The End

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

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

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

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Doing Our Part

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

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

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

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

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

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

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

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Caroline Kennedy

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

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

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

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

Let's aim higher for our leaders, please.

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Year End Things

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

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

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

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

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

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

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Gifts

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

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

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

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

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

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Is It Over?

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

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

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

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

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

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

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Gathered Around

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

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

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

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Season's Reason

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

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

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

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

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Gifting

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

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

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

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

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

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Medical Costs Exploding

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

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

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

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

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

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

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

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

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

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Madness Madness

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

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

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

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

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

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

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How Low Can We Go?

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

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

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

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

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

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

We have gone low enough to break backs.

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Good News

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

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

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

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

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

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Ponzi Scheme

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

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

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

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

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

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

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

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Enslaved

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

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

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

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

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

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

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Full Disclosure

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

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

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

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

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

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

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

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Auto Three

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

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

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

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

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

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

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

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1973

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

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

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

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

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

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

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

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

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New Shoes

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

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

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

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

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

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HGTV

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

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

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

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

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

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Shop On Line

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

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

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

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

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Bambi's Dad

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

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

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

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

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

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What If

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

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

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

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

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

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Slow Going

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

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

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

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

Slow and steady - the race is on.

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