Give 'em Granite

These days kitchen redo's are huge. Bob and I watch HGTV and marvel at the beautiful kitchens and baths. It seems everyone wants granite. Granite kitchen counters, bathroom surfaces, and even entire entrance floors.

Give me manufactured counters of quartz or Corian.

Uranium and radon gas are found in nature. They are often found in granite. There are homes where the counter tops are giving off 10 times the recommended levels of radon.

There's a fact you likely won't hear from people. I would be concerned about staining the granite counter tops. Not about being exposed to cancer causing radon. Maybe I'd just stay out of the kitchen.

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Too Political

Obama scheduled two visits to military hospitals in Europe last week but cancelled both.

The official answer to why came from his handlers. Such things would be politicized. It was too political to make those visits.

The truth is he was invited and his visits were much anticipated by patients and staff but cameras and news coverage were not allowed.

Too political? Not politically advantageous.

Shame on him. No photo op, no time to visit. Is he Commander and Chief capable and willing?

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Too Careful

We have been too careful. We have worked hard, bought our houses below "what we could afford", put 20% down, made our payments, and have not used lines of credit to cover expenses and purchases.

The car wash worker has purchased way beyond his means, put down the equivalent to first and last month's rent, and has fallen behind on his mortgage for months.

He owes us a thank you. We will be paying the taxes and carrying the extreme burden of the latest bailouts that will help this man and his family.

It's hard to swallow, isn't it?

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Sales Tax

Most states collect tax on sales. Most states consider food and drugs exempt from these taxes.

Then there's Illinois. The state sales tax rate is currently 6.25% on general merchandise and 1% on food and drugs.

So?

Well, then there's additional sales tax collected per municipality and per county.

If you buy a sweater in Chicago, the sales tax collected is currently 10.25%. If you pick up some Tylenol for your aching feet, it will cost you 2.25% more than the sticker price.

Here in Naperville, we pay 7.25% for general merchandise and 1.75% on food and drugs.

Well, that's for most of Naperville. Part of Naperville lies in Will County. The rates in that county are different and if you cross Route 59, you are in Aurora in DuPage County which is 8.25%. The same rate is collected in Aurora within Kane and Will counties but Aurora which lies in Kendall county collects 8.5%.

Does or will sales tax rates influence where you shop?

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Hopeful

Fox News this morning had a financial forecaster on who
stated he sees $3.50 gallon gas by Labor Day!

That's a hopeful thought!

The gentleman said as our demand stays steady or falls, this price can be realized. Statistics like roadway deaths have fallen over the past 2 months. We have changed our driving behaviors such as grouping stops like the bank, grocery store, and dry cleaner together rather making than separate trips out.

Similar changes were noted back in 1972-73 but our behaviors did not change. We must make permanent changes and take serious steps toward alternative energy and harvesting U.S. resources.

Stay hopeful.

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Banking Committee

After less than 30 weeks of working (143 days total) in the US Senate, Obama can not be held to too much responsibility. He’s on the Banking Committee. Did you know that? Can't be true since banking is in such disarray.

That’s what he said. He's on the Banking Committee. It must be the truth as he is the blessed one, the right one, the perfect one.

Oops, he’s not on that committee. I wonder which one he is on? With less than 8 months working at this job, how can he have much responsibility anyway.

It doesn’t matter. He’s applied for another job. He doesn’t need to bother himself with the details of banking or energy or military or anything. He’s moving on to another job.

He’ll probably get a pay increase too.

‘til later

Pay Increase

The minimum wage in Illinois is now $6.55 per hour. Isn't that great for the low skilled? No.

As the wages go up, employers hire less and the unskilled or nominally skilled are crowded out of employment. With industries like airlines and car builders cutting back, there will be a glut of skilled or semi-skilled laborers taking these lower paying jobs.

Also the employer pays the match of Social Security and Medicare withheld which is 7.65%. Plus, he/she covers unemployment both state and federal. In Illinois, the minimum is 1.6% for both. If the industry is a certain kind and/or claims are high against the employer, the state rate can be triple that easy.

So, the $6.55 per hour costs the employer a minimum of 9.25% more for a total of $7.16 per hour. A 40-hour week costs at least $286. That's without benefits such as paid vacation, health, life insurance, disability, workman's comp, pension or retirement.

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Scouting

I was a Girl Scout from Brownie through Senior. In fact, in my family we were very involved in scouting. My dad was an assistant boy scout leader. My mom was a Cub Scout pack leader and then a Girl Scout Cadet leader.

Scouting taught me several things including camping, sewing, volunteering, and cooperating. It also helped me understand the meaning of being prepared.

A successful camping weekend includes hours of planning, gathering supplies, and packing sensibly. Provisions and/or alternative plans are decided. It's always best to have tried to pitch your tent before you arrive at dusk in a remote destination.

A successful retirement must include planning, saving, and investing. But it's best if you have saved an emergency fund first. That's the beginning of the being prepared.

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Probably Seems

It probably seems I am political on my blog that I intend to be encourager for savings, investing, and financial freedom. The thing is our financial futures depend on the politicians at the local, state, and national levels.

While McCain is talking about a summer vacation from federal gas tax, other politicos are considering an increase in gas taxes!

While the government is bailing out (rather guaranteeing) Freddie Mac and Fannie Mae, we all know the bucks stops with us - the taxpayers!

Even with the evidence of Bush's tax cuts bringing down the uncontrollable deficit, everyone who gets face time in the media is so sorry but there's no way except increasing income taxes!

Is this still a nation of the people? or just a nation for the needs of some of the people? If we always subsidize, always lower the bar, always promise, always spend....wait we've been doing that. Has it worked? Less independent people, less self-starters, less confidence, less freedoms. More needs, more weakness, more $ thrown at "it."

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No JFK

I am sharing excerpts from an article written by Doug Patton, a columnist. This article is entitled "BHO is no JFK."

"With several members of the now largely irrelevant
Kennedy family endorsing the most radically
left-wing, least experienced candidate in this
year’s race for president, perhaps it is time to introduce
some reason into the ridiculous argument that
Barack Hussein Obama is the new John Fitzgerald
Kennedy.

JFK supported tax cuts, knowing they would spur
economic growth. BHO thinks he can somehow tax
us into prosperity.

JFK was a foreign policy hawk who stood up to
the Soviet Union and let it be known that the United
States of America was a superpower to be reckoned
with. BHO is a foreign policy wimp whose proclivity
toward appeasement in a very dangerous world
would signal weakness to our enemies and invite
them to attack us.

JFK told us to ask what we could do for our country.
BHO tells us to expect that our country will do
everything for us."

Does Obama strike you as a diplomat? A world leader determined and centered?

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Business Travels

Bob is leaving today for several days in Canada on work. He is taking his passport, some Canadian money left from other visits, a special declaration of motor vehicle liability insurance from our State Farm agent, and a letter stating his business there.

Currently the US/Canadian dollars are nearly equal. His expense report will need little or no adjustment for exchange rates. He will charge most purchases to his company credit card.

The insurance card may help since he will be renting a car in Toronto and driving out to Trenton and Peterborough. He does not purchase insurance through the rental agencies. He'll show his State Farm insurance form and this special card.

He may have to pay $15 to check a bag through. I reminded him to get a receipt. Hopefully they will take American Express or Visa.

Instead of paying to park in the far lots at O'Hare, he'll be picked up in a limo in a few hours. It's cheaper than parking for 6 days and more convenient.

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Correlation

As we have watched the price of oil per barrel step, step, step up, we also saw the car fuels go up, up, up in lock step. Did we not?

The evening's news would report the new price and the next morning the posted price at the Marathon station nearby would have crept up a few pennies per gallon.

This week we have seen the price per barrel slide back a little. The Marathon is still getting the same price it was on Tuesday. What gives?

Are the brokers who bet on higher costs covering their losses?

It seems no matter what, the consumer will pick up the tab. Lucky us.

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Someone's Opinion

Someone bought the space for this expression of his opinion. Freedom of Speech.

I am more moved by the picture of the towers. I always think: "lest we forget." Not a pretty image but let us not forget. How glad I was that day that Al Gore was not our president.

Someone else was caught expressing his opinion. Rev. Jackson's remarks were caught on tape sitting off-set at Fox Network. He lives under the same freedoms but he is embarrassed by his expressions of his opinion.

Here I am most every day expressing my opinions under the same freedoms.

Enjoy yours freedoms today but take care expressing what you want others to hear and know about you.

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Increase Hits

Everything is costing more and more. This morning I heard airline pilots are being asked to fly with less fuel. Less weight means less fuel usage.

Our church has our Vacation Bible School effort the first full week of August. VBS is a huge endeavor by our small congregation to reach children in our neighborhood with the Gospel.

Bob and I were speaking Sunday with this year's director. She has sent out a plea for contributions to cover the costs of food and drink. Our program will be 5 evenings and includes a snack break. She says the costs have nearly doubled.

We are making an effort to attract more children than the 65 we had with us last year which translates into more food expenses.

The Director said the materials except for a few craft supplies have been paid for out of the church's budget. She's wanting more $ to assure healthy and sufficient snacks for the children.

Every where you turn, costs are going up and up. Sounds like inflation.

'til later

Big Lots

It's a sign of the times - lines to check out at the local Big Lots.

Big Lots is an outlet for discontinued or surplus inventories of household items, food, and clothing goods.

They have great deals on greeting cards and seasonal items. Yesterday school supplies were on display near the front while summer seasonal items were moved toward the center back.

I picked up a gallon of bleach for $1.50 and a bottle of ammonia for $1. I was looking for room deodorizers but didn't find what I wanted. I settled for 3 aerosol cans of spray for $1 each.

In the middle of the afternoon, the place was busy. We live in one of Money Magazines picks for best city where everyone drives a mini-van or a SUV. Big Lots is where many are stretching their dollars.

Other stores where I find deals are Dollar General and Family Dollar. You may not find everything that's on your list but they are good places to start your shopping.

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Government Rescues

By now we are all learning how the government is bailing out Fannie Mae and Freddie Mac. Darn. Should have, could have.

Fannie Mae (FNM) is selling currently for $8.16 a share yielding 17.07. Freddie Mac (FRE) is selling for $5.97 and yielding 17.99.

Yes, you too can own stock of a "company" that pays no taxes and has decent yields. Plus, lofty goals of helping Americans experience that great dream of home ownership.

Check your mutual fund holdings, you may own some right now. How lucky for you the government (we, the people) are helping you out.

I realize the housing market is helped by these entities but to the same extremes as many of the mortgage makers these past 6 years.

No job? No income? No savings? No problem.

Here we see clearer the problem and here comes the government riding in on a white horse.

Oh, when you hear Christopher Dodd comments on the disgrace of all the financial problems, remember he is on the banking committee. Duh! And then there's Shumer of NY whose comment on IndyMac brought it to its knees quicker than expected. Open mouths recorded as news.

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Doest Thou

Doest thou protest too much?

Is it scary or funny? Tasteless probably.

The more said about it, the more curiouser I will become. It's satire, right?

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College Savings

According to Fidelity, the parents of graduating high schoolers this year have only save 13% of the $100,000 needed for a 4 year college education.

The article continues about 529 plans and options available through Fidelity. Of course like all savings, starting early and regularly is key to success.

A child born now may face college expenses of more than double today's costs. So, the goal for new parents is not $100,000 saved per child for college but rather closer to $250,000 per child!

I am old enough to remember when college students who could earn enough working in a factory or at several miscellaneous jobs for 3 months to cover their own college costs. Those were the good old days.

Start saving early and regularly is the key for all financial goals.

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Losses

Since December, one of my IRAs has lost about 1/7 of its value. The stock market has declined. The S&P dipped below 11,000 yesterday.

Since the first of the year the Dow Jones is down 20%. It was down 9.4% in June which was the worst month since the 1930s.

Have I lost 14% in this one account? Not really. The value has declined by that much but I have not had a loss.

It is what accountants and financial people call an unrealized loss or book loss. I have not "cashed out" and accepted less $ for my investment. Should I cash out of this holding?

With an IRA I have a long term approach. I will need the $ in retirement and will be forced to begin taking distributions when I am 70 1/2 years old in 2021. So for now I will let it ride and hope for a recovery.

Since I have lost 14% in value, this IRA needs to gain value equal to 17.6% to return to January 1 value.

The Dow, which is down 20%, needs to gain 25% to return to January 1 values.

I have not realized my loss yet.

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Dunkin Donuts

Bob and I travel for his business often. We usually stay at motels that offer free continental breakfast but the coffee is predictably bad.

We always search out Dunkin Donuts. Their coffee, in our opinion, is better than McDonalds and far better than Starbucks. We love it so much we brew their grounds at home each morning.

We were recently headed to St. Louis for several days. No Dunkin Donuts there. We were in Fort Wayne and found one out west which was packed at 8:30 in the morning.

Our local store is busy through most of the day. Being in a suburb of Chicago, the line at the drive-through begins about 5:30am. We usually park and go in to get ours. Their parking lot is not large and we end up in the spill over space at the bank next door.

Dunkin Donuts. Try 'em, you'll love 'em.

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Stop, Drop, Roll

Do you remember "stop, drop, roll"? They teach children these simple directions in case of fire. If a sweater catches fire, don't struggle to remove it. Just stop, drop, and roll. It is more important to put out the fire than delay and allow the damage to spread.



I caught part of Oprah yesterday. Suze Orman was her guest. She was giving direct, somewhat painful, advice to couples in financial trouble. She was her usual direct self.



She gave one couple a simple thought they should use before every purchase. "Is it kind? Is it necessary? Is it true?" Unfortunately she did not have sufficient time to expand much on her questions but I think we can apply these.

Possibly the last question is the hardest to face. Is it true to who I am? Am I being true to my financial picture or plan? Am I buying it to impress people I don't know with something I can't afford?

We all need to be careful these days with gas prices so high, the stock market slipping, and the uncertainties on the world front.

'til later

Hospital

We were available for a neighbor last night. She is in her early 70s and lives alone 2 doors away. Betty has had some back and leg pain. The medications caused her to be tired and unable to drive. That was the pay off. Less pain but sleepy.

She moved quickly across the knee wrong yesterday and there was a snap and pain. She likely sprained the knee or cracked a ligament. We drove her to the emergency room of the nearby hospital. It's a small facility but well staffed.

Betty had to sign the usual releases while they checked her vitals. Then a history, list of medications and allergies, and wait for doctor. Amid all of that and before xrays, they brought her another form to sign.

It stated that medicare would not cover pharmaceuticals provided by the hospital. The clerk said that has been the case but now an acknowledgement of understanding has to be signed.

They placed a brace on her knee to immobilize it and sent us home. She's a strong little lady and insisted on staying in her own home. I'll go check on her later and we will get her to her doctor's office this afternoon.

I'm wondering if pharmaceuticals would include equipment. Will the brace cost Betty directly? I did not raise the question to her so as not to rock the boat.

So many expenses and forms to sign. Made me realize we need more $ in retirement, not less.

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Pardon Absence

Please pardon my recent absence. I had wonderful face time with my most devoted reader. She does not respond on my blog comments but rather emails or calls. I am grateful to know she's watching. She and her husband joined Bob and I on a mini vacation.

In our world of high prices, outrageous fuel costs, worries about heating bills ahead, and unemployment all around, it is healthy to escape sensibly to refocus on relationships and things that really count.

We didn't go far and we didn't stay somewhere expensive. We enjoyed great food we cooked ourselves and simple activities including a boat ride and some fishing. With loads of Diet Pepsi and iced tea, we chatted and laughed, got some sun, and, generally, hung together.

We all need those respites in our lives. We did not escape by putting more than a tank of gas or so in the cars and on our Visas. We did not need nice hotel trappings or exotic surrounds. We needed time together outside our usual surroundings.

Remember what is important, who is important and take care of yourselves.

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Rule of 72

Saved $ earns interest. Compounding is when interest is added to the initial amount invested or saved and the total goes on to earn interest and be added to.

The Rule of 72 is a simple calculation used to estimate when your saved $ will double with the added and compounded interest. Simply divide 72 by the interest rate. The larger the interest rate, the less years.

An example is $2,000 invested in a stock mutual fund. Of course, there is no set rate of return but the stock market has made close to 10%. Let's assume this fund will return 8%. 72 divided by 8 equals 9. In nine years, the amount in the mutual fund will be $4,000.

Easy calculation with a large assumption, the rate of return. Of course, if you $ was placed in a 10 year CD or bond with a set rate of return, the calculation would be more concrete.

That's the Rule of 72.

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Happy Birthday

Happy Birthday, America!

As we celebrate with fireworks, hot dogs, friends, and family, let us remember those brave gentlemen who risk everything to sign our Declaration of Independence, that rag tag group who defeated the grand army of England, and every patriot since including our men and women serving around the globe today.

May God continue to bless America, land of the free and home of the brave.

Celebrate sensibly.

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Lesson Learned

I wrote and mailed 2 checks Saturday morning. I counted on the direct deposit due us July 1 to cover them both. That assumption cost us $15.

The one check which was mailed to Michigan was presented for payment June 30. Amazingly quick, don't you think? Should have held off mailing it as it wasn't due until later this week.

Our checking and passbook savings accounts at our local bank (a national bank now) are linked with over draft protection. That's why the $15 fee.

It's all on me. Now to explain it to Bob.

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Early May Not Be Better

We ordered one of the last Dell laptops offered with XP operating system on June 15. Every 2 or 3 days I would check their site for order status. We were told when we ordered that it would not be shipped until June 30. Knowing that we would be gone on business, we had them ship it to our daughter's work.

Although we were told June 30 to ship, their customer care site always had our order as to ship July 1. One day, no big deal. We were in town some last week and left early Monday.

On Friday, the status listed on the site said "shipped." I could not find a link to track the shipment or even a carrier name. In small print I found a disclaimer that when the status changes to "shipped" it takes one business day until tracking information can be available.

I double checked with Dell's site and they had the correct email for me and I decided I had to wait until Monday, yesterday.

Yesterday, through the maze at Dell I found that the package was sent via DHL but it was signed for on Friday, June 27. Oh my. We never heard that it was received from our daughter's work. She was on vacation last week but no one there had called her or emailed her that the package was signed for.

It's safe. She has it now and we will get it when we're back off the road July 11.

I have emailed Dell regarding their communication problems. Also, promises are more important than early. If we had known, we would have changed the delivery site to our own home where we were all day Friday, June 27.

Early does not always equal better.

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Quarter End

Time to check quarter ending balances. I just visited our brokerage account on line. Much quicker than waiting for them to publish and mail paper statements. Things are down, down.

Account values down, cost of living up. Ouch. No answers on the horizon. Just politicians promising impossible things. New faces, new promises, same old pattern.

We could all use some real good news. No empty promises. No pie in the sky pipe dreams.

I believe many Americans are resourceful, energetic, and hard working. Let loose our chains and let us be free to explore, invent, innovate.

Less government and more freedom. Long live free enterprise.

'til later