Comments (2)

By Rosemary White, July 30, 2010 4:54 am

I just saw a report from Fairmark Press about a policy that’s been instituted by Google, THE online search engine.  Now, they aren’t the first company to do this, but they’re certainly the most well-known.  Thousands of companies offer the same health benefits to their gay and lesbian couples that they provide for their heterosexual married employees.  But the non-het folks get taxed on the value of the partner/spouse’s premium.  It’s called imputed income.  Google recently announced that it’ll cover the added cost of the imputed income…not in the employee’s paycheck, but rather in a separate check.  Google honchos view the added tax as being discriminatory.  Since health insurance generally gets more expensive as one ages, gay Baby Boomers nearing retirement are shelling out a pretty penny for the additional tax…something their heterosexual co-workers don’t have to bother with. 

Google is doing this to continue attracting the best talent.  And it does make it a tad more expensive for them to hire lesbian and gay workers.  That’s a luxury a smaller company may not be able to afford.  It would be much more efficient to eliminate the Defense of Marriage Act and change the tax code to get rid of imputed income. But, until that happens, Google’s doing the right thing.  It’s progress.  Until next time, here’s to good planning!

Comments (1)

By Rosemary White, July 27, 2010 9:02 am

The average American household pays $107 a month for cell phone service.  Multiple phones, voice and data plans.  It’s always so easy to pay $15 a month for this and $30 a month for that.  Pretty soon, you’re shelling out a pretty good amount of dough.  I’ve always been pretty stingy about this sort of thing after the necessities like my insurance and investments are taken out of my checking accounts.  And so it is, also, with my cell phone.  Not usually one to have the very latest within hours of an unveiling, I like to wait until the bugs have been worked out. I’m proud to say that I still pay only $39.95 a month for 1,500 anytime minutes for cell service.  Not bad, eh?  I did, however, just add unlimited internet access last week for an additional $10.

But cell phones (smart phones, whatever) are becoming a huge money pit, as I bet you’ve noticed.  As more people use their phone to check their email, their favorite web site or watch a TV show, the costs associated with such pleasures are increasing.  Data is the future and the future will cost more.  Providers seem to have a knack for offering either too little or too much.  Here’s some ideas to keep your costs under control:

  *  If your carrier has a Friends and Family plan, make use of it.  You can list both friend, family and most called businesses

  *  Don’t pay for stuff you don’t use.  Do you really need phone insurance? 

  *  Don’t pay for directory assistance.  Try 800-GOOG-411 or 800-FREE-411

  *  Check your minute usage since January and if you’ve gone over, see what the next level of service vs. what you have paid for additional minutes under your current plan

  *  No need to be rushing for a smart phone, especially if you would have to change carriers and pay a whopping termination fee

  *  Save the TV shows for the TV.  Downloading a program uses a huge amount of data

And don’t forget to review your monthly bills.   Hope this helps.   Until next time, here’s to good planning!

Comments (2)

By Rosemary White, July 23, 2010 3:36 am

I’ve become a fan of the online group purchasing groups.  So far, I’m getting emails from four:  www.Groupon.com, www.Eversave.com, www.BuyWithMe.com and www.LivingSocial.com .   I’ve used one to get a terrific discount on barbeque at a great joint near me and another for a couple of stone massage treatments (or as a friend in the Midwest says, “rocks on your back”). 

It’s just another example of how the internet has changed everything.  On these sites, merchants decide the minimum number of customers they’re willing to offer a discount to.  If enough people want the product or service and enter in their credit card information online, then everybody gets the deal.  A great discount on something you want, at a price you may or may not pay again and the merchant has a throng of new customers in the store or calling to book their service.  What’s not to like.   I predict these sites will continue to thrive long after the economy recovers.  Half price on a cruise around Boston Harbor.  60% off for a massage.  Save $50 on a dinner at a fancy restaurant you’ve been wanting to try for years.   Everybody’s doing their part to help the economy.

Most of these online groups are operating in a number of different cities around the country.  Another reason to live in a metropolitan area?  Anyway, check out the sites.  Until next time, happy shopping and here’s to good planning!

Comments (2)

By Rosemary White, July 20, 2010 6:04 am

President Obama is scheduled to sign the new Wall Street Reform and Consumer Protection Act this week.   Some in Congress have already started yapping about repealing it.  Good luck to them.  It’s not as tough as some of us would have liked, but, in politics, you gotta do the best you can (hello, you on the left).  So, if you’re a consumer, here’s a few highlights that will help protect you down the road:

• Debit/Credit Cards – merchants will be allowed to offer a discount to customers who pay with debit cards that carry lower transaction fees, something that’s never been possible.  The Federal Reserve will also have the authority to cap the fees that Visa and Mastercard charge for processing transactions, currently averaging between 1.6% – 2%.  In Europe, these fees are as low as 0.2% so that should give the Fed some leverage, thereby helping to save struggling merchants some dough (and you, too, hopefully)
• Consumer Financial Protection Bureau – part of the Federal Reserve, it will have sweeping powers to regulate lending from the biggest banks down to pawn shops (but not car dealers).   The big question right now is who will head this agency.  Like many, I’m pulling for Elizabeth Warren, a professor at Harvard Law School.  Here’s her explanation last year why a Consumer Protection Agency was needed:  http://www.youtube.com/watch?v=lYd08e5Cjvs
• Investor Advocate – the new law will create an Investor Advocate within the Securities and Exchange Commission (SEC) that will represent the interests of retail investors
• Investor Disclosure – there will be increased disclosures required for retail investors before they invest in financial products
• Office of Financial Literacy – programs will be developed to teach Americans about savings, loans, fees and liens.  This will establish standards for financial advice programs and help Americans from becoming victims of scams
• Free Credit Scores – you’ll still be able to get a free peek at your credit histories annually from the three credit bureaus.  But now, the definition of “adverse action” is expanded to include not only denial of a loan or credit, but also being charged a higher interest rate than the one offered those with excellent credit
• Mortgages – no more easy mortgages or pre-payment penalties.  Full documentation will be required by lenders.  No more incentives to mortgage brokers who then push loans with unfavorable terms on borrowers

 I’ll keep you updated as things start kicking in.   Until next time, here’s to good planning!

Comments (1)

By Rosemary White, July 16, 2010 5:24 am

I first heard about it during the 6:00 news last Thursday.  The TV was playing in the background while I was reading so my initial reaction was, “ What did she say?”  I had to back it up and play it again before putting the newspaper down.  Thank God for TiVo!

The federal Defense of Marriage Act (DOMA) got its first boot in the backside last week in a federal district court in Boston.  There were two suits against DOMA in the courts here in Massachusetts:  one filed by the Gay and Lesbian Advocates and Defenders; the other brought by the MA Attorney General Martha Coakley.  DOMA was passed by the 1996 Congress and signed into law by former President Bill Clinton.  It defines marriage as a union between one man and one woman.  It codified in stone the denial of more than 1,100 federal benefits to lesbian and gay couples.  Big ticket items like Social Security spousal/survivor benefits, health benefits for federal employees and the ability to file federal taxes as a married couple.  Gay marriage is currently legal in five states and the District of Columbia. 

In making his ruling, Judge Joseph Tauro (a Nixon appointee) wrote:  “…DOMA marks the first time the federal government has ever attempted to legislatively mandate a uniform federal definition of marriage…Congress undertook this classification for the one purpose that lies entirely outside of legislative bounds, to disadvantage a group of which it disapproves.  And such a classification, the Constitution clearly will not permit.”  So, at least for now, the states continue to have the exclusive province to regulate marriage.  Massachusetts has shown, yet again, that we believe in the Constitution and the foundation on which it stands.  The Pilgrims…Plymouth Rock.  Politics sure makes things very interesting, however.  When it comes to marriage, conservatives want the Feds to run the show; immigration, they argue, should be left up to the states.  They think we need to slash government spending, unless there’s a disaster like a hurricane or the BP oil spill.  It’s conservatism when it’s convenient.

There’s the Proposition 8 lawsuit out in California which may produce a ruling soon.  I wonder if Judge Tauro had that in the back of his mind while he was writing his decision.  Are judges competitive?  Hmmmmm.  Anyway, we’ll see how the Constitution is viewed out West.  Whether they agree or not, I’m sure this issue is headed for the U.S. Supreme Court.  Many of us will be on the edge of our seats until it’s resolved.  Until next time, here’s to good planning!

Comments (0)

By Rosemary White, July 13, 2010 10:35 am

Like many others out there, you probably got your second quarter investment statements in the last week.  You had to sit down.  Thoughts of March 2, 2009 rushed through your mind when the Dow Jones Industrial Average ended the day at 6,763.29.  Are we headed for a double-dip recession like the newspapers and commentators are saying?  But what about the Dow’s comeback…when it topped off at 11,005.97 on April 4, 2010?  Maybe those columnists and commentators don’t have a clue what’s going to happen.  All we really know is what’s happened in the past and how markets have responded to economic conditions at the time.  There have been comparisons to a long recession that started in 1937, but our economy is so much larger and different than it was 73 years ago.

It’s obvious to me the federal government’s stimulus programs have helped start the engine on the post-recession recovery.  There’s still a huge chunk of that money to be spent, although politics now seems to be directing this bus since we’re coming up on mid-term elections in four months.  High deficits and unemployment have given conservatives their platform.  Others worry that slashing spending now will choke any hopes of a recovery (which might help some politically).   Housing has slowed, orders for durable goods and automobiles are down and retail sales have dropped.  Things are better than a year ago, however.  Everyone’s keeping an eye on the Asian and European economies.  Some American manufacturers are pulling out of China, because Chinese workers are starting to demand higher wages.  That may increase our employment numbers if companies bring those jobs back home.  In the meantime, many U.S. corporations will be reporting their earnings this week which should provide some good news.  It’s all a huge puzzle and we’re just going to have to wait to see how things shake out.

So, what can investors do as the volatility continues?  Keep doing what you’ve been doing all along:  save regularly, reduce spending and don’t panic.  When the markets swoon, lower share prices are your friend.  It’s like shopping at a consignment store:  quality at a low price.  And if you noticed that the Dow was up 512 points between July 6-9, then you may have already forgotten about your second quarter statement.  Keep the faith.   Until next time, here’s to good planning!

Comments (1)

By Rosemary White, July 9, 2010 12:13 pm

I wanted to get this out to everyone before all the summer vacations kick in.  Did you know the airlines raked in $769 million in baggage fees in the first quarter of 2010?  (Why aren’t the Tea Partiers complaining?) And why pay airline baggage fees when you travel in the U.S. if there’s a competitively-priced alternative?  If only there were consignment shops inside the terminal, I’d say “to hell with the luggage….what do you have in my size and do you have it in blue?”  But, alas, I’m sure the overhead for a pre-owned clothing store would be prohibitive.    But I digress.   There is an alternative to those baggage fees.  And it comes from a company  we all know: UPS.  Last week, United Parcel Service launched their new “luggage box”, so that travelers can ship their luggage ahead of time rather than check them at the airport. 

The boxes come in two sizes, shaped like standard suitcases, and they’re available at some of the UPS store locations around the country (like the one around the corner from me).  Made from recyclable corrugate, they’ve got sturdy handles, and you can also get the return shipping label for their trip back home.  Unlike an airline, you’ll be able to get email updates on your luggage’s location.  If you’ve ever waited at the baggage area and then discovered your clothes made a trip to Phoenix, you know how annoying that can be.  You will have to plan ahead, of course, but then I’m a big fan of planning.   So, why not check it out if you’re curious.  That way you’ll know if this is a viable option for you before your next trip.  Let me know how it goes.  Until next time, here’s to good planning!

Comments (0)

By Rosemary White, July 6, 2010 9:03 am

I hope you and yours had a great July 4^th holiday!  I was able to take last Friday off in order to really have a chance to relax.  (OK…I cleaned up my office a bit to get ready for a very busy summer.)  If you spent time with members of your family, you may find this following blurb pretty funny.  Actually, I thought it best to tell you about it until after all the family cookouts.  Kids today are really sharp and seem to learn things a lot earlier than we did.  Take Dana Soderberg, now a teacher, who sued her father to force him to pay for her senior year of college at Southern Connecticut State University. 

Seems that Dana’s parents divorced in 2004 and the husband, Howard, agreed to pay the college costs of their three kids.  Dana, intuitive in sensing her dad’s potential for sporadic payments, was somehow able to get him to sign a contract pledging to cover her college costs.  This kid should have gone to law school.  Anyway, everything was going swimmingly until she was ready to start her senior year in September of 2007.  Because her dad was a developer, his business was probably circling the drain by then, given what was going on the housing market.  Dana was able to get a $20,000 loan to continue school, although she did have to drop some classes and cut back for lack of funds.  During the trial, Howard argued that Dana hadn’t tried hard enough to get student loans and hadn’t been a full-time student.  Well, yeah.

Judge William L. Hadden, Jr. ruled in favor of Dana, and ordered Howard to pay her $47,000 for the loan, interest, attorney fees and missed car insurance payments.  I suspect he’ll find a way to pay this obligation.  Hats off to Dana Soderberg!  Until next week, here’s to good planning!

Comments (0)

By Rosemary White, July 2, 2010 6:09 am

I really can’t keep up with all the changes going on out there in the world of finances (I know…it’s my job…).  In the last several months, there have been “peer-to-peer payment services” popping up all around the country.  And, if you can believe this, banks are in the forefront of this.  Basically, a business owner, rather than write a check for a good or service, is now able to transfer money to a customer’s account.  All you need is a mobile phone number and an email address.  The transaction occurs directly from one bank to another.  Why didn’t I think of this?

Five years ago, this probably wouldn’t have been possible.  But as consumers and businesses become more comfortable paying bills online or making purchases online, I guess this is just the natural next step.  Javelin Research reports that nearly 44% (38 million) of the 86 million households online made at least one online P2P fund transfer in 2009.  That’s up 27% from 2008.  This is fast, direct and safe.  What’s not to love about it? 

If a bank offers the P2P system, a business owner can login to his/her bank account, input an email address and send a message to the recipient before transferring the money.  The transfer can be done online or via a browser-enabled mobile phone.  The recipient then goes online to claim the money which is automatically deposited into his/her account usually within 24 hours.  So, no more writing checks, buying stamps, dropping in the P. O. box and waiting for it to clear.  If your cash flow tends to be tight, this isn’t for the faint of heart.  The dough moves quickly, so just make sure you’ve got enough to cover the payment in your bank account.  Until next time, have a great July 4th holiday and here’s to good planning!

Comments (0)

By Rosemary White, June 29, 2010 8:24 am

Being late, of course, isn’t a good thing when it comes to your credit report.  If you’re tardy too often, you may find yourself not getting that car loan or nice apartment.  But you will get a little help from your friends at the Federal Reserve.  Last week, the Fed approved a cap on those late fees.  Effective August 22, late fees generally can’t be over $25 (unless you are habitually late and then all bets are off).  Also, if your minimum payment is, say, $20, your late fee can’t be more than $20 also.  There are also new rules coming for the use of debit cards and all the past high fees if insufficient funds generates a high penalty.  Finally, a bit of relief for consumers who are continuing to have a tough time in this economy. 

Also on the chopping block:  multiple penalty fees based on a single late payment or other account violation.  This will put an end to the $39 fee for every day an account is in arrears.  Have you noticed that your credit card statement is easier to read…and understand?  That’s great progress.  It’s always better to use cash and just keep that plastic in your wallet.  Until next time, here’s to good planning!