Coors Credit Union

We've Moved!

2010-06-23T06:35:00.004-06:00

Your Coors Credit Union blog has a new home.

Click on over for a visit.

And don't forget to update your bookmarks and readers.

Credit Union College Scholarships: Apply Now

2010-03-23T01:28:00.001-06:00

Spring is the season for applying for scholarships and deadlines are rapidly approaching. Here is some info on two credit union scholarships that any credit union member who is a student should consider.

But first a word about taxes. The FAFSA (Free Application For Student Aid) requires tax/income information. So, parents, you should not slack off and wait until the eve of April 15th to do your taxes. Many scholarship applications require a copy of the FAFSA. College financial aid office deadlines for FAFSA applications may be much later, but many scholarships deadlines are in March.

And students, Yes, applying for scholarships is not fun, but it may be the most anyone will ever pay you to write an essay. It won't hurt.

So here are two credit union scholarships for you:

Coors Credit Union Scholarship

Our scholarship program (available to high school seniors and undergraduate students) awards two (2) $1,000 scholarships to student members of the credit union who demonstrate a caring spirit and appreciation for others

Download and Complete the Coors® Credit Union Application

Eligibility Requirements

Scholarship applicant must be:
• A member in good standing with Coors Credit Union.
• A graduating senior or current college student
• Accepted as an incoming freshman or already attending a college, university, trade or craft school.

Deadline To Apply

Application and supporting documents must be received together by March 31, 2010.

Notice of Awards

Winners will be notified by May 14, 2010.

Braymen-Beach Scholarship

Offered by Board of Directors of the Credit Union Foundation of Colorado and Wyoming. One $5,000 scholarship award will be given to a student seeking a business degree from a four-year accredited institution, who is a member of a credit union affiliated with the Credit Union Association of Colorado. The deadline for applications is Tuesday, March 31, 2010.

To download the brochure and application go to: www.colocu.com/brayman-beach

Qualifications

* Must be a U.S. citizen, at least 16 years of age

* Member of a Colorado credit union affiliated with the Credit Union Association of Colorado

* Interest in pursuing a business degree

* Beginning freshman, sophomore, junior or senior at a four-year accredited institution conferring bachelor degrees located in the US

* Scholarship funds must be used by January 31 of the year following award, or the funds will be forfeited

* Submit a complete application with required documents

Application must be post-marked, emailed or faxed by MARCH 31, 2010

Selection Criteria

· * Grades

· * Academic Goals

· * Professional Goals

· * Financial Need

· * Community Service

· * Extracurricular activities

Selection of the recipient is the sole discretion of the Board of Directors of the Credit Union Foundation of Colorado and Wyoming

Winner

· * Will be notified in writing within 60 days of application deadline

· * Funds will be transmitted directly to the institution for credit to the
student's tuition, room, board and fee account.

Don't Play Four Square with Car Sales

2010-03-16T05:42:00.000-06:00

I ran across this post by Ben Popken on The Consumerist and just has to pass it along to you.

Popken got the low down on the auto car sales game of Four Square straight from a used car salesman. I know I've played in this game without realizing it and by passing this to you I'm exposing it for more to see. Following is most (not the entire) of the Consumerist post, I give them total credit for the whole thing, and didn't want to risk that you miss it. Before we get on to the game, I have to tell you The Consumerist's NO. 1 defense against getting the bad end of a car sale and that is "GET YOUR FINANCING THROUGH THE CREDIT UNION BEFORE YOU EVEN STEP ON TO THE LOT." And now onto the game...

HERE'S HOW THE FOUR-SQUARE WORKS:

The "worksheet" (or four-square, as it's called) is the first thing a person will see when they sit down to negotiate a car's price. This sheet is used both in used and new car sales. When the interested party sits down, they've already driven the car, and have talked to the salesman about what they're looking for. The salesman has had the trade evaluated, if there is one, and has gotten the customers something to drink to take the edge off.

After sitting everyone down, the salesperson starts filing out the four-square. A blank one looks something like this:

The salesman will only put down the make, model, VIN and customers information (not pictured). Then, the salesman will have the customer initial the part that says "I will buy today if numbers are agreeable to both parties." If there's any resistance (which normally there isn't), the salesman simply says that its to make sure that the customer really is ready to drive the car off the lot today - IF they can get the numbers right. I never had anyone not sign the form who was actually willing to buy the car today. By doing this, you have shown your commitment to the manager in the tower (tower: back room, usually behind glass, where the salesman goes to confer with his manager.)

(A note about the tower: This is where the deal actually takes place. The salesman you are dealing with is NOT who you are negotiating with - the sales manager, who sits behind a desk (and is usually one of the scummiest people you'll ever meet) is who's actually going to be haggling with you. This will not happen in front of you, nor will you see what is actually happening. It's a bit of theatre, this part.)

The salesman will then take the paper up to the tower, and when he returns, you'll see something like this:

The salesman will start, very matter-of-fact, going over the numbers with you. First, he'll start with the value of your trade.

The value of your trade, as listed, is $3000. You, expecting at least 5k for your beater, are unhappy with the number. That's fine, the salesman says. We'll get to that in a moment. He then goes on, very quickly, to just state the price of the car. Salespeople are instructed to move over these parts of the sheet VERY QUICKLY, as you'll see in a moment.

Next, he arrives at the down payment square, which is easily double what you'd hoped to put down today on the nice new Prius you now want very badly. Lastly, he arrives at the monthly payment. "That payment is outrageous! I can't afford that!" is what you're probably thinking. All in all, these are pretty crap numbers from what you see.

THESE NUMBERS ARE MEANT TO INSULT YOU AND PUT YOU ON THE DEFENSIVE, ESPECIALLY THE LAST TWO. The idea here is that, unless you're really observant, to get you less concerned about the overall price of the car and what your trade is worth (we'll go into trade manipulation in a moment), and get you to the payment plans offered at the bottom. The salesman, who knows you are steamed, will keep on acting like nothing is wrong, and hand you a pen to sign by the X. This is done for two reasons - 1)You might be the biggest, dumbest sucker we've had today and actually agree to these terms (happened twice the three months I did this), or 2) You look like the aggressor when you say you won't sign.

When you decide state that those numbers don't work for you, the salesman will ask which numbers you have a problem with. Most people will go straight to the down payment, as that's usually the part that most people gag on, followed closely by the trade in value. The salesman will then either talk about your trade (and proceed to downplay the car as much as they can - that's usually pretty easy), or will go directly to the down payment. Very discreetly, the salesman will fold the four square so that the only figures you see when you're talking are the down payment and monthly payment.

The salesman will then say "Well, what were you thinking about putting down today on the car?" You'll respond something like 1500, 1000 or even less if you're in a bind and NEED the car but are broke. The salesman will nod, and act as if he's empathetic with your plight - those bastards up in the tower *are* asking too much from you! He'll then cross out the down payment number and write in the number you're looking for.

At this point, the salesman will say something to the effect of, "Well, we may be able to get that down payment done for you. But, as I'm sure you know, the less you put down today, the more you'll have to pay off on the car - so this payment is likely to go up. What were you looking to pay on the car for payments?" You respond, "I didn't plan on paying that much, must less more!" The salesman will pause, hoping that his last line will sink in a bit and you'll either acquiesce to the current number or offer something higher.

If you don't, and insist that you were only planning on paying $300 a month for the car, the salesman will say, "I don't think I can do this, I really don't. But, I tell you what; my manager is crazy today and hasn't sold that many cars - he's really under the gun from upper management to get some cars out today, and he might just do this. Tell you what - if I can get these numbers, would you buy the car right now?" You say, "Well, sure, I guess." The salesman will say, "Okay, can you write me a check for the down payment so I can take it up there? They're not usually willing to turn down someone if I show up with cash in hand!" (Real reason? People are really unwilling, for some reason, to ask for a check back later if negotiations start to break down.)

Most people, at this point, will write the check - if the salesman is good enough with the snow job, people will honestly think that they're getting a good deal and that they need to do everything they can to get the manager to cave and sell them the car for next to nothing. The salesman will also get you to sign the form, by the X, saying that you're agreeing to the new numbers, not the old. He'll then put on his "wish me luck" face, and trudge up to the tower to haggle with his boss, the mean ol' manager.

(A note about the X: There's nothing legally binding here, BTW. You could sign your SSN, your blood type, and your name all on that line - but there's nothing binding on either party to make that happen. It's a precursor to the real deal with all the lovely paperwork in finance...but not the actual deal. However, the dealerships make you do this so you'll think its official and leverage yourself into thinking you may have just bought a car.)

The salesman will return, with a huge grin on his face, and something like this:

He'll say, "Wow! He really is in a tough spot! He was willing to let this go for the down payment you wanted! But, like I was saying, he couldn't really hit the payment you were looking for because he went down so far on the down payment, and he can let it go for this. (Motions towards new payment offer.) Would this work for you?" You will sit and look at the number, and wish you weren't buying a car today but instead on vacation. You will either agree, and we'll enter the final turn, or you'll go another couple of rounds with them until they either meet you somewhere in the middle, or you start to walk out.

(Note about "walking out." This doesn't work if your offer is, truly, unrealistic. You need to do your homework before going in - this includes finding out how long the car has been on the lot [just driving by and seeing it for a couple of weeks is good ammo], what the going rate is for those cars, and above all else, securing your financing before you get there, so you're more worried about the ACTUAL PRICE OF THE CAR instead of these bullshit terms.)

Now, lets say you've got a problem with the trade price, as well as the other figures (other than price.) The salesman (and manager) will probably agree to whatever price you want for your trade, within reason. So, assume the sticking point is that you want $5,000 for your trade - that's fine, we'll just say it's going to be bought for $5000. We simply move around the price of the car to $2,000 more, and you're in the clear. You don't notice, we don't say anything, and you feel happy. This is the way that dealerships do the whole "push pull or drag" sales where they'll give you $5,000 for an engine block.

So, at this point, we'll assume that you've gotten everything square and you're ready to close the deal. Sometimes, if the manager feels especially nasty (or has gone a few rounds with you via the worksheet), they'll come out of the tower and say "Folks, I'm (Douchey McDouchebag), the sales manager here. Congratulations! You've just bought a car! We were able to get the payments to $310 - I know you wanted $300, but that was the best we could do. That's close enough, right?" They'll nod their head (another psychological trick to get you to agree), and almost every time the person says "Yea, that's fine!" The problem is, they didn't realize that a $10 payment bump over a 5-year loan nets an extra $1k in profit for the dealership. It's called "the $10 (or $15, or $20) close", and I only saw it fail when a person was really, really exasperated with us. The deal ends, and you wake up in a year realizing that, somehow, you're $6,000 upside down on your car, while the dealership is laughing all the way to the bank.

So, those are the major pitfalls associated with the four-square; it looks really unassuming on its face, but its designed to make you pay more, and not realize what's going on. The manager, during negotiations, will write in BIG BIG letters, will turn over the sheet if he needs room, and will write over other things in order to make it as confusing and hard to deal with as possible in attempts to wear you down and make you sign.

The saying we used to have around the lot was "It's like the Dallas Cowboys playing a Pee-wee Football team." The average car salesman does this dance 4 times a day - you do it once every 3-5 years. They are better, and they will get you on some level. However, by doing stuff like this, you can control how much it happens.

Here's what a finished four-square might look like:

Remember, The Consumerist's advice: GET YOUR FINANCING THROUGH THE CREDIT UNION BEFORE YOU EVEN STEP FOOT INTO THE LOT.

Coors Credit Union has a great reputation for affordable and honest car loans. You get the same great rate for new or used cars and you don't even need to know how any playground games.

Debt Strategy Myth: Pay extra on your mortgage

2010-03-09T05:42:00.005-07:00

There's once piece of financial advices that always causes me to wonder, "huh?" So many personal finance advice experts always say that you should pay extra or even double on your monthly mortgage payment with the intent of paying it down faster.

I never understand this advice for two reasons. First, if you are struggling with debt, your mortgage is likely to be the lowest interest loan that you have. Your efforts would be better allocated toward eliminating high-interest debt. And second, the interest that you pay on your mortgage loan is tax-deductible. The interest on credit cards and car loans are not tax-deductible.

Ron LoSasso, mortgage consultant at Coors Credit Union, put it like this: "I am not a fan of prepaying the home loan as once that is made the only way to get that money back is to refinance the loan, obtain a home equity line of credit or sell the house."

This is an excellent point. On average most people sell their house 7-10 years. The time spent in a house increases as we get older, but generally speaking we like to move around. There are probably dozens of better ways to use that cash.

Maybe this debt strategy myth of that paying more on your mortgage is a might make sense for somebody, but in my opinion this MYTH is BUSTED.

What RedSide Solutions Can Do For You

2010-03-02T06:43:00.001-07:00

Two things that seem to power the world (depending on your perspective) are the two things that we have such a hard time talking about: love and money. Actually we talk about both of these a lot, but often not in a way that gives any meaningful information. This blog isn't about your love life, so I'm going to avoid that topic (perhaps just to prove my point). But, on the topic of money, we're really just beginning to open up.

So many of us have hangups, wherever their basis come from, around money. Mostly this can be blamed on our parents who never talked about money. Which probably comes from their parents not talking about money. Which probably stems from the depression era when parents did want to upset their kids, so they didn't talk about money. I'm not sure how far this tradition of not talking about money goes, but it's gone on long enough.

The typical reason we hold our realities about our personal finances so tightly is because we don't want others to know how little we actually understand money. But the thing is the more we wear the mask of "I'm OK" the worse our problems get.

Since their inception, credit unions have made it their mission to help people conquer their money fears. Without judgement, lecturing or incredulousness credit unions make themselves available to dig people out of financial messes, straighten out unruly record keeping, and just general show people how to effectively manage their money. Over the years, however, this invaluable service has been flying under the radar and only a few people take advantage of it. But this past year has been a veritable perfect storm of an unsympathetic economy.

That's where Coors Credit Union's RedSide Solutions program comes in. Don't let the officialness of the title fool you. RedSide Solutions is all about that traditional Credit Union spirit of people helping people. It's designed to get your personal finances on track no matter how close you've stayed or how far you've wandered from the path. It's about making you successful.

So here's a sampling of what RedSide Solutions can do for you:

establish a budget

explore ways to increase your cash flow

conduct an interest rate checkup to see if your current loan rates are the best possible

help you manage your banking

Don't think your financial questions are too big or too small to ask about. If you've got questions, then RedSide Solutions is for you. Find out more or schedule an appointment.

Time is Ticking on Extended Version of Home Buyer Tax Credit

2010-02-23T06:35:00.002-07:00

To the joy of many homebuyers the First-Time Homebuyers Tax Rebate program was extended last November with a new deadline of June 30, 2010. But if you've been waiting for the spring crop of available houses, you could be waiting too long. The revisions to the program specify that homebuyers who want to get the rebate need to have a house under contract by April 30th. Closing papers must be filed by the June 30th deadline.

Okay, maybe it's still only February, but the last thing you want to do when buying a home is to rush to meet a deadline. Finding a home you'll be happy with takes time. Getting a rebate on your purchase isn't something you should let slip by.

Now, let's review the requirements for the Rebate once more. Pay attention because even if you you didn't qualify for the first version of the program you may qualify for the extended version.

$8,000 for First-Time Buyers

Place a new or used home under a binding contract between Jan. 1, 2009 and April 30, 2010.
To be considered a First-Time Buyer you must not have owned a principal residence in the last three years.
Rebate value equals 10% of the purchased home value, up to $8,000.
Income limits for sales after November 6, 2009 are $125,000 if you are single, $225,000 for couples filing jointly. If you earn more, the rebate amount is reduced. If you earn $145,000 (single) or $245,000 (joint) you won't get a rebate at all. If you earn something between these amounts your rebate will be reduced proportionately.

$6,500 for Repeat or Move-Up Buyers

You must have owned and lived in your home five of the past eight years.
Rebate is equal to 10% of purchased home's value up to $6,500.
The new purchase value cannot exceed $800,000
Same income limits as the First-Time Buyer program

Remember, this is a rebate program, not a loan. However, if you should sell the house or you do not use it as your primary residence within three years after purchase, you will be required to repay the money.

Gather Your Questions for Credit Card Reform

2010-02-16T06:56:00.004-07:00

The Credit Card Reform Act that's been phasing in for practically ever is scheduled to firm on February 22. We've all heard dribbles and bits about the Act, but a survey by Consumer Federation of America and the Credit Union National Association found that most of us don't really know what it's all about.

The White House is hosting a Town Hall Meeting with White House Economic Advisor, Austan Goolsbee on Feb. 22 at 2pm, eastern time. You can submit your questions regarding the Credit Card Reform ahead of time.

You can also submit questions for the town hall through Twitter. Just be sure to include the hashtag #cardlaw in your Tweet.

In the meantime, here's a brief run-down of how the Act affects consumers:

• Consumers must be given 45 days' notice of any changes in the interest rates of future balances or in other key terms of a credit card account.

• Hikes in the interest rates of existing balances are generally prohibited. Exceptions: If a promotional rate expires, if the cardholder makes a late payment, or if the contracted rate was variable. That last one -- a variable interest rate -- is a key loophole that many credit card issuers have been exploiting by changing consumers to variable rate cards prior to Feb. 22.

• Consumers have the right to "opt out" of significant changes that might be imposed on their accounts. To do so, they merely have to close their accounts and pay off the existing balances within five years.

• Limitations are imposed on the issuance of credit cards to anyone under the age of 21.

• Customers who maintain monthly balances must be told how long it will take to pay off that balance if they make only the minimum monthly payments.

• Bills must be mailed at least 21 days before payment is due.

• Credit card issuers must apply any payments to balances carrying the highest interest rates first, and issuers cannot impose over-the-limit fees unless customers specifically authorize such transactions.

Good Time to Buy a Second Home

2010-02-09T06:40:00.003-07:00

Part of the extension to the First-Time Homebuyers Tax Credit is what’s known as the Move-Up credit. This makes getting a tax credit for buying a home open to just about everyone. It also opens up the possibility of getting started in real estate investing.

The requirements to qualify for the Move-Up credit aren’t that restrictive. Your income needs to be $125,000 or less if you are single or $225,000 if you’re married. The home you buy needs to be valued at $800,000 or less. So, if you’ve been thinking about up-sizing, down-sizing this is the time. Your new purchase must be your intended primary residence, so it’s not the time to think about purchasing a mountain getaway. What the Move-Up credit doesn’t require is that you sell your current home. That’s where the opportunity comes into play.

Consider buying a home to use as your new primary residence and turning your current home into an investment. Before jumping in do note that there are many factors to consider.

1. Depending on the rental market pricing and your monthly mortgage amount, you can potentially cover your monthly mortgage payments and create cash flow.

2. You can allow your property to appreciate as the market returns.

3. Capital Gains—You’ll get a break on Capital Gains at sale if you’ve lived in our home for 2 of the past 5 years. So, if you’ve owned your home for at just a few years then renting for the remainder of 5 years could save you some taxes. Or, if you’ve owned your home longer, you could pull in some passive income for a few years before selling.

4. If you are buying your new home in a different area and end up not being happy, you can return to your previous home.

5. I think you can guess that being a landlord isn’t easy. You’ll have to deal with everything you had as a homeowner, plus tenants.

6. Added tax benefits—Once you become a landlord, it’s a whole new world of tax benefits. If you’re serious about crossing over to the lordship consult a tax advisor.

Of course, ultimately the decision is a financial one. You’ll need to have a healthy cash reserve to pull this off. Still, it’s not impossible especially during this time when there are still great deals on homes.

Don't Rush into IRA Conversion

2010-02-02T10:02:00.003-07:00

So, maybe you are running down your financial to-do list and you've come to this one...

Convert Traditional IRA to Roth

Good for you. You know that the recent changes in IRA conversions opens up this possibility to many more people and that the change took place this year.

You also know that getting in on Roth has it's advantages. Such as:

Tax-free withdrawals once you hit age 59.5
No mandatory minimum distributions when you reach age 70.5
Dipping into your Roth earnings doesn't have tax implications
No age limit on contributions

In contrast the Traditional IRA

Contributions may be tax-deductible
Withdraws can begin at age 59.5, but are mandatory when you reach 70.5
Taxes are paid on earnings when withdrawn

The biggest difference, however, between the two is seen in how they handle taxes. The Traditional IRA is tax-deferred and the Roth is tax-exempt. Both vehicles let you earn income without paying taxes on profits along the way, but the Traditional IRA will bring you a tax bill later (deferred). Earning on the Roth are not taxed, though you will pay taxes now on the money you contribute.

On the surface the Roth definitely looks like the more winning deal. But before you rush into conversion you've got some thinking to do. Take a look at the last sentence in the previous paragraph for a clue. What happens when you convert from a Traditional IRA to a Roth is that the chunk of money that you pull out of the Traditional is a contribute to your new Roth and you'll have to pay taxes on it. You can either take the taxes out of these funds or if you've got extra cash laying around, you can use that to pay the taxes. Either way the tax man cometh.

In some cases the conversion is painless and makes perfect sense. For others the amount of money you'll lose to upfront taxes will not justify the end gain. Before you move forward you may want to consult the Investment and Retirement Team at Coors Credit Union. They can offer a no-cost, no-obligations review of your situation.

New Credit Standards Not Really Worth Your Worry

2010-01-25T14:56:00.003-07:00

Bankrate.com recently posted Good credit score of past not so good now which opens with the following:
“Those with good credit may well recall being showered with praise by a mortgage broker during the initial purchase for that solid credit score. That was then. This is now.”

The article goes on to warn readers that while you might have sparkling credit it may not be enough to earn you a better lending rate. Reading this article could put fear into the hearts of would be buyers or at least make you feel like things are really spiraling out of your control. But, just how bad is it?

I asked Coors Credit Union Senior Mortgage Consultant, Ron LoSasso for his take on new credit standards.

So, Ron, how worried should buyers be?

He replied, “Although there are now adjustments in the rate due to credit scores the typical
increase is only an 1/8 to the rate. On a $200,000 loan amount this is an increase of the monthly payment of approximately $16.00 per month. Perhaps the cost of one Grande Latte per week.”

While you shouldn’t be scared off by new credit standards, it is helpful to understand how we got here. The new standards are neither arbitrary nor a result of tightened lending. All banks, brokers and credit unions must abide by the same standards. The change came about as Fannie Mae and Freddie Mac, the nation’s two largest lenders, redefined risk after suffering huge losses last year.

So the new standards really don’t affect the lending landscape much. You’ll still be making fair comparisons when shopping for a mortgage. But, as Ron says, “One advantage to coming to a credit union is to compare all loan programs including these agency type loans to the Portfolio
Loans that credit unions may offer.”

Another advantage is that credit union lending is strong. In contrast to many major banks, very few credit unions were burned by foreclosures; therefore they’re still able to give good rates on home loans.

And don’t let the new score standards turn you into a procrastinator. Yes, if you score is poor or even good you should take some time to clean up errors, pay down debt, or other actions to increase your score. But, if you’ve already got an excellent score of say 720 and you’re thinking of eating ramen for a few months to get it up to 740 you could be taking a big gamble You could miss out on current low rates or while you are working to better your score, you’d only be saving a few lattes worth a month.

The best way to prepare for purchasing a home is to get in and speak with a Home Loan Consultant. They can tell whether your score is in need of help or if you should start shopping now.

Stop Guessing About the Best Time to Buy a Car

2010-01-19T06:17:00.003-07:00

Way back when I was young, stupid and going to the wrong college and studying the wrong courses--wrong for me anyway, I was taking a retail merchandising class. The one thing I remembered from that class was a chart in one of our books that showed the best time to buy anything like sheets, china, and other things that really don't impact your wallet all that much. I can't seem to replicate that exact chart anywhere but if you interested I'm sure the Internet can help you out.

What I want now is that same chart but tells me without a doubt when is the best time to buy big money items like cars and houses. Like everybody else, I've got my theories on when to buy...houses = spring, cars= end of the month. But these aren't hard and fast rules and aren't based on data. So imagine my excitement when I came across a new gadget on Edmunds, which helps with the guessing about car prices.

It's their True Market Value: Predicted Price Trends. This handy gizmo shows you the pricing forecast for most cars over the following 30-Days. Just find the model you are interested in and the chart will show you whether there is an expected big increase (2% or greater); mild increase (1% to 2% change); relatively flat (less than 1% change); mild decrease (1% to 2% change); or big decrease (2% or greater).

Ah, knowledge...you gotta love it's power.

As far as I know no such tool exists for home sales, but their a different beast.

Ariana Huffington says, "Move Your Money"

2010-01-12T05:00:00.001-07:00

I like to think that everyone reading this blog has a credit union account. But I also hope that some readers do not. My bigger wish is that your reading this blog will somehow translate to a recognition that credit unions want to help all consumers make the most of their money. And knowing that you might do the right thing and get your friends and family to stop supporting big banks and open a credit union account.

Ariana Huffington agrees, "When the big banks see real competition from the community banks and credit unions they will change their ways."

Huffington, founder of the Huffington Post, has taken her message to social media with Move Your Money. Huffington presents a sentimental and no-nonsense good-guy vs. bad-guy illustration to convey the message of smaller banking institutions. Naturally whenever this message is presented we get warm and fuzzies. But shouldn't doing the right thing feel good? It's time to fight back, people. Our weapons are cash. Recruit your friends and family from the pain of supporting big banks.

Spread the word follow Move Your Money on Twitter or join the fanclub on Facebook.

NOTE: the zip code search feature at this time only includes FDIC insured institutions. I have contacted Move Your Money to ask them to include NCUA insured credit unions. So don't be alarmed that Coors Credit Union does not come up in a search--no credit unions are listed. Here's a more reliable way to locate credit unions.

Credit Card Reform OUCH!

2010-01-06T14:27:00.000-07:00

The Credit Card Reform Act of 2009 was a well-intended and long overdue attempt to stop the credit card fee insanity that imprisons many consumers. But, the Feds underestimated the creativity of their opponents, and they made a big mistake in giving the card companies warning. So what happened? Faster than reform could be implemented card companies rushed to the offense and implemented aggressive sneak attacks before they became illegal.

You became a risk
At one time card companies could raise your credit card rate if you were late on any other bill, even if you were never late on your credit card bill. It was called “universal default”. They justified this by claiming you were a risk. But since the Reform will eliminate this type of action, the card companies rushed to get rate hikes in.

They changed your minimum payment requirements
Say you signed up ABC Bank’s great balance transfer deal way back in 2008. This was a great deal because you took your high-interest balance from XYZ Bank’s card and transferred it to a really low interest card, saving you a bundle in interest rates. But suddenly the economy takes a dive and ABC Bank is suffering from loan loss and the challenges of Credit Card Reform, where are they going to look for money? Why, to you, of course! They do this by raising your minimum balance from 2% to 5%. The result is that you asked to pay a lot more each month. What if you can’t? You call ABC Bank and they’ll offer to lower your minimum payment back down at or close to the 2%, but they ski rocket your interest rate much higher than your initial great deal. This has nothing to do with your payment history, which could be perfect. You just get a lousy rate.

Your credit limit drops
A reduced credit limit can hurt your credit score because part of the formula used to calculate your score is the amount of credit available. A big gap between how much you spend and how much you have available is viewed as responsible credit handling. This is especially important if you have a need for a loan, like a mortgage for example. If a credit card suddenly reduces your credit limit, it looks like you’ve done something wrong when in reality you may not have done anything to hurt your credit.

These actions hurt many consumers deeply. So how do you fix credit card wounds? Go shopping, for a different card that is. Start with Coors Credit Union and you’ll find the following:

1. Our cards don’t offer too-good-to-be-true rates. Always be skeptical of cards that offer incredibly low rates.

2. Simple terms. The longer the terms and disclosures the more traps.

3. No account opening fees. Subprime credit cards often implemented a fee just to open the card, putting the user into a situation similar to payday loans. The Reform Act limits the amount of this fee. Coors Credit Union has never charged account opening fees and does not offer subprime credit cards.

See all the benefits that make the Coors Credit Union a trustworthy credit card.

Happy New Year!

2010-01-01T09:03:00.002-07:00

6 Tips for Keeping Resolutions

2009-12-31T08:15:00.002-07:00

I know we all hear how New Year’s Resolutions are doomed to fail. But don’t give up on the notion of change just because of someone else’s failure. According to a survey by TD Ameritrade and the Opinion Research Corp of Princeton, N.J, three in four Americans will make at least one financial-related New Year's resolution in 2010. The survey also found that 60 percent of those who made financial resolutions last year reported they were still "going strong". This year if resolve to succeed at better managing your money here are a few tactics to help you reach your goal.

1) Automate. This tip comes from Ramit Sethi author of I Will Teach You to be Rich. Ramit say’s that you can “Save money while sleeping.” This is simple get your money flowing by using the tools of technology. Sign-up for direct deposit and split your paycheck between some type of savings and checking accounts. Enroll in paycheck deductions that go into your 401(k). Set up automatic transfers from regular savings into higher yielding accounts. Use electronic bill pay and you won’t have to worry about mailing checks on time. There is so much you can do to make your financial life easier and reach your goals.

2) Remove Temptation. If you like to go to the mall or browse ebay and craigslist for entertainment get a new hobby. If you regularly meet with friends for coffee, suggest a walk instead. In fact, I’d probably suggest that you replace any wallet draining habit you have with going outside. You’ll be healthier and wealthier. But the bigger point is that if you are spending money just to feel better or kill time, find another outlet.

3) Don’t just go without, redirect. Many people will tell you that you should not spend $5 on a daily latte. They’ll say you should save that money instead. But, if you’re not taking that five bucks and redirecting it toward savings or debt payoff you might as well enjoy the latte. Physically (or automatically) redirect your that money into debt payment or investments. And better than giving up a $5 latte, look for bigger money by refinancing your mortgage or selling un-needed stuff.

4) Learn more about money. Start soaking up everything you can about finances and soon you’ll make better financial decisions. Take advantage of the abundant resources Coors Credit Union offers like online seminars, this blog, the website, and free workshops. There are also many excellent blogs and websites that offer free and up-to-date information. Reading about finances can be boring, but there are a few writers who simplify and make it interesting. Check Amazon and the New York Times Bestseller list for the latest in personal finance books.

5) Don’t keep secrets. If you want to succeed with your goal to better manage your money tell the people who matter. Don’t just blast your message to everyone in hopes that if you say it it will happen. Enlist the people who are closest to you to work toward a specific goal: your kids, best friend, spouse or partner.

6) Make it visual. Some people like to stick a chart on the fridge or in the bathroom—some place where it will be seen daily. This chart visual depicts the goal. If your goal is to save money you could make one of those thermometers that fundraisers use to show progress. If it’s paying down debt you could simply write the amount of debt and each month cross off the old balance in red and write the new one. Or if you goal is to save for a vacation, buy a house or some other purchase you could post a picture that represents the purchase to remind you of its importance.

If you adopt just one of these tactics you are more apt to achieve your goal.
Good Luck and Happy New Year!

More Clearing out of 2009

2009-12-30T07:02:00.000-07:00

In my mission to wrap of the year I’m getting rid of stuff. We’ve all got a lot of stuff cluttering up our lives. Either you look at it thinking that it is treasure and you’ll use it someday or you think that it’s junk and no one would want it. Either way it’s a shame to just toss it in the trash. So enters into my life Freecylce.

Freecycle really proves that one person’s trash is another’s treasure. I know people who find great stuff given away on Freecycle. Meanwhile I look and only see junk. The other day someone was giving away a torn and worn twin size comforter. It was taken within minutes. I’ve also seen people request old toilets, scrap wood and opened paint with which they’ve remodeled their homes just by re-using free stuff.

So in my clearing out 2009 I’m gathering broken electronics, like a TV and monitors, and other miscellaneous stuff for Freecyle. Freecylce listings are localized and require you to join the local Yahoo group. Between this and Craigslist I hope to have no problem clearing out.

Wrapping Up 2009

2009-12-29T06:42:00.001-07:00

The last week of the year is always the time when I try to wrap up all the projects that I’ve left unfinished so I can start the New Year fresh. For the financial section of my life it looks something like this…

Clean out financial paperwork. It’s time to go through the documents and papers that have piled up in my “file it later” basket.

Attack the “I should read this someday” stack. Browse through these and mostly toss into the recycle bin.
Make a central location for tax documents. I always keep our tax files organized, but to make it easy for my husband I create a bin where he can just through in necessary documents. I try to make it easy and obvious so he doesn’t have to take extra time to open files or try to remember where I keep things. Just toss it in the bin.
Do a year end budget review. I like to review the year to see if we strayed from our budget and why. This year is easy. We planned an inexpensive camping vacation that turned out not to be so inexpensive. We went overboard. Oh well, we recovered.
Last minute money moves. Hunt around and see if there is any money left for IRA contributions and charitable donations.
Take stock of my accounts. Double check my certificate terms, so that I remember when they mature and can make a plan for them.
Deposit any miscellaneous checks. Sometimes my kids leave checks that they receive for babysitting and birthdays laying idol. This is inflicts pain on the people who have written the checks, but better to get them cleared out. So, I’ll scrounge around and look for the idol checks and get them deposited.
You might think that I’m going to add “Create a 2010 budget” to this housecleaning list, but this year I’ve decided not to think about 2010 until it happens. It will only distract me from cleaning out 2009 to do so.

Wishing You Many Happy Returns

2009-12-28T05:57:00.002-07:00

In my cousins’ household the day after Christmas was more exciting than the actual day. That’s when they all rushed around returning the gifts they had just received from each other. It was a strange dynamic. Even when they were opening gifts they would smile and proclaim, “You know this one is going back!” I never understood it and looking back I understand it even less. Returning items is always a hassle and over time this tradition has become more and more frowned upon by retailers. But, if you must return you’ll need to follow some guidelines.

You may have to pay to return. Many retailers have initiated restocking fees, especially for large or pricey items like electronics and special orders. Restocking fees can run anywhere from 10% to 15% of the original price. Restocking fees are often charged to open items. So, if you don’t want it, don’t open it.

Return time might be limited. Don’t let that gift linger in your closet while you decide whether or not you want it. More retailers are tighten return times. Here are a few:
Best Buy—14 days
Amazon—Return by Jan. 31, 2010 for purchases between Nov. 1 and Dec. 31.
Target—90 days
Walmart—15 to 30 days for electronics, general merchandise 90 days

Stricter receipt policies. You might only get store credit if you don’t have a receipt and usually you’ll only get the current price value, which after the holiday rush is often much lower. When giving gifts, it’s always a good idea to include a gift receipt.

Retailers are making a list, and you might be on it. Return fraud is a real problem for retailers. That’s why some have gotten wise and are tracking returns. If you exceed the store’s return limit, your return could be rejected. Returns without a receipt are especially suspect. Some stores are beginning to swipe I.D. such as driver’s licenses for no-receipt returns to help them track.

How not to squander that gift card

2009-12-24T07:01:00.005-07:00

It’s estimated that $5 billion worth of gift cards will be lost to fees and expiration dates or misplaced, shoved in a drawer or otherwise neglected this year. That’s a whole lot of profit that sits with retailers and card companies. Follow these tips and don't contribute to the madness.

1. Keep them handy. Put your gift cards where you’ll use them. If possible carry them in your wallet. Don’t file them away somewhere where you’ll never see them. If you have too many to carry keep them on your desk or dresser, but don’t let them sit around loose where they could fall behind furniture or get lost among other things. Place them in a see through container that will keep them tidy, handy and on your mind.

2. Keep track of them online. You can register card numbers and PINs online at LeverageCard or PlasticJungle, where you can track your balances and check expiration dates.

3. Alert yourself. Many gift cards impose fees past a certain date if not used. These fees will whittle away the card’s value. Alert yourself by setting up notices in your personal electronic calendar or email program that reminds you to use your cards.

4. Re-gift it. If you are not likely to use the card it’s an easy re-gift item. Next time a birthday pops up or you just want to thank someone, dig into your gift card stash.

5. Trade it. You can swap or sell unwanted gift cards at several online sites like: PlasticJungle SwapaGift, GiftCardRescue, MonsterGiftCard, and GiftCardBuyBack.

6. Donate it. If you’ve got just a few dollars left on a card and don’t want it to languish you can donate the remaining value to charity. Gift Card Giver collects and distributes gift cards to appropriate non-profit organizations that can use those cards to help others. This grass roots campaign can pass on your cards that don’t have much value to you to organizations that will value the card. Even just a few leftover dollars can translate into socks or coats for someone in need.

Tell your friends the truth about credit unions

2009-12-23T07:35:00.003-07:00

You don’t need to wait for some special holiday to give the gift I’m about to suggest. If you are a good friend, neighbor, relative, coworker or whatever you will give the gift of credit union membership. Okay, wait don’t leave, let me tell you the real reason you should do this, and it’s not just warm and fuzzy.

First, I can’t understand why anyone decides to open an account at a bank. I’ve done it and can only think of one time when that was a good idea. I was just out of college and switched from one bank to another. That bank helped me save, so it worked out well. No other bank ever did this for me, but I’m sure that bank is out of business now. So, why use a traditional bank? Maybe, it’s the location thing. Or maybe it’s all the advertising. I sort of understand that, these things give the impression of stability and strength—that’s exactly what they want you to think. But after this year we know it’s not true.

Yes, it was a bad year to be a banker. But wasn’t it bad banker behavior that brought on the mess? Yes, it was. Bankers making bad loans were the instigators in the fall of our economy. So then what happened? Oh you know. The banks took taxpayer funds to save themselves. And, then what? Remember, then a bunch of banks failed, closed their doors. The good news? Some banks are actually paying back the money they used to get their act together. But now they won’t lend money at all. Well that’s not really true, but they are being rather tight with it. Hey, didn’t we give them money when they needed it?

Okay, so that’s the summary of what happened to banks, but what was going on with credit unions during this. Did credit unions take bailouts and close? Well, some did, sort of, but not really. It’s true that some credit unions did close or merge. It was the corporate credit unions who took some bailout money. These are the institutions that handle the investments for credit unions. And of course, because the economy’s investments were struggling, so were these institutions. But, for the most part credit unions were operating with business as usual. They were still lending money, they weren’t cutting credit lines like home equity lines, and they weren’t hiking credit card fees. They were also still issuing mortgages, respectable mortgages.

During the economic crisis to date 30 credit unions and 140 banks failed. That leaves 11,000 credit unions and 8,099 banks open. So, you see credit unions have remained stable even during this unstable time. Well, back to my point…

Times are still tough for many people. So don’t let your friends stay with a bank that’s going to make it tougher as they dream up new fees and tighten lending. The idea of switching financial institutions is painful. It requires that you actually do something and take time out of your busy schedule to get that something done. But, that’s the idea of switching. The reality of switching isn’t that bad and the gain of the switch is great. Once I joined a credit union, I’ve never looked back. It was the best financial move I’ve made.

What to do about maturing certificates

2009-12-22T05:55:00.008-07:00

You can't sugar coat it, savings rates everywhere are dismal, especially if you compare certificate rates from a few years ago. I've got a few certificates that will be maturing early 2010 and so comes the question of what to do with them.

When a certificate account comes to maturity you'll get a notice from the financial instution asking what you want to do with the funds. Usually, you'll have about 30 days to close the account or it will automatically renew.

Certificate accounts are appealing because they are safe and earn a guaranteed interest rate. For people who, as your grandfather said, "have holes in their pockets," certificates are a great way to put the money away from the temptation to spend. However, when rates are low, like they are now, a certificate just doesn't give you much bag for your buck.

So, what do you do? Consider your options.

1. Break up the funds into smaller certificates with varying maturities, a.k.a. laddering. The laddering strategy helps you take advantage of rising interest rates. Signs are pointing to a growing economy. Interest rates will rise, but maybe not until the latter half of 2010, if that soon.

Typically when you ladder certificates you'll spread the funds over accounts ranging from one to five years. But when rates are unusually low, you might consider shortening your terms to roll the money faster, thus capturing rates as they climb. So your strategy might look like this:

This isn't your typical laddering strategy, but it would move your funds quickly along and hopefully in conjunction with rising interest rates. To slow the progression, invest in longer terms earlier.

2. You opened your certificate to build savings, right? And you save to help yourself in the future, right? Well, if your certificate has matured than the future has arrived. How might these funds help you out now? If you've got debt, paying it down will free you for the future. Consider other ways this money could help you now and keep you from incurring debt.

3. Look for higher earning investment options. There is much to consider when you are looking for higher yield investments. If you are not sure where to start talk with Tom or Nelisha at the Coors Credit Union Investement and Retirement Center to consider your options.

I can’t wait for Christmas

2009-12-21T06:56:00.003-07:00

Ugh! I know I should probably be more sensitive and not use the “C” word, especially since I don’t even celebrate the religious aspects of Chirstmas, but my family does do Christmas with the tree, Santa, presents, etc. And this year, I’m kind of excited to see what is under the tree for me. But first let me explain myself a bit. I have never been interested in what I will get…oh wait, scratch that. It’s not true. Outwardly I’ve never been interested and I have always been very much into the spirit of the season, but secretly…yes I really did want some cool thing. Sometimes I got it and sometimes I didn’t. Then underneath my wanting and not wanting is a load of guilt about getting any material items, because it’s not about getting and I know that.

Are you getting a glimpse of mind twisted way of thinking? I want stuff, but I don’t want it and if I get it I feel guilty. I know you are not my therapist and really don’t want you to ponder on this. I’m getting to the point now…

When my kids wanted money this year to do their shopping I frowned and said stuff like, “Why don’t you just make me something?” and “My gift would be for you to be successful and happy.” But they didn’t like these responses. So I gave them money (why I had to give them money is a topic for another time).

Now, since I gave them such vague responses as mentioned above when they asked what I wanted for Christmas I don’t expect that I’ll get anything that I actually would like to have. It’s sort of like that time I only told Santa about the doll I wanted. I think my kids know me well and will get something thoughtful that I’ll like. But come that special, magical, crazy morning when we open gifts I might not get anything I want. And that is okay.

What I’ll get are gifts that everyone put effort and thought into. And even though they didn’t raid the recycling bin to make me some totally useless thing-a-m-bob, they are giving me gifts because they want to see me smile and make me happy.

The kids finished up their shopping this weekend. I had the house to myself to finish crafting up my homemade gifts and wrapping. Then come Sunday night everyone was done with the hectic gathering and pleased that they found great gifts for everyone else. And I can’t wait to see their faces when I open their gifts.

Thanks to Our Young Members!

2009-12-18T06:49:00.007-07:00

Money is like history. Both are vital to our understanding of the world and our survival. Both are exciting and complex. But when it comes to learning about history or learning about finances, it's the stuff that inspires drooling on the desk.

Credit unions everywhere are constantly trying to find cool and hip ways to reach young people, and most of the time just end up looking dorky. Teens are a tough crowd. So we decided to go to the source and ask them what they want. The result was a focus group that consisted of 75 teens. That's a lot of kids who gave up their precious time to talk with a credit union.

While I can't say that the results of this focus group will make Coors Credit Union cooler, we learned a lot. And I wanted to take this blog space to thank all the kids for participating, because we need your help in helping you. We really do, well all credit unions do.

Coors Credit Union will be launching a new newsletter for teens in 2010. We'll stumble a bit a long the way, but we'll try to get it right without trying to hard to be cool.

Refinance Your Car Loan If…

2009-12-17T06:48:00.003-07:00

When we think of saving money often the first thing that comes to mind is to refinance a mortgage. But, don’t forget many of us have another loan that can commonly be refinanced—the auto loan. The first time I heard about refinancing a car loan I scratched my head and wondered why I’d never thought of that before. But refinancing a car loan doesn’t always make sense. There are specific situations when doing so could help you out. Here are some to consider:

1. Lower Rates. If rates have gone down more than a couple of points lower than your current loan. But be sure you are looking at used-car rates, since the car you are driving is now technically used. At some lenders used-car rates can be higher. Note that is not the case at your credit union—same rate for new or used.

2. Has your credit score improved? If you’ve been responsible with your credit and improved your score, you might qualify for a better rate.

3. Or, things have gotten worse. If the economy has been hard on you and you need to cut some expenditures refinancing the car could help.

Coors Credit Union offers a vehicle refinance program that could make sense for you.

origami car by Corigami

Saving 10% Could Hurt You

2009-12-16T06:55:00.003-07:00

Would you like to save 10% today? That’s a common question at the checkout counter and at this time of year, in this economy it can be especially tempting. But, I am here as your voice of reason to tell you to resist that temptation.

You know how it works. The employee is required by management to ask every customer if they’d like to open a store credit card. They may even be prompted by a message on their register. It’s not personal; they are just doing what is required by their job.

It’s likely that you gave the items that you are purchasing more thought than you are this credit card. You might think, “10% could really help me out.” But the long line and your schedule might deter you. “Only takes a minute,” says the clerk.

You are not likely to read over the card details or consider comparing it to another comparable store during that “minute”. You probably won’t ask about the interest rate or terms and conditions. And the clerk is not going to explain all the details either. Their goal is to get you to fill out the application, move the line along and collect an extra dollar in their paycheck for each application.

Filling out the form doesn’t guarantee you’ll get the card. Your application is subject to credit check and approval. Yes, the store has more time to review you than you did in deciding to apply for the card.

And regarding your credit score; every time you apply for a credit card, approved or not, it’s a ding to your score. So that impromptu decision to apply for credit just brought down your score. If you are caught by that temptation at a few other stores, you are ticking away at your score more. Plus, most store credit cards carry a high interest rate. The exception can be co-branded cards that carry the Visa, Mastercard or Discover logos.

Remember this: No financial decision should ever be made without thinking through the consequences and investing the details.

Your Credit Karma

2009-12-15T06:11:00.003-07:00

The ancient concept of Karma basically means what goes around, comes around. The creators of Credit Karma believe that this is especially relative to your credit score. And that is the idea behind the free credit score monitoring service Credit Karma.

The general idea is that any action a person takes either positive or negative, will have an inevitable equal effect in the future. Your credit score is kind of an expression of this concept; an index of your credit history: your credit karma.

What I like about the Credit Karma site is the simulation piece. Recently FICO revealed the formula for how your actions affect your score. Credit Karma includes a simulator that shows you how various actions might change your score, based on FICOs secrets. Now, of course, you could figure this out yourself, but that might require a calculator and use of your brain which takes time. Credit Karma does it in an instant and lets you play around with scenarios.

To use Credit Karma you will have to give some basic personal information, like your social security number.But the company’s privacy policy states that your SSN is not stored and your personal information is not shared. My husband and I been using the service for several months and have not had any problems.

You will be shown “offers” (a.k.a. advertisements) for services such as credit cards, but that’s to be expected on a free site and they are easily ignored. Credit Karma asks you to vote on the offers, which my guess is that they use the voting to further customize the offers.

I’m not plugging this service for any reason other than I want you to know about this quick easy way to monitor your credit score. I haven’t been in touch with the company and am not receiving anything from them. I just think it’s handy. We were thinking about refinancing our mortgage and wanted to check on our scores. Sure we could have ordered a copy of our credit report, but at the moment we just wanted a quick check. Credit Karma gave us the numbers instantly. We did end up checking our credit report as well.

Stop Thinking About Retirement

2009-12-14T06:16:00.002-07:00

Last month a study by published by the Investment Company Institute revealed that IRA participation has steadily grown. The study found that IRAs now account for 25.4 percent of U.S. retirement wealth and at year-end 2008 IRA made up 8.5 percent of total U.S. household financial assets. This news illustrates a steady incline in IRA participation, but before we proponents of savings get all excited let me throw a negative at the statistics. Twenty-four percent means that just a quarter of our savings goes into a tax-advantage account. Only 8.5% of household wealth? We can do better and here’s how.

Stop thinking about retirement! The attitude that IRAs are for our golden years is the biggest deterrent to IRA participation. For most people in their 20’s paying this month’s rent and having some money for fun is a greater priority than saving for retirement. And for people in their 30’s supporting their family now is at the forefront of their financial plan. That’s why we don’t really start thinking about IRAs until we get older.

By age these are the stats:1
Ages 61-69—16% contribute to an IRA
Ages 51-60—10% contribute
Ages 31-40—participation is just 7%
Ages 21-30—a mere 3% contribute to an IRA

Saving for retirement is like preparing for death. No one wants to think about and we’ll do nearly anything to avoid it. So that’s what we do—avoid.

I propose that if you aren’t participating in a tax-advantage savings program (like an IRA) that you get a new attitude. Start thinking about wealth building. The maximum IRA contribution in 2009 is 5,000 dollars. That’s $5,000 tax-advantage dollars. The type of advantage depends on which IRA you choose. BTW you can still open and contribute to a 2009 IRA. The contribution amount can be limited by your Modified Adjusted Gross Income (affectionately known as MAGI). If you are over 50 years old, you get to add up to $6,000 to your IRA wealth building account.

I’m not going to bore you with the details on contributions and differences in the IRA plans during this posting. To find out more do the following, and start building your wealth and stop thinking about retirement…

Call the Coors Credit Union and ask to talk with the Investment and Retirement Team. They’ll take a look at your situation and help you decide which wealth building tools will work best for you.
Go to IRS.gov this site will give you the most accurate information and help you understand your choices. I know, I know it’s a government site, but there is a lot to be said for going to the source.

1 Data released by Federal Retirement Thrift Investment Board, Analysis of 1997 Thrift Savings Plan Participant Demographics, December 1998; and Employee Benefit Research Institute, EBRI Databook on Employee Benefits, 4th ed., 1997.

Boring Gifts They'll Love

2009-12-11T05:38:00.002-07:00

The following is a re-post from October 30, 2008.

Everyone likes to give gifts that "Wow!" We love the anticipation as the gift getter rips or sometimes agonizingly peels off the paper. But once the exciting moment is over there's not much left. The gift goes into a pile, then migrates to a closet where you, the giver, may never see it again. So this year save yourself the heart palpitations and give some boring gifts that they'll really love.

For the kids: Sure Johnny may say that he wants a Guitar Hero, but underneath he's really hoping to begin his investment portfolio--he just doesn't know it yet. Really getting Johnny hooked on the wacky world of Wall Street isn't such a crazy idea. Though the market is crazier than a fruitcake this year, remember stocks are going cheap. You can purchase a few shares of the company that makes his favorite pastime through Sharebuilder or ETrade. Then teach him how to follow his stock, purchase additional shares, etc. Don't you wish someone explained all that mumbo jumbo when you were a kid.

Then there's Suzy. She's already got a college picked out. You could help her get there by contributing (or even starting) her college fund. You don't have to be a parent or grandparent to contribute to an Educational Savings Account. Think of the investment you'll make in our nation's future and in Suzy.

For the person who has everything: Chances are that these people still need to eat. You can help make grocery shopping more fun. And you can help local farmers by giving them a share in Community Supported Agriculture (CSA). Basically you purchase a weekly box of fruits and vegetables right from the farm.

Or, remember those fruit-of-the-month or wine-of-the-month programs? Put a new and more personal spin on it by giving your own homemade dinner/dessert/whatever-of-the-month. This is a gift that might even motivate you to learn how to make something new.

And if all of that is too much for you...you can always give a little of your time.

So there are a few boring ideas for gifts. But remember that it's the least exciting gifts that are usually the most appreciated.

Brighten a Soldier's Holiday

2009-12-10T06:15:00.002-07:00

After last Christmas my friend Kim was beaming. She was so excited and couldn’t wait to tell me about her holiday. She’d received a gift that we all hope to receive. Kim and her family adopted a soldier through Soldiers’ Angels. Their recipient was a disabled single father of five. Like so many of our veteran’s this courageous dad was unemployed and struggling to support his family. Kim and her family spent time together during the days before Christmas shopping for gifts for the family. Then on Christmas day they received the call that was their greatest gift; squeals of delight and surprise.

Kim’s story is like the heartwarming holidays that we read about or watch in movies. But the story doesn’t stop there. All of us can support our troops overseas and back at home during the holidays and all year long.

Soldiers’ Angels has a long list of projects that need your help. Currently there are 1,974 heroes waiting for help. Guardian Angels for Soldiers' Pet support military service personnel by finding homes for their pets while they are deployed. The organization is in constant need of foster homes that can take in a pet for an extended period. Pets are then returned to their owners when they come home.

I’m spreading Kim’s story because it’s so easy for us to say that we support our troops, but these organizations give us ways that we can show that support beyond sporting a bumper sticker. No matter what your opinions about the War, let’s not forget the people who risk their lives and their families’ well-being

Of course there are many organizations that can use your help this holiday season and all year long. Don’t underestimate how even a small effort has an enormous impact on someone else.

New Car? Remember the Tax Credit

2009-12-09T05:32:00.000-07:00

Early in the year the government announced the new car tax credit as part of the economic stimulus package. There hasn’t been much attention given to this lately, but if you bought a car this year (or plan to purchase before Dec. 31) don’t short yourself on this break.

The credit allows you to deduct sales and excise taxes and other fees on as much as $49,500 of the purchase price.

Most important—Applies Only to NEW Cars

Only brand-spanking new car purchases qualify. So if it’s used, but new to you, the purchase doesn’t qualify for the credit. But, any car, light truck, motor home, or motorcycle counts

More Details

You must have completed your purchase between February 17, 2009 and December 31, 2009.

The credit is limited to the taxes on vehicles with a purchase price up to $49,500. If the vehicle costs more you can still get credit, but only for the taxes on $49,500 of it.

The income limit is high enough to make it easy for you to qualify. The credit to phase begins at $125,000 for individuals and $250,000 for couples.

You won’t receive this credit at the time of sale. You can claim the credit as on your 2009 taxes. You do not need to itemize credit.

CNN Calls Credit Unions the Best Revenge

2009-12-08T05:52:00.000-07:00

Browsing through my online financial reading list I came across this on CNN Money and had to pass it along:

Credit unions: Best revenge for angry cardholders

Sure, 2010 looks to be marginally better once new credit card regulations kick in, but I’m still betting the bank credit card industry will find new and creative ways to extract revenue from consumer accounts. It’s their business model, after all.

But sweet revenge could be just a credit union away. A recent Pew Trust study determined that on average, credit cards issued by credit unions charge much lower fees than their bank-card brethren. For example, the median late fee on a credit union card is $20. For a bank card it’s $39. Yes, that’s right: Credit unions charge 49% less. Credit unions also offer a better interest rate deal. By law credit unions cannot charge more than 18% interest; the median bank-card penalty rate for late payments, according to Pew, is 29%. (read the rest of the article…)

How Much Auto Insurance Do You Really Need?

2009-12-07T07:08:00.002-07:00

When you purchase auto insurance you’ll walk a tricky line between being adequately covered and not paying too much. Even before you start shopping insurance companies you’ll want to determine the amount of coverage you want. Don’t let the insurance company figure this out for you.

Your first step is to learn how much you have to have. If you’ve got a car loan the lender may have requirements. States also set minimum coverage amounts. In Colorado, the minimum requirements are $25,000 of bodily injury liability for one person, $50,000 bodily injury liability for all people and $25,000 property damage liability (25/50/25). Some states also require Personal Injury Protection (PIP), or Medical Payments (MedPay). Colorado does not.

Okay, so now you know what is required, it’s time to decide if you need more than that. Some insurance agents recommend that if you have a lot of assets you should get enough liability coverage to protect them. For instance, if you have $100,000 in assets, but only purchase $50,000 of bodily injury liability you could be sued for more than your coverage if and the other party's medical bills exceed $50,000.

General recommendations for liability limits are $50,000 bodily injury liability for one person injured in an accident, $100,000 for all people injured in an accident and $25,000 property damage liability (that is, 50/100/25). Here again, though, let your financial situation be your guide. If you have no assets, don't buy excess coverage.

Another thing to consider is how likely it is that your car will be stolen. Insurance companies have data on every model of car; it’s attractiveness to thieves and safety records. And speaking of insurance companies…the amount of data they collect is incredible. They use this data to create statistical risk models. They are good at predicting driver behavior and accident rate.

As always buying insurance is a gamble against the unexpected. Your financial picture is going to be the biggest determinant of how much you’re willing to spend.

photo by daveynin

Get Those Holiday Packages Out

2009-12-04T10:33:00.001-07:00

I saw an impressive advertisement on TV the other day. Surprisingly it was for the Post Office. Yep, the government agency. The ad was aimed at small businesses to encourage them to use flat rate shipping. Domestic flat rate shipping starts at $4.95 for a 5/8" x 5 3/8" x 1 5/8" box. That's big enough to fit Small Electronics, DVDs and CDs. It's darn cheap and, it's not just for business.

But is it USPS shipping really good? How does it compare to FedEx or UPS? Well, to save me some time a news team in Kansas City did the work. They found that the USPS Flat Rate came out on top for fastest and cheapest.

I'm also impressed by the USPS website it's informative and inclusive with shipping deadlines listed for Hanukkah, Christmas and Kwanzaa. To get the best price you'll have to adhere to their deadlines, which are clearly posted on the site. You can also get free boxes delivered to your home, purchase postage, print your shipping labels and get free home pickup.

Clarification on FSAs

2009-12-03T06:11:00.001-07:00

A few days ago I wrote a post reminding you about FSA benefits, so that you don't forget to use those funds. A reader found some of the information regarding what happens to your FSA if you leave your job before the plan deadline.

Amy writes:
"For dependent care expenses, it is thought that the reason for the dependent care expenses is because the participant has to work. So funds can be claimed even after the EE's benefit termination date."

This is great news. So, if you've left your job for whatever reason you can continue dependent care. This allows you to seek and acquire a new position, continue dependent care and still get reimbursed for this expense.

Thanks, Amy for this clarification.

Transferring to a Roth Easier in 2010

2009-12-02T05:52:00.000-07:00

Currently the rule goes something like this if you have a traditional IRA and want to convert it to a Roth IRA it’s mighty hard to do so because of MAGI (modified adjusted gross income) limitations. That is if your modified adjusted gross income (MAGI) is more than $100,000, you can’t do it. But now in 2010, this rule is being pushed aside.

The advantage of the Roth is that while contributions are not tax deductible and qualified distributions are tax free. So once you’ve paid your taxes, you’re done and won’t get stuck with taxes when you need the money the most, upon withdrawal.

Distributions on a Traditional IRA are mandatory at age 70.5 years. The Roth allows for penalty-free distributions as early as 59.5 years of age.

If you thinking that a 2010 Roth conversion might make sense for you, it’s best to talk with a professional financial advisor and look at your whole situation. You can get a free assessment at Coors Credit Union by call their Investment and Retirement Team at (303) 279-6414 or (800) 770-6414 between 9:00 AM and 5:00 PM Monday through Friday.

Don’t Forget Your Flex Account

2009-12-01T05:43:00.003-07:00

A Flex Account (FSA) is an employment benefit that lets you set aside a portion of your earnings to pay for qualified expenses such as, medical or dependent care. You set the money aside and then don’t have to pay taxes on it.In the past I used this as a way to pay for childcare and braces for my kids. The setup is similar to an HSA.

The most important thing about your FSA is to NOT FORGET IT. If you don’t use the money, you’ll lose it. To prove that you used it you’ll need submit an expense form and receipts by a specified date. For some employers that day is the end of the year, December 31st.But the majority of employers have moved the deadline to March 15th.

You can apply your FSA to a variety of expenses like insurance co-payments and deductibles, eye care, childcare or adult dependent care, but not elective cosmetic procedures.Some plans specify that they can only be used for dependent care and not medical expenses, so be sure to check with your employer.

Some ideas for how to spend residual dollars are:

Eye exams
Dental work (but not tooth whitening)
Contact lenses and lens solution
First aid supplies for emergency kits
Lifetime care advance payments

If you are laid off the time period that you can claim FSA expenses is often reduced to the time during which you were employed. In other words, if you are layed-off in October, you can only submit expenses from January through October. You can not submit any expensed incurred after your layoff date.

FICO Discloses How Mistakes Affect Your Score

2009-11-30T06:49:00.001-07:00

You know that paying your credit card late or going over the credit limit can affect your credit score. But now FICO reveals just how damaging mistakes can be.

FICO assigns consumers a three-digit number between 300 to 850. The higher your score the better, and the more sensitive you’ll be to mistakes. Those with good or excellent credit -- so-called prime borrowers -- put more points at risk with each mistake.

CreditCards.com put the cost of damage into dollar perspective by running some scenarios:

For a consumer who started with a FICO score of 780:

Following a 30-day late payment, the consumer's car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.
Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.

For a consumer who started with a FICO score of 680:

Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.
Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.
Following a debt settlement, the consumer would no longer qualify for a credit card.

Previously FICO has been secretive about their formulas and how they affect consumer credit by revealing this information FICO hopes that consumers will understand how their actions contribute to credit standing.

How to Safely Bargain Shop Online

2009-11-27T07:42:00.001-07:00

This is the way that I shop online. I see something I really want, like a new pair of Keen shoes. I might go to the store and try them on, but usually I don't have time for that. So first I visit one of the online shoe stores, but maybe there's still more than I'm willing to pay. So I spend some time searching until I find a price that I like. Oh, but wait I've never heard of this retailer. Are they trustworthy?

Now it's time for investigation. Look for the obvious:

Do they have a security/hacker prevention or testing certificate?

Does the LOGIN process use an encrypted HTTPS page? Notice I've capitalized LOGIN, that's because you want the pages where you enter all your personal information to be secure.

Does the checkout process use an encrypted HTTPS page? Naturally you want the payment pages to be secure.

Read the privacy policies. It's so easy to just blindly click "Accept" here. But you should 1) ensure that there isn't a big blank after the small amount previewed in the acceptance screen and 2) read it to see if you agree with it.

Find out how to contact the company if there is a problem. Keep the site bookmarked or better yet, write down (or keep an electronic file) of the company name, web address, customer service contact info.

Beyond this you can do some research to check out the company.

Search Google for the store name and words like "scam" and "customer service."

Check the Whois to see what the website registration looks like. It is not a good sign if it was just registered last week.

Check if the company has a yellow pages listing and street address. If you have a phone number, a company with a street address is a lot more reassuring. Check the address on Google Maps to see if it is a vacant lot.

See if the site has a warning listed on McAfee SiteAdvisor.

It can take a lot more time to go through this investigation. But it's worth it. You goal should be to get a good product at a great price from a company you can trust.

This post originally ran on November 10, 2008.

Three Credit Union Services for which to be Thankful

2009-11-26T06:51:00.000-07:00

3 Credit Union Services for which to be thankful

Online banking--Even when the credit union is closed you can pay bills, check your account, and transfer funds.
CO-OP ATM Network--Surcharge free ATMs let you get money whenever you want.
Honest Debit and Credit cards that don't sneak fees at you just because they can.

Don't Pay for Your Money!

2009-11-25T06:34:00.003-07:00

All physical branches of financial institutions will be closed tomorrow for Thanksgiving Day, but of course that doesn't bother most of us because we know we can get cash at ATMs if needed. But please, don't let a little thing like a holiday cause you to lose your senses and pay to get your own money.

ATM surcharge fees are the charged by the bank owning the ATM. Let me explain more to be perfectly clear--this is the fee that is shown on the screen that says something like "Hey, did you know that if you had a BankXYZ card you wouldn't have to pay $2.75 just to get your own money? Would you like to continue giving your money away?"

There is no need to give in to this robbery. I don't care if you are 500 miles from your credit union. You have choices.

Easy choice #1: Go buy a pack of gum and use the cash back option. It costs you nothing! Except the price of gum, which by the way is a bit crazy.

Easy choice #2: Find a Co-Op ATM. This is the credit union ATM network and these machines will not charge you a surcharge fee. Find them easy online if you're a plan ahead type or have a web enabled phone. Or Text your location – address, intersection or zip code – to 692667 (MYCOOP) from any mobile phone or download the database of more than 28,000 surcharge-free ATMs directly to your Garmin, Tom Tom or other GPS device here.

Be safe, have fun and don't pay to get your own money!

Why College Students Should Join a Credit Union

2009-11-24T06:13:00.004-07:00

Some years back I was working a good job in marketing, but having a frustrating day. So I picked up the paper (yes, it was that long ago--you could actually find jobs in the paper). I found an ad for a marketing job at a financial institution, applied and got the job. I was a bit anxious about going to the stuffy world of money, but figured I could stand to learn something about finances. I had no idea what I was in for.

The job was for a credit unit that was founded at a university and had grown to serve a wider community. My life completely changed. I know that sounds dramatic, but I had never paid any attention to credit unions before and I was surprised to learn that a financial institution could care so much about the people it served. Plus, on the job I learned a lot about money management and got my own finances on track as a result. My only wish is that I had learned all of this earlier.

During my time at that credit union I talked with quite a few students who asked "Why should I open an account at your local credit union when I can have an account at Wells Fargo, they are everywhere?"

Here's my abbreviated answer to this question in bullet points:

Everybody learns the hard way: Most students don't live away from home for the first time and perfectly manage their money. Most students bounce checks, pay bills late and forget to balance their checkbook. Most students sign up for online banking and forget to login for months. Wells Fargo isn't likely to sit down with you and show you how to straighten out your mess. Most credit unions will. I've seen this at many credit unions, not just the one where I was working. Credit union staff will actually go through your account transaction by transaction, show you how to use online banking, ATMs, overdraft protection and other services to keep track. They also tell you exactly how to reduce your fees.
Lower Fees: We say this so much in the credit union industry that it seems like a cliche, but it's not. Overdraft fees at credit unions are typically 1/3 lower than banks. And credit unions realize that you're human. You can talk with a credit union. If you are having a rough time or just can't do math they will help you out (see the previous bullet).
Resource: This again piggybacks off of the first bullet, but credit unions are bursting with information and eager to share.
Credit Unions Care: For the most part everyone I've ever met that works at a credit union has that not-for-profit spirit of wanting to help others. Credit unions do want you succeed at managing your money. I'm sure banking personnel are terrific people as well, but their business model isn't about you, it's about their shareholders, which leads me to...
Membership: A handful of people (the shareholders) stand to profit big, big money if the bank does well. Credit unions are not-for-profit cooperatives. Members pool their money together in order to help each other. When the credit union does well all the members benefit by keeping fees and lending rates low, which keeps more money in your pocket instead of fattening some shareholders wallet.
Volunteer Directors: So, as I've said there isn't a small group of shareholder, however, there is a Board of Directors. This group isn't paid. They are member volunteers who are elected by the membership. They bring guidance to the administration and assist with organizational health and growth. And it's worth repeating that they are volunteers, they do not receive any compensation.

I've talked to countless numbers of parents who were concerned about their son or daughter being on their own. I always tell them, with confidence, that when a student joins a credit union (university based or not) they are not alone. Credit unions are the best place to learn money management.

Fees Still Lower at Credit Unions

2009-11-23T06:59:00.001-07:00

The Federal investigations of fees will not exempt credit unions, but we members can sleep more peacefully knowing that we are less gorged by fees than our banking friends.

The latest research comparing the fees on deposit products between credit union and bank customers by Researchers Victor Stango, a professor of economics at the University of California, Davis, and Jonathan Zinman, a professor of economics at Dartmouth College, report the following key findings:

- Average annual costs on bank checking accounts are more than twice as high as those on credit union share draft accounts.

- Some of the bank/credit union difference can be explained by a greater number of fee-incurring transactions on bank checking accounts.

- The greatest component of annual costs of both bank and credit union accounts is the overdraft fee, which is roughly one-third lower at credit unions.

Nobody likes to pay fees at a financial institution (FI) or anywhere else. Fees have always been around and were originally intended to discourage certain behaviors like paying bills late, spending more than is in your account or using another financial institutions ATM. But most FIs learned early on that fees were also a great way to make money. So they literally cashed in on consumer behavior. Over the years FIs found even that increasing the amounts of the fees didn’t change our behavior much, we still did all those things that trigger fees. So the FIs kept raising fees for easy profit. Now with profits shrinking in other areas of their business, fees have come to be looked on as even more valuable.

What Hiring Managers Want

2009-11-20T05:28:00.000-07:00

Going to a job interview has to rank rather high on the scariest things you'll ever do list. It doesn't matter how much you read about etiquette, your sure to come away wondering if you did and said the right thing.

A report from the Society for Human Resource Management offers the following advice to job seekers.

Don't say things like "this is my dream job". According to the report, hiring managers hate that. Maybe they're afraid they won't live up to your dreams, more likely they'll think you're just a suck up.
Don't skip the thank you follow up. Be sure to get a business card from everyone involved in the interview, then send a simple thank-you email--that's the preferred (and faster) method.
Don't bug them with phone calls, but it's acceptable to call once. If you're the anxious type, try not to call more than once a week.
Be sure to clean up your Facebook and Twitter posts. It's becoming normal procedure to lookup candidates, even before granting an interview.

When asked about expected hiring 26% of small companies (100 employers or less) and 24% of medium sized companies (100-449 employees) said their organization is likely to increase staff during the fourth quarter. Only 11% (500+ employees) said their employers are more likely to maintain staff levels. So your odds are better at finding a job with a smaller organization.

Scam Alert: Lower Your Property Taxes

2009-11-19T05:21:00.000-07:00

Don’t fall for this offer to lower your property taxes.

What it looks like:

An official looking letter promises to cut thousands off your current property taxes.

All you need to do is to complete an authentic-appearing form and return it with payment—usually around $150 or more. Then, the letter says, the sender will file the paperwork on your behalf. Some letters warn that homeowners who fail to respond could face additional fees or become “ineligible for future tax reassessments.”

What actually happens:

No paperwork to lower taxes is ever filed. The scammer cashes our check and is unreachable.

The truth:

You can appeal the property tax assessment by contacting your local county clerk’s office. No middleman or fee is required. You'll never be ineligible for future tax reassessments.

Debit Card Overdraft Fees Getting Federal Attention

2009-11-18T06:36:00.001-07:00

The Federal Reserve has had it with fees on debit card ATM and retail transactions. Banks have been allowing consumers to withdrawal more than their account balance and/or make purchases that cause their account to overdraft. These banks then charge the consumer significant overdraft fees.

I’ve always been a big fan of debit cards, since I never carry cash. I like that the money comes directly from my account and isn’t loaned to me on credit. But, lately there’s been a bit of stretching of the debit card function. Some banks allow consumers to draw more than the balance of their card and let purchases overdraft all with the intention of collecting fees. If you ask them, they’ll say they are just being nice, but if you ask the Feds they’ll call it something quite different.

Fortunately, your credit union debit card has not been a part of this. Your credit union debit card is a true debit card. Your spending power is confined to the amount of money in your account. There aren’t any sneaky practices to drain you of your hard earned money.

But the practice isn’t going away. Now consumers will be notified that they must opt-in to allowing overdraft transaction (which would then cause a fee to be issued). So for those of you who like to add $32 fee to your $4 overdrafted specialty coffee purchase, just say “yes” to fees. For me I’ll stick with the credit union honest debit card.

Debt—it’s Not My Fault. It’s In My Genes

2009-11-17T05:54:00.004-07:00

Isn’t it nice when we don’t have to take responsibility for our behavior? It’s especially comforting when some scientific study proves what we’ve thought all along—that we have no control over our actions.

Jan-Emmanuel De Neve, of the London School of Economics, and James Fowler, of the University of California, San Diego conducted a study on the correlation between genes and human behavior. During this time they have connected the gene known as MAOA with financial decision making. Okay to be fair we can’t put all the blame on this gene. Human behavior is much more complex than that. However, the MAOA gene encodes an enzyme that degrades neurotransmitters in parts of the brain that regulate impulsiveness and cognitive ability. Some people have versions of the gene that are less efficient than others. That low-efficiency have been linked to impulsivity, and addictive behavior—things that aren't so good for your finances.

To further connect the MAOA gene to debt the researchers looked at a genetic database of more than 2,500 U.S. 18- to 26-year-olds who have been tracked since high school in the National Longitudinal Study of Adolescent Health, which looks at the health-related behavior of young people and follows them into adulthood. They found that the group with low-efficiency MAOA reported a higher incidence of credit card debt.

So there you have it, blame it on the genes. Not so fast. The results of the study have yet to be replicated and nearly half of the 2,500 people had the low-efficiency MAOA. And if we assume that this is representative sample of the entire U.S. population than about 1 of every 2 of us have the same low-efficiency. It’s true that a lot of us carry debt, but there is still much to learn about nature vs. nuture. So I’d say it’s a rather big dose of denial to claim that debt is out of our control.

Can You Use the Home Buyer Tax Credit for Down Payment.

2009-11-16T13:10:00.000-07:00

Yes. If you expect your home purchase to qualify for the tax credit you can reduce your income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable you to accumulate cash by raising your take home pay. This money can then be applied to the down-payment.

The IRS Publication 919 contains rules and guidelines for income tax withholding. Note that if your income tax withholding is reduced, but you end up not qualifying for the tax credit, then you’ll be liable to repay the tax amount plus possible interest charges and penalties.

Also HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund, provided the FHA lender offers the option of purchasing the tax credit in advance.

There are a more options on how you can apply your tax credit. Read through the FAQs on the National Association of Home Builders (NAHB) site and consult your tax advisor to determine the best plan of action for you.

Cashing in on Rising Gold

2009-11-13T09:36:00.003-07:00

Gold rose again today to around $1,100 per ounce. However, rising gold means a weakening dollar. This reminds me of the gold party I attended this summer.

If you want to make some extra cash and strike while gold is hot, do be cautious. The TV version of Cash 4 Gold has been noted as a scam by many people.

You bring your old gold. No matter what the condition you'll get cash. As long as it really gold. Like the Tupperware parties the host gets a cut of the booty. Usually they'll invite some gold expert to analyze the pieces and write checks. The gold expert then takes your gold home, melts it into a brick and cashes it in. Add some food and drink to the mix and everybody goes home happy.

Many jewelry stores will also exchange your gold for cash. Again, this is a much safer, faster and more convenient way to go.

Coors Credit Union Hires Senior Mortgage Experts

2009-11-12T06:22:00.001-07:00

Colorado home sales rose 9.4% in September, overall sales increased 24% since hitting bottom last year. Meanwhile the government not only extended the First Time Homebuyer's Tax Credit, but added in a chance for current home owners to get credit for a home purchase. Combine these actions with crackdowns on lending then if all goes as hoped we'll moving toward a stronger economy.

Coors Credit Union is on top of the game. They've just hired two well-seasoned Senior Mortgage Consultants. These additions will not only help with an increased demand in mortgage loans, but their experience brings a nice depth of knowledge to the Credit Union.

Leslie Larson is working out of the Coors Credit Union Golden office.
Leslie has been working in the mortgage business for the last 24 years where she has been an originator, processor, and closer. Leslie is great because she really works closely with clients and develop relationships with all parties involved to ensure that your mortgage experience goes smoothly. She also knows a lot about FHA, VA and Conventional financing. She is good at helping you choose the program that works best for your situation.

Ron LoSasso works out of the Arvada branch. His real estate career began at Chicago Title & Trust where he worked in both commercial and residential real estate. Eventually Ron opened his own real estate lending firm in Wisconsin. Then later when he moved to Colorado he started First Western Mortgage Company in Louisville. Ron is extremely active in local business and is the current president of the Louisville Chamber of Commerce.

Both Leslie and Ron have a strong knowledge of Jefferson County real estate.

How to Choose a Mortgage Lender

2009-11-11T06:04:00.000-07:00

The 2008 crumbling of the economy taught us all a valuable lesson. I’m not surprised to hear a little skepticism out there regarding mortgages. The good news is that many lenders learned what happens when you lend too freely or get too creative. The bad news is that there will always be someone somewhere who tries to manipulate in order to earn a bit more money.

So, what do you do if you want to buy, but are feeling hesitant? Choose a reputable lender, right? Well, the last year showed us that it’s easier said than done. You can’t just stick with a big name lender and be sure you are getting responsible service. Of course this is a credit union blog, so naturally I’m going to recommend that you go to your credit union for a mortgage. But let me tell you really why you should go to your credit union.

#1 Trust: All the web articles always suggest that you go to someone you trust for a mortgage loan. Look beyond a mortgage loan. Credit unions are known for less fees. It’s not going to be any different with your mortgage loan.

#2 Rates: I’ve read several articles that warn not to choose a lender who “won’t quote you a rate over the phone”. That’s not reliable information. Mortgage rates can fluctuate greatly from one day to the next. A lender who commits to rate over the phone hasn’t given you or their financial institution good service. Instead, you’ll want to ask how their rates compare to other lender’s in the same market. And remember, you need to look at the overall loan, not just today’s rate.

#3 Accessibility: I probably should have rated this as #1. Prompt return of phone calls and commitments to answering questions is important. On the flip side, a lender who is always available could be a bad sign as well. Shouldn’t they be busy sometime? Large banks can get overbooked. They may ask you to call back next week or say they call you and then don’t. Credit Unions are smaller and more personal. This is important when you are trying to close on a home purchase by a specific date.

#4 Resources and Connections: Part of the lenders job is to ensure that your purchase moves smoothly forward and there are a lot of people in the way of making that happen. Contractors, inspectors, title offices can all need to be reminded of the importance of your sale—your lender acts like a director. The staff at Coors Credit Union is well connected with all of the key players.

#5 Knowledge & Credentials: It should go without saying but be sure that your lender is licensed and registered. You’ll also want to know that your lender stays on top of the industry changes and developments. Your lender should also be aware of all lending programs: not only those offered by the lending institution but of others. In this way they will be able to help you choose the best program for your situation.

Questions to ask a lender:

§ What are your loan programs? Do you offer VA loans (for example)?

§ Can I see a Good Faith Estimate right away?

§ Could you estimate closing costs for my loan?

§ Can you estimate and explain your fees?

§ Over the last year what percentage of loans did not close on time?

§ Will you get approval for my loan locally?

§ Do you sell your loans?

It’s important that you develop a comfortable two-way relationship with the lender. Buying a home is a big deal, be sure you trust your mortgage lender.

Who Qualifies as a First-Time Home Buyer

2009-11-10T05:43:00.001-07:00

If you weren't in a position to buy a house by the original First-Time Home Buyers Tax Credit deadline of December 31, 2009 then you might be happy with the six-month extension announcement. Now if you close on a home purchase before June 30, 2010 you could be eligible for up to $8,000 tax-credit.

As a reminder these are the points you need to know about the "First-Time Buyer" aspect of the program. For information about the newly added "Trade-Up" portion for repeat buyers see yesterday's post. (BTW: you don't have to buy a more expensive home to qualify as a trade-up buyer.)

First Time Buyers (defined): The government’s definition of a first time buyer is anyone who hasn't owned a principal residence for three years before buying a house. So if this is your very first purchase, you qualify. If you previously owned a home, but for whatever reason haven’t owned a home in three years, you qualify. If you owned a home, but it was not your principal residence, you qualify.

up to $8,000: The tax credit is equal to 10% of the home purchase price or a maximum of $8,000. So if you purchase a home for $70,000 your credit is $7,000. If you purchase a home for $160,000 your credit is $8,000.

Income limits: The tax credit is limited to single buyers with a modified adjusted gross income of $75,000 or less and $150,000 for married couples. If you do not meet these limitations consult your tax advisor for possible reduced credit eligibility.

No Repayment: Previous First Time Buyer tax credits included a repayment clause. The credit was treated as a loan and had to be repaid to the government via 15 year installment payments—not so with the new tax credit.

Recapture: If you sell the home during the first three years of ownership you will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce. Consult your tax advisor.)

Lenders have been hesitant to sign new loans. President Obama is hoping that the First Time Home Buyers Tax Credit will change that. Meanwhile Coors Credit Union is ready and willing to help you purchase a home with an affordable mortgage. Contact us today to and get pre-approved in time to take advantage of this buyer’s market.

More Buyers Qualify for the Home Buyer's Tax Credit

2009-11-09T06:31:00.006-07:00

On Friday President Obama signed the extension to the First Time Home Buyer's Tax Credit. The program was set to expire this December 1st, but was given a six-month reprieve and will now end June 30, 2010.

To receive the $8,000 contract buyers must sign a contract by April 30, 2010 and close on the home by June 30, 2010. All of the requirements from the bill's first round still apply, however, now even more homeowners will be eligible. The bill now includes buyers who want to trade up.

The tax-credit for current home owners who sell their home to buy a new one is up to $6,500. This portion of the tax-credit has been deceptively referred to as the "trade up" credit, but actually you don't have to purchase a bigger or more expensive home to qualify.

Who qualifies?
You must have owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. The bill states that the law tests home ownership for both home buyer and his/her spouse.

How much is the credit?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.

Is any home eligible?
Purchases of homes priced above $800,000 are not eligible for the tax credit.

As for first-time buyers there are income limit restrictions:
The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.

New Construction counts too. If you are having a home built both the first-time or the repeat, can apply for the tax-credit as long as the closing date is by the June 30, 2010 deadline.

For more details regarding the Home Buyers' Tax Credit for both first-time buyers and repeat buyers go to Home Buyer's Tax Credits.

Denver Arts Week Kicks Off Tonight

2009-11-06T05:20:00.000-07:00

The third annual Denver Arts Week kicks offers a smorgasbord of cultural treats for everyone. The week kicks off in full gear this weekend with First Friday, Saturday Night at the Museums and Sunday on Stage.

If you have yet to venture to Denver's artistic neighborhoods on First Friday, set aside your prior excuses and get out there for this extra special First Friday. You'll be impressed by the festive atmosphere and quality art.

Happily Saturday Night at the Museums doesn't involve suffering through any of those ridiculous movies. It is instead the Mile High City's version of the popular La Nuit des Musées event in Paris, Night at the Museums offers a chance to discover eleven of Denver's greatest cultural attractions, all in one night, all for FREE. Complimentary shuttles run from 5 p.m. to 10 p.m. and originate from Cherry Creek Shopping Center and Denver Art Museum.

Then on Sunday discover our fair city's theatre offerings with Sunday on Stage. Denver theatres open up to give behind the scenes views at how productions come together, and actors' and dancers' crafts workshops.

More events take place throughout the week and to sweeten the deal hotels and restaurants are offering deep discounts.

ING Direct For Sale

2009-11-05T05:40:00.002-07:00

The first bank closures of this recession sent people flurrying scared that their money was gone. But by now we've become accustomed to bank closures and understand that our money is safe. Then last week a different bank closure announcement came from Internet-based ING.

Parent company ING Group located in the Netherlands received bailout money of 10 billion euros and was worried both about a crackdown by European Union regulators and pressure to pay back the tax-payer funds. In response ING agreed to sell off ING Direct in Wilmington, Delaware by 2013.

There has been a flurry of activity from customers wondering how the sale will affect them on Twitter. Naturally, ING's response has been "Have no fear, we're still Orange, still as safe as Fort Knox and still paying more interest than your mattress," the bank Tweeted back at 12:15 p.m.

Most likely customer's don't fear that they'll loose their savings, but that they lose out on future earnings and may get stuck with a lesser product. ING Direct was famed for great customer service for customers who basically didn't need service.

How to Buy Gift Cards for Less

2009-11-04T05:56:00.000-07:00

Last year a teacher that I know told me that she raked in $250 worth in gift cards from her students during the holidays. Yep, gift cards are the perfect gift: easy to buy, easy to wrap, and don't require much thought. But did you know that with just a little effort you can purchase them for less than face value—giving you a great savings and your recipient a nice gift?

Type in “gift card” on eBay and up come a wide variety of gift cards for auction. I spent less than a minute watching a Lowe’s $450 card go for $398 and a Macy’s $325 go for $285. As always though you’ve got to be careful with eBay only buy from top-rated sellers.

If you Google “discount gift cards” you’ll get a lot of sites that specialize in selling or helping you sell cards. On giftcards.com I found card $250 Borders selling for $217.50 and $25 Carraba’s for $22.50. At ABCGiftcards you’ll find offers 5-35% discounts on gift cards for popular stores and restaurants like Victoria Secret, Barnes & Noble and Olive Garden.

You can also pick up deals at warehouse stores like Costco. Costco members might find $90 in iTunes gift cards for $75 or $100 Wolfgang Puck gift cards for $80

Citydeals.com gives you discounts on everything from car rentals to movie tickets or restaurants narrowed down by location. You could make a purchase for a far away family member, a local friend or use it when you travel to find deals in the city that you are visiting.

Before you purchase any gift cards ask about any expiration date or non-usage fees that might apply. And be sure you're really getting a deal, not like these Target deals (credit The Consumerist)

Watch Out for FDIC Phishing Scam

2009-11-03T06:13:00.001-07:00

The FDIC (Federal Deposit Insurance Corporation) which insures your savings at banks (NCUA is the credit union insuring body) wants you to know about a scam using the FDIC as bait.

The subject line of the e-mail states: "check your Bank Deposit Insurance Coverage." The e-mail goes on to say that, "You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets."

The e-mail directs you to a fraudulent link and instructs you to "visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage". It then instructs you to "download and open your personal FDIC Insurance File to check your Deposit Insurance Coverage."

This is a phishing scam. Remember no financial institution would ask you to follow a link, provide information or download an attachment. Don't be fooled by official looking emails. For more about phishing scams read the Coors Credit Union informational flier.

Charity Begins at Home

2009-11-02T06:47:00.008-07:00

Since it's November I consider the giving season to have officially begun. One thing I've been thinking about over the past year is how to start my own charity. People often begin their own charities because some tragedy touches their life and they want to ease the burden for others. In my own family we have had our lives touched by some dramatic events and health conditions that I'm sure I wouldn't have gotten through without the help of others.

Starting your own charity as you would probably guess can be complicated. According to

Start Your Own Charity - Kiplinger.com: "If you want to set up a family charitable fund, a donor-advised fund will likely meet your needs. But for some people, a family foundation may be a better way to go. One critical factor is how much and how often you give. For instance, you should expect to set aside at least $5,000 to start a donor-advised fund sponsored by a financial firm. Many community foundations can set up a fund for $1,000 or less if you give regularly. But it usually takes at least $250,000 in assets to make a private foundation worth the cost."

Though starting a charity is on my list of things I'd eventually like to do my family isn't at the point where we are ready to establish a foundation. To encourage my children to give to other we've started the Giving Jar. From now through December we'll all add found change and pocket change to the jar and then donate to one charitable organization. I'm giving the kids a list of organizations that help children and will let them decide which group gets all the money.

The hidden agenda behind the Giving Jar is to inspire my children to help others and to learn that saving even a little bit of money is worthwhile. The project should also help them to become aware of the needs of others and the organizations that try to meet these needs. Because I'm a strong believer that charity begins at home, we'll focus on local organizations that help local people.

I'm excited to see how much of the jar we can fill.

Believe it or Not Money Superstitions

2009-10-30T06:15:00.001-06:00

We all become superstitious on Halloween. Following are some money superstitions for you to believe or not!

If the palm of your right hand is itchy, this foretells that money is coming to you, but don't scratch it as that will stop the money from coming. However, If it’s your left palm that is itchy, then by all means scratch away since it means that you'll soon be paying out money for something.
Giving a wallet to someone as a gift without some token money in it will bring that person bad luck.
A bee landing on your hand means that money will come to you.
Money attracts money, so never leave your pockets, purses or wallets completely empty and never completely empty your bank account. Always have at least a coin or two.
Placing a piece of snake skin into your wallet will help you become rich or find money. Snakes are a symbol of money and wealth in Japan. If you kill a snake, you will lose your money.
If you put your handbag on the floor/ground you will never have money.
Do not pick up money you find in the road - it could have evil spirits or worries on it.
If you see a brown spider in your house, you will get money.
If you see a brown grasshopper in your house you will get money, but if you see a green grasshopper in your house, you will lose money.
Placing corn and bread near money will bring you prosperity.
If bird doo falls on the head, you will be lucky and earn money.
If you always pick up burnt matches instead of leaving them laying you will find money.
When you peel onions, burn them and you will never by empty handed.
At the stroke of midnight on New Year’s Eve, while holding money in one hand, kneel and pray and you will have money the remaining of the year.
If you see a shooting star, say money, money, money and you will soon receive money.
If you see bubbles in the rain, you will receive a lot of money.
Wrap a penny in paper and carry it with you this will make sure you never go broke.
If you make money on Monday, keep it and the amount will increase during the remainder of the week.

Try This Pumpkin Saving Tip

2009-10-29T05:36:00.000-06:00

It’s not a good year for pumpkins. The hardy squashes can usually take a good weather beating, but this year has been especially rough. When I took my family to the pumpkin patch two weekends ago (which is early for us, can’t believe I got my act together) more than half of the pumpkins were rotting. It’s sad and must be even sadder for the farmers.

It’s not unusual for Colorado to get an early snow. If the pumpkins get blanketed by snow they can withstand the cold. But this year we had quite an early and long period of freezing temperatures without snow. Then it got warm and then it snowed and then it got warm again.

So I have a bunch of pumpkins that I’m too afraid to carve. Well, actually I could probably just use my fingers to poke a face in them. The birds, meanwhile, are having fun. I’m not sure if they eat them, but they’ve been busy.

I found this suggestion on Lifehacker to save the pumpkins. It’s kinda gross, but might be worth a try.

Coat all cut surfaces of the pumpkin with petroleum jelly immediately after they have been carved. This includes a light coating of the entire inside of the pumpkin. If you can't do the whole inside, at least try to coat the design that you've cut into the pumpkin. The petroleum jelly acts as a barrier to seal in the pumpkins internal moisture to help slow down the dehydration process of the pumpkin.

If this doesn’t help look on the bright side, conditions this year are ideal for a pumpkin smashing. Plus, I live at the top of hill, so this will be loads of fun.

Your 401(k) is like a Halloween

2009-10-28T05:40:00.000-06:00

I know what you’re thinking. Your 401(k) is like Halloween because it’s scary. Yeah your portfolio may not be doing so well right now, but it’s still a sweet deal. Roll with me for a few minutes while I explain how it’s actually like the best part of Halloween—the candy.

Being a kid is all about acquiring candy. What kid doesn’t love Halloween—the mother lode? You get to dress up in crazy costumes and people just give you candy.

It’s not unlike your 401(k): You get to pick a mix of investment vehicles from a variety of industry and play like you’re a big time investor. All you really need to know is your age and risk level to help you choose a direction.

There is no good reason for not participating in your 401(k). Just like there is no such thing as not having a costume on Halloween. I don’t want to hear about how you don’t make enough money to participate in your employer’s 401(k) program. Of course you should go for the largest allowable contribution you can, but even 1% is something. And it’s pre-tax dollars. It’s taken out of your check before you even see it. You’ll never miss it and even better you’ll never spend it.

And then there’s the free candy part. Many employers will match your investment to a certain level. It’s almost too good to be true. It’s doubling your money! You’re not going to get better odds at Vegas.

Even in this lousy economy your 401(k) is still fun. Right, I heard you the fund’s performance is pitiful, mine too. But what you don’t see is that you’re actually purchasing more of your investments. It’s as if they were on sale. For the same dollars invested you’re getting more pieces of candy. So when the market does turn around you’ll fill your sack even more.
It’s time to start thinking like a kid again and get more candy.

Try This Trick on Your Kids

2009-10-27T05:49:00.002-06:00

Want your kids to be better with money? Does it pain you to see how much candy they get on Halloween? Try this trick. Buy their candy from them.

What you do is tell your kids you'll give them $.25 for each piece of candy they get for Halloween. Then they can buy the candy back from you as they want it. Any money they don't spend on buying back their candy, they get to keep.

Kids will usually buy back the candy they like most, first. So, once the good stuff is gone you can put the rest of the candy on sale. For example, the price on leftover stuff might drop to 2 for $.25 or 3 for $.25.

You may want to put rules into place ahead of time, such as: only $1.00 can be spent daily.

The purpose of the trick is to help kids exercise some restraint, learn a little economics and understand the value of money.

Don't Fall for Rip-Off Furnace Maintenance-Like I Did!

2009-10-26T10:25:00.004-06:00

Ugh! I just hate when this happens. I try to be a good homeowner and instead I get totally ripped-off.

Last winter our heater broke down. When the repair guy came out he found that dirt had built up and caused some part to fail. He recommended that we get the furnace cleaned at the start of every season. So this year I called the same repair company and asked them to take care of the annual cleaning. BIG MISTAKE.

I had to wait around an entire day for them to show up since they kept calling and saying they were running behind. When they did come, one of the guys was in training. So while they were in my basement the trainer had to explain everything to the trainee. They were at my house for an hour and in the end they did nothing! They did recommend a cleaning and some (what I determine as) unnecessary rewiring. They wanted to charge another $130 to clean the system on top of their $80--what I thought was a cleaning, but wasn't actually just to turn the thing on and check for trouble--and another $235 for rewiring that didn't make any sense.

Okay I should have known better. It's not that hard to clean your own furnace. I'm busy and don't like cleaning very much. I was willing to pay a little to have someone else clean it--not to turn it on. I can handle turning it on.

Anyway, learn from my lesson and clean your own furnace--as I will be. Here's how:

You'll need:
vacuum
toothbrush
cotton swabs
toothpicks
dry brush
rags

Get to it:
1. Cut the power to your furnace by shutting off the breaker switch. Remove the front safety panel from your furnace. In gas and oil furnaces, the pilot light and fuel supply should be shut off for safety.
2. Vacuum the interior area. Use caution, do not displace any wiring. Use an old toothbrush to carefully remove grime and dust build-up. Vacuum the area a second time.
3. Clean the furnace's blower assembly thoroughly, using a toothbrush, toothpicks and cotton swabs. Remove build-up from all surfaces of the assembly, paying special attention to the blower fins. In some furnaces, a blower cover must be removed to access the fan assembly. Vacuum again.
4. Use a large, dry scrub brush to clean all vents. Pull off the furnace filters and replace if needed. Vacuum permanent filters then use the scrub brush to remove build-up. Vacuum yet again.
5. Put the furnace back together. Replace filters, and any safety covers (except the front panel) you have removed. Look for loose connections and signs of corrosion. Check for worn or melted wiring. If everything is in order, re-connect the furnace and turn it on.
6. Allow the furnace to run for several minutes to check for unusual sounds or smells. Disturbed dust commonly makes a crackling noise, which should stop after a few minutes. If you smell burning gas, oil or electrical wiring, shut down the furnace immediately and call in a professional.
7. Replace the front panel when you feel everything is running smoothly and safely.

Remember to change your disposable filter frequently-once per month.

And know this: A furnace that is not running at peak performance can be deadly. Every gas furnace produces some carbon monoxide. It is then carried throughout your home’s ventilation system. A clean efficient furnace produces slight amounts of carbon monoxide, a dirty furnace can produce deadly amounts. Carbon monoxide is colorless and odorless. It can cause flu like symptoms, disorientation, confusion and even death.

If you learn better by seeing than reading here's a video for you.

Should You Refinance Your Car Loan?

2009-10-23T07:03:00.001-06:00

The following was originally posted October 2, 2008 , updated 10/23/09.

Cutting out little luxuries like a morning latte or dinner at a restaurant only goes so far to reduce expenses. To really make an impact you've got to look at your current expenses with a new perspective. Like you car payments. When was the last time you looked at your payment? Have you ever even considered that you might be able to lower those payments? Chances are good that an autoloan refinance could give you some relief each month. But don’t just look at your monthly payment before deciding to refinance.

Refinancing for longer terms could end up costing even more over the life of the loan. Say for example you’ve got a $15,000 auto loan at 12% written for 60 months. Your current payment is $360 each month. The total amount you’ll pay when the loan is finished is $21,622. You’ve just completed the 2nd year of payments, so you’ve already paid 24 payments or $8,640. Your remaining balance is $12,982.

You refinance the loan at a lower rate of 8%. This time you’re refinancing the remaining balance of $12,982. If you choose another 60 month loan your monthly payment would be just $263.22—nearly a $100 savings in your monthly budget. That would definitely relieve the strain. But over the life of this loan you’d pay $15,793. Add that to the $8,640 you’ve already paid and you’ve spent $24,433 on a $15,000 car.

But what would happen if you were to refinance at the same 8% rate and shorten the terms to 48 months? You’re payment would be slightly lower than the original loan at $317. And at the end of the refinanced loan you would have paid $15,216. So again you’d be paying almost $3,000 more than the original loan.

Refinance at shorter terms—say another 3 years and you’re payments are higher than what you are currently paying--$407, but your total cost only goes down to $14,645. Add on the $8,640 you paid previously and you’ve spent $23,285.

So what you need to decide is which is more important. Paying less overall or reducing your monthly payment and paying a bit more in total? Does that $3,000 matter to you? Maybe you’d be better off investing that money? But then again, it’s not like you’ve got that cash lying around. If you do you shouldn’t be considering this scenario at all. Remember, the name of the game is to reduce debt.

How to be the Family CFO: Book Review

2009-10-22T06:08:00.000-06:00

Want to read this book yourself? Make a comment through the blog or Facebook for a chance to win a copy of the book.
How to be the Family CFO, by Kim Snider has been on my reading list for some time. It's an intriguing title. I like the idea of treating your personal finances as seriously as one might treat business finances. Too often we don't take our personal money as carefully as we do with other people's money.

This is a quick read with some good ideas, such as creating a personal balance sheet and income statements. While many of the actions that Snider proposes aren't new ideas they are solid practices that anyone interested in controlling their finances can/should learn.

Like many personal finance books, this one hovers on the surface with good ideas, but not enough detail. This is both good and bad: good as an introduction and, though I wouldn't exactly say "bad, this isn't for the intermediate level money manager.

A CFO, chief financial officer, is much more than a bookkeeper or accountant. CFO's guide the corporation's financial direction. To do this you've got to think beyond monitoring a budget. The CFO doesn't just set financial goals but develops the steps necessary to reach those goals through implementing spending controls, monitoring purchasing (such as price shopping). The CFO also works with investments, for a family that means watching the retirement accounts and understanding what other investment vehicles will keep the family financially healthy. In a family, I would expect that the CFO would also report to the rest of the family members to ensure that they were informed of the family's financial undertakings, plans and current status.

But How to be the Family CFO doesn't get that specific. Instead, Snider, spends more time on reiterating the importance of setting goals and developing savings--something we hear and read about all the time.

So while this isn't a bad book and it definitely has some good information, it didn't meet my expectations.

Is it Too Late to Start a Holiday Savings Fund?

2009-10-21T05:46:00.000-06:00

One Christmas I asked Santa for the Dancerina Ballerina doll. Here’s a rather poor video of the doll, but it gives you a good view of the doll’s amazing (to a five-year-old anyway) talent.

I was heartbroken when I didn’t get it. Maybe that’s because I didn’t tell anyone that I wanted it other than Santa. I remember my mother pointing out that I had received many other wonderful things including a Radio Flyer sled, which was really awesome. But all I focused on was the doll. That had to be a downer for my parents who probably spent too much on presents and tried hard to make their kids happy. Sure, I still remember not getting Dancerina, but not because I was disappointed with Santa or my parents, but because I think it was stupid to be a sourpuss over a doll. Not getting the doll did not ruin me for life. I don’t remember thinking much about the doll after that but, I do remember some wild rides on the Radio Flyer.

The Holidays can be financially stressful, but it’s really what you make of it and planning reduces a lot of the pressure. It’s not too late to start a saving for the Holidays.

Christmas Savings Clubs originated in the Depression. They weren't actually clubs, but specialty savings accounts. Savers would open a fund early in the year and contribute a regular amount, typically about $25/month. It worked almost like a short-term certificate. Savers could not take the money out until the end of the year. The clubs fell out of favor among both financial institutions sometime during the 1980s. So, while you may not be able to open an official Christmas account, you can start preparing for the season.

First, you’ve got to set a budget. Only you know what is reasonable for your situation. If you need to cut down on presents this year there are loads of ideas on alternative or no-cost gifts on the Internet.

Next, look at your overall budget and see how much you can afford to put away on a regular basis. There are 10 weeks or 64 days left until Christmas. Setting aside $25 a week would give you $250 to spend, or $5 a day would yield $320, and so on you can do the math.

The most important thing is not to jeopardize your financial health for the sake of a few minutes of happiness. Maintaining your financial health is a great gift to give your children. Avoid using credit cards to purchase gifts. Stay within in your means and you’ll also avoid the January blues.

Simple Alternative to the Extended Warranty

2009-10-20T06:08:00.000-06:00

I usually advise people not to buy extended warranties on most items. They are a big money waster. Then the other day I read Flexo’s How to Create Your Own Extended Warranty on Consumerism Commentary and he pointed out a great way to afford repairs without getting suckered into an extended warranty.

I recommend that you read the article for his perspective on this topic which comes from his experience working at an electronics store. But here’s my cut-to-the-chase version of how to create a Warranty Fund. My version is slightly different since Flexo suggests that you create a separate or sub-account for each product. I would simplify this and create one warranty (or repair) fund that could be used whenever you need it for any item that breaks down.

Step 1. When you purchase an item, make note of the cost of the extended warranty. Don’t buy it.

Step 2. Transfer this amount to a special savings account that you will not touch until one of your “protected” items needs to be repaired. Coors Credit Union offers a “You Name It” Savings Account, which is perfect for the Extended Warranty Fund. This will build up a sizable Warranty Fund.

Step 3. When one of your self-insured products breaks or otherwise needs repairs, dip into your Warranty Fund.

Establishing a Warranty fund will help you avoid tapping your primary Emergency Fund unless the Warranty Fund doesn’t cover the full expense and the product must be fixed or replaced.

Credit Card Companies Implement Work Arounds As Reform Gets Closer

2009-10-19T09:48:00.000-06:00

The Credit CARD Act sets a deadline of February for many changes to credit card policies. In preparation for expected loss associated with reform card companies have been and still are making changes to protect their profits.

Bank of America, Chase and Discover Card both switched many of their cardholders from fixed to variable rates. This allows the companies to raise rates when the prime rate goes up without actually implementing rate hikes. Rates would just naturally rise and fall along with prime. Card companies raised some consumers card rates raised since the Act was announced in May to squeeze in higher rates before the deadline.

Lawmakers had recently introduced legislation to move up the effective date of new credit card reforms by two months to Dec. 1, but that’s up for debate in the House. The push for an earlier date is to disable last minute rate hikes.

Another way banks are looking to protect credit card profit is by implementing or raising annual fees. According to Bank of America new annual fees will range between $29 and $99. BoA also stated that the fees would not be coordinated with the card services, but with consumer profit. In other words, the people who pay cards late or carry a balance would pay a lower annual fee, since they contribute to the banks bottom line. The “good” consumers who don’t add interest income would be charged more.

Meanwhile, I urge you to look at your credit card terms & conditions and read all statements and notices, especially now as things are changing. And if you are looking to change, do look at your credit union offerings. Consumer Reports recently reviewed credit cards and determined that the best and most trustworthy cards were offered by credit unions, associations and specialty retailers.

Fixed it!

2009-10-16T06:25:00.003-06:00

Here's proof that you don't need to procrastinate, or have all the perfect tools to get a job done.

Prepaid Debit Cards Steal Your Money

2009-10-15T05:48:00.002-06:00

There’s an advertisement running on TV that just doesn’t sit well with me. It’s for a prepaid Visa card from NetSpend. The ad promises “No Credit Check. Safer Than Cash. No Bank Account Needed.” It goes on to boast that it’s safe because it’s not a credit card, it’s a prepaid debit card.

Okay, when I first saw this ad I thought “Here we go. Sounds like another way to trap people who don’t have credit into to something that’s bad.” But I sort of forgot about. Then I saw the ad again and curiosity got me, I just had to dig deeper. And yes, it is as bad as I suspected. And I believe it’s even worse because it’s backed by Visa.

Here’s the bad: FEES, FEES, FEES (you should be able to click, if you care to read this)

And it's not jsut Visa that's in on this game. The MiCash Prepaid MasterCard is even worse, it hits users with a $9.95 activation fee, in addition to the regular fees (as above) that come with these cards.

These cards prey on people who do not have credit, have poor money management skills or who may be desperate. It’s kin to the payroll card. They are designed to generate fee income and ruin users. They especially cater to the young people and immigrants. And yes, I’m going to say it...they target Latinos. Because the banking industry knows that immigrant Latinos, more than those born in the U.S., do not trust banks. Because they don’t use banks they are faced with using check cashing or payroll services. The prepaid debit card poses as a respectable convenience, but when you look at the fees it makes you scratch your head. I cannot tell what the difference is between NetSpend’s Reload Pack and visiting a Reload Center, but I know they both cost money—just to put money on the card! “Instant bank transfers” is another weird term, but I get that it costs money.

Okay, I’ve made my point that I don’t like these cards and I really don’t like how the advertising happily touts “No Credit Checks”, but I did wonder how these things were any different than the Visa Gift card. They are vastly different, but it boils down to just a few points.

Number 1=Preloaded debit cards are reloadable, Gift cards are not
Number 2 =Preloaded debit cards can be used at ATMs, Gift cards cannot
Number 3= Preloaded cards are intended to used by the person who sets them up, Gift cards can be purchased at stores or financial institutions for someone else.

I found this comment by an employee of an un-named credit union posted on the Consumerist. I think it speaks for itself on both the integrity of credit unions and the hypocrisy of “banks” (sorry I still like this even though it's worn)while showing the true colors of the prepaid debit card. So I’ll close with this:
my credit union's BoD charged me with finding/implementing a prepaid debit program earlier this year, but i've yet to find a program that isn't just designed to steal people's money.
i did actually find a few good programs that don't charge transactional fees or inactivity fees inside of 1 year, but b/c of tough state banking laws, i can't offer them to my members.
so why can i offer these fee-heavy programs but not the consumer-friendly ones? b/c the trap cards are offered by national banks & nationally-chartered banks don't have to follow our state banking laws. BOO!

Form New Habits

2009-10-14T06:12:00.001-06:00

Want to succeed at better managing your money. You can if you understand that like everything else you do, money management is nothing more than a habit. Habits can be good (like managing your finances) or bad (like not managing your finances), but habits aren't easy to make or break.

For years psychologists thought that it took 21 days to make or break a habit. But, even after following this guideline so many people still failed to reach their objective. Now new evidence shows that the timeline is much longer at 66 days.

The 21 day guideline is credited to a 1960 plastic surgeon. Dr Maxwell Maltz. Dr. Maltz noticed that amputees took, on average, 21 days to adjust to the loss of a limb and he argued that people take 21 days to adjust to any major life changes.

A paper recently published paper in the European Journal of Social Psychology reports the results of a study conducted by Phillippa Lally and colleagues from University College London. The study followed 96 people who were interested in forming a new habit Lally et al. (2009). Participants were asked daily how automatic their chosen behaviours felt. These questions included things like whether the behaviour was 'hard not to do' and could be done 'without thinking'. On average a plateau in automaticity was reached after 66 days and it was concluded that the action was now habit.

But it's not the same for everyone. Results were anywhere from 18 days up to 254 days in the habits examined in this study. The variance comes from the individual and the type of habit. The less pleasant the action, the longer it took to become a habit. The good news is that missing a single day did not reduce the chance of forming a habit. So if you've vowed to start taking a daily vitamin, missing one day won't cause a need to start over.

So why does it take so long? Researchers at MIT were curious so they've studied habits as well. They found that "Habitual activity--smoking, eating fatty foods, gambling--changes neural activity patterns in a specific region of the brain when habits are formed. These neural patterns created by habit can be changed or altered. But when a stimulus from the old days returns, the dormant pattern can reassert itself." That's why it's so easy for us to fall off the wagon.

It takes some personal persistence to stick with something new, but it's not impossible to retrain those neurons into accepting postive behavior.

Where's My Cell Phone

2009-10-13T05:50:00.000-06:00

I guess I'm not the only one who is always losing stuff. Someone else who misplaces their cell phone all the time created a website called Where's My Cell Phone.

How it works: If you can't find your phone and don't have another phone to call it, but you do have Internet access go to wheresmycellphone.com, type in your cell phone number and the site will call your phone.

It's rather simple and safe. It does not store your cell phone info so you don't need to be fearful of being bothered on your phone. You also don't put in any other information about yourself.

You can only use the service once every few minutes, so tune in your ears to find that phone.

Now if only someone would invent a way for me to call my keys.

Does this Recession Make Me Look Fat?

2009-10-12T06:18:00.003-06:00

We’ve all seen the images of scrawny depression era people, but things have changed since then. So what does a recession look like? Well it can look a bit plumper than your pre-recession body. And any time we face stress people tend to eat more. Less money, plus, more eating = fat.

It doesn’t help that our food is less healthy than it was during the depression. Although there is more focus on organic and natural, these foods cost more. Today eating cheap means eating poorly and that can add extra fat and sugar to your diet. During the recession you could buy a dollar meal at McDonald’s or pop some change into a vending machine for a super sweet soda.

To battle the bulge try reducing dependence on meat and cooking the old fashioned way. Buy your beans dried. Avoid packaged and pre-cooked food. As for organic food fruits and vegetables, the general rule is that if you are going to eat the skin, buy organic. There are also the dirty dozen lists add to that dairy, eggs, tea and coffee. For tips on how to shop organic on a budget visit Organic Authority.

I go through shopping and cooking slumps pretty regularly. That’s always a blow to my thighs and my bank account, because we’ll usually end up getting way too much take out. So to combat that, we’ve devised a list of enough dinner ideas to fill a month. I put them into an excel spreadsheet added a random integer column and use that to create a working menu for the month. For the next month I simple hit F9 to regenerate the random integers resort the list and create a new menu.

Our plan is to focus more on keeping the kitchen stocked to reduce last minute trips to the store and eating out. And by actually cooking meals rather than using prepackaged or readymade we’ll (cross our fingers) keep calories down.

Unique and Topical Halloween Ideas for 2009

2009-10-09T07:03:00.003-06:00

This year the Huffington Post has some great ideas for Halloween costumes. I searched around the web and was a bit disappointed to find that no other sites really compared. So check this out if you want some fun ideas that go beyond the cliche vampires and stuff.

Here are a few samples:

The Octomom

Swine Flu

Green Man (or Environmentally Aware Guy)

Other ideas are:

Kate Gosseline--there's bound to be plenty of wigs available for this one.

Chesley “Sully” Sullenberger the pilot safely landed in the Hudson River after flying into a flock of geese. You'll need a dark suit coat, a set of pilot wings, a pilot's hat, and feathers.

That's all I've got for now, but as always I'm looking forward to seeing what creative creatures come out for Halloween.

Inactive Credit Cards Might Not be So

2009-10-08T06:51:00.003-06:00

Maybe I shouldn’t be putting this information out there for just anyone to read because if it falls into the wrong hands it could be used wrongly. But for the rest of you take what I’m about to tell you as a caution.

We all get new credit or debit cards in the mail and they always have that paper sticker that instructs you to activate it by calling a toll free number from your home phone. Right? Right, you know the drill. And you probably assume that until you’ve called the activation line the card is dormant and secure. Right? Well, maybe, but not always.

It’s true that if someone should try to use some unactivated cards them they would be declined, but that’s not true for all cards. Some “unactivated” cards are actually live and could be used.
"Very few banks send out a card that can't be used, at least in low-risk situations," says Scott Stevenson, founder and CEO of Eliminate ID Theft, a credit protection service. "But I'd bet most Americans think you cannot use a card unless you call and activate it."

That means that someone could come along and take a card out of your mailbox and use it. You’ll probably never know if your card is actually inactive or not. Credit card companies, of course, tend not to disclose this information. Some cards allow only small purchases as a convenience to continue service for customers. A small purchase might be anything under $200. A few card companies do not set limits and a few others completely lock down their cards until activation.
So why do they bother with the sticker at all? Mostly it’s a fraud precaution. The activation procedure lets the card issuer know that the card has reached your home. It also can discourage would be thieves.

Whenever you receive a new card in the mail, first check to see that no one has tampered with the envelope. Then activate it and store it either in your wallet or a locked unit. Don’t leave unactivated cards lying around in your to-do pile. Remember, a large percentage of identity theft is committed by someone who knows the victim.

Oh, and if you’ve taken out a credit card that you only want to use for emergencies (not carry in your wallet) do be sure to activate it. If the card issuer sees that you haven’t activated a card after it’s been sent they will deactivate it for security purposes—usually after about one month.

Study Says Money Can Buy Happiness

2009-10-07T06:46:00.003-06:00

A study conducted at a Chinese university and published in the academic research paper, The Symbolic Power of Money, explores the power of money. The study specifically studied the effects of cash. The findings of the study are almost hard to believe but, the experiments were conducted scientifically and in the journal Psychological Science.

In one experiment students were told they would be participating in a test of finger dexterity. One group was given a stack of Chinese currency to count, while another was given blank pieces of paper. Both groups were given exercises that required them to handle the money. After they were told stick their fingers into bowls of water heated to 122 degrees. Those that handled money, rather than paper, were less bothered by the hot water.

In other experiments the subjects who got the real money were reported to show greater confidence after handling it. They actually even said that they felt stronger. The conclusion was that having physical money brought confidence.

The experiment also looked at our ideas about money and found that thoughts of having less money or losing money impacted our social interactions. In one part of the study subjects felt less socially accepted donated less money to charity than others. They may have had the same amount of money, but their feelings regarding social acceptance hindered their ability to give.

Losing money also negatively impacted the people in the experiment. When asked to think about losing money negatively impacted both their social and physical health. On the reverse, subjects who thought about having more money reported that they felt physically stronger and more socially accepted.

So maybe instead of eating your Wheaties in the morning you should just sit down and grope some cash for about 10 minutes to start your day right.

Put Old Cards to Use

2009-10-06T07:10:00.003-06:00

Plastic cards are just part of life. But what do you do with them when they are no longer of use?

Here's one idea...make a stand.

Get an old card plastic card. Could be a hotel card, gift card or those fake credit cards that come in the mail.

Make a Z-fold by bending the card about 3/4" from one end.

Then make another bend in the opposing direction about 1.5" from the other end.

And voila, you got yourself a stand.

Thanks to Lifehacker for reminding me of this snazzy idea.

The Legend of the Pizza

2009-10-05T10:03:00.002-06:00

This story has been going around the credit union universe, heck maybe even the entire universe for a quite a few years. At this point you could probably call it a folk tale. I’ve written versions of it myself. I’ve heard other people tell it. The funniest time was when some guy told me he knew the person that this happened to. So hopefully you get that it’s fiction, but like a good legend there’s a rather obvious message here.

There once was a college student who was up late writing a paper and suddenly felt hungry. So he called a local pizza joint for delivery. The answer to his call was the same as usual “Pizza Box, 20 minutes”. He was grateful when there was a knock at his door 45 minutes later. He wrote a check for $20 and ate the pie. After a full belly and a finished paper he gleefully slept. And life continued as usual.

Our student was busy with a full load of courses and juggling a demanding social life. Another thing you should know about our student friend is that he typically made one or two trips to the ATM a day at which time he not only got some cash, but checked his balance. Because he was environmentally aware, however, he always selected “no” in answer to the question, “Would you like a receipt?” He also was a good citizen and signed up for online banking and electronic statements. However, because the student was so busy he rarely looked at his online banking account; in fact it had been almost six months since he last logged on. Still he believed that since followed all these basic norms, he had things under control. But horror looked in what he didn’t see.

As life goes that check he wrote for pizza bounced. The Pizza Box charged him $25 for a returned check fee. His bank charged him $32 for overdrafting (yep, it really is this high, ask Wells Fargo). And he still had to pay the $20 for the pizza. And so that little late night pizza that may have even caused our student heartburn turned into a full blown financial nightmare and perhaps even taught a more valuable lesson than the paper it helped him write.

In some versions of the story the pizza ends up costing the student $100 or more. Some even goes so far as to have him ruin his credit and lose his car or get evicted from his apartment. And, yes, in some versions the student is female. No matter how the details of the story play out the moral is the same, and no it’s not that you shouldn’t eat pizza.

It all comes down to paying attention. If you ignore your finances or are too afraid to look at the reality you will fail—financially. Maybe you don’t want to have a ton of money, but I am certain that you would like to be secure enough to pay your bills and take care of yourself and your family. You can’t do that if you just go through the motions and think things will take care of themselves.

So the first thing you need to do to reach your financial goals is to pay attention. Make the time to look at your finances and set your goals. Don’t do it every day and don’t do a few times a year or even once a month. You’ll have much better control of what you do and where you’re headed if you take 15 minutes a week to review your financial position.

Make it a point. Schedule the time. Involve your entire family. You will control your finances and not the other way around.

Estimating Your Needs for the Future: 12 Times

2009-10-02T05:12:00.000-06:00

Many have taken credit for the 12 Times Rule most often it’s been accredited to Jonathan Clements, former columnist for theWall Street Journal.

This formula assumes three things: 1) that your income will increase to match inflation, 2) you draw 5% of your savings as income the first few years of retirement, and 3) your return on ivestment is 5%.

The 12 Times Theory states that your wealth should equal 12 times your income. The amount you’ll need to set aside each month is dependent upon how long you have until retirement and your current savings-to-income ratio.

Using the 35 year-old that we’ve used before it might look like this:
$75,000 annual income X 12 = $900,000. But that’s not all…

This amount indicates 60% of your pre-retirement income. Combined with Social Security and other income, you might end up with 80%, a figure that most retirement calculators assume is enough. Alternatively, if your own calculations show that you need a higher percentage, then you need to amass more than 12 times your income.

It may seems like a crazy amount of money doesn’t it? But actually it’s not.

Yes, the ways you can look at determining future wealth needs are vastly different. In the end, however, though they may spit out amounts that vary slightly, they all seem to point in the range of $1 million. Pie in the sky? Possibly. But it’s not a bad thing to shoot for if you can make that your goal without getting too focused on the almighty dollar.

Estimating Your Needs for the Future: The 10% Beauty and Beast

2009-10-01T05:54:00.002-06:00

We’ve all been told to start saving early and the 10% Rule proves this point. Save 10% of your income and invest it with long term returns around 10%, your portfolio will grow to the point that it can support your lifestyle from earnings in roughly 35-40 years. It doesn’t matter how long you live, you will not outlive your money if you follow this rule.

According to this rule we should all be wealthy and able to financially take care of ourselves well into old age, but that’s not real life. In real life we think that we can’t save either because we earn too little or have plenty of time for that later. Here’s the truth:

You might be young and earning very little, but then 10% of your income is small too. If you earn $22,000 and invest just $183/month ($2,196/year), you’ll be on track. But if you choose to wait until you are older you’ll need to invest much-much more to keep up.

Try it out by using this compound interest calculator.

In the above scenario a 25 year old earning $22,000 and investing $2,196 annually at a return of 10% would have over $1 million at age 65.

This is an easy it is to understand concept, it just seems that most people are reluctant to get started when they’re young.

Estimating Your Needs for the Future: The Millionair Next Door Formula

2009-09-30T05:21:00.003-06:00

The following is the wealth building theory posed in the book Millionaire Next Door by Thomas Stanley and William Danko.

Your Age ˟ Your Gross Annual Household Income ÷ 10 = Your Net Worth Goal

This is a super quick way to estimate what your current net worth should be. It’s not an estimate for your future wealth goal. This rule does not consider inflation, taxes and varying interest rates. It does provide a useful estimate of your retirement savings goal. The formula is a good way to assess your current savings. Are you on track? or ahead? It can be eye opening.

So if you are 35 and earn $75,000/year your goal would be: 35 ˟ $75,000 ÷ 10 = $262,500

At 45 earning $75,000 your goal would be: 45 ˟ $75,000 ÷ 10 = $337,500

At 60 earning the same: 60 ˟ $75,000 ÷ 10 = $450,000

Liz Pulliam Weston of MSN Money had this to say about the Millionaire Next Door theory: “…this formula is problematic, at best. It requires substantial savings of people in their 20s and 30s, and it understates what people in their 60s will probably need.”

Note that the formula does not intend for you to include unexpected income from inheritance or other means. It should just be straight savings and investments. I have, however, known people who include the equity of their home in their personal net worth. In my opinion, it’s risky to consider your home equity as part of your net worth.

Estimating Your Needs for the Future: The Rule of 25

2009-09-29T05:00:00.001-06:00

I’ve got a theory that you can’t get where you’re going if you don’t know where you want to go. Oh, I know someone else said that much more elegantly than I. This week I’m going to explore four common theories on setting your nest egg goals. Sure you can use calculators, but they can be complicated and cumbersome. The four methods I’ll cover simple yet great for setting tangible goals.

Today’s method: The Rule of 25

A simple explanation for the Rule of 25 is to add up your annual expenses, multiply by the number 25, and, voila, you get the amount you need for retirement. But it can be more complex than that. For one thing you’ll need to determine if your expenses today are comparable to what you’ll need in the future. If you are young and single you’ll probably need to increase the annual expenses a bit to compensate for your plans. Do you hope to have a family? pets? own a home?

Let’s look further at this theory. It’s just a mathematical simplification of the famous 4% rule where you expect to spend 4% of your savings during each year of retirement.

The rule assumes that you will be able to generate an annualized real return of at least 4% on your investments. A return of 4% return on a portfolio of $1.25 million yields $50,000. If you needed $40,000 to live on, you would need to save $1 million. If you needed $60,000, you would need to save $1.5 million. The amount you need to save to generate a specified annual income is always 25 times the annual income amount as long as you assume a 4% real return on your investments.

If your expectations for returns differ you can adjust the theory. Many people will downgrade the real return to 3% in which case you would then multiply by 33, instead of 25. Or multiply by 20 if you expect a 5% return. The more conservatively you approach the estimation, the more chances of success you will have, because you’ll sock away more savings.

Another way to apply the Rule of 25 is toward your current expenses and savings. If you take a look at an expense, say $4.00 each week for a latté which over one year would cost $208. Then multiply that expense by 25 you’ll find that for you’ll spend $5,200 during your lifetime on that treat. You might use this method to evaluate whether or not an expense is worthwhile.

So, the Rule of 25 is rather simple. It definitely gives you a goal to shoot for and I like that you can use it evaluate other savings and spending areas. Give it a try and then compare to some other theories that I'll cover this week.

Yard Sale Update, Craig's List and Spam

2009-09-28T06:38:00.003-06:00

You're probably logical enough to figure out what this post is about by the title, but here are the details.

First of my yard sale did not go so well. However, like all experience it taught me some things, or one thing. Don't start your sale late in the morning. My daughter had soccer practice at 9, so I started the sale at 11a.m. I did post a sign on my garage that was large and clearly stated that we started at that time, and I don't think there was any confusion. It's just that garage sale mentality kicks in early and doesn't last that long. What I mean is that most people will get out early to get the best stuff. After a few hours of saleing they are exhausted. By 11 or so they are ready to go home, have some lunch and get on with their lives. I did sell a few items and had several people stop by saying things like, "Oh I wish I had seen your sale first...I just bought an X, but yours is nicer...Darn, I paid to much for this X at another sale." Whatever.

Originally I hoped that I could unload my stuff all at once and avoid Craigslist, but after the preparation and boring hours sitting in my front yard I turned back to Craig. I already had everything cleaned up and ready. So I took some pictures and did quick posting.

This morning I was excited to see that I had 8 replies to my items. But once I opened the first one my excitement died. (I'm sure you've guessed why) Here's what it said...

Goodmorning, Would you be interested in working online?
Bing™ brings you maps, menus, and reviews organized in one place. Try it now.
this message was remailed to you via: sale-pbav6-1395391794@craigslist.org

There were 4 emails with similar messages. The "Try it now." was hyperlinked. I did not click it and have removed the hyperlinks for this post.

Four other emails contained messages similar to this one below (again, hyperlinks removed):

I saw the inStep trailer - found here: http://boulder.craigslist.org/bab/1395388031.html jumped out at me. I, too had been doing the same thing since I lost my job. 3months ago, it was aweful, but I needed to sell my boy's games just to make our house payment and it was most definitely the lowest point in my life.
Saying it was demoralizing couldn't even describe it right,but I knew I had to make the house payment or we would be homeless (I was already several months behind).Thank goodness that will be the last time I'll have to hurt my babies like that.
One of my good buds showed me what he's doing to earn ethical income working on his home computer. I couldn't believe he would share this with me, but I'm so grateful that I have been sharing this with anyone who needs a financial break and who might be in the same situation.
Thank God it's easy or I would not have been able to complete it, in additionit is the most financially stable I have ever felt before. I promise you'll find this link worth the 30 seconds it takes to look it over. Oh, there is the link: http://g4.ms/moreforus
Take great care, and Bless You!

The four previous emails all advertised Bing and came from hotmail.com addresses. The second set of emails all included links to "articles" and came from gmail.com addresses. The hotmail emails had sender and subject lines in all capital letters. Both sets of emails used similar subject lines, i.e. "RE: Kelty Backpack" which is the same as the name of my posting. The articles are linked through a cloaking service that could be used for marketing, redirecting and/or click tracking--or perhaps spyware.

It doesn't matter whether these are malicious or not, they are an annoyance at the least and potential dangerous. Virus software is not enough to protect you--you've got to be proactive as well.

Skimmers do Exist

2009-09-25T05:41:00.000-06:00

This is a security camera video of a man in Brazil installing a skimmer onto an ATM. This guy was caught and arrested, but the video shows that it's alarming easy to do and not so easy to detect.

Yard Sale Tips

2009-09-24T06:00:00.001-06:00

All summer I’ve been piling stuff in my garage and now the time has finally come…I’m having a yard sale. I am not looking forward to this. This is the weekend that my neighborhood has a community garage sale so I can’t back out. To find motivation I’ve research tips on successful yard sales. Here’s what I’ve learned:

Advertising—it’s important. I could have registered for our community sale for free and gotten my address on the map, but I was lazy and didn’t. Still I’ll get drive-by traffic as a result of the other advertising. But, I’m not going to leave it to chance. I’m also going to post my sale on Craig’s List.

SIGNS!!! They are so important. Why do some people make signs that look like they used pencil or had their kindergartner write them? Many municipalities have rules against posting signs on light posts or traffic posts (like stop signs). Some even prohibit signs on parked cars. Don’t leave your signs to chance. Get a large paper bag, fill the bottom with rocks, stuff it with paper, staple the top and write or attach your sign to the side. Post another sign on your garage w/time opening. Some people may come knocking on your door at 7a.m. asking to buy early. These are early birds. They are looking to snatch the good stuff before anyone else. Personally I am adding “no early birds” to my garage sign and my door. My sale won’t start until 11 am because my daughter has a soccer game that morning. I don’t want any early birds interrupting my morning.
Money
Get enough change. If you have lots of low priced items make sure you have lots of quarters, dimes and nickels. If your sale included high priced items, be sure you have enough change for $100. Don’t take checks, too risky.

When giving change be sure to leave the original bill in site. Make the change then put the bill away after. It’s so easy for someone to forget that they gave you a $10 instead of $20.

Here’s a tip I learned from the Yard Sale Queen: wear your money in a fanny pack or carpenters apron. Not sure how I’m going to do this yet, but it’s a great idea. I don’t want to leave a box of money on a table while someone calls me over with questions. Even if this box is locked it could be picked up.

Speaking of thieves… Some neighbors and I once had a combined garage sale that was very busy. An older couple asked about a set of end tables. She said she was hot or something and was going to the car. He continued to chat about the tables and children, the weather, and all sorts of stuff. Then he said goodbye and returned to his car. As soon as he was gone the tables were too.

The goods
Do start gathering stuff for the sale in advance. I’ve known about this sale since June so I’ve been loading up the garage and making mental lists of things to go for awhile. Avoid adding things on the same day as the sale. I call this sale frenzy and warn the dog and the kids that they might get a price tag on them. While we are on the subject…

Use masking tape, stickers or pieces of paper to clearly mark prices. A timid shopper may not even ask how much something is, while another make offer you much less than you’d like.

When pricing items, keep in mind that "a third of what it costs new" is only a guideline consider how old the item is, how desperately you want to be rid of it and its condition.

Make a list of your items and asking price. Also note the lowest you will go on an item. It’s good to think about this ahead of time because many people will try to bargain. My last yard sale was themed “Everything’s $1”. I was amazed that people still tried to bargain. Really, you think that $1 is too much for that frame Picasso print? After just a few hours I couldn’t take it anymore. I crossed out $1 and wrote FREE. Then I packed the kids and went to a local fair which was way more fun.

Include as much as possible original boxes and instruction manuals for an item.
Examine everything before you put it out. I’ve heard stories of people finding valuables in clothing pockets, money stuffed in books, very personal notes or letters in books, etc.

At the sale
Make yourself a nice shady spot where you can be near your items. Don’t go inside and leave instructions for shoppers to ring your doorbell for service. Whenever I see this I just leave.

Have a calculator on hand. My math skills are good, but under pressure I make mistakes.

I’ll be closing my garage door and putting all the items in the driveway. Last year I couldn’t believe how many people wandered into my garage and picked up my son’s snowboard or my bike even though I had tables set up as a barrier.

Wish me luck! It will be good to make some cash, but more importantly I just need to get rid of stuff.

How to Really Destroy a Credit Card

2009-09-23T05:36:00.000-06:00

I am not sure what my dad was thinking, but whenever he had an expired credit card he would give it to me to bend back-and-forth until it broke. Then he would toss it in the trash. Did he think this was fun for me? Well to this day I can’t stand that task or the smell of plastic on my fingers. Back then this might have been an effective way of thwarting credit card theft, but today you need to be extra cautious.

When you cut up a card you shouldn’t just simply slice the thing in half. You’ll need to slice each set of four numbers into six pieces (see the video below). You’ll also need to cut through your signature and the magnetic strip.

Really don’t forget that magnetic strip it contains a lot of information about you. Running a magnet over the strip will scramble the data. For even more insurance take a hammer and bang it along the strip to smash any RFID chips that may be embedded.

Some home shredders are capable of slicing credit cards. If you choose to use a shredder be sure it has cross-cutting functionality, so that your card is sliced and diced. A good shredder will have a slot to align the card for proper shredding and reduced jamming.

Don’t assume that you can safely toss your old cards into recycling. Though they might be expired thieves do know how to extract data. Recycling centers often employ more hand picking techniques and could be even more risky for identity theft.

I guess some people burn their cards, at least that’s what I’ve heard. While it does completely destroy the data, I wouldn’t recommend this because it is environmentally bad and stinks.
Once you’ve chopped up your card, even if you use a shredder, separate the pieces into at least two different trash bins. That way they have less likelihood of being pieced back together.

This video shows you how to simply and effectively destroy any plastic card.

Learn about Colorado's Small Colleges for a Chance to Win $500

2009-09-22T05:45:00.000-06:00

Small colleges really do have a lot to offer students. The classes are usually smaller and more affordable. The academics may be more focused and professors more accessible. Admissions may even be more relaxed. Plus, it's not a bad strategy to take many classes at a small school and transfer to finalize your degree at a big name school.

You can learn about the big benefits of Colorado's small colleges at the Denver Sheraton this Wednesday (September 23) and enter for a chance to win $500 scholarship to one of the following:

Fort Lewis College, Durango

Adams State College, Alamosa

Mesa State College, Grand Junction

Western College, Gunnison

The reception is Wednesday, Sept. 23, 7-8:30 p.m.
at Denver Sheraton, Four Points, 6363 E. Hampden Ave.

Before Deciding on College Look at the State of the State

2009-09-21T06:49:00.000-06:00

You’ve got the top party schools, the Ivy Leaguers, best schools for sports, academics, etc. But if you or someone you know is thinking about college anytime soon there is another measurement to consider—state funding.

This year 47 states are looking to trim budgets and narrow spending gaps. We’ve been hearing a lot about California’s problems, mostly because that state’s budget numbers are so high. But 12 other states are facing proportionally equal problems. Some state budget gaps, like Arizona and Nevada, are even higher than California.

Nothing escapes the microscope when it comes to possible cuts. In the east University of Virginia is shutting down its public computer labs. Maryland's community colleges are turning away students by the thousands. George Mason and Virginia Tech. are increasing class sizes. Crowded classrooms and fewer staff is how many public colleges around the country are trying to cope. Virginia and Maryland have also announced reductions in state funded student financial aid.

As Colorado tried to trim $300 million from the budget many feared that educations would take a hit. Colorado’s fiscal year begins in July and for the coming year funding to colleges escaped the budget knife.

If your plans include colleges outside of Colorado be sure to look beyond nice campuses and programs. If the state budget is suffering you could be paying much, much more to sit in stadium seating classrooms.

Listen to the Children (for financial advice)

2009-09-18T06:00:00.000-06:00

Marketplace's Scott Jagow sat down with a few kids to listen to their ideas about money, the economy and the future. One quetion asked was, "Should kids be allowed to have credit cards?" The answers might surprise you.

Should kids be allowed to have credit cards? from Marketplace on Vimeo.

50 Unusual Uses for Usual Things

2009-09-17T06:04:00.002-06:00

So speaking of recycling and upcycling here are some ideas of things that you can do with stuff you already have. Note: I'm not saying that I have tried all of these things, but they are kinda fun.

Use tea to freshen your toilet. Save the plastic hanger from those fake smelling toilet deodorizers, but swap out the insides with a tea scent of your choice.

Use a toothpick to mark the end of tape. Don’t you just hate the time you waste trying to find the end of clear tape? To make it easier after each use, place a toothpick under the loose end. The next time you have something to seal, pick up where you left off.

Protect your hearing with these nifty tennis ball earmuffs.

Sandpaper as a scissors sharpener. When your scissors go dull, just use them to cut through sandpaper a few times and they will be sharper.

6 Unusual Uses for Tooth Paste: Stop itching bug bites and minor rashes, clean up Kool-Aid stains, sooth minor burns, clean ivory piano keys, remove smells from your hands, spot clean your shoes.

Use a candle to release a stuck zipper. Olive oil may also do the trick.

Give yourself a one-of- a-kind manicure with stamps. I like this one a lot because I like being different. Find some interesting stamps with the same or alternating patterns, trim and apply.

When you don’t have a tea ball for your loose leaf teas try a household stapler and some tissue paper.

Once that tissue box is empty you can use it to store plastic bags.

Give yourself some room on the road by installing a conventional fold-out ruler, apply something shiny and reflective and strap it to the back of your ride.

Use Spaghetti as a candle-lighter. Just light the end and put a stop to burnt fingertips.

5 Unusual Uses for Old CDS: mini hovercraft, disco ball, lamp, “q-ball” and sculptures.
28 Unusual Uses for Coca-Cola: (Really!? I’ll never drink the stuff again!) clean a toilet bowl, remove rust spots from chrome car bumpers, clean corrosion from car battery terminals, cook, loosen a rusty bolt, bake a moist ham, remove grease from clothes, clean rust in a bathtub, clean milk stains from clothes, make barbecue sauce, prevent an asthma attack, relieve constipation, prevent diarrhea, condition hair, fertilize azaleas or gardenias, clean eyeglasses, clean tarnished pennies, strip paint off metal patio furniture, get rid of fruit flies, boost a compost bin, prevent flatulence, relieve an upset stomach, kill slugs or snails, mousse hair, sooth a jellyfish sting, clean blood stains from clothes, soothe a sore throat, neutralize skunk odor.

Reduce, Reuse, Recycle....Upcycle

2009-09-16T06:47:00.006-06:00

Some call it a hot new green innovation others brush it off as a hipster moniker for recycle, but whatever you call it “upcycle” is something that deserves attention.

Upcycle is a term coined by William McDonaugh and Michael Braugart in their book on ecologically intelligent design, Cradle to C radle. In the simplest terms, upcycling is the practice of taking something that is disposable and transforming it into something of greater use and value.
What makes upcycling standout from recycling is that it takes a bit of ingenuity. Recycling basically takes trash and completely changes it into something new. When we reuse we take the original item and give it a different purpose, like using a glass milk bottle as a vase. Upcycling repurposes materials that are not easily recycled into something useful or art.

But upcycling isn’t anything new. Marcel Duchamp took ordinary objects and turned them into what he called “found art” in the early 20th Century. Now as we find ourselves painfully aware of the amount of waste we generate it is somewhat soothing to think of new ways to use waste. Sure it’s better not to generate the waste in the first place, but unfortunately there is already so much.

TerraCycle is one of several companies striving to make a profit while helping mother earth and her inhabitants. Founded in 2001 by a Princeton University Freshman, Tom Szaky, TerraCycle upcycles otherwise non-recyclable materials to make useful items such as bags, wrapping materials and even shower curtains.

Etsy, the place for all things handmade, ran a crafty contest earlier this year to encourage upcycling.

To get your upcyle inspiration and experience some of Denver's most creative upcycle artists visit the Green with Envy:ReCycle, ReInvent, RePurpose exhibit opening this weekend at the Tactile Textile Arts Center in Tamarac Square.

images: Bicycle Wheel by Marcel Duchamp, TerraCyle bag made from cookie packaging, newspaper beads by Etsy artist janicemae, light made from soda bottles by Upcycle Art.

How to Opt Out of Phone Books

2009-09-15T06:25:00.004-06:00

I came home last Friday to find an unwanted visitor at my front door. I chose not to acknowledge the visitor and left it at the doorstep. Later, I went out of the house and again ignored the visitor. My husband came home and walked right passed the visitor. He later went out without notice to the visitor. My son came home and stepped right passed the visitor. My youngest came in and gleefully picked it up and set it on the kitchen table with pride. Who or what was this unwanted arrival? The phone book, of course.

I guess once upon a time ago the phone book was a welcomed arrival. Today it's a waste of paper, energy and space in my house. Is there a way to put a stop to this madness?? Maybe.

Earlier this month Idearc Media LLC (Pink Sheets:IDARQ), creator Superpages.com, the Verizon Yellow Pages and SuperpagesDirect announced that Opt-Out language indicating a web address and phone number would appear on the cover of all of their publications. Well, maybe they haven't gotten around to clarifying that text in time for September distributions. I looked at my Verizon Super Yellowpages and found this phrase: Order any directory anytime by calling 1-800-888-8448. I couldn't find any specific directions for opt-out, so I called the number.

Once you dial the number choose selection #2-Question regarding the delivery of your directory.

After holding for several minutes I finally was helped. The customer service rep kindly administered my request with basic information. Of course she did her job by trying to explain the benefits of the book and suggesting other products, but was not pushy.

Another opt-out list has been created by a grassroots organization called YellowPagesGoesGreen.org.

...an organization working to educate consumers and promote the green movement to eliminate the unsolicited delivery of Yellow and White Pages books. This site is aimed at starting a national movement to solicit the White/Yellow Pages industry to proactively stop the delivery of books or to begin moving legislation to mandate the stoppage of this activity.

There is no real guarantee that these efforts will eliminate unwanted phone books. More curbside recycling services are accepting phone books. You can also check for recycling options at called www.earth911.org/. In the meantime my daughter has found use for our old phone books to add texture to her artwork.

Who's Steering Your Finances?

2009-09-14T07:13:00.003-06:00

There is a Turkish proverb that says, “Two captains will sink a ship”. I’m not Turkish, but this is advice well heeded for just about anything. It’s particularly relevant to couples trying to manage finances.

We always hear that one of the biggest sources of tension between couples is money. I won’t go into explanations. We all know the reasons: He’s a spender, she’s a saver—whatever, let’s spare the finger pointing. The real tricks to managing daily finances with another person are to talk openly without blame and to define roles. This, like everything else in a relationship, is easier said.

Opening the discussion about money should come first and frequently. The key to successfully discussing money is to remove emotion and judgment. And, don’t try to cover the entire gamut at once. Take the discussion(s) in stages. You might even make them weekly topics. Here are some ideas for small topics, in order:
1) Make sure that you both know your shared accounts.
2) Discuss shared goals, i.e., buy a house in two years.
3) Financial Roles (more on this below)
4) Establish a budget

Once you open the topic of finances, keep the momentum going by being brutally honest in your financial ability. Decide which of you is most comfortable taking the lead in the money management. If both you and your partner have a strong hold on finances one of you may take the role of future planning while the other manages the day-to-day money. It’s typically easier if only one person is responsible for paying the bills. This same person should keep an eye on the everyday money flow to ensure that you are staying on budget.

Neither person in the relationship should close their mind to concept of managing the shared finances. If you think that money management just “isn’t your thing”, suck it up and make it your thing. If you blindly leave all the money issues to another person, you are setting yourself up for potential disaster. If you are the person who handles most of the money tasks, be sure your partner knows how to access information in case you are not available.

I can’t stress enough how important it is to continue to discuss money and to do it without blame. If things are going well, be sure to show your appreciation to your partner for doing their part. If things aren’t going well, maybe it’s time to review your roles or adjust your goals. Cultivating your financial relationship can only strengthen your romantic relationship.

Is Your Mortgage Broker Licensed?

2009-09-11T06:37:00.004-06:00

More than half of Colorado's mortgage brokers have had their licenses inactivated because they failed to comply with new education and testing requirements that took effect early last month.

This could be trouble for consumers who are working with brokers who are originating loans. If you’re broker is in this situation and you are in the midst of buying a house, you may not be able to close the sale.

Approximately 4,500 brokers have had their license suspended. About one-third of the licenses were held out of state. The educational requirement is a 40-hour class and test. Brokers will also need to pay a $500 administrative fee. Additionally, brokers are required to complete FBI background checks.

To see if your broker has a current license you can check with the State of Colorado or review this list: http://www.dora.state.co.us/real-estate/mortgage/documents/September2009.xls

Quick Assessment of your ID Theft Risk

2009-09-10T04:46:00.000-06:00

I stumbled upon a free service that assesses your ID theft risk in an instant. MyIDScore.com is by ID Analytics the same company that provides financial, healthcare, retail and government services with data intelligence and interpretation. ID Analytics’ network contains billions of basic identity elements such as name, Social Security number, phone number, date of birth, and address.

With My ID Score you type in some basic information such as name, current address, phone number and birth date. Within seconds the program scans it database to find previous address matches to narrow down the data.

You then get a scoring. Below is mine:
"A My ID Score of 463 indicates a MODERATE risk of identity fraud.
There is a moderate likelihood that information pertaining to you has or will soon be used to commit fraud endangering your good name. People with this level of risk are approximately four times more likely to be a victim of identity theft than the average consumer. Because your personal My ID Score is at an elevated level, and while no system can detect 100% of possible fraudulent activity, we recommend you take the following preventative steps as a precautionary measure:"

The precautionary measures include ordering your credit report, putting a fraud alert on your credit accounts and, naturally, ordering some of ID Analytics protection products.

My IDS core is not a credit score. Credit scores are calculated from the information held in the files of credit bureaus. My ID Score, in contrast, assesses the likelihood that an individual's identity information is being used fraudulently.

Though a little creepy, it’s not surprising that My ID Score can locate information about you. Have you ever Googled someone? It’s not hard.

I like the barometer reading on ID theft risk that this site gives, but I’m not likely to purchase one of their products. I would say that it is definitely worth checking.

How Much Do You Have in Net Investible Assets?

2009-09-09T06:40:00.001-06:00

You’ve probably heard of Net Worth as a term used to measure your wealth. It’s a simple calculation of Assets – Liabilities. But many financial advisors do not consider Net Worth to be an accurate assessment of your wealth. Oh, and first a reminder, “wealth” is not equal to “rich”, it is just a word to describe the value of your money. Okay, now back to our topic.

Net Worth assumes that if you needed to sell your assets—like cars, a house, jewelry—that you would receive current value. That’s rarely the case. Net Investible Assets, however, determines the amount of money that you have to invest. Financial advisors like to look at this value because it tells them how much of their client’s money is available to work with.

To calculate your Net Investible Assets add all your savings and investments and subtract your consumer debt (credit cards and loans). Don’t look at how much equity you have in your home or the appraised value of your wedding ring and grandmother’s jewelry or your family mountain home. This leaves you with investable assets. This tells you how much money you have available without selling all your personal properties.

If you begin to look at your financial position using Net Investible Assets you might start looking at your financial picture a bit differently. Although investment advisors may include emergency and regular savings accounts in your Net Investible Assets calculation, I would suggest that you take these out of the equation. Look at your Net Investible Assets as money that you can invest and leave the other savings for their intended purposes. And like your other savings, assign a goal to any funds that are included in your Net Investible Assets. If you are just starting to build these funds establish a savings vehicle that you can regularly and automatically fund. If you are working with an advisor, tell them upfront that this is the money you’ve allocated toward investing. Protect your emergency and regular savings to use when needed.

Looking only at your Net Worth can be a way to deceive yourself into thinking that you’re in good financial health. The Net Investible Assets calculation can be sadly eye-opening.

Plan for Home Maintenance

2009-09-08T06:16:00.002-06:00

You save and save and plan and work hard and then finally you buy a home. Then what happens? You work and work not just to make your mortgage payments, but to maintain your home. Sometimes you might even wonder what all the hoopla was in buying a home. Oh well, it just seems to be what we do.

To help ease the shock of things that need to be replaced around your home is a plan. You can schedule replacement and repair of big ticket items. Here are few of our favorite things that you'll need to think about. It also helps to look at how different materials last and their costs.

Hardwood floors: (info for 200 sq. ft, installed) Regularly clean your wood floor boards with a product like Simple Green.
Oak woods - replace 30-100 years. Installation cost = $2,500 to $5,000.
Pine flooring - replace 30-60 years. Installation cost = $2,000 to $4,000.
Bamboo - replace 20-40 years. Installation cost = $2,500 to $3,000.
Wood veneer - replace 20-40 years. Installation cost = $1,500 to $3,000.

Siding: (info for a 2,000 sq ft. house) Use a pressure washer to keep your siding looking good.
Vinyl siding -replace 30-40 years. Installation cost = $10,000 to $15,000
Wood clapboard - replace 30-50 years. Installation cost = $15,000 to $30,000
Cement board - replace 40-50 years. Installation cost = $15,000 to $30,000
Wood shingles - replace 40-60 years. Installation cost = $25,000 to $40,000

Windows: (per window) Use caulk to seal drafty window frames.
Vinyl - replace 10 -25 year. Installation cost = $200 to $350
Wood - replace 20-50 year. Installation cost = $400 to $800
Clad (vinyl or aluminum over wood) - replace 20-50 year. Installation cost = $450 to $850
Metal - replace 30-50 year. Installation cost = $300 to $800

Roof: (info for a $1,200 sq. ft. roof)
Asphalt - replace 20-40 year. Installation cost = $4,000 to $10,000
Wood - replace 30-50 year. Installation cost = $15,00 to $30,000
Clay- replace 30-60 year. Installation cost = $15,000 to $30,000
Slate - replace 60-100 year. Installation cost = $25,000 to $60,000

Taco Bell I.D. Theft

2009-09-07T07:53:00.003-06:00

Identity theft really can happen anywhere, even a Colorado Taco Bell. Three Colorado Springs residents were convicted last week for stealing credit cards from gyms and Taco Bell restaurants in Woodland Park, Broomfield, Lakewood, Canon City and Pueblo.

The article in The Gazette from Colorado Springs states that two men gathered credit card numbers from locked and unlocked gym lockers and from Taco Bell patrons. They used a skimming machine in a young woman's apartment.

A credit card skimming machine copies information from a credit card by reading the magnetic strip. The data thieves then use this information to make up fake credit cards that they use in person or for online transactions. These machines are disguised to look like any credit card swipe machine. That's why some identity theft protection literature will tell you to watch your card in restaurants. Sometimes they can be installed under the counter or in the back. If a worker leaves your site with your card you should be suspicious.

But this was not the case here. These people stole the cards and then took them to another location to skim.

In Search of the Perfect Coffee Maker

2009-09-04T05:22:00.001-06:00

It’s been a few weeks now and I still think about it. It was a sunny day, the kids were playing nicely and the coffee was sublime. Those moments come rarely. But now I can’t look at my Braun coffee maker without disapproval.

It happened at my friend’s house. She has a rather expensive—I can’t justify buying—pod coffee maker. She makes her coffee euro-style strong, but it doesn’t leave you with the Starbuck’s jitters.

And so, because I won’t, I can’t, I shouldn’t spend that much on a coffee maker I’m spending time on the Internet learning how to make coffee. Tim Ferris would surely say, “Just buy the damn coffee maker and be done with this time waster.” But no, instead I’ll share with a few things that I learned and then I’ll go visit my friend for some real coffee.

You don’t need to spend a car payment on a coffee maker. Your coffee money should, however, be spent on a quality grinder and good beans. CoffeeGeek recommends the Bodum Antigua grinder goes for around $60 to $70.

Buy your beans fresh. You buy online or from local roasters and look for coffee that was roasted 7 days or less ago. Expect to pay $12-$17 per pound of beans.

The actual brewing can be done with a $4 single cup pourover plastic filter by Melitta. You can pick these up at the grocery store. Personally I like my gold filter. If you want to make more than one cup at a time Mellita has a 10-cup version for around $15.

And you'll need some hot water. Water temperature is key--you want it between 195F-204F for optimal extraction. Remember here in Colorado water boils at a lower temperature. The higher you are the lower the temp.

So there you have it. I don't need to sell off my assets to enjoy a little caffeine.

I have measured out my life with coffee spoons. ~T.S. Eliot

How to Read the 4 Hour Work Week in 4 Hours (or Less)

2009-09-03T05:38:00.000-06:00

I checked out The 4-Hour Work Week by Tim Ferris from the library because I thought it might help me get organized, especially now that life has returned to normal with the kids back to school and all. I really knew nothing about this book and expected that it might teach me to be more efficient. I was right and wrong.

Tim Ferris is an energetic guy with lots of ideas and you could say the same of his book. The overall theme of the book and the 4-Hour Work Week method is to help those who feel trapped in cubicle hell to escape the drudgery of 9 to 5 and follow their dreams. Ferris wants to show you that it’s not that hard. So, it’s not really about time management or organization, though you will pick up some tricks that will then help you work less and accomplish more.

When I first started reading this book I felt like I was watching an infomercial. Ferris has an amazing resume from National Chinese kickboxing champion to political asylum researcher. He excels at everything he does and tells you that you can too. I’m not one to fall for hype, but I continued reading and found some solid ideas. It got me thinking about how I can make some adjustments in my personal life and in my career. But after a few chapters I found myself wanting to cut to the good stuff—and so, I figured out how to get to the heart of this book and harvest the real ideas.

At the beginning of every chapter is some anecdotal story or introductory writing. Skip this and you won’t miss a thing. I tried to read the subsequent section of each chapter. Then I would breeze the chapter headlines, just to be sure I wasn’t missing anything vital. And finally at the end of each chapter is either a summary and/or action steps. Anything that Ferris wants you to remember is stated here and if there’s anything you don’t understand or need more detail, you can go back in the chapter to find it.

I believe a book is worthwhile if you get one GREAT idea that you actually implement in your life and see positive results. The 4-Hour Work Week is such a book. I won’t list all of the things I learned from Ferris’ book. I think he’d be pleased that I used some of his own principles to cut down the time it could have taken to read the book. By not listing what I learned I’m also saving time and delegating the task to you.

Should you read it? If you love your job and are happy with the way things are going in your life—no, don’t bother. But, if you spend way too much time wishing you were on some tropical island, then yes, you should read this book. Or you could just visit Ferris’ website and save yourself a trip to the library or book store.

Game Change for Balance Transfers

2009-09-02T06:58:00.004-06:00

Some people enjoy a game called “balance transfer.” Usually balance transfer offers carry a low interest for a specified period of time. It could be 6 months to a year. After that the rate rises. Game players watch the calendar carefully and try to switch before the good rate expires. The game is still going, but with pending credit card regulations poised to chip away at credit card company profits, the rules are changing.

Balance transfers almost always carry a fee. Typically this fee has been 3% of the transfer amount. But some companies like Chase are guarding against the future. They expect that changes to credit card regulations will deeply affect their profits, so they’re looking to get more out of people who play the balance transfer game. At Chase the transfer fee has risen to 5%. Usually the transfer fee has been capped at around $100. This is might change as well. Expect to see an increase in transfer fee caps.

When you look at how these increases translate into dollars, it might seem a small price to pay for a better rate. The highest fee for a transfer of $10,000 would be $500. But then a fee cap would reduce that significantly.

Here’s how it all plays out in an example.
Say you have $10,000 on a card with a 21% interest rate.
Minimum payment = $273.25
But you can afford a fixed payment = $355
At this rate it will take you 40 months to pay down and cost you $3,897.86 in interest.

Transfer that balance to a promotional balance transfer at 5% for 9 months with $150 fee and here’s what you get. (Keep your payment the same at $355)
After 9 months you’ve:
paid $323.93 toward principal
paid $31.07 to interest
balance = $7,132.57

If you stayed with the original card after 9 months you’ve:
paid $206.80 toward principal
paid $148.20 to interest
and your balance = $8,261.85

Your balance difference between the original and the transfer is $1,129.28. That puts the transfer fee into perspective.

It seems like the changes will make the balance transfer game more exciting as it will be a bigger challenge to find the lowest transfer fee and the best rate. But I’m still not a fan of the transfer game. It requires way more time, effort and brain power than I can handle. If you forget and don’t transfer your balance to another card before the rate changes you’re probably paying much more. Plus it can wreak havoc on your credit score.