Money and Credit

Geico Mastercard Adds $48 Annual Fee

colonelcash@hotmail.com (Dal) — Mon, 09 Nov 2009 22:07:00 +0000

First, they reduce credit lines, now THIS!

Effective December 2009, card holders will be charged $4.00 per month for the priviledge of holding one of these cards.

Seems to me this is a sure fire way to thin out the herd of remaining card holders!

Credit Cards and Bank Tellers

colonelcash@hotmail.com (Dal) — Fri, 03 Apr 2009 10:25:00 +0000

My last post talked about how Geico decreased my credit line. An article appears today in USA Today entitled "Credit slashed for responsible borrowers"!

From a bankers perspective, I understand entirely why this 'slashing' is required. Accounts issued to those that don't use them, or to those who avoid fees and other charges are simply unprofitable. It just doesn't make any sense to maintain accounts that effectively cost the business money.

From a consumers perspective, I feel quite defensive about this. First, it can and will impact credit scores (see my last post where I write about this). Second, I feel as though something of mine has been taken away from me un-rightfully, regardless of what the fine print might say.

Seems to me that the banking systems needs to find other ways to support their overhead. Perhaps they may consider reducing their overhead! Executive payroll, even in your small community banks and credit unions might surprise you!

Instead of looking for additional income from creditors, why not fee other transactions? Just for example...

Payroll expenses could be reduced by training customers to use automated systems for routine transactions rather than seeing a live person (teller). How? For every teller window transaction that could have been conducted at an ATM or online, a fee would be imposed that is not imposed had the automated system been used. One would pay extra to talk with a teller. Why? Because tellers cost more! Eventually, people would come to use the less expensive technology, thereby reducing the bank or credit unions reliance on human resources, ultimately reducing overhead expenses.

Would this work? Sure, it already does. When was the last time you talked with a teller when you stopped into ING Direct?

Geico Platinum Mastercard Reduces Credit Lines

colonelcash@hotmail.com (Dal) — Thu, 26 Mar 2009 12:38:00 +0000

I've recently joined the group of folks who have had their credit negatively impacted by a credit card company that indiscriminately reduces credit lines. Geico Platinum Mastercard notified me that they were reducing my credit card line of credit significantly, down to the balance that I had carried on the account. How can this effect ones credit negatively?

A large part of ones credit score is determined by the amount of credit available. Earlier this month, I had a $10,000 limit on this card. If I carried a $1,000 balance, then I had 90% of my credit line available. When the credit limit is reduced, in this case to $1000, the available credit is now $0, making it appear as though I've 'maxed out' my credit line.

When the credit bureaus receive my balance information showing that I now have a $1000 balance on a $1000 credit line, my credit score will be recalculated and will likely drop significantly, for no fault of my own.

How can the credit card companies do this? I have made all of my payments on time, never late, never missed. Managed my account with stellar diligence. Still, I run the risk, again by no fault of my own, that my credit score will suffer. If my score drops, I run the risk of paying higher interest rates for future credit needs. You would think that there would be a law against this!

Read you account agreements carefully. There is almost always a clause that gives the card company the right to reduce or cancel the credit line at their discretion, regardless of your payment history.

What's the solution? I called Geico Platimum Mastercard and asked that they reconsider. They acknowledged that I had always paid my account better than agreed, but that there wasn't anything that they could (or would) do. Because it was a corporate business decision, they could not increase the line so that I would have only 50% utilization, nor would they reduce the APR on the account. My options were very limited.

I could; (1) decide not to pay them, or (2) pay off the balance in full. Fortunately, I was in the financial position that I could chose option 2. In addition, I will be looking for a new insurance company to handle my motor vehicle insurance needs. Note: I did not close the account because I want to keep my available credit lines open in order to preserve my credit rating.

Have you had this happen to you? What did you do?

Taxes

colonelcash@hotmail.com (Dal) — Fri, 20 Mar 2009 11:00:00 +0000

Spent the better part the day yesterday in front of the computer looking for ways to reduce our tax obligation this year. Need I say that this year we're paying in? This is the first time in a long time, so I guess I can't complain too much.

In 2008, we had a job change. This 'life change' job change is part of the reason for the change in tax status; but its not the only reason.

Last year, we changed our W4's so that our employers were deducting the proper amounts from our paycheck. We stopped making loans to the federal government. Before we made this change, we were having too much taken from our pay, of which we'd receive back each year as a refund for overpayment.

Now, instead of waiting a year to have access to this money, we receive it weekly. I must admit however, it sure would be nice right about now to get a check!

2009 Tax Changes

colonelcash@hotmail.com (Dal) — Thu, 12 Feb 2009 18:37:00 +0000

Source: IRS.gov

2009 Tax Changes for Individuals

Child-Related Tax Changes
Information on adoption benefits, child and dependent care credit, child's investment income, and additional child tax credit.

Credit for Prior Year Minimum Tax
There are several changes to the credit for prior year minimum tax.

Earned Income Credit
The earned income credit amounts have increased for 2008.

Education-Related Tax Changes
Information on education savings bond exclusion, hope and lifetime learning credits, tuition and fees deduction, and student loan interest deduction.

Exclusion of Income for Volunteer Firefighters and Emergency Medical Responders
For tax years beginning after 2007 and before 2011, gross income ...

Health/Medical-Related Tax Changes
Information on Archer Medical Savings Accounts (MSAs), Health Savings Accounts(HSAs), and long-term care premiums.

Home/Residence-Related Tax Changes
Information on mortgage insurance premiums, residential energy credits, and sale of main home by employees of intelligence communities.

Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
New limits on exclusion payments made under a long-term care insurance contract.

Itemized Deductions
The itemized deduction phaseout income limits have increased for 2008.

Maximum Tax Rate on Qualified Dividends and Net Capital Gain Reduced
There are changes to the maximum tax rate on qualified dividends and net capital gain.

Penalty for Failure to File Income Tax Return Increased
The failure to file penalty has increased.

Personal Exemptions
The deduction amount and phaseout income levels have increased for 2008. Also, the definition of qualifying relative is clarified.

Recovery Rebate Credit
See if you are eligible for the recovery rebate credit.

Social Security and Medicare Taxes
The maximum amount of wages subject to the social security tax and Medicare tax has increased for 2008.

Standard Mileage Rate
The standard mileage rate for business use of your vehicle, medical and move- related use and charitable use has increased for 2008.

Wage Threshold for Household Employees
The social security and Medicare wage threshold for household employees is...

2009 Anticipated Refund Dates

colonelcash@hotmail.com (Dal) — Thu, 12 Feb 2009 18:30:00 +0000

To find out when you can expect your 2009 IRS Tax Refund, click here!

No Tax Break for Car Loan Interest

colonelcash@hotmail.com (Dal) — Thu, 12 Feb 2009 18:00:00 +0000

As you might be aware, one of the provisions set forth in the proposed stimulus package was a tax break for interest paid on car loans. Sen. Barbara Mikulski (D-Md.) who sponsored the bill, confirmed today Congress has scaled back the bill and interest paid on car loans is not included in the package.

The final stimulus bill agreed upon by the House and the Senate provides tax relief for sales and excise tax.

Automotive News sources said the trim in the tax break for new-vehicle purchases reduced its cost from about $11 billion to about $2 billion. Negotiators wanted to limit the cost of the stimulus bill to ease the concerns of the lawmakers who were concerned with excessive spending.

Sale of Experian based FICO scores discontinued on myFICO.com

colonelcash@hotmail.com (Dal) — Mon, 09 Feb 2009 11:30:00 +0000

Want to know what Experian is reporting about your credit history? It's going to be a little more difficult now!

Experian has announced that this action is specific to their consumer business unit, and will not impact their relationship with lenders.

Fair Isaac has received notification from Experian of its decision to terminate the agreement which allows the distribution of Experian-based FICO® scores and reports from www.myFICO.com.

While it is our desire to continue informing consumers of FICO® scores from all three credit bureaus, FICO® scores from Experian will no longer be available to consumers. FICO® scores from Equifax and TransUnion continue to be available.

There are three myFICO® products which will be impacted by this change:

* FICO® Credit Complete: No longer available after February 13th, 2009.

* FICO® Standard: The single Experian FICO® score and report will no longer be available after February 13th, 2009. You will still be able to obtain FICO® scores and reports from Equifax and TransUnion.

* Suze Orman's FICO® Kit: The single Experian FICO® score and report will no longer be available after February 13th, 2009. You will still be able to obtain FICO® scores and reports from Equifax and TransUnion.

It is important to understand that the majority of lenders will continue to use FICO® scores based on Experian data to make creditworthiness decisions, but those FICO® scores based on Experian data will not be available via www.myFICO.com, nor any other public venue.

We sincerely regret any inconvenience this causes to our loyal customer base. For the affected services, we will provide a smooth and thoughtful transition. Please know we are committed to giving clear and continued communications on this issue.

For more details on this change, especially if you currently own any of the three products mentioned above, we have provided a thorough FAQ, which is found on the FICO® Forums page.

Here is a link to the FAQ

Car Loan Interest Tax Credit

colonelcash@hotmail.com (Dal) — Sat, 07 Feb 2009 18:38:00 +0000

Senate Approves Mikulski's Auto Amendment
WASHINGTON, D.C. – U.S. Senator Barbara A. Mikulski’s (D-Md.) amendment to the American Recovery and Reinvestment Act to save American jobs and help American consumers by giving tax relief to new car buyers was approved by the Senate today.

“Today the Senate voted ‘yes’ to getting our economy rolling again,” Senator Mikulski said. “President Obama said the goal for the economic recovery program is to create jobs and save jobs. That’s exactly what my amendment does. It’s targeted at saving American jobs and helping families buy the cars they need to get to work and take their kids to school. Our economy is teetering, and Congress must take swift action to save jobs and lend a helping hand to struggling families. That’s what we did here today.”

Senator Mikulski’s amendment, the Auto Assistance Ownership Amendment, makes interest payments on car loans and state sales or excise car tax-deductible for new cars purchased between November 12, 2008 and December 31, 2009, which, in turn, will help more Americans afford cars during these tough economic times and spur investment in America’s ailing automobile industry. For more information about Senator Mikulski’s amendment, go to: http://mikulski.senate.gov/_pdfs/Press/autoownershiptaxamendment.pdf

The American automobile industry is currently one of the biggest drivers of the U.S. economy. One out of every 10 jobs in America is auto-related. A collapse of a major U.S. automaker, such as GM, Ford or Chrysler, would further erode the American economy, given the huge network of suppliers, dealers, and other businesses and communities that would be affected. Already this year the U.S. auto industry has shed 110,000 jobs. In Maryland, approximately 500 jobs have been lost this year due to the closing of automobile dealerships.

Co-sponsors of the amendment include: Senator Sam Brownback (R-Kan.), Senator Debbie Stabenow (D-Mich.), Senator Kay Bailey Hutchison (R- TX.), Senator Jim Webb (D-Va.), Senator Sherrod Brown (D-Ohio), Senator Robert F. Bennett (R-Utah) and Senator Evan Bayh (D-Ind.).

The next step in the legislative process for the Mikulski Amendment is Senate approval of the American Recovery and Reinvestment Act. The bill then goes to conference, where differences in the House and Senate versions will be resolved before the legislation is sent to President Obama for his signature.

Senator Mikulski’s remarks, as prepared for delivery on the Senate floor, follow:

“Mr. President, our economy is in shambles. Our unemployment rate is at a 16-year high. More Americans are out of work today than at any other point in the last 25 years, and we lost more jobs in 2008 than in any year since 1945. People are losing their jobs, their life savings, and their homes.

“There is much work to do and no time to waste. We’ve already done a bailout. We’ve helped the sharks and we’ve helped the whales. Now it’s time to help the minnows.

“I have a proposal that will help. I am offering an amendment, co-sponsored by Senator Brownback, to save the American automobile industry, to help consumers to get our economy back on track, and to help state governments get more revenue. “It’s simple, it’s straightforward, it’s bipartisan. It’s also timely, targeted and temporary. And it saves jobs. Everyone wants to save auto manufacturers, but no matter how much government aid we give to the Big 3 auto makers, they can’t survive if consumers don’t start buying cars. That’s where my amendment helps. “I want to stimulate demand in the automobile industry so that people go to showrooms and buy cars. Why is this a good idea? If you buy a car, someone’s got to make them, someone’s got to sell them, someone has to service them and someone has to provide administrative services. So this amendment is good for the manufacturers, the dealers, the suppliers and the consumers. “My amendment is simple. If you buy a new passenger car, minivan, or light truck by December 31st of 2009, you will get a tax deduction for your sales or excise tax and the interest on your loan. A family would save about $1,500 on a $25,000 car, not counting the additional incentives from dealers.

“My amendment is not about bailouts. It’s about jobs, jobs, jobs. Six million jobs are at stake in the American car industry. One out of 10 jobs in America relates to the auto industry. Right now the facts are gloomy. If we lose the Big 3, then 3 million jobs are at risk. The only way to save the Big 3 is to get people into showrooms, but 1,000 dealerships could close this year. That’s 53,000 jobs that could be lost just at the dealerships. I believe we can help by getting the consumer into the showroom. They will know that the government is on their side and helping them with one of the biggest purchases they will make during this tough time.

“My amendment also helps state governments. States rely on tax revenue from new car sales. In my home state and many other states the sales tax is around 6 percent, so on a $25,000 car the state gets $1,500 in revenue. New car sales are down millions per year from their averages. This means states are losing billions when they already are struggling. My amendment will help because as people buy new cars states’ tax revenues will increase.

“This amendment is a big deal to families because a car is the second biggest purchase most families make. My amendment is targeted. Families with an income of more than $250,000 a year are ineligible. Cars costing more than $49,500 also are ineligible. This amendment also helps the environment because it gets more people into new cars and new cars are cleaner and more fuel efficient than old cars.

“There are 20,000 new car dealerships nationwide. They employ a million people. In my own home state, there are around 300 dealerships. Most people don’t realize that dealers employ an average of 53 people in sales, mechanics, and administrative positions. I visited car dealerships in Maryland and heard from these employees.

“I’ve talked to people like the mechanic who works for a Chevy dealer in Bethesda. He’s worked there for 23 years. He said to me, ‘Senator Barb, all my life I’ve loved to work on cars. I just love it. I love to fix them, I love to repair them. If they’re new, I want to make sure they’re fit for duty. I’ve earned a good living. I’ve been happy and I think I’ve helped make a lot of other people happy. But the only way I can stay happy is if I continue to work. I’ve got a mortgage. I’ve got two kids in college. Maybe they’re going to go into engineering, I don’t know, but if we don’t get more people into this dealership, my job could be gone.’

“And I talked to the dealer. The dealer’s name is Sam. The first thing you note about him is that he wears the little rotary pin because he’s the guy that not only provides jobs in the community, he is also part of the Chamber of Commerce and part of the United Way.

“We are talking about people who are part of the fabric of our society. We are not talking about an abstraction and we’re not talking about a single zip code, like Wall Street. We are talking about the automobile industry, which is in every state and every community.

“Maybe you know somebody who works for a hedge fund. I don’t. But I do know the people who work for the automobile industry, like the receptionist who went to work at a dealership 43 years ago right out of high school. And she said, ‘Senator Barb, women couldn’t sell cars in those days, but I’ve been here in and out of this same dealership for 43 years. I’ve raised my kids and earned a good living doing the back office work and I want to keep on doing it. I’m not ready for Social Security and for God’s sake don’t put the money in Wall Street.’

“Well, I say let’s put money where it matters — where it creates jobs. That’s why we need this amendment — for creating jobs, for consumers, and for the auto industry that is such a driver of our country’s economy — so we can get America rolling again.”

2008 Tax Law Changes Highlights

colonelcash@hotmail.com (Dal) — Mon, 02 Feb 2009 11:06:00 +0000

This information is from www.IRS.gov

Highlights of 2008 Tax Law Changes: Tax Breaks Renewed, Recovery Rebate Credit, Homeowner Relief

FS-2009-1, January 2009

AMT exemptions rise; several expiring deductions and credits get a new lease on life; a new standard property tax deduction and a special first-time homebuyer credit are available to some homeowners; and retirement savings incentives expand. These are among the changes taxpayers will find when they fill out their 2008 tax returns. More information about these and other changes, summarized below, can be found on IRS.gov and in various IRS documents, including the Instructions for Form 1040.

Economic Stimulus Payments Tax Free

Economic stimulus payments are not taxable, and they are not reported on 2008 tax returns. However, the stimulus payment does affect whether a taxpayer can claim the Recovery Rebate Credit and how much credit he or she can get. The credit is figured like last year's economic stimulus payment except that the amounts are based on tax year 2008 instead of 2007. A taxpayer may qualify for the Recovery Rebate Credit if, for example, she did not get an economic-stimulus payment or had a child in 2008. See Fact Sheet 2009-3 for details. In most cases, the IRS can figure the credit. The instructions for Forms 1040, 1040A and 1040EZ have more information.

AMT Exemption Increased for One Year

For tax-year 2008, Congress raised the alternative minimum tax exemption to the following levels:

*
$69,950 for a married couple filing a joint return and qualifying widows and widowers, up from $66,250 in 2007
*
$34,975 for a married person filing separately, up from $33,125 and
*
$46,200 for singles and heads of household, up from $44,350

Under current law, these exemption amounts will drop to $45,000, $22,500 and $33,750, respectively, in 2009. Form 6251 and the AMT Calculator provide more information.

Expiring Tax Breaks Renewed

Several popular tax breaks that expired at the end of 2007 were renewed for tax-years 2008 and 2009. As a result, eligible taxpayers can claim:

*
The deduction for state and local sales taxes on Form 1040 Schedule A , Line 5
*
The educator expense deduction on Form 1040, Line 23 or Form 1040A, Line 16
*
The tuition and fees deduction on Form 8917 and
*
The District of Columbia first-time homebuyer credit on Form 8859

In addition, the residential energy-efficient property credit is extended through 2016. In general, solar electric, solar water heating and fuel cell property qualify for this credit. Starting in 2008, small wind energy and geothermal heat pump property also qualify. Use Form 5695 to claim the credit.

The non-business energy property credit for insulation, exterior windows, exterior doors, furnaces, water heaters and other energy-saving improvements to a main home is not available in 2008 but will return in 2009.

Standard Deduction Increased for Most Taxpayers

Nearly two out of three taxpayers choose to take the standard deduction rather than itemizing deductions such as mortgage interest and charitable contributions. The basic standard deduction is:

*
$10,900 for married couples filing a joint return and qualifying widows and widowers, a $200 increase over 2007
*
$5,450 for singles and married individuals filing separate returns, up $100 and
*
$8,000 for heads of household, up $150

Higher amounts apply to blind people and senior citizens. The standard deduction is often reduced for a taxpayer who qualifies as someone else’s dependent.

New this year, taxpayers can claim an additional standard deduction, based on the state or local real-estate taxes paid in 2008. Taxes paid on foreign or business property do not count. The maximum deduction is $500, or $1,000 for joint filers.

Also new for 2008, a taxpayer can increase his standard deduction by the net disaster losses suffered from a federally declared disaster. A worksheet is available in the instructions for Forms 1040 and 1040A.

First-Time Homebuyer Credit

Those who bought a main home recently or are considering buying one may qualify for the first-time homebuyer credit. Normally, a taxpayer qualifies if she didn’t own a main home during the prior three years. This unique credit of up to $7,500 works much like a 15-year interest-free loan. It is available for a limited time only –– on homes bought from April 9, 2008, to June 30, 2009. It can be claimed on new Form 5405 and is repaid each year as an additional tax. Income limits and other special rules apply.

Tax Relief for Midwest Disaster Areas

Special tax relief related to severe storms, tornadoes or flooding, occurring after May 19, 2008, and before Aug. 1, 2008, is available to individuals in portions of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska and Wisconsin that were affected by these disasters. Tax benefits include:

*
Liberalized rules for certain personal casualty losses and charitable contributions
*
An additional exemption amount for persons who provided housing for someone displaced by these disasters
*
The option to use 2007 earned income to figure a 2008 earned income tax credit (EITC) and additional child tax credit
*
An increased charitable standard mileage rate for use of personal vehicle for volunteer work related to these disasters
*
Special rules for withdrawals and loans from IRAs and other qualified retirement plans

Details on these and other relief provisions are in Publication 4492-B .

Contribution Limits Rise for IRAs and Other Retirement Plans

This filing season, more people can make tax-deductible contributions to a traditional IRA. The deduction is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $53,000 and $63,000, compared to $52,000 and $62,000 last year.

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $85,000 to $105,000, up from $83,000 to $103,000 last year.

Where an IRA contributor who is not covered by a workplace retirement plan is married to someone who is covered, the deduction is phased out if the couple’s income is between $159,000 and $169,000, up from $156,000 and $166,000 in 2007.

The phase-out range remains $0 to $10,000 for a married individual filing a separate return who is covered by a retirement plan at work.

The worksheet in the instructions for Form 1040 Line 32 or Form 1040A Line 17 can help a taxpayer figure the IRA deduction.

For 2008, the elective deferral (contribution) limit for employees who participate in 401(k), 403(b) and most 457 plans remains unchanged at $15,500. This limit rises to $16,500 in 2009. The catch-up contribution limit for those aged 50 to 70-½ remains at $5,000 in 2008 but rises to $5,500 in 2009.

The AGI phase-out range for taxpayers who contribute to a Roth IRA is $159,000 to $169,000 for joint filers and qualifying widows and widowers, compared to $156,000 to $166,000 in 2007. For singles and heads of household, the comparable phase-out range is $101,000 to $116,000, compared to $99,000 to $114,000 in 2007.

Standard Mileage Rates Adjusted for 2008

The standard mileage rate for business use of a car, van, pick-up or panel truck is 50.5 cents per mile from Jan. 1, 2008, to June 30, 2008, up 2 cents from 2007. The rate is 58.5 cents for each mile driven during the rest of 2008.

From Jan. 1, 2008, to June 30, 2008, the standard mileage rate for the cost of operating a vehicle for medical reasons or as part of a deductible move is 19 cents per mile, down a penny from 2007. The rate is 27 cents from July 1 to Dec. 31.

The standard mileage rate for using a car to provide services to charitable organizations is set by law and remains at 14 cents a mile. As noted earlier, special rates apply to the Midwest disaster area.

Exemptions Rise

The value of each personal and dependency exemption is $3,500, up $100 from 2007. Most taxpayers can take personal exemptions for themselves and an additional exemption for each eligible dependent. An individual who qualifies as someone else’s dependent cannot claim a personal exemption, and though personal and dependency exemptions are phased out for higher-income taxpayers, the phase-out rate is slower than in past years.

This is one of more than three dozen individual and business tax provisions that are adjusted each year to keep pace with inflation. A complete rundown of these changes can be found in 2008 Inflation Adjustments Widen Tax Brackets, Change Tax Benefits.

Earned Income Tax Credit Rises

The maximum earned income tax credit (EITC) is:

*
$4,824 for people with two or more qualifying children, up from $4,716 in 2007
*
$2,917 for those with one child, up from $2,853 last year and
*
$438 for people with no children, up from $428 in 2007.

Available to low and moderate income workers and working families, the EITC helps taxpayers whose incomes are below certain income thresholds, which in 2008 rise to:

*
$41,646 for those with two or more children
*
$36,995 for people with one child and
*
$15,880 for those with no children

One in six taxpayers claim the EITC, which, unlike most tax breaks, is refundable, meaning that individuals can get it even if they owe no tax and even if no tax is withheld from their paychecks.

Taxes Lowered for Many Investors

The five-percent tax rate on qualified dividends and net capital gains is reduced to zero. In general, this reduction applies to investors whose taxable income is below:

*
$65,100, if married filing jointly or qualifying widow or widower
*
$32,550, if single or married filing separately or
*
$43,650, if head of household.

Note that taxable income is normally less than total income. The worksheet for Form 1040 Line 44, Form 1040A Line x or Schedule D and its instructions provide details.

Kiddie Tax Revised

The tax on a child's investment income applies if the child has investment income greater than $1,800 and is:

*
Under 18 old
*
18 years of age and had earned income that was equal to or less than half of his or her total support in 2008 or
*
Over 18 and under 24, a student and during 2008 had earned income that was equal to or less than half of his or her total support.

Previously, the tax only applied to children under age 18. Form 8615 is used to figure this tax.

Self-Employment Tax Changes

For those who receive Social Security Retirement or disability benefits, any Conservation Reserve Program (CRP) payments are now exempt from the 15.3-percent social security self-employment tax. Schedule SE and its instructions and Publication 225, Farmer’s Tax Guide, have the details.

More farmers and self-employed people this year can choose the optional methods for figuring and paying the self-employment tax. These optional methods allow those with net losses or small amounts of business income a way to obtain up to four credits of Social Security coverage. The income thresholds for both the farm optional method and the nonfarm optional method are increased for 2008 and indexed for inflation in future years. Choosing an optional method may increase a taxpayer’s self-employment tax but it may also qualify him for the earned income tax credit, additional child tax credit, child and dependent care credit or self-employed health insurance deduction. Schedule SE and its instructions have details.

The Election is over; Now What?

colonelcash@hotmail.com (Dal) — Fri, 07 Nov 2008 11:05:00 +0000

The elections are over. Many had hoped that with the new president elect, our financial crisis would begin to subside. Much to their dismay, the stock market has tumbled twice since.

I often wonder how much the media has contributed to the current state of economic affairs? What if nobody told us how bad it was; what if we didn't repeatedly hear and read, over and over, the economic bad news, how would we know?

Some people who have endured job lay-offs, foreclosures, etc. would have first hand knowledge obviously. But what about the rest of us? Do we really need to know? Maybe the better questions is do we want to know?

Personally, I don't want to hear about it anymore. Not sticking my head in the sand because I realize the importance of personal finance and money management. Moreover, I understand the importance of a good mental state of mind; the importance of attitude!

With all of the negativity fed to us by the media, we are begin to feel defeated. We are constantly reminded of an economic Armageddon.

I say damned the news! I'm putting my chin up and going forward with the best that I have! The sun has come up today and both of my feet hit the floor, look out world! We all have another opportunity today to take ourselves and our circumstances to the next level!

So, shut off the news and radio and go for it! Keep your chin up and keep doing your best! Make your attitude a good one! Things will get better!

Gas or Milk......

colonelcash@hotmail.com (Dal) — Tue, 13 May 2008 16:23:00 +0000

As I was driving along today, I observed these two signs. Both of them were at the same convenience store. Curiously, the next gas station that I came upon, 12 miles away (yes, it's rural here..) the price per gallon for gasoline is $3.88. I didn't check on the milk...

Cast Off!

colonelcash@hotmail.com (Dal) — Sun, 04 May 2008 10:25:00 +0000

The cast came off my arm Friday! Now for the therapy. I cannot believe how much my arm atrophied in just 6 weeks!

It is painful to try to move my wrist; I wonder how long it will take to get my mobility back?

Over the past few weeks I've used my time to catch up on some Personal Finance Reading. I plan on writing a post reviewing these books in the coming weeks.

Seems like quite a lot has happened in the PF world since breaking my wrist. That's good; we'll spend some time catching up!

I start therapy tomorrow. I hope that it is as quick as I suspect it will be painful. What's the saying- no pain no gain?

See you soon!

Check your refund status with "Where's my Refund"

colonelcash@hotmail.com (Dal) — Wed, 23 Apr 2008 11:15:00 +0000

This just in from the IRS Newswire, a free IRS e-mail service.

Taxpayers Can Check Their Refund Status
with “Where’s My Refund?”

WASHINGTON — Taxpayers who have filed their federal income tax returns and are expecting their refunds can use the Internal Revenue Service’s online tool, “Where’s My Refund?,” to check on the status of their refunds.

“Where’s My Refund?” is fast, easy, safe and convenient. Nearly 9.7 million taxpayers have checked the status of their 2007 federal income tax refunds online, up about 18 percent over the same time period last year.

To get to personalized refund information, taxpayers should be ready to enter their:

Social Security Number (or Taxpayer Identification Number),
Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er)),
Exact refund amount shown on their tax returns.

Taxpayers can check on the status of their refund seven days after e-filing a return. For a paper return, check four to six weeks after mailing the return.

“Where’s My Refund?” also includes links to customized information based on a taxpayer’s specific situation. For example if “Where’s My Refund?” shows that the IRS was unable to deliver a refund, a taxpayer can change his or her address online. Taxpayers can avoid undelivered refund checks by having their refunds directly deposited into a personal checking or savings account.

If 28 days have passed after the IRS says it mailed a refund check, “Where’s My Refund?” enables taxpayers to initiate a trace.

New this year Spanish-speaking taxpayers can get information about the status of their federal refunds using Dónde Está mi Reembolso? available by entering the Spanish language area of the web site by clicking the Espanol link on IRS.gov. The refund trace and address change features are only available in English at this time.

Taxpayers without internet access can check the status of their refunds by calling the IRS TeleTax System at 800-829-4477 or the IRS Refund Hotline at 800-829-1954. The TeleTax refund information is updated each weekend. If you do not get a date for your refund, please wait until the next week before calling back.

Where’s My Refund? is also accessible to visually impaired taxpayers who use the Job Access with Speech screen reader used with a Braille display and is compatible with different JAWS modes.

Some scam artists are sending phony emails, including those relating to “Where’s My Refund?”, to trick individuals into revealing personal financial information that can be used to access their financial accounts. People who want to access the genuine IRS Web site and the “Where’s My Refund?” feature should go directly to the IRS Web site by typing the address, www.irs.gov, into the address` line of their Internet window. The only genuine IRS Web site is IRS.gov.

Still nursing a broken wrist...

colonelcash@hotmail.com (Dal) — Mon, 07 Apr 2008 14:15:00 +0000

Typing is hard enough with both hands, it's a lot harder with only one!

This is a guest post from Liza

Debt solution

More and more people who are facing enormous difficulties in paying off their debts are turning to debt solutions. There are almost four types of debt solutions namely repayment arrangements, debt consolidation and debt settlement. Amidst the mentioned debt solutions, debt consolidation and debt settlement the most sought after ones.

At it most basic, debt consolidation is combining all your debts into one single monthly repayment. Thus, at the end of each month instead of paying twenty different bills to different creditors all you have to do is simply make one singular monthly payment. The advantage of one monthly payment is that the risk of missed or late payments is reduced. Usually consolidation of debts is accompanied with lowering of interest rates. The consolidated debts carry much less interest rate, almost at times half, of what you had to pay earlier.

Debt settlement is another option that’s becoming increasingly popular with individuals who have a lot of debt and are considering filing bankruptcy. In a nutshell, debt settlement is an alternative to bankruptcy. You stop paying your bills and instead start accumulating funds to pay your creditors. Once you accrue a lump sum amount of money, start negotiating with your creditors. With the help of debt settlement usually 50% or sometimes even 75% of the original amount is reduced.

You might face troubles in negotiating with creditors and collection agencies. They might create pressure on you to collect more money. If you find that they are in no mood to negotiate then contact a reputed settlement company. The settlement companies have the experience and know very well how to come to an agreement with creditors and collection agencies.

IRS Offers Tips for Tax Filers for ES Payments

colonelcash@hotmail.com (Dal) — Fri, 28 Mar 2008 11:06:00 +0000

Tips for Tax Filers on Economic Stimulus Payments

WASHINGTON — The Internal Revenue Service today urged taxpayers eligible for the economic stimulus payment to file their tax return now in order to get their payment in a timely manner.

This IRS reminder applies to taxpayers yet to file their 2007 income tax returns as well as retirees, disabled veterans, low-wage workers and others who normally are not required to file a return but who must do so this year to receive an economic stimulus payment.

“The quickest way to receive your refund and your economic stimulus payment is to file early, file electronically and use direct deposit,” said IRS Commissioner Doug Shulman.

Starting in May, the IRS will begin sending economic stimulus payments of up to $600 ($1,200 for married couples) to people who earn less than $75,000 ($150,000 for married couples). There is also is an additional payment of $300 for each eligible child younger than 17.

People who have no tax filing requirement may still be eligible to receive a payment of $300 ($600 for married couples) if they have at least $3,000 in qualifying income. Qualifying income includes any combination of earned income, nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement. Individuals in this category may also be eligible for the additional $300 payment for each qualifying child.

The IRS offers these tax tips for taxpayers:

File now: Don’t wait until the 11th hour on April 15 if you want your stimulus payment on time. Your tax return must be processed by April 15 for you to receive your payment according to the payment schedule. Filing a paper return? Write ‘Stimulus Payment’ at the top of your form ONLY if you do not normally file a tax return and are filing just to receive a stimulus payment.

Use Free File: IRS Free File is a public-private partnership with 19 tax software companies that make their tax preparation software and electronic filing available for free to certain taxpayers. Anyone with an adjusted gross income of $54,000 or less, and that’s 97 million taxpayers, is eligible to use Free File, available only through www.irs.gov.

Use IRS e-file: If you don’t qualify for IRS Free File, you should still file your tax return electronically. Taxpayers can use IRS e-file through paid preparers or over-the-counter software. It’s the fastest way to process your tax return, which means it’s the quickest way for you to receive your refund and your economic stimulus payment.

Use direct deposit: It’s the best way to receive your refund and your economic stimulus payment. Even if you owe taxes, complete the blanks for direct deposit and, if you are eligible, the IRS will transmit your stimulus payment electronically. The IRS will begin making stimulus payments into direct deposit accounts on May 2. The agency will mail paper checks starting May 16.

Need more time: If you can’t make the April 15 deadline, remember to file a Form 4868, the automatic extension of time to file. This will give you until October 15 to submit a 2007 tax return.

Avoid Scams: If you receive unsolicited email or telephone calls from anyone purporting to be from the IRS, it’s probably a scam. Don’t click on any links; don’t answer any questions. Forward the emails or report the calls to phishing@irs.gov.
This year, there are millions of people who are not required to file a tax return but who must file a 2007 income tax return to let the IRS know they are eligible for a stimulus payment. Those are people who have no tax liability but who have at least $3,000 in qualifying income.

The $3,000 in qualifying income, for those who have no tax liability, must come from one or a combination of these sources: earned income (wages, tips, salary) nontaxable combat pay and certain benefits from Social Security, Veterans Affairs and Railroad Retirement. Interest income, capital gains or Supplemental Security Income payments do not qualify as income.

For people in this category, there are a few extra tips:

Super Saturday: Approximately 320 IRS offices will be open Saturday, March 29 from 9 a.m. to 3 p.m. to help prepare returns for people who are filing only so they can receive their stimulus payment. There is a state by state list of sites on IRS.gov.
Use Free File: Several Free File partners are offering tax software programs just for people who are filing solely to receive the economic stimulus payment. There is a special page on IRS.gov: Free File – Economic Stimulus Payment.

Package Form 1040A-3: This also includes tax tips, a sample Form 1040A and a blank Form 1040A that can be completed and mailed to the IRS. Filing a paper return? You must write “Stimulus Payment’ at the top of the Form 1040A.

Need more time: If you can’t make an April 15 deadline, you automatically have until October 15 to file a tax return solely to receive an economic stimulus payment. You do not have to file a form to be granted an extension. However, you must file by October 15 so the IRS can process your return and issue a stimulus payment before the end of the year.

Free help is available for low-income and older Americans. Volunteer tax preparation sites can be found by calling 1-800-906-9887.

Good Afternoon everyone,...

colonelcash@hotmail.com (Dal) — Sat, 22 Mar 2008 20:56:00 +0000

Good Afternoon everyone, I just want to give you an update on the lay and low for the next few anyway. I had the unfortunate experienced on falling on a ladder today and bone in my risk, So, my ability to type is hampered a little bit. And in any event, I'll try to keep place and keep up the voice blogs for the next two days. Thanks , and I talk to you soon. listen

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Decoupled Debit Cards- What?

colonelcash@hotmail.com (Dal) — Thu, 20 Mar 2008 10:55:00 +0000

Decoupled Debit Cards- What?

For a minute, lets imagine a new debit card in your wallet. This new debit card is just like all the others; it looks like a credit card; you swipe it like a credit card. But, different than the others, it's not associated with a specific bank account. Instead, you tell the issuer of the card, say Capital One for example, which checking account you want the money to come from. This new debit card is like a universal debit card that you link to all of your many different checking accounts. So now instead of having a pocket full of debit cards, you have only one.

Okay, let's wake up! Day dream is over! Back to reality.

What if this dream were reality? What if I told you it IS reality?

Capital One bank has quietly been piloting this new debit card for almost a year now.

As reported on PaymentNews;

"Having quietly tested the cards via direct marketing with their own credit card customers earlier in the year, Capital One says it now has its first co-brand debit pilot in market with in-store kiosk, Internet and phone-based enrollment. It says it plans for a second merchant client to launch its pilot this summer and for an affinity client to launch in the third quarter.

With this new debit card, Capital One will offer awards with every purchase! Whether you're using the card to pay for groceries, credit card bills, or to purchase gasoline, you might earn points or other rewards from the issuer. Gwenn Bezard of Aite Groupe says..

"There's a huge difference between the rewards programs of credit cards and debit cards. The actual value received by the customer is 64 cents for every $100 spent with a credit card, while the value received for a debit card program is 10 cents. The actual value that a customer will receive (with the Capital One MasterCard) is expected to be between 40 cents and 60 cents. That's four to five times higher than the typical debit rewards card."

What's in it for Capital One? They earn income know as 'interchange' for each transaction that you complete. Gwen Bezard describes in a report by research firm the Aite Groupe that decoupled debit cars will be a "direct assault against incumbent deposit financial institutions." This means that many banks risk losing HUGE amounts of income to Capital One. If this pans out as Capital One hopes, it will redefine the bankers view of interchange income. Not only would the banks lose the interchange, they'd still have to pay for the processing charges, further damaging their income. Processing includes handling disputes and error resolutions, insufficient fund issues, and ACH transaction fees.

Here's a short video on US Banker, the Lowdown on Decoupled Debit Cards.

Want more info? Read this article at Smartmoney.

Keep your eyes open! If a decoupled Capital One debit card sounds good to you, you'll have to wait until you receive an invitation. Spend a few minutes searching online and you will find their application to enroll, but you need a reference code that per Capital One, you can only receive by invitation.

If you want to call Capital One for more information, their phone number is 1-866-833-9233.

Credit after Bankruptcy

colonelcash@hotmail.com (Dal) — Wed, 19 Mar 2008 11:23:00 +0000

A reader asks...

What happens with my credit cards after filing bankruptcy? Will I still be able to use them? Do I send them back? What if I need a credit card in the future?

A discharge in bankruptcy will wipe away your credit card debt. This means that you will no longer be obligated to repay and the credit card company(ies) are forbiden from ever attempting to collect the debt from you.

Any credit cards that you have now with balances that are discharged in bankruptcy will be closed by the credit card company and you will no longer be able to use them.

However, after the bankruptcy is complete, you may be able to obtain a secured credit card from a bank or credit union. You might may be able to obtain a traditional 'unsecured' credit card, but the limit will be quite low and the interest rate will be very high.

A secured credit card is a 'traditional' credit card with a twist. You deposit money in a financial institution and grant that institution a security interest in your deposit in exchange for the credit card. The financial institution will hold the money that you have on deposit just in case you were to default on the credit card. If you were to default, they would take the money on deposit to payoff the balance on the card and close the account.

For example, you deposit $500 in a savings account at a credit union, the credit union puts a 'freeze' on the $500 and issues you a credit card with a $500 limit.

A secured credit card after bankruptcy is really a good way to go. You get a managable credit line at a reasonable interest rate. This is a good way to rebuild your credit after bankruptcy.

BIG VISA security breach~Hannaford Brothers

colonelcash@hotmail.com (Dal) — Tue, 18 Mar 2008 10:09:00 +0000

Here we go, again! Do you remember the TJ Maxx data security breach? This new compromise isn't yet as big, but could be!

News just started to filter out to financial institutions on Friday that VISA branded cards and their card holders were compromised. Because of the agreements that VISA has with their merchants, not much more was said. They only explained that a merchant discovered a problem.

Now, a few days later, it is official. The breach happened at Hannaford Brothers grocery stores. Thus far, 4.2 million cards have been compromised and 1800 cases of fraud have been reported.

Hannaford reports that no identifying personal information was exposed, only VISA card and PIN numbers.

So, if you used your VISA debit card in a Hannaford grocery store in the Northeast, or a Sweetbay store in Florida, or in an independent grocery store selling Hannaford branded products, you should immediately contact your financial institution.

Yesterday, the VISA networks put out a formal alert to all financial institutions explaining the compromise. This alert directs the financial institutions to block the affected cards and re-issue replacements.

Apparently this breach was discovered on Feb. 27, 2008, and shut down on March 10th. According to reports, the data breach started on Dec 7, 2007.

Your financial institution has received a list of all their customers with accounts that were compromised. If you discover unauthorized transactions on your card, immediately contact your financial institution. Keep records of everything just in case you need to follow up; copies of statements, name of the person that you spoke with and the time of day, dollar amounts, dates, etc.. You have protection under the banking laws just in case you are a victim of fraud.

News from the IRS- Economic Stimulus Payments

colonelcash@hotmail.com (Dal) — Mon, 17 Mar 2008 19:13:00 +0000

Just received this alert from the IRS about the Economic Stimulus Payments-

WASHINGTON — The Internal Revenue Service announced today that it will begin sending more than 130 million economic stimulus payments starting May 2. The initial round of weekly payments will be completed by early July.

The IRS also announced the availability of a new online calculator on IRS.gov to help people determine the amount of their stimulus payments.

Stimulus payments will be made by direct deposit to people who choose to receive their 2007 income tax refunds through direct deposit. All others will receive their economic stimulus payments in the form of a paper check.

“To receive an economic stimulus payment, people just need to file their tax returns as they usually do,” said IRS Acting Commissioner Linda E. Stiff. “The payments will be automatic for the vast majority of taxpayers. Some lower-income workers and recipients of certain Social Security and veterans benefits who don’t normally need to file a tax return will need to do so in order to receive a stimulus payment. IRS.gov has all the information people need to help them obtain a stimulus payment.”

Stimulus payments will be sent out in the order of the last two digits of the Social Security number used on the tax return.

Because the IRS will use the Social Security number to determine when checks are mailed, taxpayers may receive their checks at different times than their neighbors or other family members. On a jointly filed return, the first Social Security number listed will determine the mail-out time.

The IRS expects to make about 34 million payments within the first three weeks after the payment schedule begins May 2. With more than 130 million households expected to receive stimulus payments, more than 25 percent of the payments will be made in the first three weeks.

Taxpayers who choose direct deposit on their federal income tax returns can expect to receive their economic stimulus payments between May 2 and May 16 provided their returns were received and processed by April 15, 2008. For taxpayers who did not choose direct deposit on their tax return but whose returns were processed by April 15, the paper checks will be in the mail starting May 16, with the initial mailings completed by around July 11.

The IRS is also announcing today the availability of an on-line calculator on IRS.gov to help taxpayers determine if they are eligible to receive an economic stimulus payment and if they are, how much they can expect. Anyone who has prepared a 2007 income tax return can use the calculator. It will ask taxpayers a series of questions, so they should have their 2007 tax returns handy. After answering the questions, the calculator will provide the projected dollar value of the payment.

Below are the schedules for economic stimulus payments related to tax returns processed by April 15, 2008.

Stimulus Payment Schedule for Tax Returns
Received and Processed by April 15

Direct Deposit Payments

If the last two digits of your Social Security number are:
Your economic stimulus payment deposit should be sent to your bank account by:

00 – 20
May 2

21 – 75
May 9

76 – 99
May 16

Paper Check

If the last two digits of your Social Security number are:
Your check should be in the mail by:

00 – 09
May 16

10 – 18
May 23

19 – 25
May 30

26 – 38
June 6

39 – 51
June 13

52 – 63
June 20

64 – 75
June 27

76 – 87
July 4

88 – 99
July 11

A small percentage of tax returns will require additional time to process and to compute a stimulus payment amount. For these returns, stimulus payments may not be issued in accordance with the schedule above, even if the tax return was processed by April 15.

All or part of an economic stimulus payment may be applied to back taxes or certain other debts of the taxpayer, such as delinquent child support and student loans. In such cases, the IRS will send a letter to the taxpayer explaining the offset.

To accommodate people whose tax returns are processed after April 15, the IRS will continue sending weekly payments. People who file tax returns after April 15 and receive a refund can expect to receive their economic stimulus payments in about two weeks after receiving their tax refunds, but not before the date they would have received their payment if the return had been processed by April 15. To ensure taxpayers receive their stimulus payment this year, they must file a tax return by Oct. 15.

Two bureaus of the Treasury Department are involved in making the payments. The IRS will calculate the amount of each economic stimulus payment based on the tax year 2007 income tax returns it receives. The IRS will then forward the information to the Financial Management Service (FMS), which is the bureau of the Treasury Department that makes federal payments such as Social Security benefits, federal income tax refunds and, now, economic stimulus payments.

The IRS reminds taxpayers that they can get their stimulus payments faster by using direct deposit when they file their tax return.

In addition, the IRS urges taxpayers to file electronically. For people who normally don’t need to file a tax return, the IRS and Free File Alliance have a special program set up to allow for free electronic filing.

Resolution Update

colonelcash@hotmail.com (Dal) — Mon, 17 Mar 2008 10:07:00 +0000

Seeing that we're almost through the first 90 days of the year (76 and counting..), I thought I'd look to see how I'm progressing towards my new years resolutions. The original post is in quotes...

* Drop Sixteen Pounds by April 1- just before hunting season '07, I weighed in at 166#. This morning I'm 180#. I have this really cool Navy Seals exercise and diet plan that worked very well for me a few years ago. I'll begin that plan again to help reach this goal.

With two weeks to go, I've made progress, but I'm not nearly as close to my target. Right now I'm at 174#. At this rate, it will be the end of April before I'm down to where I'd like to be. Good news is that I'm going in the right direction!

* Payoff the MBNA Visa Card- I have a few more months at the intro rate of 1.49%, then it will adjust to prime +. The balance is right around $7k (I intentionally charged some big ticket expenses and purchases instead of taking the money out of a high yielding money market account, of which I will do when the rate on the credit card adjusts.)

I was able to meet this goal, although I didn't exactly pay it off. In reality, I paid off about $4500 of the amount owed and refinanced the balance into long term debt. The good news here is that we are down to a car loan, our mortgage, our HELOC, and a small personal loan. Other than our monthly living expenses, this is all of our debt. Progress!

* Sell the boat- not the little fishing boat, but the run about. On top of being expensive to insure and maintain, the price of gasoline is becoming quite prohibitive. The only problem with selling it now is I'll be taking a bath in losses because I'll need to price it low enough to attract a buyer. The boat, although in extremely good condition, is 20 years old this year. This 23' Regal Valenti runs like a top, powered by a 7.4 liter Mercruiser. I've owned it now for 4 years and loved almost every minute with it! In case you or somebody you know wants to buy it, I'll email you pictures! It has a brand new 2006 Venture Trailer that can go with it, if the price is right!

This is one thing that I really do not want to do, but understand that I really should. It's not yet the right time of year to put a boat up for sale (we still have a foot or two of snow on the ground..). I think that my bath might be worse now than what I originally thought. I'm not in a position where I NEED to sell the boat, its just that if I don't use it more than a few times a year, is it really worth keeping?

* Read a book a week- right now I'm finishing up Rudy Giuliani's biography (not that I'm a fan or anything, just reading the book). Next in line will be Tim Ferriss's 4 Hour Work Week or Lee Iaccoca's latest.

I finished reading Giuliani's biography. I'm glad that's over. I also finished Tim Ferriss's 4 Hour Work Week. This has to have been one of the most eye opening books that I have ever read. Highly recommended! I probably would have read a couple of more books by now, but I've been so engrossed reading, and re-reading this book, I haven't wanted to use the time that I've found for anything else, yet!

* Work 4 hours per week!

It was relatively easy to shave off a few hours a week by employing some of the methods discussed in the 4 Hour Work Week. Progress!

* Stay within the budget!

Anyone who has ever tried to stay within a budget will tell you that one of the hardest parts of establishing a budget is keeping track of everything that you spend. Simplifying our spending was and is the hardest part. However, the fewer the daily expenses, the less there is to keep track of. More progress!

* Continue to grow my business- will be adding a few new services to include tax prep and plastic card POS processing.

Thus far, I've progressed to the point of having the plastic card POS processing service available, but haven't yet pursued it. It's on the back burner right now. I need to work on the game plan.

* Visit Graceland

Our plans for this goal have changed a tad. Instead of going to Tennessee, we're going to DC. We'll be visiting all of the attractions.. We'll be there for about a 3 days, so we should have enough time. From there, we're going to visit Hershey, PA, going to Hershey Park. No telling how long they'll be open now that they're moving operations to Mexico....

Kids and Cash

colonelcash@hotmail.com (Dal) — Wed, 12 Mar 2008 10:47:00 +0000

One of the best and nicest things that we as parents can do for our children is to teach them about money. I don't mean things like balancing a checkbook. I'm talking about fiscal responsibility.

Things like how to earn. How to save. How to buy. How to give. How to invest.

A while back, I wrote in this post about a story that suggested kids today expect that they'll be big wage earners, earning over six figures. I hope its true! But, without knowing how to handle their finances, they'll end up living paycheck to paycheck, no matter what their level of income.

Here are a couple of real quick ideas posted at Free Money Finance on starting the teaching the process with your kids.

Related posts on Money and Credit
Teaching a son about borrowing
Financial Illiterates

Tapped into the Emergency Fund

colonelcash@hotmail.com (Dal) — Mon, 10 Mar 2008 11:23:00 +0000

At around midnight Sunday, the lights went out. I was worried that if the power was out for too long, the pipes might begin freezing. But, it wasn't terribly cold outside and I knew that it would probably be okay at least until it was light out.

When the sun came up, we still didn't have any power. So, I went to the basement to get out the emergency generator. Getting it out from the basement wasn't an easy chore. Ice had built up in front of the basement door. I had to chop through that before I could get the door opened.

Finally, I got the generator outside and went to start it up. Wouldn't you know, after my third or so pull on the cord it snaps! Now what!

I go inside to call the power company to find out just how long they anticipate the power being out. After holding for 15 minutes or so, I'm told it could be until TUESDAY!

Now, the power had been out for nearly eight hours at this point. I couldn't fix the generator, or otherwise get it to start, so I called Lowes to see if they had any generators.

Chuck told me that they were going fast, that he had a few left. I took out my emergency credit card and purchased it over the phone.

This generator set me back about $750.00.

I really didn't want to spend this money, but I didn't feel I had much of a choice. As far as I knew, the power may have been out for another couple of days, and if my pipes were to freeze, it would have cost me as much, if not more, to repair the damage. Not to mention that I wouldn't have any heat or water if the pipes were to freeze.

Anyway, the new generator has an electric starter, so I won't have to worry about breaking the cord next time. I'll get the old generator fixed and keep it as another stand by, or maybe I'll sell it to get some of the money back.

The power came back on at 4:00 pm. The new generator ran for just over 5 hours...

Reviewed- Kiplingers new Car Buyers Guide

colonelcash@hotmail.com (Dal) — Thu, 06 Mar 2008 13:27:00 +0000

Kiplinger just announced its new Car Buyers Guide, so I thought I'd spend a few minutes checking out the site. Here is what I found-

User Friendliness-

On a scale of 1-10, 10 being the most user friendly, I'd rate this site a 10. I was able to quickly and easly find out MPG and invoice information on each vehicle that I researched. Very easy to navigate.

Usefulness of Information-

Excellent information is provided on each model that was researched. From saftey equipment and ratings, to base invoice price, tons of easily accessable information!

Site Design-

Although it is a little busy, it is nicely laid out and easy to navigate. It didn't take me long to adjust to all of the infomation and to find what I was looking for.

Content-

Tons of information for the car shopper. From new car invoice pricing to used car information, this site appears to have it all! I especially liked the ability to 'spec out' the car of my choice so that I could (1) see how much money it would be, and (2) see what options were available.

Summary-
Great content, lots of information for the car shopper. If you're looking for information to arm yourself with before shopping, I'd highly recommend visiting the Kiplinger Car Buyers Guide

Click Here for the Press Release