Control Freak

The month is ending tonight. Within 10 days most of us will be receiving bank statements.

I am a control freak about such things. Like with our credit card statements, I do more than review and accept. I match receipts with the credit card statement.

I enter the credit card payment on Quicken splitting the entry by purchase into categories like Auto:Fuel, Auto:Maintenance/Repairs, Entertainment, Clothing, etc. Quicken easily can recall and report how much we spend on gas and how often we eat out or buy tickets to events.

The bank statement can easily be reconciled using Quicken. Because I carefully maintain control of the balance in the checking account, it's simply a matter of ticking off deposits and checks on the computer screen.

Before I had the computer's help, I would sit and check mark each transaction on the statement against the check register. Then, taking the bank's balance, I would add in any deposits happening after the statement cut off date and subtracting checks that had not yet cleared the bank. With luck, that number would coincide with the register balance. It must balance to the penny or I would hunt it down.

Oh, how I love Quicken.

'til later

Now What?

We are starting to hear about the new budget bill the President has prepared. The man who proclaimed no earmarks actually placed one of them into this bill back when he was a Senator. As of yesterday, his name was removed from authorship. Maybe he's embarrassed?

We are starting to hear the scope of this spending bill. Do not get confused. There was the TARP of $700 billion back in the fall. Then there was the stimulus bill - actually a monster spending bill - that had to be on his desk before February 16 that will cost us $800 billion. This spending bill is the budget bill. I have heard it tops $1 trillion and includes a study of hog farm odors and shrimp farming research.

Didn't he complain the other night about the inherited deficit?

I have a friend who buys things like a large flat screen TV and then asks herself how she plans to pay for it. She took out a home equity line to cover the credit card debt that was out of control 2 years ago and then bought a car. It's noted that she bought a used car but then financed it for 5 years.

She reminds me of Obama. He has all this spending lined up and now he/they need to figure out how to pay for it. If everyone who makes $75,000 a year or more gave 100% of their earnings to taxes, it would not meet the deficit as it appears it will be.

Please reread that sentence. Now, as we watch the Congress contort and manipulate the figures, ask yourself: How are we going to pay for this?

'til later

Routing Number

Our taxes are nearly done. I need to do another review tying numbers back to documents. I need to arrange the attachments like mutual fund 1099-DIVs that will be attached to the Illinois return to support our claim that some of the earnings came from U.S. obligations.

The last piece of the returns was difficult to find. We are getting refunds and prefer direct deposit into our bank account. Usually you can find the bank's routing number from your checks.

Our bank was purchased last February by National City. We have not printed new checks since so our checks reflect MidAmerica's routing number. The checks find their way to the right bank but I knew that that number would not be good to use.

Since the banks are failing all over the place, our current bank is being purchased by PNC. New signs have not yet appeared on the front of our branch but PNC does appear on the bank website.

I finally had to call the bank. It was a good thing because the routing number is neither MidAmerica's or National City's.

It's something when the routing number changes so often and yet the accounts have had the same account numbers since 1985.

Change. It's everywhere. It's not all exciting.

'til later

Mortgage Abuses

They call them predator mortgage lenders. The loans offered and the payments stated misled many to sign on to situations they did not fully understand. We all heard the offers of lowered payments and zero down.

Mortgages to low income families were been highly encouraged since the late 1970s. During Clinton more teeth were put into the encouragement. Lenders were told to lend to the poor.

These bad papers were bundled and sold to the likes of Freddy Mac and Fannie Mae. They were bundled with better notes to plump up the value.

We all know supply and demand drives commerce. It drives housing as well. More $ was available. Qualifications were lowered. People took out equity to buy cars, take vacations, make home improvements, and pay for college. Taking out equity equals another mortgage or a restructured higher mortgage. Real estate values climbed and climbed.

Northern Trust is a Chicago based, healthy bank. But we know they made at least one jumbo mortgage to a couple whose financial history did not support it.

In 2005, the Obamas acquired a $1.32 million mortgage from Northern Trust. Maybe the president speaks with personal pain when he uses the term predator lenders.

'til later

Fat Tuesday

Tomorrow is Ash Wednesday which is the beginning of Lent. Many people give up something like chocolate. Others commit to regular scripture study or extra worship services.

Whether you give up or take up, it is time to tune up our spiritual lives and prepare for Easter. Tuning up for the reason for the season, the cross before the resurrection.

Whether you give up or take up, join me praying for our nation. I am convinced a valley lies ahead before the climb out. Our nation will be changed and I pray it will be stronger.

Consider the season and participate. The costs are few and the benefits great.

'til later

Get Started

It's time. By now all the necessary documents have arrived. Get out the forms and your copy of Publication 17 or load in the software. Don't forget to get current updates loaded as well.

It's tax season. It's in full swing. Get the process started.

Even if you are convinced you are going to owe, do the work. Don't wait until the middle of April and then discover you don't have the basis cost for the stock you sold last year or other crucial information. Get your returns done now. Just remember to mail them on or before April 15.

If you prefer to hire a professional, call now to get an appointment or drop of your packet of documents. I know the usual 1/2 hour appointments for Saturdays and evenings are filling quickly. Our office encourages drop offs.

Tackle the return now. Don't put it off.

'til later

Let Us Go!

We want freedom. Loosen the bindings. Let us work.

How would you like to work for a company that treated each and every worker exactly alike? There'd be no motivation to exceed. I'd feel like a cog in a series and very unimportant.

Don't you want to be unique? Worthy and special? What would you do with pure freedom to do and be what you wanted. To exceed.

That's were socialism ruins dreams. Why would anyone be driven to achieve? There is no reward to work, let alone work hard.

It begins with our children. There are schools that no longer use the traditional As, Bs, etc. There are teams where every player gets a trophy exactly like the best player. Evidently it's to spare the feelings of those not at the top.

What it does is not inspire greatness. When the best is rewarded, others can decide for themselves. Possibly they too can achieve that level of performance.

We are all unique. We all have gifts and talents. It is in using and experimenting with these that we find out about ourselves and capitalize upon our skills.

My husband was a strong C student in high school. His mother taught 5th grade. When Bob finished high school he did not know what he wanted to do with his life. He went off to a small state school known for agricultural studies. He worked and earned his education roofing houses and inspecting agricultural produce during the summers.

Bob discovered himself and his gifts. He worked long and hard putting himself through 6 years of college and finishing with his Masters at the top of his class at the University of Georgia.

Open the gates. Unbind workers. Unbind the chains that keep the poor attached to government $. Let us all be free to work and achieve according to our skills. Let us live with our decisions.

The balance is a compassionate heart. Help your neighbor get over bumps and back on track. That's what people should do and did throughout the Great Depression. My grandparents' gardens fed neighbors and church friends. Everyone wore hand-me-downs, mending socks and resoling shoes. Getting by without and setting aside pride.

Let's give a hand up. Not a crippling free ride. Let us all be free.

'til later

Rules Change

The game rules were changed and there was no notice and no time to adjust. Except if you either owe more than your house is worth or you do not have the means to meet your debt obligations. For you, the game has taken a turn for the good.

You can get help. You do not have to live up to your contract. You do not have to lose your house. You will pay far less than originally established. Lucky you.

Those who played or are playing the game by the set of rules agreed upon years ago, you are the true losers. You can not win. All that hard work and all those payments but you are the big loser.

It’s very similar to taxes. If you make more money, you might think you are winning the game. Oops. You over achieved and exceeded enough to land in a newer and higher tax bracket. Playing too well has cost you. Remember, one dollar over the line and you lose more to taxes.

The game hasn’t changed. The rules did. You lose.

‘til later

Fear Cripples

There are people all around us who are without jobs. There are restaurants closing. A local car dealer has halted construction on his expansion. We just have to look around.

On top of our own realities, our president has warned and pushed and scared all of us. The bill is passed. We await change.

Now I hear "they" want us to spend $. Is this a Saturday Night Live skit? They are kidding, aren't they? Spend?

There is no stimulus to spend. Fear has us all working harder if we have a job. We are all scraping to save. We are on lockdown.

It is clear those who have $ are the enemy. Wealth needs to be redistributed. That is one promise Obama made to us all including Plumber Joe. The execs are the enemy. The wealthy do not deserve. They are the problem.

Obama's visit to Elkhart Indiana last week was due to their high unemployment rate. Does anyone know why Elkhart is not working? Elkhart is the heart of the RV industry. Who buys RVs? Those with $ - the evil rich.

Where is there any stimulus for the rich to spend any $? How can we get the $ out of the hands of those that have it? I'm sure the government will have a spending plan for this dilemma. Or a new taxing plan to force open those fists clinching onto $.

'til later

A Big Tuesday

Today, the automakers who received $ from Congress last year are due to appear with plans to turn their companies around. They will show the way to profits. Today will be a miracle day.

Also, today President Obama will be in Denver signing the $800 Billion spending bill. I wonder if he's had a chance to read it.

But do not relax. Tomorrow will be a big day and one that will cost us a minimum of $50 Billion. Tomorrow the president will reveal his housing plan. There are two parts to this new spending plan that will be laid out in Phoenix on Wednesday.

First, judges will be given the power to change contracts, mortgage contracts. Bankruptcy judges will restructure mortgages. Congress will need to pass this portion of the bill.

The second part is at the total discretion of the Executive Branch. The power to spent $50 Billion or so will be B. H. Obama's job.

I recommend those who are struggling making mortgage payments get on line and contact the White House now. This includes my sister-in-law who has taken in boarders to subsidize her housing expenses. President Obama is very techno savvy. I'm sure application for your portion of the pie will be available on line. Hurry. This new spending "gift" won't last forever.

Of course, the President can just ask for more $ and get it. What power! The government takes care of its own. Bow down and stick out your hand.

'til later

Hold That Vote

The President demanded the "stimulus" bill be on his desk before today, President's Day. Rush, rush, rush. No time to read it. No time to post it for 48 hours so We The People could read it.

The Democrats took extraordinary steps to guarantee this major victory. They needed those 60 votes including 3 turn coat Republicans.

Senator Brown, whose 88-year-old mother died of leukemia last week, dashed from her memorial viewing in Ohio on Friday night and boarded a government aircraft provided by the White House. That's another thing. We The People paid for the costs of getting this last necessary vote!

Now, we in Illinois are learning that our junior Senator, an easy lock in on this monster spending bill, may have perjured himself to receive his seat. Many knew about the errant documents and recordings that would have removed Burris from the Senate. They knew for two weeks but held up. The word this morning is that it was to be disclosed today but it leaked over the weekend.

Rush, rush, rush. At any cost. Get this debacle on Obama's desk by today.

Oh, he's decided to extend his vacation in Chicago and will get around to signing this first pet spending mess tomorrow. His first of several major spending bills underway.

Sounds more like a dictator than a leader. He has little respect for others including a man who lost his mother.

'til later

Understanding Words

What is socialism? It sounds bad but I went in search of definitions. Merriam-Webster states: "1: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods2 a: a system of society or group living in which there is no private property b: a system or condition of society in which the means of production are owned and controlled by the state3: a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done."

A stepping stone to communism. That can't be a good thing for society as a whole.

Another source had examples in history and some ideas of how it will play out in the US. "Of course, such a definition of socialism is exceedingly vague, but the pursuit of "fairness"—the ultimate goal of socialism—is necessarily vague, given that each of humanity's several billion individuals has a unique view of what "fairness" entails."

As adapted from this site: Imagine that you are factory owner manufacturing cars. Under communism, your factory would be confiscated by the dictatorship and its production managed by a centralized branch of the government. Under socialism, you may be allowed to keep your factory on the conditions that you do not earn an "excessive" profit and that you provide well-paying, spiritually-fulfilling jobs to your employees, allowing each of them a vote in all of your decisions.

Imagine that you decide to manufacture a new type of car. You will have to get the approval of your employees, who have little incentive to give you their permission without receiving anything in return. Additionally, you will have to get the approval of "societal stakeholders," such as the people who live in the same city as your factory who feel that more car production may increase air pollution and decrease their quality of life. Finally, you will have to incorporate into your designs the "helpful suggestions" of government bureaucrats, who exist to promote the social good.

Of course, if the car is manufactured and no one buys it, you will personally absorb all losses. Nor will you reap any substantial reward from its success. You are essentially expected to produce wealth for every one's benefit except your own, to endure abuse and scorn in return. Would you manufacture cars under these conditions? Will GM?

Not many people would, and therein lies the problem with the definition of socialism. It provides no incentive for production and it sacrifices individual economic freedoms for a vaguely defined "social good."

Economic freedom is little loved by most people. Watch what is going on currently. With such disdain, society hates the leaders of large commerce. We are being led to believe that the wealthy are to be hated and that they are the reason for all of our woes. It's a slippery slope when we can blame our bad decisions on someone else.

Freedom means living with consequences. Elections have consequences.

'til later

Another Wave

Obama, who Wednesday in Phoenix plans to outline a new plan to stem home foreclosures, said the stimulus plan "won't be the end of what we do to turn our economy around, but rather the beginning. The problems that led us into this crisis are deep and widespread, and our response must be equal to the task."

Another miracle from our leader. Where will it lead us? A sinking ship of a bill was passed last night and will be signed into law on Monday. Didn't you think there was aid for foreclosures in that $800 Billion mess? They all admitted no one read it and it was not available for 48 hours to We The People as promised. What I saw flashed yesterday was full of hand notes and scratched/replaced numbers. How impressive.

We are learning there are child care credits for people who don't pay income taxes. There is Cobra coverage for the unemployed. There will be $13 more per week in my paycheck for a while. But most of the spending will not go to make-work jobs for 18 months.

I suggest that in 18 months, the economy could be onto a strong recovery. If we left it alone and spent time on the banking/mortgage mess started back under President Carter, the market would clean out, reset, and grow.

But I forgot we have a great leader who will be gifting to his interests and making work for "other than white" construction workers.

'til later

Ready to Spend

Are you ready to spend or planning to pay down debt or even save it in your mattress.

Here are the details of what will stimulate your pockets very soon. Keep in mind that if Congress had taken the total expenditure and divided it by household, your family would receive over $50,000.

But the truth is the plan is "a break for millions of lower- and middle-income taxpayers of $400 per individual and $800 per couple" as reported in the Huffington Post. Your $ will come in the form of an estimated $13 per week extra per paycheck.

That doesn't seem fair. What about a tax cut for all those who do not pay taxes? Like what about a hair cut for the bald? "Wage-earners who don't earn enough to pay income taxes would get a reduction in the Social Security and Medicare taxes they pay" per the Post. This could be a nightmare for payroll departments and the filing of their quarterly 941 returns. In other words, an accounting mess.

Another provision will mean a one-time payment of $250 for millions of beneficiaries who receive Social Security. Would that be enough to pay for their Christmas?

Your $13 more a week will be reduced to about $8 in 2010. So be careful with the stimulus you will be getting. Spend it wisely or save it.

'til later

Oscar Owed

Oscar Goodman, mayor of Las Vegas, is owed an apology by President Obama. The president proclaimed that no business meetings should be held in Las Vegas.

According to Mr. Goodman, reservations have been cancelled this week for many groups. Some were for employee recognition celebrations.

Evidently Las Vegas is a bad thing and needs to be avoided just like all corporate or privately owned jets. A pox on our society.

Let those who earn their livings from these vices find work paving bridges and re-sodding government facilities.

I wonder if rooms are cheaper on the Strip these days.

'til later

Community Organizer's Earmark

ACORN, or the Association of Community Organizations for Reform Now, is a community-based advocacy organization founded in 1970. ACORN conducts large-scale voter registration drives, and in October 2008 said that it had registered over 1.3 million new voters in 21 states in 2007 and 2008.

Maybe you recall that President Obama trained ACORN workers and through this organization he was backed and supported financially in all of his elections.

This organization faces fraud claims in 11 states: Connecticut, Florida, Indiana, Michigan, Missouri, Nevada, New Mexico, North Carolina, Ohio, Texas and Wisconsin. In Indiana for example: ACORN submitted 5,000 voter registration forms in Lake County, Indiana in September and October 2008. Local election officials say that about half of the forms are fraudulent. Eric Weathersby, executive director of the group's Northwest Indiana office, said that workers were asked to bring in 20 registrations a day, but "it was not a quota they had to meet". Ruthann Hoagland of the Lake County election board said the first 2,100 cards they looked at were phony. "Everything on the card filled out looks exactly the same."

In Texas: ACORN turned in 30,000 registration cards. ACORN in Harris County, Texas. Tax assesssor Paul Bettencourt reported that 33% are invalid and noted some specifics:
A church was listed as the voter registration address for 150 people. About 250 cards listed the address of a homeless outreach center as their home address.

No earmarks in this spending plan? That's the lie Obama wants all to believe as ACORN will receive $4.1 BILLION in this latest spending account. $4.1 billion. No earmarks?

Can someone read this 800 page bill and see no earmarks? No pork? The American people are being made fools.

'til alter

Fox News

I finally heard it reported exactly what it is. Yesterday on Fox News I heard it several times in the few hours I was watching.

It's not a bailout bill or a stimulus bill. It is a spending bill. The monster spending bill will pass this week whether it's for $850 or $827 or $900 Billion.

We know that a billion is equal to one thousand million. A trillion (which is close to what this spending bill will be) is equal to a thousand billion.

One trillion is equal to one million million. One million times one million.

One billion (not two or three or a trillion) minutes ago Jesus was alive and walking the earth, give or take a few years.

They are going to spend thousands and thousands of millions of dollars. No, tens of thousands of millions of dollars. No, hundreds of thousands of million of dollars. Nearly one million million dollars.

Are they going to get that $ from you? How many million do you have to spare? Don't look at me. They'll print it. The more they print, the less each dollar bill is actually worth, the less the U.S. currency and her goods are worth to the world.

When we moved here back in the mid-1980s, there was a subdivision just west of here that was only 20% complete. Marney went to school with many friends from Winding Creek. She would come home and report that her friend's house had no furniture in the living room. One friend had no furniture in the dining room either.

I call that being house poor. All their eggs were in one investment, the new house. The furniture would come when more credit was available.

Will we be a nation that is house poor. Assets of great wealth (natural and otherwise) but nothing else going on? No growth, little value to the world?

Does that sound like panic? I think it is but the only panicked voice I heard several times this week was the president's. He wants action and he wants it now. Panic serves no one well. This panic is on the Dems. But the price will be paid by you, by me, and our children's children.

'til later

Worthy Goals

A dear old family friend passed away this week in Indiana. My parents became friends with Max and his wife back in the mid-1950s. They met through church and soon their friendship led to family activities between our families.

Thoughts of those days caused me to remember how my parents lived back then. They were married in 1949 before my dad finished his degree from Purdue and right after Mom had hers. Dad was delayed due to 2 years in the South Pacific during WWII.

I came along in 1951 and Mom left her career in bacteriology at Upjohns in Kalamazoo. They relocated when Dad got a job at a steel mill in Fort Wayne and by 1957 they had 4 children. We lived in a rental house on the south side of town. Four children in 3 bedrooms in an ideal neighborhood about 8 blocks from the elementary school.

In late 1960 after living on one income and saving as much as they could while still giving in the offering plate at church, my parents bought their first house on the same block. Then they discovered that child #5 was coming.

I was, for the most part, unaware of struggles with $. I know we were given hand-me-downs from family and friends. Being the oldest girl, I wore a few things brand new and handed them on to my three sisters. Our brother was the lucky one - very few used clothes for him.

My point is they had several children, rented apartments and a house for over 10 years of their married life before they had saved enough to purchase their first house. They worked together as a team to reach their goal. Mom gardened and sewed or knit for herself and us. She was handy with a needle and thread. She darned socks and made repairs as things wore out. Dad enjoyed his beer but they rarely ate out.

What goal have you set for yourself? Do you have the conviction and determination to work toward it? Will your goal take you 10 years or 10 months or a lifetime?

Live with a plan and enjoy the journey.

'til later

No Hope

The stimulus - rather spending bill - is in the Senate waiting to be voted on. It has ballooned to nearly $900 billion. We will pay for digital tv, buy green cars for the government, re-sod parts of DC, buy condoms, electronic medical records for every American, and jobs not for white construction workers.

Less than 15% of the "package" will actually stimulate growth and make jobs. The rest is pork - mostly with an agenda to keep us dependent upon the government. There is no freedom in dependency.

The latest statistics are that 63% of the public is against this bill. Is any one in Washington asking we the people?

Now the President is pushing for a quick signing. Push, hurry, otherwise we are "hopeless". Without hope. We have the man of hope but we will be hopeless.

Why the heavy sales job. The world will end if we do not "buy" now. Do you feel yourself bristle? Does your gut tell you to resisting the panic?

Let us slow down. The same people who can not find the "bailout" package spent in the fall. Where did all the $ go? We are learning we did not buy stock at fair market price when we "invested" in these financial institutes?

No accounting of $ spent and now they want more and more $. Wait. Slow down.

Are we really without hope?

'til later

Not On TurboTax

Tom's problem can not be blamed on TurboTax like Tim. Tom had a tax accountant "do" his taxes.

After working over 20 years for accountants, I know that the professionals ask many questions of their clients. They ask about things like auto use and other income. It seems Tom did not have full disclosure with his accountant.

TurboTax is not my software of choice. I use TaxCut which is developed by and supported by H&R Block. I have people.

The interview process with TaxCut asks many questions and at each level there are more choices and questions. Did you receiving a 1099-MISC? Did you receive a 1099-INT? A K1?

Did your employer provide a vehicle that you were free to use for personal travel? Did you hire a domestic worker such as a nanny or housekeeping? Did you serve on a jury? Did you drive any miles for a charity?

Each question leads to more questions. Like a spiderweb, there are choices after choices. If you do not understand the question, there are help links to both their internal and the IRS publications.

I wonder how much Tom paid for his professional help that overlooked over $125,000 of income.

He must have paid enough to his accountant. He probably got him out of all those penalties. Yeah, right!

'til later

Considered Best Buy

I enjoy coffee first thing in the morning. I usually drink 2 big mugs. We brew Dunkin Donut at home and usually hunt out Dunkin Donut when we travel. We will settle for McDonalds but never Starbucks.

When we are in Canada or areas of Michigan and New York we will keep our eyes open for a Tim Horton. The very best coffee ever but the pastries are not very good. It's the only place I will stop at for a cup in the middle of the afternoon. It's that good. People in Buffalo have told us they suspect there's cocaine in it. Funny.

Recently, Consumer Reports released their choice for best taste and price. They tasted 19 ground coffees and found at winner at $6.28 a pound. Eight O'Clock Coffee won. Locally this brand is sold at grocery stores.

The question is - will we try it? It would be a savings of over $2 per pound. I'll let you know if Bob is willing to try.

These are times for bargains and coupons.

'til later

Leona Helmsley Wannabe

Mr. Daschle, former majority leader in the Senate, was accustomed to having a driver and car available to him 24/7. He did not think about it as a taxable event.

Elitist? Doesn't everyone have perks like this? Tom claims he only used it about 20% for personal use. So he overlooked filing the value of $255,000 on his taxes for '05, '06, and '07 for the percentage of personal use of the driver and car. No big deal. Honest mistake.

But there's more that I consider unethical. Mr. Daschle has earned more than $5 million over the past two years, including $200,000 from the health-care industry he's been nominated to regulate.

He was a lobbyist. I guess if you are or were a lobbyist and you are a Democrat, it's just fine with President Obama. Does anyone else smell double standard?

'til later