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By Rosemary White, March 9, 2010 2:54 pm

I’m used to being in the minority.   Years ago, it wasn’t always so cool.  But now, at least when it comes to alternative energy, I’m hoping us green types will eventually become the majority.  Since signing up for NStar’s Green Program last year, 100% of my household’s electric comes from a wind farm in upstate New York.  I’d prefer a wind farm somewhere in Massachusetts (it’s that Red Sox vs. Yankees thing) but we’re still battling over the proposed wind farm in Nantucket Sound.  That will get sorted out…hopefully soon.  Our cost per kilowatt has been a few pennies more, although I can’t really say I noticed much of a difference on our bill.  We’re on the level billing program since it provides for easier budgeting. 

Of the more than one million NStar electricity customers, fewer than 1% (8,000) signed up for the Massachusetts Green Program since it started in July of 2008.   I don’t think they promoted it nearly enough.   And now, the utility has applied for a rate increase to the Massachusetts Department of Public Utilities citing “rapidly changing energy prices”.  If approved, the rate hike will kick in next month.  Those getting 50% of their electricity from wind will pay an additional 1.52 cents more per kilowatt hour of power, or roughly $7.50.   Those getting all of their electricity from wind will pay 3.04 cents more….roughly $15 per month.   It’s not a deal breaker, as far as I’m concerned, but it may discourage thousands from enrolling in the program in the future.   That’s too bad, since I believe this country has to shift to multiple forms of alternative energy to meet our needs in the future and make us less dependent on foreign oil.   Check with your utility company and see if you can make the switch.  Long term, it’s the right thing to do….like paying more for fresh fruit vs. getting it in cans.   Until next time, here’s to good planning!

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By Rosemary White, March 5, 2010 6:09 am

I get weekly emails from the city where I live, Cambridge, MA.  It’s a great way to keep up on what’s going on and what’s coming up.   Part of last week’s email told of the nearly $6.5 million Cambridge has received from the American Recovery and Reinvestment Act (the stimulus).   I hear plenty of people complaining about the cost of the stimulus program, so was curious where the dough was going.   Here’s some of what I found:

  *   $1,224,854 to improve programs for children with disabilities (and their families)

  *   $380,199 to support and expand the teaching and learning for students at schools in high poverty areas, most at risk of failing to meet the state’s academic achievement standards

  *   $674,070 to improve streets and sidewalks

  *   $162,000 for job training programs

  *  $995,000 for homeless prevention programs.  This consists of financial assistance, housing relocation and stabilization services

  *   $759,600 for a municipal building energy efficiency program

  *   $100,000 for an energy efficiency program an 1-4 unit multi-family homes

Real money affecting real people.   If you live in Massachusetts, check out how much of the stimulus money is coming to your community.  Here’s the link: http://www.mass.gov/?pageID=stimhomepage&L=1&L0=Home&sid=Fstim .   Until next week, here’s to good government and good planning!

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By Rosemary White, March 2, 2010 5:51 am

I love Warren Buffet.   He strikes me as the closest thing we’ve got to Harry Truman, the ultimate straight shooter.  Buffett has been the chairman of Berkshire Hathaway since 1965 and has had an annual salary of $100,000 for the last 25 years.  In a letter last Saturday to his shareholders, he was very critical of those “too big to fail” banks.  According to an article in Fortune Magazine, Buffett said there’s one easy way to fix the problems with these banks:  make sure the high-level execs have some skin in the game by putting their bank accounts on the line.  What a great idea!

Fortune quotes from Buffett’s letter: “It’s the behavior of these CEO’s and directors that needs to be changed.  They have long benefitted from oversized financial carrots; some meaningful sticks now need to be employed as well.  The CEO’s and directors have largely gone unscathed.”  Case in point: Neither of the former executives of Bear Stearns or Lehman Brothers had very much of their wealth tied to their former respective firms as they ran their companies into the ground.   It was the smaller shareholders (and ultimately the American taxpayers) who bore the brunt of the huge losses.

The Obama Administration has proposed separating the banks’ proprietary trading activities from their federally subsidized deposit-gathering and lending.  Others have proposed requiring the banks to hike the amount of money they have on hand to guard against losses.  So far, there aren’t enough votes in Congress to get anything done.  I like Warren’s way.  Until next time, here’s to good planning!

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By Rosemary White, February 26, 2010 6:39 am

I’m sure none of my readers fudge on their income taxes, but maybe you know someone else who plays fast and loose with the IRS rules.  The agency’s Oversight Board conducts an annual survey and when they asked about cheating last year, 13 percent indicated it was OK.  That’s up 4% from 2008.  Four percent indicated they cheat on their taxes “as much as possible”.   Yikes!  Of course, the vast majority of Americans are still following the straight and narrow.

I suppose the temptation might be there for some people, given how bad the economy has been for the last couple of years.   But why risk it?  I was catching up with a friend the other day who told me he’s been audited the last three years in a row.  Nothing really was wrong.   The IRS was just focusing on particular professions.  And the number of audits was at its highest level last year in decades.  Who said the Obama Administration isn’t all about law and order?

And what’s popular with the cheaters?  The Making Work Pay Tax Credit is one….inflating charitable contributions is always popular…..and claiming personal expenses for business.  It’s better to keep every receipt so you claim deductions you’re entitled to.  That way, when you get your tax return ready, you won’t be sweating anything.   If you suspect someone of cheating on their taxes, drop a dime:  800-829-0433.  Good luck getting your taxes done!  Until next time, here’s to good planning!

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By Rosemary White, February 23, 2010 4:24 am

I’m grateful to have one of the best jobs in the world:  helping people sort out and plan their financial futures.  Heaven knows the financial landscape is no piece of cake and has only gotten more complicated since I began my career back in 1994.  (Wasn’t I in my 20’s?   No, wait, I forgot about my previous careers as a broadcast journalist and union business agent in the entertainment industry.)  Anyway, as I gear up for another busy IRA contribution season, it’s a privilege to announce that Strong Financial Group has been named a 2010 Five Star Wealth Manager in the areas of financial planning, investments, estate planning and long term care.   The recognition was in February’s Boston Magazine.  Of the nearly 15,000 wealth managers in the Boston area, only 4% (536) made this year’s list.

The survey was conducted by Crescendo Business Services who contracted with Quantitative Market Intelligence (QMI), an independent third party research firm.  Just over 200,000 high net worth individuals were asked (by mail or phone) to name and evaluate three wealth managers that they personally knew.  The evaluations were in nine areas:  (i) customer service, (ii) integrity, (iii) knowledge/expertise, (iv) communication, (v) value for fee charged, (vi) whether the wealth manager meets client financial objectives, (vii) post sale service, (viii) quality of recommendations and (ix) overall satisfaction. 

I’m honored to be listed with so many of my fine colleagues.  We all work hard to help our clients reach their financial goals despite obstacles that frequently seem to appear. I will work to continue earning that trust in the future.   Until next time, here’s to good planning!

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By Rosemary White, February 19, 2010 9:20 am

I’ve been dying to update you on the Move Your Money campaign….the national movement that encourages consumers to leave those “too big to fail” banks and take their business to credit unions and community banks.   This idea has caught on like wild fire and I’m reading about the most amazing examples of people who are fed up.  I love this stuff:

  *  New Mexico’s House of Representatives voted unanimously last week to move the state’s nearly $5 billion from Bank of America and Wells Fargo to community banks in the state.  The state Senate is expected to pass a similar measure soon

  *  The Oregon legislature is considering a similar move.  Could that start an avalanche of legislatures on the “move”?   The 50 states reportedly have a total of $230 billion in the big banks

  *  New York Mayor Michael Bloomberg announced that the City is going to move $25 million to neighborhood credit unions.  That doesn’t sound like much, but it’s a start.  After all, NYC is where so many of the big Wall Street firms are located

  *  John Tuttle put stickers on 60 ATM machines in the Seattle area last week.   His web site, http://www.CreditCardRevolt.com calls for a cap on credit cards and some other reforms.  He says it’s time Americans stood up to the big bankers

  *  An organization encouraging young people to move their money to credit unions (http://www.YoungFreehq.com ) wants folks to make music videos for their contest.   The words have to be to the song ““Lookin’ Like A Fool With Your Money In A Bank”.  The winner get a new ipad

  *  Social media has been a huge booster of the Move Your Money campaign.  Groups have sprouted on Facebook, Twitter and there are videos on YouTube.  Have you moved your money?

I’d be interested in your thoughts and movements on this topic.   Until next time, here’s to good planning!

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By Rosemary White, February 16, 2010 6:56 am

February 22, 2010 is when the new credit card law takes effect (yes, that’s next Monday!).  Congress  passed the law last year and, sadly, gave the credit card companies ample time to prepare.  Consequently, I’m sure many of you have gotten notices with your statement that the interest rate is going up, the billing cycle is changing or now there’s going to be an annual fee big enough to choke a horse.  Here’s a few things to consider, suggested by Consumers Union, until then:

  *   If you’re thinking about getting a new credit card, wait until after the 22^nd because new accounts are protected from interest rate increases for the first year.  There may be some good deals out there

*  Have a backup card or two in case one of your card issuers lowers your credit limit or closes your account (without notice) in the next week.  This might be wise in case you need plastic for an emergency

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By Rosemary White, February 12, 2010 6:44 am

Here’s something I bet you’ve never thought about:  how would your family or business partners access your online address book and emails if you die suddenly?  So much of our lives have moved online, it’s an integral part of who we are and how we manage our businesses.  And, if heirs have to sell a business after a death, not having access to all a company’s information may affect the sales price or even the sale itself.  So, what to do to retrieve our online identity?

There are companies out there that will keep track of all this digital information, for a price, of course.  Some web sites like www.MyLastEmail.com will store email messages and send them out after a client dies.  Then there’s www.BCelebrated.com that will allow you to write your own autobiographical memorial (is that a little creepy?).   One that caught my eye is www.LegacyLocker.com that works like a digital safe deposit box. You can store all your passwords with them (which Legacy Locker folks cannot see).  That information will get transferred to your heirs or business associate when you die.

Another online service will be debuting next month that will add additional services:  deactivating accounts and posting a final update on Facebook and Twitter.  I can see the posting now:  “I’m sorry to report that I won’t be able to keep in touch in the future…..”.   So, wherever there is a digital question, there is an online solution.  There are no details too small in estate planning.  Check it out.  Until next time, here’s to good planning!

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By Rosemary White, February 9, 2010 8:30 am

A Maryland nurse came out on top last month in her battle with the Internal Revenue Service.   In the process, she may have helped thousands of other students who are getting their M.B.A. degree.  

Lori Singleton-Clarke started working toward her Masters of Business Administration through an online degree program in 2005.   When she filed her 2006 federal tax return, her tax preparer told her she qualified to take her $14,787 tuition expense as a deduction.   When the IRS audited her return in 2006, they disallowed the deduction.   Lori (who keeps and files every receipt) kept rereading Publication 970 (Tax Benefits for Education) and continued to believe her deduction was justified.   She couldn’t afford to hire an attorney so she handled the many, many letters and meetings with IRS representatives, digging in her heels as the process continued.  Ultimately, she took her case to the U.S. Tax Court.   Since her case was before the Tax Court, she didn’t have to pay the contested amount before going to trial.

Ms. Singleton-Clarke’s skills as a nurse came in handy.  Used to being brushed off (or even ignored) by physicians and surgeons, she was not intimidated when she had her day before Judge Stanley Goldberg in the Tax Court, late in 2008.  She sat at one table…..the IRS’s two attorneys and several paralegals were at the other.  (If I ever spend time in a hospital, I want a nurse like Lori!)  Judge Goldberg later praised her preparation and presentation skills in an interview after he issued his ruling.  This case will provide a roadmap for others earning their MBA, and, perhaps, other professional degrees.  Good work!  Until next time, here’s to good planning!

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By Rosemary White, February 5, 2010 11:01 am

I’ve got some more ideas to get you thinking about getting your financial house in order (or tweaking it if you’ve done some stuff).   If you missed my first installment, scroll down and see Tuesday’s posting.   So, what about:

   *  Keep your important documents where you can access them.  While I keep my tax preparation records for seven years, I do keep every income tax return I’ve ever filed in my life (yes….there are a lot of them).  In case there’s a question about my Social Security contributions, I’ll have the answer.   My life, disability and long term care insurance policies are all in the portable safe.  The will is there, too.   It’ll be the first thing I grab if there’s a fire

   *  Reduce your debt.  The credit bureau Experian says the average American carried about $17,000 in debt, other than a mortgage.  Much of it is from credit cards.   List your credit cards with the highest interest rate on top and make a consistent effort to pay extra toward the balance.  This kind of debt can choke you, especially if you have an emergency or lose your job

   *  Check your credit score.   You should be entitled to one free credit report a year from each of the major credit bureaus (at least that’s the law in Massachusetts).   Take advantage of this and make sure there’s nothing there that doesn’t belong to you.   It happens all the time