estimate and the mid-February reading was actual.
I laughed. Maybe I should send them an estimated amount this month and catch up with them in March. I know that wouldn't float but for our budgeting I should have been more careful when I read last month's bill.
We won't be eating out this weekend but that's because our budget is important and keeping to it will pay off in the summer when we vacation.
'til later
Right after I reset the thermostat to 65, I got out last month's invoice to compare and then I saw the difference. The reading in mid-January was an estimate and the mid-February reading was actual.
I laughed. Maybe I should send them an estimated amount this month and catch up with them in March. I know that wouldn't float but for our budgeting I should have been more careful when I read last month's bill.
We won't be eating out this weekend but that's because our budget is important and keeping to it will pay off in the summer when we vacation.
'til later
Wednesday, February 20, 2008
Aspen Times
There's a weekly newspaper in Aspen that carried an article on February 9 written by Gary Hubbell. You can read it on line at http://www.aspentimes.com/.
This article has received over 300 responses.
Gary writes about a segment of the population that gets no attention from the presidential candidates. They all pander to special groups like single parents, illegals, gays, etc. but few address the group Gary calls Angry White Men.
Mr. Hubbell describes a segment of the population that votes every time. His category includes all ethnic backgrounds, working classes, and religions. He speaks of men who work hard, ask for a level playing field, come from all political viewpoints, and will vote down Hillary with her victim approach and inability to offer a straight answer to honest questions regarding her gifting his tax dollars to folks who refuse to do anything for themselves.
The Angry White Man is not soft, helpless, or selfish. He's not racist but willing to give all a fair chance if they work hard, play by the rules, and learn English.
Will this group decide the outcome in November? A majority of them voted for George W.
'til later
This article has received over 300 responses.
Gary writes about a segment of the population that gets no attention from the presidential candidates. They all pander to special groups like single parents, illegals, gays, etc. but few address the group Gary calls Angry White Men.
Mr. Hubbell describes a segment of the population that votes every time. His category includes all ethnic backgrounds, working classes, and religions. He speaks of men who work hard, ask for a level playing field, come from all political viewpoints, and will vote down Hillary with her victim approach and inability to offer a straight answer to honest questions regarding her gifting his tax dollars to folks who refuse to do anything for themselves.
The Angry White Man is not soft, helpless, or selfish. He's not racist but willing to give all a fair chance if they work hard, play by the rules, and learn English.
Will this group decide the outcome in November? A majority of them voted for George W.
'til later
Tuesday, February 19, 2008
Seasonal Job
I work a seasonal job for a local large CPA group. I started last week. I give each personal tax return a final review using a checklist. I make all copies and add the metal. That is, I staple pages together and connect appropriate envelopes with paperclips.
I enjoy the work and the atmosphere. There are 6 CPAs plus 2 accountants and support staff. I have access to the tax books in the library. While I handle the 800+ personal tax returns, the office is busy with corporate, partnership, trust, and estate returns as well.
I work as needed during the season. That is usually 2 days a week for the first month and 4-5 days for the last 4 or 5 weeks. I like that there's an end to it, a deadline.
Already I have seen a W2 with wages over $360,000. I saw a W2 where the man earned about $80,000 and put $12,000 into his company's plan - 401(k) or the like. I've seen several returns with over $12,000 in mortgage interest claimed on Schedule A. Over the season I will see several with more than that in real estate taxes.
I am always curious about the little or complete lack of interest and dividends on returns where the earned wages exceed $250,000. The $ must have passed quickly through a bank and on to an annuity? A gold or silver investment? Real estate? Credit debt? Some investment without dividend earnings?
'til later
I enjoy the work and the atmosphere. There are 6 CPAs plus 2 accountants and support staff. I have access to the tax books in the library. While I handle the 800+ personal tax returns, the office is busy with corporate, partnership, trust, and estate returns as well.
I work as needed during the season. That is usually 2 days a week for the first month and 4-5 days for the last 4 or 5 weeks. I like that there's an end to it, a deadline.
Already I have seen a W2 with wages over $360,000. I saw a W2 where the man earned about $80,000 and put $12,000 into his company's plan - 401(k) or the like. I've seen several returns with over $12,000 in mortgage interest claimed on Schedule A. Over the season I will see several with more than that in real estate taxes.
I am always curious about the little or complete lack of interest and dividends on returns where the earned wages exceed $250,000. The $ must have passed quickly through a bank and on to an annuity? A gold or silver investment? Real estate? Credit debt? Some investment without dividend earnings?
'til later
Monday, February 18, 2008
Talking Again
Bob and I are talking again. With our taxes nearly done, we have an idea of our refund. We're talking again about replacing one of our old vehicles. The youngest is 8 years old. Everyone who knows us, knows we talk a lot before we act.
We talked about doing something with our old screened porch for 15 years before we converted it to a three-season room. We talked for 30 years of living on a lake. We serious talked about that dream for 2 years before we found our place.
Now, I need to push for a visit to a car lot. We'll do that on a Sunday. We'll peek through windows and compare stickers. I already have visited websites and have literature from the two I have in mind. I'm hoping we'll replace my 12 year old minivan. Fingers crossed.
I'll keep you posted. Maybe this Sunday after church it will be better weather to walk around the Dodge and Honda dealers.
Meanwhile, I'll work on a list of my wants and start dreaming.
'til later
We talked about doing something with our old screened porch for 15 years before we converted it to a three-season room. We talked for 30 years of living on a lake. We serious talked about that dream for 2 years before we found our place.
Now, I need to push for a visit to a car lot. We'll do that on a Sunday. We'll peek through windows and compare stickers. I already have visited websites and have literature from the two I have in mind. I'm hoping we'll replace my 12 year old minivan. Fingers crossed.
I'll keep you posted. Maybe this Sunday after church it will be better weather to walk around the Dodge and Honda dealers.
Meanwhile, I'll work on a list of my wants and start dreaming.
'til later
Sunday, February 17, 2008
Rebate
The question that lingers: is the rebate check a taxable event. Will we include it on our 2008 tax returns and will it be taxed as ordinary income.
I have heard talking heads mention this. One said that the last rebate - early in the decade - was an advance on our next year's refund and was not federally taxed. He said that 8 or 9 states did consider it taxable.
Someone else I read says that it is not clear if it will be taxed. Possibly it will be.
So? Do we spend (we are instructed and expected to spend this $ to stimulate and save our economy) all of it or reserve about 40% to pay the state and the feds?
Which ever, bring it on. I'll work on our taxes this afternoon.
'til later
I have heard talking heads mention this. One said that the last rebate - early in the decade - was an advance on our next year's refund and was not federally taxed. He said that 8 or 9 states did consider it taxable.
Someone else I read says that it is not clear if it will be taxed. Possibly it will be.
So? Do we spend (we are instructed and expected to spend this $ to stimulate and save our economy) all of it or reserve about 40% to pay the state and the feds?
Which ever, bring it on. I'll work on our taxes this afternoon.
'til later
Saturday, February 16, 2008
Post Sales
Post holiday sales can be huge. Candy selling for $10 on Thursday (Valentine's Day) is marked down 1/2 by the next morning!
This happens the day after Christmas on wrap, cards, decorations, lights, etc. The day after Easter (if the Orthodox Easter doesn't follow) on baskets, candy, and decorations are 1/2 off. And Halloween as well.
Yesterday Marnie and I scooped up bags of candy 1/2 off at Target. The displays were right next to Easter candies that were full price. The same candy with different wrappers were twice as much.
We each bought 5 or 6 bags. Our church has a huge Easter Egg Hunt on March 15. We stuff plastic eggs with individually wrapped candies. The kids have a great time. We have them open their eggs and we recyle them the next year.
Twice the bang for our buck!
'til later
This happens the day after Christmas on wrap, cards, decorations, lights, etc. The day after Easter (if the Orthodox Easter doesn't follow) on baskets, candy, and decorations are 1/2 off. And Halloween as well.
Yesterday Marnie and I scooped up bags of candy 1/2 off at Target. The displays were right next to Easter candies that were full price. The same candy with different wrappers were twice as much.
We each bought 5 or 6 bags. Our church has a huge Easter Egg Hunt on March 15. We stuff plastic eggs with individually wrapped candies. The kids have a great time. We have them open their eggs and we recyle them the next year.
Twice the bang for our buck!
'til later
Friday, February 15, 2008
Needs Fixing
Wow! 35% of our total US budget is for senior citizens costs!
Non senior households pay an average of $10,673 toward senior costs!
Is this not culturally destructive?
The Boomers are beginning to collect. I can predict a tsunami wave of increased expenditures over the next 15 years! If I can, doesn't everyone know this?
According to USA Today's article yesterday, the government-paid benefits per senior for 2007 was $27,289. Wow!
For the first time ever medical, nursing care, and nursing home care costs exceeded Social Security payments!
Take a moment and digest these figures.
Our wise leaders have borrowed from the Social Security trust fund for decades. Is this forced payback? What can we do? Doing nothing is not the answer.
My Bob will be 62 in 3 years. Our turn.
'til later
Non senior households pay an average of $10,673 toward senior costs!
Is this not culturally destructive?
The Boomers are beginning to collect. I can predict a tsunami wave of increased expenditures over the next 15 years! If I can, doesn't everyone know this?
According to USA Today's article yesterday, the government-paid benefits per senior for 2007 was $27,289. Wow!
For the first time ever medical, nursing care, and nursing home care costs exceeded Social Security payments!
Take a moment and digest these figures.
Our wise leaders have borrowed from the Social Security trust fund for decades. Is this forced payback? What can we do? Doing nothing is not the answer.
My Bob will be 62 in 3 years. Our turn.
'til later
Thursday, February 14, 2008
Patriot?
Do you recall when Obama was asked why he didn’t wear a flag lapel pin? Do you recall his response in October?
He said he will no longer wear a US flag pin. His explanation was lengthy including it being a decision made in part because of the Iraq War. I will "tell the American people what I believe will make this country great and that will be a testimony of my patriotism."
Senator Obama has a problem placing his hand over his heart during the singing of the national anthem. What does that tell us?
What else have we learned about the Senator’s loyalties. His campaign office in Houston displays a huge flag of Cuba with the picture of Che Guevara superimposed on it.
Who? El Che. A Marxist revolutionary socialist born in the 1920’s in South America. He traveled much of the world promoting his beliefs. After a huge success in the revolution in Cuba taking part in the murders of thousands of Cubans, he left in 1965 to participate in revolutions in Congo and Bolivia. He was executed there in 1967.
Guevara has become an icon for socialistic revolutions.
Now, what do we know about the junior Senator from Illinois? No flag, no respect for anthem, honors socialism out right.
‘til later
He said he will no longer wear a US flag pin. His explanation was lengthy including it being a decision made in part because of the Iraq War. I will "tell the American people what I believe will make this country great and that will be a testimony of my patriotism."
Senator Obama has a problem placing his hand over his heart during the singing of the national anthem. What does that tell us?
What else have we learned about the Senator’s loyalties. His campaign office in Houston displays a huge flag of Cuba with the picture of Che Guevara superimposed on it.
Who? El Che. A Marxist revolutionary socialist born in the 1920’s in South America. He traveled much of the world promoting his beliefs. After a huge success in the revolution in Cuba taking part in the murders of thousands of Cubans, he left in 1965 to participate in revolutions in Congo and Bolivia. He was executed there in 1967.
Guevara has become an icon for socialistic revolutions.
Now, what do we know about the junior Senator from Illinois? No flag, no respect for anthem, honors socialism out right.
‘til later
Wednesday, February 13, 2008
President Obama
We all know President Obama's message is change. He is very inspiring and charismatic. He's easy on the eyes as well.
Now, what do I know of his plans? What specifically can we expect from him?
From The Kiplinger Tax Letter: "Obama's maximum rates on dividends and gains would jump to near 25% [currently now maxed at 15%] and tax dividends as ordinary income." "Obama opposes full repeal of the AMT." "Obama opposes full repeal of the estate tax but hasn't offered any specifics." "...would close loopholes used by oil and gas firms." "Obama would tax employers that don't offer meaningful health coverage to workers."
We know President McCain has vowed to keep Bush's tax rates. He also vowed to secure the borders even though he very much wants amnesty for most illegals. McCain wants to repeal the AMT. He talks of offering a credit up to $5,000 for healthcare purchases. McCain wants to increase the estate tax exemption to $10 million and a lowering of corporate top rate from 35% to 25%.
I find Huckabee's plan interesting. He would abolish the IRS. His near 30% national sales tax makes sense in that business taxes are built into all that we purchase anyway - income tax, payroll tax, unemployment tax, excise tax. I could go for that if it would mean everyone's retirement accounts (IRA, 401k, etc) would have all those strings released. All funds available without consequence and tax.
It's all very interesting to consider and worry about.
'til later
Now, what do I know of his plans? What specifically can we expect from him?
From The Kiplinger Tax Letter: "Obama's maximum rates on dividends and gains would jump to near 25% [currently now maxed at 15%] and tax dividends as ordinary income." "Obama opposes full repeal of the AMT." "Obama opposes full repeal of the estate tax but hasn't offered any specifics." "...would close loopholes used by oil and gas firms." "Obama would tax employers that don't offer meaningful health coverage to workers."
We know President McCain has vowed to keep Bush's tax rates. He also vowed to secure the borders even though he very much wants amnesty for most illegals. McCain wants to repeal the AMT. He talks of offering a credit up to $5,000 for healthcare purchases. McCain wants to increase the estate tax exemption to $10 million and a lowering of corporate top rate from 35% to 25%.
I find Huckabee's plan interesting. He would abolish the IRS. His near 30% national sales tax makes sense in that business taxes are built into all that we purchase anyway - income tax, payroll tax, unemployment tax, excise tax. I could go for that if it would mean everyone's retirement accounts (IRA, 401k, etc) would have all those strings released. All funds available without consequence and tax.
It's all very interesting to consider and worry about.
'til later
Tuesday, February 12, 2008
File 'em
Get your taxes filed by April 15. There's $ in it!
According to the Chicago Tribune, what you need to do to get your government rebate is "people must file a 2007 tax return with a Social Security number for each person listed."
They go on to explain that singles get $300 and couples get $600 plus $300 per child. They did not use the term dependent and gave no age limit on "child."
There are income limits that phase out the rebate. For singles that is $75,000 and for couples $150,000. Is this wealth discrimination?
So, get those tax returns filed!
'til later
According to the Chicago Tribune, what you need to do to get your government rebate is "people must file a 2007 tax return with a Social Security number for each person listed."
They go on to explain that singles get $300 and couples get $600 plus $300 per child. They did not use the term dependent and gave no age limit on "child."
There are income limits that phase out the rebate. For singles that is $75,000 and for couples $150,000. Is this wealth discrimination?
So, get those tax returns filed!
'til later
Monday, February 11, 2008
New Old Bank
Our bank (Midamerica Bank) was purchased by National City and the transfer was finalized over the weekend. All the navy and white signs are not replaced with green ones.
Today was the first day I could access our accounts on line. I had received a letter with my new log-in ID. It said my temporary password would arrive in a few days but I didn't get it.
So, with some help over the phone, I was able to answer enough questions on line that I was allowed in and I reset my password. All set.
We have been researching other banks looking for one that will allow what National City will, calling them grandfathered. We have free checking with no minimum balance and earning a little interest.
We have no minimum balance on our passbook savings account either. I hope this stays the same. Its interest rate is barely more than the checking account.
We went into our favorite branch bank on Friday and chatted with one of the familiar tellers. She said no one there was being let go and we would recognize the same faces.
We're hoping things remain the status quo.
'til later
Today was the first day I could access our accounts on line. I had received a letter with my new log-in ID. It said my temporary password would arrive in a few days but I didn't get it.
So, with some help over the phone, I was able to answer enough questions on line that I was allowed in and I reset my password. All set.
We have been researching other banks looking for one that will allow what National City will, calling them grandfathered. We have free checking with no minimum balance and earning a little interest.
We have no minimum balance on our passbook savings account either. I hope this stays the same. Its interest rate is barely more than the checking account.
We went into our favorite branch bank on Friday and chatted with one of the familiar tellers. She said no one there was being let go and we would recognize the same faces.
We're hoping things remain the status quo.
'til later
Sunday, February 10, 2008
Gov't Rebate
The rebates will cost the government deficit a cool $100 BILLION!
We are the government! How are we going to pay back this gift to ourselves?
Grab your wallets. Our taxes are going up.
President Obama will get these increases through within the first month of his administration. There's no doubt. This is a sure bet.
The same thing will happen should we have President Rodham or President McCain in the White House.
'til later
We are the government! How are we going to pay back this gift to ourselves?
Grab your wallets. Our taxes are going up.
President Obama will get these increases through within the first month of his administration. There's no doubt. This is a sure bet.
The same thing will happen should we have President Rodham or President McCain in the White House.
'til later
Saturday, February 9, 2008
Entertainment
Our budget includes a category for entertainment. Most of our expenses are for cable TV. We also count going out for a nice meal and movie tickets in this line item.
Last night I enjoyed an evening with a friend. We enjoyed a fast food burger together on our way to a play. An evening costing less than $20.
There's a children theater group in the county that puts on 4 or 5 plays a year. One boy from our church has been involved in the productions for 2 years now. I enjoy seeing the plays and appreciate all the hours of work and dedication of parents.
Last night's play was Godspell. One set and about 85 students (grade school through high school) singing, dancing, and speaking. Great job.
I share this as an example of a fine evening of entertainment with modest costs. Check your local arts section of the newspaper. There are many options you will find rewarding and entertaining.
Many communities have museums, local colleges, and even bus excursions to take in a play. This is a great season to enjoy indoor culturally enriching events.
'til later
Last night I enjoyed an evening with a friend. We enjoyed a fast food burger together on our way to a play. An evening costing less than $20.
There's a children theater group in the county that puts on 4 or 5 plays a year. One boy from our church has been involved in the productions for 2 years now. I enjoy seeing the plays and appreciate all the hours of work and dedication of parents.
Last night's play was Godspell. One set and about 85 students (grade school through high school) singing, dancing, and speaking. Great job.
I share this as an example of a fine evening of entertainment with modest costs. Check your local arts section of the newspaper. There are many options you will find rewarding and entertaining.
Many communities have museums, local colleges, and even bus excursions to take in a play. This is a great season to enjoy indoor culturally enriching events.
'til later
Friday, February 8, 2008
Romney Out
The governor from Massachusetts is suspending his campaign. This certainly changes that field.
When was the last presidential campaign that pit senator against senator? My memory doesn't go back far enough.
Generally, it has been stated, senators do not make great presidents. I guess we will find out, won't we?
'til later
When was the last presidential campaign that pit senator against senator? My memory doesn't go back far enough.
Generally, it has been stated, senators do not make great presidents. I guess we will find out, won't we?
'til later
Thursday, February 7, 2008
In Death
Dad's trust has been executed. Final filings are in the mail. In death, we 5 kids know once again his love.
Our mother died in 1998 from lung cancer. [Don't smoke. It is a terrible way to die.] At her passing, her assets transferred to Dad as surviving spouse.
Soon after all those transfers were completed, Dad met with an attorney, one of my sisters, and my brother. Dad set up a Revocable Living Trust and placed all his assets into the trust.
Dad assigned those offspring as co-trustees and signed forms that named my two other sisters as health advocates. He granted power of attorney to The Blond, the sister with an accounting degree and one of the trustees.
Let's see. That leave me, the oldest, to observe from a distance. At the time, I was the only out-of-town kid. Plus, Dad knew I'd be asking questions and demand clarification from the young ones when they acted on their new powers.
He was wise and he loved us. He knew I would watch from afar and we would have long conversations when I went to visit. Before he sold his home, I would stay with him and we would review things. Last spring, I reviewed his bank accounts and determined he was balancing both correctly. The Blond did his tax returns and I reviewed them. Full disclosure.
Dad passed suddenly in October. Because assets were entrusted, his estate was small. The Blond has worked hours getting things liquidated and checks cut to us 5. This week we finalized the trust filings and soon she will cut final checks.
Thanks, Dad.
'til later
Our mother died in 1998 from lung cancer. [Don't smoke. It is a terrible way to die.] At her passing, her assets transferred to Dad as surviving spouse.
Soon after all those transfers were completed, Dad met with an attorney, one of my sisters, and my brother. Dad set up a Revocable Living Trust and placed all his assets into the trust.
Dad assigned those offspring as co-trustees and signed forms that named my two other sisters as health advocates. He granted power of attorney to The Blond, the sister with an accounting degree and one of the trustees.
Let's see. That leave me, the oldest, to observe from a distance. At the time, I was the only out-of-town kid. Plus, Dad knew I'd be asking questions and demand clarification from the young ones when they acted on their new powers.
He was wise and he loved us. He knew I would watch from afar and we would have long conversations when I went to visit. Before he sold his home, I would stay with him and we would review things. Last spring, I reviewed his bank accounts and determined he was balancing both correctly. The Blond did his tax returns and I reviewed them. Full disclosure.
Dad passed suddenly in October. Because assets were entrusted, his estate was small. The Blond has worked hours getting things liquidated and checks cut to us 5. This week we finalized the trust filings and soon she will cut final checks.
Thanks, Dad.
'til later
Wednesday, February 6, 2008
Lenten Season
Today is Ash Wednesday and the beginning of the Lenten period leading up to Easter, March 23.
Many give up something for the 7 weeks or so. Many deny themselves chocolate or alcohol or swearing or red meat.
I do not give up something although these are all good things to live life without. These folks may save $ if they don't spend it all as a reward post-Lent. Maybe these people are the ones that consume the huge chocolate bunnies.
I prefer to add to my life during this period. I add the discipline of more prayer and reading of scripture. These make my life fuller.
Please partake in your tradition. If you give something up, add something rewarding. Too many folks carry the burden of giving up. I believe the goal is to focus on God and deepen our spiritual journey toward the Cross.
'til later
Many give up something for the 7 weeks or so. Many deny themselves chocolate or alcohol or swearing or red meat.
I do not give up something although these are all good things to live life without. These folks may save $ if they don't spend it all as a reward post-Lent. Maybe these people are the ones that consume the huge chocolate bunnies.
I prefer to add to my life during this period. I add the discipline of more prayer and reading of scripture. These make my life fuller.
Please partake in your tradition. If you give something up, add something rewarding. Too many folks carry the burden of giving up. I believe the goal is to focus on God and deepen our spiritual journey toward the Cross.
'til later
Tuesday, February 5, 2008
Rollover
I rolled an old IRA from Oakmark to Vanguard. It's interesting that I received confirmation from Oakmark dated 1/22/08 stating the amount had been removed from my account.
Vanguard posted the exact amount yesterday after closing. It just seems a long time for a check to be sent from Missouri to Pennsylvania. Or, possibly, the transfer was electronic.
Still, there was a little float time.
It is something to ponder - the float time. My $ was out of my account and somewhere sitting while it waited to be placed in my new account.
It's not a huge amount. Any interest it might have earned over maybe 10 days would not amount to much. But some floats could be hundreds of thousands, or more.
Who gets the float earnings? I know it's not illegal but surely a benefit for someone.
[Super Tuesday - vote if you can]
'til later
Vanguard posted the exact amount yesterday after closing. It just seems a long time for a check to be sent from Missouri to Pennsylvania. Or, possibly, the transfer was electronic.
Still, there was a little float time.
It is something to ponder - the float time. My $ was out of my account and somewhere sitting while it waited to be placed in my new account.
It's not a huge amount. Any interest it might have earned over maybe 10 days would not amount to much. But some floats could be hundreds of thousands, or more.
Who gets the float earnings? I know it's not illegal but surely a benefit for someone.
[Super Tuesday - vote if you can]
'til later
Monday, February 4, 2008
Super Bowl
The NFC won the Super Bowl. Do you hear the Bulls on Wall Street? That's the prediction made on the basis of the league winners of the Big Game.
Therefore, Bob and I were cheering on the New York Giants.
OK, Wall Street, do your bullish things!
Remember: vote tomorrow or keep quiet until November if you are in a Super Tuesday state.
'til later
Therefore, Bob and I were cheering on the New York Giants.
OK, Wall Street, do your bullish things!
Remember: vote tomorrow or keep quiet until November if you are in a Super Tuesday state.
'til later
Sunday, February 3, 2008
New Deals?
FDR's New Deal provided government projects that employed thousands and thousands of unskilled laborers including my father-in-law who worked a time under a CCC project.
The Congress struggled wanting to balance the budget with extremely low revenues. [Note: Until 1942 only the richest 3% paid any income tax.]
Many of FDR's staff including Lewis Douglas, the Director of Budget from 1933-34, who hated the relief programs. He knew the programs reduced business confidence, threatened the government's future credit, and had the "destructive psychological effects of making mendicants of self-respecting American citizens."
There's an article by Jim Powell of the CATO Institute that claims the New Deal harmed poor citizens the worst. It raised billions of $ by increasing excise taxes, personal income taxes, inheritance taxes, corporate income taxes, holding company taxes, and "excess profits" taxes.
The largest piece of revenue came from excise taxes on consumer products, hitting the middle and poor citizens. Excise taxes were imposed on the like of alcohol, cigarettes, matches, chewing gum, margarine, tires, telephone, playing cards, electricity, and radios.
Until 1937, the excise taxes exceeded the revenue of individual income taxes and corporate income taxes. Since only the rich were paying significant income tax, the poor and less affluent were underwriting most of the New Deal deals.
With higher corporate taxes and the additional burden of Social Security tax, employers had less money for growth and jobs.
The National Industrial Recovery Act of 1933 cut back production and forced wages above market levels making it more expensive to hire people. Blacks alone were estimated to have lost over 500,000 jobs. The Agricultural Adjustment Act cut back farm production and devastated black tenant farmers who needed work. The National Labor Relations Act of 1935 gave unions above market wages which triggered layoffs and aided the depression of 1938.
To underwrite the work projects, the government leveled more excise taxes on the consumer who had less $ to spend on food, cars, and things that would have stimulated the economy.
FDR also banned discounting by signing the Anti-Chain Store Act of 1936 and the Retail Price Maintenance Act of 1937. Does this sound like socialism or communism to you?
Good intentions but real damage was done. Can we learn from history? What if WWII hadn't drawn us in and caused us to become producers again?
'til later
The Congress struggled wanting to balance the budget with extremely low revenues. [Note: Until 1942 only the richest 3% paid any income tax.]
Many of FDR's staff including Lewis Douglas, the Director of Budget from 1933-34, who hated the relief programs. He knew the programs reduced business confidence, threatened the government's future credit, and had the "destructive psychological effects of making mendicants of self-respecting American citizens."
There's an article by Jim Powell of the CATO Institute that claims the New Deal harmed poor citizens the worst. It raised billions of $ by increasing excise taxes, personal income taxes, inheritance taxes, corporate income taxes, holding company taxes, and "excess profits" taxes.
The largest piece of revenue came from excise taxes on consumer products, hitting the middle and poor citizens. Excise taxes were imposed on the like of alcohol, cigarettes, matches, chewing gum, margarine, tires, telephone, playing cards, electricity, and radios.
Until 1937, the excise taxes exceeded the revenue of individual income taxes and corporate income taxes. Since only the rich were paying significant income tax, the poor and less affluent were underwriting most of the New Deal deals.
With higher corporate taxes and the additional burden of Social Security tax, employers had less money for growth and jobs.
The National Industrial Recovery Act of 1933 cut back production and forced wages above market levels making it more expensive to hire people. Blacks alone were estimated to have lost over 500,000 jobs. The Agricultural Adjustment Act cut back farm production and devastated black tenant farmers who needed work. The National Labor Relations Act of 1935 gave unions above market wages which triggered layoffs and aided the depression of 1938.
To underwrite the work projects, the government leveled more excise taxes on the consumer who had less $ to spend on food, cars, and things that would have stimulated the economy.
FDR also banned discounting by signing the Anti-Chain Store Act of 1936 and the Retail Price Maintenance Act of 1937. Does this sound like socialism or communism to you?
Good intentions but real damage was done. Can we learn from history? What if WWII hadn't drawn us in and caused us to become producers again?
'til later
Saturday, February 2, 2008
Tax Forms
Tax Season has begun. You probably have received your W2s. Most of your 1099s will be in your mailbox in the next few weeks - they have until the end of February.
If you are waiting for a K-1 from a trust or a small business, they have much more time to get that info to you. The business has until March 15 and trusts file by April 15.
So, what I'm saying is, know what taxable sources you have to report and wait for the appropriate forms in the mail.
I have a large multi-slot file. I collect the forms as they come. I've just been through it and I know the few documents I need to complete our tax picture for 2007.
Be patient. It's easier to wait than to amend.
'til later
If you are waiting for a K-1 from a trust or a small business, they have much more time to get that info to you. The business has until March 15 and trusts file by April 15.
So, what I'm saying is, know what taxable sources you have to report and wait for the appropriate forms in the mail.
I have a large multi-slot file. I collect the forms as they come. I've just been through it and I know the few documents I need to complete our tax picture for 2007.
Be patient. It's easier to wait than to amend.
'til later
Friday, February 1, 2008
Mutual Funds
We invest mostly in mutual funds. Mutual funds pool together $ from thousands of investors. They can be established to invest in very specific instruments such as healthcare equities only or municipal bonds from the state of California.
Larry Burkett states in his book "Investing for the Future" that there are 3 benefits to using mutual funds for investments.
1) "most allow small incremental investments
2) they provide professional investment management
3) they allow great flexibility through the shifting of funds"
We invest a regular increment each month into a managed fund that holds both bonds and stocks. We do not have the expertise or the time to make decisions about what to buy and what to sell.
We do monitor performances of our mutual funds. Most fund companies issue quarterly performance reports. We also subscribe to Money Magazine and Smart Money which monitor many funds. I have used Morningstar on line to track funds. These are helpful tools when deciding to invest in a mutual fund as well.
The bottom line, we understand the goals of the funds and we monitor performance. We also keep an eye on expenses. Mutual funds have to disclose expenses also.
'til later
Larry Burkett states in his book "Investing for the Future" that there are 3 benefits to using mutual funds for investments.
1) "most allow small incremental investments
2) they provide professional investment management
3) they allow great flexibility through the shifting of funds"
We invest a regular increment each month into a managed fund that holds both bonds and stocks. We do not have the expertise or the time to make decisions about what to buy and what to sell.
We do monitor performances of our mutual funds. Most fund companies issue quarterly performance reports. We also subscribe to Money Magazine and Smart Money which monitor many funds. I have used Morningstar on line to track funds. These are helpful tools when deciding to invest in a mutual fund as well.
The bottom line, we understand the goals of the funds and we monitor performance. We also keep an eye on expenses. Mutual funds have to disclose expenses also.
'til later
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