Quotable Quote

Suze Orman usually closes her program with: "Remember. People first. Then money. Then things."

This is a good reminder for me. Often I get focused on things that need repair or attention. Gutters that need cleaning or a closet that needs to be tackled or weeds that need pulling.

We are told that $ can be a huge issue in a marriage or in a family. How $ is handled is a key cornerstone to a good marriage. Finances can be a bloody battle field.

We've all seen or heard of families who end up in court fighting over estates left behind or wills that are attested. Siblings part with the stash but relationships are left unhealed.

Priority check.

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Closed Account

We received a small check yesterday from Schwab. We have closed our account with them. Back in 2001 we opened a brokerage account with an attached money market checking account. They have an office within 10 miles of our home and their fees were reasonable.

About 2 years ago we noticed on our Schwab statement that the checking account was making very little interest. In fact, our $ there was making less than our local bank passbook account.

After a phone call informing us that the account was not a money market account but rather a holding account, we moved most of the $ out. Within 3 months we had another brokerage account established at Vanguard and transferred our stocks out of Schwab. Yesterday's check was to legally close the account.

Shame on us for not noticing the interest rate.

When your quarterly statements begin to arrive the first 2 weeks of July, take a close look at what your $ is actually making and doing for you. No one can care about your $ as much as you can.

This ia also a good time to examine all of your holdings and to rebalance your portfolio in regards to stocks versus bonds.

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Staying Home

Ric Edelman has an article on his website regarding working parents. His site is ricedelman.com. He makes the case pro and con for one spouse to stay home with the children.

Financially, there are many costs associated with working beyond childcare, which can vary. There are commuting costs, clothing costs, lunch costs, and obligatory work collections and gifts.

He also mentions the mental healthiness of working, the adult stimulation, and the professional continuity of remaining on the job.

Having stay at home with our child, I can state that it was the best decision and an easy one for us. Bob and I never relied on my income to pay regular bills. We saved a large portion of it.

What we didn't plan for was his need to move. About 3.5 months before our daughter's birth, Bob desire to live in the country came up. I am a city gal. We struck a compromise with a subdivision with large lots just inside the city limits. We moved 3 weeks before Marney's birth.

A new home, a new monthly house payment. How did we handle it? Things were tight but still within his income. Because we were both committed to making ends meet on his salary, neither of us spent $ needlessly. Vacations were times to visit family; gifts to each other were minimal; we drove older cars; and we got by with little or no reserve for the first few years.

It is not an easy decision to stay home full time. It is one a couple must make together and commit to together.

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Rates Increase

The government has approved new mileage rates beginning July 1. With oil over $140 per barrel it's about time.

Charitable trips remain at $.14 per mile. These miles are claimed on Schedule A of your Form 1040. If you drive to help at a soup kitchen, serve on a PTA committee or event, volunteer at a Habitat for Humanity site, or drop off used clothing at Goodwill, record the date, reason, and miles driven to support your deduction.

Medical and moving miles will increase from $.19 to $.27 per mile. These miles have specific restrictions. Visit IRS.GOV for details.

Business miles which are currently $.505/mile will increase to $.585 beginning Tuesday. These are not commuting miles but miles necessary to earn a living or are reimbursed by an employer.

If you track your business miles on a log because you use your personal car, reset the rate for the second half of the year.

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Amendment Holds

The Second Amendment holds. Like the court could ever overturn an Constitutional Amendment. It does seem they think they can make laws but that's not really their job.

Supreme Court is to interpret and hear cases in light of our laws. Our laws. Laws made by Congress with or without the endorsement of the Administration.

Guns are legal for individuals. Each state has rules regarding registrations but it is not against the law for regular Joe to own a gun.

The question remains regarding Chicago where the only people without guns are good citizens.

Our forefathers divided our system into thirds. The court's part is limited and I think their ruling regarding the rights of our war enemies in our detention facilities is not constitutional.

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National Health Care

Will the Democratic health coverage care for those who make unwise choices? Will it cover smokers who get lung cancer? Will it cover those who develop diabetes due to obesity and poor diet?

Will it cover gang gun shot wounds? Will it cover accident injuries? Will it cover allergies, birth defects, hair loss?

Are we (we are the government) responsible for life choices or do we dictate choices?

Freedom. Will this be redefined or lost completely.

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Moisture Battle

Recently we have enjoyed a few mild days here weather wise. It has been nice to open the windows to catch the breeze and dine out on the deck. Of course, we are approaching July and later this week we will see 90 degrees.

Meanwhile, we are fighting the moisture in the basement. The dehumidifier is running constantly pulling 3 gallons of water out of the air each day.

Both the air conditioner and the dehumidifier are expensive to run but we do both for comfort and to fight the battle with moisture.

As I leave for my day today, I will shut the windows and turn the air conditioner to a reasonable level of 77 degrees. That's cool enough with the fans running and it will kick in and remove more of the moisture in the house.

Utilities are an expense line in the budget that is hard to count on even if you use the offered equal payment plan. Even then, the consumer is responsible for make-up or carried forward increases. I heard that heating oil and gas furnace costs will be over double last winter's.

We will be dipping into our emergency cushion to cover those surprises.

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Improved Odds

If you want to improve the odds that the mutual fund or stock your broker or advisor suggestions by 16%, ask if he or she owns them as well.

A study shows an advisor will make personal choices more carefully than what they advise for their clients. Their motivation to "sell" you an investment likely includes a commission fee for their own pockets.

Does the cook eat his own food?

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How Broke?

Are you so broke you can't pay attention?

Great line from an author named Larry Winget. He has a few books out and is outrageous to see. Check out yourebroke.com or "google" his name.

I have not read his work but I have seen him on TV. I do not recall which program or which station but he's a straight shooter and a colorful character.

He claims he was so broke. I think he's cured that writing and selling books. Another author I enjoy on the radio has been through bankruptcy and lived to make $ off his story, Dave Ramsey.

But think about it. Wouldn't an author tauting some new diet carry more weight (pun) if they had been huge and were now healthy?

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Zillow.com

If your area has been entered into their system, you can check the value of your property or any one's property on zillow.com. From time to time I check the site to see what they think our house is worth.

Of course, this is not an indicator of what we could get for the house. It seems to simply compare houses that are listed or sold nearby.

Over the past year our house "zillow" value has declined about 5.5%. I know this is just another indicator that the market has turned down.

Just another indicator of the economic times.

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No Mystery

Big Brother is watching. Have you considered the trail we leave behind as we go about our days?

Bob and I enjoy CSI and NCIS on tv. The high tech analysis are interesting. We all leave and take as we move around. From hairs which we loose all the time to trace that attaches to our shoe soles, we go around unaware of the trail we leave.

It goes beyond that. We use those frequent shopper discounts at the grocery stores. We use an electronic transponder going through the local tolls. We log in at the ATM machines as we go around the Midwest. We use our cell phones often.

Establishing our trail would not be difficult. Big Brother could be our corroborative witness.

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Stockings Market

It was a hard hit to the stocking manufacturers yesterday. Soon we will see big discounts on pantyhose everywhere. It will be like the incandescent light bulbs. Time to stock up.

Michelle Obama declared yesterday on The View that she does not wear pantyhose. They hurt and she hasn't worn them in years.

For those of us who enjoy the support and smooth even look awarded us by pantyhose, it was a sad day.

I need to clear room in a closet for my stockpile of regular light bulbs and pantyhose. This might be a good day to purchase stock in GE and Silvania.

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Poor Old People

AARP recently reported that senior citizen bankruptcies are on the incline. They state the high costs of health care as the most significant reason.

Since these reports are compiled months before publication, we can imagine food and gas prices are another big factors as well.

Forecasts for natural gas heat for the coming winter are double last winter's costs. Readjust those budgets.

I recently heard that "they" (the smarter voices) say we (in our 50s) will need $1,000,000 with which to retire comfortably.

My father called it living on a fixed income. What is not fixed in retirement are the expenses. Around here real estate taxes have climbed so much over the past decade that if you were retired, it could cause you to relocate.

Keep saving. It looks like frugal must be our mindset from here to the grave.

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Cancelling Subscriptions

I joined an on-line gaming club. For less than $10 a month I had 1 hour trials of all new games and was committed to purchasing 10 games per year at an attractive discount.

After 15 months of this arrangement, I saw that I was not "gaming" as much as I was. I had fulfilled my agreement to purchase 10 games.

I decided to cancel the $10 per month subscription. These contracts are easy to get into and much more difficult to get out of. The website listed no phone numbers so I communicated through their site's "contact us" function.

I received one email regretting my decision and offering a free game. Two days later I received another email detailing that due to the cancellation procedure I would likely pay for one more month due to the partial month. I agreed to that.

Two months later I received another charge on my credit card. I went back to the emails from them and referred to them in another on-site communique. The next day, another email from them. This one apologized for the inconvenience and claimed a credit to my credit card for 3 months.

Two days later I checked my credit card activity on line and there were the three credits.

The lesson is to keep communications until problems are resolved and careful scrutiny of credit card accounts is important. The credits are enough for a partial tank of gas.

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Tax Review

Today is the due date for your second income tax installment if you make estimated tax payments.

As we approach the end of the first half of the year, it is a good time for the others who rely on our employers to withhold income tax to review our withholdings so far. Refer to your last pay stub for year-to-date earnings and withholdings. You can adjust your W4 accordingly.

According to the IRS publication 505 (irs.gov) to avoid penalty, your withholding must be either 90% of your 2008 tax liability or 100% of your 2007 tax liability (Line 63 of Form 1040). The exception is if your 2008 income exceeds $150,000 when you need to cover 110% of your 2007 tax liability.

Of course, using this calculation is easiest if you have completed your 2007 tax returns. Those on extension have until October to complete their 2007 tax returns and thereby qualify for a stimulus check.

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Disliking Vista

For his work, Bob must have an XP operating system. The applications he needs for 2 of his large types of work require XP and neither will work on Vista. People have been trying to get them to work on Vista for nearly 2 years without success. Updated versions of these highly specialized software platforms are not schedule to happen.

We purchased a new computer in October and requested Vista be removed and XP (which we purchased) loaded. That would solve all problems. Once a younger version of an operating system ever been on a machine, an older version can not be loaded. The Geeks at Best Buy didn't know this until we had them try.

We have researched VM or operating one system inside another but the technology is way over our heads. The blogs are full of complicating steps and spotty successes.

So, just now we ordered another laptop, one of the few remaining, with XP operating system. We are back to two laptops to cover his work needs. It's difficult to understand and pay the extreme expense plus the inconvenience he will have traveling with 2 computers. All this because Vista has taken over the world.

Many many Mac users are laughing. But, again, his work requires PC and high speed internet access. We are semi-retired and need tools to do our work.

If you find yourself wondering about XP versus Vista and you need a new computer, hurry up. Dell will only sell XP operating systems loaded on their machines up until June 18.

Disliking Vista.

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Gifting Etiquette

Don't we all love getting gifts. Tomorrow is Father's Day. Our daughter will give Bob a shirt or some fishing supplies. She and her husband are treating us to brunch at their house. Bob will enjoy every minute of it.

We are headed to a wedding this evening. What shall we give Tom and his bride? They have registered, of course, but we are choosing to give cash. We think this way they can complete their registry or use it toward their new home.

I think gifts should be given from the heart and not judged cheap or expensive. What is the correct amount to spend? I believe the answer lies in what we can afford and how close we are to the recipient.

I found an on-line quiz. My score was average. Try it. kiplinger.com/quiz/giftgivingetiquette/

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Prisoner Rights

My husband Bob has an uncle who was a POW (prisoner of war) during WWII. He was held somewhere in France. The family story is that Uncle Paul never spoke of his experiences upon his release.

The Geneva Convention held in the late 1940s set up prisoner expectations of treatment. The US agreed to these specifics and have worked to live up to that agreement.

Yesterday the Supreme Court ruled that our prisoners have rights under our constitution. Many of us are scratching our heads trying to understand such foolishness. Our enemies under our control are treated better than the Geneva Convention basics.

The few prisoners we have released have returned to the battle fields in the Middle East and killed allied troops. It's in the world's interest not to release these enemies.

I know we will all live to regret this court ruling. Here lies the importance of this presidential election. It's not only the war and the economy, it's the Supreme Court seats that will likely open up over the next 4 or 5 years.

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Stretch Your Gas

Just a few reminders that we can all do to save on gas:

Slow down.

Use cruise control on the open road.

Check tire pressure.

Regular maintenance such as changing oil and filters.

Another savings thought: Increase the deductible on your car insurance.

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Uncovered Wealth

I have a small drawer near the kitchen phone where I keep envelopes, stamps, return labels, and miscellaneous greeting cards.

I have a small box in there where I keep postage stamps. There's usually a booklet of 20 stamps right on top. I order my stamps through the mail which saves gas and time waiting in line.

I knew I was getting low on stamps and supplemental stamps since the postal increase. I dug into my stash the other day and was surprised how many old stamps were in the bottom on the box.

Yesterday I bought sheets of $.01 and $.02 stamps enough to bring the uncovered old stamps to the current $.42 need. I had $.29, $.22, $.34 and $.37 stamps.

So, for a while now, everything I mail will have several attached stamps. The few $.22 will be used with ten $.02 stamps. I'll use my uncovered wealth and plaster the envelopes with colorful stamps.

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Fixes

Some fixes cause other problems. The contractor who concreted our crawlspace floor last year left a problem only discovered yesterday.

When the air conditioner is on, the furnace puts off moisture which travels down a hose and into the drain about 14 feet away. The hose comes out the back of the furnace and runs along the back of the framed partial wall in the crawl and through the wall into the sump pump hole.

Bob was smart enough to check this yesterday after we turned on the air conditioning for the first time this season. There was little dripping out the hose end so he tracked it back.

The crawlspace new concrete partially encased the old hose so that it made a wave on its way behind the framed wall. Not good. In fact, an outlet valve was left open and water had run out and behind the wall frame. It is all wet.

The crawlspace man will be here this morning to fix it or we will contact the furnace people to replace the hose and send the crawlspace company the bill.

One fix may hide or cause other problems which are not discovered for months or even years.

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Always Learning

I watched a mother duck this morning walking along the seawall. She had 2 babies with her and 2 were swimming along keeping her in sight. She walked down to the neighbors where there is a shore and the 2 in the water climbed out.

Then the quintet marched back south along the seawall. Mother jumped into the water and one by the one the little ones gained the courage to make the drop, flopping their little wings like crazy. It was all a lesson.

It's that way with parents, always teaching. Beyond instructions and encouragements, the parents are teaching by example. We all have our parent's marriage(s) as examples of love and our childhood homes as blueprints for our own homes.

What have we taught our children about $? Our daughter's answer was "just go to the bank, they have $." That's what she saw. We drove through and I counted the bills and put them in my wallet. She did not understand the paperwork exchange.

It was a cute idea and eventually she understood more clearly about banking and eventually credit cards and taxes.

We teach by example and we also need to instruct when it comes to $. There are many resources available which are age appropriate. Just let your children see how you handle it, where and how you spend it, and show them how you save it and where.

There's no need for full disclosure. It's more with the attitude and how you as parents discuss and decide about purchases, gifts, and savings.

The ducklings need to exercise their wings and gain courage making the leap off the seawall. Mother is teaching vital life skills.

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Guaranteed Premiums

When I can find his show on the radio, I listen to Dave Ramsey. He has a daily show plus several books and an educational seminar package. He is big on paying off debt and encouraging folks to only owe on their house.

Even there, he says the paid off mortgage is a status symbol better than a BMW.

Dave, like many finance advisers who are not selling investment or insurance products, encourages term life insurance. Term life insurance is just insurance with no investment or cash value build up.

He tells his listeners to buy term life insurance plans offering 10,15, 20 and 30 year guaranteed level premiums. Dave usually mentions 20 year guaranteed level.

Why would he recommend level premiums. Term insurance is often sold a year at a time. The older one gets, the closer the actuaries figure we are to the grave and the insurance companies are to paying out.

A level premium is easier to budget year to year. While you carry term coverage, Dave encourages retirement and other investment strategies.

The old life policies with cash value build-ups were sold as supplements to retirement. But they are not good investments. These days mutual funds and a diverse investment strategy trump whole life and universal life policies.

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No Drilling

The market goes down and the cost of crude oil goes up. Possibly $150 per barrel by July 4. Ouch!

Is there no end in sight? Is there nothing our great nation can do?

Did you now that China and Mexico are drilling off the shores of Florida but we, the United States of America, can not? China is drilling. Do they have a regulating body regarding safety and oil spills?

Katrina hit the Gulf of Mexico in 2006. Not one of "our" drilling rigs leaked a drop of oil. There were no failures of equipment or accidents. What do you think the Chinese rigs are like?

We are the United States of America with our hands tied. Ridiculous and potentially environmentally hazardous.

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Further Education

We were talking with neighbors about their son who is a Junior at Purdue. The conversation went to the costs now versus when our daughter attending the University of Illinois and the combination of student debt and parent debt.

I was reminded of Marney's school decision. She was interested in genetics and would begin with a degree in biochemistry. Her choice between Purdue and U of I came down to $. Out-of-state tuition and expenses would have been $17,000 per year in 1997.

Our neighbors said Purdue is now $17,000 per year for in-state. That would be $68,000 for 4 years. If we're honest, that's far more than the average graduate will make a year.

My nephew attended a trade school in the south for 15 months. He's not making tons of $ but he's supporting himself at age 20 using the skills and experiences received hands-on at that school.

Career and education choices are big ones. Going into debt is just as big.

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Outdated Router

We decided to go wireless. It's about time. I found a Linksys on sale for $50 at Best Buy. The price on this model had come down from near $70. The salesperson said there is new technology and new models.

This router meets our needs and works with Bob's laptop which has Vista.

We're not the type that needs the latest and fastest. We just want need to do our work and this little router does the trick.

Saving $20 feels good too.

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Gas Prices

It appears the gas prices have settled down a bit since Memorial Day weekend. We bought $3.89/gallon in southern Ohio the other day.

I think this may be a supply and demand reaction. Prices are often higher during peak driving times. Now, the demand will be less and the market settles down a few pennies per gallon.

By now most of us are rationing our car trips. If I have to go out for an errand, I connect a few more stops along the way such as picking up dry cleaning, doing my banking, etc. I'm not alone. Many I know are mindful of trips out.

Commuting miles are necessary miles but many are investigating mass transit. There was a picture in the paper of lines forming to board a bus in downtown Fort Wayne. Of course, the gas costs are affecting the bottom lines on all the transit authorities.

It seems like a "Catch 22".

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Smoking for the Rich

New York State now get $2.75 per pack of cigarettes. A pack, a whole 20 cigarettes, costs nearly $10 in New York City. That's $100 for a carton!

Cigarettes are for the rich. A status symbol.

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Mortgages

I know someone who is facing an adjustment with their ARM mortgage. Their monthly payment will increase but not as much as it could have if the Feds had not made their interest cuts earlier this year.

My friend decided on this adjustable rate rather than locking in at 5%. This person is too young to remember rates 23 and 24 years ago.

5% beats the new car loan we looked into in March. 5% beats the 13% mortgage we would have had 23 years ago if we had not "bought down" to 9.75%. Seriously, 5% beats most of the mortgage rates over the past 60 years.

I am amazed that with rates at 5% mortgage companies felt the need for creative financing. My friend went to refinance from their 6.5% mortgage and bought into the ARM craze of a few years ago. I hope they will lock into a rate this time.

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Priceless

A large fruit salad, $11.50

Gas for round trip to sister's house, $17

Bait for fishing, $3

Time with family and friends, priceless

Things in life cost. Relationships cost time as well.

Find time with someone you love today. Do not count the cost. Measure it all with love.

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