MainStreet.com

New Wrinkle to Loan Modification Plans

Brian O'Connell — Tue, 09 Feb 2010 13:45:40 -0500

The federal government, anxious to quicken the pace of home loan modifications, is set to roll out some new rules on loan modification applications — and you won’t be able to get a new home loan deal unless you abide by them.

The rules stem from the government’s Home Affordable Modification Program (HAMP), which has set home loan trial modifications in motion for about 900,000 Americans, according to government statistics. Of those Americans, 110,000 “graduated” from the three-month trial programs to permanent modifications by Dec. 31. The government says that the average loan modification customer saves $500 per month on his or her mortgage.

Those numbers aside, Uncle Sam thinks he can do better. Up to 4 million homeowner loans are deemed “troubled loans” by the government — and probably a lot more as the 700 million or so Americans who have lost their jobs during the Great Recession struggle to make their mortgage payments with no income. Fresh economic data shows that 10% of all U.S. homeowners are delinquent on their mortgage payments, with up to 13 million new foreclosures expected by 2015, a congressional study says.

The end game, according to a statement released on Jan. 28 by the Treasury and the Department of Housing and Urban Development (HUD), is to move more loan modification candidates from the trial phase to permanent adjusted-loan deals. That would open the pipeline for even more loan modification candidates, the Treasury estimates.

The federal government aims to do that faster by implementing some new changes. At the top of that list is a requirement for homeowners to provide key financial documents right from the start, including pay stubs and tax returns. Currently those documents aren’t required at the beginning of a loan modification deal. In many cases, all a homeowner had to do was declare his or her income to get the loan modification deal rolling. But, sooner or later, the bank would need the documents, and the unstructured process would often lead to delays and even rejections as paperwork was late, misfiled or undelivered.

The new rules call for loan modification candidates to adhere to the changes starting June 1.

What Loan Modification Consumers Must File

Two recent pay stubs.
A recent tax form, preferably delivered online.
A formal request for help with their home loan.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Who's Hiring Part-Time: WIS International, Blockbuster and Panera Bread

Bobbi Dempsey — Tue, 09 Feb 2010 13:04:03 -0500

Looking for part-time work? You’re in luck. Here are three companies with part-time openings available right now.

WIS International

What They Do: Provider of inventory counting services for businesses.

Types of Part-Time Position(s) Available: Inventory associates, team drivers.

Desired Hours Per Week: Varies; there is usually some flexibility in schedules, but much of the work needs to be done early in the morning or on weekends.

Starting Pay: $8 to $10 an hour.

Benefits: None.

Requirements: Good math skills. Inventory counts are performed at clients' businesses, so local travel is involved. In some cases, overnight travel may be involved. They often recruit associates to serve as team drivers who will transport teams to job locations using company vans. These drivers earn slightly more than the regular associate rate, and must be at least 25 years old and have a clean driving record.

The Inside Scoop: They like "early risers" who have a positive attitude and lots of energy. Many of their managers, IT staff or other employers started their careers with WIS as hourly inventory associates.

Apply here.

Next Page: Blockbuster

Blockbuster (Stock Quote: BBI)

What They Do: Large national chain of video rental stores.

Types of Part-Time Position(s) Available: Customer service.

Desired Hours Per Week: At least 15-20 hours per week; they prefer applicants with the flexibility to work different schedules as needed.

Starting Pay: About $8 to $9 an hour.

Benefits: Free merchandise rentals.

Requirements: Must have high school diploma. Prior retail experience preferred. Good customer service and communication skills are a must.

The Inside Scoop: Knowledge of movies and/or video games is very helpful.

Apply here.

Next Page: Panera Bread

Panera Bread

What They Do: Chain of bakeries/cafes.

Types of Part-Time Position(s) Available: Cashiers and restaurant team members.

Desired Hours Per Week: Flexible.

Starting Pay: About $8 an hour.

Benefits: Medical/dental (to workers who meet eligibility requirements); merchandise discounts.

Requirements: Must be at least 16 years old. Prior retail, food service or customer service experience preferred.

The Inside Scoop: The company's restaurants don't sell alcohol and promote a "grease-free environment."

Apply here.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

CD Rate Trends This Week: Feb. 9

Brian O'Connell — Tue, 09 Feb 2010 10:57:40 -0500

As far as long-term trends go, it’s no coincidence that as U.S. debt levels rise, bank certification of deposit rates are in decline.

Believe it or not, things could actually change, even if our nation’s debt picture gets worse.

Here’s what’s up. Rumors are floating up and down the I-95 corridor from Pennsylvania Avenue to Wall Street that the U.S. debt could be downgraded from its current AAA level to an AA rating. Right now, U.S. debt levels sit at $12.4 trillion, or $40,260 for every American (child or adult) and that’s just for starters. Left unchecked, that number will almost double by 2020.

Of course, you can only put so much stock in rumors. But what’s fueling the whispers among our political and financial classes is more than just a rumor — it’s a prediction by Moody’s Investors Service (Stock Quote: MCO), the well-respected credit ratings giant. Moody’s came out last week with a warning that the U.S. government’s bond rating was in jeopardy unless significant steps were taken to cut the deficit.

A credit downgrade would be terrible news for the U.S. economy. Financial experts say that a downgraded U.S. debt rating would lead to a triple-threat in economic trouble for America, including higher interest rates, rising inflation and a massive outflow of investment money leaving the U.S.

Granted, the government doesn’t seem worried about the prospect of its credit rating being slashed. The White House trotted Treasury Secretary Tim Geithner out on the Sunday morning talk shows last weekend, where he told ABC News that there was no way the U.S. could lose its AAA rating.

Of course, these are the same guys who promised an 8% unemployment rate if taxpayers agreed to a $787 billion “stimulus” package, and that hasn’t exactly panned out. In addition, the U.S. debt level already sits at 98% of domestic gross domestic product. As a combined Harvard University/University of Maryland economic study estimates, debt ratios above 90% of GDP cause GDP rates to fall by 1% — and average GDP growth falls even further.

For bank deposit investors, a downgraded U.S. economy would likely lead to higher interest rates, as lenders, egged on by the Federal Reserve, hiked rates to keep up with the pace of likely-aggressive inflation. But consumer goods and services would likely cost a lot more, and with money flowing out of the U.S., jobs, raises and bonuses all would decline, leading to further economic deterioration.

Who knows if a credit rating downgrade will ever come to pass? But if it did, it would certainly fall under the “be careful what you wish for” category for bank CD investors.

In the short term, CD rates were in a slight decline last week, greased by a nervous U.S. stock market where talk of a “rebound recession” is rampant. Here is the national CD rate picture for the first week of February, as measured by the BankingMyWay Weekly CD Rate Tracker:

Description This Week Last Week

60-Month CD 2.125% 2.136%

48-Month CD 1.841% 1.852%

24-Month CD 1.287% 1.302%

12-Month CD 0.844% 0.857%

Six-Month CD 0.569% 0.573%

Three-Month CD 0.37% 0.381%

Consequently, decent CD rates are increasingly hard to come by. To level the playing field, visit the BankingMyWay CD Rate Search Tracker. Right now, it’s your best shot at getting a good CD rate.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

The Rise of Third-Hand Smoke

Seth Fiegerman — Tue, 09 Feb 2010 10:40:07 -0500

It’s bad enough that people can get cancer and other ailments just by being in proximity to someone smoking a cigarette. Now, researchers argue that even after you put the cigarette out, the smoke follows you and could impact those around you.

Smoking cigarettes just got more complicated.

This phenomenon has been dubbed third-hand smoke and was first publicized early last year by doctors at the MassGeneral hospital in Boston. Third-hand smoke refers to the tobacco toxins that stick to smokers, getting on their clothes and any furniture with which they come in contact.

A New York Times article last year reporting on the new findings described third-hand smoke as “what one smells when a smoker gets in an elevator after going outside for a cigarette… or in a hotel room where people were smoking.” As the lead researcher from the study told the Times, “Your nose isn’t lying. The stuff is so toxic that your brain is telling you: ’Get away.’”

Many have written off the claims in the study as far-fetched fear mongering. “The genius of the study is that it tries to stir up alarm about thirdhand smoke without bothering to show that such trace levels of toxins and carcinogens cause any measurable harm to children (or to anyone else),” Jacob Sullum wrote on Reason.com.

However, now, a little more than a year later, a new study has been released highlighting just how dangerous third-hand smoke may be.

According to Bloomberg, the new study “found that when the residue from tobacco smoke settled on indoor surfaces, it mixed with indoor air pollutants to form tobacco-specific nitrosamines, or TSNAs, which are potent cancer-causing substances found in unburned tobacco and tobacco smoke.”

Yes, there’s some jargon in there, but the punch line is that when smokers carry tobacco toxins with them into their house, it sticks around on their furniture and other surfaces and can actually mix with “indoor air chemicals” like nitrous acid (which is emitted by many household appliances). This mix could create a dangerous cocktail, especially for young children, the study says.

The authors of this study argue that trying to ventilate the room by opening a window is not enough to combat third-hand smoke. “Replace nicotine-laden furniture, carpets and curtains. Nicotine absorbs into these materials. The stuff that’s imbedded can continue to come to the surface,” one of the authors urged.

That may sound a bit extreme, especially given that third-hand smoke has not been linked to cancer yet in the way that second-hand smoke has, but are you smokers who have kids willing to take the risk?

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Obama's Health Care Summit: All Talk?

The Associated Press — Tue, 09 Feb 2010 10:27:36 -0500

By Ricardo Alonso-Zaldivar, Associated Press Writer

WASHINGTON (AP) — Could this turn into something more than political theater?

President Barack Obama's televised dialogue with Republican lawmakers on health care, promised for later this month, has the makings of an entertaining exchange. But the differences between the basic Democratic and GOP ideas are stark — and the two sides have increasingly hardened their positions in this election year.

Yet, in a story with more twists than a soap opera, Obama's invitation to congressional leaders of both parties to attend a Feb. 25 meeting can't be dismissed as a mere diversion. Although many Americans have doubts about the Democrats' sweeping plans to cover the uninsured, Republicans can't afford to be perceived as oblivious to the health care insecurities of middle-class families.

"My expectations? Probably below 50%, but not zero," said Rep. Gerry Connolly, D-Va., a moderate who serves as president of the Democratic freshman class. "At some point, the public is going to demand that Republicans participate like mature adults, and not just say 'no' to everything."

It's the Democrats' big-government approach — not Republicans — that's the problem, insisted Rep. Dave Camp, R-Mich., author of the House GOP bill. "The president has got to show that he has heard what the American people are saying. He's got to make clear we are not going to start off with the current bill."

But where to start?

— Democrats want an upfront commitment to cover most of the nearly 50 million uninsured Americans. Republicans prefer first taking steps to cut costs, then revisiting the issue of full coverage over time.

— Democrats would raise taxes to provide government subsidies for people who can't afford to buy health insurance. Republicans say now is not the time to increase taxes.

— Both sides want to bar insurance companies from turning down people with health problems, but only Democrats propose requiring most people to get coverage — a necessary first step, according to most experts.

To illustrate the gap, the House GOP bill would cover 3 million uninsured people, the House Democratic version 36 million.

"That's quite a gulf," said Rep. Steny Hoyer, D-Md., the No. 2 Democrat in the House. "And if that's where Republicans want to stay, I don't think it's going to be perceived as much progress by the 33 million who would be left out."

After months of seeing Obama try to muscle legislation through with only Democratic votes, Republicans are wary of his new overture. The election of Republican Scott Brown in Massachusetts changed the balance of power in the Senate, forcing the president to recalibrate.

"This has the feel of a campaign event," said economist Douglas Holtz-Eakin, a top adviser to 2008 GOP presidential candidate John McCain. "The time to sit down with Republicans was a year ago."

The House and Senate are partisan institutions by design, Holtz-Eakin said. Divided into majority and minority, they sharpen differences.

Only Obama could have guaranteed a bipartisan health care bill. "You needed the White House to spend political capital telling the liberal base in the House they weren't going to get everything they wanted," he said. "They weren't able to do that."

The way the health care summit was announced struck some Republicans as suspect. Democrats say the idea came from the White House, and was first broached last Thursday when Obama met Speaker Nancy Pelosi, D-Calif., Senate Majority Leader Harry Reid, D-Nev., and Hoyer, to discuss the 2010 legislative agenda.

Republicans say they were notified by the White House on Sunday, a couple of hours before a CBS News interview in which Obama floated the proposal. Usually, White House schedulers call congressional leaders well in advance of major meetings.

Democrats say they want to resolve remaining differences between the House and Senate versions of their own legislation in advance of the meeting. That may mean Obama wants to emphasize contrasts with Republicans, not probe for common ground.

The meeting is expected to be held at Blair House, the presidential guest house across from the White House, but the administration has not released any details about the format. "I don't agree this is going to be political theater," said spokesman Reid Cherlin. "This is going to be a substantive discussion about how best to achieve the goals the president laid out."

Starting from scratch is not an option, Democrats say. But Republicans say they can't see the House and Senate Democratic bills as a beginning. For one thing, both would raise taxes.

House Republican leader John Boehner of Ohio wrote White House Chief of Staff Rahm Emanuel on Monday saying Republicans would "rightly be reluctant to participate" if the starting point is the Democratic legislation. Previously, Boehner welcomed Obama's offer. Asked if Boehner is now setting conditions, an aide would not elaborate.

Still, there are a couple of issues on which Obama could try to nudge both sides.

He could officially bury the government insurance plan sought by liberals. A major obstacle for Republicans, the public option never had the votes to pass in the Senate. Yet Obama has hesitated to declare it dead.

The president could also follow through with curbs on medical malpractice litigation. Although he agrees with Republicans that fear of lawsuits leads doctors to practice defensive medicine and drives up costs, Obama has not insisted that limits on litigation be in the bill.

Any step toward limits — fiercely opposed by the nation's trial lawyers — is certain to draw solid Democratic resistance in a midtern election year. It's unclear how much such a gesture by Obama would help at this point.

"Right now, it is hard to get people to move off positions that they have taken," said Gail Wilensky, who ran Medicare for former President George H.W. Bush. "It's not like there was a bipartisan effort that went to the 11th hour and then fell apart. It was a Democratic package."

___

Associated Press writer Erica Werner contributed to this report.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

What's a MAGI?

Jeff Brown — Tue, 09 Feb 2010 10:09:49 -0500

Think fast: what’s your modified adjusted gross income?

Time’s up. Good thing there wasn’t a jackpot riding on your answer, because, like most people, you probably haven’t the foggiest idea of your MAGI — or even know what it is.

It’s hard enough to know your gross income. But to adjust it, and then modify the adjustment? And to modify in various ways? Gee whiz!

To cut to the chase, modified adjusted gross income is a figure used to determine whether a taxpayer qualifies for variety of tax benefits: opening a Roth IRA, getting a tax deduction on a traditional IRA, using the Hope Scholarship Tax Credit, Lifetime Learning Tax Credit, Student Loan Interest Deduction or Tuition and Fees Deduction.

For a married person to get a full income tax deduction on contributions to a traditional IRA, for instance, the couple can have a MAGI of no more than $166,000, assuming the account holder’s spouse has a retirement plan at work but the account holder does not. In the tax world, nothing is easy.

The idea of MAGI is to add back some of the deductions that made adjusted gross income smaller than gross income. AGI includes deductions for IRA contributions, for example, so it would not make sense to use AGI to determine whether one qualifies to deduct the IRA contribution.

The problem is you often have to know your MAGI before you can make a decision, such as whether to fund a traditional IRA or Roth. But you need data from the full tax year, ending Dec. 31, before you can figure MAGI. That means you have to do your 2009 tax return before you can know the MAGI used to make decisions for 2009.

Fortunately, many of those decisions, like funding an IRA, don’t have to be made until April 15, 2010.

OK, so how is MAGI figured? Unfortunately, it can vary a bit depending on whether you’re using it for IRAs or student loans. Worksheets are found in the IRS instructions on these subjects: Publication 590 for IRAs, Publication 970 for education.

For IRA purposes, for example, start by finding your adjusted gross income, line 37 on the 1040 return, line 21 on the 1040A.

From AGI, subtract the value of any Roth conversions or Roth rollovers, as well as any required minimum distributions you took from traditional IRAs. (Required minimum distributions were not required in 2009.) Then add any deductions taken for traditional IRA contributions, student loan interest, tuition and fees, domestic production activities, foreign earned income, foreign housing, qualified bond interest and adoption benefits from an employer.

It’s not as big a headache as it sounds, since all these deductions have already been figured in the return, and you certainly won’t have all of them.

But if anything you report requires calculating modified adjusted gross income, it’s best to start your return well before the deadline.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Tax Tips: The Keys to Car Deductions

Robert D. Flach — Tue, 09 Feb 2010 07:00:00 -0500

If you donate a motor vehicle to a charity you will be given a Form 1098-C.

Form 1098-C lists the name and Taxpayer Identification Number of the charity, the vehicle identification number of the car, and the date of contribution. It must be issued within 30 days of the date of the contribution or the date of the disposition of the vehicle by the charity.

Additional information is included on the form depending on what the charity does with the vehicle.

If the charity sells the car without significant interim use or material improvement, the 1098-C will include the date the vehicle was sold, certification that the sale was an "arm's length" transaction among unrelated parties and the gross proceeds from the sale.
If the charity intends to use the car in its operations, or make "material" improvements to the vehicle before selling it, the 1098-C will include a description of the interim use and its intended duration or the intended material improvement and a certification that the vehicle won’t be sold before such use or improvement is completed.
If the charity plans to give the vehicle, or sell it at a price that is significantly below "fair market value" to a needy person, the 1098-C will include a certification that the charity will make such a sale or transfer in direct furtherance of the organization's charitable purpose.

The charity can give you a statement instead of the form if it contains all the necessary information.

Avoid Bad Dating Body Language

Althea Chang — Tue, 09 Feb 2010 07:00:00 -0500

Getting excited for a big date on Valentine’s Day with someone new? Make sure you don’t send the wrong signals.

Amazing Sci-Fi Stuff Come to Life

Althea Chang — Tue, 09 Feb 2010 07:00:00 -0500

These amazing gadgets from science fiction favorites are coming to our world today.

Free Breakfast At Denny's

Seth Fiegerman — Mon, 08 Feb 2010 17:09:46 -0500

Tomorrow, Denny’s will be offering free Grand Slam breakfasts from 6 a.m. to 2 p.m. So wake up early and bring an extra pair of clothes, this giveaway could get messy.

Last year, Denny’s gave away 2 million free meals and the restaurant chain expects to match that again this year. The Grand Slam breakfast includes any four items including bacon strips, chicken sausage patty, eggs, pancakes, oatmeal and more.

As Kevin Pang wrote in the Chicago Tribune, there is nothing preventing you from going to one Denny’s after another and racking up free meals until 2 p.. Nothing, except your day job and the will to live into the afternoon.

Denny’s advertised the deal during the Super Bowl last night and is advertising it as a “Super Bowl Instant Replay.” Of course, it does seem a bit ironic that the term grand slam applies to several sports – baseball, tennis – but not football. But putting that aside, it’s a sweet deal for those who have the patience to wait in line.

Since we are technically a finance publication, it seems worthwhile to ask how much Denny’s really profits from giving away millions of free meals. According to DailyFinance, the answer is a lot. “Far from being a risky move, Denny's free Grand Slam day has proved very shrewd. Last year, it propelled a short-term 22% uptick in the stock. This year, it's already resulted in a quick 6% improvement. And in the longer run, the move will draw customers into the restaurant, improve public relations, and reacquaint Denny's fans with the chain's offerings.”

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Starbucks Takes on Tourette Syndrome

David Seaman — Mon, 08 Feb 2010 16:43:29 -0500

As reported by WalletPop: “a Florida man is suing the Starbucks on Powerline Road west of Boca Raton. Robert Friedman suffers from Tourette syndrome, a genetic disorder which is characterized by uncontrollable outbursts, often laced with obscenities. Last year, he was visiting the Starbucks and suffered from such a flare-up; customers said he banged on the wall and shouted curse words. Although Friedman says he later apologized for the eruption, the employees called the local sheriff's office, asking deputies to remove him from the premises and give him a ‘no trespass’ warning.” So he’s decided to sue, and he may very well have a case.

According to the Palm Beach Post, “The Florida Commission on Human Relations, which investigates claims of discrimination, found that there was evidence that the coffee shop didn't take steps to make accommodations for Friedman's disability.”

Tourette Syndrome is a protected disability under the Americans with Disabilities Act and businesses are required to accommodate customers that suffer from it.

But what if a disability, like Tourette syndrome, drives other customers away and ultimately hurts a business’ bottom line? What if children are within earshot? Also, what if this outburst happened on an airplane and the person with Tourette syndrome started shouting “bomb” and was banging on windows or worse, the cockpit door. How could an airline accommodate that?

I don’t think that this Starbucks incident comes close to the airplane scenario, but it is food for thought. Maybe Starbucks should get over itself and just let the guy come in, have his outburst, get his coffee and leave. But then again, I do think that Friedman should do his best to make sure that other customers understand his disability if and when it pops up.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Low Interest Rates Could Hurt More Than Help

Joe Mont — Mon, 08 Feb 2010 16:09:00 -0500

WASHINGTON (TheStreet) -- Federal Reserve policymakers last week held the overnight lending rate near zero to keep the economic recovery on track by making credit easier to access. But the benefits of a low rate might be diminishing for consumers.

Because nearly 70% of credit cards sport variable interest rates, one might think that the Fed's decision to stick to a near-zero strategy would be a boon for many Americans. Instead, in a scramble to beat new consumer protection regulations that go into effect on Feb. 22, card issuers have been raising rates, boosting fees and decreasing credit lines. Many credit lines also have baselines built into their products. Read the fine print and you may find that your card won't fall below 15%.

On the surface, the Fed's policy would also seem beneficial for new-car buyers. But those dealers offering attractive loan terms may be doing so to help sell slow-moving vehicles, irrespective of monetary policy. The fed funds rate impacts used-car loans even less. Used-car loans are more likely to reflect supply and demand, and default trends, which are tied to unemployment. Buyers will bad credit will continue to pay high rates.

"From a consumer standpoint, a marginal increase in interest rates will probably not have a material impact on the way people spend or save," says Srini Venkateswaran a partner with the financial institutions group at consultancy A.T. Kearney. "But I also don't believe [keeping rates near zero] stoked the economy to the degree that was expected."

Even mortgage rates might not see much of a change.

"As the fed funds rate falls, the mortgage rate does not come down to meet it," says Susanne Trimbath, chief executive of research firm STP Advisory Services and a former document editor for the San Francisco Federal Reserve. "If people look at where it says how your rate is calculated for mortgages, home equity loans and even credit cards, not many of them are tied to the fed funds rate."

Most mortgage products are tied to the prime lending rates set by banks or to the London Interbank Overnight Rate (LIBOR). "There is no formula that says 'prime is set at fed funds plus X,'" Trimbath says.

In addition to the decision to hold steady with interest rates, the Fed last week announced it would shift away from its $1.25 trillion dollar acquisition of mortgage-backed securities. That decision could impact mortgage lending more than the fed funds rate.

"With the Fed looking to leave the mortgage-backed security market, all eyes are on private money to step in a fill the void," says Damien Melle, CEO of West Coast Property Specialists, a real estate brokerage in Southern California. "Either the effective mortgage rate will increase by at least 100 basis points to compensate, or the feds will need to jump back into the market to cover the short fall. If interest rates rise from 5% to 6%, this will price many buyers out of the housing market."

The Fed's decision to keep rates near zero could also prove detrimental for retirees and seniors living on fixed incomes. It's common for retirees to boost the value of their nest eggs by buying certificates of deposit, conservative securities that typically pay more interest than savings and money market accounts. A low fed funds rate has hurt returns on CDs, a trend that's likely to continue, says Robert Laura, a partner at Synergos Financial Group, a Michigan-based advisory firm.

"Retirees are being forced to stretch for yield and many of them are taking on unnecessary risk," he says. "Some are moving into bond funds, which can lose principal, or other investments that have long-term consequences to locking money up in a low-interest environment, such as annuities."

Pink Ouija Boards Spell Trouble for Some

Seth Fiegerman — Mon, 08 Feb 2010 15:32:22 -0500

Forget about dodge ball and the evil Internets, the real danger threatening the youth of America may be a pink Ouija board.

Fox News recently reported that some Christians are decrying Ouija, a game that lets people ask spirits questions about life. "All Christians should know, well everyone should, that it's opening up a person to attack, spiritually," Stephen Phelan, the director of Human Life International told Fox News. "Christians shouldn't use it."

According to Fox News, “Phelan also noted that the pink version of the game is explicitly marketed to young girls who may want to partake in ‘something dangerous’ during a late-night sleepover.”

When asked to defend it, Hasbro, the game’s manufacturer, said “Ouija is simply a game.” Other Web sites have also risen up to rebuke claims to destroy the game. From Jezebel: “[B]anning pink portals to the other side is a bit much, no? Ouija boards have been around for years, and pink packaging or no pink packaging, they're a slumber party staple.”

And just as a side note here, something tells me that if there are really spirits, they wouldn’t want to waste their time answering a bunch of questions about Zac Efron and annoying parents. Of course, I haven’t actually been to a slumber party, so I guess I’ll never know for sure what it is teenage girls talk about there.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Obama, GOP Debate Job Creation Strategies

The Associated Press — Mon, 08 Feb 2010 14:57:40 -0500

By Philip Elliott, Associated Press Writer

WASHINGTON (AP) — Republicans sparred with President Barack Obama in their Saturday media addresses over proposals to create jobs, further evidence of the difficulty of bipartisan solutions to the nation's pressing problems.

Obama pushed Congress to use $30 billion that had been set aside to bail out Wall Street to start a new program that provides loans to small businesses, which the White House calls the engine for job growth. Republicans, meanwhile, taunted Obama with a familiar refrain: Where are the jobs the president promised in exchange for the billions of dollars already spent?

The barb came a day after the government reported an unexpected decline in the unemployment rate, from 10% to 9.7%. It was the first drop in seven months but offered little consolation for the 8.4 million jobs that have vanished since the recession began.

"Even though our economy is growing again, these are still tough times for America," Obama said. "Too many businesses are still shuttered. Too many families can't make ends meet. And while yesterday, we learned that the unemployment rate has dropped below 10% for the first time since summer, it is still unacceptably high — and too many Americans still can't find work."

To help the recovery, Obama asked Congress to use leftover money from the Troubled Asset Relief Program, or TARP, to provide to small banks so they can make more loans to small businesses. Republicans have criticized the move, arguing any money leftover from the bailout should be used to reduce the budget deficit.

In the weekly GOP address, Rep. Jeb Hensarling of Texas chided Obama for proposing a 2011 budget last week that would increase spending, taxes and the national debt.

"Americans are still asking, 'where are the jobs?' but all they are getting from Washington is more spending, more taxes, more debt and more bailouts," Hensarling said.

The Republican attack came even as key Democrats and Republicans in the Senate are working on a bipartisan jobs bill. The senators hope to unveil legislation as early as Monday that would provide tax breaks to businesses that hire unemployed workers, extend unemployment payments for those whose benefits have run out, and renew a program that offers the jobless a subsidy for health insurance premiums.

Senate passage of a bipartisan jobs bill would mark an important political victory for Obama. But Saturday's radio and Internet addresses showed that bipartisanship won't be easy.

The White House has repeatedly argued that the $787 billion economic stimulus package enacted in February helped save the economy from complete collapse. On Friday, Treasury Secretary Timothy Geithner told ABC News there is a much lower risk of a double-dip recession "than at any time over the last 12 months or so."

Hensarling, however, said the stimulus package and the growing government debt have added to the country's economic problems.

"Democrats chose to go it alone and jam through their stimulus," Hensarling said. "What did the American people get? A bill for $1.2 trillion and 3 million more jobs lost."

Penny Pinch: Government to Cut Minting Costs

Brian O'Connell — Mon, 08 Feb 2010 14:09:54 -0500

As part of the White House budget released in January, the federal government claims it has a coin problem. Specifically, it cost too much to make them – especially nickels and pennies. But it's looking for ways to fix the problem.

Here’s the back story. The White House, as part of its 2011 budget, claims the cost of coining a single penny is 1.8 cents and the cost of forging a nickel costs nine cents. Conversely, it only costs .10 cents to make one U.S. quarter. The chief culprit on the penny and nickel front is the high cost of metal these days. According to the U.S. Mint, the prices of the two major metals-based ingredients that go into the production of pennies and nickels – copper and zinc – have risen significantly in recent years. That’s an issue, as pennies, for example, are comprised of 97.5% zinc and 2.5% copper, according to government statistics. In addition, the cost of nickel has been on the upswing, too – up about 500% in recent years.

Ironically, one reason why those metals cost more is increased mining regulation from the U.S. government. Another reason is higher demand for zinc, copper and nickel.

Altogether, the higher cost of production has cost the U.S. government – and by extension, the U.S. taxpayer – more than $100 million annually.

To shave costs, the White House proposes to tweak the recipe for making pennies and nickels (the White House is not advocating the elimination of the copper penny – at least not yet). One idea is to use cheaper metals when forging coins. Another is to cut back on supply of pennies, which aren’t in as much demand as more consumers use debit cards to make purchases. In a December study by Nilson Report, there were 34 billion U.S. debit card transactions in 2008, totaling $1.33 trillion. That's up from 16.1 billion transactions totaling $583 billion in 2003. If consumers aren’t demanding pennies, the thinking goes, why not make less of them?

But the White House would need Congressional action to change the make-up of pennies and nickels. The U.S. Mint falls under Congressional oversight and right now there is no solid movement to change the way U.S. coins are produced. That said, some seeds have recently been planted. The White House’s 2011 budget includes language that directs the U.S. Treasury to explore new, cheaper ways to produce our nation’s pennies and nickels, and that could trigger Congressional action later this year.

We’re not a penniless society yet. But if the cost of nickels and pennies continue to rise, we might get there yet.

Are CEOs More Unstable than Most People?

Seth Fiegerman — Mon, 08 Feb 2010 13:00:00 -0500

If you’ve ever suspected that the people in charge of your company see the world differently than you, here’s the proof.

USA Today recently conducted a personality test with 877 CEOs and found that on average, they are “more sensitive and private than the typical person… and more likely to be emotionally unstable.”

For the personality test, the CEOs were asked to rank their favorite colors, and their answers were then analyzed by an expert psychiatry professor. It may sound silly to judge based on something as simple as your favorite color, but according to USA Today, many of the CEOs described the results as “eerily accurate.”

CEOs were three times more likely than the average person to choose magenta as their color and significantly less likely to choose red or yellow. This led to the surprising conclusion that CEOs “are not as self-assured as the public at large, and they are more cooperative and less forceful than the typical person.”

The color test is also used to help people determine what jobs they are best suited for. While the test confirmed that the CEOs were meant for “upper management” positions, they also proved more likely to be “social workers, artists and teachers,” and in a strange twist of fate, the typical CEO is apparently “well-suited to be an administrative assistant.”

If you decide to talk about this study around the water cooler, we suggest you do it quietly. Remember, CEOs are pretty sensitive.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Mortgage Trends This Week: Feb. 8

Brian O'Connell — Mon, 08 Feb 2010 11:23:32 -0500

The housing market hit a milestone last week, although you’re more likely to see soot falling from the sky than confetti.

That’s because we’re still seeing the fallout from the foreclosure explosion of 2008 and 2009. In fact, the first data from 2010 shows that 10% of U.S. homeowners are delinquent on their mortgages – and that should mean even more foreclosures down the road.

According to a study by Lender Processing Services, 7.2 million home loans in the U.S. are delinquent. The worst offenders seem to be homeowners with bigger mortgages. The LPS data shows that loans with a principal balance of between $417,000 and $600,000 are at the top of the list of delinquent loans. That suggests the bloodletting from the sub-prime mortgage market has spilled over into the high-end mainstream mortgage market.

That’s the painful backdrop for mortgage rates this week.

With unemployment around 10% and millions of Americans behind on their house payments, the economy continues to struggle. When the economy is sputtering, mortgage rates tend to remain low, as the Federal Reserve tends to keep a lid on rates in an effort to keep credit flowing and generate more financial activity stemming from low-interest loans.

Right now, with U.S. consumers not spending money, discouraged about their financial futures and struggling to even make mortgage payments, it’s not exactly an environment for economic growth and the Federal Reserve knows it. That’s why, even though rates did bump up slightly last week, interest rates are low right now.

Here are the numbers from the first week of February, as measured by the BankingMyWay Weekly Mortgage Rate Tracker:

Description This Week Last Week

One-Year ARM 4.09% 4.18%

Three-Year ARM 4.44% 4.14%

Five-Year ARM 4.34% 4.2%

15-Year Mortgage 4.54% 4.53%

30-Year Mortgage 5.11% 5.1%

The good news, and there is some, is that home sales are showing signs of improvement. The National Association of Realtors shows a 1% uptick in home sales in December 2009. Mortgage applications for January were up, as well. The Mortgage Bankers Association shows a 7.6% rise in new home applications over the course of the past four weeks.

While these are encouraging signs, they might not be enough to shift the momentum back toward a stronger housing market and a healthier economy. So expect rates to remain low for the rest of the month, then we’ll see what impact the Federal Reserve’s pullback in March from the mortgage securities market has on mortgage rates.

In the meantime, you can still get a great mortgage deal. Shop around to find the best mortgage rates at BankingMyWay’s Mortgage Rate Search.

12% of Recent Vets Unemployed

The Associated Press — Mon, 08 Feb 2010 11:02:50 -0500

By Christopher S. Rugaber, AP Economics Writer

WASHINGTON (AP) — Veterans of the Afghan and Iraq Wars are more likely to be unemployed than non-veterans, while the foreign-born and disabled are more likely to be jobless than the general population.

These figures were included for the first time Friday in the Labor Department's monthly employment report. Overall, the report included mildly positive news: the nation's jobless rate fell to 9.7% in January from 10%.

For veterans who have served since September 2001, joblessness is higher: 12.6%, compared to 10.4% for non-vets. Both groups have higher rates than the national total because the figures aren't seasonally adjusted.

When veterans from all other periods are included, the picture is brighter: the unemployment rate for all vets is 9.6%, below the non-vet rate.

Meanwhile, 15.2% of disabled Americans are unemployed, the department said, compared to 10.4% of the general population.

The unemployment rate for foreign-born U.S. residents, meanwhile, is 11.8%. That compares to 10.3% for native-borne citizens.

Here, by the numbers, are some more details you can find deep in the employment report.

CLOSER TO THE PLUS SIGN

20,000: The net total of jobs lost in January

150,000: The net total of jobs lost in December

64,000: The net total of jobs gained in November, the only gain in 25 months

753,000: Average number of jobs lost each month in the first quarter of 2009

35,000: Average number lost each month in the past three months

TOUGH TIMES FOR THE YOUNGEST

26.4%: Unemployment rate for teenagers in January

15.8%: Unemployment rate for those 20 to 24 years old

STILL LOOKING

41.2%: Proportion of unemployed who've been out of work six months or longer, the highest on records dating to 1948

30.2 weeks: Average length of unemployment in January, also a record for the same period

6.3 million: Number of people unemployed for six months or longer, also a record for this period

1.3 million: Number unemployed for that long in December 2007, when the recession began

WHERE THE JOBS ARE

52,000: The number of temporary jobs added in January

11,000: Jobs added in manufacturing, the first gain since January 2007

42,100: Jobs added in retail, the largest gain since November 2007

14,500: Jobs added in hospitals, nursing and other health care sectors

7,100: Jobs added in computer services

UNDEREMPLOYED

8.3 million: Number of part-time workers who would have preferred full-time work last month

2.5 million: People without jobs who want to work but have stopped looking

16.5%: "Underemployment" rate in January if you include the above two categories

17.4%: Underemployment rate in October, the highest on records dating to 1994

JANUARY UNEMPLOYMENT RATE BY GROUP

12.3%: Female heads of households

8.4%: Asians

8.7%: Whites

12.6%: Hispanics

16.5%: Blacks

Who's Hiring Full-Time: Asurion, Hhgregg and CareerBuilder

Bobbi Dempsey — Mon, 08 Feb 2010 10:46:40 -0500

Unemployed? Worry not! Every Monday, MainStreet finds companies that are hiring full-time workers — right now.

Asurion

Who They Are: Provider of technology protection services.

Where They Are: Based in San Mateo, Calif., with numerous other locations worldwide.

What They Want: Customer service reps, supply chain managers, analysts and accountants. Customer service reps start at about $10 to $12 an hour, while accountants reportedly make in the $40,000 range and analysts start at up to $60,000 a year.

Coolest Job: They need a Technology Products Senior Manager who will supervise the daily operations of the IT team and manage and coordinate IT projects and services. Requires a college degree in business or computer sciences, plus at least five years related experience.

Apply here.

Next Page: hhgregg

Hhgregg (Stock Quote: HGG)

Who They Are: Retail chain specializing in home electronics, appliances and mattresses.

Where They Are: They have 127 stores, mainly in the southern states. They are in expansion mode, and have recently opened several new stores in Virginia.

What They Want: Sales associates and managers. Associates start at about $9 an hour, while managers reportedly have salaries in the range of $35,000 to $40,000. Some sales positions involve a combination of hourly base rate plus commissions. Sales associates undergo a training program that involves 200 hours of training.

Coolest Job: They need an Asset Protection Auditor who will be responsible for tracking all store products and inventory. Job will involve performing audits at various stores and warehouses. Requires good organizational skills and computer experience, with relevant professional experience preferred.

Apply here.

Next Page:CareerBuilder

CareerBuilder

Who They Are: Major online job site.

Where They Are: Based in Chicago, with about 20 sales offices throughout the U.S.

What They Want: Account executives and online sales consultants. Base pay starts at $25,000 with potential total earnings of up to $60,000 the first year including commissions and bonuses.

Coolest Job: They need a User Experience Designer who will be based in Norcross, Ga. This person will be responsible for developing and maintaining new products and user interfaces, and will create user-centered designs based on customer feedback.

Apply here.

Next Page: Bonus Job!

Bonus Cool Job of the Week

Here's the perfect job for a home improvement buff with broadcast experience. Home Depot is looking for a Broadcast Creative Manager who will execute national TV and radio campaigns. This personal will help develop concepts and will also travel to production sets to supervise filming. Requires eight years of broadcast experience.

Apply here.

Making Your Portfolio Less Risky

Jeff Brown — Mon, 08 Feb 2010 10:17:07 -0500

After its stunning gains in the last three quarters of 2009, the stock market has hit a rocky patch. Amid a series of gut-wrenching plunges, it’s natural to think about moving money to the sidelines.

Although standard investment advice calls for leaving your stock-market allocation alone through thick and thin, some simple arithmetic shows that a modest move from stocks to cash won’t torpedo a long-term plan. If it helps you sleep at night ... well, that’s nothing to sneer at.

Consider an investor with 50% of her portfolio in stocks, 40% in bonds and 10% cash. Assume she’s betting on long-term returns averaging 10% on stocks, 5% on bonds and 3% on cash.

After 12 months, every $100 in this portfolio would grow to $107.30, for a 7.3% gain. That’s in line with what many financial advisers would project for a diversified portfolio.

Now suppose the investor thought the stock market had become too risky and reduced the stock holdings to 40%, increasing cash to 20%. Every $100 would grow to $106.60 if returns held to the long-term average. That sacrifice isn’t so bad if it really brings peace of mind.

What if the investor’s fears come true? Let’s assume stocks fall by 20% during the next 12 months. Every $100 in the original portfolio would fall to $92.30, while the more conservative portfolio would fall to $94.60.

Of course, the strategy would reduce returns if stocks took off. If they gained 20%, the original half-stock portfolio would grow to $112.30, the conservative one to $110.60. Still, that’s not a dramatic difference for a single year.

The real penalty would come if you kept the more conservative asset mix for the long term. Earning 6% instead of 7% would leave you with 17% less after 20 years, according to the Savings, Taxes and Inflation Calculator.

The numbers in the examples represent historical averages. If you moved to the sidelines today, you’d be too optimistic to expect 3% yields on cash. The average one-year certificate of deposit yields just 0.845%, according to BankingMyWay.com. With the shopping tool you can find some CDs edging toward 2%. But safety, not yield, is the main reason for moving to cash.

It also might be overly optimistic to expect 5% on bonds over the next year. The 10-year U.S. Treasury note yields 3.62%, and the bond could lose value if interest rates rise.

Still, the basic principle is worth keeping in mind: Shifting some money to the sidelines can make a diversified portfolio safer and need not entail a big reduction in returns over the short term.

And if you’re really lucky, or very skilled, you can later reverse the process, using that cash to buy stocks or bonds when prices are lower. Most experts discourage amateurs from such market timing, since there’s a good chance of getting it wrong. But the risks aren’t too great if the shifts in and out of cash are fairly small.

Tax Tips: The Importance of Paper

Robert D. Flach — Mon, 08 Feb 2010 07:00:00 -0500

You must have a hard copy record for every dollar you contribute to a church or charity to claim a deduction on Schedule A.

The record must be an actual canceled check, a bank record (a copy of the front of the check included on your bank statement) or a written communication from the organization showing the name of the church or charity, the date of the contribution and the amount.

The record can also be a credit or debit card receipt or an entry on a bank or credit card statement indicating a credit or debit card charge.

In the case of a payroll deduction for United Way or any other charity, the IRS says, “A pay stub, Form W-2 or other employer furnished document that sets forth the amount withheld for a payment to a donee organization, along with a pledge card prepared by or at the direction of the donee organization, will be deemed to be a ‘written communication from the donee organization’ that satisfies the requirements.”

You can’t claim you put a fiver in the collection plate each week. You must write a check to the church for the $5 or take advantage of the "envelope" system, which provides a written receipt at year-end.

The law doesn’t say all contributions more than $50 or $100 must be documented. It says all cash contributions must be documented. So get a receipt, even for the smallest of donations.

New Jersey tax pro Robert D. Flach has been preparing 1040s for individuals since 1972.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

15 Decadent but Healthy Treats

Althea Chang — Mon, 08 Feb 2010 07:00:00 -0500

Forget about curbing your cravings. Indulge in these goodies and still feel healthy.

Valentine’s Day Horror Stories

David Seaman — Mon, 08 Feb 2010 07:00:00 -0500

For many of you, Valentine’s Day is a happy, romantic holiday. But for these unfortunate souls, things went bad. Really bad.

Banned in the USA: 12 Forbidden Products

Seth Fiegerman — Sun, 07 Feb 2010 07:00:00 -0500

These items are deemed too dangerous to be brought into America. Or else they come from countries we just don't like.

Who's Hiring this Week (Feb. 7)

MainStreet.com Staff Writers — Sun, 07 Feb 2010 07:00:00 -0500

Check out MainStreet's roundup of companies hiring full-time, part-time, freelance and telecommuting workers.

Awesome iPhone Music Apps

Stephen Dalton — Sat, 06 Feb 2010 07:00:00 -0500

Which iPhone apps will make your life easier?

An Affordable Villa in Italy?

Mark David — Sat, 06 Feb 2010 07:00:00 -0500

Yes, we know affordable is a relative term, but you couldn’t even get a 2 bedroom apartment in Manhattan for this price.

Tips for Buying Money-Market Mutual Funds

The Associated Press — Fri, 05 Feb 2010 16:07:38 -0500

The Associated Press

Money-market mutual funds became popular places to safely park cash amid the beating that stocks and bonds took in the market meltdown. But since then, typically small money-fund yields have shrunk to record lows, and many investors have pulled out. Still, with interest rates also near zero and with nowhere to go but up, money funds could see some investors return. That's because their yields rise along with interest rates. Here are tips on how to find the best money funds:

1. FIND THE RIGHT FIT. While their returns are near zero across the board, different types of money funds invest in different types of bonds.

So, pick the right type to balance how much safety you're willing to give up for a slightly higher yield. Many funds buy super-safe government bonds such as Treasury bills, and generally carry the lowest yields. So-called prime funds seek slightly higher yields but accept marginal risk by venturing into some forms of corporate bonds, which carry the risk of default.

2. CONSIDER YOUR TAX SITUATION. Tax-free money funds could be a better bet than taxable ones if you're holding the fund outside a tax-protected retirement account, such as a 401(k), and your income puts you into a high tax bracket. The tax-free variety are usually labeled as such, and invest in bonds issued by state or local governments. If your state's taxes are high, bonds issued by your home state could be a good pick.

3. CHECK EXPENSES. Fund expenses are a big consideration. That's because a small difference in the amount you pay can offset the small yield of a money fund. Generally, look for expense ratios below 0.4%. That's the percentage of assets a fund charges for operational expenses. Bigger funds typically charge lower fees because they can be run more efficiently.

4. AVOID CHASING YIELDS. Resist the temptation to buy a money fund just based on a higher yield. Try to determine what risks the fund may be taking to generate the higher return — such as a soured investment in Lehman Brothers bonds, that ultimately caused investors in one fund to lose some money in late 2008.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

5 Worthy Tim Geithner Replacements

David Seaman — Fri, 05 Feb 2010 16:00:00 -0500

As reported by our sister site TheStreet.com, “Talk that President Obama may give Treasury Secretary Tim Geithner the boot won't seem to go away.”

They also give their list of 5 possible Tim Geithner replacements, all of them probably very serious and well-researched options.

But some take issue with the fact that Tim Geithner, and his predecessor Hank Paulson, Jr., were too “insidery” given their close ties to the financial world. Maybe what we need is an outsider—a true rebel to represent the interests of Real America and give Wall Street the shaft.

If President Obama does decide to toss Geithner in favor of an outsider, here are our 5 picks. Get some fresh blood in there, Mr. President!

1. Mike “The Situation” from MTV’s Jersey Shore. No one could be more of an outsider. Fleeting fame recipient and legitimate tough guy Mike could not be more of a Wall Street outsider. According to his cast page on MTV.com, “He knows what he wants from his summer at the Jersey Shore and is not going to let anything stop him from getting it—even his roommates. The way he sees it, he has the situation under control.” Today, annoying roommates, tomorrow fist pumping with the likes of Jamie Dimon and Lloyd Blankfein. Sounds like just the strong leader we need!

2. Julia Allison. Typically, a Treasury Secretary starts off with a fair amount of public goodwill, which gradually erodes over time. Let’s try the opposite: start with someone who has very little public goodwill. She has nowhere to go but up.

3. Brad Pitt. He’s already got the wise, avuncular goat beard. Now he should get the job to go with it.

4. Mel Gibson. Because he’d probably have no problems working with anyone in the financial industry. He’s a real mensch.

5. Conan O’Brien. A natural communicator, a smart guy (Harvard grad!), and a born leader. Also: we hear he is looking for work.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Is the Internet Bumming Us Out?

Seth Fiegerman — Fri, 05 Feb 2010 15:00:00 -0500

Step away from your computer… but wait until you’ve finished reading this article.

A new study published in Psychopathology journal found that the likelihood of depression increases with the time you spend surfing the Web.

(For MainStreet’s coverage of the most depressed states, check here.)

According to Sky News, researchers got 1,319 people, ages 16-51, to answer an online questionnaire to determine the relationship between “internet dependency” and depression. The results showed that the worst Internet addicts were also the most depressed.

“The Internet now plays a huge part in modern life, but its benefits are accompanied by a darker side,” said Catriona Morrison, the lead author of the study, in a statement. The author also told WebMD that “Internet addiction seems to be a bona fide syndrome.”

So what exactly is the definition of an Internet addict? According to WebMD, “Many people use the Internet to pay bills, shop, and communicate via email, but a small subset of the population finds it ‘hard to control how much time they spend online, to the point where it interferes with their daily activities,’ Morrison says.”

Even if you don’t think you’re an addict, there may still be cause for concern. At its core, the study is a rebuke of letting too much of your real life be dominated or mediated by the Internet, whether that means communicating with friends on Facebook or spending time on virtual world Second Life.

Still, as some have noted, studies like this are particularly dubious because it’s difficult to tell whether the people studied were more depressed because they spent more time on the Internet, or whether they spent more time on the Internet because they were depressed.

I don’t know if the Internet is making me personally feel depressed, but I know that these studies are.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

U.S. Tops Global Credit Card Debt List

Brian O'Connell — Fri, 05 Feb 2010 14:05:50 -0500

The U.S. is a world leader in a lot of areas — areas as diverse as military affairs and charitable giving. But one crown Uncle Sam may not want to wear is for the most credit card debt in the world. Here’s how we stack up with the rest of the world, along with some other fresh signs that U.S. consumers are a long way away from cleaning up their plastic problems.

The story can be found in a graphic from PersonalLoans.org. The Web site sources its research from the U.S. Census, Nilson Review and Credit.com.

According to the chart, the current global credit card debt rankings look like this;

Country Card Debt

U.S. $1.693 billion (40% of world volume)
U.K. $388 million
France $347 million
Canada $187 million
Japan $151 million
Mexico $152 million
Russia $40 million
China $12 million

U.S. Average Annual Card Balance = $10,385

% of American Adults With a Credit Card = 80%

There’s no statistical evidence to support the fact that a handful of Beverly Hills housewives have more debt on their Visa (Stock Quote: V) cards than the entire population of China — which currently stands at about 1.3 billion. But who would be surprised if that were the case?

Inside the U.S., some states are worse than others when it comes to accruing massive credit card debt. According to a separate study by credit scoring giant Experian (Stock Quote: EXPN), New Hampshire, Connecticut and Rhode Island lead the nation in credit card debt. In fact, New Hampshire-ites, long reputed as flinty and practical, owe twice as much in credit card debt as do residents of Oklahoma, the state at the bottom of the U.S. credit card debt list.

Massachusetts, Maine and Delaware fall in line near the top of the list, leading to an obvious question: what is it about the U.S. Northeast, particularly New England, that causes its residents to slap their plastic down like a drunken sailor? One reason why is that incomes are, on average, higher in Massachusetts and Connecticut than they are in low-debt states like Oklahoma or Mississippi.

But whatever the reason, by and large, southern states look a lot like China when it comes to accumulating credit card debt. And it’s New Englanders who pile up credit card debt like a Hollywood diva on a Rodeo Drive shopping spree.

Go figure.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Unemployment Dips, But What’s Next?

Michael Schreiber — Fri, 05 Feb 2010 13:44:56 -0500

The unemployment rate dropped to 9.7% in January from 10% a month earlier. That 0.3 percentage point drop is significant and could be a sign that the economy is improving. But as our sister site TheStreet.com reports, “the jobless rate, which now stands at a five-month low, is deceiving. The economy shed 20,000 jobs as the goods-producing and construction industries were hardest hit, losing 60,000 and 75,000 jobs, respectively. An increasing number of people gave up looking for full-time work, lowering the country's base workforce.”

Just have a look at the latest installment of MainStreet.com’s Happiness Index and you’ll see that plenty of states are still struggling with double-digit unemployment. Michigan tops 14%. (The Happiness Index looks at unemployment, non-mortgage debt and foreclosure rates in each state).

So, will the unemployment rate continue to drop? It’s hard to say, but The New York Times’ Economix blog makes an important observation: “Don’t assume that the unemployment rate is finished rising, just because it fell last month. For it to fall over an extended period, job growth needs to keep up with population growth, which translates to something like 150,000 new jobs a month.”

5 Dumbest Things on Wall Street: Feb. 5

Gregg Greenberg — Fri, 05 Feb 2010 13:03:24 -0500

Nike's Airball

Nike (Stock Quote: NKE) is launching an ad campaign laden with gun references at the same time the National Basketball Association is cracking down on firearms in the locker room.

Talk about shooting yourself in the foot.

The Nike ad, which was unveiled late last week in publications like Sports Illustrated and ESPN The Magazine, features armor clad NBA All-Stars LeBron James and Kobe Bryant standing beside the slogan: "Prepare For Combat." The ad also carries a quote from each player boasting about his toughness. Bryant's blurb says: "I'll do whatever it takes to win games. I don't leave anything in the chamber."

Metaphorically speaking, of course, Kobe doesn't leave anything in the "chamber" when he plays basketball, especially against the Knicks where he habitually shoots the lights out. As for "King" James, he doesn't need combat armor to protect him now that he has Shaquille O'Neal as a teammate.

However, the NBA is sensitive to any gun references after Washington Wizards (née Washington Bullets) players Gilbert Arenas and Javaris Crittenton were busted for playing with guns in the Wizards' locker room. Arenas and Crittenton have been suspended for the remainder of the season.

"We had no prior notice of this ad," said NBA spokesman Tim Frank. "We think it is inappropriate."

Bullseye, Tim! Or should we say, Swish!

Dumb-o-meter score: 75 -- Here's our question: Can we still call Pete Maravich the "Pistol?"

Icahn's (Block) Bust

Activist investor Carl Icahn isn't even waiting for the credits to roll before exiting the flop that is Blockbuster (Stock Quote: BBI).

Icahn relinquished his seat on Blockbuster's board last Friday, five years after he launched a proxy battle that resulted in his winning three board seats, and three years after he ousted then CEO John Antioco. Icahn cited Institutional Shareholder Services guidelines regarding how many directorships he can hold for his exit.

Yeah, right. Like good old Carl really cares about what an advisory firm like ISS has to say when it comes to corporate governance. And Lindsay Lohan will win the Oscar for Best Actress this year.

No, what really led to Icahn's exit was the movie rental chain's stock sinking to 45 cents from the $10 range it was trading at when he started hammering Antioco over an excessive pay package and his direction for the company. In the end, it seems that neither Icahn nor his flunkies could turn this Titanic around (and we're not referring to the box office smash James Cameron movie).

In a letter to Blockbuster's current CEO Jim Keyes, Icahn told the Blockbuster chieftain that he "greatly enjoyed working with you, the board and the management." In response, Keyes called Icahn a "valuable director and a tremendous resource to the board and the management team."

That's laughable. We don't see where he added any value. And we certainly don't think Icahn will be winning best director for his work on Blockbuster any time soon.

Dumb-o-meter score: 80 -- One day they will make a movie about the failure of Blockbuster. And we will be sure to rent it on Netflix (Stock Quote: NFLX).

Amazon's Sob Story

Amazon.com (Stock Quote: AMZN) wanted a loss leader to sell more Kindles. Instead, it was thrown for a loss by a fed-up publisher.

Amazon announced on Monday it will submit to the demands of publishing giant Macmillan and agree to sell digital versions of its books at prices it claims are too high. The online bookselling behemoth yanked new Macmillan titles last week after the publisher posted a new, higher pricing model for its e-books.

Amazon charges just $9.99 for bestsellers on its Kindle e-reader. Macmillan and other publishers complain the price is too low and hammering their hardcover sales. Under Macmillan's model, to be put in place in March, e-books will be priced from $12.99 to $14.99 when first released and prices will change over time.

"We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books," said Amazon in a posting on its online Kindle Forum.

Kindle this, Amazon. Not that we disagree with lower prices, but please save us the martyr act. Your so-called capitulation has less to do with fighting for consumers than to keep competitors like Barnes & Noble, Sony Corp. and, most especially, the Apple iPad from challenging your own dominance in this rapidly expanding device market. A more competitive market, in our opinion, will eventually lead to better pricing and increased choice for e-book readers everywhere. We have seen enough gadgets and gizmos come and go to determine that much is true.

Moreover, most analysts believe the higher prices Amazon says were foisted upon them by Macmillan will ultimately lead to higher profits for both parties. So the last thing we want to hear is whining from Amazon. And we certainly don't want to see anymore books pulled from the shelves, electronic or otherwise.

Dumb-o-meter score: 85 -- Cry us a river, Amazon.

Wal-Mart Assaults Battery Maker

Here's yet another one for the "don't put all your eggs in Wal-Mart's basket" file.

Shareholders of battery-maker Exide Technologies (Stock Quote: XIDE) received more than a jolt Wednesday when their stock slid nearly 30% after the company missed Wall Street's profit expectations by 33% and, even worse, said Wal-Mart (Stock Quote: WMT) will stop buying its products.

Yep, it's the same old story. Wal-Mart giveth. And Wal-Mart taketh away. Big time.

As for the earnings disappointment, Exide's third-quarter net income fell to $9.8 million, or 12 cents a share, from $15.4 million, or 20 cents a share, last year. Analysts expected earnings of 16 cents a share, according to Thomson Reuters.

Wall Street's disenchantment pales in comparison to that of Exide's management, however. In its earnings announcement, Exide admitted that Wal-Mart purchases currently represent "a significant portion of the company's Transportation Americas sales" and the order phase-outs will continue into the third quarter of fiscal 2011.

CEO Gordon Ulsh tried to put on a brave face in a statement, saying that Exide hopes "to regain some or all of this business in the future."

Gordon, we too hope you get all Wal-Mart's business back. And once you do, we look forward to having you back on the Five Dumbest list the next time they drop you.

Dumb-o-meter score: 90 -- Wal-Mart. Can't live without them. Can't live without them.

Toyota's Troubles

When the going gets tough, Toyota (Stock Quote: TM) executives get tongue tied.

As Toyota mechanics struggle to fix the gas pedal problem that led to the recall of millions of cars, the company's executives worldwide are having an even harder time repairing Toyota's good name.

"This is embarrassing for us to have ... this kind of recall situation," Jim Lentz, president of Toyota Motor Sales USA, told reporters. "But it doesn't necessarily mean that we have lost our edge on quality."

Come on Jim. You've got to be kidding us. That's exactly what it means! On Tuesday, Toyota U.S.A. reported its January sales plunged 16% compared with last year, while Ford's rose 25% and GM's sales popped 14%.

Meanwhile, half a world away in the land of the rising sun and the home of the falling automaker, Toyota's president Akio Toyoda was not helping matters. Toyoda was blasted by Japanese critics after he decided not to attend a slapdash press conference addressing the multi-million vehicle recall. Unable to stand the heat, he got out of the kitchen, sending Toyota's executive vice-president in charge of quality control, Shinichi Sasaki, to be grilled in his place.

Sasaki said that Toyota was working hard behind the scenes to fix the problem, but it was a prompting by the U.S. Department of Transportation that "greatly helped to push us to act swiftly on the problem."

Eureka! We found the working accelerator at Toyota. It's the DOT!

"Why did we decide to take action now suddenly? That's because, to be honest, there was fear that if we continued our study on this any longer our credibility could be questioned," remarked Sasaki.

Please tell us Mr. Sasaki, how's that working out for you?

Dumb-o-meter score: 95 -- Lentz told the media Monday the latest repairs 'solve the issues that we know of.' Boy, that sure makes us want to run out and buy a Toyota.

Report: Toyota to Recall Prius Hybrid

The Associated Press — Fri, 05 Feb 2010 12:03:45 -0500

TOKYO (AP) — Toyota Motor Corp. will recall 270,000 Prius hybrid vehicles over brake problems in the U.S. and Japan, a leading newspaper said Friday.

The recall would affect the new Prius hybrid model, which went on sale in the U.S. and Japan in May 2009, Japan's top business newspaper, Nihon Keizai, reported.

It said Toyota would soon notify Japan's transport ministry and the U.S. Department of Transportation of the recall.

Japanese public broadcaster NHK also said Friday that Toyota was considering a recall of Prius hybrids in the U.S. and Japan.

Takayuki Fujimoto, a transport ministry official, said the government has yet to receive a recall notice from Toyota. Toyota cannot announce a recall in Japan until it notifies the ministry.

Toyota spokeswoman Ririko Takeuchi said Friday that Toyota had not yet decided whether to recall the Prius.

"Nothing has been decided on whether we will recall or not," Takeuchi said.

More than 170,000 of the new Prius models have been sold in Japan. Around 103,000 have been sold in the U.S. since last May.

Toyota acknowledged Thursday design problems with the brakes in its prized Prius, adding to the catalog of safety woes at the Japanese automaker as it reels from global recalls of nearly 4.5 million vehicles for faulty gas pedals.

Toyota said it had corrected problems with the antilock brake system in Prius models sold since late last month, including those shipped overseas.

But the company said it was still deciding what steps to take to fix the problem in Prius cars sold in Japan and overseas before late January.

A total of about 180 complaints about braking problems in the Prius — the world's top-selling gas-electric hybrid — have been reported in the U.S. and Japan.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Should You Hire a FAFSA Expert?

Brian O'Connell — Fri, 05 Feb 2010 11:22:03 -0500

In a lean and mean economy, the Free Application for Federal Student Aid is a great vehicle for gaining access to all the college aid that Uncle Sam offers. But like most government documents, you’ll need to channel your inner Sherlock Holmes to navigate it.

To make sure you get all you can from your FAFSA filing, should you hire a financial adviser to act as a FAFSA tour guide? Here’s a look at both sides of the issue.

First, while the FAFSA is free, it’s going to cost you a few bucks to hire a college financial aid consultant. A one-time meeting to cover the basics should run about $100, but an in-depth review of the FAFSA can cost more — way more. Some financial aid consultants charge as much as $1,000 for a more comprehensive take on the FAFSA.

Still, with the average price of a four-year private college at $25,143 in 2009, according to the College Board, every penny counts when it comes to college financial aid. So if a seasoned financial aid professional can dig up several thousand dollars in FAFSA funds, then you’re way ahead of the game.

Before you begin vetting possible FAFSA consultants, know that the government has a decent online resource center. The site has tutorials on understanding the form, and offers access via “chat sessions” with its own team of FAFSA experts. It’s all free and that alone might give you all the information you need to maximize your FAFSA efforts.

But if it’s not, and you want to hire your own financial aid guru, make sure to:

Hire a FAFSA consultant who can fill out the FAFSA form for you. Anyone who claims to be a college funding expert, but doesn’t fill out the form for you, isn’t the expert you thought.
Contact the campus financial aid office of the college you’re targeting. Ask if they can refer a loan consultant, or at least can tell you if a specific FAFSA consultant has a good or bad reputation.
Look for an insider. Most likely, your best bet is a FAFSA expert who has worked in a college financial aid office or who has experience as a financial adviser or accountant. That kind of hands-on training is what you’re looking for in a financial aid consultant.
Avoid unscrupulous advisers. College funding experts who recommend that you fudge the numbers on your assets or ask you to take other unethical steps are a big red flag. You and you alone will be held liable if you lie about assets or otherwise hide financial information to cut a better deal.

If you have the time, the Sallie Mae Web site listed above should suffice. If not, go ahead and hire a FAFSA expert to do the job for you — but tread carefully.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Dollar-Cost Averagers: How to Invest in ETFs

Jeff Brown — Fri, 05 Feb 2010 10:45:28 -0500

Exchange-traded funds have been soaring in popularity, except with one group: people who invest small sums in strategies using dollar-cost averaging. Now that’s changing, as Fidelity Investments joins Charles Schwab (Stock Quote: SCHW) in offering commission-free trading on some ETFs, eliminating a sizeable cost for small investors.

On Feb. 3, Fidelity began offering commission-free trading on 25 iShares ETFs. Last November, Schwab announced a commission-free policy for eight of the firm’s own ETFs.

It’s a welcome development, but dollar-cost averagers need not limit themselves to the handful of commission-free ETFs. It’s easy to set up a program for using any ETF in a routine-investment program without incurring excessive fees.

ETFs are like mutual funds, except they are traded like stocks. That has long meant incurring a broker’s commission with every purchase or sale. Even with a deep discount broker charging a typical rate of $13 a trade, commissions can chew into an account if you invest only $100 or $200 at a time. For anyone investing $25 or $50 at a time, a $13-per-trade commission would make ETFs very unattractive.

That’s too bad, given that ETFs typically offer rock-bottom expense ratios and great tax efficiency.

Commissions aren’t a problem with no-load mutual funds bought and sold directly with the fund company, as there are no sales changes. Some brokers offer commission-free mutual fund trades as well.

Dollar-cost averaging means investing a specific sum at regular intervals, such as once a week, month or quarter. The fixed amount buys more shares when prices are down, fewer when prices are up. That helps minimize the average cost of purchasing shares. And the regular investing schedule imposes discipline, helping the investor overcome the temptation to time the market.

Most 401(k) investors use dollar-cost averaging, even if they don’t know the term. For investors using IRAs or taxable accounts, many mutual fund companies and brokerages will set up an automatic investing program, sweeping money into a fund from a money market or bank account.

No-commission trading from Schwab and Fidelity eliminates the biggest obstacle to investors who want to buy ETFs in small chunks. But what if you want to invest in any of the more than 900 ETFs that still require commissions?

One obvious option is to look for comparable mutual funds. Since most ETFs are index-style investments that track specific market sectors, most have mutual fund cousins.

But if you really want the low costs and tax efficiency offered by most ETFs, while still investing only a small sum at any given time, the solution is to create a cash way station. Have a sum automatically put into a money market account at the fund company or brokerage every week or month. Then draw from that account for ETF purchases at a longer interval, such as every three or six months.

If you invested $100 in an ETF every week, paying a $13 commission each time, commissions would equal 13% of your investment — perhaps one or two years’ worth of investment growth. If you instead invested $1,300 a quarter, commissions would total $52 a year instead of $676. Commissions would then equal only 1% of your annual investments.

There is a downside: Your money is sitting in a cash account earning virtually nothing for as long as three months, and you’d miss any gains your ETF could provide during that time.

But in the long run it’s likely the commission savings would more than offset the gains missed during the quarter. After all, if you put money aside every week, half of the cash awaiting the quarterly ETF investment would wait for only half a quarter, just six weeks.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Forget the Super Bowl, Go Skiing

Seth Fiegerman — Fri, 05 Feb 2010 10:36:13 -0500

Not a big football fan? Or did your team just not make it to the big game? Well, that could be for the best.

While the rest of the country is watching the Super Bowl this Sunday, you can take advantage of some sweet ski deals. For the third year in a row, Liftopia is offering its Super Bowl Lift Ticket Sale.

There are 44 amazing deals this year (appropriate, since it’s also Super Bowl 44) on most of the big ski resorts across the country, and some in Canada. The tickets are for Sunday only and cost as little as $19. Even big name places like Killington in Vermont are 30% off ($55).

Some other notable deals include 64% off the Canaan Valley Resort in West Virginia, 33% off the Sun Valley Lodge in Idaho ($55), 32% off Mont Tremblant in Quebec ($53).

The only catch is you have to book the deals in advance by the end of the day Saturday, Feb. 6 in order to ski on Sunday. But I suggest you book as soon as possible, some of the deals have already sold out.

For more information, go here.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Tax Tips: Gifts That Keep on Giving

Robert D. Flach — Fri, 05 Feb 2010 07:00:00 -0500

You can deduct as a charitable contribution on Schedule A the following items:

Cash or property given to a qualified tax-exempt church or charity created or organized in the U.S. or any U.S. possession. You can find out if a charity is qualified at the IRS Web site.
Out-of-pocket expenses connected with donations or volunteer service to a qualifying church or charity, such as the cost of the ingredients of homemade cookies or a cake donated to a church bake sale and the costs to purchase and launder uniforms for a scoutmaster.
Travel and transportation expenses incurred while performing a volunteer service for a qualifying church or charity. If you use your car you can deduct 14 cents per mile plus any parking fees and tolls.
The portion of the cost of a ticket to a fundraising event that exceeds the “fair market value” of any goods or services you receive. If a ticket to a fund-raising dinner is $100, and the cost of the dinner is $35, you can deduct only $65.

For contributions of $250 or more made in any one day to a charity you must have a written acknowledgement from the church or charity with its name and address, the date and amount of the contribution, and a statement that you were provided any goods or services by the charity in exchange for the donation.

Additional special rules exist for cash contributions and for donating a car to charity.

Movin' Out: The Least Popular States

Kali Geldis — Fri, 05 Feb 2010 07:00:00 -0500

A new study by United Van Lines highlights moving rates, showing which states are being flocked to (and which ones have residents going AWOL).

Happiness Index: Midwest Dominates

MainStreet.com Staff Writers — Fri, 05 Feb 2010 07:00:00 -0500

In the wake of the latest jobs numbers, MainStreet presents the latest installment of the Happiness Index. Where does your state fall?

Bernanke's Concerns: Unemployment, Foreclosures, Credit

The Associated Press — Thu, 04 Feb 2010 16:04:38 -0500

By Jeannine Aversa, AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke expressed concerns Wednesday about the economic recovery during a ceremonial swearing-in for another four-year term.

In brief remarks to staffers, Bernanke said that while the economy is growing, "far too many people remain unemployed, foreclosures continue at record rates and bank credit continues to contract."

One of the Fed's challenges is protecting its independence from congressional meddling, he said.

Another is making the Fed more open and accountable about its operations. And another is improving its oversight of banks. Lawmakers have complained about deficiencies in those areas.

The Fed "cannot hope" to solve the nation's economic problems on its own, Bernanke said. Both the nation and the central bank as an institution face enormous challenges, he said.

The closed-door event was held at the Fed's stately headquarters. Vice Chairman Donald Kohn administered the oath of office as Bernanke's wife, Anna, looked on. (Because Bernanke's second term is a reappointment, he was not required to be sworn in again. His second term started Feb. 1.)

Bernanke won Senate confirmation for a second four-year term last week — but only after being skewered by some lawmakers for helping rescue Wall Street while ordinary Americans suffered in recession. The 70-30 vote was the closest vote ever for the post.

Bernanke's confirmation battle has been a test of Fed independence. The central bank's decisions on interest rates carry immense consequences for the economy.

The anti-bailout anger that had eroded Bernanke's support in the Senate could have a lasting impact on the Fed's ability to manage the economy without regard to the political winds, economists and academics say.

The biggest challenge for Bernanke this year is deciding when and how to start boosting record-low interest rates and winding down other support programs, to prevent inflation or a speculative asset bubble.

Last week, the Fed pledged to keep rates at record lows near zero for an "extended period" to nurture the recovery. Some economists say that's at least six more months.

A scholar of the Great Depression, Bernanke, 56, has been widely credited for taking unconventional steps to prevent the Great Recession from turning into a second Great Depression.

Bernanke spent most of his professional career in academia, including 17 years teaching economics at Princeton University. He came to Washington to take a job at the Federal Reserve, working with Chairman Alan Greenspan.

President George W. Bush selected him to be his top economist. After that, he was sent to run the Fed starting in 2006.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Save Money at Hotels & Clean Your Own Room

Seth Fiegerman — Thu, 04 Feb 2010 15:00:00 -0500

We all enjoy a little pampering when we go on vacation, but you can save money if you forego a little luxury.

The Marmara Hotel in Manhattan is currently offering a special “green package.” If customers skip housekeeping for three days, they will receive a $20 discount for each night. But don’t worry, that doesn’t mean you have to live in squalor. We spoke with a customer service representative there who said you are really just put on a “light housekeeping” schedule, meaning that your room will be tidied up on the third night no matter what. (A studio suite here for two adults starts at $230 a night.)

Other hotels are offering similar deals. Michelle Higgins wrote in the New York Times that nearly 150 Sheraton and Westin (Stock Quote: STWD) hotels in North America offer guests a $5 gift card for food and drinks if you decline housekeeping, according to the New York Times.

Of course, there are other ways to think of this $5 discount. According to Higgins, “On a recent stay at the Westin Jersey City Newport in New Jersey, this reporter learned that the $5 credit conveniently canceled out the room service delivery charge.”

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

5 Debts to Avoid in the "New Normal" Era

Brian O'Connell — Thu, 04 Feb 2010 14:04:34 -0500

No doubt about it, some debts are worse than others. A collegiate student loan, for example, can pay off with a fulfilling, high-salary job down the road. That’s good debt.

But a credit card shopping spree at the local mall is forgotten within a week — save for the big bill you’ll get at the end of the month. That’s bad debt.

All told, the total amount of U.S. consumer debt reached $2.5 trillion in 2009, according to the Federal Reserve. That averages out to $8,100 to each U.S. citizen — adult or child. That’s scary debt.

How did we get into this mess? One reason is that consumers, way too often, absorb the worst kinds of debt. These are financial liabilities so worthless and so pointless that they can set consumers back for years with no redeeming value. Let’s take a look at some of the worst offenders.

Credit Card Debt. Yes, it’s no surprise that credit card debt is a major offender. But what consumers may not realize is the derogatory effect of paying only the minimum payment (or “partial payment”) on a monthly credit card bill. Let’s say you owe $10,000 in credit card debt at an interest rate of 18%. If you pay the minimum monthly payment (about 2% of the total debt for most card carriers) it will take you about 57 years to pay the debt off — and that’s assuming you don’t add any new debt.

Auto Loans. It’s no secret that the minute you drive your new car off the lot, it decreases in value (up to 30% according to most statistics). As new cars are depreciating items, it won’t be long before you owe more than your car is worth.

“No Money Down” Household Item Loans. Retailers love those “no money down” loans for things like new refrigerators or bedroom sets. Why? They’re betting that you won’t meet the restrictions embedded in the fine print. Most “no money down” deals state that you must pay the entire amount within a fixed period of time — like one year. If you don’t, the retailer invariably raises the interest rate on your loan substantially, virtually guaranteeing that you’ll pay way more for that refrigerator than you expected.

Groceries. Everyone has to eat, but using a credit card to pay for groceries is a big mistake. Food is a perishable commodity, and two weeks later, those steaks and that bag of M&Ms will be long gone. But the bill will be waiting for you at the end of the month.

“Pay Day” Loans. Where do we start with this one? According to PayDayLoan.org, the annual interest (APR) on payday loans is 400%. In addition, finance charges can cost up to $30 for each $100 borrowed. So, a $300 cash advance on a credit card would carry an annual interest rate of 57%, according to PayDayLoan.org. But a payday loan would carry an annual interest rate of 426%. Stay away — far away — from payday loans.

These aren’t the only examples of bad debt, but they certainly rank among the most egregious. Keep them at arm’s length and watch your back account grow accordingly.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Bank of America Former CEO Charged With Fraud

David Seaman — Thu, 04 Feb 2010 13:59:04 -0500

When it rains it pours on Bank of America (Stock Quote: BAC)!

As though they didn't have enough bad press already (such as angry customers and outraged former employees taking to the Web), CNNMoney now reports that “New York Attorney General Andrew Cuomo unveiled a major legal action against senior Bank of America executives Thursday over its controversial purchase of Merrill Lynch, including bringing civil charges against its former CEO Ken Lewis.”

You remember Ken Lewis. Bank of America’s former CEO got a massive, almost $64,000,000 retirement package when he left the company a few months back amid controversy surrounding the bank’s purchase of Merrill Lynch. Evidently Bank of America may not have been entirely upfront during the acquisition process.

And let's not forget the fact that Mr. Lewis was at the helm as Bank of America foreclosed on American homeowners hit by the downturn... and as the bank's credit card division raised rates (sometimes doubling them) for no apparent reason on long-time customers in good standing. Nice work.

Karma sucks, Mr. Lewis. Although schadenfreude is surprisingly sweet.

UPDATE 2:29 p.m. ET: A spokesperson for Bank of America issued the following statement to MainStreet, via e-mail: "We find it regrettable and are disappointed that the NYAG has chosen to file these charges, which we believe are totally without merit. The evidence demonstrates that Bank of America and its executives, including Ken Lewis and Joe Price, at all times acted in good faith and consistent with their legal and fiduciary obligations. In fact, the SEC had access to the same evidence as the NYAG and concluded that there was no basis to enter either a charge of fraud or to charge individuals. The company and these executives will vigorously defend ourselves."

Teens: Blogging Is So Lame

Seth Fiegerman — Thu, 04 Feb 2010 13:00:00 -0500

Blogging is so last decade.

According to a new survey by the Pew Research Group, only 15% of Internet users ages 18-29 maintained a blog in 2009, whereas 24% of that age group did so in 2007. Part of the reason for this decline is that more young adults are switching to social networking sites where they can post shorter personal updates, also known as micro-blogging.

Yet, there does seem to be a more fundamental shift happening as well. The same study found that just 8% of Internet users ages 12-17 use Twitter. That’s even less than the 9% of people age 50-64 who use it.

So young adults are foregoing longer blogs for shorter posts, and many teens are foregoing shorter posts all together. As one researcher explained to the Washington Post, “Most teens are not interested in being truly public.”

Could this be the beginning of the end for the culture of over-sharing? Probably not. For the time being, it seems that teens are actually relying more on texting. Lee Aase, manager of social media at Mayo Clinic, told USA Today that teens are “so into text-messaging that the niche is already sort of filled for them.”

If you need proof that over-sharing is alive and well among America’s youth, just consider that 20% of teens admit to sexting.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Bloomberg to Drunks: Leave Guns at Home

David Seaman — Thu, 04 Feb 2010 12:11:06 -0500

Michael Bloomberg is so grotesquely rich, if it were possible, he would create a huge electromagnetic field in midtown Manhattan to draw every single firearm away from mischievous bar flies and inebriated rapscallions.

Sadly, we’re not quite there technologically, so the Mayor is taking another route: the law.

In a press release issued by the mayor’s office today, Bloomberg along with state senator Jeffrey D. Klein announced “the introduction of legislation that would make it illegal to carry a gun while intoxicated in New York State.”

The new law would use “the same legal standard as driving while intoxicated to prohibit carrying a gun while drunk.”

Bars in New York sure ain’t what they used to be. You can’t smoke your tobacco treats in bars, you can’t bring guns to bars… I really hope we’re still allowed to play Big Buck Hunter and use the word "money" as an adjective.

Other states have taken a different approach. “The state of Tennessee recently joined 37 other states allowing guns in bars,” notes one report. “Although the new law prohibits consuming alcohol while carrying a handgun, Gov. Phil Bredesen believes mixing firearms with alcohol is an ‘invitation to a disaster.’”

So in Tennessee, you can bring your gun into a bar, but once you start drinking, you’ve got to get rid of it. So I guess if I’m ever in a bar in Tennessee, I know not to mess with the guy sipping Perrier.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

A Retirement Strategy for Nervous Investors

Stan Luxenberg — Thu, 04 Feb 2010 11:58:55 -0500

LOMBARD, Ill. (TheStreet) — Investors nearing retirement live in constant fear of another market collapse, despite last year's rally. To calm your nerves, consider the rock-solid portfolio strategy developed by Norbert Mindel, author of Wealth Management in the New Economy (Wiley, John & Sons 2010).

As a financial adviser in Lombard, Ill., Mindel's aim is to generate reliable income for retirement while soothing clients. All too often, investors panic at market bottoms and dump stocks at the worst time, he says. That happened last year, when many investors shifted to cash and missed the market's rebound.

Mindel recommends that retirees divide their assets among three buckets. The first bucket holds cash for living expenses, and the other buckets are for long-term investments. Say the retiree has $2 million and wants to spend 4% annually, or $80,000. The first bucket would have $240,000 invested in money market funds and certificates of deposit, enough cash to cover three years of living expenses.

When the first bucket begins to run low, the cash can be replenished from the second bucket. That bucket would hold $500,000, with 80% in investment-grade bonds and the rest in diversified stock funds. The third bucket would have about $1 million, with 60% in stocks and the rest in bonds.

Say the stocks in the third bucket drop more than 40% as they did during the recent downturn. The retiree would still have enough assets in the first two buckets to last 10 years.

"The goal is to create a situation where the retiree doesn't have to worry about what stocks will do this year or a few years down the road," Mindel says.

There's a good chance that a portfolio of stocks and bonds will return 7% annually during the next 10 years, says Mindel. If that happens, the assets in the third bucket would double to $2 million, enough to refill the first two buckets and protect the nest egg from being eroded by inflation.

For the most cautious investors, Mindel proposes setting aside 10% of assets in a fourth bucket for insurance. The most important insurance is long-term care coverage. As retirees reache 75, they are more likely to need full-time care and nursing homes can cost more than $10,000 a month.

"The statistics suggest that your portfolio is more likely to be wiped out by long-term care costs than by a bear market," Mindel says.

Some investors may want to hold annuities, Mindel says. Some contracts come with guaranteed returns, giving investors payments for life. "Annuities are complicated and expensive, but some people need to pay the price in order to be assured that they won't outlive their assets," he says.

Mindel describes a recent annuity contract he handled in which a 65-year-old investor paid an insurance company $100,000. Now the retiree will receive annual payments of $6,876 for the next 20 years or the rest of his life, whichever is longer.

Say you have a traditional portfolio that has 60% of assets in stocks and 40% in bonds, and you weathered the downturn without making any foolish mistakes. You may have no reason to rearrange your assets. But there are good reasons to employ some elements from Mindel's design.

If you have sizable holdings in fixed income, as he suggests, your assets will be well-protected. When markets drop, you can remain calm and wait for your stock holdings to rebound.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Barney Frank to Freddie, Fannie: See Ya!

Brian O'Connell — Thu, 04 Feb 2010 11:14:27 -0500

Rep. Barney Frank, chairman of the powerful House Financial Services Committee, says that Fannie Mae and Freddie Mac need an overhaul, and if they can’t or won’t get it, then it’s time to shut both down. But what is his proposal and what could it mean to government-backed mortgage funding?

No doubt about it, Frank is right in the middle of the debate over the government’s role in the massive economic meltdown we’re experiencing. Supporters see Frank as an advocate of reform over an out-of-control Wall Street. Critics point out that Frank took a hands-off policy on loose mortgage lending rules that put millions of Americans into homes they couldn’t afford.

Whatever the take, Frank isn’t shy about the federal government’s role in changing the economic landscape to reduce the chance (he hopes) of another collapse in the U.S. economy.

Case in point: Earlier this year Frank came out with a surprising statement — that the two major government mortgage lending bodies, Fannie Mae (Stock Quote: FNM) and Freddie Mac (Stock Quote: FRE) should be shut down.

"The remedy here is ... as I believe this committee will be recommending, abolishing Fannie Mae and Freddie Mac in their current form and coming up with a whole new system of housing finance," said Frank on Jan. 22. “That’s the approach, rather than a piecemeal one,” he added.

That’s quite a statement coming from the chairman of the House Financial Services Committee. Right now, Fannie and Freddie either own or guarantee about 50% of a whopping $11 trillion in U.S. home mortgages. But the taxpayer-funded lending institutions are in poor economic health, supported by $110 billion in taxpayer aid in 2008 and 2009. According to The Wall Street Journal, both agencies combine to hold $5.4 trillion in mortgage bonds and another $1.7 trillion in unsecured corporate debt. But Fannie Mae has lost more than $120 billion in the past two years and Freddie Mac isn’t far behind — it has lost $67 billion over the same period.

Certainly, stockholders wouldn’t object to the shuttering of Fannie and Freddie. Back in December of 2000, both stocks were soaring — $87.81 alone for Fannie Mae. But today you can buy a share of Fannie Mae at about $1, and a share of Freddie Mac, which traded at a record high of $73 back in 2004, at $1.15.

Taxpayers can’t support these failing agencies forever, and Washington doesn’t seem inclined to push for more taxpayer funding — not in this economy.

Consequently, Frank says the federal government is ready to pull the plug on both agencies. While the House likely won’t act to shut the agencies down in 2010, the groundwork is already being laid (by Congress and the U.S. Treasury Department) for Fannie Mae and Freddie Mac to shut down in 2011.

But what will take the place of Fannie Mae and Freddie Mac is very much up in the air. And that, unfortunately, feeds into even greater uncertainty over the government’s role in the U.S. mortgage lending market.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

A Guide to Engagement Rings

The Associated Press — Thu, 04 Feb 2010 10:56:42 -0500

By Candice Choi, AP Personal Finance Writer

NEW YORK (AP) — One engagement ring costs $1,000. Another is $10,000. You may wonder why there's an extra zero if you can't tell them apart.

For anyone mulling the big question on Valentine's Day, the cost of the ring can weigh just as heavily as making the commitment. The romance of the affair can make it hard to ask blunt questions about whether you're getting a good deal. But failing to do so could mean paying thousands more than necessary.

The average amount spent on an engagement ring last year was about $3,200, according to The Wedding Report. Several factors can move that price up or down, including the shape of the diamond you pick. Then there are the four Cs — carat, clarity, color and cut, the last of which refers to the stone's overall craftsmanship. You should be able to compromise on one or more areas to save and still get what you want.

You'll also want to consider where to get your diamond, and whether the stone is certified.

So don't buy into the idea that price shouldn't matter when it comes to love. Here's what you should know.

CARAT

First off, don't confuse carat with karat. The latter refers to the purity of gold, while a carat measures a diamond's weight. A one-carat diamond weighs about as much as a paper clip and is smaller in diameter than an eraser on a pencil.

Most diamonds you see are a carat or less, although high-end jewelers carry heftier rocks.

Prices jump substantially with size. So a one-carat diamond won't be merely double the price of a half-carat diamond.

A half-carat engagement ring at Tiffany & Co., for example, costs $3,200. If you move up to a one-carat in the same model, the price nearly triples to $9,200. Go for a two-carat version, and it's $28,200.

So if you can't afford a one-carat ring but fear a half-carat is too small, try playing around with the ring design. A ring with three smaller stones will still cost thousands less than a single one-carat diamond ring.

CLARITY & COLOR

A diamond's clarity doesn't refer to how clear it is, but to the stone's natural characteristics such as stress fractures and other blemishes. These marks often are only visible when magnified. So even if a diamond is graded as "flawless," you may not be able to differentiate it from diamonds with lower clarity grades. There will be a huge difference in price though.

For a full list of clarity rankings, check the Web site of the Gemological Institute of America (www.gia.edu), which issues diamond grading reports.

Prices also climb for diamonds that are clearer, or have less color or tint. Color grades range from D to Z. Grades D, E and F are considered colorless; G, H, I and J are near colorless; K, L and M are slightly tinted. Anything below an M grade might have a yellowish or brownish tint.

The average person can't tell the difference between several color grades, however.

"I have a box of 10 diamonds from D through M. When they're sitting face up, nine out of 10 people can't see the difference," said gem and jewelry expert Antoinette Matlins, who is also author of Engagement & Wedding Rings: The Definitive Buying Guide for People In Love.

Remember that the ring band can affect the diamond's appearance too; a yellow gold band can cast a warmer tint, while a white gold band might help mask any unwanted tinting.

CUT & SHAPE

The cut grade is based on the diamond's symmetry, proportions and polish. The cut can have perhaps the biggest impact on the sparkle. It can also affect the diamond's durability, because a thinly cut edge can chip more easily.

The GIA ranks cuts as excellent, very good, good, fair and poor.

Next time you're in a jewelry store, ask to see diamonds of varying cut grades. You'll notice that those with lower grades aren't as brilliant, said John King, chief quality officer at the GIA. That said, you may not be able to tell the difference between one or even two grades — at least not enough to warrant the difference in price.

If you want the best cut possible, you may be willing to compromise on the diamond's shape. Round diamonds are the most popular and usually the most expensive. Go with an oval or pear shape, and you can lower prices by about 15%. You can usually save even more with a princess cut, Matlins said.

CERTIFICATION & RETAILERS

Most diamonds larger than a half carat will be accompanied by a grading report, usually from the GIA or the American Gem Society Laboratories. If the jeweler can't provide a report, proceed with caution.

"The certification allows you to look under the hood of the diamond," said John Baird, a spokesman for Blue Nile, an online diamond retailer.

Most jewelers will magnify the diamond so you can see the identifying traits noted in the report. Some diamonds graded by the GIA are inscribed with the report number.

Matlins also recommends getting your diamond appraised after you buy it, to confirm that the diamond goes with the report and that it hasn't since been damaged.

Finally, you can save if you buy from sites like BlueNile.com, Diamonds.com or Ice.com. Blue Nile's prices are between 20% to 40% lower than mall jewelers, largely because of lower overhead costs. The drawback is that you won't be able to see the diamond before you buy it, although you can return rings for up to 30 days.

Of course, you could simply want the experience of walking into a jewelry store, or the name associated with a high-end jeweler.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Is Now the Time to Buy a Toyota?

Jeff Brown — Thu, 04 Feb 2010 09:23:23 -0500

When it comes to investments, everyone knows the principle of buy low, sell high. But does it work with cars?

The news is full of warnings about Toyota (Stock Quote: TM), which had a massive recall over a sticky gas pedal. Many experts have warned against buying Toyotas until the extent of the problem is better understood.

And many argue it’s also a bad time to sell a used Toyota, or turn one in, because buyers’ worries have depressed resale prices. Car sites Edmunds.com and Kelley Blue Book suggest waiting several months for the worry to dissipate. Edmunds says Toyotas sold at auction are fetching 10% less than they did recently. While Edmunds says that may ease to a loss of 4% to 6%, it could still mean receiving hundreds less on a resale.

Historically, vehicle prices recover after a recall is complete and consumers are satisfied vehicles are safe. In this case, it’s too soon to tell whether Toyotas, generally well regarded until now, will suffer a long-term loss of reputation that could depress resale prices permanently.

On the other hand, some buyers could come out ahead buying new or used Toyotas while prices are down.

The biggest risk of buying now is the possibility that the accelerator problem is only the tip of the iceberg. But there’s no evidence of that so far. Though some worry that quality control has not kept pace with Toyota’s enormous growth, the firm’s vehicles have generally had good ratings from consumers and experts.

Of course, buying a car is never really a matter of buying low and selling high. You inevitably sell for less than you pay. The challenge is to keep that difference as small as possible.

Perhaps the best strategy in this case, as it is generally, is to pay as little as possible and keep the vehicle until it wears out. That means keeping it until it will fetch nothing, or close to nothing, in resale or turn in. But savvy drivers know that the real issue is not a vehicle’s eventual resale value but the cost of driving.

All new vehicles lose value, but not at an even pace. The big plunge comes in the first three or four years, with the average car losing 65% of its value in the first five years, even though it may be drivable for 12 to 15 years, maybe longer.

After the first couple of years, the annual depreciation rate gets smaller. In other words, a car’s value might fall by thousands of dollars between years one and two, but by only a few hundred between years six and seven.

So the smartest play with today’s Toyotas, assuming you want one, is to buy a used model at the depressed price and keep it until it dies. That way, it won’t matter whether resale prices ever recover.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Tax Tips: Don't Take It Personally

Robert D. Flach — Thu, 04 Feb 2010 07:00:00 -0500

There was a time when all interest could be claimed as a tax deduction on Schedule A. This included not only mortgage interest and investment interest but also interest on all kinds of personal borrowing.

Taxpayers with excessive credit card and auto loan interest could realize a substantial tax savings if they itemized, and I had several clients who claimed large deductions for such personal interest each year.

But, thanks to the overhaul of the tax code brought about by the Tax Reform Act of 1986, personal interest is no longer deductible.

The following interest is not deductible on Schedule A:

auto loan interest;
credit card interest and finance charges;
Form 1040, or appropriate state return, tax deficiency interest;
home purchase interest not secured by the residence;
installment loan interest;
life insurance policy loan interest;
pension loans;
and personal loans.

The above types of interest may be deductible on a Schedule C, E or F if it applies to qualified purchases related to a business, rental or farm activity. However, interest paid on Form 1040 deficiencies is never deductible on Form 1040 — even if the deficiency is caused by income reported on Schedules C, E or F.

New Jersey tax pro Robert D. Flach has been preparing 1040s for individuals since 1972.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Great Paying Government Jobs

Seth Fiegerman — Thu, 04 Feb 2010 07:00:00 -0500

Looking for a cool new career? Then start looking at government jobs.

The Biggest Earners on TV & Radio

David Seaman — Thu, 04 Feb 2010 07:00:00 -0500

They are known by millions. And they make millions. Here are the top-earning media personalities.

Who's Hiring Freelancers: Overflow, ACT and Brighten Communications

Bobbi Dempsey — Wed, 03 Feb 2010 16:41:01 -0500

If you need extra money but don't want a staff job, freelance work may be the answer. These days, companies hire freelancers for everything from writing and design to delivery and sales.

Pros and cons: You usually don't get benefits, but can often set your own schedule and may even be able to work from home. The pay is self-employment income, and is viewed differently than normal wages by the IRS. You'll need to file specific tax forms with your annual return – and, depending on what you earn, you might need to submit quarterly tax payments. On the plus side, you can deduct many of your expenses, and may qualify for the home office deduction.

Here are three companies hiring independent contractors right now.

Overflow

What they do: Provider of outsourced call center services.

Freelance opportunities available: Virtual call center agents.

Requirements: Must have good basic computer skills, high school diploma or GED and have a pleasant, professional phone manner. Also must have a high-speed Internet connection.

Hours/Pay: Agents set their own schedules and aren't required to work a minimum number of hours per week, but must set their schedule two weeks in advance. The company pays on a per-call basis. The minimum of paid calls per hour is four, so you will be paid for at least that number even if you receive fewer than that, as long as you were available to take calls. Rates vary, but the current average is $1.40 to $1.70 per call.

Other info: The company especially welcomes applicants who are veterans, disabled or housebound, but specifies that you must have "normal hearing and the use of at least one arm and hand."

Apply here.

Next Page: ACT

ACT

What they do: Provider of assessment, research and program management tools in the areas of education and workforce development. Known mainly for their ACT standardized tests taken by many college-bound high school students.

Freelance opportunities available: Test readers and question writers.

Requirements: Must have bachelor's degree and preferably have recent teaching experience, especially at the high school level.

Hours/Pay: Pay averages at least $12 an hour and is based on several factors, including speed and quality of work.

Other info: They also need freelancers to help with their workforce development tests. Experience with workforce testing is preferred, but they also welcome candidates with any specific industry experience, such as expertise in automotive, manufacturing or health care.

Apply here.

Next Page: Brighten Communications

Brighten Communications

What they do: Telemarketing firm specializing in business-to-business calls.

Freelance opportunities available: Telemarketers.

Requirements: Previous telemarketing and cold calling experience, PC with high-speed Internet access and Windows XP or Vista and a quiet working environment.

Hours/Pay: Agents work 20 to 40 hours per week. They can choose their own hours, but work must be done between 9 a.m. eastern time and 5 p.m. pacific. Starting pay is $12 an hour, but the company says many experienced agents are making $16 an hour.

Other info: The company has compiled statistics on the average number of calls sales agents should be able to make, and you will be compared to those standards. There are reward bonuses for the top-performing agents.

Apply here.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Coupon Wars: Groupon Gets Ripped Off

Seth Fiegerman — Wed, 03 Feb 2010 16:02:31 -0500

Groupon has played a big role in making coupon collecting cool again, but recently, the site has experienced some drama.

Unlike the vast majority of coupon Web sites out there which offer a long laundry list of deals on everyday items, Groupon focuses on bargains for fun activities. Each day, Groupon members in 30 different cities nationwide get one great deal e-mailed to them. In New York, today’s deal is half off a Bollywood dance course, in Los Angeles, the current deal is for half off a set of three gym classes. Besides these, they’ve also offered discounts on ski trips and places to dine out with friends. So far, more than 1.6 million coupons have been purchased since the site launched in late 2008.

The secret to Groupon’s formula is the idea of collective buying. The deals only go into effect once a certain number of people have signed up to pay for them. This way, users will feel compelled to get friends and family to sign up for the deals as well. In turn, Groupon partners with these businesses and is able to guarantee them a certain amount of cash up front. It’s a win-win strategy for businesses and customers, but there has been one downside for Groupon. The success of their site has spawned a fair share of imitators and, as far as Groupon is concerned, blatant rip offs.

The most recent example of this is SocialBuy. Like Groupon, SocialBuy partners primarily with hospitality businesses to offer deals on a ticking clock and is founded on the notion of collective buying. This might not seem so egregious if the layout of the site itself did not also appear to be an exact replica of Groupon (judge for yourself.) When we brought this site to the attention of Groupon’s CEO and founder, Andrew Mason, he did not seem pleased.

“We have a patent on all of this so everything they are doing is illegal,” he said. Mason told us other sites had blatantly ripped off Groupon’s look and formula in the past, including a little known site called Nopuorg.com, which is actually Groupon spelled backwards. But while Nopuorg seems to be a mostly playful and probably defunct site (we e-mailed their contact and the message bounced back,) SocialBuy is really looking to make a name for itself.

“We are trying to bring back the good times,” said Eli Natan, the Marketing Director of SocialBuy. “This site is intended to compliment Groupon, not to replace it.” But Natan and his company may have a fight on their hands down the road.

When we asked Mason if Groupon would take legal action against SocialBuy, he said he had no comment. But that didn’t stop him from taking a jab at the site. “We don’t spend a lot of time worrying about people whose primary competency is their ability to carbon copy something,” he said. He then went on to compare SocialBuy to imitation “Chinese ipods.”

Natan, who is only 24 and worked a bit in social media before this, admits that Groupon was a big influence on his site. He and some partners originally brainstormed the idea for SocialBuy over drinks after coming across Groupon. “The business model for our site is the same [as Groupon] in terms of the way we are conducting our transactions,” he said. “But we feel we are positioned differently, that our branding is different and our niche focus is different.” In particular, Natan notes that Groupon mainly offers deals in big cities, whereas SocialBuy is focusing more on “hyper-local” bargains in neighborhoods. (So far, they only offer deals in California.)

Mason doesn’t buy this explanation though. “When we started marketing ourselves, we said that we weren’t local, that we were in cities, so now other sites are saying the reverse,” he said. But as Mason points out, Groupon already offers local neighborhood deals in D.C. and Los Angeles.

When we asked Mason to elaborate on future plans for Groupon, he declined, saying he doesn’t want sites like these to steal more of his ideas. Meanwhile, SocialBuy has no plans of going away and told us they plan to expand to San Diego and Phoenix and hopefully more places after that.

Whichever way this cat fight turns out, for the time being, coupon collectors have plenty of options.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

As Economy Sours, Cheap Booze Sales Rise

The Associated Press — Wed, 03 Feb 2010 14:54:06 -0500

By Emily Fredrix, AP Food Industry Writer

NEW YORK (AP) — Americans' love affair with top-shelf booze cooled last year as the recession took a toll on high-priced tipples.

People drank more liquor but turned to cheaper brands, according to a report by an industry group. They also drank more at home and less in pricier bars and restaurants in an effort to save money.

Industry growth slowed in 2009, with the amount of liquor sold by suppliers up 1.4%. That's the smallest increase since 2001 and below the 10-year average of 2.6%.

The lowest-priced segment, with brands such as Popov vodka that can go for less than $10 for a fifth, grew the fastest, with volume rising 5.5%, after edging up 0.6% in 2008. Meanwhile, the most expensive brands, priced roughly $30 or more for a 750 ml bottle (think Grey Goose, owned by Bacardi), fell the most, tumbling 5.1%.

Liquor suppliers reported flat total revenue of $18.7 billion last year, the Distilled Spirits Council of the United States said in its report Tuesday.

Kenneth Jolly of Milwaukee has been swapping his favorite liquors such Patron tequila, for cheaper brands such as Jose Cuervo. For him, it's simple math.

"If you consume a lot on a regular basis and you have people come to your house, you have to adjust," said Jolly, a 27-year-old network technician in Milwaukee who buys liquor every other week. "If your body can take it, you might as well buy the cheaper liquor."

Sales in stores — which make up three-quarters of liquor sales — rose about 2.1%, while sales in restaurants fell 3%.

"People still want to entertain themselves, they still want to get together with family and friends, so a lot of people will move from a restaurant to their living room," to save money, council President Peter Cressy said.

Vodka remained Americans' favorite liquor. The $4.56 billion spent on vodka accounted for almost a third of all spirits sold.

Sales volume for the cheapest versions of tequila rose 21%, the fastest of any type of spirit. That's most likely because entertainers are using pre-made margarita mixes to serve at home, said David Ozgo, the council's chief economist. Plus you can mix it before guests arrive, so they don't know what brand you use, said Joan Holleran, director of research at research firm Mintel.

Cressy said the fact that people were still drinking more spirits bodes well for the industry, still recovering from a long decline from the 1980s through the mid-'90s, when liquor sales fell by a third as drinkers turned to beer. Since then, an ever-increasing array of expensive liquors have fueled rapid growth.

The industry's goal to keep people drinking spirits — no matter the price — and it can then get them to pay for higher-priced drinks when the economy recovers. Most major liquor manufacturers make brands in a variety of price ranges. For example, industry giant Diageo plc, based in London, makes vodka brands ranging from cheap Popov to midpriced Smirnoff to expensive Ketel One and Ciroc.

Mintel's Holleran expects people to start going out more this year, as they get bored staying home and want to treat themselves to little luxuries — like a night out. "You want to go out and have someone do all the work for you," Holleran said.

Of course, switching brands isn't the only way to economize.

Matt McCluskey, a 28-year-old researcher in Santa Monica, Calif., started buying most of his alcohol at Costco, trying to save money by buying bigger bottles. Now he spends $36 for 1.75 liters of Maker's Mark bourbon, rather than $25 for less than half that at his local liquor store.

"It's a lot harder to pour. That's the only drawback," he said.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

An iPhone App for Homebuyers

Brian O'Connell — Wed, 03 Feb 2010 14:26:01 -0500

The iPhone is off the hook, with 40 million users at the end of 2009, according to Apple.

A big reason why is the number of useful applications that iPhone users can download at the touch of a finger.

For users in the market for a home, one new iPhone app promises to make the process of looking for a new house much easier.

It’s called the Realtor.com “Home Search” iPhone App, and it leverages GPS technology to give users direct access to 4 million homes nationwide, with new listings updated every 15 minutes. According to the Realtors.com Web site, the new real estate allows iPhone customers to:

Find an actual property for sale via the apps GPS technology;
Snap pictures of the home;
Take specific notes about the property and store those notes in the application’s database;
Send a link to friends and family (or to a real estate agent) via e-mail, Twitter or Facebook.

Users who want more specific information or, what the heck, want to make an offer on the home can also reach the listing agent via the application’s “ask a question” button.

That’s pretty cool, but there’s one better. If an iPhone user wants to get over to the property and conduct an on-site inspection, the application has an “Open Houses Nearby” tab (limited to a 20-mile radius) that maps out the area and guides the buyer to the home through an embedded GPS tracking tool.

You can limit your home searches by geography, price, house size or other key metrics. The application’s scope is fairly impressive – Realtor.com pulls U.S. house listings off a network of more than 900 multiple-listing services, with up-to-the-minute price changes included.

The real estate app is compatible with the iPhone 3.0 or higher, and the iPod Touch.

The takeaway? According to real estate industry figures, it takes an average of 12 weeks and a visit to 16 houses before home shoppers find the house they want.

At the very least, the new iPhone app should cut some time, and some frustration, out of the home-buying process.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Small Biz Tax Incentives Take Center Stage

Carmen Nobel — Wed, 03 Feb 2010 14:19:37 -0500

BOSTON (TheStreet) — President Barack Obama focused part of his State of the Union address proposing tax incentives for small businesses, acknowledging that, lately, "it seems like bad behavior on Wall Street is rewarded but hard work on Main Street isn't."

While tax cuts, if Congress passes them, might spur growth at companies with fat order books looking to reduce costs, they would provide little solace to broken businesses that have no money left to spend.

The president reiterated initiatives he introduced in a speech at The Brookings Institute in December. He proposed tax breaks for small businesses that hire new employees and raise wages, and "while we're at it, let's also eliminate all capital-gains taxes on small-business investment and provide a tax incentive for all businesses, large and small, to invest in new plants and equipment," he said.

Taxes are a concern for small businesses, rating second only to poor sales as the most important problem they faced last year, according to a January report from the National Federation of Independent Businesses, which surveyed 830 small-business owners. Bill Rys, tax counsel for the NFIB, says tax cuts may encourage small businesses on the fence about whether to add employees, but only if they see the benefits right away such as rolling deductions into payroll taxes.

"We've suggested for about a year now, since when we were debating the first economic recovery bill, that a payroll-tax holiday would provide a lot of relief," Rys says.

Tax incentives might not be enough to spur capital expenditures. Only 18% of surveyed business owners plan to buy equipment in the next few months, according to the NFIB.

"Capital equipment and facilities purchases tend to be major decisions for small businesses that require building a business case, cash-flow analysis and a good bit of advance planning," says Ron Seide, president of Summit Data Communications, a small technology hardware business in Akron, Ohio that has increased its workforce by 30% in the past year. "If the business case and the cash isn't there, no amount of tax breaks will result in an expenditure on new capital equipment and facilities."

And tax incentives won't help companies that can't justify new employees because there's no work for them to do.

"Every person and business would like to keep more of the money they make," says Dave Shulman, one of six employees at The Environmental Technology Center, a small electronics-systems integrator in Boston. "That being said, taxes are not causing the problem for small businesses. The decline in business is the major issue for small businesses. For a small business, sales drive the company. Everything else is a high-class problem. If there's no work, there's no money and no taxes."

Obama acknowledged that small businesses are dangerously short on funds and offered a proposal similar to that of the Bank on Our Communities Act of 2009, sponsored by Oregon Sen. Jeff Merkley, which is under Senate consideration. Obama proposed taking $30 billion of the money repaid by bailed-out Wall Street banks such as Citigroup (Stock Quote: C) and AIG (Stock Quote: AIG), and using it to fund small-business loans from community banks to "give small businesses the credit they need to stay afloat."

"When you talk to small-business owners in places like Allentown, Pa., or Elyria, Ohio, you find out that even though banks on Wall Street are lending again, they're mostly lending to bigger companies," Obama said. "Financing remains difficult for small-business owners across the country, even though they're making a profit."

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Toyota’s Confusing Catch-22 Recall

David Seaman — Wed, 03 Feb 2010 14:15:03 -0500

As reported by CNN, “Department of Transportation Secretary Ray LaHood told lawmakers Wednesday that Toyota owners should stop driving cars affected by the recall and bring them back to the company.”

This was, earlier this morning, a story that received CNN.com’s bright yellow BREAKING NEWS treatment — so it’s definitely very important, guys.

Unfortunately, LaHood’s advice is also a bit confusing. How can you get your car to the dealership, when he doesn’t think you should be driving it at all? Bit of a Catch-22, no? (LaHood has since told the media he misspoke, and that you can drive your car to the dealership. Hurray!)

On a more positive note, though, this could be the perfect opportunity to touch up on your macro psychokinesis skills. Macro-PK, for the uninitiated, is the ability to move large objects using only mind power.

If you think this recall is bad, wait till you hear about some of the worst ones in history. Click here to check out MainStreet’s story on epic car failures.

Also, I may be a bit premature here, but I’m calling an Audi on this one: it will take Toyota years to get over the bad press wrought by this whole “our gas pedals sometimes kill innocent families” thing. Sales at rival automakers Ford and Nissan were up substantially last month.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Obama's $3.8 Trillion Budget Gets Pushback

The Associated Press — Wed, 03 Feb 2010 14:00:49 -0500

By Stephen Ohlemacher & Tom Raum, Associated Press Writers

WASHINGTON (AP) — Top administration officials tried to steer President Barack Obama's new $3.8 trillion budget through a congressional minefield on Tuesday as the day-old plan drew fire from Republicans and Democrats alike.

In the first test of the spending blueprint on Capitol Hill, Democrats took shots at the budget's proposed hits on some favored programs, including cancellation of the U.S. mission to return to the moon and a spending freeze on Army Corps of Engineers projects.

Republicans generally contended it didn't go far enough to trim deficits while increasing taxes too much.

New Hampshire Sen. Judd Gregg, the top Republican on the Senate Budget Committee, said Obama's promise to freeze some domestic spending for three years was more symbolism than substance. "Sure, it's the right sentiment but it doesn't get you anywhere," Gregg said. "It's small ball. It's not even a bunt."

However, in one sign of possible common ground, Senate Finance Committee Chairman Max Baucus, D-Mont., suggested there is budding bipartisan support for Obama's proposal to give companies a $5,000 tax credit for each new worker they hire in 2020.

"We need to work on legislation that will create jobs," Baucus said. "And we need to work across the aisle, so that the legislation on which we work can become law."

That sentiment was echoed by Treasury Secretary Timothy Geithner, who told the Finance Committee he sees a consensus building among both Democrats and Republicans that "deficits matter, tax cuts are not free."

"The American people want to see their leaders coming together and bringing practical solutions" to the problems created by the worst economic downturn since the 1930s, Geithner said.

Even so, Obama probably won't be able to count on support for his jobs bill from one Republican senator who has worked with Democrats in the past.

Sen. Olympia Snowe, R-Maine, blasted the idea for the $5,000 tax credit, saying businesses won't hire workers until they need them. "Who is going to take the risk?" she asked.

For the most part, Obama's team found itself more often on the defensive as it sought to promote the day-old budget for the fiscal year that begins next Oct. 1. The expressions of skepticism and complaints across party lines showed how difficult it will be for Obama to win election-year support for his new spending plan, even from members of his own party.

A key topic of controversy at Tuesday's hearings: Obama's proposal to use $30 billion in funds from the bank bailout program, the Toxic Assets Relief Program, for small businesses. The proposal, which Obama was outlining at an appearance in Nashua, N.H., would use some remaining TARP money to invest in community banks to encourage them to lend to small businesses.

Gregg argued that TARP money repaid by banks is by law supposed to go toward paying down federal debt. "It's not for a piggy bank because you're concerned about lending to small businesses," Gregg told White House Budget Director Peter Orszag.

Orszag told Gregg the administration was well aware of the provision in the TARP legislation requiring money to be paid back and anything extra used to pay down the national debt. That's why the administration is seeking legislation to authorize the $30 billion program, Orszag said.

But separately, Sen. Maria Cantwell, D-Wash., told Geithner the administration shouldn't wait for legislation to OK such loans, it should just extend the money — as it had done in using TARP funds to help bail out automakers and big Wall Street banks.

The government "put the screws to the community banks and gave all the money to the big banks. Right now people are cutting lines of credit to small business," Cantwell complained.

The administration has proposed a $90 billion tax on big banks over ten years to help recoup losses from the TARP program. Geithner told the Senate Finance Committee the U.S. might have to extend such a tax — the administration calls it a "fee" — beyond the ten years if the U.S. hasn't recouped the cost of the financial rescue by then.

The Democratic chairman of the Budget Committee, Sen. Kent Conrad of North Dakota faulted the administration for not doing enough to stanch the deficit flood. Conrad said the administration doesn't do nearly enough to address out-of-control deficits in the next few years.
"I don't see the focus on bringing down that long-term debt," Conrad said. Years of deficit spending, aggravated by the recession and two wars, have swollen the national debt to a whopping $12.1 trillion.

Sen. Patty Murray, D-Wash., challenged the administration's proposal to include Army Corps of Engineers public works projects in its three-year spending freeze. And Sen. Bill Nelson, D-Fla., railed about the decision to eliminate NASA's program, initiated by former President George W. Bush, to send astronauts back to the moon.

Administration officials went before three separate Senate Committees — Budget, Finance and Armed Services — to defend and promote the new budget.

Defense Secretary Robert Gates told the Senate Armed Services Committee the $768.2 billion defense part of the budget would help pay for "a broad portfolio of military capabilities" as it fights wars in Afghanistan and Iraq.

Gates also said the spending would also help the United States "prepare for a much broader range of security capabilities" for the future.
Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, told the panel that the war in Afghanistan is now the Pentagon's top priority. "The Afghan people are the center of gravity and defeat of al-Qaida the primary goal," he said.

Associated Press writer Andrew Taylor contributed to this report.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Banking Deals of the Week: Feb. 3

Brian O'Connell — Wed, 03 Feb 2010 13:52:41 -0500

Foraging for decent bank deals these days is like panning for gold in your bathtub — it passes the time but you’ll be more disappointed going out than you were going in.

OK, we’re half-kidding. There are some good bank deals out there but they’re really beginning to thin out. Many banks are cutting the rates on certificates of deposit and bank savings and checking accounts. So last year’s 3% CD rate is now this year’s 2.5% CD rate — if you’re lucky.

Of course, the primary reason is the lousy economy. The federal government says it must borrow $1.6 trillion in 2010 — that’s approximately $15,000 for every U.S. household. Our national debt burden, according to Washington think tank the Heritage Foundation, is expected to total $8.5 trillion over the next 10 years.

Economically, that’s a house that cannot stand and banks know it. Why should they offer a 3.5% short-term CD rate when 10-year U.S. Treasury yields are down to 3.65% these days? Even 30-year U.S. Treasuries are only yielding 4.57% this week. With long-term bond rates that low, banks aren’t about to give away the store.

So let’s not sugarcoat it, the bank rate landscape these days is a bleak one. But that said, there are some diamonds in the rough and BankingMyWay is committed to finding them for you.

Bank CDs

Ally Bank has an interesting deal on bank certificates of deposit.

This week, Ally is offering two-year CD customers an “upgrade” in the form of a higher rate once you see the CD “reset” to a higher rate during the term of that CD.

The Ally Bank two-year CD rate is at 2.1% right now, and that’s very competitive since the national average for similar CDs, as measured by the BankingMyWay Weekly CD Rate Tracker, is at 0.85%.

But let’s say that Ally moves the CD rate up to 2.25%. Then, Ally gives you the opportunity to reset your rate from 2.1% to 2.25%, without any paperwork or reworked applications.

You only get to exercise the reset option once, but it’s still a handy feature. Plus, it pairs nicely with Ally’s 10-Day Best Rate Guarantee, where a new CD customer gets the absolute best CD rate within 10 days of opening the account.

Find out more here.

Bank Checking

At the top of this article, we mentioned that banks were increasingly cutting back on bank deposit rates as the economy continues to send weaker signals to financial institutions.

EverBank is on that list, but the good news is that, at 2.25% for its three-month signature money market and checking accounts, the rate still easily surpasses the national average for national bank checking account rates. According to the BankingMyWay Weekly Interest Checking Account Tracker, the average U.S. checking account is paying out a paltry 0.135% this week.

Of course, last July, Everbank was offering bank customers 3.01% APY on its checking accounts (for a three-month promo rate) and a 1.85% APY for its Yield Pledge Money Market Account. Now, the money market rate is down, as well, to 1.26%.

But in a weak interest rate market, you take the deals where you can get them. And right now, Everbank is still offering one of the best bank interest rate deals around.

The Web site has the most current details. Get them here.

Credit Cards

Citi (Stock Quote: C) is out with a credit card for the customer who needs to transfer a high-interest rate balance over to a new card with a better rate.

A much better rate.

That’s the deal with the Citi Platinum Select Card, which offers a 0% APR on purchases and balance transfers for up to 12 months, with an 11.99% APR thereafter (providing you have sufficient credit for Citi — likely a FICO score of 700 or more).

The card also offers zero liability on unauthorized purchases, and you can qualify for online discounts on the Citi Web site. Note that the 0% APR does not apply to cash advances, and that the rate will rise if you, as the Citi Web site puts it, “pay us late, go over your credit limit, or have a returned check”.

Apply online here.

Vegas to Obama: Step Off!

David Seaman — Wed, 03 Feb 2010 11:17:47 -0500

Las Vegas wishes President Obama would chill on the anti-Vegas rhetoric. As reported by the AP, “After sparking a firestorm of criticism from Nevada's elected officials for suggesting that people saving money for college shouldn't blow it in Las Vegas, Obama told U.S. Senate Majority Leader Harry Reid in a letter that he wasn't saying anything negative about Las Vegas.”

This is the second time the President has used Las Vegas as a convenient example of irresponsible spending. But, what exactly is wrong with that? People saving money for college SHOULDN’T blow all their cash in Vegas. That’s not terribly controversial advice.

We know that Senator Reid is from Nevada and he’s got to represent—and he loves seeing himself on the teevee—but perhaps he should use this opportunity to keep his mouth shut. After all, the press just recently got over his “Negro dialect” remark. I think THAT was a lot more insensitive than counseling would-be gamblers to be more responsible. That said, perhaps next time the President should use Atlantic City as his example (though Jersey already has its share of awesome PR problems).

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Keep Your Investment Fees Low

Jeff Brown — Wed, 03 Feb 2010 11:12:30 -0500

Ask a pro for investing help and you can expect to pay for it. Sounds simple enough, but practices have changed over the years.

Decades ago, almost all trading was done through full-service stock brokers. Then mutual fund companies began providing advisers, often for free, while a new class of discount brokers offered to conduct transactions for do-it-yourselfers for cut-rate commissions, but without giving any advice.

The trend in recent years is what's called “asset-based” fees where the adviser charges an annual fee, typically 1% to 2% of the value of the account, to pay for investment advice and trading costs. This solves some conflict of interests imbedded in the old commission system, but it creates others.

As The Wall Street Journal noted in a recent story, annual fees reduce or eliminate the adviser’s incentive to recommend investments simply because they provide bigger commissions. Annual fees also reduce the incentive to “churn” an account, or make frequent trades to rack up more commissions.

And annual fees are easier for the customer to see and tally than older systems that used a hodgepodge of commissions, “loads” and other charges. As a result, the Journal points out, advisers are more willing to offer customers a wider range of funds and other investments.

But investors should be aware of one major drawback to asset-based fees — you could pay more than you really should.

Imagine a customer with $500,000 in an account, paying 1% a year, or $5,000. Over 10 years, the customer would pay $50,000, or considerably more if the account grew.

That’s OK if the adviser steers the client to investments that grow fast enough to offset the fees. Put another way, if the investor could select a set of mutual funds that returned 8% a year, the adviser would have to select a set doing better than 9% a year.

But it’s hard for advisers to beat average market returns year after year. If advisers don't think they can, they may find it makes business sense to put your holdings on autopilot, with a basic set of mutual funds, and then spend time increasing the assets under management by prospecting for new clients.

Many investors use a buy-and-hold strategy for the long term. Does it really make sense to pay for investment advice year after year if the investments are just left alone to grow?

Most investors need annual touch-ups, such as rebalancing a portfolio as different holdings grow at different rates. But these minor changes should not cost thousands of dollars a year. In fact, many mutual fund companies will provide this advice for free, or give sufficient guidance on their Web sites.

A fee-based arrangement can make sense if the adviser deals with complex problems beyond the customer’s abilities, like managing sales to minimize taxes, weighing estate-planning issues or setting aside funds for children or grandchildren.

But the fee-based adviser has a financial incentive to keep the account as large as possible. That could make an adviser reluctant to recommend buying a vacation home, giving assets to family or charity, or reducing the account to pay down debt.

Do-it-yourselfers are better off dealing with discount brokers and no-load mutual fund companies. And many people who need advice only need help setting up a long-term plan they can then manage themselves.

If that describes you, consider hiring a “fee-only” planner who will charge a flat or hourly rate to create a plan, and a modest fee for annual touch-ups. The National Association of Personal Financial Advisors, the organization for fee-only advisers, has a referral service on its Web site. Keep in mind that NAPFA’s definition of fee-only allows its members to charge fees based on assets under management.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

How Sitting Can Kill You

Seth Fiegerman — Wed, 03 Feb 2010 10:00:00 -0500

You might want to stand up while you read this.

New studies have shown that sitting too much can seriously endanger your long term health. According to USA Today, a research group in Canada studied 17,000 adults and “found a consistent link between chair time and deaths from heart disease.” Similarly, an Australian report found that the risk of heart disease increases significantly with every additional hour subjects spend watching television.

The reason is simple: humans were designed to be in motion. Instead, we sit for 8-10 hours a day at work, then drive home where we sit some more in front of the television or computer. According to one researcher, every time you sit for a prolonged period of time, “artery-damaging fats get a new chance to build up.”

That said, research is still a long way from being conclusive. As USA Today notes, there is no magic number yet in terms of hours one can spend safely sitting each day. In the future, perhaps employers will force workers to jog for 10 minutes every hour. Here at MainStreet we’re thinking of getting treadmill desks. Until then, however, maybe we should all start taking nice long walks during lunch hour.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Tax Tips: Real Estate Rules

Robert D. Flach — Wed, 03 Feb 2010 07:00:00 -0500

Generally real estate taxes on a personal residence are deductible only by the titled owner of the property. The same rule applies to mortgage interest.

However a taxpayer who does not have legal title to a residence may be able to deduct the real estate taxes and mortgage interest paid if he/she can be considered the "equitable and beneficial owner" of the property. An "equitable and beneficial owner" is a person who has the exclusive "burden and benefit" of the property – he/she occupies the property exclusively, makes the mortgage payments, and maintains the property.

John and Mary are newlyweds who are just starting out. They are unable to secure a mortgage to purchase a home. John’s parents are well off and decide to help the couple out by purchasing a home for them.

The parents live in their own separate personal residence. John and Mary make all the mortgage payments directly to the lender and they pay the real estate taxes directly, or via an escrow account, to the municipality. They also pay all the utility, insurance and maintenance bills for the residence. If a repair needs to be made to the home it is paid for directly by John and Mary.

The parents are the legal owners of the property, but John and Mary are the “equitable and beneficial” owners and can deduct the real estate taxes and mortgage interest paid on their Schedule A.

New Jersey tax pro Robert D. Flach has been preparing 1040s for individuals since 1972.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Urban Legends & Their Hidden Costs

Althea Chang — Wed, 03 Feb 2010 07:00:00 -0500

How urban legends can scare you into wasting time and losing money.

Find a Great TV for the Super Bowl

Consumer Reports — Wed, 03 Feb 2010 07:00:00 -0500

Consumer Reports investigates which TVs are best for the big game.

States Look to Ban Mandatory Health Insurance

The Associated Press — Tue, 02 Feb 2010 16:49:30 -0500

By David A. Lieb, Associated Press Writer

JEFFERSON CITY, Mo. (AP) — Although President Barack Obama's push for a health care overhaul has stalled, conservative lawmakers in more than two-thirds of the states are forging ahead with constitutional amendments to ban government health insurance mandates.

The proposals would assert a state-based right for people to pay medical bills from their own pocketbooks and prohibit penalties against those who refuse to carry health insurance.

In many states, the proposals began as a backlash to Democratic health care plans pending in Congress. But instead of backing away after a Massachusetts election gave Senate Republicans the filibuster power to halt the health care legislation, many state lawmakers are ramping up their efforts with new enthusiasm.

The moves reflect the continued political potency of the issue for conservatives, who have used it extensively for fundraising and attracting new supporters. The legal impact of any state measures may be questionable because courts generally have held that federal laws trump those in states.

Lawmakers in 35 states have filed or proposed amendments to their state constitutions or statutes rejecting health insurance mandates, according to the American Legislative Exchange Council, a nonprofit group that promotes limited government that is helping coordinate the efforts. Many of those proposals are targeted for the November ballot, assuring that health care remains a hot topic as hundreds of federal and state lawmakers face re-election.

Legislative committees in Idaho and Virginia endorsed their measures this past week. Supporters held a rally at the Pennsylvania Capitol.

And hearings on the proposed constitutional amendments were held in Georgia and Missouri. The Missouri hearing drew overflow crowds the day after Obama urged federal lawmakers during his State of the Union address to keep pressing to pass a health care bill. The Nebraska Legislature plans a hearing on a measure this coming week.

Supporters of the state measures portray them as a way of defending individual rights and state sovereignty, asserting that the federal government has no authority to tell states and their citizens to buy health insurance.

"I think the alarm bell has been rung," said Clint Bolick, the constitutional litigation director at the Goldwater Institute in Phoenix, which helped craft an Arizona amendment on this November's ballot that has been used as a model in other states.

"These amendments are a way to manifest grass roots opposition" to federal health insurance mandates, Bolick said. "They kind of have a life of their own at this point. So while some of the pressure may be off, I think that this movement has legs."

Separate bills passed by the U.S. House and Senate would impose a penalty on people who don't have health insurance except in cases of financial hardship. Subsidies would be provided to low-income and middle-income households. The intent of the mandate is to expand the pool of people who are insured and paying premiums and thus offset the increased costs of insuring those with preexisting conditions or other risks.

The federal bills also would require many businesses to pay a penalty if they fail to provide employees health insurance that meets certain standards, though details and exemptions vary between the House and Senate versions.

Obama and Democratic legislative leaders were working to merge the two bills when Republican Scott Brown won the Massachusetts Senate seat long held by the late Edward M. Kennedy on Jan. 19, leaving Democrats one seat shy of the number needed to break a Republican filibuster.

Since then, the federal legislation has been in limbo. But state lawmakers have not.

"We need to move ahead no matter what kind of maneuvering continues in Washington, D.C.," said Missouri Sen. Jane Cunningham, a Republican from suburban St. Louis.

Since suffering resounding defeats in the 2008 elections, Republicans have seized upon voter unease over the federal health care legislation to help revitalize their fortunes.

A USA Today/Gallup poll conducted the day after the Massachusetts vote found that about 55% of respondents — including a majority of self-described independents — favored putting the brakes on the current health care legislation. The poll had a margin of error of plus or minus 4 percentage points.

State laws or constitutional amendments clearly could bar lawmakers in those states from requiring individuals to purchase health insurance, such as Massachusetts has done. But it's questionable that such the measures could shield state residents from a federal health insurance requirement.

"They are merely symbolic gestures," said Michael Dorf, a constitutional law professor at Cornell University. "If this Congress were to pass an individual mandate, and if it is constitutional — which I believe it is — the express rule under the supremacy clause (of the U.S. Constitution) is that the federal law prevails."

Many Democratic lawmakers are skeptical of both the intent and the effect of the state measures, entitled in many states as the "Freedom of Choice in Health Care Act." Some have derided it as "political theater" or an attempt to merely shape the public debate.

"We need to do something about health care," said Idaho Rep. Phylis King, a Boise Democrat. "And the federal government is trying to do something. It hurts our companies and it hurts our people to be uninsured."

___

Associated Press writer John Miller in Boise, Idaho contributed to this report.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Buy a Piece of Airplane Crash History

David Seaman — Tue, 02 Feb 2010 16:00:00 -0500

This may be your only chance to buy a famous non-functional aircraft, people, and at bargain basement prices (relatively speaking). The aircraft in question was the one from the so-called Miracle on the Hudson, when after some birds hit the engines, Capt. Chesley “Sully” Sullenberger managed to land the stalled plane in New York’s Hudson River and all the passengers survived. Now Sully’s plane is up for auction.

As reported by WalletPop, “the Airbus A320, and not the pilot -- a military flyer with 40 years of experience in the cockpit who wrote a book about his ordeal -- is ready for its 15 minutes of fame. Chartis, the insurance company that represents U.S. Airways, recently put the narrow body plane up for auction on a New Jersey salvage lot.”

The auction is open for bids until March 27, giving you plenty of time to liquidate your 401k and take out a fat line of credit to buy this sucker. The plane, which when new has a sticker price of around $70 million, is worth considerably less now that everything in it (including electronics) are waterlogged and useless. It will “likely only fetch a couple hundred thousand dollars” according to an aircraft recycling expert.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

The Creepiest Invention in the World

Seth Fiegerman — Tue, 02 Feb 2010 15:00:00 -0500

The world just got a little more complicated and a lot dirtier.

Last month, the first talking sex robot was unveiled at the Adult Entertainment Expo in Las Vegas. Her name is Roxxxy and she is already turning some heads.

“She doesn’t vacuum or cook, but she does almost everything else,” said Douglas Hines, the man behind this odd invention, in an interview with CNN. Hines, and his firm TrueCompanion, claim that 4,000 people have already placed pre-orders for the product and another 20,000 have requested additional information.

As CNN explains, Roxxxy comes equipped with several high-tech qualities, including a customizable personality, skin made from silicone and motor pumps that warm her body with hot air so she is “warm to the touch.”

More from CNN: “Powered by a computer under her soft silicone ‘skin,’ she employs voice-recognition and speech-synthesis software to answer questions and carry on conversations. She even comes loaded with five distinct ‘personalities,’ from Frigid Farrah to Wild Wendy, that can be programmed to suit customers' preferences.” Her only limitation is the battery life, which lasts about three hours at a time.

However, she’s not exactly a cheap date. Roxxxy will sell for $7,000, although right now you can get it for the low price of $6500 online. According to Hines, TrueCompanion will start to distribute the robot in the next few months.

Roxxxy is really the climax to years of perfecting sex dolls. Just last year, a German company released Andy, the first sex android, which actually breathes and has a pulse. That android sells for about half the price of Roxxxy.

Back in 2007, MSNBC predicted that Americans would be having sex with robots by 2010 and legally marrying them by 2050. At the time, it sounded preposterous, but now we may actually be ahead of schedule.

The future is a strange and frightening place.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

Too Big to Bail: The Rise of Local Banks

Brian O'Connell — Tue, 02 Feb 2010 14:15:10 -0500

Big bank stocks are taking a beating on Wall Street these days, and the future looks, in a word, “iffy” for behemoth financial institutions, thanks to bank reforms proposed by the White House. But vacuums don’t last for long. Regional banks are well positioned to fill the void left by big bank uncertainty.

It’s really a matter of size and capabilities. Most big banks, like Bank of America (Stock Quote: BAC), Citigroup (Stock Quote: C) or JPMorgan Chase (Stock Quote: JPM) have huge investment banking and trading desk operations, with the capacity to gravitate toward higher risk financial strategies. When the news came out a few weeks back announcing a new and improved banking reform plan, the stocks of all those banks fell precipitously the same day.

Smaller, more regional banks don’t have super-sized trading and investment banking operations — the areas that President Obama promised to focus on when he outlined his administration’s bank reform plan last month.

That opens the door for competitive regional banks like Fifth-Third Bancorp (Stock Quote: FITB), Sun Trust Banks (Stock Quote: STI) and KeyCorp (Stock Quote: KEY) to perform even better. All have strong balance sheets, sufficient capital, aren’t tainted by the TARP loans that led the federal government to take a closer look at bigger banks (and thus led to calls for reform), and all are showing improved estimated earnings pictures going forward, judging from Wall Street analyst reports issued recently.

Thus, on Jan. 21, the same day that President Obama rolled out the new bank reform plan, and the same day that big banks saw significant declines in their stock market prices, regional banks went the opposite way.

There is little doubt that on the very day that the President announced bank reform, the “smart money’ went toward regional banks and away from bigger banks. By and large, it’s a bet on Wall Street that banking restrictions would hurt big financial institutions, and help mid-sized banks that aren’t really a target of Uncle Sam.

In other words, in the past few weeks we’ve gone from "too big to fail" to "too big to bail."

Don’t think for a moment that Wall Street hasn’t noticed.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

5 Tablet Computers for iPad Haters

Elizabeth Blackwell — Tue, 02 Feb 2010 13:43:40 -0500

BOSTON (TheStreet) -- Amid all the frenzy over Apple's (Stock Quote: AAPL) iPad, it's easy to forget that tablet computers are not a Steve Jobs innovation.

During the past year, computer makers such as Dell (Stock Quote: DELL), Asus and Hewlett-Packard (Stock Quote: HPQ) have debuted new tablet computers, which combine the functions of a laptop with the convenience of a touch screen. At about an inch thick and three to five pounds, they're lighter than traditional laptops and easier to slip into a briefcase or backpack.

Will tablets become the next must-have gadget? It's too soon to tell. But if all the iSlate hype has you intrigued by a tablet's possibilities, here are other models to consider:

1. Dell Latitude XT2

Size: 11.7 inches by 8.7 inches

Price: $2,423

Pros: It's like two devices in one. When Dell's Latitude is in laptop mode, you can type documents and e-mails on its full-size keyboard. If you swivel the 12.1-inch screen, you can fold it flat and scribble notes on the surface. "Multitouch" technology makes it easy to scroll through text or rotate pictures by tapping or pinching the screen. High-tech bonus: There's a fingerprint reader for added security.

Cons: With all these bells and whistles, heavy users will need to upgrade the battery and probably the memory. It's also more expensive than other tablets.

2. Lenovo ThinkPad X200 Tablet

Size: 11.6 inches by 10.1 inches

Price: $1,879

Pros: Although it offers many of the same features as the Dell Latitude XT2, it's significantly cheaper. Like the Latitude, it has a swiveling 12.1-inch screen that allows it to convert from a laptop to a tablet. Lenovo's "palm-rejection technology" makes sure the weight of your hand doesn't register when you're writing on the screen. While the standard model has some touch screen capabilities, you can upgrade to a multitouch panel, which registers two-fingered gestures to pan, zoom, rotate and right click. The "elite" model of the ThinkPad X200, which costs $300 more, features a special screen that can be used in direct sunlight. Like the Dell Latitude, you can boost its security with a fingerprint reader.

Cons: Controlling the curser may take some adjustment for users who are new to Lenovo, whose computers use a "TrackPoint" stick rather than the popular touchpad. As with other tablets, heavy users will probably want to upgrade the battery and system memory, making the Lenovo less of a bargain.

3. HP TouchSmart tm2

Size: 11.9 inches by 8.7 inches

Price: $949.99

Pros: Hewlett-Packard's TouchSmart has the same flip-down display and writeable 12.1-inch screen as other tablet computers, but it shines when it comes to entertainment. A custom touch interface allows quick access to content through Hulu and Netflix. With a few taps of your fingers, you can watch a movie or create your own slideshow. H-P's "BumpTop" interface scatters extra large icons on the screen to create a 3-D desktop, so you can move photos from folders to Facebook. You can even write virtual "sticky notes" and post them on the screen.

Cons: Built more for pleasure than business, the TouchSmart makes it easy to spend the day on Twitter rather than working. An engraved illustration on the aluminum chassis also gives it a less professional look than other models.

4. Amazon Kindle DX

Size: 10.4 inches by 7.2 inches

Price: $489

Pros: Although the larger Amazon (Stock Quote: AMZN) Kindle's size is comparable to those of other tablets, it's significantly lighter, weighing slightly more than a pound. The Kindle is clearly the winner when it comes to presenting text on its 9.7-inch screen. The device is easy to use and ready to go right out of the box. And you don't need a wireless account because Amazon covers the connection charge for Kindle users.

Cons: An electronic reader offers a fraction of the features of a laptop computer. Although the Kindle allows users to access Web sites with minimal graphics, such as Google and Wikipedia, its browsing capability is limited. And forget watching TV or movies. For now, the Kindle is strictly black-and-white and text-only.

5. Asus Eee PC T91

Size: 8.9 inches by 6.4 inches

Price: $455 to $549

Pros: Asus has been a pioneer of netbooks, small computers that are less powerful but more portable than laptops. This netbook tablet has all the expected features, including a fold-flat display and a 8.9-inch touch screen, at a very affordable price.

Cons: As with any netbook, the Asus Eee has a smaller-than-average keyboard. The small screen also makes touch errors more likely. An integrated three-cell battery means you can't extend its run time by upgrading. But the most significant disadvantage is that Asus hasn't been able to launch its Windows 7 version, which may arrive later this year.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Who's Hiring Part-Time: Big 5 Sporting Goods, ProDrivers and Club Z Tutoring

Bobbi Dempsey — Tue, 02 Feb 2010 12:32:03 -0500

Looking for part-time work? You’re in luck. Here are three companies with part-time openings available right now.

Big 5 Sporting Goods (Stock Quote: BGFV)

What They Do: Large sporting goods chain with 384 locations spread throughout 11 states.

Types of Part-Time Position(s) Available: Cashiers and salespeople.

Desired Hours Per Week: Flexible, but averages 10 to 20 hours per week and most likely will require some nights and/or weekends.

Starting Pay: About $8 an hour.

Benefits: Company discounts, plus discounts at major ski areas and theme parks.

Requirements: Must have customer service and/or retail experience. They especially look for sports-minded people who are enthusiastic about sporting goods.

The Inside Scoop: New hires may be subject to a criminal background check.

Apply here.

Next Page: ProDrivers

ProDrivers

What They Do: Large transportation company, specializing in CDL drivers.

Types of Part-Time Position(s) Available: CDL or box truck drivers.

Desired Hours Per Week: Varies by route/position; some positions are on an open/on-call basis and require drivers with flexible hours.

Starting Pay: At least $13 to $14 an hour, although some positions pay by the mile.

Benefits: Vacation pay, holiday pay, referral bonuses and access to group medical plans.

Requirements: Must have one year of recent related experience, plus a clean driving record. Additional requirements vary by position and may include a DOT physical, Hazmat endorsement or the ability to drive as part of a team.

The Inside Scoop: They have many opportunities for drivers willing to work on a temporary or fill-in basis.

Apply here.

Next Page: Club Z Tutoring

Club Z Tutoring

What They Do: International provider of in-home tutoring services.

Types of Part-Time Position(s) Available: Tutors.

Desired Hours Per Week: Generally 10 to 20 hours per week, with most work done after school or on weekends.

Starting Pay: $17 to $25 an hour, depending on subject areas and qualifications.

Benefits: None.

Requirements: Must have previous teaching or tutoring experience and a bachelor's degree. Experience with standardized tests such as the SAT or ACT is a plus, as is fluency in a foreign language.

The Inside Scoop: The company stresses that you must know how to motivate children who are struggling in school.

Apply here.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

CD Rate Trends This Week: Feb. 2

Brian O'Connell — Tue, 02 Feb 2010 11:57:41 -0500

These days, you can’t swing a dead loan modification deal without hitting an economist worried about our national debt.

Here is a good example. Monday, the White House came out with a proposed $3.8 trillion budget for 2011. From the White House’s own numbers, the budget would expand spending by $1.7 trillion from 2010 to 2019. There are some interesting statistical ramifications from the budget proposal, which still has to pass both houses of Congress before it becomes reality.

Based on the White House’s own proposed budget, as calculated by the Washington, D.C.-based Heritage Foundation...

Our national debt would be 49% higher in 2010 than it was in 2009.
By 2020, 20% of all federal taxes would go to just paying the interest on the national debt.
Spending restraint is out. By 2020, about 90% of the growth in the national budget deficit comes from spending hikes — and only 10% comes from spending cuts.
In 2007, the federal government spent, on average, $24,000 per U.S. household. By 2020, that goes up to $36,000.
If the U.S. actually spends this much money, how would that impact U.S. citizens? It’s a fair question. As Lawrence H. Summers — President Obama’s own economic adviser — has said, “How long can the world’s biggest borrower remain the world’s biggest power?”

It’s a question just as easily asked about banks. With the nation increasingly mired in debt, both individually and collectively, can bank consumers at least get some decent yields on certificates of deposit?

Not as long as there is so much uncertainty over the direction of the U.S. economy, and the proposed White House budget is only going to add to that uncertainty (if not trigger outright anxiety among creditors and lenders).

For the short-term, all of this economic uncertainty has translated into lower bank rates, particularly on CDs. That trend continues in early 2010, and into February, as CD rates fell again last week, even before the new federal budget proposal saw the light of day.

Here is the national CD rate picture for the last week of January, as measured by the BankingMyWay Weekly CD Rate Tracker:

Description This Week Last Week

60-Month CD 2.135% 2.21%

48-Month CD 1.845% 1.923%

24-Month CD 1.296% 1.355%

12-Month CD 0.853% 0.902%

Six-Month CD 0.569% 0.602%

Three-Month CD 0.378% 0.388%

Not to be Pollyanna-ish, but you really have to wonder how big headlines, day-after-day, about the White House’s proposed budget will impact bank CD rates. Let’s face facts. The harsher the spotlight on our national debt, the higher the uncertainty about the U.S. economy. And that won’t help CD rates.

We said this last week, and it still holds true this week. To get the best CD rates possible — even in this tough environment — start thinking small and head to local banks and credit unions. Community banks are doing a better job of offering more competitive CD rates than the big banks these days, and deserve more of your attention. To get those best rates, visit BankingMyWay CD Rate Search Tracker.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Toyota to Fix Deadly Gas Pedals This Week

The Associated Press — Tue, 02 Feb 2010 11:33:01 -0500

By Ken Thomas & Tom Krisher, Associated Press Writers

WASHINGTON (AP) — Toyota apologized to its customers Monday and said a piece of steel about the size of a postage stamp will fix the gas pedal problem that led to the recall of millions of cars. Repairs will take about a half-hour and will start in a matter of days, the company said.

Toyota insisted the solution, rolled out six days after it temporarily stopped selling some of its most popular models, had been through rigorous testing and would solve the problem for the life of the car.

After a week in which Toyota drivers said they were worried about the safety of their cars and dealers were frustrated by a lack of information, Toyota said it would work to regain the trust of its customers.

"I know that we have let you down," Jim Lentz, president of Toyota Motor Sales USA, said in a video address.

The repair involves installing a steel shim a couple of millimeters thick in the pedal assembly, behind the top of the gas pedal, to eliminate the excess friction between two pieces of the accelerator mechanism. In rare cases, Toyota says, that friction can cause the pedal to become stuck in the depressed position.

Toyota said car owners would be notified by mail and told to set up appointments with their dealers. It said cars already on the road would get priority over those on the lot.

The recall covered 4.2 million cars worldwide and 2.3 million in the United States, including some of Toyota's best-selling models, such as the Camry and Corolla. It has recalled millions more because of floor mats that can catch the gas pedal.

Jeffrey Liker, a University of Michigan engineering professor who has studied Toyota for 25 years, said he believed the fix would work, citing the automaker's reputation for careful testing and engineering.

"They are under the gun. They aren't playing any games," he said.

Toyota would not give an estimated cost for the repair work. It estimated repairing all the recalled cars would take months. It said some dealers were planning to stay open around the clock to make the repairs once parts arrive. Parts were expected to begin arriving late Tuesday and Wednesday.

Earl Stewart, who owns a Toyota dealership in North Palm Beach, Fla., and had been critical of delays in getting repair parts to dealers, said he was happy with the fix. He said he was reassured that it had been tested by independent engineers, not just Toyota's.

"You never say you're absolutely sure about anything, but I feel that this is probably the answer," he said.

The National Highway Traffic Safety Administration said it had "no reason to challenge this remedy." Transportation Secretary Ray LaHood said last week the government had urged Toyota to issue the recall and suspend production and told reporters Monday that Toyota had "done the right thing."

Etienne Plas, a spokesman for Toyota Motors Europe in Brussels, said the car maker would implement the same remedy for faulty gas pedals in Europe, but he did not know when.

Besides millions of dollars a day in lost sales, the recall posed a public-relations challenge to Toyota, which for decades has enjoyed a loyal customer base and a reputation for quality.

It took out full-page newspaper ads declaring the episode a pause "to put you first," and on Monday it sent Lentz to morning news shows to express confidence in the fix.

"This is embarrassing for us to have ... this kind of recall situation," Lentz told reporters. "But it doesn't necessarily mean that we have lost our edge on quality. But we do have to be vigilant. We have to redouble our efforts to make sure this doesn't happen again."

That was not enough for Dennis Dukes of Stony Point, N.C., and his wife, who said they wouldn't drive their 2010 Camry again, even with the repair. His wife ran into the back of a truck in August in their first Camry, a crash Dukes said happened after she hit the brakes and the car kept going.

"I am absolutely not going to drive that vehicle again," Dukes said. "Whether it fixes the Camry or not, the damage has been done. It is not going to fix things mentally for us."

Toyota says it will have a failsafe system in most of its models by the end of this year and all models by the end of 2011, so that the accelerator goes to idle if the brake is pressed at the same time.

Jake Fisher, senior automotive engineer for Consumer Reports, criticized Toyota for having too few models with mechanisms that can override a stuck accelerator. Drivers of Cadillac and Infiniti cars, for example, can shut off the engine by pushing the start button more than once. Toyota drivers must hold it down for three seconds.

Consumer Reports recommends shifting the car into neutral if the accelerator gets stuck, braking and then steering to the side of the road.

Another safety expert, Clarence Ditlow, executive director of the Center for Auto Safety in Washington, said Toyota may be rushing out a fix without considering other potential sources of the problem, such as the electronics of the pedal system.

"Toyota is betting their reputation that this is the last and latest fix that will correct the problem," he said. "It if doesn't, they are in a world of trouble."

Toyota said it was confident the problem was mechanical.

"Our vehicles go through extensive electromagnetic radiation testing," said Robert Waltz, Toyota's vice president of product quality. "And we have never been able to get our systems to fail through any of the tests that have been done on them."

The company plans to restart production Feb. 8 on models covered by the recall — the Camry, Corolla, Avalon and Highlander cars, the Matrix hatchback, the Tundra pickup, the RAV4 crossover and the Sequoia SUV.

Lentz said the decision to stop selling the affected vehicles would hurt January sales, but he said the impact over the long term is unclear.
Toyota shareholders appeared pleased. The company's stock, which took a hit last week, was up nearly 4% Monday. The broader market was up 1.4%.

Krisher reported from Detroit. AP Auto Writers Stephen Manning and Dan Strumpf contributed to this report.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Who Is Julia Allison?

David Seaman — Tue, 02 Feb 2010 11:05:56 -0500

Origin Story

You’ve probably seen Julia Allison before. The 28-year-old TV commentator and media personality has been featured on MSNBC dissecting the latest viral video... or you may have caught her hawking the Sony VAIO in TV commercials alongside Peyton Manning and Justin Timberlake. And if you’re into media gossip, you’ll definitely know her as the girl Gawker.com loves to hate. She has achieved a certain kind of micro-fame in the world of Web 2.0 that may be crossing over into the mainstream, but when we sat down to speak with her we wanted to know how it happened... and more importantly, why. The short answer: because she wanted it. Plus, no one else was looking out for her, least of all media companies.

“They weren’t going to ensure that I had a job... or even that I had an audience. I looked to the Internet as a distribution channel, and also looked to the Internet to allow me to cut out the middle men — the people who were running the magazines and who also took in the ad dollars,” she explained. Recognition was a commodity as far as she was concerned, and she wanted to be paid more than $50 per column for it. Why not become your own publication, talent and publicity machine — all rolled into one?

I’ve met Allison before but it’s worth noting that she is smaller in person, and less intimidating, than you would expect for someone who spends so much time in the public eye. But she undeniably has what could be called "presence." I overheard another guest talking about her when she was in the studio. He wondered who she was and speculated to his colleague, "She must be a TV person."

After she graduated from Georgetown in 2004, Allison started working on Capitol Hill because she was interested in politics and wanted to make a difference. She soon became disillusioned by the political process and decided the best way she could have an impact on people’s lives was to become a journalist. So she moved to New York and managed to land herself a gig writing a dating column for free subway newspaper AM New York. Again, she became disillusioned, this time because AM New York paid horribly and she came to the shocking realization that a) journalists make lousy money, and b) it’s a profession with very little security. She decided, rightly we might add, that if she could become somewhat well-known, she would be better able to support herself... and then some.

So she decided to start living her life online, and doing what she could to get noticed. Allison has many attention-getting stunts to her name, including a now-infamous appearance at media mogul Nick Denton’s 2006 Halloween party wearing a “condom dress” and jointly blogging about her relationship with new media millionaire Jakob Lodwick on the Web site JakobandJulia.com. As their relationship went downhill, and eventually ended, Allison realized that airing personal drama in the public sphere has a real drawback. The final post from her on the shuttered JakobandJulia site reads: “It’s always humbling to realize you’ve made an enormous mistake, but I know that, at the very least, my public relationship struggles in the last seven months made others feel less alone. They certainly taught me quite a lesson … just not the lesson I thought I would learn. Good luck to you all.”

But Allison couldn’t give up sharing altogether. She co-founded the lifecasting portal NonSociety.com, where she regularly posts ideas, photos and other content arguably designed to keep her in the public eye. In a sense, all of this was designed to eventually get some big corporation to take notice, and pay her to do something.

When she landed the Sony gig, she felt like it was finally all coming together—and it paid real money... more than a $50 gift card to the Sony store, she confirmed.

(Click here to watch a bit of our interview with Julia.)

But what exactly is she trying to be? Julia insists she is a journalist despite the fact that most journalists don’t go around directly soliciting money from would-be advertisers. That kind of dirty work is left to the ad sales department. When we pointed out that Bob Woodward probably never asked companies for money in exchange for endorsing them, Allison wasn’t having it. “If Bob Woodward were making fifty bucks a column,” she said, “You know what, he would do what it took.”

Actually, probably not. When Woodward graduated from college in 1965 he went right into the Navy for five years. Then, like Allison, he moved to D.C. where he tried to talk his way into a job at The Washington Post. He failed and instead took a job at the Montgomery Sentinel, a weekly paper. And after a year toiling in the suburbs he managed to land a job at The Post. I doubt he was making much at either gig, that is until he managed to help break the story that led to the resignation of the President of the United States. But really, that’s neither here nor there. If Allison wants to call herself a journalist, fine. But there are plenty of journalists who are making horrible money who would disagree.

(Here’s another bit from our interview. Julia calls herself a journalist, and I’m all, “not so fast!” Very Mike Wallace.)

The truth is that regardless of how she labels herself, Julia employed a particularly aggressive brand of self-promotion to get to where she is today, and she deserves a ton of credit for that. I understand her branding strategy on a too-close-to-home level. Before I came to MainStreet I tried something similar, though I was far less motivated. I wrote a book about generating buzz, tried a couple dim publicity stunts of my own... and even got on TV a few times as a result. But when it became readily apparent that producers did not care about furthering my career, I eventually quit the schtick, and went back to the mundane business of being a normal person. The truth is that it takes a certain kind of iron constitution to put yourself out there in the way that Julia Allison does... or it takes a kind of willingness to suffer. It seems that she possesses the former more than the latter.

Type “Julia Allison” into Gawker’s search bar and you will be presented with a long list of articles that mock her in one way or another. Click on one of the articles and you’ll probably find a ton of comments that just rip her mercilessly. I asked her if she thought that even the bad press, the worst haters, were actually good for her because they keep people talking about her. Allison says she doesn’t deal well with the criticism: “I’m maybe too sensitive to ever be a real public figure or a real celebrity; I want everyone to like me.” She said she doesn’t want people to think she’s a “dick.”

We got in touch with Gawker writer Richard Lawson and asked him why people seem to react the way they do to Julia and why she’s been such a fixture on the site.

“I think she was just one of the first people to harness web 2.0 and leverage her own personality to make something of a name, and a paycheck, for herself. That was (is?) inherently interesting to Gawker -- the whole idea of getting something from nothing but ‘oversharing.’ Is it indulgent? Sure. Does it take a special kind of person to do it? Absolutely. I think you have to decide whether you hate the game, the player or both. I think Gawker hated it all,” he told us via e-mail.

He added in a subsequent e-mail that while Gawker hated it all, it also loved it all. He said it is as interesting to them as it is repellent.

Thankfully for Julia, Gawker’s not the only game in town. She has appeared as a frequent guest on shows including FOX News Channel's comedic commentary program Red Eye and the now-defunct Morning Show With Mike and Juliet. She was an editor-at-large for Star Magazine for a year and she was reportedly paid a six-figure salary to go on television to talk about celebrity stuff she, by her own admission, often did not know all that much about. A potentially rewarding position as a FOX Business Channel contributor fell through, because producers saw how negatively her appearance was received by certain online commenters.

(Watch her talk about this incident and other TV gigs here.)

These days she broadcasts her inevitable rise in the media game on an almost 24/7 basis — tweeting, blogging, lip-synching (or "lip-dubbing" as she corrected me), vacations, boyfriends, business negotiations. She broadcasts them all, like a real-life version of The Truman Show, only she's in on the production (though she has said that she’s trying not to "overshare" as much). Her dream job, however, is to one day be a host on The View, though she’s unsure whether people her age (28 according to her Wikipedia, so it must be true) actually watch the show. People our age would watch The View with Julia Allison as a host — I really believe that.

Not everyone thinks her 24/7 lifecasting business model has a future, however. Mary Rambin, a former business partner and NonSociety ex-contributor, left Allison’s venture to form her own publication MoreThanMary.com, which launched Monday. We asked why she left NonSociety. She explained, “We built a great platform on NonSociety, one I believe in. Julia has chosen to maintain the lifecasting course, which I hope people eventually see the value in and realize how challenging it is. I left because Julia and I were not in agreement on how to build the NonSociety brand. That's the bottom line.”

Alrighty then! Reading between the lines here, but sounds like there’s some drama there. Now let’s all gossip about it, and write anonymous comments about Julia Allison on Gawker and everywhere else she appears. Keep it friendly, though — a booking producer at The View may be reading.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Are You Saving Enough for Retirement?

Jeff Brown — Tue, 02 Feb 2010 10:02:29 -0500

Are you saving enough for retirement? No.

Well, maybe you are. But that would make you an exception, as study upon study show that Americans are woefully unprepared for retirement. Right now, with year-end statements from your broker, mutual fund companies and bank in hand, it’s a good time to rethink your savings rate and asset allocation.

Savings rate, of course, is the percentage of your income you put into long-term holdings, a rainy-day fund and so forth. In the 1990s, many investors figured they didn’t need to put too much aside because stellar stock-market returns would inflate their holdings. The past decade has shown it’s too risky to count on that. A big nest egg is more likely to be built through a high savings rate than stunning investment returns.

Asset allocation means the way your investments are divided among stocks, bonds and cash, as well as subcategories. An investor might assume that stocks will return 8% to 10% a year over time, bonds 5% or 6%, cash 2% or 3%. Since a new retiree may live another 30 or 40 years, some stock holdings are necessary to keep ahead of inflation. But stocks are volatile, so bonds are cash provide stability.

How should money be divided between the various asset classes? The market-data firms Morningstar (Stock Quote: MORN) and Ibbotson Associates have produced an allocation index based on historical performance. It suggests that a 24-year-old with a moderate tolerance for risk put 55% of the portfolio into U.S. stocks, 34% in foreign stocks, 5% in U.S. bonds, 2% in foreign bonds and 4% into commodities as an inflation hedge.

A 74-year-old with a moderate taste for risk would keep 27% in U.S. stocks, 8% in foreign stocks, 33% in U.S. bonds, 4% in foreign bonds, 6% in commodities, 17% in Treasury inflation-protected securities and 5% in cash. Look at the table to find the allocation suitable for you.

Are your assets and savings rate sufficient to build the nest egg you’ll need? Use the Retirement Income Calculator and Retirement Planner to find out. They’ll show how big your nest egg is likely to grow given your assets, savings rate and hoped-for investment return, and they’ll show how much income you should be able to draw without outliving your money.

As a very rough rule of thumb, expect to draw 4% of your assets a year. If you earn 6% or 7%, a 4% withdrawal rate will leave a bit of growth to offset inflation, so you can draw a bigger sum each year. At a 4% withdrawal rate, you’d need $300,000 to provide $1,000 in monthly income, $600,000 to provide $2,000, and so on.

Also check out the Retirement Income Calculator from T. Rowe Price (Stock Quote: TROW), the mutual fund company. It uses a different approach, called a Monte Carlo simulation, to figure the odds your plan will produce enough income. It repeats the calculation 1,000 times, using different figures for factors like investment return and inflation.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Tax Tips: Deducting Mortgage Interest

Robert D. Flach — Tue, 02 Feb 2010 07:00:00 -0500

If you're paying a mortgage, listen up because you can deduct some of your paid interest.

“Qualified residence interest,” also known as mortgage interest, paid on your primary residence and one secondary residence can be deducted on Schedule A, subject to certain limitations.

You can only deduct interest on two properties at a time. If you own a personal residence in New Jersey and two separate person-use vacation properties, one in Florida and one in the Poconos, and all three properties have a mortgage, you can only deduct the mortgage interest on two of the properties

There are two kinds of deductible qualified residence interest:

Acquisition debt is debt acquired after Oct. 13, 1987, to buy, build or substantially improve your main residence or a qualified second home. A “substantial improvement” is one that adds value to the home, prolongs the home’s useful life or adapts the home to new uses.
Home equity debt is debt secured by a principal residence or second home that is not used to buy, build or substantially improve the property. There is no restriction or limitation on what the money can be used for — you can use it to buy a car or pay off credit cards.

The amount of principal on which interest can be deducted is limited. Acquisition debt is limited to $1 million ($500,000 if Married Filing Separately). Acquisition debt cannot exceed the cost of the home plus the cost of any substantial improvements. Home equity debt is limited to $100,000 ($50,000 if married filing separately).

New Jersey tax pro Robert D. Flach has been preparing 1040s for individuals since 1972.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

The Best Coffee in America

Michael Schreiber — Tue, 02 Feb 2010 07:00:00 -0500

It's the best part of waking up, but which coffee brand gives you the most bean for your buck?

Health Product Frauds: Remedy Rip-Offs

Seth Fiegerman — Tue, 02 Feb 2010 07:00:00 -0500

Our list of the most notoriously ineffective health treatments and dangerous counterfeit products.

How to Get Organized When Work Piles Up

The Associated Press — Mon, 01 Feb 2010 16:23:19 -0500

By Samantha Bomkamp, AP Business Writer

NEW YORK (AP) — Multitasking. It's a practice many workers were familiar with before the recession, but now millions more must do it because they're being asked to do more with less.

Some employees are multitaskers by nature. Others, particularly those who struggle with being organized, are having to learn on the fly how to juggle multiple assignments.

It may seem daunting, but management and human resources consultants say it's easier than you think to become more organized and to multitask:

PRIORITIZE

Scott Stevenson of the accounting firm PricewaterhouseCoopers works with employees to help them deal with changing and expanding job descriptions. His first recommendation: Take 15 minutes at the start of the day to review what you're being asked to do. Jot down everything you need to accomplish that day. Put tasks that can wait on a separate list.

And, even if your bosses expect you to multitask, don't try to work on more than one assignment or project at any given moment, said Douglas Merrill, a former CIO at Google and author of Getting Organized in the Google Era.

"You can't do it," Merrill said. When you multitask, you often overlook the context that an assignment requires. Too often you're doing a tremendous amount of work but you're actually doing it wrong, he added.

Instead, Merrill recommends splitting up your work into segments. Work on one project for 15 minutes, then stop and take a break — or at least a breath. Then work on another task for 15 minutes.

You'll need to adjust the time intervals depending on what kind of work you're doing, but the key is to devote your attention to one task at a time.

SET REALISTIC GOALS

Merrill urges people to become goal-oriented about what they're trying to achieve at work. And be specific. Don't just say "I want to be productive today" but instead say "I want to complete two large assignments today, one before and one after lunch."

Then, be honest with yourself. Do you have time to do the tasks on your to-do list? If it's a new task, are you able to accomplish it?

If feasible, talk with your boss about your plans as much as possible — ideally at the start of every project. That way, you both have realistic expectations and there shouldn't be any unpleasant surprises about how long it takes you to complete your work.

THE BIGGER PICTURE

PricewaterhouseCoopers' Stevenson recommends workers perform a "job inventory." List everything you do, including all your everyday tasks, and the things you do weekly, monthly, quarterly, every year.

This way, you'll have a clear picture of what your work requires.

"It's important to have a very real and very live job description," Stevenson said. "Jobs have many more dimensions than in the past. Someone who is a finance role is now also being asked to have better client service skills. There's a lot being asked."

If you're overwhelmed or don't feel you're able to tackle some of your new responsibilities, Stevenson said it's important to communicate that to your superior. But even if the boss doesn't agree to lighten your load, the structure you create for yourself should at least make your day easier to manage.

Like many workers, you may find that the demands of your job mean you have to do some work after-hours. Merrill encourages people not to have unrealistic expectations when it comes to work-life balance.

"Work-life balance is not just about working less," he said.

But finding that balance can be part of your attempts to organize yourself. For example, Merrill decided that he can check e-mail at home, but only from 10 p.m. to midnight. He also checks his smartphone on vacation, but only for one hour a day.

AN ORGANIZED DESK CAN HELP

If your desk is a mess, you'll find it harder to get things done. If you can't find the papers and documents you need, you'll lose time.

Laura Leist, president of the National Association of Professional Organizers, recommends that you start to organize your desk by clearing everything off and starting fresh.

Sort all the papers and paraphernalia on your desk, and toss what you don't need anymore. Then choose a system to organize what you decide to keep.

Leist suggests creating a "Daily Action Center" on your desk where you can place frequently accessed items, such as notes for upcoming meetings or fax cover sheets. If you have a filing cabinet, keep the folders that you need on a regular basis close by. You're more likely to stick to an organization structure if it fits the way you work, Leist said.

And before you file something away, go through the papers and throw out what you don't need. The less extraneous paper you have in your files, the less time you waste when you look for something you need.

Leist recommends trying the new system for at least three to four weeks. If it doesn't work, keep experimenting until you find one that does.

But not everyone says a clear desk is always the solution to a less-cluttered mind.

Merrill said his desk doesn't look organized to an outsider, but the Post-its and paper piles have a purpose. To keep them from getting out of hand, he goes through the piles every week and throws away papers he doesn't need.

Merrill also recommends transferring as much data as possible, such as phone numbers or old notes, onto your computer. That way, you avoid piling up papers and you can retrieve the information when you need it again.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

No Haggis For You

Seth Fiegerman — Mon, 01 Feb 2010 14:57:46 -0500

Americans will eat almost anything, whether it’s the chocolate covered bacon maple donut bar or the fabled deep fried apple pie at McDonalds. But apparently, even we have our limits.

For the last 21 years, there has been a ban on importing haggis from Scotland. In case you’re too busy munching on your third Whopper today to check Wikipedia, let me just tell you about Haggis. It’s a popular delicacy from across the pond made from sheep innards (intestines, heart, etc) that is mixed together and then cooked in a sheep’s stomach. Yum!

Well, the reason it’s banned is not due to our refined sense of taste, but rather because of health fears. In 1989, there was a big mad cow scare and haggis somehow got lumped in with that. On top of that, there is another pre-existing ban on any food that is made with lungs (did I forget to mention that lungs were part of the cornucopia of meat in haggis?).

For a few days last week, there were rumors that the United States would finally lift this ban on haggis soon, but that was recently refuted.

“Recently, several news articles have incorrectly stated that the US will be relaxing or lifting its ban on Scottish haggis," a spokeswoman for the US Department of Agriculture told the BBC.

But as the BBC points out, even if the ban were to be lifted, it’s unlikely that authentic haggis would ever really catch on in America because of its “reputation for repulsiveness.” We do have standards after all.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

The Best Bank for Our Armed Forces

Brian O'Connell — Mon, 01 Feb 2010 14:28:15 -0500

Maybe haven’t heard of it, but if you are either serving in the armed forces or were honorably discharged from the military, there’s a top-ranked bank eager to have you as a customer. It’s called USAA, and it has a deal or two for GI Joes and Janes.

USAA doesn’t actually bill itself as a bank, although banking is at the very core of what it does. Its Web site describes it as “a diversified financial services group of companies, (that) is among the leading providers of financial planning, insurance, investments and banking products to members of the U.S. military and their families.”

The bank — yes, that’s what we’re calling it — counts 7.3 million members or former members of the military, with $68.3 billion in assets under management. In 2009, when a lot of banks recorded their financial ledgers in red ink rather than black, USAA earned $423 million in net income and generated positive investment income. The bank also returns a good chunk of those profits to members in the form of dividend checks.

According to its Web site, USAA was founded in 1922 by a group of Army officers who decided to self-insure each other, forming the United States Army Automobile Association. In 1923, the company began to extend eligibility to the other branches of the armed services, and was renamed United Services Automobile Association (USAA) the following year. In 1996, eligibility was extended to U.S. military enlisted personnel — but only personnel who served in or after 1996.

But now the bank is offering membership to U.S. armed forces veterans who served prior to 1996. Joe Robles, a retired Major General in the U.S. Army and the chief executive officer at USAA, announced in a recent letter to members that the banks was lifting the restrictions on retired U.S. armed forces personnel. “Our mission states 'USAA seeks to be the provider of choice for the military community.' Not just the officer community. Not just military retirees. Not just those who served after 1995. (So) we are carefully and responsibly managing USAA's growth, and have taken incremental steps in expanding membership eligibility to bring us to this point. We wanted to be very sure that USAA has the capital, the operational capacity and the capability to precisely underwrite and price for risk at the individual level.”

The bank thinks that there are enough interested U.S. military veterans that it could raise its membership rolls from 7 million to anywhere between 25 million to 60 million — particularly with the huge influx of retired Korean War veterans (3 million), Vietnam veterans (about 7.3 million) and almost 2 million Gulf War veterans, according to the U.S. Department of Defense.

The bank has a good story to tell veterans too. It’s been named “Customer Service Champ” by Business Week three years running; it has a reputation for low credit card rates that don’t rise on a whim; and it has a good track record on keeping bank fees low.

What are the up-to-date criteria for becoming a member of USAA? According to the bank, you can join USAA if:

Your parents have ever been USAA members;
You serve in the military;
You have served in the military and were honorably discharged.

If that describes you, check out USAA for yourself here.

We can never really repay the brave men and women who put their lives on the line to protect our country,but USAA is certainly doing its part to make life a bit easier for our armed forces, current and retired. And there’s something to be said for that.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Proposed Health Plans Could Cost Less

Joe Mont — Mon, 01 Feb 2010 13:32:06 -0500

WASHINGTON (TheStreet) — President Barack Obama asked Congress not to "walk away" from health care reform during his State of the Union speech on Wednesday. As legislators grapple with how to pay for a program that could cost as much as $1 trillion over 10 years, Americans are wondering how much they might have to pay for government-sponsored coverage.

While the cost for consumers will be unclear until the House and Senate bills are combined, a review of the bills gives some hints as to where it would hit the average American's wallet.

What would premiums cost?

The Congressional Budget Office estimates that insurance under the proposed "bronze" plans, the lowest level of coverage, would cost as much as $5,000 for single policies and as much as $12,500 for family policies by 2016. The average premiums among all types of plans in 2016 would be $5,800 for single policies and about $15,200 for family policies.

That's less than the current premiums for employer-sponsored health insurance. The average annual premium for these family plans has more than doubled from $5,791 in 1999 to $13,375 in 2009, according to the Kaiser Family Foundation, a health care think tank. Individual plans rose from $2,471 to $4,824 during the same time period.

On average, covered workers contributed 17% of the total premium for single coverage and 27% for family coverage in 2009, a rate that has remained relatively stable for the past several years, according to the foundation

Under the House plan, families that earn up to 400% of the federal poverty level would qualify for subsidies. Individuals who earn $20,000 to $35,000 a year would pay between $947 and $3,500 after subsidies.

The Senate plan would also subsidize coverage for people with income levels between 100% and 400% of the federal poverty level, which was $18,310 for a family of three in 2009. Medicaid would be expanded to all individuals with incomes up to 133% of the federal poverty level.

What if you don't buy coverage?

The Senate bill would phase in a non-coverage penalty beginning in 2012. The fee would start at $95 (or 0.5% of the person's income if that amount is larger) and rise to as much as 2% of income, or $2,250 per family and $750 for individuals, by 2016.

The House bill would tax 2.5% of an individual's income, capped at the cost of an average premium.

How would employers be affected?

Companies with more than 50 employees that don't offer health insurance would be forced to pay $750 per worker under the Senate plan. At smaller firms, if even one person receives coverage, the charge is enacted.

If the premiums offered by an employer are higher than 9.8% of an employee's income, and that employee obtains coverage through the government program, a $3,000 penalty will be assessed.

The House bill would require employers to subsidize at least 72.5% of the premiums for individual coverage and 65% of the premium for family plans. Companies that don't comply could face a payroll tax of as much as 8%. Companies with annual payrolls of less than $500,000 would face no assessment. Those with payrolls of $500,000 to $584,999 would pay 2% of payroll; $585,000 to 669,999 would pay 4%; and $670,000 to $749,999 would pay a 6% assessment.

Would there be a tax increase?

The House bill would hit individuals with adjusted gross incomes exceeding $500,000 (and households earning more than $1 million) with a 5.4% income tax.

The Senate bill doesn't include such a levy, but there is a tax on what are being called "Cadillac plans." Insurers and plan administrators who offer plans valued at $8,500 for individuals or $23,000 for families would be charged a 40% tax that would likely be passed on to consumers. Some industries, such as mining and construction, would be exempt.

The Senate bill also proposes increasing the Medicare payroll tax from 1.45% to 2.35% for individuals earning more than $200,000. Employers would continue to pay their current tax of 1.45%.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

BofA: No Security Breach in Site Outage

Michael Schreiber — Mon, 01 Feb 2010 12:45:22 -0500

Bank of America (Stock Quote: BAC) tells us that while their consumer Web site was indeed down most of the day on Friday, there was never any security risk to account holders’ personal data. So, in other words, if you’re a BofA customer, the bank says you don’t have to worry about your Social Security number floating around out there as a result of this outage.

They are still investigating the root cause of the problem, a BofA spokesperson told us, and let’s hope they find it. As we reported on Friday, BofA initially told their Twitter followers that only a “few” of their customers were experiencing the outage. It turned out to be quite a bit more widespread, though the true extent of the outage remains largely unknown. However, a Google (Stock Quote: GOOG) blog search for the phrase “Bank of America web site down” yields more than 20,000 results posted since Friday.

This wouldn’t be the first time the bank has had to deal with some bad press. Check out our recent slideshow about dissatisfied BofA customers and former employees going viral with their grievances.

Who's Hiring Full-Time: Network Solutions, Lexmark and Bioware

Bobbi Dempsey — Mon, 01 Feb 2010 12:30:31 -0500

Unemployed? Worry not! Every Monday, MainStreet finds companies that are hiring full-time workers—right now.

Network Solutions

Who They Are: Provider of domain registration, Web site design, hosting and related services.

Where They Are: Based in Herndon, Va., with several other U.S. locations.

What They Want: Obviously, tech-related professionals are in high demand here. They also have openings in engineering, design and marketing. Reportedly, engineers here can garner a starting salary in the area of $50,000, while product managers can make slightly more than that.

Coolest Job: They need a Copywriter who will be based in their Belleville, Ill. offices. This person will write content for Web pages and other materials, analyze keyword phrases and oversee SEO content. Requires college degree in communications or journalism, plus marketing or professional writing experience and ability to work independently.

Apply here.

Next Page: Lexmark

Lexmark (Stock Quote: LXK)

Who They Are: Provider of printing and imaging products.

Where They Are: Based in Lexington, Ky., with many other locations worldwide.

What They Want: They have openings in engineering, marketing and operations. Reportedly, engineers at this company have an average starting salary of about $60,000.

Coolest Job: They need a Senior Manager of Strategic Messaging who will assist in the development of marketing and communications strategies and educate teams throughout the company with regards to brand management. Will also help develop innovative in-store messaging campaigns. Requires eight to 10 years of marketing experience, including heavy experience with messaging.

Apply here.

Next Page: BioWare
BioWare

Who They Are: Electronic entertainment company specializing in creating computer video games.

Where They Are: They have locations in Alberta, Canada and Austin, Texas. The company was named one of Canada's Top 100 Employers for 2010 by Mediacorp Canada. Salaries for most positions are said to start in the $50,000 range, and they also have contract/freelance positions available.

What They Want: They have openings in programming, design, art and production.

Coolest Job: They need an Assistant Community Manager based in Austin to serve as administrator of the company's online communities. Duties would include developing community assets such as podcasts, product updates, game tips and tricks. Requires degree in marketing or communications, plus at least three years experience with massive multiplayer online games and/or social network communities.

Apply here.

Next Page: Bonus Job!

Bonus Cool Job of the Week

Attention all you CSI junkies: this job may be your dream gig, especially if you've always wanted to work in the Big Apple. The NYPD is seeking criminalists who will conduct physical and chemical analyses of evidence in various criminal investigations. Evidence may include hair, fingerprints, gunshot residue or controlled substances. Requires a college degree in a concentration related to criminal justice, chemistry or forensics. Pay scale starts at $43,000 per year, but candidates with advanced credentials or professional experience can start at a higher rung of the pay scale.

Apply here.

Economic Growth Doesn't Always Mean Jobs

The Associated Press — Mon, 01 Feb 2010 11:34:29 -0500

By Jeannine Aversa, AP Economics Writer

WASHINGTON (AP) — The economy's 5.7% growth last quarter — the fastest pace since 2003 — was a step toward shrinking the nation's 10% unemployment rate.

There's just one problem: Growth would have to equal 5% for all of 2010 just to lower the average jobless rate for the year by 1 percentage point.

And economists don't think that's possible.

Most analysts say economic activity will slow to 2.5% or 3% growth for the current quarter as the benefits fade from government stimulus efforts and from companies drawing down less of their stockpiles.

That's why the Federal Reserve and outside economists think it will take until around the middle of the decade to lower the double-digit jobless rate to a more normal 5% or 6%.

Another way of looking at it: A net total of about 3 million jobs would have to be created this year to lower the average unemployment rate by 1 percentage point for 2010, economists estimate. Yet even optimists think the creation of 1 million net jobs is probably out of reach this year.

High unemployment poses a risk to the unfolding recovery because it leads consumers to spend less, keeping economic growth weak. A sharp pullback in spending might even push the economy back into a recession. Joblessness also represents a danger for President Barack Obama's Democratic Party in this fall's congressional elections.

The National Association for Business Economics and the International Monetary Fund think gross domestic product will rise just under 3% for all of this year. GDP, the best gauge of economic activity, measures the value of all goods and services produced in the United States.

To get a sense of just how deep a dent the worst recession since the 1930s has made in the economy, consider this: The economy shrank 2.4% for all of 2009 — the sharpest drop since 1946. It was also the first annual decline since 1991.

Mark Zandi, chief economist at Economy.com, and Bill Cheney, chief economist at John Hancock, agree that the economy would have to grow roughly 5% for all of 2010 just to ratchet down the average unemployment rate for the year by 1 percentage point — to a still-high 9%.

Their math is based on Okun's law, named for economist Arthur Okun. In 1962, Okun produced a formula for the connection he saw between unemployment and economic activity.

Exactly how much GDP growth is needed to lower the unemployment rate for a given period varies. That's because the formula involves several factors besides GDP growth. It also considers, for example, businesses' productivity growth.

When the economy was recovering from the 2001 recession, it took two years to reduce the unemployment rate by nearly a full percentage point: It fell from 6% in 2003 to 5.1% in 2005. GDP growth averaged just over 3%.

Economists say the formula hasn't always held up perfectly in recent decades. Rather, it's relied upon as a rough rule of thumb for determining how much growth will be needed to lower unemployment.

But a near-textbook case occurred in 1976, when the economy expanded at a 5.4% pace. As Okun would have predicted, that growth drove down the unemployment rate by nearly a full percentage point: from 8.5% in 1975 to 7.7%.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Mortgage Trends This Week: Feb. 1

Brian O'Connell — Mon, 01 Feb 2010 11:17:42 -0500

Here’s a fact that could ruin your Monday morning (unless you’re a banker).

Peter Morici, former chief economist at the U.S. International Trade Commission, points out that the U.S. gross domestic product increased by a weak $176 billion in the second half of 2009 (after adjusting for business inventory bookkeeping procedures). During the same period, Morici points out, U.S. banks paid out nearly $150 billion — and earned roughly twice that amount of money in profits.

As Morici says in a RealClearMarkets.com post, “It is easy to see who is benefiting from (President) Obama's growth policies, and why most Americans feel a bit poorer each day.”

Maybe that’s why so few financial pundits — and American families — made a big deal out of the news that the GDP grew by 5.7% in the last quarter of 2009. Discounting the inventory liquidation that took place during the quarter as panicked companies throttled down on inventories in the teeth of a big consumer recession, real GDP was closer to 2.2% for the quarter. In addition, business investment is off by 14.6% from a year ago at this time, and American workers are taking a huge hit in their paychecks. According to the U.S. Labor Department, wages and benefits rose by just 1.5% in 2009 — the lowest number ever recorded.

Clearly, the U.S. economy remains in a world of hurt, and that pain is reflected in the downward trend in mortgage rates last week.

Here are the numbers, as measured by the BankingMyWay Weekly Mortgage Rate Tracker:

Description This Week Last Week

One-Year ARM 3.95% 4.31%

Three-Year ARM 4.03% 4.46%

Five-Year ARM 4.18% 4.41%

15-Year Mortgage 4.5% 4.57%

30-Year Mortgage 5.09% 5.15%

Under normal circumstances, you’d think that a 5.7% GDP number would be enough to kick start the economy and boost mortgage rates in the process. But these aren’t normal circumstances, and this isn’t a real GDP number — it’s more of a reflection that U.S. companies are once again battening down the hatches by reducing inventories, and getting ready for a second economic tsunami later this year.

That’s the growing sentiment among economists and financial gurus these days. According to Peter Schiff, author of the best-selling book Crash Proof: How to Profit From the Coming Economic Collapse, both Washington and Wall Street just don’t get it. “The President spoke optimistically about the future, but in reality there is little evidence to support such an upbeat outlook,” says Schiff. “He began his speech by assuring us that the worst of the storm had passed. General Custer may have said something similar when the first wave of Indian attacks ebbed at Little Big Horn.”

The silver lining, of course, is that mortgage rates continue to be at historic lows. To get the best mortgage rates deal possible, visit BankingMyWay’s Mortgage Rate Search. In troubled economic times, you won’t find rate deals lower anywhere else.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Fire Hazard: Honda Recalls 646K Vehicles

David Seaman — Mon, 01 Feb 2010 11:03:36 -0500

Are none of our cars safe anymore? We should all just walk, or take the bus, because Toyota’s recent “our gas pedals are defective, our bad” had me freaked out enough.

But now Honda, another respected Japanese automaker, is reportedly recalling 646,000 of its modern-looking 2007 and 2008 Fit models “due to fire hazard involving the power window switch.”

But is it a big deal? That depends entirely on whether you want to die in a ball of flames after trying to put your window up. The issue reportedly “resulted in a death in South Africa.”

I would take this one seriously. If you have a 2007 or 2008 Honda Fit, or know anyone who drives one, pass this article along. In international markets, the Fit is sold as the “Jazz” or “City”—both of which are also affected, since it is the same car, with only a different marketing campaign.

Honda said it will be contacting customers with instructions on how to fix the problem at your local dealership. 2009 and 2010 models are reportedly not affected by this recall.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Money Markets Just Got Safer

Jeff Brown — Mon, 01 Feb 2010 10:29:09 -0500

The Securities and Exchange Commission has adopted new rules to make money market mutual funds safer, responding to a “breaking-the-buck” incident that roiled markets in September 2008, leaving many investors worrying about whether their money was safe.

The new rules were adopted Jan. 27 and bar funds from investing in illiquid, risky assets, better insuring that money market funds will hold steady at $1 a share and be able to meet shareholder redemptions.

So, how risky are money markets? The short answer: not very. Their track record is excellent. For a longer answer, it’s important to remember that there are two types of money markets.

The SEC action involves money market mutual funds operated by fund companies and brokerages. They invest in short-term securities and pose a theoretical risk of loss. The Reserve Primary Fund lost money in 2008 because of investments in securities issued by Lehman Brothers, the failed investment bank. Risky holdings like that are now banned, but the government does not guarantee you’ll get back every dollar you put in.

The second form is the money market account held at a bank. These are insured against loss by the Federal Deposit Insurance Corp., a federal agency. Your money is just as safe as it would be in an insured savings account or certificate of deposit.

Because money market funds have such a good track record, the distinction between the two types makes little practical difference since neither pays much interest these days. The BankingMyWay.com Survey finds the typical money market account yielding 0.358%. You can do a bit better looking around with the shopping tool, but you’re not going to get rich.

Money market funds usually pay about the same, though many are even stingier than money market accounts right now. Yields vary a bit more depending on the kind of securities a fund owns. Some specialize in U.S. government securities, others in municipal bonds or bank CDs, for instance. But the general rule applies: you won’t get rich.

Money markets, whether funds or accounts, are about safety and liquidity.

So, if chasing after slightly higher yields doesn’t make sense, how do you choose one money market over another?

Base the choice on convenience. A key factor is your ability to move money back and forth between a money market and other investments. If you have a lot of investments with a mutual fund company, use one of its money market funds. That way, proceeds from any investment sales can immediately move into the money market fund to start earning interest.

You can use checks issued by the money market fund to get at the money immediately. And if you find a new investment with the same fund company, you can use a phone call or click of a mouse to pay for it out of the money market fund. Also, interest and dividends from various investments can be automatically “swept” into the money market fund.

For a money market account, your best choice is probably the one offered by the bank you use for checking, savings, CDs and perhaps your mortgage. With electronic banking, you can easily move money from place to place.

The money market account is perfect for a rainy-day fund. It’s readily accessible, even if you are limited to just a few transactions a month, and it will pay a bit more than you’d earn in a savings account or interest-bearing checking account.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Tax Tips: Investments That Pay

Robert D. Flach — Mon, 01 Feb 2010 07:00:00 -0500

Investment interest — interest paid on debt used to purchase non-business investment property that produces interest, dividends, royalties or will produce gain or loss from the sale or trade, such as stocks and bonds, mutual fund shares, limited partnership units or real estate (not rental property) — has a long definition, we know. But it's deductible, which means you really ought to know about it.

The most common type of investment interest is “margin interest” on a brokerage account.

The deduction for investment interest is limited to “net investment income," which includes income from property held for investment, dividends that do not qualify for the special capital gains tax rates, royalties and net short-term capital gains. Net long-term capital gains are not considered investment income for purposes of deducting investment interest. Deductible investment expenses, such as those allowed as a miscellaneous deduction on Schedule A, are subtracted from investment income to determine the “net investment income” limitation.

Any excess investment interest that can't be deducted in the current year because of this income limitation is carried forward and deducted on future tax returns.

If you use a margin loan for anything other than the purchase of additional investments, to buy a car for example, the resulting margin interest will be considered personal interest and not investment interest and therefore will not be deductible. The IRS applies special “tracing” rules to track the use of loan proceeds and determine how to classify the interest.

New Jersey tax pro Robert D. Flach has been preparing 1040s for individuals since 1972.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Valentine's Day on the Cheap

Eleni Himaras — Mon, 01 Feb 2010 07:00:00 -0500

You don't have to go deluxe to impress your valentine. Here are the cheap ways to make a V-Day date a memorable one.

The Best Stuff to Buy In Bulk

David Seaman — Mon, 01 Feb 2010 07:00:00 -0500

Sure, it may seem weird to buy eight months’ worth of paper towels in a single visit to the store... but you could save a lot of money over time.

The Most Depressed States

Althea Chang — Sun, 31 Jan 2010 07:00:00 -0500

How depressed are people in your state? MainStreet lists the best and worse states for mental health.

Who's Hiring this Week (Jan. 31)

MainStreet.com Staff Writers — Sun, 31 Jan 2010 07:00:00 -0500

Check out MainStreet's roundup of companies hiring full-time, part-time, freelance and telecommuting workers.

The Dumbest E-Mails Ever Sent

Seth Fiegerman — Sat, 30 Jan 2010 07:00:00 -0500

Our collection of the worst e-mail mistakes ever made.

14 Cars Fit for Retirees

Miranda Marquit — Sat, 30 Jan 2010 07:00:00 -0500

From cars designed to help ease arthritis and joint pain to cars that can cater to vision issues and mobility, here are 14 vehicles ideal for seniors.

Energy Audits: Wasteful or Worth It?

Marek and Lori Fuchs — Fri, 29 Jan 2010 16:46:33 -0500

Lori and Marek Fuchs have never fought in their 16 years of marriage — except over money. In this column, Mr. and Mrs. Fuchs, a real-life married couple with three kids (ages 12, 8 and 5), articulate their very different approaches to personal finance.

This week, the Fuchs talk about their recent energy audit. He says, despite his original doubts, the audit was worth it. She says "I told you so."

Mrs. Fuchs: Admit it.

Mr. Fuchs: Absolutely not. Admit what?

Mrs. Fuchs: That we were right to have that energy audit of our house, even though it cost $300.

Mr. Fuchs: While it pains me to admit you were right, — ouch, ouch, oh, the agony — you were. But, man, I was really apprehensive at first. They came to our house with a big exhaust fan, which they affixed to the front door, blocking out all the space around the fan. Then they turned it on and the ensuing air flow revealed cracks and crevices where the breeze from the outside comes into the house and replaces warm, expensive heat with outdoor chill.

Mrs. Fuchs: That’s right. You thought that the only solutions would be to install new windows and to insulate the whole house from top to bottom. Both were so expensive that you all but dismissed even the assessment. You didn’t reckon that, thanks to the assessment, we’d learn relatively inexpensive solutions that will save us a lot of money by using less electricity and natural gas, and that there are financial incentives to do so.

Mr. Fuchs: It’s the story of our lives — you knew it all. In all seriousness — actually, that was kind of serious — I’ll admit it: the idea of a giant exhaust fan seemed like a gimmick. And I never quite realized that simple solutions like caulking between the baseboards and floor, where there is space in an old 1920s era house like ours, can save money and make your toes feel more comfortable on a daily basis.

Mrs. Fuchs: As long as you use a certified person for your assessment, it can be quite educational and useful to homeowners from both an economic and comfort level. As in our case, many certified assessors are willing to roll the price of the assessment toward fixes. And the fixes run the gamut from the inexpensive, like caulk, to a full insulation job. And even that can pay for itself in energy savings, in our case in less than eight years. There are federal and state incentives too.

Mr. Fuchs: Tell them what you did. You became the neighborhood HMO for insulation.

Mrs. Fuchs: Well, I don’t know about an HMO — people had choice here. But I did get us buying power by organizing about a dozen neighbors, so we could negotiate as a group. (Not to mention using each other’s expertise and instincts to find the right companies.)

Mr. Fuchs: Interestingly enough, out of the dozen or so neighbors in our energy assessment collective, a lot opted for an economical, half-way insulation, which is supposed to pay off in three or four years, according to estimates. This, though, involves insulating the rim joints (where your house hits the foundation and, after settling over years, leaves gaps) and the attic, where heat rises and, without proper insulation, dissipates into the sky above. Those who went this route paid about $4,000.

Mrs. Fuchs: They’ll save money, the environment and the tips of their toes.

Mr. Fuchs: Toasty toes. Money spent wisely.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Bank of America Web Site Down - FAIL (Again)

David Seaman — Fri, 29 Jan 2010 15:04:20 -0500

UPDATE 4:11 p.m. ET: Bank of America's consumer banking web site now appears to be up... for some people here on MainStreet. Others, not so much. The bank has bigger problems, though, like these unhappy (and vocal) customers.

Hapless banking giant Bank of America Corp. (Stock Quote: BAC) is sure to be the LOLcat of the Internet this afternoon. The company’s consumer banking site, BankofAmerica.com, is down at time of publication and unavailable. The mobile version this morning was sluggish as well, although that might have more to do with my iPad Nano’s terrible cell coverage than with BofA.

But don’t worry, people. It’s not like you need access to their Web site to check your balance and move money between accounts or anything. Just get your butt to an actual branch.

Bank of America: Angering customers. Angering Washington. Angering the Internets. That’s a winning triple play if I’ve ever heard one.

Bank of America isn’t saying much. How could they? Their Twitter page, however, seems to indicate they’re in complete denial or are confusing the company intranet with the Internet. They posted the following tweet at 2:37 p.m. ET: “We are aware some customers are experiencing access issues. Tech team is working diligently to resolve as quickly as possible.”

If by some customers, you mean everyone...

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.

Pay Your Mortgage by Renting a Room

Brian O'Connell — Fri, 29 Jan 2010 14:13:18 -0500

OK, times are tough — so tough that you might be considering taking on a boarder to meet your monthly mortgage.

If so, you’re hardly alone. According to RealtyTrac, 2009 punched out with a record number of 3.96 million foreclosure filings (including default notices, scheduled auctions and bank repossessions). With tens of millions more homeowners late on their mortgages, and another 7 million who have lost their jobs in the last year alone, there’s a huge appetite among U.S. homeowners to do whatever it takes to make their mortgage payments and keep their homes.

Increasingly, that includes renting out a room in their home. If you decide to go that route, you’d be doing yourself a big favor by planning things out in advance. After all, renting a room to a stranger pretty much defines the meaning of the word "risk." It may very well pay off, but the chances of the process going well depend largely on the due diligence you expend before anyone exchanges house keys.

Do you really need to rent that room? Certainly, at any given time, things may look bleak. If you lost your job, or face a mortgage rate hike on your adjustable-rate loan, paying your monthly mortgage isn’t a sure thing. But try to take a longer view before you rent a room. If you’re confident of finding another job, can lean on savings, or, in the case of an ARM loan, you can refinance your loan, these are all better options of signing a rental room lease of one year or more. If you've taken all of these options under advisement and still want to rent a room, here are a few tips to take with you during the process:

Check the legality. Your neighborhood, subdivision or condominium complex may have rules against homeowners renting out rooms to tenants. Check with your tenant association or neighborhood association to see if there are any occupancy rules or bylaws that come into play when you rent a room. If you live in a single standing home, you should have no problem.

Keep it functional. Your rental room ideally should have a separate entrance, along with a separate bathroom and/or kitchen area. That’s not feasible in most U.S. homes, so you might have to renovate a basement area to accommodate your tenant’s needs — and that could cost you thousands of dollars in contracting costs.

Make sure your insurance is on board. Check with your insurance company before renting out a room. More people in your home means more risk — and insurance companies write homeowner policies specifically based on risk. If there is a provision in your policy that prohibits renting out rooms in your home, and you don’t tell your insurer that you’re doing so, you run the risk of having your homeowner insurance canceled.

Factor in utilities. Again, more people in your home also means higher electricity, water and heating costs. Factor higher utilities in before you decide on a rent amount. For a good home utility calculator, visit this site.

Get your taxes organized. The IRS has specific rules on declaring rental income on your taxes. Make sure to declare all rental income on your forms. If not, big tax penalties may kick in down the road. Check out the IRS Web site for more information.

Run a credit check. To mitigate potential problems, run a credit check on all rental applicants. Running a criminal background check is a good idea, too. Start at CriminalSearches.com.

Renting a room is usually a last resort for homeowners. If you have to go down that road, do your homework first, rent to someone you know and make sure both you and your tenant have an easy out if things get problematic.

Your home — and your safety and sanity — may depend on it.

—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.