According to Reuters, “One in five adults don’t use the Internet. Seniors, non-native English speakers, low-income and less-educated households are least likely to have access. [Pew Internet & American Life Project] also reports that 62 percent of households had access to broadband last year, with minority groups, rural areas and low-income households least likely to have high-speed service.” How comfortable are your grandparents with accessing their information over the internet?

If someone does not access their statements, is it a big loss? Studies say yes. According to a survey conducted by the Social Security Advisory Board there is a “clear link between receipt of the statement and understanding of Social Security benefits”. The study found that more than 50% of individuals who read their Social Security Statements increased their savings rate and 25% contacted a financial adviser. Those statements triggered many individuals into taking their impending retirements seriously.

I absolutely understand the need for the Social Security Administration to save money, and $70 million in annual savings is nothing to sneeze at a time when belt tightening is needed. I do, however, believe that better notification should have been made to all individuals. Perhaps one final mailing of the statement with a letter attached stating that it would be the final mailed statement, and directing the recipients to the new site.

Did you know that you would no longer receive statements? Will you sign up on the new Social Security site?

As the main breadwinner in my family, I know that it can take a bit of a mental adjustment for men who are bring out-earned by their wives. My BF and I have already discussed that he would be the stay-at-home parent if we decide to get married and have kids.  It’s a role that we would both be comfortable with, and many couples share our view.  According to the U.S. Census Bureau, 24% of kindergarteners were cared for primarily by their dads in 2006, up from 16% in 2005.

Below is a video on this rising trend.  Please watch the video and then tell me in the comments, would your family be comfortable with this reversal of the traditional parenting roles?

If you listen to the news, it would make you run in the opposite direction of buying property at a time when you probably should be running directly to real estate.  Apparently many of you do not watch the news either because, according to the U.S. Department of Housing and Urban development, existing home sales were up 5.3% in the first quarter of 2012 versus the same time last year.  The housing affordability index is at its best, because of low housing prices and record low mortgage interest rates. The average interest rate for a 30-year fixed-rate mortgage was 3.88% during the first quarter of 2012. If you’re in a stable financial position and have been waiting for the right time, now might just be the best time to buy.

Personally, I’m not looking for a home to live in.  I’m looking for a home that you or your friends would want to rent from me.  Yes, I’m shopping for rental property that I plan to never live in.  If I see the house more than four times per year it would just be for maintenance and changing the batteries on the smoke detector.  That would pretty much be it.

Since purchasing my first investment property two years ago, I’ve learned quite a bit about how to make a better selection.  It’s not that my first purchase was a bad decision, it probably just wasn’t ideal.  Going forward I would like to see the following in any home that I purchase:

• At least two units.  Three would be ideal.
• Outside of flood zone
• Less than $5,000 in remodeling work/repairs needed
• No major repairs such as roof, heater, gas lines needed
• Close to hospital (the main employer for the area) or good school district.
• Off street parking
• Gas or electric heat
• Delivered with no tenants

Of all the things that I mentioned, price was not one of them.  The price itself does not concern me, as long as when I crunch the numbers, the math ends up being where I need it to be.  To get to the income level that I’d like I’m doing the following:

[(Monthly Rental Income x 12)- 20%] – [Owner paid utilities (annualized) + real estate taxes + fire/liability insurance + lawn maintenance/snow removal] =  Potential annual income

To translate I’m calculating the total rent by twelve to get the annual rental income.  Then, I subtract about 20% for vacancies and/or unseen expenses.  I then subtract all of the expenses that I would be responsible for to get to my annual income.  I didn’t include fees for evictions, maintenance, etc.  I’m looking at the maximum return here.  For the property prices in the range that I’m buying, I hope to have a number close to $10,000 at the end.  If it’s $9,000 that’s fine too, but $10,000 would be ideal.

How do I plan on buying property with so much debt?  I’m doing something completely unconventional that most personal finance gurus would tell you to NOT do.  I’m borrowing 100% of the cost of the property from my 401(K).  I can hear the collective gasps right now.

Are you shaking your head thinking, “Oh, no she isn’t!”  But, oh yes, I am!

Hear me out.  My 401(K) is actually doing pretty well.  It’s been averaging about 10% returns so far this year.  I’d love to continue riding that 10% wave for a long time, and honestly, I have more than 30 years before my official retirement age.  What I am looking at here is the potential for property to add to my income right now instead of 30 years from now.  Although, if I keep the property long enough, it can probably supply me with income into my retirement.

But wait, you’re giving up the tax savings by not stashing money into your 401(K), you’re thinking.  No, I’m not.  I’m going to continue putting the same amount of money into my 401(K) to get my company’s match and I am going to pay the loan back into my 401(K) as well, plus interest.  A strategy that I might employ is taking out a first mortgage on the home once I have held it for at least six months and using that money to pay off the 401(K) loan while having a tax deductible loan for the home in my name.  I can see the light bulbs coming on now.  Genius, isn’t it.

But, as you know, the best laid plans sometimes doesn’t come to fruition.  I fully realize that I can be turned down for a loan.  This is why I am contemplating selling the first property.  I would use that to pay the loan off and bank the extra money, since the property has appreciated in value by about $20,000 since I purchased it.

I don’t know if it will all work out, but I hope it will.  Just in case you think that no one else has done this successfully, reader Mildred wrote in to tell me that how she retired in her 50’s on income producing property that she purchased as a nurse.  When I grow up one day, I want to be like Mildred!

So, do you think that I’m crazy?  Is my plan nuts?!  Would you do this?

Spirit announced it will increase the fee paid at the gate for a carry-on bag placed in an overhead bin from $45 to $100. A carry-on bag paid for at a kiosk in the airport will rise to $50 from $40. The new fees are effective Nov. 6. I won’t fly Spirit because I’m pretty sure that they’ll charge for oxygen once you’re in the sky, but many of you do fly the low cost carrier to save money.

You can be sure that competitor airlines are looking at Spirit’s industry leading profits with an eye to replicating those numbers themselves.  As bad as Spirit is with fees other airlines are following suit. According to a USA Today article, fees have risen at just about every carrier including:

• Delta Airlines who charges $80 for a second checked bag for fliers paying online and $100 at the airport for flights between the USA and Europe or North Africa.
• American Airlines who charges $70 for flights between the USA and South America (excluding Brazil).
• JetBlue who charges $40 for a second checked bag, but the first bag is free (for now)

According to the Bureau of Transportation Statistics, “17 of the largest U.S. airlines collected $2.6 billion in baggage fees and $1.8 billion in fees for changing or canceling bookings during the first three quarters of last year. In 2010, 20 airlines collected $3.4 billion in bag fees and $2.3 billion in rebooking fees.” So, fees are here to stay and probably will get worse as gas prices continue to rise.

Honestly, airlines can charge whatever they want for their service.  They are private companies employing tens of thousands of people and having an impact on even more jobs.  That doesn’t mean that we have to like it!

I would love it if airlines had a wizard on their sites that could help you model the total actual costs of your trip if all fees were included (including baggage fees) prior to booking your ticket.

So tell me, what do you think about these higher fees?

Tuition bills and the costs of living seem to keep rising while average incomes continue to stagnate. So what’s the answer?  Should graduates give up their dreams of working for a top-notch law firm or medical facility? Should they hunker down and work even-steven jobs in order to pay off their debts? This is a personal decision that each student will have to make on his/her own. Here are a few options to consider that you may find illuminating:

• Look into online campuses and e-degrees.
  More and more students are earning their Master’s degrees online in order to save money on tuition and have the ability to work a full or part time job while learning. For many graduates—especially ones who are low on money, have huge debts, or are having children—the flexibility and affordability of e-learning is worth a second look.

• Government consolidation loans.
  This will require some due diligence and research, but there are loans out there that entail the government repaying your loanfor you or helping you to heavily consolidate it in return for your contractual promise to work in a non-profit field or other related industry. If you know exactly what kind of work you want to do and it fits the terms of one of these loans, you may stand to see your debts erased in ten years time.

• Intern in the field or try a fellowship.
  Before you launch yourself into the considerable psychological and financial stress of a Master’s degree, it would probably behoove you to get some experience in the field and makesure you’re on the right path. The best ways to do this are internships (which look great on resumes and can groom you for jobs) and fellowships (which often pay fellows stipends and even salaries).

Pursuing a Master’s degree is a big decision that can allow you to reap large rewards. It can also cause you to sink further into debt. That’s why it’s important to really consider all your options and make a sound, informed decision about your educational trajectory and career path.

This article was brought to you by Amanda Green.  This is especially timely information since I just started graduate school again this week and I will complete my second Master’s degree with no debt!