Bank Changes

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

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

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

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

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2008 Look Back

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

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

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

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

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

Plans are important. Gift giving can be delightful.

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Perfect Gravy

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

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

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

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

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

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

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Thanksgivings

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

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

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

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

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

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

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Banks & More Banks

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

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

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

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

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

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

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Dictating?

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

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

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

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

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Plan Now for Friday

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

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

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

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

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

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Suze Orman

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

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

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

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

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Making My List

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

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

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

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

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

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Tranqullity

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

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

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

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

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

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Sink Or Swim

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

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

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

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

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

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Thinking Taxes

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

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

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

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

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

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

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

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Banking

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

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

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

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

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

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

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Place Your Bet

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

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

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

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

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

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

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

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Spring Memories

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

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

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

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

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

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What Is It?

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

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

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

Is that fairer than taxation without representation?

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Precious Life

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

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

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

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Less Convenience Stops

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

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

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

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

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

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

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Used Things

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

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

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

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

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Flying Specifications

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

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

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

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

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Court Worries

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

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

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

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

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

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

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

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Joe The Plumber

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

People are emotional. People are not rational.

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

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Flood in the Desert

Nevada is under water. A flood in the desert.

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

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

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

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

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

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

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

Sad stories repeated across this great land.

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Family

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

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

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

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

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

Why did I vote for McCain?

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

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Real Bargain

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

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

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

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

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