Jul

10

Yes, we need to look to long term solution to reduce our dependency on oil and foreign oil. Duh! But today we can seriously and significantly minimize the problem today.

Go to Stop Oil Speculation website and fill out their form to email to your congressman. Url, http://capwiz.com/sosnow/issues/alert/?alertid=11571321 . Do not let them asking for your phone number deter you. I you don’t want to supply one just make one up. This is too important an issue to sit on the side lines for.

Also, please pass this information to others!

If you want more scoop airline customers received a letter with very solid information on the subject. I have excepted below…

“Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.”

Jan

26

How soon we forget.

The government plans to send many of us checks so we can go out and spend this money and put it back into the economy. What is this money they will be sending us? It is an advance on your “anticipated” income tax return for fiscal year 2008 earnings.

This would not be the same concept as getting a payday loan how???

Why major media does not tell you this is beyond me. Why our government does not tell you this is beyond me.

So…I am telling you. Here is how this Government Stimulus Package is going to work (and this is the same as the last time they did this). We will assume for the sake of our example that the government will send you a check for $500.

If you will be getting a $1000 tax refund when filing your 2008 income tax return you will only be getting back $500, as Uncle Sam already fronted you the first $500.

If you will be getting back a $200 tax refund when filing your 2008 income tax return then you actually owe the government $300.

The key to dealing with this rebate is knowing in advance if you will owe the government or if they owe you when you file your tax return next year on this years earnings. If you know you are getting a refund from your tax return you can consider this payment up front. If you typically owe the government money at tax filing time then you might be best to take this money and put it in the bank as all they are doing is floating you a loan that you will need to pay back in one lump sum!

Jan

19

Live Within Your Means

We have created quite the mess with this subprime debacle. We want to blame business,  business wants to blame the government, wall street is reeling.

Happy times

Unfortunately I think the slide has just started. Lets take inventory…

… Absolute Insanity …

I guess since it has been a while since the .COM insantity we needed a new means of losing our minds.

If you really think about it this has been nothing more than the old cliche “if it too good to be true it probably is”. The sad thing though is people actually made a great deal of wealth while many are now losing what little shirt they had to begin with. “I want it now, I’ll deal with the consequences later”.

Fact, is subprime lending has been going on for years. I remember when I was young, poor, and just starting out having a loan with HFC for a stereo and paying 25% interest.

Subprime lending for those of you that only know the buzzword is the market for those with “less than stellar” or “lack of” credit history. In exchange for outrageous interest rates and fees lenders will give money to people that have a poor record of paying it back.

Don’t get me wrong. Anyone, even the most disciplined person, can fall on financial hard times. The subprime market can be a means of re-establishing ones credit. But subprime lending became sheer insanity that now has us heading into the crapper.

The exposure by major financial institutions into the housing subprime market is just staggering. It is hard to identify these institutions until they report staggering losses.

According to CNN state by state going back to 2005 the entire Puget Sound (Greater Seattle/Tacoma/Everett and surrounding suburbs) had a 22% exposure. Much of California (25% statewide) and Florida (30% statewide) deeply buried in a sea of subprime lending.
http://money.cnn.com/magazines/fortune/storysupplement/subprime_statebystate/

And here we stand today in all this chaos. All because people are not willing to live within their means. All because of the greed of business. All because our government turned its head because at the time the alternative was a slowing economy.

I think we should ammend the “if its too good to be true it probably is” to “If you have the means to get in during the bubble and out before the burst you can exploit and profit at the expense of your fellow man”

I think maybe Countrywide and a few others waited too long. Eh?

Dec

30

1. Spend what you make

2. Create a budget and stick to it

3. Begin to make more than the 4% required minimum payment.

Will this hurt a bit? Of course it will…but what are your goals?

A) To keep your debt at its present level.

B) To keep increasing your debt.

C) To pay down your debt.

The choice is entirely up to you.

Have a great upcoming new year.

Mar

4

I read in a recent Seattle Times article that if every American used just one CFL bulb that we could prevent greenhouse emissions equivalent to 800,000 cars. What are you waiting for?  

The next story I would like to read is about stores not being able to keep them in stock. 

Dec

30

I just read on Forbes (consumer debt) that the average consumer debt is $9,200 per household. As many of us do not carry any credit card debt this number is actually much higher. I personally know too many people that have over $25,000 in credit card debt.

Folks, this is crazy. Carry a balance this large costs you about $368.00 a month if you make the minimum payment of 4% on the balance at 15% interest. If you never add another dime to the card it would take you 10 years to pay the balance down to $324.00, and you would have paid close to $9,000 in interest on the balance.

Think about this. You will have paid $18,000 for items that you probably cannot even find anymore (the ones that are not perishable), and if you could would not even yield 25% of their value at a garage sale.

What can you do?

1. Spend what you make

2. Ceate a budget and stick to it

3. Begin to make more than the 4% required minimum payment.

Will this hurt a bit? Of course it will…but what are your goals?

A) To keep your debt at its present level.

B) To keep increasing your debt.

C) To pay down your debt.

The choice is entirely up to you.

Have a great upcoming new year.

 

 

Dec

24

Unless you are at the edge of the cliff ready to fall, the following are a list of taboo financial moves to make

  1. Borrowing against your 401k or other retirement accounts
  2. Borrowing against you mortgage to payoff credit card debt
  3. Stopping retirement savings to deal with monthly cash flow problems

1. Some 401k plans allow you to borrow money against your earnings. Stay away for these! The whole point of retirement plans are to save for your future. Never withdraw or transfer money from retirement accounts without first consulting with a tax professional. The penanlties for doing this are severe and you would actually save money by just burning it in your fireplace.

2. How did you get into credit card debt to begin with? Are you not disciplined with spending money? If the answer is no, then how are you going to stay out of debt once you pay it down? Borrowing equity in your home to pay off your credit cards is a rotten idea. Take a pair of scissors and cut the cards up, then start making double or triple the minimum payment required. This is the best way to get out of debt.

3. If you are considering cutting or stopping your retirement savings in order to meet your monthly spending you need to reconsider. For one, if you are in a qualified pre-tax plan you will end up paying more in tax and actually cutting your paycheck. And, if your company matches your contributions you are giving money away. 401k information. Instead, put together a budget, or change your budget. Some belt-tightening may be in order.

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