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8 Sexy Tips for Valentine’s Day Savings

MoneyTalksNews — Wed, 08 Feb 2012 14:00:48 -0500

By Brandon Ballenger

It’s that time of year again – love is in the air, and so is spending.

Last year, the average person spent an estimated $116 on Valentine’s Day merchandise for a holiday total of $15.7 billion, according to the National Retail Federation.

If your heart’s in the right place but your bank account isn’t, not to worry. There are a lot of ways to save for V-Day, and in the video above, Money Talks News founder Stacy Johnson shares a few of them. Like Stacy says – and it’s true with almost anything – creativity saves cash. Here are several ideas to spend less this Valentine’s Day…

Skip chocolates. Rather than buying the expensive stuff, grab a Valentine’s-themed gift bag (or a generic pink or red one) and add some cheaper candies like those little hearts that say “I love you.” Or skip candy altogether for the next idea…
Bake. Especially if you don’t normally spend a lot of time in the kitchen, a batch of cookies or brownies can be a touching gift. Here’s a bunch of Valentine’s Day cookie recipes, but you don’t need to get fancy unless you want to – you can get the mix and heart-shaped cookie cutters (and sprinkles or icing if you want to go nuts) from the grocery store for a few bucks, and all you’ll need to add is simple ingredients like eggs and milk. Including the trip to the grocery store, it won’t take more than an hour or two.
Flowers. While you’re at the supermarket, check out their floral section – as long as they keep their flowers refrigerated, they can be just as good as an independent florist’s and are probably cheaper. Refrigerated flowers last much longer than what you’ll get on the side of the road or online. And don’t grab the prettiest ones – grab the ones that are still budding. They’re just about to bloom, which is romantic, and they last the longest.
Plants. Instead of paying a premium for dying flowers, you could buy a nice potted plant and grow your own throughout the year. Or you can get seeds, and promise to plant a little garden with your lover.
Dinner in. We hate to send you back to the kitchen, but the cheapest and most romantic meal is homemade. If you’re not an expert chef, stick to something simple to make and cheat with a pre-made dessert and something nice to drink. Prosecco can be a less expensive alternative to champagne, and then there’s boxed wine. It’s affordable, looks just as good once it’s in a decanter, and research suggests there’s not much correlation between price and quality anyway. Find a nice spot to eat – you can do it picnic-style in the home as Stacy suggested, or even outside if you have space and it’s not too chilly. Dim the lights and use some candles to add to the mood.
Dinner out. If you insist on eating out, celebrate early – V-Day falls on a Tuesday this year, which is a great excuse to celebrate on the weekend. You’re less likely to need a reservation that way and won’t pay the holiday tax of jacked-up prices. If you want to go somewhere upscale and still save, head out for an appetizer and beverage, but have the main course at home.
Jewelry. Unlike wine, jewelry’s an area where you probably don’t want to risk faking it. Check out our story on taking the stress out of buying jewelry so you know how to evaluate gold and diamonds. Get the nicest thing you can, but don’t blow your budget – there’s always next year to save and get something better.
Other gifts. If you can’t afford jewelry, period, here’s an idea. Along with a nice card, give a handwritten promise to provide some kind of service to your loved one. Pick some chores you normally avoid, and take them on without complaint. Or, how about a scrapbook? Prints are cheap, and you don’t even have to do all the work – assembling a collection of your favorite memories together can be a romantic event in itself.

One last idea: take advantage of pre-Valentine’s Day sales that are going on now, but won’t be next week. See Karla’s Today’s Deals column for examples.

Romance got you thinking about spending a lifetime together? Check out 25 Top Tips to Save on Weddings and 10 Ways Getting Married Will Make You Richer.

10 Totally Vulnerable Company Towns

Joe Mont — Wed, 08 Feb 2012 13:30:00 -0500

BOSTON (MainStreet) -- "You load 16 tons, what do you get/Another day older and deeper in debt/Saint Peter don't you call me 'cause I can't go/I owe my soul to the company store." -- "Sixteen Tons" by Tennessee Ernie Ford.

From the early days of railroads, timber and mining, companies did more than just bolster local economies -- they created them.

In modern times, the idea of the "company town," a village owned and operated by the boss, may seem antiquated. They still exist in various forms, however, and their fates fluctuate with the fortunes of their benefactors.

There are also cities and towns, as illustrated by the Detroit area, where overreliance on a single industry has proved costly and heartbreaking.

We took a look at 10 cities and towns that either are or could become at risk because of their dependency on a single company or specific industry.

Scotia, Calif.

You know a company town has hit rough times when it is owned by a hedge fund.

In its better days, Scotia -- near Eureka -- was carved out of land owned by Pacific Lumber. It was incorporated in 1863.

Over the years, times were good. It weathered the Great Depression better than most communities and even had a bit of a housing boom from the 1920s to 1950s. A school, churches, shopping center, hotel and post office served its residents.

Things went bad in 2006 when the company began seeking buyers for the residential and commercial property it owned. The following year, the once mighty timber company filed for bankruptcy. Marathon Asset Management, a New York-based hedge fund that was Pacific Lumber's largest creditor, was awarded ownership of the town during bankruptcy proceedings.

To its credit, the fund continued to invest in community amenities even as its population dropped. At the time of the 2010 census, the once thriving small town had dwindled to about 850 residents in 265 households.

Last summer, however, residents faced an ultimatum. Marathon gave them the option of either incorporating as an independent town or face being sold off.

In September, residents voted for independence. Time will tell how its residents adjust to weaning off corporate benefactors for the first time in their town's history.

Las Vegas

The very definition of a single-industry town can be found among the glitter and neon of Las Vegas.

The epicenter of American casinos, however, has a gambling problem. As in: Not enough people are doing it.

In fiscal 2011, the 22 casinos in the Las Vegas Strip area produced gaming revenue of more than $72 million, according to UNLV's Center for Gaming Research. But it's been tough sledding for the glitzy gambling palaces. When it ditched promotional offers and most comps last year, Las Vegas Sands (Stock Quote: LVS), owner of the Venetian and Palazzo, saw its casino revenue plummet 47%.

As Caesars prepares for an IPO, its attraction to investors may prove to have more to do with its more profitable online enterprises rather than its U.S. locations.

When investors are placing bets on other big gaming companies, their hope typically focuses on profitable locations overseas (in Macau, for example), rather than slumping properties in the U.S.

According to state statistics, Clark County -- home to Sin City -- had 148 casinos grossing $1 million or more in gaming revenue during FY 2011. They generated a combined net loss of $3.9 billion.

Las Vegas officials and workers need to hope for considerably more luck in the years ahead, lest the industry they have gone all-in with goes bust.

Wilmington, Ohio

In November 2008, shipping giant DHL announced that it would cut nearly 9,500 jobs as its parent company sent its U.S. air-cargo service to UPS (Stock Quote: UPS).

The move was a shock to the system for Wilmington, a city of 12,500 residents, many of whose jobs depended -- directly or indirectly -- on hosting a DHL hub. Before that company came to town in 2003, Airborne Express had created 8,000 jobs when it took over that same plot of land, an abandoned Air Force base, for use as a shipping hub.

The DHL layoffs shed about 6,000 workers. Additional layoffs in 2008 bled another 3,000 jobs from the Wilmington economy.

Today, the town still struggles, hoping to attract businesses through a jobs initiative offering financial incentives to companies in the "green" sector.

Redmond, Wash.

Perhaps it's a bit disingenuous to include Redmond on a list of at-risk "company towns." It's doubtful technology giant Microsoft (Stock Quote: MSFT) is going anywhere anytime soon.

But just as the timber and railroad towns of decades past once seemed perpetually thriving, will Microsoft continue to dominate that local economy a decade from now? Fifty years from now? A century from now?

According to the Redmond Chamber of Commerce, Microsoft is the largest employer (25,000 jobs) for the city of nearly 54,000 people. As goes Microsoft, so goes Redmond.

The Chamber of Commerce surely understands that risk, or at least the perception of it. Its Web site counters that the city also has thriving companies in biotechnology, medical devices, telecommunications and aerospace. Beyond Microsoft, high-profile employers include AT&T (Stock Quote: T), Honeywell (Stock Quote: HON) and Genie Industries, which employs more than 3,000 people.

Still, when looking at Microsoft's dominant role in the Redmond economy and considering the sprawling amenity-filled megaplexes in California that companies such as Google (Stock Quote: GOOG) and Facebook call home, one might wonder whether these high-tech headquarters are merely a modern variation of the company town.

Newton, Iowa

Commercials paint the iconic "Maytag repairman" as a lonely guy. It may have something to do with his move out of the friendly town of Newton, Iowa.

For decades, the appliance maker was the town's largest employer and the line between company and community was blurred. A proud civic boast: The first mechanical washing machine was built there by company founder Fred L. Maytag. At peak, the company employed more than 5,000 Newton residents.

In 2006, however, Maytag was bought by Whirlpool (Stock Quote: WHR). Almost immediately there were cutbacks and downsizing. Within a year, a decision was made to shutter the manufacturing plant and corporate offices, eliminating 1,800 job from the small town of 15,000.

Despite the occasional glimmer of hope -- a telecom company and wind turbine maker are among the new companies that have set up shop -- Newton is still struggling to move beyond the company that built it up.

Rochester, N.Y.

Last month, we looked at 10 Cities Poised For Greatness In 2012. Among those cities -- and a controversial pick based on reader feedback -- was Rochester. The city earned this optimism in part for having a resilient economy and relatively stable housing market.

There are plenty of folks hoping they can believe that prognostication, especially as Kodak (Stock Quote: EK), the camera company that has long propped up the local economy, looks to soon be a thing of the past.

Kodak filed for bankruptcy Jan. 19, and the impact of its reorganization remains to be seen.

"The most fundamental fact of this announcement is the physical impact as much as the economical impact," Rochester Mayor Tom Richards told that city's WHEC-TV.

A part of the city since around 1880, the company has at times been Rochester's largest employer (62,000 jobs at peak), but the writing has been on the wall for years -- first as digital cameras replaced film, and as Kodak lost market share in the crowded point-and-shoot space.

From a philanthropic standpoint, the community may also take a hit.

"It is likely that we will have to make difficult choices about our philanthropic investments and activities," Kodak's website cautions.

Perhaps a bit more reassuring is this other corporate statement:

"Kodak will still be headquartered in Rochester. This is our hometown and our largest cornerstone in the U.S. and worldwide. We are proud of our long-standing history in Rochester, and our objective is to emerge as an ongoing business enterprise that is assured of long-term viability and so better able to be a vibrant member of this community and all communities of which we are a part."

Huntsville, Ala.

Should Newt Gingrich be eleted president, and make good on his promise to build a moon colony, the people of Huntsville may be among the happiest.

Government cutbacks to the military and NASA have meant tough times for a town whose residents rely on the aerospace industry.

The cancellation of the Constellation rocket program meant $1 billion in lost contracts and hundreds of layoffs by companies counting on them. Roughly 500 jobs have been shed because of budget cuts at NASA's Marshall Space Flight Center.

Last March, another 130 jobs were lost when Boeing (Stock Quote: BA) was caught in the crossfire of federal budget cuts to a missile defense program it was working on.

In the 1970s, Huntsville's local economy was nearly ruined when NASA canceled the Apollo space program. The eventual restoration of NASA programs such as the Space Shuttle brought back money and jobs. But with NASA and military cuts almost certain in the years ahead amid a growing federal defecit, it must feel like deja vu for residents.

Elkhart, Ind.

Shrinking disposable income and with high fuel costs have been bad news indeed for the companies that make motor homes and recreational vehicles.

The epicenter of that pain was Elkhart, a town that proudly proclaims itself the "RV Capital of the World" and is home to the RV/MH Hall of Fame, Museum and Library.

In 2008, as the recession was taking hold, this industry helped keep unemployment at bay at just over 4%. Within a year, that rate soared to 10%, then 13% and up to 18%. At its worse, nearly 20% of the town was unemployed, many losing their jobs as suddenly as the market for the vehicles they made crashed. Nearly 500 companies in the town were forced to enact layoffs.

An uptick in RV sales has helped a little, and unemployment has dropped to just over 11%. A new idea, floated by auto industry commentators, is promoting the town as an ideal place for electric car manufacturing. Time will tell if that idea, or other novel ways to leverage its skilled workforce, will take hold.

Alcoa, Tenn.

You know a town is tied to its top employer when its name decorates the mucipal flag.

Kohler, Wis., is home to the plumbing giant of the same name. Hershey, Pa., is known for its many bars -- of the chocholate variety. Overseas, the Russian community of Gar was "bought" for $150,000 in 2010 and renamed after the Web site TorrentReactor.

Alcoa, Tenn., has a similar distinction, taking its name from the company and the massive aluminum smelting plant it runs there.

Being dependent on an employer the way Alcoa (Stock Quote: AA) is means it benefits when the company does well, suffers when it doesn't.

In 2009, company officials announced a layoff of 13,500 (13%) of its global workforce, as well as 1,700 contract positions. That meant closing a town plant and shedding roughly 450 local jobs.

As tied as it is to its namesake's success, this is one of the few places where commodity futures have a direct impact on quality of life.

New Orleans

New Orleans is a classic American city, but one perhaps overly dependent on tourism to grease its economic engine.

That became sadly apparent after the disastrous double whammy of Hurricane Katrina in 2005 and the BP (Stock Quote: BP) oil spill.

After Katrina, there was a full-court press to rebuild and remarket the city, a task made a little easier by the fact most of its famous French Quarter was spared from the most horrendous storm damage. More than $742 million was spent to repair and upgrade local hotels, the Superdome and the Ernest N. Morial Convention Center. By 2010 tourism was again on the rise, approaching 8 million visitors, more than twice the number after the hurricane.

Then the Deepwater Horizon oil rig exploded, flooding the Gulf of Mexico with poisonous sludge, ravaging beaches, killing wildlife and shutting the local seafood industry.

Tourism in Louisiana, as a whole, generates $8.3 billion in annual spending and employs one out of every 12 people in the state. For New Orleans, a focal point of that business, the oil spill had effects that persist.

A recent report by Louisiana's Department of Culture, Recreation and Tourism does at least offer good news: Business travel is expected to make up for the some of the loss of leisure travel by 2013. Nevertheless, the tourism industry is still on track to take a $295 million hit.

How to Find a Good Credit Union

Jeanine Skowronski — Wed, 08 Feb 2012 12:47:32 -0500

NEW YORK (MainStreet) — Credit unions continue to remain a popular choice among Americans following the Bank Transfer Day movement, which encouraged customers of big banks to switch their accounts to smaller financial institutions. But while current credit union customers attest to lower fees, better interest rates and quality customer service, other prospective members may be refraining from making the switch because of the legwork involved.

Fortunately, there are several websites that make it much easier to find a credit union in your area that you are eligible to join. Here are a few of our favorites.

CULookup.com

This locator associated with the National Association of Federal Credit Unions allows users to search for credit unions by plugging in their address or existing affiliations or by searching for a specific credit union by name. Basic eligibility requirements are provided and you can request directions to the credit unions you are interested in.

The website also has a feature that lets users compare the rates between credit unions and banks in their state on various banking products (loans, mortgages, credit cards, etc.), and provides personal finance calculators to help prospective members learn more about mortgage rates, auto loans or retirement options.

aSmarterChoice.org

This website, affiliated with the Credit Union National Association, allows prospective credit union members to plug in their address to generate a list of credit unions in their area. You can also search for a credit union by name or an affiliation you may already have. Basic membership eligibility requirements and contact information is provided, and users can also send each credit union an email directly from the website if they need more details.

MyCreditUnion.gov

The National Credit Union Administration’s locator allows you to search by city, state or ZIP code and provides some basic information on whether ATMs and drive-through services are provided. Eligibility requirements are not always clear, but you are provided with contact information for each credit union in your search results. You can request directions to the ones you are interested in, and there are also personal finance calculators on this site.
CreditCardConnection.org

Prospective credit union members can also access the NCUA’s locator from this website, which provides detailed information on the credit cards being offered by local credit unions. The site makes it easier to compare and contrast credit union credit cards by annual percentage rates, rewards programs and the fees associated with the card. Links to all the credit unions evaluated on the site are included so users can get more information on a product they may be interested in.

What are some of the better credit cards being offered by large credit unions in the U.S.? Find out in this MainStreet roundup.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

The Best Maternity Leave Policies in the World

LearnVest — Wed, 08 Feb 2012 12:00:40 -0500

by Cait Flanders for LearnVest

For more about the maternity leave policies in the U.S. and abroad, visit LearnVest.com

Maternity leave is a hot topic with us.

The short, unpaid leaves that most mothers are forced to take when they have a baby is one of the main factors leading to America’s ranking as 31 out of 43 developed countries in terms of being a good place to have a baby (we talked about that here).

That, and the fact that the U.S. is one of the few developed countries that does not have a national policy on maternity leave.

Because of this, Working Mother is trying to make a case for paid maternity leave to be mandated in the U.S.

Now, we aren’t in the business of feeling jealous over what others have. However, after pulling data from the 2011 State of the World’s Mothers report, and piecing that together with the maternity leave policies from the top 10 countries, it’s easy to feel a little green. From receiving up to 100% of their wages to getting as much as 480 days of parental leave, check out what the rest of the world is offering moms. (Countries are ranked based on their maternity leave policies and are not in the same order as presented in the above report.)

Denmark
Maternity Pay: 100%
Duration: 18 weeks

Paternity Pay: 100%
Duration: 2 weeks

Parental Leave: 100%
Pay: 32 weeks *
*The leave period may be extended if the worker returns to work part-time, and the payment is then spread over the longer period. In certain sectors, fathers are entitled to additional non-transferable leave.

France
Maternity Pay: 100%
Duration: 16 Weeks

Paternity Pay: 100%
Duration: 2 Weeks

Parental Leave: Variable*
Duration: 3 years
*Entitled to leave or to work part time until the child is 3 years old. Varying flat-rate payments depending on size of family and leave circumstances.

Netherlands
Maternity Pay: 100%
Duration: 16 weeks

Paternity Pay: 100%
Duration: 2 days

Belgium
Maternity Pay: 75%*
Duration: 15 weeks
*82% for first 30 days, then 75%

Paternity Pay: 100%**
Duration: 10 days
**100% for three days, then 82%

Parental Leave: Fixed amount ***
Duration: 12 weeks ****
***Approx. EUR 653 per month net of taxes
****Was in the process of being extended to four

New Zealand
Maternity Pay: 100%
Duration: 14 weeks

Paternity Pay: 100%*
Duration: 1-2 weeks
*Paid if the partner transfers the statutory entitlement after taking less than 14 weeks of maternity leave.

See the other five countries with Swoonworthy Maternity Leave Policies at LearnVest.com!

More From LearnVest

Find out how the government is trying to help you teach your kid about finance.
Does it cost more to raise boys or girls? You weighed in here.
Create a family financial vision board with these easy steps.

Tax Tip: What You Should Know About Education Deductions

Robert D. Flach — Wed, 08 Feb 2012 11:30:00 -0500

Editor’s Note: This article is part of our 2012 Tax Tips series. Robert Flach is an expert with almost 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.

NEW YORK (MainStreet) – At the end of 2010 Congress extended for two years a laundry list of temporary tax breaks that had expired on Dec. 31, 2009. These included the popular “above-the-line” deductions for educator expenses and students’ tuition and fees, which are still available on the 2011 Form 1040.

Teachers, counselors, principals, and aides of students in kindergarten through 12th grade who have worked at least 900 hours during the school year can deduct up to $250 of unreimbursed out-of-pocket expenses for books, supplies, computer software, equipment and other classroom materials.

For married couples, if both husband and wife are qualified educators they each get up to $250 of deductible expenses. Educators who spend more than $250, as most do, can deduct the excess as an “employee business expense” on Schedule A if their total miscellaneous deductions exceed 2% of adjusted gross income (AGI).

Most undergraduate college students get the best tax benefit by claiming the American Opportunity Credit and not itemizing deductions. Graduate students can claim either a Lifetime Learning Credit or the special Tuition and Fees Deduction.

Joint filers with an AGI of $130,000 or less, and single filers with AGI of $65,000 or less, can deduct up to $4,000 in qualifying expenses for tuition and fees and required books, supplies and equipment. The deduction is limited to $2,000 for married couples with an AGI of between $130,001 and $160,000 and singles with an AGI between $65,001 and $80,000.

These two items are among the 77 tax deductions, tax credits and other tax-saving benefits that expired on Dec. 31, 2011, and will not be around for 2012 unless Congress extends them again, a measure currently under consideration.

If you’re getting ready to file your 2011 tax return, check out MainStreet’s complete guide to free tax tools to help you do it right!

Morning Deals: $50 to Teleflora for $25

Matt Brownell — Wed, 08 Feb 2012 10:12:29 -0500

NEW YORK (MainStreet) – Daily deal site LivingSocial offers a $50 credit to use at online flower retailer Teleflora for just $25. The entire $50 credit must be used in one purchase, though the good news is that it can be applied to shipping fees. Same-day delivery is available from the site. The voucher expires April 1.

Google already tracks your browsing habits, so why not get paid for it? In exchange for installing the Google Screenwise browser extension, which tracks the websites you use and how you use them, Google will give you a $5 Amazon gift card code upfront; you’ll then get an additional $5 credit for every three months you use the extension, for a maximum total of $25. Google promises it won’t associate your email address with browsing habits. To sign up for the program, just enter your email address and you’ll be alerted when registration for the program opens. You’ll need to use the Google Chrome browser to participate.

Daily deal site Saveology offers a $10 gift card to Ben & Jerry’s Scoop Shops for $5. It will be mailed to you for free, it’s reloadable and it never expires. Before you buy we’d recommend checking out the store locator to make sure there’s a location near you. The deal expires at midnight PDT on Friday.

Don't want to spend too much? Check out our Deals & Steals hot topic for more bargains. Don't want to spend anything at all? There's plenty of Free Stuff to be had as well.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Meet the Man With 50 Credit Cards

Jeanine Skowronski — Wed, 08 Feb 2012 09:00:00 -0500

NEW YORK (MainStreet) — Scott Bilker first applied for a credit card in the late 80s when he realized he would need to borrow money to pay his tuition bills. His efforts to avoid paying interest and score better deals quickly got him a very fat wallet.

“I knew it was expensive to use credit cards and had to find a way to minimize the costs,” he says. His quest for the best rewards deals, coupled with his desire to prove he could still get banks to lend to him after accumulating 20-plus accounts, led him to amass more than 80 credit cards by 2007.

According to Bilker, banks rarely turned him down thanks to his perfect payment history.

“I’ve never missed a payment in my life,” he says, adding that his credit score, currently hovering around a solid 790, has been as high as 819.

After downsizing in recent years, Bilker now has 50 credit cards at his disposal with his total available credit close to $250,000. (To be fair, while this arsenal of credit cards is formidable, it’s not the largest one in existence. The Guinness World Record actually stands at close to 1,500.)

Contrary to what some may believe, he says, having a ton of credit cards doesn’t necessarily lead to massive debts.

“I have a car, but I don’t drive it off a cliff,” Bilker says. “A lot of people might have the impulse to [overspend]. I don’t.”

We asked Bilker, who has gone on to share his unique credit strategies in several books and on his website DebtSmart.com, to share some of his favorite stories to get a better idea of how his unique spending strategy has paid off.

What’s currently in his wallet

Bilker, who tracks his credit card usage with software like Quicken and some simple spreadsheets, rotates the cards he actually keeps in his wallet based on which ones offer the best rewards. His current favorites include the Chase Sapphire (Stock Quote: JPM), since its rewards points can be redeemed for movie ticket gift certificates, and the Discover More card (Stock Quote: DFS), which currently offers 5% back on gas and allows points to be used directly for Amazon (Stock Quote: AMZN) purchases.
His favorite card of all time

Prior to using the Sapphire card, Bilker scored even better deals on movie tickets by using his now-discontinued Regal Entertainment Group Theater MasterCard (also co-branded by Chase.) “I was getting $300 per month in rewards,” he says. “I was someone with three children who didn’t have to pay a dime to go to the movies.”

His least favorite card of all time

Bilker signed up for a Spirit Airlines (Stock Quote: SAVE) rewards credit card in an effort to get discounts on airfare, but found the exercise fruitless.

“There were so many conditions [to the rewards program], I couldn’t leverage it,” he says. Reluctant to close the card and inadvertently lower his credit limit, he switched his account to the no-fee/low rewards card the airline offers.

“I never want to close accounts unless they’re charging high fees,” he says. “You cut out your options [when you close cards] and I want to have as many borrowing options as possible.”

His biggest score

Bilker was able to leverage a promotion that Citi (Stock Quote: C) ran a few years ago that entitled cardholders to 10% cash back on home improvement purchases.

“The timing was perfect,” Bilker recalls, as he was getting ready to spend $10,000 on new kitchen cabinets. The promotion effectively saved him $1,000 by giving him that money back to spend on other purchases.

“Don’t spend money to get rewards,” Bilker says. “When I have to use a card [to avoid it being closed for inactivity], I use it on the next thing I was going to buy anyway. Having a credit card doesn’t mean you have to spend.”

Applying for too many credit cards at once can hurt your credit score in the short-term. Find out why in this MainStreet credit Q&A!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

DIY Pest Control: How to Be Your Own Exterminator

Matt Brownell — Wed, 08 Feb 2012 07:00:00 -0500

Exterminators are expensive, but you don’t always have to call in a professional. Here are some tips for dealing with pests on your own.

The 10 Fastest-Growing Jobs in the U.S.

Seth Fiegerman — Wed, 08 Feb 2012 07:00:00 -0500

From stonemasons to biomedical engineers, here are the jobs that are expected to expand the most between 2010 and 2020.

Despite What Clint Says, It's Not Halftime for Detroit Housing

Brian O'Connell — Tue, 07 Feb 2012 16:00:08 -0500

NEW YORK (MainStreet) – New data show that one key U.S. region is losing ground fast on the housing front, and it’s threatening to drag the rest of the nation’s home values down with it.

The Midwest and its worst performer for the fourth quarter – Detroit – have been the subject of much scrutiny this week over a controversial Super Bowl commercial featuring film icon Clint Eastwood.

Depending on your point of view, the commercial either was an uplifting reminder of America’s resilience or a cheap political ad for politicians who might benefit from Detroit’s perceived economic recovery (see: the current administration). As the debate chugs along, one point is clear: Detroit’s housing story is neither one of shiny resilience nor a story that any self-respecting politician would want to take with him or her on the campaign trail.

The numbers come from the Truckee, Calif.-based real estate analytics firm Clear Capital. The company’s fourth-quarter U.S. real estate market analysis takes a snapshot of the health of the nation’s housing sector with data covering up to the end of January 2012. Here are some highlights:

Year-over-year home prices for the U.S. overall lost 2.6% through January.
Quarter-over-quarter home prices for the U.S. declined 1.6%.
The Midwest lost its momentum and led the nation in quarterly losses.
The remaining regions had little change quarter-over-quarter and year-over-year.

Clear Capital notes that the housing market may actually be bottoming out, but could fall right through the floor to see new losses if certain economic issues don’t go the housing market’s way.

“Although prices at the national level continue to slide due to pressure from the Midwest, the lower priced segments of several specific markets are bucking the trend and seeing appreciation, suggesting that recoveries could be occurring from the bottom up,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital, in an official statement. “[But] when we look at the strength in the bottom tier of prices, the volatility within the metro markets, the rapid changes in direction with certain regions, and relative stability in others, these factors underscore the economic and market fragility that remains a dark cloud over housing prices.”

Detroit is ranked first among those volatile metro markets, losing 15.5% on a quarter-to-quarter basis from 2010 to 2011. The city’s loses for the entire year of 2011 totaled -11.9%, both well ahead of the second-worst performing U.S. housing market, Milwaukee. Beside the 15.5% quarterly price decline, Detroit has also witnessed a significant “increase in distress sales,” Clear Capital says.

With Detroit and Milwaukee, to an extent, leading a downward trend, overall housing prices fell 4% in the Midwest for the quarter (and 5.2% on a year-to-year basis), even as the rest of the nation saw incremental gains on the positive side of the ledger.

Any more of a decline in Detroit and the surrounding metropolitan areas could crimp the entire U.S. housing market, which has one operative term to describe it right now – fragile.

In that regard, it’s not halftime in Detroit – it’s fourth and long. And the rest of the nation may want to see if the city can pull off a Hail Mary and put some points back on the board.

For more news and updates on the housing industry, check out MainStreet’s real estate topic page!

3 Tips for Emotionally Detaching From Your Home

Zillow.com — Tue, 07 Feb 2012 15:30:00 -0500

By Brendon DeSimone

Like many people, you probably have a deep emotional connection to your home. Your kids grew up in your house; you can still see the pencil marks you made on the door frame marking their growth. You’ve spent many happy hours on the backyard patio. The dining room has been the setting for many great dinner parties. Maybe you even grew up in the house yourself, and it’s been in your family for over fifty years.

You’re fortunate to have had so many good memories. But beware: When it comes time to sell, a “love affair” with your home can work against you. Too often, people make decisions about selling their home based on emotion instead of reason.

What they’re really doing is subconsciously sabotaging their chances for success — and that can cost them money in the end. Here are 3 tips for detaching and moving on so you can get the best deal for your home.

1. Acknowledge that selling your home can be stressful.

Some people get emotionally attached to their cars and have a hard time selling them. To get an idea of what it will be like to sell your home, magnify that reaction by about 100 times.

Those who’ve been in their home just a few years are likely to have an easier time letting go than those who’ve lived there for decades or grew up in the house. Either way, it’s often stressful and emotional. Acknowledging that up front will help you make better decisions down the road.

2. Make sure you're truly ready to sell.

Take the time to ensure you’re emotionally prepared for the sale. Talk to your real estate agent and listen carefully to their suggestions. If you’ve hired a competent agent and yet you’re resisting their suggestions, that’s a clue you may not be ready to let go. If so, don’t sell just yet. Wait until you’re ready.

Maybe you have no choice but to sell — which can be even more difficult emotionally. Get as much support as you can from friends and family. Be honest with your real estate agent about how difficult this is for you. The more information you give the agent, the more they can work around any potential problems.

After all, your agent is looking out for your best interests and acting on the assumption you want to sell. But when you resist their suggestions because you’re actually not ready to sell, you’re setting up the relationship to fail. This is a common source of strain in the agent-client relationship, and savvy agents are on the lookout for this — or should be.

3. Start thinking of your home as a product to be marketed.

When you haven’t detached from your home, it’s difficult to see it as a product. But that’s what it is — something you have to sell and that, with luck, others will want to buy. You can also get in your own way of succeeding.

Often, a seller who isn’t emotionally ready to sell will insist on listing at a price that’s higher than what the market will bear. This is why it’s imperative that sellers should be emotionally ready to sell; when they aren’t, they can subconsciously sabotage the process. There have been instances where a home was on and off the market for over a year with multiple real estate agents and approaches to selling it. What started off as an overpriced home that didn’t show well ended up selling for a bargain to a buyer who capitalized on the seller’s mistakes.

Sellers often need to remove personal items out of the house as part of its staging. This can be as basic as taking down diplomas, removing pictures, or personal items such as Buddha statues, NFL memorabilia or the knick-knacks from your African Safari ten year ago.

Aside from helping to show your home in its best light, removing personal items begins to make your house feel less like your home and more like a “product” for sale. It’s a subtle but important step toward detaching. Also, by removing personal items, you’re getting a head start on moving.

Most likely, your agent will recommend some changes to make your home more attractive to buyers. The flashy red paint in the dining room or the jungle wallpaper in the kid’s bedroom should make way for something more neutral. You should seriously consider your agent’s recommendations; they’ve been through this before and know what they’re talking about. On the other hand, if you balk at such suggestions, it’s another sign you may not be 100 percent ready to sell.

Still not ready? Wait.

By all means, cherish the memories you’ve had in your home. But focus on the future, and imagine the wonderful memories you’ll have in a new home. Think about the excitement that change can bring. Listen to your real estate agent’s advice; that’s why you hired them.

If you find that you can’t do any of these, then wait until you’re ready. In the long run, the most important thing is that you put your absolute best foot forward when you list your home, even if it means waiting months or even a year until you’re ready. It will be in your best interests financially.

Brendon DeSimone is a Realtor® and real estate expert based in San Francisco and New York. He is a contributor to Zillow Blog, has collaborated on multiple real estate books and is often quoted by major media outlets. Follow Brendon on Twitter.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

How Prepaid Debit Cards Can Improve Their Image

Jeanine Skowronski — Tue, 07 Feb 2012 14:15:00 -0500

NEW YORK (MainStreet) — By many measures, the prepaid debit card industry is booming. During the past few months, new cards have hit the market, enhancements have been added to existing ones, fees have been reduced and celebrities have entered into partnerships with various companies.

But each new product, feature or face has been accompanied by an equally widening wave of scrutiny, the gist of which is always the same: The cards offer high fees and low incentives to “unbanked” or “uncreditworthy” consumers who shouldn’t have to pay for the privilege to spend their own money.

While MainStreet thinks some of the criticism is warranted – and has dished it out on occasion as well – we can’t help but think the industry has some potential, if only for the opportunity for innovation if affords. (Case in point: What other payment method could get away with doubling as a student ID?)

But in lieu of abolishing all fees – which isn’t likely since they are largely the only way for issuers to turn a profit on the cards – is there anything providers can do to shake the stigma that’s come to be associated with a prepaid card?

MainStreet came up with a few ways the industry could improve its image.

Make the actual cost of the card easier to understand

While the fees driving much of the criticism are generally high, many prepaid providers are good about disclosing them, and fees are usually given a devoted section on many of their websites. The real issue is that these charts and disclosures are so full of clauses and caveats about how the fees are incurred or, more commonly, avoided, it has become very difficult to figure out how much the card is going to actually cost a person to use. As such, it has also become much more difficult to compare one card to another, since the fee structures and their accompanying clauses are rarely the same.

Several card ranking sites, such as NerdWallet, recently introduced tools that allow consumers to compare prepaid debit cards by specifying how they plan to use them. If a similar tool was provided by the debit card’s issuer, transparency may become less of a point of contention.
Continue to add incentives

Criticism of the industry has become so rampant it’s easy to forget some important factors contributing to the sector’s growth.

First, the Credit Card Accountability, Responsibility and Disclosure (CARD) Act, which prohibits companies from issuing credit to anyone under 21 unless the applicant has a stable source of income or a willing co-signer, caused parents to look for alternative plastic payment methods that could help college-bound kids in a jam.

Secondly, the Durbin Amendment to 2010’s financial reform legislation excluded prepaid cards from the swipe fee caps that cut into the revenue banks make on traditional debit cards. The Durbin exemption is perhaps more notable here as it gives banks and major issuers the incentive to introduce low-fee prepaid products and fosters competition.

To stand out, many prepaid providers have already added incentives to their existing products. Russell Simmons’ RushCard currently gives cardholders the opportunity to earn $2 back for each month they maintain a balance of $500 or more in linked savings accounts and Mango Financial lets cardholders with direct deposit earn 6% Annual Percentage Yield (APY) on the money in their saving accounts.

Both companies have said they are considering adding other enhancements to their cards. (RushCard is considering alternatives to payday loans and 5% cash back incentives, while Mango says a rewards program is in the works.) While these features aren’t likely to completely eliminate the criticism, they could certainly temper it and lead to new innovations even harder to discount.

Widen their target market …

In many respects, the controversy surrounding prepaid cards isn’t driven by what the cards do or don’t do – it’s who the cards are being marketed to, which are namely low-income individuals who can’t get a credit card or even a bank account in many cases.

Asking folks to pay a fee so they can spend their own money is incendiary on its own – as evident by the revolt banks endured when they announced plans to impose fees on traditional bank accounts last year – so it’s only natural that asking people who are struggling financially to pay a similar fee (and then some) will kick the backlash up a notch.
But if providers were to add incentives, as suggested, and actively market these to moderate income consumers as well, they could come out ahead. After all, debit card rewards programs were killed off by the Durbin Amendment and 5% interest on a savings account is few and far between.

… or bill it as a short-term solution

If a prepaid provider isn’t interested in widening their target market, then it might be best to acknowledge the card’s limitations. Prepaid offerings don’t help consumers build credit and, as such, aren’t a viable solution for someone whose main aim is to get on the grid.

Admittedly, many prepaid providers are actively trying to get credit bureaus to accept their data and factor it into credit reports, but until this happens – and it’s an uphill battle – it needs to be clear that the card isn’t a solution to long-term credit problems.

Not all prepaid cards are created equal. Find out which products rank among the most attractive on the market in MainStreet’s roundup of the best prepaid debit cards!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

JobPoacher.com Gets Head Hunters to Search For You

Seth Fiegerman — Tue, 07 Feb 2012 12:59:00 -0500

NEW YORK (MainStreet) — At first glance, JobPoacher looks less like a job board than a dating website. Anonymous users post details about how much money they make, where they live and what they’re interested in, and then wait for someone reading it to reply. The difference is that users on this site are trying to attract potential employers.

JobPoacher is essentially a career listing service in reverse: Rather than show a list of job openings for users to apply to, the site features a list of employed workers who are open to new job opportunities. As the site’s name suggests, the goal is to help those currently employed actively seek out head hunters so they can be recruited (or "poached") by another company.

Users on JobPoacher are not asked to submit resumes, cover letters or any other in-depth details about their employment histories. Instead, applicants are just asked to fill out a few keywords including their current profession and salary, where they live, what position and salary they are looking for and in what part of the country they want to work. This information is then used to generate a listing on the site.

To be sure, there is certainly no shortage of job websites that let candidates market themselves to potential employers, but what differentiates JobPoacher is that it specifically targets people who are already employed and keeps them completely anonymous so their current employer doesn’t find out that they want a change. The only identification users are asked to provide is an email address that recruiters can use to get in touch, but as with websites like Craigslist, the actual email address is not shown in the listing.

As MainStreet has reported before, it’s in one’s best interest to search for a job while already employed, since companies are often wary of unemployed applicants, but this requires a certain amount of sneaking around to prevent your current company from finding out. So while LinkedIn and Facebook may be great ways to highlight your career experience, you can’t explicitly state on these websites that you’re looking for a new job because anyone you work with can potentially see this. That’s what makes JobPoacher so attractive.

On the other hand, it’s unclear how effective JobPoacher will be in matching recruiters with job seekers. By default, users are forced to leave out any identifying characteristics, which means their listings have no personality. There is little to differentiate one “systems engineer” from another in the same city except by the salary they want. What’s more, employers really can’t learn anything about the candidates prior to e-mailing them, which means recruiters may not like the people they follow up with.

In a very real sense, this site makes the job hunting process more like a blind date.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Cash vs. Bonds: How Interest Rates Change the Game

Jeff Brown — Tue, 07 Feb 2012 12:14:45 -0500

NEW YORK (MainStreet) -- Fixed-income investors are in a classic lose-lose situation: Put your money in cash and you’ll be safe but earn almost nothing. Put it in bonds and you’ll earn a bit more, but probably not enough to offset loss of principal if interest rates rise.

As we’ve been saying for a while, interest rates are so low right now they’re more likely to rise than to fall even further. Higher rates on new bonds make older, stingier bonds less attractive, causing their prices to fall. That leaves the bond investor an unpleasant choice: sell at a loss or keep the bond and continue to receive substandard yield until the bond matures and your principal is repaid at face value.

You can avoid all this by shifting to cash, though the low yields might give you some sleepless nights.

The bonds-vs.-cash decision is a classic struggle between risk and reward. To shed light on the issue, Christine Benz of Morningstar, Inc., the market-data firm, has recently revisited her earlier explanation for how to stress-test a bond holding, drawing on work by Ken Volpert, head of the taxable bond group at Vanguard, the mutual fund giant.

The analysis is worth another look now as investors sort conflicting signals: jittery financial markets that threaten to push rates up, working against the Federal Reserve’s vow to keep them low.

The process begins with duration, a measure of volatility in bonds and bond funds. Duration, which is found on a bond fund’s website, is measured in years. A duration of 5 years, for example, means that the bond fund would lose 5% of its value for every percentage-point increase in prevailing interest rates. That means 10% for every two-point rise, or a 10% gain in value for every two-point decline.

But duration is just part of the story, because the investor may choose to continue owning the fund even after the share price falls. In that case the loss in principal would be partially offset by interest earnings.

So Volpert’s approach is to subtract the fund’s yield from its duration. He recommends using the SEC yield figure, which is also usually on a fund’s website. The result shows how much the investor would lose after 12 months. There could, of course, be a gain if the yield was healthy and the duration was very short or the interest increase very small.

In Benz’s example, the Vanguard Total Bond Market Index fund has a duration of 5.1 years and yields 2.23%. That means every one-point rise in interest rates would cost the investor about 2.9%. By subtracting the yield from the duration, the investor would get a better sense of the risk and reward of keeping money in bonds instead of moving to the safety, but low returns, of cash.

Keep in mind, though, that the duration-minus-yield calculation only reveals losses during the following 12 months. In the example above, the investor would lose 2.9% during that period, but then earn 2.23% in the following year, assuming that were still the fund’s SEC yield.

Of course, that assumption is not guaranteed. If rates were to rise, the fund’s yield would gradually rise as well as old bonds in its portfolio were replaced with new ones.

Interest rates affect fund traders every day, but plenty of investors use money funds to plan for their retirement. Check out our look at 7 Funds to Rebuild Your Nest Egg for 2012 for tips on where to put your money!

Morning Deals: Free Drink at Starbucks

Matt Brownell — Tue, 07 Feb 2012 09:26:14 -0500

NEW YORK (MainStreet) – Starbucks is currently offering a free beverage when you purchase a 1-pound bag of its new Blonde Roast or a 12-pack of its Veranda Blend instant coffee. The free beverage can be any size, and the promotion is good through tomorrow only at participating locations.

Amazon.com has marked down a box set of the first four paperback books of George R.R. Martin's A Song of Ice and Fire fantasy series to $21.03 from $35.96. The hit HBO show Games of Thrones is based on the series.

If you’re enrolled in the Papa John's rewards program, you're entitled to a large one-topping pizza and 2-liter Pepsi Max for free as a result of the Super Bowl coin toss landing on heads. Rewards members should have received their code in their email inbox by now, but if you haven't received it yet you might try checking your spam folder. Once you receive the code, you have until 11:59 p.m. EST on Feb. 19 to redeem it online.

5 Not So Hot Cars in January

Tue, 07 Feb 2012 09:00:49 -0500

DETROIT TheStreet) -- January was a good month for the automakers, as sales reached their highest level in more than two years, but not everything was rosy in the auto industry.

January also produced its share of disappointments.

We are not even talking about the Volt, even though its sales declined to 638 units, its worst month since August. Obviously, consumer perceptions of the Volt were tarnished by the National Highway Traffic Safety Administration's investigation of the car's fire risk, which concluded Jan. 20 with a production halt still in effect as GM (Stock Quote: GM) developed a method to prevent potential post-crash fires.

Probably what the Volt needs most just now is one more reminder that, over the long term, oil prices are headed up, not down. Are you reading this, Mr. Ahmadinejad?

In any case, we set out to find established vehicles with substantial sales totals that failed to measure up to previous performance, even if they did not see particularly large percentage drops.

It is worth noting that of the big seven U.S. automakers, only GM showed a year-over-year decline in sales, and it resulted primarily from the automaker's decision to pull back on its high incentives in January 2011.

Still, each automaker had a loser or two. Here are our top five.

Cadillac CTS

Sales of the Cadillac CTS fell 31% in January, to 3,019, replicating the 29% overall decline to 8,924 vehicles for the Cadillac brand. Sales of Cadillac's sales leader, the SRS, fell 2%, to 4,166.

"With CTS specifically, our biggest issue was tough year-over-year comparisons -- our incentive spending was high a year ago -- and aggressive competition as BMW and Mercedes outspent Cadillac on incentives," GM spokesman James Cain says.

"We were also impacted by having fewer returning leases, which is a function of the financial crisis," he says.

Also on the GM sales call, Kurt McNeil, Cadillac vice president of sales and service, noted that the luxury segment weakened in January, accounting for only about 11.3% of industry sales, down from 13.1% for the full-year 2011.

McNeil said he expects luxury sales to improve this year. "Stock market volatility has something to do with that," he says. "If things calm down a little bit I think we'll see some good buying and strength there."

Toyota Corolla

Sales of the Toyota (Stock Quote: TM) Corolla fell 13%, to 17,988. But sales of the Camry rose 56%, to 28,295, while Prius sales rose 9%, to 11,555.

Overall, Toyota's sales rose 20% in January. "The company's focus has been on the launches of Camry and Prius, with little on the Corolla side," spokeswoman Sacha Terrill says. But Corolla sales remain strong "even without the marketing push."

For the month, Corolla remained the eighth-best-selling vehicle and third-best-selling car in the U.S., behind Camry, Nissan (Stock Quote: NSANY) Altima and Honda (Stock Quote: HMC) Civic.

On Monday, Toyota said it added a second shift for Corolla production at its Blue Springs, Miss., plant. The $800 million plant has the capacity to produce 150,000 Corollas annually.

Ford Fiesta

Sales of the Ford (Stock Quote: F) Fiesta lost 18%, to 3,502, even as sales of the Ford Focus surged 60%, to 14,440. Meanwhile, sales of the Fusion, which had been Ford's most popular car, fell 5%, to 13,614.

On the Ford sales call, sales analyst Erich Merkle said Fiesta is evidently losing sales to Focus. "There is always going to be cross-shopping on any dealer lot," he said. "We've got two vehicles that are very close together in terms of size, in terms of their price point, and at this point in time Focus is the newer vehicle and people seem to be gravitating toward that product."

Overall, Merkle says, the two cars combined give Ford 10% of the small-car segment, Ford's highest level since 2003. "They're coexisting very nicely on the dealer lot," he says. Additionally, Ken Czubay, Ford vice president of U.S. marketing, sales and service, says Fusion has been affected by anticipation of the new model. "We're in our sell-down pattern," he says.

Nissan Sentra

Sales of the Nisan Sentra fell 26%, to 7,066, even as Nissan Altima sales rose 36%, to 22,357, and overall Nissan sales rose 10%, to 79,313.

Sentra "is very dated," Edmunds.com analyst Michelle Krebs says. "It is up against a bevy of spanking new little cars that get spectacular fuel economy -- Chevy Sonic/Cruze, Ford Fiesta/Focus, Hyundai Elantra/Accent, Kia Rio, VW Jetta -- etc, and it is in dire need of a makeover."

The last new version of the Sentra was the 2007 model, which arrived in 2006, with a few improvements in 2010. Fortunately, the 2013 Nissan Sentra is expected to arrive in mid-2012.

Honda Accord
Accord sales gained just 1.5%, to 13,659 units, compared with Honda's overall gain of 9%, to 83,009 vehicles, as Civic sales gained 50%, to 21,883 units, and sales of the new Honda CR-V gained 16%, to 18,960 units.

"Honda's return to full strength on the manufacturing front is already beginning to pay dividends on the sales floor," says John Mendel, American Honda executive vice president of sales, in a statement. "It's gratifying to see how many Civics we can sell when we actually have Civics to sell."

Still, "Honda's product pipeline won't be fully replenished until the end of March," Krebs says. Meanwhile, Accord "has a lot of competition with a revamped Camry, Hyundai Sonata, Kia Optima, Nissan Altima -- which is old but has been selling like crazy, VW Passat, Chevy Malibu and Ford Fusion," she said.

"The Accord gets re-done for fall, one of the last of the group to get a makeover," Krebs says. The new Accord, unveiled at the Detroit Auto Show, is expected to arrive in the fall.

It may have been a bad January for some car manufacturers, but that's nothing compared to the 10 Worst Cars of All Time!

Get Ready for the Job Market to Become Even More Competitive

Seth Fiegerman — Tue, 07 Feb 2012 07:00:00 -0500

NEW YORK (MainStreet) — When the Bureau of Labor Statistics announced Friday that the unemployment rate had dropped to 8.3% after the economy added nearly 250,000 jobs in January, the message seemed clear: The U.S. is hiring again. Not only did this shatter hiring expectations, but it represented the fifth consecutive month that the unemployment rate had declined.

While that certainly sounds like good news for the millions of Americans currently looking for work, economists say it could also cause some of those who gave up on their job hunts in recent years to come back and resume their search, which would effectively make the labor market that much more competitive.

“There’s no question that more people will be entering the labor force,” says Mark Price, a labor economist with the Keystone Research Center, who notes that it’s necessary for more workers to re-enter the job market in order for the economy to get healthier. “But it’s absolutely correct to worry. From the perspective of someone looking for work, there is a good chance that there will be extra bodies out there looking too.”

Price and other economists who MainStreet spoke with do not expect there to be an influx of new workers overnight, but rather gradually throughout the course of the next six months or so if the positive jobs numbers continue. However, as Price points out, even that trickle of extra workers could pose a threat to current job hunters given that there are still more than four unemployed workers for every job opening.

To complicate matters further, baseline improvements in the jobless rate from month to month may overstate the actual pace of improvement in the labor market. Yes, unemployment is now at a three-year low, but some of that is due to the many Americans who either stopped looking for work altogether or accepted part-time employment out of desperation, since neither group is counted among the unemployed. The underemployment rate, which does factor in part-time workers, is stuck above 15% and the overall percentage of the population that is employed, which factors in those who gave up, remains more than four percentage points below where it stood just before the recession.

For many job hunters though, the traditional unemployment rate is all that matters and it’s that statistic which will convince people to look for jobs again even if the labor market is weaker than the unemployment rate implies.

“That’s the number which will be on the nightly news and in all the morning newspapers,” says Gary Burtless, a labor economist at the Brookings Institution, a nonprofit public policy organization. The net effect, he says, is that there may come a time when people start re-entering the labor force faster than the pace at which jobs are created. “There are going to be months where there is reasonably healthy job growth, but no decline in the number of unemployed. In some months, there may even be an increase.”

Just because more people return to look for jobs in the coming months doesn’t necessarily mean that those who have been applying all along will be worse off. For starters, as more of the unemployed start finding work, Price predicts that some who currently have forced themselves to take certain jobs to support their families will either switch positions, cut down their hours or stop working altogether.

“Think of the construction industry for instance,” he says. “Typically it's a male workforce and it's not unusual for the spouse not to work, but they may have taken on more hours if their husband got laid off, so you might see some spouses pull back out of the workforce.” If so, that would create additional job openings and potentially cut down on some of the extra competition.

Moreover, as is true anytime one applies for a job opening, one’s success depends largely on who the competition is and how their experience compares. According to Burtless, many of those who stopped looking for jobs were younger workers who either went back to school or bided their time with travel and other activities. These are the workers who are most likely to come back in droves in the next six months and if their resume has long gaps or shows less work experience than yours, you will likely be in a better position to get hired.

“Suppose they haven’t been doing anything and the last job on their resume ended two and a half years ago,” Burtless says. “Their resume will look like they haven’t done anything. I’m not sure that changing their status as far as the BLS is concerned from being out of the labor force to looking again will really make a difference.”

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Want Your Kids to Do Their Chores? Use Technology

Brian O'Connell — Mon, 06 Feb 2012 16:43:49 -0500

NEW YORK (MainStreet) – Getting kids to stay on top of their chores has always been a challenge for parents, but it seems new technology is allowing today’s moms and dads to find clever ways to make sure those dishes get washed and beds get made.

According to data from DoughMain, a Princeton, N.J.-based family financial software provider, parents are increasingly using online chore charts kids can access from their smartphones and iPads to remind them to do their chores.

“Using online chore charts, parents can teach kids about their responsibility to contribute to the household and keep track of these efforts with a digital tool,” DoughMain says in a statement. “By connecting chores to allowance or a rewards program, parents can also teach kids about the fundamentals of money management through real-world experiences.”

The company reviewed 1,500 families who use DoughMain’s “Chores Tracker” tool to uncover the most common types of chores parents are assigning their kids via digital devices.

Here are the most popular items on that list:

Brush and floss teeth

Clean bedroom

Do homework

Make bed

Be on time for bus/school

Clean bathroom

The trend in household chore assignments is reminiscent of the line from an old bank robber named Willie Sutton. Asked why he robbed banks, Sutton memorably replied, “Because that’s where the money is.”

A similar philosophy applies to parents and chore lists: Reaching out to kids on their digital devices is smart household business because, to paraphrase Sutton, that’s where the kids are.

There seems to be plenty of incentive for kids to stay on top of their tasks: Accordingly to a June survey from American Express (Stock Quote: AXP), a whopping 71% of parents paid their children to do their chores last summer.

The Best Credit Union Credit Cards

Jeanine Skowronski — Mon, 06 Feb 2012 15:49:37 -0500

NEW YORK (MainStreet) — While thousands of bank customers have found better deals on checking accounts and all of their associated fees by moving their money from big banks to smaller community banks and credit unions since Bank Transfer Day, do the smaller institutions offer the same benefits for credit accounts?

Credit cards issued by credit unions generally offer lower interest rates than cards from major issuers, but not all of these products are created equal.

To help you choose the best card for you, MainStreet asked the experts which credit union credit cards were the best ones currently on the market. Anyone considering a switch in their credit accounts should consider these four:

PenFed Premium Travel Rewards American Express Card

Those with good credit scores can make a one-time $15-$20 donation to one of the nonprofit organizations associated with Pentagon Federal Credit Union (a required step to join the credit union), since its premium rewards cards can net cardholders much more than that in the long run. PenFed’s Amex (Stock Quote: AXP) gives cardholders five points for every dollar spent on airfare purchases and one point for every dollar spent on other purchases. They can also earn three points back on dining purchases through a promotion lasting until April 30, 2012.

Rewards aside, the card also offers a variable 9.9% annual percentage rate, it carries no annual fee and it does not incur any foreign transaction fees.

“It’s an excellent rewards card, not just for credit unions but for the whole industry,” says Beverly Harzog, a credit card expert with Credit.com.
NASA Federal Credit Union Platinum With Cash Rewards.

This rewards card from the NASA Federal Credit Union entitles cardholders to a 1% rebate for purchases up to $1,000, a 1.25% rebate for purchases from $1,001 to $2,000, and a 2% rebate for purchases $2,001 or more.

“This means the card is nearly a 2% card with no annual fee if you spend more than $2,000 per year,” says Tim Chen, CEO of credit card ranking site Nerd Wallet.

For cardholders who keep a balance from month to month, the card features a variable APR between 13.9% and 17.99%, depending on creditworthiness, and no annual fee. According to Chen, anyone can join the credit union by signing up to be a member of the American Consumer Council, which is free if you join a credit union.

PenFed Visa Platinum Cash Back Card

Another solid product from PenFed, this Visa (Stock Quote: V) cash-back card is great for anyone who owns a gas guzzler, since it entitles cardholders to 5% cash back on gas purchases paid at the pump throughout the year. It also entitles cardholders to 0.25% cash back on all other purchases during each billing cycle.

“Those are unbeatable gas rewards, because unlike other cards, you get the 5% on gas year round,” Chen says.
The card features a low 9.99% low introductory purchase APR, fixed through June 30, 2014. (After that date, the APR will increase or decrease based on the prime rate.) It also has no annual fee.

Navy Federal nRewards Card

The Navy Federal Credit Union has both a secured and traditional version of its nRewards card that entitles cardholders to earn points on 1% on all purchases, which can be redeemed for a variety of gift cards.

Additionally, each version of the card features a low variable 8.99% percentage rate and no annual fee. Sadly, unlike the other cards on this list, only members of the military and their family are eligible for membership.

“If you’re affiliated with the military, the card is a good option,” Harzog says.

Looking for a low-interest credit card? We have a few more for you to consider in this MainStreet roundup!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Online Banking on the Rise, With 1 Notable Exception

Brian O'Connell — Mon, 06 Feb 2012 15:00:00 -0500

NEW YORK (MainStreet) – Thanks to advancements in mobile and Web technology, we have more tools than ever in our pockets and on our screens these days, but the unstoppable rise of digital banking is far from a foregone conclusion.

A study from Web analytics firm comScore underlines the importance of online banking, but says that one key component – online bill pay – is still getting short shrift from a large block of consumers.

The study notes that 66% of Americans have used online bill payment technology before, but banks can’t close the deal on an apparently stubborn (or cautious, depending on your point of view) group of bank customers who worry about online security.

As the data indicate, security concerns are increasingly keeping those who don’t use the service from using it, suggesting that any hope banks have to make bill pay a fully automated process that they manage for people has a large hurdle to clear first. A comparison between last year and 2010 shows people’s increasing concern over online security:

Security concerns
2010: 29%
2011: 43%

Concern over available funds
2010: 14%
2011: 13%

Service is too complicated
2010: 8%
2011: 13%

After growing by 19% in 2010, the online bill payment business saw a precipitous drop in activity, growing only by 2% in 2011. More consumers favor paying all or most of their bills through banks (21%) than credit card companies (16%), but relatively few have consolidated their bill payments with a single financial institution, comScore says.

If and when banks and credit card companies can ever find a way to convince consumers that their online financial data is safe, then financial institutions may really be able to close the gap and get people to use online bill payment more readily.

But that day seems far away, and many consumers won’t sign on until the threat of identity theft significantly dissipates.

“Today’s Internet threats wear many different disguises, from fake websites to fraudulent text messages on cellphones,” warned Michael Benardo, chief of the FDIC’s cyber-fraud and financial crimes section, in a 2011 report. “That’s why online consumers need to be aware that they may be targeted and they should always be on guard.”

The FDIC advises consumers to use credit cards to pay bills online rather than debit cards (credit cards offer more protection), and to mix up their user ID and password combinations when paying bills (making your email address your user name is a surefire way to attract ID thieves, the agency says).

Until consumers feel safe paying their bills online, banks may find it difficult to get those numbers from 66% to 100%. It’s a significant obstacle, and one that will likely act as a drag on full online banking adoption in the future.

App of the Week: LowestMed

Seth Fiegerman — Mon, 06 Feb 2012 14:49:00 -0500

Editor’s Note: This piece is part of a weekly series in which MainStreet spotlights one new smartphone app that can help readers manage their money, shop better or improve their job search. Check back each week to find out how to make your smartphone even smarter!

NEW YORK (MainStreet) — LowestMed hopes to be the Kayak for the drug industry by making it easier for shoppers to do price comparisons on their medications.

The app, available for free on the iPhone and Android phones, lets users search for stores nearby that have the lowest prices on generic and brand-name prescription drugs. All the user has to do is enter the name of the drug on the app and pick the dosage amount, and it will highlight a handful of major pharmacies and grocery store chains that carry it along with the prices. The app even offers an electronic discount card that customers can present in the store to ensure they get the quoted price.

While the app does fill a void, it also has a few flaws which we’d like to see improved in future versions. For starters, users must search by the scientific name of the drug (ibuprofen, for example) rather than the brand name (like Advil or Motrin). The goal seems to be to emphasize the price rather than the brand and show off the cheaper generics available, which we definitely understand, but from a practical standpoint it would certainly be easier for someone to search by the more well-known brand name and then learn of the alternative drugs that fall in the same category.

Along the same lines, the other big complaint we have is that the results only show the prices of the drug and not the brand. So you can find out the cheapest place to get a 400-mg dose of ibuprofen that lasts for 30 days, but you won't know whether that is Advil, Motrin or a generic brand. Even if the goal is to play up the price of a medicine over the name on the bottle, those using the app should have the option to find out the specific brand of the drug they are looking for without having to visit the store.

Despite those complaints, the app is worth a try if for no other reason than to get a better sense of the price range for particular medications. It will certainly make you think twice about passing up the generic drug for the brand name.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

The Secret (and Annoying) Language of Business

Joe Mont — Mon, 06 Feb 2012 13:00:00 -0500

BOSTON (MainStreet) -- This story may be a mission-critical solution for your enterprise needs.

Whatever that means ...

Nearly every profession has its own jargon, those words and phrases that can come across as gobbledygook to the untrained ear.

There are two ways of looking at jargon. It can be either a clever shorthand mutually understood by colleagues or, more cynically, a way to bamboozle outsiders, to make the simple seem more complex and mysterious -- the tongue-twisting equivalent of a secret handshake.

The technical definition, according to Webster's, is less than kind: "The technical terminology or characteristic idiom of a special activity or group ... obscure and often pretentious language marked by circumlocutions and long words."

A survey last year by CareerBuilder asked 5,300 full-time workers, "What corporate jargon would you like to eliminate altogether?" The most offending terminology, in order of annoyance:

Outside the box. Low-hanging fruit. Synergy. Loop me in. Best of breed. Incentivize. Mission-critical. Bring to the table. Value-add. Elevator pitch. Actionable items. Proactive. Circle back. Bandwidth. High-level. Learnings. Next steps.

Language is constantly evolving, with new bits of insider-speak being added and, occasionally, phrases slipping into the mainstream, such as "Wi-Fi."

No one is immune to thinking everyone else is hip to your insider phrasing. Our journalistic colleagues also plead guilty.

We had a source recently admit they had no idea what we were talking about when we promised to "circle back" with information. A former publisher chewed out an editor for using the journalistic tradition of spelling the opening of a story as a "lede," an archaic printing press term that, like "hed," is still clung to. (That annoyed, un-hip publisher snapped back, interrupting an explanation, "All I know is that I have an editor who can't spell lead.")

Space doesn't permit us to offer a complete Rosetta Stone for deciphering professional jargon. We do, however, offer a look at some of the professions guilty of babbling out streams of jargon:

Doctors and nurses

We've come a long way from "take two aspirin and call me in the morning."

Dealing with a steady stream of sickness and death, it is no surprise brevity and dark humor are coping mechanisms for medical professionals.

The Patient Protection and Affordable Care Act of 2010 even tackles the sometimes bewildering use of language by medical professionals, defining health literacy as "the degree to which an individual has the capacity to obtain, communicate, process and understand basic health information and services to make appropriate health decisions."

Complicated medical terminology is blamed for the lack of health care literacy in the U.S.

A recent study by the Centers for Disease Control and Prevention found that "nearly 9 out of 10 adults have difficulty using the everyday health information that is routinely available in our health care facilities, retail outlets, media and communities."

"Without clear information and an understanding of the information's importance, people are more likely to skip necessary medical tests and end up in the emergency room more often," it said.

Among the insider-speak of the medical profession, often comically documented throughout the Internet, is to point out patients by their diagnosis, referring to "the appendix in room 302" for example.

There are also abbreviations and made-up words that sound very similar to common, everyday phrases but have very different meanings.

"Ad lib," doesn't refer to a comic improvising; in a hospital it stands for "at liberty" -- in other words, what a patient is allowed to do without restrictions.

Police may label your alias with an "AKA" preface, but a surgeon may be preparing for an "above the knee amputation." There's nothing sexy bout "T&A" when it stands for a "tonsillectomy and adenoidectomy."

"Viral shedding" sounds downright dangerous, but it's just a fancy way of describing a cough or sneeze.

There is often a morbid sense of humor in patient reports, especially back in the day they were usually kept from the prying eyes of patients.

A "baby catcher" is better known as an obstetrician. Considerably darker is to refer to a "blue bloater" -- a fat person suffering a respiratory attack. "Brothel sprouts" are better known as genital warts.

It probably isn't good news when a biopsy result proves so intriguing to your medical team that it gets referred to as a "fascinoma." "GACP," or "Gravity Assisted Concrete Poisoning" is a blunt way to describe the injuries sustained from a high fall.

Not every doctor, of course, injects dark humor into their charts and fewer these days probably do so in an age of patient rights and portable records. Nevertheless, as the CDC advises, if you don't know what your physician says, just ask for a definition.

Real estate

A real estate expert once made us pause when she mentioned the "romance paragraph" of a property.

Despite our initial thoughts of Fabio and roses, she explained that a romance paragraph is that killer phrase in any real estate listing designed to grab the attention and imagination of a potential buyer -- the one playing up a home's best feature.

Over the years, plenty of real estate jargon has become the butt of jokes.

A "handyman's delight," was a kinder way of saying "fixer-upper." "Sweat equity" could mean the home is in worse shape than even the previous phrase implies.

"Easy freeway access" may sound great until you realize an interstate runs by your gazebo. Ditto for selling points such as "close to amenities" or "near transportation."

"Lots of storage space" can be a clue that the basement is too small to be usable for anything other than stacking your boxes.

Before a house gets built, planners are likely tossing around their own unusual language. In her book A Field Guide to Sprawl (W.W. Norton & Co., 2004), author Dolores Hayden includes a glossary of some unusual terms.

An "alligator" is a real estate investment producing no income; "Litter-on-a-stick" refers to outdoor advertising, especially billboards. "Bomburbs" are places with more than 100,000 residents that are not the largest cities in their metro areas. LOS-F is engineering jargon for "level of service, failing," usually referring to traffic jams.

A "pig-in-a-python" can be used to describe an edge city extended from a strip, a place that might include plenty of "dead worms," those cul-de-sac layouts common to residential subdivisions.

Technology

Throughout much of the dot-com era, PR people pitched tech companies as providing "best-of-breed solutions for the enterprise." A loose translation: "We make good stuff and sell it to companies."

The tech sector thrives on jargon. Much of it is an attempt to sum up a complex function without reciting an hour of explanation: ActiveX, BIOS, DIMM.

Other terms are less functional. Britain's Computeractive magazine recently polled readers for its "Unspeakable Award," recognizing the worst of computer-related jargon. The winner: sexting.

"Defriend," to remove someone from your social networking site, and "intexticated," being unable to concentrate while driving due to being distracted by texting, were runner-ups.

Other maligned social media buzzwords, destined for either the graveyard or dictionary, are "blogosphere," "digerati," "rockstars/gurus" and "lifehack."

The financial world

Anyone who deals with money, from stockbrokers to financial advisers, have their own lingo.

Case in point is an op/ed piece Pimco CEO Mohamed El-Erian wrote for The Wall Street Journal last month.

"Navigating unpredictable markets requires investors to rely less on historical short cuts and, instead, spend more time decomposing asset classes into their constituent risk factors," he wrote. "Moreover, they need to internalize a much broader set of correlations, pursue a more global opportunity set and mitigate risk not only by diversifying but also by using active tail hedging aimed at protecting against the bad extremes of possible outcomes."

Got all that?

Post-recession, you might be happy to never again hear an economist or analyst speak of "the new normal," a phrase often accompanied with talk of a "new frugality."

In the world of IPOs and M&A, a "bake off" is the frenetic need to improve a presentation or pitch and you may be trying to "boil the ocean" by trying to squeeze a whole bunch of round-hole/square-peg analysis into it.

A stock with a market value of less than $500 million might be described as an "ankle biter." A rally just before a free-fall is a "dead cat bounce."

The folks who pore over analytical charts have a colorful way of expressing nearly every pattern: death cross, shaven heads, hammers, butterflies and gravestones.

Retail

Retailers have their own colorful way of describing their efforts to attract and sell to shoppers. "Romancing the customer" is a phrase used to express that general mission of getting "mind share," meaning having the customer think of you before competitors.

"Swing area" describes how shelves, fixtures and signs are used to steer customers in a desirable way through a store.

Alternately, "visual pollution" is overdoing the signs and decor, creating a headache that drives away customers rather than getting them to open their wallets.

"Proportional merchandising" is a fancy way of saying best-sellers get more floor space than those that aren't moving. "Keystone," is when an item is priced at twice the initial cost.

Unlike a variation on the term once lamented by Seinfeld character George Costanza, "shrinkage" is a catch-all term for missing merchandise, usually because of employee theft and shoplifters.

Super Bowl Commercials: The Winners & Losers

Seth Fiegerman — Mon, 06 Feb 2012 12:15:00 -0500

NEW YORK (MainStreet) — The Giants may have won the Super Bowl, but Doritos won the equally competitive contest for the best advertisements during the game.

The Brand Bowl, a Super Bowl ad-rating feature hosted on Boston.com each year, analyzed 400,000 tweets to find the most and least effective commercials during the big game in terms of overall views and positive feedback. Doritos’ Super Bowl commercials earned the highest score in this competition by being the most talked about with 48,498 tweets and the third most well-liked with a 29% approval rating.

Doritos followed the same playbook it has used for each of the previous four years by holding its Crash the Super Bowl contest, in which fans can submit videos for a chance to have them air during the game. As a result, several of the ads earned some buzz well before kickoff.

M&M’s commercials sparked 18,316 tweets, far fewer than Doritos, but they had by far the highest favorability rating of any that aired, which may be a testament to the new Ms. Brown character that the company introduced. GoDaddy’s commercials, on the other hand, were the least well-liked of any that aired, perhaps proving that controversy isn’t always the best approach for Super Bowl advertising.

However, the real losers are arguably those who spent big bucks buying ad time and failed to get anyone to talk about their commercials afterwards. These include companies like Cadillac, Century 21 and Lexus, each of which generated fewer than 1,000 tweets for their Super Bowl commercials.

Here are the 10 brands that had the most effective commercials, according to Brand Bowl's data:

1. Doritos (48,498 tweets) (Sentiment +29%)

2. H&M (43,536 tweets) (Sentiment +14%)

3. Chrysler (33,943 tweets) (Sentiment +10%)

4. Pepsi (39,242 tweets) (Sentiment +8%)

5. Chevrolet (36,934 tweets) (Sentiment +17%)

6. M&M's (18,316 tweets) (Sentiment +41%)

7. Budweiser (18,916 tweets) (Sentiment +12%)

8. VW (17,131 tweets) (Sentiment +26%)

9. Coke (18,463 tweets) (Sentiment +4%)

10. Bud Light (15,298 tweets) (Sentiment +18%)

Just Received a 1099-C? Don't Freak Out!

Credit.com — Mon, 06 Feb 2012 11:30:00 -0500

By Gerri Detweiler

Over the past week we’ve been flooded with panicked questions from taxpayers who are freaking out after have receiving 1099-C or 1099-A forms for debts that were forgiven, never paid back or wiped out in bankruptcy. The main theme of these questions is “Do I have to pay taxes on the amount on the 1099-C (or 1099-A)?”—usually followed by “HELP!!?”

My first piece of advice: Take a deep breath! You may not have to pay taxes on the amount of the income listed on the 1099-C or 1099-A.

At the same time, doing nothing is not an option. If you got a 1099-C or 1099-A, so did the IRS. That means you must explain to the IRS why that amount should not be included in your income. If you don’t, the IRS will assume that money counts toward your income and you may either get a smaller tax refund than you expected or, worse: A bill from the IRS.

How can you avoid including that amount in your taxable income? By showing that you qualify for an exclusion or exception. I described these in my previous article, How to Avoid Taxes on Cancelled Debt, and more details are also available on the IRS website. You may be able to simply fill out Form 982, claim an exclusion or exception, and be done with it. Sometimes it’s more complicated than that, though, and you need to work with a tax professional.

[Related Article: 1099-A In the Mail? How to Avoid Taxes on Cancelled Debt]

Here are a couple of examples of questions we received recently about 1099-Cs:

1099-C for Debt Wiped Out in Bankruptcy

I included my automobile with my bankruptcy in 2010, it was a Chapter 7. However I received a 1099 for the car that I included in the bankruptcy. What do I do now? Must I pay the taxes on this large amount even though it was included in my bankruptcy? Please help.

Debt that was discharged in bankruptcy can be excluded from your taxable income. Take a look at Form 982. At the top of the form you’ll see box 1 a. Discharge of indebtedness in a title 11 case. (Don’t be confused by the reference to “Title 11″—that’s just the part of U.S. Code that covers bankruptcy). You can check that box. Then on Line 2, you’ll put the amount that was discharged in your bankruptcy for that debt and any others that were reported on a 1099-C. That amount will be excluded from your income. It should be simple enough.

[Related Article: 1099-C In the Mail? How to Avoid Taxes on Cancelled Debt]

Student Loans Cancellation

My student loans were discharged. I am on Social Security. Do I have to file the 1099-C I received for $62,000? My student loans were discharged due to total disability and I don’t file taxes because Social Security is non-taxable….HELP!!!!

First, keep in mind you don’t file the 1099-C; the lender does. A copy has already been sent to the IRS. So you must now demonstrate to them that part or all of that “income” is not taxable. How do you do that? By figuring out whether you qualify for an exclusion or an exception, and if you do, filing form 982.

You mention that your student loans were “discharged.” Do you mean discharged in bankruptcy? Or do you mean they were cancelled due to your total disability? If they were discharged in bankruptcy, then read the previous question and answer for more information on how to claim the exclusion for bankruptcy debts.

[Related Article: The Best Balance Transfer Credit Card in America]

If they were cancelled, however, then it’s not quite as simple. According to the IRS, “Generally, if you are responsible for making loan payments, and the loan is cancelled (forgiven), you must include the amount that was forgiven in your gross income for tax purposes.” There is an exception for student loans that were used to attend a qualified educational institution and were cancelled because you worked for a certain period of time in certain professions. (An example would be a doctor who works in a qualified low-income area.) I didn’t find any reference to an exception or exclusion for student loan debt that was cancelled due to disability, though.

However, you may qualify to have part or all of the $62,000 excluded from your income if you are considered by the IRS to be insolvent. You’ll see a simplified example of how that works on our Infographic: What to Do If You Get a 1099-C. Review Form 982 and the instructions to see if you feel comfortable filling it out yourself. If not, your disability may qualify you for free or low-cost tax help through the Volunteer Income Tax Assistance Program.

Please keep in mind that I am a credit expert, not a tax expert, and the information in this post is strictly for educational purposes. See a tax professional or contact the IRS for help with your individual situation!

Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.

Credit.com provides straightforward news & advice, tools, and products to help consumers make smarter financial decisions. Credit.com was established in 1995 with the goal of helping consumers with any credit standing to establish, rebuild, enhance and effectively use credit. Our industry experts create clear paths for consumers looking to improve their finances.

IRS Offers Free In-Person Tax Prep

Jeanine Skowronski — Mon, 06 Feb 2012 10:40:35 -0500

NEW YORK (MainStreet) — Tax season can be a stressful time for many Americans, but the Internal Revenue Service is making an effort to lend a hand by providing free in-person tax prep from certified volunteers to moderate- to low-income taxpayers.

Anyone who made $50,000 or less last year can get help in preparing a basic return through the Volunteer Income Tax Assistance program. The program also provides information on special tax credits those people may qualify for, including the Earned Income Tax Credit, Child Tax Credit and Credit for the Elderly or the Disabled. Taxpayers who meet the income requirements can call 1-800-906-9887 or visit the IRS website to find a VITA site in their local community.

Taxpayers 60 and older can also get free assistance through the Tax Counseling for the Elderly (TCE) program, whose volunteers specialize in questions about pensions and retirement issues unique to seniors. Interested seniors can call 1-888-227-7669 or visit the IRS website to find a participating site near them.

The IRS is also offering taxpayers without computers the opportunity to file a simple return at a participating tax preparation site. You can find the list of documents you need to bring to take advantage of this on the IRS website.

Taxpayers can also get free assistance if they choose to file their taxes online. Check out this MainStreet roundup for a complete guide to free tax tools!

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Morning Deals: Half Off Mrs. Fields Treats

Kristin Colella — Mon, 06 Feb 2012 10:21:37 -0500

NEW YORK (MainStreet) – In honor of Valentine’s Day, Google Offers has a deal today for $50 worth of cookies, brownies and other treats from MrsFields.com for $25. To receive the sweets by Valentine’s Day, you must order by 1 p.m. EST on Wednesday with standard shipping, or by 1 p.m. EST on Feb. 13 if you opt for expedited shipping.

If you’re looking to give your sweetheart a shiny piece of jewelry on Feb. 14, BradsDeals.com is offering a deal on a tanzanite ring in 10K gold with diamonds from Jewelry.com for $129, marked down from $220.26. Just click this link and select the ring, then enter the coupon code BRADSDEALS at checkout. Shipping is free, and it’s not clear when the offer will end.

For today only, BestBuy.com is offering a Gateway 23-inch HD LCD-LED widescreen monitor for $119.99, marked down from $229.99 – a $110 discount. It ships for free.

10 Sleazy Celebrity Endorsements

Joe Mont — Mon, 06 Feb 2012 10:00:27 -0500

BOSTON (MainStreet) -- For as long as there have been celebrities, there have been celebrity endorsements.

Milton Berle introduced America to the mighty men of Texaco (working pumps from "Maine to Mexico"). Mean Joe Greene's spot for Coca-Cola (Stock Quote: KO) is considered a classic. O.J. Simpson dashed through airports for Hertz (Stock Quote: HTZ) long before he made a run for the border in a white Bronco.

Using celebrities has been an effective tool for advertising and marketing efforts. Though perhaps naively so, consumers have tended to trust these familiar faces and transfer likability to things associated with them.

In recent years, however, celebrity endorsements have become even more manipulative and, one could argue, sleazy. When it comes to taking shopping or financial cues from the rich and famous, buyer beware.

The Federal Trade Commission cracked down on "mommy bloggers" who failed to disclose the free swag they collected for their glowing reviews. But, despite general guidelines for what crosses the line, celebrity tweets haven't been nearly as scrutinized by that agency or other official watchdogs.

When 50 Cent hyped a headphone company, H&H Imports, on Twitter, what his 3.8 million followers didn't know is that it had more to do with his stock portfolio than the product. The penny stock's price spike earned him nearly $10 million, on paper at least.

The Kardashian clan's Twitter feed is a steady stream of paid-for name dropping.

Ashton Kutcher has been in hot water twice because of his promotional acumen. CBS slapped him on the wrist (ever so gently) when logo stickers for tech companies he invests in were stuck on a laptop and thereby prominent throughout a scene on his sitcom Two and a Half Men.

When Details magazine had him "guest edit" an issue, he used the opportunity to pimp some of those same companies -- among them FlipBoard and Foursquare. The FTC was prompted to issue a statement (a tweet, actually) to tell critics they had no intention of looking into the matter.

Sleazy, by definition, describes an endorsement deal made by pop star Ke$ha: For her "Get Sleazy" tour, she inked a deal with LifeStyles Condoms and the company went so far as to make a promotional line with her face on the wrapper (something that, with apologies to Woody Allen, might help more than thinking about baseball).

Bob Eubanks, who used to host the The Newlywed Game, was in an pickle back in the '90s when his paid testimonial for a 900-number dating service was used to help bilk millions from investors (he was never blamed directly by investigators). Cybill Shepherd heeded the advice "take the money and run" when she took a paid gig as spokeswoman for the Beef Industry Council in 1987. It was later revealed that she was actually a vegetarian.

The problem with celebrity endorsements is twofold. First, companies can mask their own dubious propositions by letting a popular, trusted personality do the dirty work for them.

The other issue is that reputable companies can't control their celebrity mouthpieces outside the soundstage. Tiger Woods' infidelity was a disaster for all involved with his "brand." Regardless of final legal dispositions, sports heroes Ben Roethlisberger and Kobe Bryant were still accused rapists, bad news for those banking on them at the time of allegations.

When it comes to commercials and endorsements, not all celebrities are created equal.

A study released last year by advertising analysts at Ace Metrix, Celebrity Advertisements: Exposing a Myth of Advertising Effectiveness, tested more than 2,600 television ads over the course of 2010 and found less than 12% of ads using celebrities "exceeded a 10% lift versus average industry norms" -- in other words, benefited from the association -- and nearly 20% of celebrity ads yielded "negative lift scores." "This research proves unequivocally that, contrary to popular belief, the investment in a celebrity in TV advertising is very rarely worthwhile," CEO Peter Daboll said.

The underperforming celebrities that year included Tiger Woods (23% less effective than average), Lance Armstrong, Kenny Mayne, Dale Earnhardt Jr. and Donald Trump. Celebrities who created the most "life" included, as one might expect, Oprah Winfrey and, more surprising, filmmaker Ed Burns and former Rocky nemesis Carl Weathers.

Despite those findings, companies still flock to celebrities to help put a shine on their products and services, and the famous are often quite mercenary in their approach -- willing to risk reputation if the price is right.

Here are 10 examples of celebrity endorsements that raised eyebrows, if not came across as flat-out sleazy.

Glenn Beck

Even fans of conservative talk show host and author Glenn Beck would probably concede that he can be -- to put it mildly -- a bit of an alarmist.

Among his many conspiracy theories and doomsday scenarios is a prediction of a total economic collapse, precipitated by the collapse of the U.S. dollar and hyperinflation that would put the billion-dollar bills of Zimbabwe to shame.

But owning gold bullion isn't enough to save you. On multiple occasions, Beck warned his audience that the government, thanks to an order dating back to FDR, had the power to seize most gold from you if it so desired. Exempt from its clutches, however, are antique and collectible coins, he explained. So any survivalist worth their year's supply of Spam and bottled water knows only gold coins are worth stockpiling.

Beck's talking points match up almost word-for-word with the sales pitch used by one of his ongoing sponsors, Goldline International, a company that also uses him as a paid endorser.

On Nov. 1, Goldline executives and salespeople were charged with 19 criminal counts by the Santa Monica, Calif., City Attorney's Office, which worked with the Los Angeles County District Attorney's Office on the case.

Founded in 1960, Goldline is based in Santa Monica and has more than 400 employees and annual sales exceeding $500 million.

The complaint charged that "Goldline runs a bait-and-switch operation in which customers, seeking to invest in gold bullion, are switched to highly overpriced coins by using false and misleading claims."

Among the tactics cited by investigators is "training salespeople to induce in customers fear of government confiscation of bullion and to tell customers that the overpriced coins were exempt from such confiscation." Sound familiar? (In fairness, there was a Depression-era order intended to stabilize the dollar and prevent a run on banks; only one prosecution ever resulted and it is debatable it could still be enforced, given the end of the gold standard).

Among the alleged acts of false advertising: "stating that the European coins they were promoting could be 'liquidated privately'; offering gold bullion for sale, in commercials and on Goldline's Web site, with no intention of selling it; stating that bullion could be 'purchased online' with a button on its Web site, when it could not be purchased online; and referring to the European coins they were promoting as 'rare.'"

"The so-called bait-and-switch allegation is preposterous because bullion accounts for more than 40% of the ounces of gold sold by the company during the past year," Brian Crumbaker, Goldline's executive vice president, said in a statement, countering what he called "numerous errors."

Beck continues to endorse and publicly defend the company, as do several other conservative pundits touted on the Web site with the tagline "Credibility: the most influential voices of today trust Goldline."

"Credibility" might not be the word that comes to mind for those inclined to think Beck's Chicken Little rhetoric about the economy had a profit motive.

Paula Deen

TV cooking show queen Paula Deen is renowned for her love of all things deep-fried and pushes unhealthy recipes soaked with butter and sugar, but kept her own battle with Type 2 diabetes a secret -- at least until drug company Novo Nordisk (Stock Quote: NVO) cut a big enough check for her to break her silence.

That the revelation coincided with a deal to shill for the injectable prescription drug Victoza opened her up to criticism about the "unhealthy" fare she has cooked, served and taught throughout her career as a restaurateur and media personality. For those so bent out of shape, we might be inclined to offer two words: "portion control." Just because someone on television cooks with caloric abandon doesn't mean you have to eat it, and certainly not in excess. After all, Deen is a TV star, not a doctor.

That's what we might have said, anyway, until it was revealed she was diagnosed three years ago.

We, of course, don't know what Deen was thinking when she decided to accept the Victoza deal. But here's how it looks: She kept slinging bad-for-you food for years, despite knowing firsthand the potential folly of such a diet, and only decided to go public when a big enough check was written. The delay meant no distractions from her lucrative brand by being recast as a kale-eating, soy-drinking sellout.

Let's make a comparison: The host of a TV show, well-known for being a heavy smoker, is diagnosed with lung cancer, but hides that fact and continues to keep promoting tobacco products. Then a drug company pays him handsomely to be the face of a new cancer drug and offer online advice, including "Don't worry, its fine to smoke just a few a day" as long as you use our product.

From a PR perspective, Deen's deal has been a recipe for disaster.

The Megaupload All-Stars

There's a famous exchange, though probably apocryphal, attributed to Winston Churchill:

"Madam, would you sleep with me for 5 million pounds?" he allegedly asked a socialite, who initially seemed to rather like the idea. Then he changed the offer to a mere five pound note. "What kind of woman do you think I am?" she snapped.

"Madam, we've already established that," was the response. "Now we are haggling about the price."

Regarding celebrities Will.i.am, P. Diddy, Lil John, Alicia Keys, Chris Brown, Kanye West, The Game, Mary J. Blige, Kim Kardashian, Macy Gray and Jamie Foxx, we may now understand that, for them, it was also about the price.

In December, in the days before government officials pulled the plug on file-sharing service Megaupload on charges it facilitated piracy, the company released a promotional video with testimonials from these and other celebrities.

In fairness, it is not known if they were paid, or how much. Amid spin control (after record labels were able to temporarily pull the video from YouTube) there were claims that not all of the featured performers authorized their inclusion. Barring editing trickery, the entertainers are certainly on camera, mentioning Megaupload by name.

One wonders why they would think it was a good idea to align themselves with Kim Schmitz, the slobbish sleazebag whose disposable identities have included the name "Kim Dotcom." More importantly, how much did it cost to have them betray their colleagues in the entertainment industry?

What did they think Megaupload was being used for? Fortune 500 companies using it to share documents among global offices? Far more likely is that traffic was split between people sharing porn and stealing media.

Even if you argue that SOPA and other anti-piracy efforts go too far, think of it from the celebrity perspective. Every song or movie shared illegally takes money out of not only their pockets, but the pockets of many others in their industry. Maybe A-listers are rich enough not to care, but couldn't they be bothered to think about their colleagues?

Montel Williams

When he hosted a talk show bearing his name in the 1990s, Montel Williams had a reputation for being a blunt, no-nonsense kind of guy.

A Navy veteran, he portrayed himself as a man of honor and advocated for the oppressed, especially when it came to issues facing youths. He remains a popular motivational speaker and author, and post-talk show, Williams has lent his name to some admirable causes, including the Partnership for Prescription Assistance, an organization spearheaded by leading pharmaceutical companies that helps financially strapped patients get free or heavily discounted medications.

Less laudable is his TV commercial appearances and website endorsements for businesses such as Money Mutual, a Las Vegas-based "payday" loan facilitator that works with more than 60 lenders throughout the country.

On its website, there is a section called "Why is Montel Williams endorsing this site?"

"Montel Williams has endorsed MoneyMutual to provide access to short-term cash loans to people who have no other alternatives," it says. "Montel takes pride in being able to provide people with information to help them live better physically, spiritually, financially and emotionally. Montel understands that people have unexpected and needed expenses ... sometimes difficult to pay due to lack of funds or credit. Rather than bounce a check, or receive late-payment penalties, Montel believes that a short-term loan from MoneyMutual's network of participating lenders can provide the immediate assistance to avoid costly fees."

There are of course some who can responsibly take advantage of payday loans and understand the risk and costs associated with them. They can be a helpful financial tool. MoneyMutual, however, avoids stating directly what borrowers can expect to pay in fees and interest.

"Since MoneyMutual is not a lender, we are not able to provide or advertise the actual terms, rates, annual percentage rates or fees associated with the loan you may receive," its site says. "The reason for this is that the terms, rates, APRs and fees vary from lender to lender."

That could lead to a not-so-pleasant surprise for borrowers.

The advocacy group Consumers Union, parent of Consumer Reports, has warned that short-term loans of this type have been found to require as much as $17.50 in fees for every $100 borrowed and the interest rates can amount as much as 911% for a one-week loan.

Not all lenders may gouge to that degree, and many states have imposed caps and restrictions.

Williams, as someone familiar with the daytime TV demographic, certainly knows that many of those targeted by the MoneyMutual ads are probably not home by choice. Out of work, ill or elderly, they are the folks most likely to be looking for an emergency fix for their finances and the ones most likely to dig even more of a deep, expensive hole.

It is all the more more craven given that the inspirational, you-can-do-it message Williams has built a career on is now used to push a fast-money strategy that could do long-term damage if not used responsibly.

Jimmy Johnson

As a football coach -- especially as the brash, good ol' boy who led the Miami Hurricanes and Dallas Cowboys -- Jimmy Johnson was never shy about voicing his opinions. As a Fox (Stock Quote: NWS) Network football analyst, he continues to be an opinionated, polarizing figure.

Apparently, what allows him to be so colorful is a lack of shame. How else to explain his endorsement deal with ExtenZe, an herbal supplement billed as "natural male enhancement."

The ads use various euphemisms to get around actually saying "larger penis." That might have something to do with a 2006 fine of $300,000 levied by the Orange County, Calif., District Attorney's Office for false advertising, notable an inability to support claims it could grow the appendage in question by nearly a third its size. Even an ingredient known to botanists as "horny goat weed" may not be able to live up to that promise.

Despite the occasional class-action suit and the embarrassment most of us would feel to be telling America we are a proud user of such a supplement, Johnson seems at ease with his role.

He has described himself as an ""an unabashed user" and, in one commercial boasts: "Most men want to perform the best they can in just about everything ... Go long with ExtenZe. I do."

Some things just cannot be unseen or unheard.

The Kardashians

When they are not pimping out their tweets, the Kardashian family is apparently always on the hunt for unique business opportunities to fit their brand.

So, of course, they turned to the financial services industry.

The late 2010 launch of the Kardashian Kard, a prepaid debit card bearing the image of the three reality-show sisters, was a disaster from the start and a move even these sirens of sleaze should have been smart enough to avoid.

Produced by Minnesota-based University National Bank, the card was notable for having an upfront fee of $59.95 for six months and $99.95 for a dozen. After that there would be a $7.95 monthly fee and a host of other charges (a $1 fee to check the balance, $1.50 to speak with customer service, $6 to cancel the card).

"The family is marketing a dangerous financial fantasy," Connecticut Attorney General Richard Blumenthal (now a U.S. senator) said in a statement at the time of the card's launch. "Ironically, the Kardashian Kard will distance consumers from the financial abundance key to the Kardashian's lifestyle. Consumers lose money before they can use it with this card."

The Kardashians were shocked, shocked, I tell ya.

As negative news stories mounted, their lawyer drafted the following bit of spin to terminate the whole arrangement (surely disappointing the whole 250 people who'd actually signed up by that time):

"The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults," he wrote in a letter to the bank that was conveniently copied to Blumenthal. "They have been successful in doing so because they are recognized as honest, ethical and fun-loving individuals who are kind and caring to others. Unfortunately, the negative spotlight turned on the Kardashians as a result of the attorney general's comments and actions threatens everything for which they have worked."

So, to recap, the girls and their "people" jump on a chance at a quick buck, take heat, renege on that agreement and then can't resist a final sarcastic dig at a public official for having ... OMG ... the audacity to point out their name was on a product ripping people off with fees more than 10 times the national average.

Hulk Hogan/Troy Aikman

Hulk Hogan, perhaps the most famous pro wrestler of all time, has an undeniable blue-collar appeal. Ditto for his co-star in recent Rent-A-Center commercials, Troy Aikman, former quarterback of the Dallas Cowboys.

We are not going to pretend athletes -- real or make-believe -- should be held up as having particularly altruistic motivations. But still we have to wonder why, given all the endorsement opportunities they might have, they aren't more picky about the businesses they are associated with.

Rent-A-Center is hardly a fly-by-night operation. In business since 1986, it owns and operates more than 3,000 stores in 50 states, Washington, D.C., Canada, and Puerto Rico.

What gets the goat of many consumer advocates, however, is that its business model -- get that TV, computer or sofa you want for easy weekly payments -- encourages people to impulse-buy their way to a very bad loan, one with a triple-digit APR. That big-screen TV could end up costing you twice as much at the end of a contract, and that's not even including depreciation and the fact that better, less-expensive models may hit shelves before it's paid off. If it gets paid off. The company's own data show only one-fourth of customers actually complete a purchase.

Last year, Rent-A-Center agreed to a settlement with the attorney general of Washington state over its collection tactics. The company denied the state's allegations but agreed to a list of restrictions on its practices.

Among the accusations were "cussing at customers, pounding on doors, peering in windows and threatening arrest." The state presented testimony from customers who said employees seeking to collect on debt went so far as to attempt to kick in the door of a couple's home and told an 11-year-old autistic girl being baby-sat that her mom could be jailed for theft.

If you need a couch for two weeks between moves, great. But the rent-to-own options are financially reckless and targeted to a low-income audience. And that's something Hogan and Aikman, successful businessmen, should know better than to push on their fan base.

Suze Orman

Most people wouldn't want their doctor to prescribe a medication in which they have a financial interest.

Sure, the doctor may have faith in that particular pill and be concerned only about your well-being, but the appearance of a conflict of interest is troubling.

That, in a nutshell, is why so many folks are lambasting personal finance expert/author/TV personality Suze Orman.

Orman is another celebrity promoting a prepaid debit card.

The product, The Approved Prepaid MasterCard (Stock Quote: MA), does, in her defense, have lower fees than many competitors -- $3 initially, $3 a month, $2 to use ATMs and roughly $3.50 to reload it via Western Union (Stock Quote: WU) or a similar service. Included is "unlimited free online access" to TransUnion credit scores, reports and monitoring for one year.

There is also something called "The Credit Project" -- the ability to anonymously share transaction information with TransUnion (Stock Quote: TRUN) so "they may help us understand whether including this data in your credit report would impact your access to credit products." What that means, exactly, for cardholders is fairly vague. "It is my hope that this data sharing will show that responsible use of The Approved Card can help predict those who deserve credit for managing their money well and spending responsibly," Orman says.

The marketing materials make this whole offering seem downright magical.

"The Approved Card isn't just another financial product or a normal prepaid card," a press release reads, with oppressive use of the shift key and caps lock. "It's the start of a financial revolution to enable Americans to empower themselves. Orman, the longtime financial crusader, is inviting consumers to join her 'PEOPLE FIRST' movement with her Approved Card. Suze didn't just endorse this card -- SHE CREATED IT from the ground up to change the way people think about and use their cash."

Forgetting, perhaps, that there are these things called "savings accounts," the card is also touted as an ideal way to create an emergency fund.

So back to that doctor analogy. The card seems fair enough, really, as such things go. Not a great deal, but not a horrible one either. It just seems wrong for a person so many people look to for financial advice to profit by joining forces with a credit card company and selling a branded financial product. The touted benefits -- alternating between vagueness and hyperbole -- do little to reduce the bad taste.

Dionne Warwick

Burt Bacharach's occasional songbird helped secure a place in history for two of the sleaziest business trends in modern times: pay-per-minute phone lines and late-night infomercials.

Warwick was the original face of The Psychic Friends Network throughout most of the 1990s. For about $3.99 a minute, callers to a "1-900" line were connected to purportedly genuine psychics available to offer them answers, advice and affirmation.

Two predictions that the team of soothsayers seem to have missed: that her cousin, Whitney Houston, should be kept away from any and all things related to either Bobby Brown and crack; and that by 1998 the company would go bankrupt.

That bankruptcy came after its owner, Inphomation Communications, racked up $26 million in liabilities compared with a mere $1.2 million in assets.

The service is now back, but without Warwick. Focused more on online conferencing than traditional phone lines, the new ownership had initially tapped actress Vivica A. Fox as its celebrity endorser. But, in a move its prognosticators also failed to see coming, Fox later claimed that use of all those commercials, testimonials and headshots she shot, many of which had already aired, were not "authorized." Perhaps a crystal ball revealed that the gig was a credibility-shredding way to grab a paycheck.

Perhaps, back in the day, Warwick really was a true believer and not just an accomplice to the hundreds of dollars conned out of naive, desperate callers. The new site does, after all, promise that, "All of our psychics undergo a rigid screening to identify those who really have the psychic gift, as well as to find those psychics who truly care for the well-being of the clients, for whom they do their readings."

Our guess, however, is that it was bank statements, not minds, that were typically being read.

Lil Wayne

No offense to Lil Wayne, but if we are skeptical of a debit card offered by Suze Orman there's little chance we'll plunk our cash into the one he peddles.

His Young Money Card, issued by Discover Financial Services (Stock Quote: DFS), includes a variety of interesting features: direct deposit, online bill pay, online budgeting tools, the ability to reload at retail locations throughout the nation, a cash-back partnership with the Ebates website; and, perhaps appropriate given Lil Wayne's drug-related troubles with the law, a "prescription, imaging and lab test savings card." A portion of every card sold will benefit nonprofit organizations such as Lil Wayne's One Family Foundation.

Ah yes, there are also fees. The card's purchase price is $6.95 with a $3.95 monthly maintenance fee. ATM withdrawals cost $2 and the reload fee is $4.95.

This week, Comedian George Lopez announced that he too has a debit card deal: a partnership with Mango Financial's Mango Prepaid Card.

"This is not only an opportunity to promote a great company with great products, but also a chance to make a difference in people's lives," Lopez says in a statement. "My grandparents, a factory worker and construction worker, who raised me, taught me the importance of hard work and financial discipline to reach my goals. I'm proud to support a company that has made it easy and affordable for people to manage and save their money to help them realize their goals."

The problem with Lil Wayne, and we'll add in Lopez and Orman as well, is that celebrities seem intent on selling fee-loaded debit cards and making it sound like they are doing society a favor.

For Lil Wayne especially, his card is aimed squarely at people who otherwise lack credit or, perhaps, even a bank account. Making money at their expense, under the pretense of helping them, is as hypocritical as it is sleazy.

By the way, if you ever run into hip-hop mogul, philanthropist and founder of the RushCard Russell Simmons, don't call him a "celebrity endorser." In an "open letter" issued to the financial press last month, he took umbrage to such a description.

"In recent weeks, coverage of prepaid debit cards launched by Suze Orman and Lil Wayne has repeatedly portrayed me as a 'celebrity endorser,' he wrote. "Some of these stories have gone so far as to depict my RushCard business in the same light as the ill-fated Kardasian Kard. The truth is, eight years ago I invested millions of dollars, putting my reputation on the line to found UniRush LLC. I created the first prepaid debit card account, requiring no linkages whatsoever to a consumer checking account ... I created this industry because my customers had been left behind by the banking industry."

"What did I do to earn the title of 'celebrity endorser'?" he asked. "Richard Branson endlessly and lovingly promotes his airline's cellphones, cable channels and spaceships, as he once did his retail and music empires; is he a 'celebrity endorser'? How about Mark Zuckerberg, the 'celebrity endorser' of Facebook? Success certainly breeds celebrity, as it has for Branson and Zuckerberg. Yet neither of these astute businessmen is categorized as a celebrity endorser. I submit this is because each is an innovator and a creator, having taken thousands of risks and enduring the pitfalls that trailblazers brazenly face. Just as I did, when I created an industry with an uncertain business model and no path to earning a reasonable return."

A celebrity endorsement is a great way to get some visibility, but many companies can get the press with a different kind of sleaze. Check out MainStreet's look at For Super Bowl Advertisers, Rejection Doesn't Always Hurt!

7 Dos and Don’ts of a Professional Website

Jeanine Skowronski — Mon, 06 Feb 2012 07:00:00 -0500

Having your own website can be a boon for job hunters as more and more companies turn away from traditional resumes and vet candidates based on their online presence. Here’s how to create one the right way.

Valentine's Day: 10 Gifts on a Budget

Kerri Fivecoat-Campbell — Sun, 05 Feb 2012 07:00:00 -0500

Every person has their own tastes, but Valentine’s Day can be a great time to use a less-clichéd gift to say "I love you."

12 Neighborhoods Where Locals Want to Live

Matt Brownell — Sat, 04 Feb 2012 07:00:00 -0500

Moving to a new city? Get the inside scoop on where the locals are moving.

Glassdoor Uses Facebook Data to Help You Find a Job

Seth Fiegerman — Fri, 03 Feb 2012 17:50:00 -0500

NEW YORK (MainStreet) — There are plenty of ways that Facebook can end up costing you a job, but one new service hopes to turn Facebook into a tool for landing a job.

Employment website Glassdoor.com added a feature to its job search engine this week called Inside Connections, which lets job hunters use their Facebook contacts to find out if they know someone working at a company they’re interested in. All the user has to do is allow Glasssdoor access to his or her Facebook account, then each time he or she searches through Glassdoor’s directory of companies, the site will display any Facebook contacts who either currently work there or used to.

By referencing all the social data Facebook has on its users’ employment histories, Glassdoor is making itself a bit more like LinkedIn. Not only can job hunters find details about companies and job postings in their industries, but they can also find out how to get their foot in the door.

As MainStreet has reported before, half the battle of getting your resume noticed is finding a way to get it in the hands of an actual person at the company rather than a general human resources e-mail address. Glassdoor’s feature just made that fight a little bit easier.

Credit Q&A: Are Rewards Points Taxable?

Jeanine Skowronski — Fri, 03 Feb 2012 16:58:17 -0500

Q: I heard that Citi Bank sent 1099 forms to cardholders who earned frequent-flier miles through a special promotion. Are my credit card rewards points taxable?

A: Generally speaking, your rewards points aren’t going to be taxable if you’ve earned them by charging purchases to your credit card.

As MainStreet has previously reported, rewards programs are essentially structured as a rebate and are not going to require you to pay taxes on the rewards at the end of the year. However, extra points or dollars awarded as a sign-on bonus that has no spending threshold attached to it are a different story should their value total $600 or more.

In the instance with Citi (Stock Quote: C), the 1099 recipients had received more than 25,000 frequent-flier miles with American Airlines (Stock Quote: AMR) – equal to $645 of taxable income – when they opened a checking or savings account with the bank last year.

“When frequent-flier miles are provided as a premium for opening a financial account, it can be a taxable situation subject to reporting under current law,” says IRS spokeswoman Michelle Eldridge.

As such, it’s important that cardholders pay attention to the size of the bonus and the structure of the promotional campaigns before they take advantage of them.

Additionally, “if taxpayers have questions about the information they receive on a Form 1099, they should follow up with the issuer or their tax professional to resolve any questions about valuation, timing or other issues regarding the income reported,” Eldridge says.

Want to know what affects your credit score? Email your questions to MainStreet at editors@mainstreet.com.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

19 Uses for Baking Soda, Dryer Sheets & Beer

MoneyTalksNews — Fri, 03 Feb 2012 14:30:00 -0500

By Angela Colley

Cleaning products and personal care items once consumed a sizable chunk of my discretionary income. But now the cabinet under my sink only has trash bags, a bottle of vinegar, and a box of baking soda.

Household items like vinegar, baking soda, salt, and even beer can replace many of the products you use to clean, do laundry, garden, or take care of yourself. And they’re cheaper to boot. Here are 19 ways I’ve found to replace expensive store-bought chemicals…

Around the house…

1. Clean glass

Mix a quarter-cup of white vinegar and 3 cups of water in a spray bottle, and you have a better glass cleaner than any commercial product you could buy. Just spray it on, wipe it down with a piece of newspaper, and you’re done!

2. Clean porcelain and chrome

I use the same vinegar mixture to clean my bathroom. The vinegar is mild enough that it won’t etch the porcelain on my vanity, and it makes the chrome faucets shine.

3. Scrub stuck-on food and stains

Baking soda works as an alternative to abrasive cleaners like Comet. You can sprinkle dry baking soda on stuck-on food, or combine the baking soda with a little water to make a softer scrub for bathtubs and shower tiles.

4. Deodorize carpet

Sprinkling baking soda on carpet removes odors. Cover the entire area with a light sprinkling and let it sit for 30 minutes to an hour, then vacuum it up. The baking soda will absorb the smell. It works great on pet smells and other mild odors.

5. Mop tile floors

I’m in love with my Swiffer Wet Mop – just not the chemical fest cleaner that comes with it. Instead, I mix a half-cup of vinegar and warm water in a spray bottle and spritz it as I mop. It doesn’t smell great at first, but the vinegar mixture is tough enough to remove stains and the smell disappears as it dries.

6. Clean a cast-iron skillet

Not being able to use dish soap or heavy cleaners on my cast-iron skillet gets challenging, especially when the bottom is covered with stuck-on food. I sprinkle salt over the stuck-on bits and use a plastic brush to clean the pan. The salt is gritty enough to force the food bits free, but soft enough that it hasn’t damaged my pan.

7. Remove stains from a glass coffee pot

Coffee stains everything, especially the inside of the coffee pot. If the bottom of your pot gets gunky, pour in about a quarter-cup of salt, five or six ice cubes, and some water. Then (gently) swirl the mixture around. The salt and ice will scrub the pot and lift the stains. Just make sure you wash the coffee pot before you use it again.

8. Polish metal

The acidity of beer actually polishes metal. Rubbing copper-bottom or aluminum pans down with some flat beer removes tarnish and restores shine. Beer also works on baking sheets and cupcake tins.

Laundry…

9. Keep your clothes from fading

My dry cleaner taught me this trick when I brought in a faded sweater: Soak new clothes in 1 cup of white vinegar and water for 10 to 30 minutes before you wash them for the first time. The vinegar removes excess dye and helps lock the color in, so it won’t bleed out and fade in the wash cycle.

10. Clear yellowed and sweat stains

White clothes are a pain. Sweat in them at all and you get stains. Leave them in the closet for too long, and they start to yellow. Thankfully, salt can remove the discoloration. Mix a cup of salt in a sink full of warm water and soak the stained area for 30 minutes. Then wash as normal.

11. Neutralize odors

Adding a half-cup of baking soda to the beginning of a wash cycle will remove strong odors on your clothes. Just pour the baking soda in, add some laundry detergent, and wash as normal. The baking soda even worked on my mildewed towels.

12. Keep clothes smelling fresh

After you dry your clothes, save the dryer sheet and put it in your drawer. The dryer sheet will keep releasing that just-washed smell for a couple of weeks inside the drawers, keeping your clothes smelling fresh longer.

Personal care…

13. Exfoliate your skin

I haven’t bought a commercial facial scrub in years. Instead, I mix a small amount of baking soda with a bit of water in my hand, apply the mix to my face, and scrub gently. My skin is softer, and baking soda is a lot cheaper than exfoliates.

14. Restore shine to hair

My stylist uses a “beer rinse” once a week. She swears the B-vitamins in beer adds shine to her hair. I tried it, and my hair definitely looked better (even if it smelled a little funky). After shampooing, pour half a can of beer over your wet hair and let it sit for a few minutes, then rinse with cold water.

15. Calm frizzy hair

Humidity is not kind to hair. Some days, I look like I stuck my finger in a light socket. So I keep dryer sheets in my car. Seriously. Run a dryer sheet over your hair and it will stop fly-aways and reduce frizz.

16. Soak your feet

A half-cup of salt mixed with warm water works as a foot soak. Add the mixture to a shallow bowl and dip your toes in. After 10 minutes of soaking, you’ll have soft, soothed feet.

Outdoors…

17. Store fresh flowers

Fresh-cut flowers start to die the second you put them in a vase. You could buy those expensive food pellets to keep them fresh, or you could just pour a quarter-cup of vinegar in the vase. The vinegar seals the stems and keeps cut flowers looking fresh for several days.

18. Cure brown spots

Beer has an acidity that works like magic in your yard. Pour a cup of beer over a brown spot in your yard, and the acid will promote grass growth.

19. Wipe bugs off your windshield

I had bug guts stuck to my windshield after I washed it by hand. To remove them, I pulled the used dryer sheet out of the laundry and wiped the car down. The dryer sheet pulled all the bugs right off.

I’ve found more than a few uses for vinegar in my house, but there are still hundreds more I haven’t tried. Check out Household Products Vinegar Can Replace for more ideas. And if you want some more cleaning tips, check out 6 Tips and 14 Products for Cleaning Tough Stains.

How to Use Your Credit Card to Save on Tax Prep

Jeanine Skowronski — Fri, 03 Feb 2012 14:13:01 -0500

NEW YORK (MainStreet) — Valentine’s Day gifts aren’t the only things your credit card can help you save money on – you can also get a discount on your favorite tax software or tax preparation service. Here’s a roundup of some of the better tax deals your credit card can buy you.

Discover (Stock Quote: DFM) cardholders can get 20% cash back on purchases made at H&R Block through ShopDiscover, and they can also get 15% cash back on TurboTax software through the online mall as well.

Citi (Stock Quote: C) is giving cardholders 10% cash back through its Bonus Cash Center on H&R Block At Home, and is offering a coupon code to get 15% off on online tax preparation with the preparer. Citi also offers 8% cash back on TurboTax software.

Meanwhile, Chase (Stock Quote: JPM) cardholders can get 15 extra rewards points per dollar spent on H&R Block At Home software or eight extra points per dollar spent on TurboTax software through its Ultimate Rewards Mall.

Bank of America (Stock Quote: BAC) is offering nine extra points per dollar spent on TurboTax purchases through its WorldPoints Mall.

American Express (Stock Quote: AXP) is offering cardholders the opportunity to get 15% off on H&R Block software and 10% off on TurboTax software in its Deal Center. H&R Block purchases also earn cardholders 15% cash back that will be donated to the United Way.

MasterCard (Stock Quote: MC) doesn’t have any partnerships with tax preparers listed in its online marketplace, but is featuring a few LivingSocial deals on tax preparation services that entitle cardholders to a varied number of extra rewards points.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

With Rates This Low, Should You Refinance Again?

Brian O'Connell — Fri, 03 Feb 2012 14:02:10 -0500

NEW YORK (MainStreet) – When it comes to mortgage rates, homeowners have been watching just how low they can go and reacting accordingly to historically rock-bottom interest rates.

When rates hit 5%, the rush to refinance was sizeable. When rates fell to 4.5%, the rush to refinance was more substantial. When rates fell to 4%, the rush to refinance was downright staggering. And here we are again, with the average 30-year fixed-rate mortgage falling another rung on the ladder, to 3.87%.

With rates at “an all-time record low,” according to Freddie Mac, the rush to refinance may well reach stampede status, especially with good news on jobs (this morning's announcement that the unemployment rate fell to 8.3%), and more bullish sentiment elsewhere on the economic front.

Refinancing, even if you just did it six or nine months ago, certainly makes plenty of financial sense these days. Freddie Mac is out with a report stating that 49% of homeowners who refinanced their mortgages during the fourth quarter of 2011 reduced the principal balance on their mortgages – the highest percentage in 26 years.

The study also shows that the median interest rate reduction was 1.4%, a 26% savings on mortgage interest rates, and during the first year of the newly refinanced loan the average dollar savings totaled $2,700 on a $200,000 home loan.

“Savvy homeowners are taking advantage of some of the lowest fixed-rate [mortgages] in more than 60 years to lock in interest savings,” says Frank Nothaft, vice president and chief economist at Freddie Mac.

So even if you just refinanced, the benefits of doing so again may well outweigh standing pat. Let’s look at some at some reasons why it may be a good idea, and why it may not be. Here are the pros:

Not only will you reduce your mortgage rate, you’ll reduce the principal balance on your home mortgage.
More cash in your wallet allows you to use that money to spend down other debt, pay off your house more quickly, or add to your retirement savings.
If you use the extra money to pay down debt, you can improve your credit rating – thus making future loans even more affordable.

And for the contrarians, here are the cons of refinancing again:

Every time you refinance you “reset” your mortgage payment clock to 30 years. So it may, depending on your payment volume, take you that much longer to satisfy your loan obligation.
Any loan process with a bank or mortgage lender is akin to root canal. Be prepared for more paperwork, more negotiations, and more scrutiny on your credit rating.
You’ll be paying fees and closing costs to refinance, and that will cut into your savings.

There’s a reality check involved here, too.

Banks and lenders won’t be offering 3.87% mortgage interest rate deals to just anybody. You’ll need platinum-level credit – think a FICO score of 720 and above. If that’s you, great, you stand the best chance of getting the low rates and saving money on your mortgages. But the further down the FICO scale you slide, the higher your interest will be – and it won’t be 3.87%.

To get a good grip on where you stand refinancing-wise, use BankingMyWay’s Refinance Interest Savings calculator. Even in you refinanced in the last year, the calculator can tell you how much interest you can save if you refinance your mortgage again.

Beyond that, figure out where you are, house-wise. One rule of thumb is that if you plan on moving within five years, refinancing is a bad idea (the real savings are usually found at the back end of the deal, and the front-end savings are chewed up by closing costs and fees).

But if you have good credit and plan on being around a while, there’s no reason you can’t take advantage of record-low mortgage rates.

After all, you just don’t know if you’ll ever see them again.

Depending on your situation, you may be eligible for a bit of government help in your refinancing efforts. Check out MainStreet's rundown of President Obama's proposal to know what to expect!

5 Hopeful Signs in the January Jobs Report

Seth Fiegerman — Fri, 03 Feb 2012 13:06:30 -0500

NEW YORK (MainStreet) — The U.S. economy added 243,000 jobs in January, beating expectations by about 100,000 jobs, and pushing the unemployment rate down 0.2 percentage points to 8.3%. Even beyond these baseline improvements, there are plenty of reasons to be happy with the latest jobs report.

Employment-to-Population Rate Rises

While the unemployment rate is the standard measurement people look to when assessing the strength of the labor market, it doesn’t take into account those who are perfectly able and willing to work but have given up looking for jobs. For that, the best number to turn to is the employment-to-population ratio, which takes into account all working-age adults. The percentage of the population that was employed stood at 58.5%, an increase of 0.1% from the same month in 2011. That may not seem like much of an improvement, but during that time, the population has increased by roughly 3.5 million, which means more than that many jobs have been created to keep the employment rate steady.

The Underemployment Rate Drops

Another way to view the health of the labor market is to consider the underemployment rate, which takes into account not only those who are unemployed but those who are only partly employed for economic reasons. That number stood at 15.1% in January, which is certainly still high, but a full percentage point less than what it was the same time one year before.

Construction and Manufacturing Booms

Construction and manufacturing were two of the hardest-hit industries in the recession, but the most recent jobs numbers suggest they are on the mend. The construction industry added 21,000 jobs in January after having added 31,000 the month before. Manufacturing had an even more striking increase, adding 50,000 positions in January.

More Jobs Added in Previous Months

As if the January jobs numbers weren’t good enough, the Bureau of Labor Statistics also issued a revision for the two previous months showing even greater job gains. The new numbers show that there were 203,000 jobs added in December, up from 200,000 originally, and 157,000 jobs added in November, up from 100,000 originally. That’s 60,000 more jobs we didn’t even know we had.

Hourly Earnings Increased

Hourly earnings rose by 4 cents in January to $23.29. That may not be enough to buy a new house, but every pay increase gives the consumer a little more spending power, which in turn fuels the economic recovery.

Looking for a job right now? Find out the five things you shouldn’t mention in an interview so you can land a new gig.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

Your MainStreet Money Minute: Feb. 3

Greg Emerson — Fri, 03 Feb 2012 12:00:13 -0500

This week in money: The right way to use debit and the new rules of job hunting.

This Could Be Last Chance for Second Home

Joe Mont — Fri, 03 Feb 2012 11:29:00 -0500

BOSTON (MainStreet) -- Snowbirds looking for leisurely living in sunnier climates are providing a bright spot for the battered housing market.

Each March, the National Association of Realtors assesses the previous year's trends regarding vacation- and investment-home sales. In 2010, those purchases held steady from a year earlier: 10% and 17%, respectively, of transactions.

NAR's analysis of U.S. Census Bureau data show there are 7.9 million vacation homes and 41.6 million investment units in the U.S., compared with 74.8 million owner-occupied homes.

The news may be getting better for those looking to sell or broker second homes. With millions of baby boomers preparing to retire, real estate professionals are optimistic vacation and rental properties will be in even greater demand for the next several years.

NAR also sees good news in that 40.7 million people in the U.S. are between the ages of 50-59 -- a group that dominated sales in the first part of the past decade and established records for second-home sales. An additional 43.8 million people are in the primary buying demographic of 40-49 years old, while another 40.4 million are 30-39.

"Even if purchases are delayed due to economic circumstances, the underlying long-term demand -- the desire for purchasing second homes -- remains because people in their 30s and 40s will reach the prime age for buying and will drive the second-home market in coming decades as conditions permit," NAR Chief Economist Lawrence Yun says.

According to NAR, the typical vacation-home buyer in 2010 was 49 years old and had a median household income of $99,500; investment-home buyers had a median age of 45 and earned an average $87,600. All-cash purchases have become prevalent in the second-home market in recent years: 59% of investment buyers paid cash in 2010, as did 36% of vacation-home buyers.

"An interesting trend is showing that people are planning to eventually occupy their vacation homes," says Jennifer DuBois, director of Realtor.com. "Thirty-four percent say they plan to use the property as a primary home in the future. So it's almost like you are buying their retirement home now."

In 2010, 34% of vacation-home buyers said they plan to use the property as a primary home in the future, as did 10% of investment buyers, according to NAR.

For those near-retirees looking to buy a secondary home, there are a few things to consider:

First, make sure you want to invest in a particular city or town. Don't just base your decision on how an area fits with your interests -- sun and swimming, peaceful hiking trails or mountainous ski slopes -- make sure you visit and you can get on board with the investment. Also, make sure you will be able to visit often enough to make the investment worthwhile.

The next crucial step is to estimate what the new home will cost.

According to NAR, the median vacation-home price was $150,000 in 2010, down 11.2% from $169,000 in 2009, while the median investment-home price was $94,000, 10.5% below the $105,000 median in 2009. By contrast, the median primary home price declined just 4.5%, to $176,700, last year from $185,000 in 2009.

Smart buyers -- willing to engage in some research -- may be able to sniff out even better deals.

Second-homebuyers purchased more distressed homes at discounts than buyers of primary residences, according to NAR. Foreclosure or trustee sales accounted for 17% of investment purchases and 11% of vacation-home sales in 2010, compared with 5% of primary purchases.

Those bargains may not last forever, however. Many of the warm-weather regions popular with vacation home buyers are seeing a recovery.

Ten of the nation's local real estate markets that suffered from high foreclosure rates in recent years, eight of which are in Florida, are leading America's housing sector toward a general recovery, according to a Realtor.com report on top "turnaround towns" issued this week.

Among the rebounding communities, based on an increase in median sales price and reduction of existing inventory, were the Florida cities of Miami, Orlando, Sarasota, Naples, Fort Myers-Cape Coral, Punta Gorda and Lakeland-Winter Haven. Also making the list were Phoenix, Ariz., and Boise, Idaho, the former being a destination for retirees seeking dry air and golf courses.

"This is the time of year where older people are often thinking about moving to Florida," DuBois says. "If you have the money and can get the mortgage, interest rates have never been lower ... there are some good opportunities. We're not at peak prices the way we were in 2007, and if you can afford it it's a good time to buy."

Vacation-homebuyers need to decide whether they wish to subsidize their purchase by renting it out when they are not using it.

DuBois makes a pitch for searching out a local real estate agent to help determine the best approach for renting out a home.

"You want to have a local expert on the ground," she says. "You want to make sure that you are aware of any trends that might be happening. A local Realtor can tell you what the average rental is for that level of property based on whether you have a one-bedroom or two-bedroom and, perhaps, even based on the furnishings. You might be somebody who wants to appeal more to families or singles or more to couples. A Realtor can tell you which is more advantageous in the local market."

An alternative is offered by T.J. Mahony, CEO and co-founder of FlipKey, an online vacation rental marketplace.

"Of the folks who have a vacation home, the average person will leave it vacant about 90% of the year," he says. "So they have a beautiful piece of property and nine out of 10 days there is nobody in it. There is obviously a large opportunity to utilize that space better. What we find though is that a very small minority of second-homebuyers actually rent it out to a guest, and when they do it is actually quite profitable."

He says the average FlipKey user earns about $26,000 a year renting out their secondary home.

Mahony says the "No. 1 holdup" preventing more people from renting their homes is concern over having guests they don't know and the threat of damage or theft. He counters those concerns with a survey of his membership that found 94% had either never had an incident, or just a single, minor one.

"People just have to look at their own finances and make sure they are ready for that commitment, because you are doubling your mortgage payments and increasing your taxes," DuBois further advises those looking at a second home. "Be aware if you are going to buy into a community that has [a homeowners association] fee and make sure you realize all the hidden expenses. As far as maintenance goes, is a property manager the right person to go to? Do you want to go to a gated community or someplace that takes care of the outdoor maintenance, or is that something else you are going to be responsible for yourself? The average distance is about six hours away, so that is a plane ride. It will be a substantial commitment."

Taxes also get more complicated and will likely be influenced by how much time you spend under your new roof.

The following tax tips for vacation-homeowners were offered by TurboTax (Stock Quote: INTU):

If you use the property as a second home rather than renting it out, interest on the mortgage is deductible within the same limits as the interest on the mortgage on your first home (at least until Congress decides whether to eliminate or modify all such deductions). You can write off 100% of the interest you pay on up to $1.1 million of debt secured by your first and second homes and used to acquire or improve the properties.

You can deduct property taxes on your second home. Unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own.

If you rent the property for 14 or fewer days during the year, you can pocket the rental income tax free. The house is considered a personal residence, so you deduct mortgage interest and property taxes under the standard rules for a second home.

If the home is rented out more than 14 days, all rental income must be reported. Rental expenses are deductible, but proper documentation is needed to differentiate between the time the property is lived in versus rented. If you use the property more than 14 days, or more than 10% of the number of days it is rented, whichever is more, it is considered a personal residence and the rental loss can't be deducted.

If you limit personal use to 14 days or 10%, the vacation home is considered a rental property and up to $25,000 in losses (for example, maintenance costs) may be deductible each year.

Additional tax tips for second-homeowners can be found here on the TurboTax website.

Your Last-Minute Super Bowl Deal Roundup

Matt Brownell — Fri, 03 Feb 2012 11:27:39 -0500

NEW YORK (MainStreet) – There are a number of great deals still available for Super Bowl weekend – some are specifically tied in to the big game, while some will just let you save a little money as you plan out the festivities. Here are a few that caught our eye.

Want to preview the Super Bowl by playing out the Patriots-Giants matchup on your phone? Head over to the Android Market, where Madden NFL 12 is currently just 99 cents, marked down from the usual price of $4.99. It’s not clear how long the price cut will last. If you want other smartphone apps to enhance your Super Bowl experience, check out our roundup of 11 apps for everything from food to trivia.

Most people call up their local pizza joint to order food for the big game, but Burger King wants to change that. To get you in the door, the fast-food chain is offering a free value-sized order of onion rings on Saturday and Sunday. The promotion isn’t good during breakfast hours, and you can only get one order per visit.

You might also be able to get free pizza this weekend at Papa John’s. If the Super Bowl coin toss lands on heads, every Papa Rewards member will get a free large one-topping pizza and a 2-liter bottle of Pepsi Max. You’ll need to enroll in the free rewards program by 6 p.m. EST on Super Bowl Sunday to be eligible for the deal.

Don’t have a TV for your Super Bowl party yet? Best Buy has a 46-inch 1080p LCD TV for just $379.99, marked down from $599.99. Availability varies: It’s available in some stores now, and in other cases you’ll need to have it shipped to your nearest store, so it might not get there in time for the game. If you want to go even bigger, there’s a 55-inch Dynex TV for $599.99, marked down from $799.99.

Fry’s Electronics also has a number of TV deals in its weekly ad, and the products are available almost immediately for free in-store pickup.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Career Q&A: How Do I Ask to Work From Home?

Seth Fiegerman — Fri, 03 Feb 2012 10:38:00 -0500

NEW YORK (MainStreet) — Q: How should I go about asking my boss to let me work from home one or two days a week?

A: Millions of Americans telecommute for work each year, but whether or not you will be allowed to do it depends on the industry you work in, your reputation at the office and your ability to convince your boss that it’s worthwhile.

Those who work jobs that absolutely require them to be there in the flesh every day – whether it be construction or management – will probably have a tough time making the case to telecommute. However, even if you work at an Internet startup or another industry that’s more conducive to working remotely, there’s no guarantee that you’ll be approved to work from home.

“You should get some preliminary information about whether other people in your company have done it and whether it’s working out,” says John A. Challenger, CEO of Challenger Gray & Christmas, a career research firm. If not, chances are your employer won’t be willing to make an exception for you.

From there, it’s important to be honest about how you’re perceived in the office. “If your boss sees you as disorganized and not very self-starting, or if you’ve made mistakes in the past that make you seem less reliable, he may be concerned about your autonomy working from home,” he says. If that’s the case, your best bet is to improve your work performance for several months before approaching your boss about the prospect of telecommuting.

Assuming others telecommute in your office and you do feel confident that your boss knows you’re a hard worker, the trick is to convince him or her that you’ll continue to be a hard worker from home.

“You have to think about what your boss’s concerns might be and think through how to reassure him that what you’re proposing is to everyone’s benefit,” Challenger says. For that reason, he recommends trying some of the following talking points to sweeten the deal:

- Offer to work from home on a trial basis to determine if it’s the best strategy for you and the company.

- Mention that you’ll be available earlier in the day or later at night as needed because you won’t need to commute.

- Highlight your office setup at home, specifically your good Internet and phone coverage.

- Explain how it will improve the quality and quantity of your work.

- Be willing to give up something in exchange if necessary.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

The Social Swipe: How Credit Cards Are Using Social Media

Jeanine Skowronski — Fri, 03 Feb 2012 07:00:00 -0500

NEW YORK (MainStreet) — Social media has played a major part in company advertising campaigns and customer service initiatives during the past few years, and 2011 saw several credit card issuers using these networks as product enhancements.

American Express (Stock Quote: AXP) launched its “Link, Like, Love” service – which offers discounts and experiences to cardholders based on their “likes,” interests and social media connections – back in July and followed it up with the Gift Chain in November. This promotion allowed cardholders to earn prizes off of holiday gift purchases that could be shared, in certain instances, with their Facebook friends.)

Earlier this year, Citi (Stock Quote:C) launched a Facebook application allowing cardholders to pool rewards points and put them toward a common goal, such as a family trip or a large charitable donation.

Experts say these promotions will proliferate throughout 2012 since they offer many opportunities that traditional advertising campaigns do not.

“Issuers are going to devote more of their marketing budgets and resources to social media campaigns because they are more cost effective and more easily tracked,” says Curtis Arnold, founder of CardRatings.com. “They allow companies to engage directly with customers and get instantaneous feedback.”

Major issuers acknowledge that social media has become an active part of their business model, but insist their efforts are concentrated in providing a better experience for existing cardholders.

“Acquiring new customers is not the objective of our social media strategy,” says Laura Rossi, a spokeswoman for Chase. “Our social media strategies are designed to build a sense of community and to facilitate interactions with the Chase card brands customers are passionate about.”

While the issuers we spoke with refrained from sharing their next big social media campaigns, they did say more social is on the way in 2012.

“Look for us to continue to roll out a series of never-before innovations in the space that bring even more value to our [card members] and merchants,” says Leslie Berland, senior vice president of digital partnerships and development at American Express.

Ben Woolsey, director of marketing and consumer research with CreditCards.com, expects these promotions to move onto mobile channels as issuers look to capitalize on partnerships they have with wireless providers.
“You’re going to see more apps,” Arnold says.

Customers should also expect Facebook to continue to be a major player.

“These initiatives are a clever way to extrapolate engagement with the brand from someone's familiar social network,” says Robin Carey with SocialMediaToday.com. “Think of it as ‘friends-and-family’ marketing in the Facebook era. Look for more ways that Facebook will become the de facto medium for incentives and social reinforcement.”

As these promotions proliferate, here’s what you should know before participating in them.

It’s All About the Fine Print

Credit card agreements have become known for what’s buried in the fine print, but Arnold says the campaigns that he has seen thus far seem to provide strong incentives for cardholders.

“These campaigns don’t have a downside in terms of the ‘gotchas,’’’ Arnold says, but that doesn’t mean you don’t need to read through their user agreements, he adds.

You should also make sure to check the company’s privacy policy before registering for a promotion that requires you to share personal data.

“Make sure you know where the information is going to go,” says Adam Levin, chairman and founder of Identity Theft 911. You also will want to check if the company intends on sharing anything – whether it’s your email address or your spending data – with anyone else you wouldn’t otherwise want them to share it with.

Take Proper Security Precautions

Anytime you enter your personal information online, including your credit card number, you run the risk of having that information compromised.

To minimize the chance of fraud, Levin suggest making sure you only enter information into encrypted websites, which can be determined by the https:// at the start of a URL or by a small lock at the top of the Web page.
You should also refrain from clicking on links inside the body of the email, Levin says, since hackers are known to send emails under the guise of a legitimate company in an attempt to get people to download malware onto their computers.

Instead, he suggests going to the company website directly to sign up for the promotion. Once you are registered, make sure to check your credit card statements regularly for the campaign’s duration. That way, you can catch any fraudulent charges as soon as they occur, should an actual hack take place.

A Free Sweepstakes Isn’t Always Free

According to Woolsey, the Internal Revenue Service requires taxpayers to report prizes totaling $600 or more when they file their taxes.

Luckily, he says that most social media promotions mirror credit card rewards programs, which are essentially billed as a rebate and are not going to require you to pay taxes on the rewards at the end of the year.

“It’s the structure of the promotion that matters,” he says.

As such, consumers should be aware that a social media sweepstakes that involves, for example, raffling off a free car to one person who “likes” a Facebook page, will require taxes to be paid on the prize.

You can find additional information on what to do should an online data breach occur in this MainStreet article.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

10 Valentine’s Day Gifts Women Will Love

Kristin Colella — Fri, 03 Feb 2012 07:00:00 -0500

Jewelry may be what the ads tell you to give your sweetheart on Feb. 14, but there are other options that may be more appropriate and personal for the special woman in your life.

Details Emerge on White House Housing Plan

Brian O'Connell — Thu, 02 Feb 2012 17:30:00 -0500

NEW YORK (MainStreet) – President Obama's plan to allow struggling homeowners to get back on their feet is taking shape. Some key cornerstones of that plan would allow consumers with poor credit and big mortgage debts to refinance their homes.

The president got into some of the specifics of the plan in a speech yesterday in Falls Church, Va., during which he told the audience that the government “can’t wait” to address the housing crisis. He says the idea is to help homeowners and hold financial services companies accountable for how they treat mortgage holders.

“Already, we’ve set up a special task force, as I’ve asked my attorney general to investigate the kind of activity banks took when they packaged and sold risky mortgages,” President Obama said in his speech. “And that task force is ramping up its work as we speak. We’re going to keep at it and hold people who broke the law accountable and help restore confidence in the market. We’re going to speed assistance to homeowners. And we’re going to turn the page on an era of recklessness that hurt so many hardworking Americans.”

The White House also released a fact sheet with more details on the plan, which the White House calls a “blueprint for an America built to last.” It claims to use a “broad range of tools” to assist U.S. homeowners, and here are some key points:

The $3,000 Refinancing Provision

As long as homeowners are current on their mortgages, they qualify for a special government-backed mortgage refinancing plan that the White House says should help homeowners save, on average, $3,000 per year thanks to lower interest rates.

A Homeowner’s 'Bill of Rights'

The president’s plan guarantees a “single set of standards” to support U.S. homeowners, including access to a simple, streamlined mortgage disclosure form, full disclosure on mortgage fees and penalties, and built-in protection against unfair foreclosure practices.

Turning Foreclosures into Rentals

The plan seeks to stabilize neighborhood home values by turning foreclosed properties into rental units, with the government buying up the properties and then renting them out.

Increased Forbearance

The White House has asked banks to provide up to 12 extra months of home mortgage forbearance (basically “sidelining” mortgage payments) for unemployed homeowners, so they stand a better chance of keeping their homes.

Beef Up HAMP

The plan throws more financial resources into the federal government’s home modification program and foreclosure reduction program. It pretty much guarantees low-cost refinancing, even for homeowners with bad credit (a FICO core of 580 still gets a homeowner a refinancing deal). Homeowners with mortgages less than $729,750 qualify for the program.

The president says the plan is just the right antidote to help homeowners to get back on their feet. “[Our plan] will help millions of responsible homeowners who make their payments on time but find themselves trapped under falling values or wrapped in red tape," the president said.

But will banks and Congress go along? That’s the next step, and it’s unclear whether they will go along with the plan. Some are already saying that it’s time the government gets out of the way and lets the private sector fix the mortgage mess.

"Until the president gives up his crusade to increase the government's interference in the housing market, home foreclosures will continue to rise, our economy will continue to falter and every American's share of the national debt will continue to grow,” says Rep. Scott Garrett (R-N.J.), chairman of the House GSE and Capital Markets subcommittee.

Trouble in the housing sector has acted as a brake on the economy for five years now, but here are a few economic indicators that suggest the recovery might be under way.

Where the Long-Term Unemployment Crisis Is Worst

Seth Fiegerman — Thu, 02 Feb 2012 17:02:00 -0500

NEW YORK (MainStreet) — Although the unemployment rate is improving nationwide, certain regions still face the very real prospect of having a sizeable number of their unemployed left behind by the labor market.

In the Southeast, where states like Florida were among the hardest hit by the housing bubble, 37.6% of the unemployed had been without work for six months or longer as of the fourth quarter of 2011, according to an analysis of data from the Bureau of Labor Statistics by the Pew Fiscal Analysis Initiative. Likewise, more than 35% of the unemployed in the Great Lakes region and 34% of the unemployed on the West Coast had been without work for this long.

For each of these three regions, that means more than 3% of the total labor force now qualifies as being among the long-term unemployed, and even that may be a low estimate. As MainStreet has previously reported, many discouraged workers across the country have dropped out of the labor market after failing to find work for too long and are not counted in this unemployment data.

The danger of being out of the workforce for so long is that those workers will be less competitive for jobs in the labor market as their skills become less relevant to new jobs and potential employers grow wary of the long gap since their last job. States in these regions may also experience a greater drain on their resources due to lost tax revenue and the need to support these long-term jobless workers with unemployment benefits and other resources.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

What You Need to Know About Credit Union Credit Cards

Jeanine Skowronski — Thu, 02 Feb 2012 16:30:09 -0500

NEW YORK (MainStreet) — More than 600,000 people moved their bank accounts to a local credit union following November’s Bank Transfer Day in an attempt to escape fees and find better interest rates. But what about credit card accounts?

According to Tim Chen, CEO of NerdWallet, who closely monitors the credit union sector, people definitely get a better shot at a low interest rate when they apply for a card backed by a credit union.

“The rates are better and your [credit] score doesn’t have to be perfect,” he says.

Atlanta-based Associated Credit Union, for example, offers a Visa Platinum Preferred credit card with a fixed 9.9% annual percentage rate to members with a FICO score higher than 680 and a fixed 12% APR to members with a FICO score of 600 or higher.

Chen notes that credit unions are also more open to working with local customers than big banks tend to be so even those who don’t meet their standard underwriting guidelines may be able to secure a card with favorable terms and conditions. The varying rates can make it hard to compare one credit union to another, but are still generally much lower and less stringent than what is being offered at big banks.

Of course, there is also a trade-off, and credit union cardholders may have to make a few adjustments in how they manage their accounts.

“Most national banks have 24-hour customer service,” Chen says. “You may not find that at some of these smaller credit unions.”

Additionally, it may require a bit more legwork to obtain the credit card since credit unions, by design, only lend to their own members.

But while small local unions may only let nearby residents apply, larger ones have “back doors” that allow almost everyone to join. The Pentagon Federal Credit Union, for instance, allows anyone to join if they make a one-time $15-$20 donation to one of the nonprofit organizations associated with it.

Most members will find the legwork worth it.

“They tend to have more of a mom and pop feel,” he says. “Members say they receive great customer service.”

Want to find out more about what new credit union members have to say about their experience? Read our article on where Bank Transfer Day participants are now.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

The Biggest Benefit Users Can Get From Facebook IPO: Better Security

Matt Brownell — Thu, 02 Feb 2012 16:10:39 -0500

NEW YORK (MainStreet) – Facebook connects close to a billion people around the world, so it’s no surprise that it has become a target for scammers looking to spread their malware and malicious links. While Facebook has long fought a sometimes losing battle to keep the site free of scams, there are hints that its initial public offering will bring a renewed focus on protecting users from those security threats.

“Now it will have to continually alert the public about anything that could have a material impact on its profitability… The good news is the additional oversight and pressure should result in a safer, more secure and privacy-aware Facebook,” writes Sophos security researcher Chester Wisniewski on the security firm’s blog.

In its 202-page S-1 filing Wednesday, the social network lists numerous potential threats to its business, including a shrinking user base, loss of advertisers, government censorship abroad, unfavorable media coverage and even the potential for a breakdown of its lucrative relationship with social gaming company Zynga. Among those risk factors, one in particular stood out: “Computer malware, viruses, hacking and phishing attacks, and spamming could harm our business and results of operations.”

The company concedes in its filing that malware attacks have taken place in the past, will likely take place again, and could harm both the company’s systems and its standing with users in the future.

“Any failure to maintain performance, reliability, security, and availability of our products and technical infrastructure to the satisfaction of our users may harm our reputation and our ability to retain existing users and attract new users,” reads the filing. “In addition, spammers attempt to use our products to send targeted and untargeted spam messages to users, which may embarrass or annoy users and make Facebook less user-friendly.”

Facebook even concedes that it can’t defend against all spammers. Still, it’s heartening to see Facebook acknowledge the problem, and could suggest that the new scrutiny that comes with being a publicly-traded company could encourage it to take the problem more seriously.

Indeed, there are signs that Facebook was already starting to get tougher on security threats in the months leading up to the IPO announcement. Back in October, network security firm Websense announced a partnership with Facebook to provide a system to warn users when they are about to follow a malicious link. And Facebook continues to file lawsuits against various marketing firms that it accuses of spamming users.

While such actions made good business sense even for a private company, Facebook’s new public face means that it’s under more pressure than ever to keep its users safe and secure.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Why Weak Credit Won’t Kill a Car Loan

Jeff Brown — Thu, 02 Feb 2012 15:03:25 -0500

NEW YORK (MainStreet) – Most borrowers know that imperfect credit can kill one’s chances of getting an affordable mortgage, but a good car loan may still be within reach.

That’s worth remembering as more drivers head to the showroom. Kelley Blue Book expects that when the final numbers are in, January’s sales will beat sales the same time last year by 10%. KBB credits slight improvements in the economy, a dip in unemployment, and Americans’ growing need to replace vehicles after postponing purchases when the economy was weak.

Happily, car-loan rates are pretty attractive, with four-year new-car loans averaging just 4%, according to the BankingMyWay.com survey.

Of course, mortgage rates are enticing, too, but many borrowers can’t get the advertised deals because of credit flaws, and can’t afford the bigger payments from the higher rates charged less-than-perfect applicants. But higher car loan rates aren’t as harmful for three key reasons.

First of all, auto loans are for smaller sums than mortgages – $20,000 instead of $200,000, for example – so interest charges are easier to bear, even at higher rates.

Second, auto loans typically run from three to five years, while most mortgages last for 30. Put simply, a higher rate won’t hurt you as much if you won’t be stuck with it for very long.

Third, because the vehicle loan will be paid off in just a few years, a big chunk of every payment goes to the principal balance, leaving a smaller portion of the payment to be subject to the interest rate.

On a four-year $20,000 car loan at 4%, payments would be $452 a month. In the first month, only $67 of that payment would be interest, or 15%.

Compare that to a 30-year, $200,000 mortgage at 4%. The payment would be $955 a month, with $667 going to interest in the first month, 70% of the total.

Now let’s look at what would happen to a borrower who had to pay 6% on each loan because of weak credit.

The mortgage payment would jump to $1,200 a month, with $1,000 going to interest. That jump could push the loan out of reach. Even if it didn’t, the borrower might not want to bear the long-term cost. At 6%, interest would come to $232,000 throughout 30 years, compared to $144,000 with the 4% loan.

But all of those numbers are more manageable on the car loan. Raising the rate to 6% from 4% would boost the payment a mere $18, to $470 from $452. Total interest over the loan’s four-year life would be $2,546, compared to $1,676 at 4%.

So how much does your credit rating affect the car loan rates you can expect? A recent survey by Edmunds.com, the car-data firm, found that a borrower with a credit rating of 720 or higher could get a four-year loan at 3.65%, while an applicant with a 630 to 669 rating would pay about 8%.

Clearly, it’s better to have a flawless credit history. But if you don’t, a new car may be within reach anyway.

Looking to buy a new set of wheels? Here’s what you need to know before making a purchase!

How Your Credit Card Can Make Valentine’s Day Cheaper

Jeanine Skowronski — Thu, 02 Feb 2012 14:56:03 -0500

NEW YORK (MainStreet) — You already know you can use your credit card to buy your Valentine a heartfelt gift, but you might not realize it can also help you save a few dollars on the holiday in the long run.

Issuers are known to offer deep discounts and additional cash-back bonuses on popular Valentine’s Day items in their bonus point malls as Feb. 14 approaches. Here are a few of the better ones to consider.

Flowers

Discover (Stock Quote: DFS) is offering 20% cash back at 1-800-Flowers, FTD.com, ProFlowers and Teleflora through its ShopDiscover service, while Citi (Stock Quote: C) is offering 15% cash back at KaBloom through its Citi Bonus Cash Center. Citi also has coupon codes available with FTD Florist that sweeten the 10% cash back cardholders can take advantage of in the bonus center. This includes $5 off on an order of red roses bought before Feb. 12.

Meanwhile, Chase (Stock Quote: JPM) is offering 15 extra points per dollar spent at ProFlowers and KaBloom in their Ultimate Rewards Mall.

Candy

Chase is offering rewards cardholders seven extra points per dollar spent on Godiva products and is providing a coupon code that entitles them to $10 off an order of $60 or more over at Ultimate Rewards. Citi is also featuring the coupon and offering 5% cash back on Godiva purchases through its Bonus Center. Citi cardholders can also get 6% cash back on purchases from Harry & David, plus an additional 20% off purchases using a coupon code. Bank of America (Stock Quote: BAC) is offering seven points back on each dollar spent at Ghirardelli in its WorldPoints Mall.

ShopDiscover is offering 20% cash back at 1-800-Baskets for cardholders looking to give chocolates, cookies or other assorted gifts. If your Valentine has an affinity for both chocolate-covered strawberries and charity, American Express (Stock Quote: AXP) is letting cardholders earn 12% back on purchases at Shari’s Berries, which will be donated to the United Way through its Deal Center.

Wining and Dining

ShopDiscover has another 20% cash back promotion going on with Restaurants.com, which is known for its attractive discounts available at local restaurants. Cardholders can also get 15% cash back on purchases from Wine Enthusiast, so if you’re heading to a BYO, you’ll be all set.

Chase is offering 12 points per dollar spent on Restaurant.com purchases in the Ultimate Rewards Mall. Citi cardholders can get 12% cash back on Restaurant.com purchases and 8% cash back on Zagat Wine purchases through its bonus center.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Tax Tip: Document Your Special Tax Situations

Robert D. Flach — Thu, 02 Feb 2012 14:40:59 -0500

Editor’s Note: This article is part of our 2012 Tax Tips series. Robert Flach is an expert with almost 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.

NEW YORK (MainStreet) – There’s a lot more to tax filing than totaling up your wages and taxes paid, so if any of the following situations apply, make sure you provide your tax preparer with all of the necessary documentation.

You sold shares of stock or a mutual fund. Make sure you know the original cost and date of purchase of the shares that you sold. The information may be on your year-end statement you get from your broker. If you purchased shares via dividend reinvestment, you’ll need to know the amount of dividends that were reinvested each year. If you originally inherited the shares that you sold last year, know the number of shares inherited and the date of death of the person from whom they were inherited.

You sold real estate. Give your tax preparer the closing/settlement statements for both the purchase and sale of the property, plus the cost of capital improvements you made over the years.

You purchased real estate. Give your preparer the closing/settlement statement for the purchase of the property. For rental property, also provide the separate amounts of “assessed value” for land and improvements from the tax bill.

You refinanced a mortgage. Again, make sure you provide the closing/settlement statement for the refinance and the term of the new loan.

You received IRA distributions. You will need the year-end statements for all IRA accounts, which will be provided by the financial institution that manages the accounts.

You have dependents in college. Provide all Form 1098-Ts you received to reflect your tuition payments, the “burser’s reports” for the year (you may be able to print out a report from the college’s website), and the amounts paid for books and supplies.

You paid for child care. Make sure you have the name, address, Social Security or Employer Identification number, and the amount paid for all child care providers. Summer day camp costs qualify for the Child Care Credit.

You received a distribution from a pension plan. If you took any cash out of a retirement plan, whether or not you rolled over the distribution to an IRA, you will need documentation of the amounts and dates of the transaction.

You donated a car to charity. Give your tax preparer all the paperwork you received from the charity, especially the Form 1098-C, plus documentation of the original cost and date of purchase of the car.

You’re paying alimony. Make sure you have the Social Security number of your ex-spouse, the amount of alimony paid in the year, and any other required payments (i.e. health insurance premiums, real estate expenses) you made on behalf of your ex-spouse.

You purchased a car, truck, SUV, motorcycle or boat. For any major vehicle purchase, provide documentation of the amount of sales tax you paid.

You purchased an energy-efficient product for your home. Energy improvements are tax-deductible, so make sure you have the receipt for the item purchased and a Manufacturer’s Certification Statement. If you do not have a Manufacturer’s Certification Statement, go back to where you purchased the item and ask for one. You also may be able to download one from the manufacturer’s website.

If you’re filing your taxes for the first time this year, make sure to check out MainStreet’s Taxes 101: A Beginner’s Guide to Filing Your 1040!

How to Compare Bids for Remodeling

Zillow.com — Thu, 02 Feb 2012 14:00:00 -0500

By Leonard Baron

Choosing the right contractor is one of the most important decisions you’ll make in a home improvement project. Even the most gung-ho DIY-er has to call in a home professional sometimes. Although some homeowners may be tempted to go with the cheapest option, choosing a bid shouldn’t just depend on price. Here are some tips to help you through the process:

Take your time and plan ahead

With any major room renovation or remodel, you will need take several months for planning. Go to home improvement showrooms and stores, talk to contractors, architects and others who have done these improvements. Go to new home communities and see what their high dollar designers have selected as colors and types of cabinets, flooring, or countertops and take lots of pictures of the designs you love. Check out home decor sites and magazines and take notes on anything you like. Ultimately, this will help you form a visual of your remodeled space. When you know exactly what you want, you will be able to have better discussions with contractors and get realistic bids.

Note: Any remodeling you do will always cost more than you anticipate. While this can be due to unexpected problems, cost overruns also commonly occur because the homeowner changes his or her mind. This is the most important reason why you want to take the time to determine as close as possible what you want before you move forward.

Making improvements doesn't guarantee improved home value

Another important issue to realize is that while making improvements to your property may increase the home value, it probably will not increase the value as much as you spend on the improvements. For example, if you spend $50,000 on a kitchen, your home may not sell for $50,000 more. Check the cost vs. value for your remodel project in your area. Also, don’t make improvements if you are selling the property, let the new owner do those. Make major home improvements only if they are for your personal enjoyment as the continuing long-term owner of the home.

Get at least three bids

Time to get bids. Get at least three different reputable contractors to bid and have them detail the manufacturers of each product in their bids. The more specific their bids, (because you were more specific in your requirements), the less chance of disagreements and the higher chance you will stay within budget. Review the bids, if possible, with someone who is experienced in remodeling properties, perhaps someone who recently did a remodel. Make sure the contract has a time frame for completion and possible penalties for significant time overruns. Whatever you do, don’t rush to make decisions on the contractor you select.

Get references

Ask the contractors for names and numbers of references from their past five jobs and ask what the original project budget and final cost was. Call the references, ask questions, and if possible, go see some of the work. You should also check websites like the Better Business Bureau and state and local government sites to confirm the professionals are licensed and in good standing. Get a copy of their insurance and bonding information and fax it over to your insurance agent, lawyer or CPA to also help you review.

Know that costs can increase

A fixed cost contract is the optimal scenario, but if you change orders or possible issues arise, costs increase. You should also agree with the contractors on a payment schedule based on milestones of work being completed. There should be a hold-back amount, like the final 10-15 percent of the payment, for at least a week or two after all work is complete. This way you can closely review the work and you’ll still have some leverage if items need to be resolved.

Take the time

Again, take the time to properly specify the work you want done, put it in detailed writing, check out the past work of the contractor, verify their license, insurance and bonding information. Hopefully doing this will help you avoid significant changes and cost overruns.

Leonard Baron, MBA, CPA, is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including “Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate”, and loves kicking the tires of a good piece of dirt! See more at ProfessorBaron.com.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

4 Things to Do Instead of Watching the Super Bowl

Matt Brownell — Thu, 02 Feb 2012 13:27:18 -0500

NEW YORK (MainStreet) – Like 110 million of my fellow Americans, I will be spending my Sunday evening watching Super Bowl XLVI between the New England Patriots and the New York Giants. Still, that leaves another 200 million or so Americans that simply don’t care about the biggest sporting event of the year.

If you’ve decided to abstain from the Super Bowl, what should you do with yourself that night instead? We’re so glad you asked.

Find a Deal

While grocery stores will be teeming with last-minute shoppers picking up supplies for bean dip and buffalo wings, most other retailers will be largely devoid of customers. And if you don’t mind haggling, that gives you the perfect opportunity to get a great deal. As we explained earlier this week, deal-hunters would do well to visit stores during off-peak periods because salespeople and managers will have time to haggle with you. And with a third of the country parked in front of the TV, you can bet that any store that’s open on Sunday evening will be a virtual ghost town.

Meanwhile, a number of businesses are offering special Super Bowl promotions and deals. Even if you’re not a football fan, you can still take full advantage.

Have Dinner and a Movie

Online reservation service OpenTable sees reservations drop by 50% on Super Bowl Sunday versus other Sundays, which means that this is a great night to get into that restaurant that’s always too crowded (just stay clear of sports bars). Want to see a movie? Theaters see a similarly deep drop in attendance, so you and your date can enjoy a quiet theater and the best seats in the house.

Watch the Puppy Bowl

For the uninitiated, the Puppy Bowl consists of a bunch of puppies frolicking on a small “football field,” where they play with football-shaped toys. Puppies who poop on the field or participate in “Unnecessary ruff, ruff, ruff-ness,” are assessed penalties by the referee. This year is Puppy Bowl VIII, and for the first time we’ll get to see the Piggy Pep Squad. Get excited, people. The event starts at 3 p.m. EST on Sunday on Animal Planet, so technically you don’t have to skip the game to watch it. But it’s worth checking out either way.

Get a Good Night’s Sleep

Outplacement firm Challenger, Gray & Christmas identifies the Super Bowl as one the top productivity-sappers of the year, noting that revelers find it particularly difficult to show up to work on Monday morning after drinking heavily the night before. And a 2007 study by the Workforce Institute at Kronos estimated that 1.5 million people miss work the day after the Super Bowl and another 4.4 million are late to work. Take this as an opportunity for workplace advancement: Come into work the next day rested and ready to work, and you’ll present a nice contrast with your hungover or absent co-workers. While everyone else is making frequent trips to the bathroom and falling asleep at their desks, you’ll be impressing your boss with your chipper attitude and productive ways.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

3 Reasons to Like Facebook as a Business

Seth Fiegerman — Thu, 02 Feb 2012 13:05:00 -0500

NEW YORK (MainStreet) — Facebook’s decision to file for public offering effectively completed the social network’s transition from being a small startup to a true corporate powerhouse, but just because the website is a big business doesn’t mean it behaves like all the other big businesses out there.

Buried in the papers that the company filed Wednesday are several key data points that suggest that Facebook and its CEO aren’t as motivated by profit as many other companies. That may be a red flag for investors who are primarily concerned about profitability, but for the country as a whole, it should serve as a positive example that a public company can be successful and socially responsible at the same time.

Here are a few new reasons to like Facebook as a company:

Pays Taxes in Full

There’s no doubt that Facebook is rolling in dough at the moment, but it could potentially have even more money on hand if took advantage of more tax loopholes. As some have pointed out, the company’s filings show that it paid a corporate income tax of roughly 40% in both 2010 and 2011. Compare that to the many multi-billion dollar businesses that somehow manage to pay less than 5% on average per year in federal taxes. It’s a nice reminder that a business can be profitable and competitive without avoiding paying its fair share back to society.

A CEO Who Doesn’t Care Much About Money

We know, we know. Everyone cares about money on some level, especially someone as cutthroat as Facebook’s founder and CEO Mark Zuckerberg, who stands to make as much as $28 billion if the company’s market cap hits $100 billion. That said, consider two important facts: First, the company revealed in its filing that Zuckerberg will be paid a salary of just $1 a year (plus his share of the company’s stock). More tellingly, Zuckerberg has already signed a pledge organized by Warren Buffet and Bill Gates to give away his fortune to charity.

Products Are More Important Than Revenue

Zuckerberg included a letter in the filing that clearly laid out the company’s mission statement and showed where its priorities lie, one that will likely appeal to many young entrepreneurs today.

“Most great people care primarily about building and being a part of great things, but they also want to make money,” Zuckerberg wrote. “Simply put: we don't build services to make money; we make money to build better services.”

Once again, it’s probably not what investors want to hear, which is part of the reason why it makes us like the company that much more.

To all of this we would add one other fact that certainly isn’t new but is still worth noting: Facebook is an American company in the best sense of the term. It was started in the U.S., has since grown to have a global influence, but continues to create thousands of jobs at home – more than 200,000 jobs to be exact. In some ways, Facebook really is the polar opposite of a tech company like Apple, which is beloved for its products but occasionally criticized for its business practices. Facebook’s product – the social network – is criticized at times for its various privacy policy and design changes, but the company’s business practices deserve more fans.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerma@thestreet.com, or follow him on Twitter @sfiegerman.

Big-Spending Republicans Throw Cash at Super Tuesday

Alix Steel — Thu, 02 Feb 2012 12:59:44 -0500

GOP Presidential candidates continue their mudslinging campaigning by spending millions of dollars in Super Tuesday primary states.

Senators’ Bill Calls for Independent Study of Airport Scanners

ProPublica — Thu, 02 Feb 2012 12:30:00 -0500

By Michael Grabell

A group of five Republican and Democratic senators on the homeland security committee introduced a bill today that would require an independent health study of the X-ray body scanners used in airports nationwide.

We have been reporting on the cancer risk associated with the Transportation Security Administration’s scanners and on the expansion of X-ray equipment at the border, in prisons and on U.S. roads.

In addition to mandating a health study, the bill would also require the TSA to place larger signs in front of security lines advising airline passengers about the radiation and the option to have a physical pat-down instead.

"An independent study is needed to protect the public and to determine which technology is worthy of taxpayer dollars," said Sen. Susan Collins, the top Republican on the homeland security committee. "Surely passengers should be well informed of their screening options."

ProPublica is a nonprofit news organization that produces investigative journalism.

4 Super Bowl Deals for Non-Football Fans

Jason Notte — Thu, 02 Feb 2012 12:00:00 -0500

INDIANAPOLIS (MainStreet) -- The Super Bowl pricing at local supermarkets and electronics stores is great if you're stocking up for a big game party, but even better if you don't care the least bit about the New York Giants or New England Patriots.

Last year, according to Nielsen ratings, an estimated 162.9 million Americans watched part or all of the Green Bay Packers' victory over the Pittsburgh Steelers in Super Bowl XLV, with the National Retail Federation estimating they spent $10.1 billion on the game. This year, the NRF says average spending will soar to $11 billion. The average Super Bowl-related spending is expected to jump from $59.33 per person last year to $63.87 for this year's festivities.

Super Bowl sponsors would love a repeat performance and are shelling out to make it so. Sponsors including Anheuser-Busch InBev (Stock Quote: BUD), Toyota (Stock Quote: TM), GM (Stock Quote: GM), Pepsico's (Stock Quote: PEP) Frito-Lay and Teleflora are forking over $3.5 million per 30-second ad this year to jolt spending as retailers trim prices to lure shoppers before Super Bowl Sunday.

In some cases it's already working. About 15% of fans surveyed are already planning to host Super Bowl parties. Another 27.1% are attending them. The cost of all the snacks, drinks, apparel and even new televisions -- which the NRF says 5.1 million Americans are expected to buy for the Super Bowl this year -- can pile up like layers in bean dip.

All of that football-fueled spending is creating a much friendlier shopping experience for nonfans as well. We took a look at pregame Super Bowl spending and found savings everywhere from the nearest pizza place to the farthest airport. Even if consumers don't watch the game, their side can win in the end:

Pizza

Papa John's is the NFL's official pizza sponsor, but it doesn't discriminate. The company estimates that Americans will eat 30 million slices of pizza on Super Bowl Sunday alone, and not all of it will be from its own kitchens -- although it sends at least 50% more pizzas out the door on Super Bowl Sunday than on any of the other Sundays on the calendar and is willing to give out a whole bunch of those pies for free.

The pizza maker is running a website promotion that allows fans to guess the outcome of the Super Bowl coin toss. If the majority of voters are correct, those enrolled in the company's rewards program will get a free one-topping pie and two-liter Pepsi.

The 750,000 pizzas Papa John's expects to move Super Bowl Sunday is still short of its competitors at Domino's (Stock Quote: DPZ), which expects to sell 1.1 million to 1.2 million pizzas on game day at a 40% to 45% improvement over its typical Sunday output, according to Dominos.

Yum Brands' (Stock Quote: YUM) Pizza Hut, which took on Papa John's with pre-Super Bowl ads last year, also expects a 50% increase, roughly 1.2 million orders and 1.7 million pizzas cycling through its ovens from kickoff to the presentation of the Vince Lombardi Trophy. Their standing Super Bowl deal knocks the price of a large pizza with any toppings down to $10.

Flights

Ever fly on Super Bowl Sunday within an hour of kickoff? Absolutely fantastic.

Every negative perception you have of airlines suddenly fades away. Poor legroom? Just stretch out into the empty seat next to you. Need flight attendant attention? You and the other 20 people on your flight will have plenty of it.

Air traffic tends to descend to reasonable, almost Thanksgiving- and Christmas-Day-like levels of volume and comfort on Super Bowl Sunday, with airlines from Delta (Stock Quote: DAL) to Virgin American ferrying fewer flyers. JetBlue (Stock Quote: JBLU) isn't immune to the downtick, but gets its game face on by carrying the Super Bowl through DirecTV (Stock Quote: DTV), offering $1 beer, wine and mixed drinks and tossing in bags of Buffalo-wing-flavored pretzels.

Restaurants

If you think the friendly skies feel empty on Super Bowl Sunday, take a step into that restaurant everybody's been hyping up on Yelp or Chowhound for the last month.

Restaurants that don't rely heavily on hot wings, oversized beers and televisions or undersized server uniforms tend to miss out on the Super Bowl party. Restaurant reservation site OpenTable says Super Bowl Sunday reservations fall 50% from just about any other Sunday on the calendar.

It doesn't help that the game kicks off about a half-hour before most people are slated to sit down for their 7 p.m. reservations and ends sometime after the kitchen and waitstaff have glared the last straggling, coffee- or aperitif-nursing customers out the door. That fact alone, however, is no guarantee you'll get the table you want. Though there are still prime spots available for Feb. 5, it's still advisable to book immediately.

Televisions

Apparently, all those shoppers who sat around during the holiday season and let electronics sales fall 6%, according to NPD Group, were just waiting for the real deals.

The National Retail Federation says 5.1% of Super Bowl viewers plan to take in this year's game on a new television. Even if consumers choose to catch up on Downton Abbey instead of watching the action in Indianapolis, they can still get some great deals.

The price of an LCD high-definition television fell by an average of 6% in 2011, according to DisplaySearch. The market research group says those prices are just going to keep coming down in 2012 as LCD screens up to 50 inches fall below the $1,000 mark and screens larger than 60 inches go for $2,000 or less.

Embattled electronics retailer Best Buy (Stock Quote: BBY), for example, was offering a 32-inch Panasonic (Stock Quote: PC) Viera 720p LCD panel for $299.99 (down from $449.99) and a 60-inch 1080p panel from Sharp for $1,199.99 (down from $1,699.99) during a big game sale last week.

Sears (Stock Quote: SHLD), meanwhile, didn't let impending store shutdowns stop it from putting all Sony (Stock Quote: SNE) televisions on sale and offering free shipping on sets $799 and up. A 40-inch Sony 1080p LCD went out the door for $584.99. Plasma screens took a more precipitous price plunge, with a Panasonic Viera 50-inch 3D 1080p Plasma TV going for $1,239.99 (down from $2,000) and the 58-inch Samsung Touch of Color 1080p Plasma HDTV being sold for $1,299.99.

Two-Thirds of America Doesn’t Care About the Super Bowl

Jason Notte — Thu, 02 Feb 2012 11:00:13 -0500

INDIANAPOLIS (MainStreet) -- Super Bowl Sunday is a melange of full-contact sport, carpet-bombed advertising and pizza/wing/chip-fueled gluttony for the more than 110 U.S. million viewers who tune in. For the rest of the country, it's just Sunday.

The NFL, NBC (Stock Quote: CMCSA) and dozens of advertisers and retail outlets really want America to believe that the world grinds to a halt on Super Bowl Sunday and any activity that takes place after kickoff has to be of the towel-snapping, beer-quaffing, prop-betting, cheer-yelling variety. With the kind of money they're betting on the big game, they can't afford the alternative. NBC just joined Fox (Stock Quote: NWS) and ABC (Stock Quote: DIS) in renewing a broadcast deal with the NFL that will increase the league's TV revenue from $1.9 billion a year now to $3.1 billion in 2022. Advertisers, meanwhile, have dumped $1.7 million into Super Bowl ads during the past decade, according to Kantar Media.

It's tough to blame them for going all in. Super Bowl viewership jumped from an average of 97.4 million in 2008 to a record average of 111 million last year. But there are 313 million people in the United States, which means 65% of America was either just checking in on the Super Bowl every so often last year or avoiding it altogether. While it's borderline unthinkable to all the principals involved that a potential viewer would deign to miss American Idol artifact Kelly Clarkson sing the national anthem, Lady Gaga template Madonna do a jukebox medley of hits or the New England Patriots and the New York Giants play a game most casual observers swear they saw just a few years ago, there are going to be plenty of folks skipping out on the privilege.

The Super Bowl only seems ubiquitous, but is as easy to avoid as NBC on any given night. Though last year's game broadcast on Fox dominated the Feb. 5 prime-time schedule, millions of Americans opted for reruns of Undercover Boss on CBS, America's Funniest Home Videos on ABC and Who Do You Think You Are on NBC. The postgame for what was supposedly the most riveting Super Bowl in history ranked behind a ABC-sanitized version of Judd Apatow's Knocked Up -- the second-highest rated network broadcast during the Super Bowl broadcast -- in the eyes of several million viewers.

That's if they weren't checking out the Food Network's (Stock Quote: SNI) Worst Cooks In America or Showtime's Shameless. Those were the highest-rated nonsports cable shows last year and drew more than 3 million viewers combined away from the Super Bowl, according to Nielsen.

Even some of those capitalizing heavily on a Super Bowl windfall realize there's a much bigger picture than what's on one network on the first Sunday of February. The National Chicken Council gleefully projects 1.3 billion wings weighing 100 million pounds will be consumed during Super Bowl weekend. In the same breath they use to proclaim that 23% of all Super Bowl watchers will be chowing down on wings, they acknowledge that there are still about 200 million Americans who will not tune into the game.

"Chances are good that those people not watching the Patriots and Giants battle for the Lombardi Trophy on Feb. 5 will be at home eating their normal Sunday night dinner," says NCC Senior Vice President and Chief Economist Bill Roenigk. "Chances are very good that some other part of the bird is on their plates, too."

The chicken folk aren't being contrarian, they're just exercising both common and good business sense. As fervent as the Super Bowl's following sounds when a CouponCabin.com survey claims 23% of respondents would skip a vacation to see it, 21% would skip work and 20% would skip a wedding or family function, the larger percentage on the other side of those numbers tells something closer to the true story. Not only would a majority not take any of the aforementioned action, but that same survey found that 33% of men and 54% of women are OK with not seeing the game at all.

It's still a Sunday, after all, and for those who don't have to work that day it's one of only 52 Sundays they get a year to relax, hang out with friends or loved ones or do the things they actually love doing. If there's a restaurant you've been trying to get a table at for weeks, reservation site OpenTable says reservations on Super Bowl Sunday are roughly half that of the Sundays before and after, thanks to that 6:30 p.m. kickoff. If you prefer to travel, airlines note that traffic is much lighter on Super Bowl Sunday.

Want to go to the movies? The audience usually drops 65% to 75% on Super Bowl Sunday from the Saturday before and 50% to 70% from the last week for films that have been around a while, but studios and theaters still bring in millions the day of the Super Bowl. Folks at 2,500 theaters nationwide opted to see the Leighton Meester-driven Single White Female remake The Roommate instead of watching the Super Bowl last year. That decision scored $1.7 million for Screen Gems and led a Top 10 that included Oscar hopefuls The King's Speech ($1.4 million), True Grit ($629,000) and Black Swan ($608,000).

It's business as usual for Hollywood again this year, with at least seven films opening in broad or limited release on Super Bowl weekend. Even when she's on stage belting out the hits in Indy, Madonna will banking on some Super Bowl snubs as W.E. -- the film she directed about the affair between King Edward VIII and American divorcee Wallis Simpson -- opens in select cities.

All of those options are heresy in pockets of the country where football is a religion second only to services attended earlier that Sunday, but this is hardly an era in which sitting out the Super Bowl is tantamount to atheism. There are two full weeks of analysis and coverage before the big game that make even game day dilettantes aware that New England's Rob Gronkowski's ankle isn't 100% and that Eli Manning may be the best quarterback in his family if he wins on Sunday. That's followed by even more analysis and parade coverage in the week that follows and tons of speculation about whether a Giants loss costs Tom Coughlin a spot in football's Hall of Fame or if a Patriots win solidifies Wes Welker's status as the best short-yardage wide receiver in Super Bowl history.

With companies such as Volkswagen and Honda (Stock Quote: HMC) putting out their Super Bowl commercials well in advance of kickoff and ESPN going into NFL Draft mode almost immediately after the confetti drops, it isn't such a surprise that two-thirds of Americans tune out the Super Bowl. If anything, it's astonishing millions more don't join them.

As interested as people are or not in the actual game, many watch the Super Bowl just for the ads. And the ads you don't see are sometimes just as valuable for advertisers. Read more on MainStreet's For Super Bowl Advertisers, Rejection Doesn't Always Hurt!

Morning Deals: 35% Off Tax Prep

Matt Brownell — Thu, 02 Feb 2012 10:55:47 -0500

NEW YORK (MainStreet) – Deal website Offers.com has a deal for 35% off your choice of H&R Block online tax preparation services. The Basic version is marked down from $19.95 to $12.97, the Deluxe version is marked down from $29.95 to $19.47 and the Premium version is marked down from $49.95 to $32.47. The deal is only good through Feb. 12, so you have an incentive to start your taxes early.

Kraft is offering free “Macsurance Policies” – which are just coupons for free Mac and Cheese products – through its Facebook page. The coupons will be offered through the page every day at noon through March 4. You’ll have to like the Facebook page to participate, and there’s a limit of three coupons per person. The coupons will take 6-8 weeks to arrive, and expire July 31.

SlickDeals has a coupon code that gives you $10 off any online food order through Seamless Web that totals more than $10.01, which means you can get a basically free meal. The coupon is mah29fnaq and is valid through Friday. We haven’t had a chance to test the coupon. Remember to tip on the full price of the food.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

Get It for Less: TVs

Seth Fiegerman — Thu, 02 Feb 2012 09:02:00 -0500

Editor’s Note: This piece is part of an ongoing series called “Get It for Less” that will appear every week on MainStreet, so check back for more shopping tips on your favorite products.

NEW YORK (MainStreet) — The Super Bowl is just a few days away, which means that many Americans are about to make a mad dash to snag up chicken wings and new televisions. The wings may be cheap enough, but a nice new screen to watch the game on can be pretty pricey. Fortunately, this is one of the better times of the year to look for a deal.

“Historically, televisions do go on sale right before the Super Bowl because stores know that people are looking to buy them,” says Jeanette Pavini, savings expert with Coupons.com. Retailers like Sears and Best Buy are already offering football-related promotions on their televisions.

Here are a few other tips you can use this week and throughout the rest of the year to cut down on the cost of a new TV:

Don’t Be Afraid of an Open Box

It might sound counterintuitive, but if you’re looking for a deal, a television in an open box can be your best buy.

“Floor models, returns or TVs with cosmetic damages are inspected, repaired, repackaged and sold at a deep discount,” Pavini says. The big caveat, of course, is to make sure that the store will provide you with a warranty and the option to exchange it if you’re dissatisfied with it for any reason.

All you have to do is walk into the store and ask an employee if there are any open models on the floor.

Know the Best Time to Shop

While there are plenty of sales in the week leading up to the Super Bowl, this isn’t the only or even the best time of year to shop for televisions.

As MainStreet has reported before, new television models tend to arrive in stores around March and April, which causes retailers to cut the price of older models to make room. So if you do decide to hold off on buying a television this week, you may be able to find a good deal in the next month or so.

For those shopping online, television prices can actually fluctuate slightly by the time of the week as well. One report found that TVs are cheapest on Mondays and the most expensive on Fridays – the difference in price is roughly $20.

Research the Store’s Price Adjustment Policy

Before you purchase a television, take the time to research the retailer’s price-match guarantee.

“A lot of these stores do a 30-day price match. That way, if you do buy a television and see it later for less, you can go ahead and bring the receipt in for a price adjustment,” Pavini says. Even if you feel like you’re getting a great deal now, you should still have the option to save a little extra money if retailers do start slashing prices again in March to make way for new models.

Consider Buying Generic

Generic television models tend to be significantly cheaper than brand names, and oftentimes the differences in quality between these models is negligible. When in doubt though, Pavini urges shoppers to review the warranty information.

“The bottom line comes down to the warranty,” she says. “If the generic brand is offering an excellent warranty that is just as good as the name brands, you’re protected.”

Shop Online

As with most products, there are plenty of great deals you can find for televisions online. Amazon frequently advertises steep daily discounts on televisions and other electronics, as do websites like Overstock.com, DealNews.com, Slickdeals.net and many others. Oftentimes, shipping will be included or you can find a coupon code on sites like Coupons.com, which will waive the shipping charge. If you can’t get free shipping though, you may be better off shopping in the store.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com or follow him on Twitter @sfiegerman.

The States With the Best & Worst Minimum Wages

Greg Emerson — Thu, 02 Feb 2012 07:00:00 -0500

NEW YORK (MainStreet) – Let’s face it: We don’t have a free labor market in this country. But neither do 90% of the other countries in the world that enforce minimum wages on businesses to help keep food on the table of even the most unskilled of workers, according to the International Labor Organization.

In times of high unemployment, the question of whether the minimum wage helps or hurts the job situation inevitably finds its way into the public debate. And just as Americans are divided over the issue, so too are the states, which are given the freedom to set their own minimum wages, to an extent.

The federal minimum wage, currently set at $7.25 per hour, overrides any state that sets the bar lower, but only for workers in certain industries or for companies with at least $500,000 in annual volume.

As the map above shows, most states are in line with the federal government in determining the least amount of money that a worker should get paid for an hour of work. Five states (Alabama, Mississippi, South Carolina, Tennessee and Louisiana) defer to the feds by not setting their own minimum wages at all, but the rest cover a wide spectrum of hourly rates, from just more than $5 for the lowest to more than $9 for the highest.

Here we take a look at the four states that set minimum wages below the federal rate, and the six that pay the highest minimum hourly wages in the country.

4th Lowest Minimum Wage: Arkansas

With a minimum wage of $6.25 per hour, applicable only to businesses that employ four or more workers, Arkansas did not start out with the rare distinction of setting its wage floor lower than the federal government’s level. In fact, when it raised its rate from $5.15 to $6.25 in 2007, the move put its wage higher than the federal level for the following two years.

While the rate has remained unchanged since then, rising federal levels have overridden Arkansas’ perceived miserliness for at least a portion of the state's workforce. And though a low unemployment rate of 7.7% in December beat the national average of 8.5% at the time, the state’s 18.7% poverty rate in 2010 was 3.4 percentage points higher than the national average.

3rd Lowest Minimum Wage: Minnesota

At $6.15 per hour, Minnesota goes one step further than Arkansas with its minimum wage, but the story doesn’t end there. Minnesota is one of just three states (along with Oklahoma and Montana) that maintain a two-tiered minimum wage. The $6.15 rate is applicable to businesses with annual receipts higher than $500,000 only; smaller enterprises have a wage floor of $5.25 in the state.

While the unemployment number is subject to a number of factors, minimum wages are part of that story. The situation in Minnesota beats the national level by 2.8 percentage points: The state had unemployment of only 5.7% in December. Combine that with a poverty rate of 11.5% in 2010 – 3.8 percentage points lower than the national average – and it appears as if Minnesota is doing rather well regardless of the levels it has chosen for its minimum wage.

Lowest Minimum Wage (tie): Wyoming, Georgia

For Georgia and Wyoming, a minimum wage of $5.15 per hour earns the distinction of the lowest on the books anywhere in the U.S. And while both states have the same idea about minimum compensation, the economic situation in the two is quite different.

Georgia’s 9.7% unemployment in December and 2010 poverty rate of 18% are both considerably higher than national averages, while Wyoming’s small population is quite a bit healthier in comparison. Wyoming’s 2010 poverty rate was one of the lowest in the nation at 11.4%, and its unemployment rate of 5.8% in December was also one of the best.

Next up: the highest minimum wages in the country.

5th Highest Minimum Wage (tie): Connecticut, Illinois, Nevada

A minimum wage of $8.25 per hour, $1 higher than the minimum the federal government thinks a worker in the U.S. should be paid, puts Connecticut, Illinois and Nevada higher than 45 other states in the ranking. And while this generosity has likely contributed to those states’ lower-than-average poverty levels in 2010 (Connecticut: 10.1%; Illinois: 13.8%; Nevada: 14.8%), the employment picture is not so rosy.

Connecticut’s 8.2% unemployment rate in December was the only one of the three to beat the national average of 8.5%, while Illinois posted unemployment of 9.8% that month and Nevada took the prize of worst-in-the-nation unemployment of 12.6% at the end of the year.

3rd Highest Minimum Wage: Vermont

Vermont has long been a leader in the national employment picture, posting one of the lowest unemployment rates in the nation for more than 10 years running. It has also raised its minimum wage, currently $8.46 per hour, nine times out of the past 12 years, and was paying its residents a minimum of $7.25 per hour, which became the federal rate in 2010, as far back as 2006.

With 12.4% of households at the poverty level in 2010 and an unemployment rate of just 5.1% in December, Vermont remains steadily ahead of the curve.

2nd Highest Minimum Wage: Oregon

While it can’t compete with Vermont on most financial metrics, Oregon’s $8.80 minimum hourly wage makes it the second most generous in the nation. After starting the new millennium with three straight years of a minimum wage of $6.50 per hour (during which time the federal rate was steady at $5.15), Oregon began yearly increases for every year except 2010, keeping ahead of any increase in the federal minimum wage.

Highest Minimum Wage: Washington

The only state to set its minimum wage higher than the $9 per hour mark is Washington, which at $9.04 per hour beats its neighbor to the south by almost a quarter. Even more impressive, Washington lawmakers have raised that minimum wage every year except one since 2001, despite average or higher-than-average unemployment during that time. Most recently, the unemployment rate in Washington was 8.5% in December, matching the national average for the month.

Washington has held the honor of the highest minimum wage ever since 2004, when the state took the crown from Alaska.

Greg Emerson is an editor/writer for MainStreet. You can reach him by email at greg.emerson [at] thestreet.com, or follow him on Twitter at @emersongreg.

The Best Budgeting Tip I Know

Seth Fiegerman — Thu, 02 Feb 2012 07:00:00 -0500

We asked nine of our favorite personal finance writers to offer up their favorite budgeting tips and strategies.

For Super Bowl Advertisers, Rejection Doesn’t Always Hurt

Matt Brownell — Wed, 01 Feb 2012 18:30:30 -0500

NEW YORK (MainStreet) – Getting rejected is no fun, whether in love, employment or college admissions. But getting your Super Bowl ad rejected by the network isn’t the worst thing in the world for a publicity-hungry company.

Internet users sometimes refer to this as the “Streisand Effect”: The idea that any attempt to censor information on the Internet inevitably leads to it being disseminated widely as users rush to get a taste of the forbidden fruit. The same phenomenon applies to advertising, especially in the Super Bowl: An ad that’s rejected by the network for failing to meet its standards of decency immediately becomes a big news story, and is inevitably viewed by thousands of Internet users eager to see what was deemed too hot for TV.

That’s a level of (mostly) free publicity that many businesses can’t refuse, and some companies will take advantage of this situation by submitting ads that they know will be rejected.

“This has been a trend for a while,” says Adam Hanft, CEO of marketing and branding firm Hanft Projects. “It’s a clever way for companies that don’t have a Super Bowl-worthy ad budget to get some attention.”

Consider, for instance, the 2011 ad for JesusHatesObama.com, or the cheaply made commercial for gay dating site ManCrunch.com, both of which were rejected by Fox for last year’s Super Bowl. While it’s not clear whether either site even had the money to fund a Super Bowl ad since neither chose to run a tamer ad, each got a decent bump of publicity from the controversies. JesusHatesObama.com got more than half a million views on YouTube, and ManCrunch.com was featured in major newspapers and discussed on The View. It’s as close a thing to free publicity as any company could hope for.

Even well-established businesses can see the value of the lucrative scarlet letter of network rejection. Web domain registry GoDaddy consistently airs racy advertisements during the Super Bowl, and Fox famously pulled the second airing of its 2005 Super Bowl ad, which made light of the “wardrobe malfunction” controversy of the 2004 Super Bowl. The company continued to test network censors in subsequent years; while GoDaddy spokeswoman Elizabeth Driscoll denies that the company ever submitted an ad that it knew would be rejected, she does says that GoDaddy needed 13 submissions before the network accepted its 2006 Super Bowl ad (attributing this to a “short leash” following the 2005 controversy).

So does kicking up a storm of controversy in this way actually pay dividends?

“It depends on the category [of company],” Hanft says. “Brands that are essentially transgressive to start with, when those are rejected, it reinforces what they stand for… [and] they thrive on the oxygen of the controversy.” Indeed, both JesusHatesObama.com and ManCrunch.com could reasonably claim that their ads were rejected on political grounds.

But the act may be starting to wear thin. As Ken Wheaton, manging editor of Ad Age notes, GoDaddy seems to have moved away from trying to gin up controversy. While the ads still rely on scantily clad women to sell domain names, Driscoll noted that there have been no issues with the networks for the past two years.

Meanwhile, cynical attempts to play the persecution card aren’t getting as much mileage as they did last year. Wheaton recently railed against TheBigAndTheBeautiful.com, a “plus-sized” dating site that put together an ad of questionable quality and then accused NBC of discriminating against larger women when it demanded the site re-work the commercial. But the company doesn’t seem to be getting as much mileage out of the controversy as it might have hoped. The commercial only has about 70,000 views on YouTube, and most viewers expressed dislike for it. Meanwhile, the major media outlets, apparently weary of such obvious public relations stunts, have given the site scant coverage.

Interestingly, these would-be advertisers are apparently losing column inches to the companies that are actually paying to run ads during the Super Bowl. It seems that as more companies release their ads in advance of the Super Bowl, the media now has real commercials to talk about in the run-up to the big game.

“Over the past two years you’ve been seeing companies extend the marketing window a couple weeks earlier, creating this huge hype and buzz,” Hanft says. “And this has pushed out the news window for these other stunts.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

What’s the Best Way to Get My Tax Refund?

Jeanine Skowronski — Wed, 01 Feb 2012 16:58:43 -0500

NEW YORK (MainStreet) — The number of ways to get your tax refund from the Internal Revenue Service has increased during the past few years. Here’s a look at the pros and cons of each option so you can find the right one for you.

Direct Deposit

Having your refund check deposited electronically into your checking or savings account certainly ranks among the most convenient ways to receive it. E-filers who elect to receive their refund checks via direct deposit should expect to receive it seven to 14 days after they have sent in their federal returns. “In past years, e-filing with direct deposit has worked efficiently,” says Michael M. Eisenberg, a certified public accountant with Eisenberg Financial Advisors.

Paper Checks

Not surprisingly, it will take longer to receive a paper check from the IRS, especially if you also opted to mail in your returns. (As MainStreet has previously reported, those who filed electronically and requested paper checks could wait up to three weeks to receive theirs, while those who mailed in their returns could wait up to six weeks, though two to four weeks is more typical.) But William Perez, a tax professional who writes for About.com, says checks that get lost in the mail are granted better protection by law than direct deposits that are done incorrectly. “That’s why it’s so important to have the account number [on your returns] checked by two or three pairs of eyes,” he says.

Prepaid Debit Cards

Major tax preparers H&R Block, TurboTax and Jackson Hewitt all give taxpayers the option of having their refund checks deposited directly onto a prepaid debit card. The debit cards are a good way for the unbanked to get access to their refund checks earlier, but each have some fees associated with them.

However, when prepaid cards are used correctly, these fees can be minimized and are still collectively cheaper than most cash-checking services, though Wal-Mart (Stock Quote: WMT) is currently charging flat $3 and $6 fees to cash checks.

Refund Anticipation Loans
These loans have been largely phased out due to the high costs associated with them, though they are still available at Jackson Hewitt. However, this will be the last year they are offered thanks to a recent FDIC settlement with Republic Bank, the last major financial institution left in the RAL business. (According to the National Consumer Law Center, Jackson Hewitt’s $1,500 RAL includes $61.22 in charges, which translates into an annual percentage rate of 149%.) As such, they should only be utilized by someone who truly can’t wait for the cash.
IRS Credit

If you got a refund but don’t need the cash right away, the IRS will hold on to it for you and let you apply it to next year’s tax return. “It’s called a credit elect,” Perez says. “It’s great for people who are self-employed.”

U.S. Savings Bond

In 2010, a feature was added to tax forms that allows you to designate part or all of your federal income tax refund to purchase paper U.S. savings bonds known as I-bonds – an option that allows taxpayers to collect interest on the money. Of course, “this is an investment product, so you’re not going to be able to take it to a bank and spend it the next day,” Perez says.

Looking to file your taxes without spending a dime? Discover your options in MainStreet’s Complete Guide to Free Tax Tools.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

Could Redbox Raise Prices Again?

Matt Brownell — Wed, 01 Feb 2012 16:09:42 -0500

NEW YORK (MainStreet) – The latest salvo in the struggle between movie studios and movie rental services like Netflix and Redbox was fired earlier this month, when Warner Brothers announced that those companies would have to wait 56 days after the release of a DVD before they could start offering it to customers. Previously, the companies had to wait 28 days before they could begin renting those DVDs.

Netflix agreed to the new delay. Redbox did not.

Redbox announced Tuesday that it had allowed its movie acquisition contract with the studio to run out, which means that the company will no longer be able to buy DVDs in bulk from Warner Brothers. But that doesn’t mean that Redbox customers will stop getting new releases from Warner Brothers – rather, it just means that the company will have to buy from a retailer or wholesale distributor.

The good news is that those releases will now be available the same day they’re released on DVD. The bad news is that by going through a middleman, Redbox will no longer get a discounted rate on those discs.

So if Redbox is paying a higher price to buy DVDs, does that mean they will be passing that cost along to you?

“I actually think there’s a chance that not much changes,” says Janney Capital Markets analyst Tony Wible. “Netflix agreed to the new terms, so by Redbox not agreeing to the delay, they have a chance to grab market share. Two months advance is a decent window, and they may be willing to take volume over price.”

While Netflix is agreeing to double the amount of time it makes its customers wait for new DVDs, Redbox is doing away with those delays altogether. If that allows them to steal enough customers from Netflix and cable video-on-demand services, it may not mind turning a smaller profit on each rental. (It’s also worth keeping in mind that Redbox just raised its prices by 20 cents in October, and may be wary of imposing another price hike on customers so soon.)

But even if Redbox does wind up hiking its prices slightly, it’s unlikely that it will make a big difference in sales.

“The demographic they go after, that’s not going to make it or break it,” says Shahid Khan, a former media industry consultant and now chairman of Mediamorph, a cloud computing software firm. “Most of the time it’s an impulse buy.” However, Khan says that if prices go too high customers may prefer to just stay home and spend the $5 or so that it costs to rent a new movie through video-on-demand.

For its part, Redbox did not confirm or deny that the termination of the Warner Brothers deal would bring any price hike; when reached for comment, a Redbox spokesperson would only say that the company “has not disclosed the impact of obtaining content through alternate means.”

Regardless of what happens with prices, the contrasting decisions are a good indicator of the diverging directions of the two services. While Redbox is doubling down on physical discs and branding itself as a go-to destination for new releases, Netflix is progressing toward all-digital distribution and de-emphasizing new releases.

“Netflix is saying they’re not going to be promoting their DVD business, and they’re also going to get hit with issues with the postal service,” Wible says. “Netflix is trading off a lucrative business today to be able to hopefully hold onto something with more lasting power.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

3 Ways to Pay Off Your Mortgage Faster – and One to Avoid

MoneyTalksNews — Wed, 01 Feb 2012 14:59:02 -0500

By Brandon Ballenger

We’ve already written tips on destroying debt this year, but we didn’t specifically cover the biggest debt many people ever face: their mortgage.

According to CNN, the current national average mortgage debt is $173,876. Now imagine if that were your nest egg instead – you’d be on your way to a good retirement. Is there any way to pay off that debt faster? As it turns out: yes. In the video above, Money Talks News founder Stacy Johnson offers three ways to reach a mortgage payoff faster.

In a story on personal independence, Stacy once said, “While it may sound extreme to compare debt to slavery, in a sense that’s exactly what it is. Every debt you have is an invisible ball and chain.” If you’re ready to accelerate on your path to freedom, here are some ideas to do it…

1. Refinance to a shorter loan.

When it comes to any loan, the shorter the better, and mortgages are the prime example. Replacing a 30-year mortgage with a 15-year will save big bucks. For example, if you have a $200,000 mortgage at 5 percent, paying it over 30 years will result in a total interest tab of $186,511. But shortening the term to 15 years means total interest of just $84,685, for a savings of more than $100,000! Of course, that 15-year loan also comes with higher payments. The 15-year loan payment is nearly $1,600/month, while the 30-year is less than $1,100.

So if you can qualify and can afford the higher payment, get a shorter loan. Added benefit? The rates on 15-year mortgages are typically lower than those on 30-year loans. Whether this strategy is sound for you, however, comes down to what you can pay per month, and how much the switch will cost.

As a rule, housing expenses shouldn’t be more than a third of your take-home pay. And because the fees to refinance a mortgage can add up to thousands, just recouping those costs can take months – even years. So be sure to explore all closing costs and fees, and if a refinance still has appeal, before you start, learn to negotiate the best deal. And, of course, it always pays to shop around for the best rates, which is why we have a mortgage search tool.

2. Make extra payments.

Maybe you’ve gotten an offer to skip a loan payment before (on the mortgage, car, whatever) and wondered why the lender was being so nice. The answer, of course, is that they weren’t – you’re still going to pay it, probably with extra fees and interest on top. The best thing you can do with any loan is the exact opposite: pay extra.

There’s a popular program often offered by mortgage lenders that suggests you make your payments bi-weekly (every two weeks) rather than monthly. Since there are 26 two-week periods in a year, paying every two weeks equals making 13 monthly payments. That alone – making one extra monthly mortgage payment every year – will shorten a typical 30-year mortgage to 22 years, and potentially save tens of thousands of dollars over the life of the loan.

The problem with mortgage-company-sponsored bi-weekly plans, however, is that they often come with upfront fees attached: $325 is common. This is an insult. Provided there’s no prepayment penalty, you can always pay extra on your mortgage. Asking you to pay a fee to do something you can do free is despicable.

If you want to mimic the results of a bi-weekly payment program, simply add one-twelfth of a payment to your monthly checks. Just make sure the extra money is applied to principal rather than prepaying future payments.

3. Round up.

If money’s too tight to accelerate your payment schedule or squeeze out an extra payment every year, that’s OK. You can still get ahead by doing something you learned in grade school: rounding to the nearest whole figure. Say your payment is $954 a month – when you’re thinking of your monthly obligation, do you think of it as “nine hundred fifty-four” or “about a grand”? Commit that mental fudge to paper and you’ll thank yourself later.

Not to be repetitive, but make sure that extra money goes to principal – that’s where your cash makes the biggest dent in debt. Your bank might not automatically do it.

What not to do: Abuse home equity

Another option you may have heard of is money merge accounts, or MMAs. The basics: You get a home equity line of credit, or HELOC, by borrowing against the value of your house. This line of credit then essentially becomes the bank account you use to pay your bills (including your mortgage) and it’s where you deposit your income. Because interest is calculated differently on a HELOC than a standard mortgage – daily, instead of monthly – the people who pitch this product make it sound like this will aid in paying off your mortgage in record time. Of course, using this technique often requires expensive software to watch your MMA transactions and tell you how to time payments.

If using your home as collateral to pay for your home sounds convoluted and risky, that’s because it is – you could just as easily come out behind as ahead with bad timing or spending more than you bring in. Without discipline and careful planning, you could ultimately lose your home by failing to repay or refinance the loan in time. And it’s not clear that this method will save you much money, as Stacy explains in Should I Buy a Mortgage Acceleration Program?

Bottom line: Getting ahead on your mortgage is a great idea, and possible even if you don’t have much extra income. Some methods are more complicated or expensive up front than others, while other overhyped strategies just don’t make sense. But one thing that always makes sense is an expression Stacy coined for his book Life or Debt:

Forget what the lender says. The only minimum payment that ever makes sense is the maximum you can afford.

For more on tackling debts big and small, check out Resolutions 2012: 4 Steps to Destroy Debt.

9 Money Lessons Financial Experts Teach Their Kids

LearnVest — Wed, 01 Feb 2012 13:30:00 -0500

By Cheryl Lock for LearnVest

For more about how financial experts educate their children about money, visit LearnVest.com.

We go to great lengths to teach our kids about money.

We know the importance of setting them up with savings accounts, introducing them to the idea of charitable giving and teaching them good and bad ways to use credit cards.

Still, we’re always interested in how other people teach their kids good money habits … especially when those people are financial experts.

So we asked a whole bunch: Ranging from LearnVest experts, who are there to help you create a financial plan that works for yo u any day of the week, to other CFPs® out in the field, to be sure we turned up all of the best tricks for raising financially-savvy children.

Here are the most valuable lessons they’ve put in practice with their own families. Read and learn.

1. You Have to Earn to Spend

I have two college-aged kids and one who is a senior in high school, and I’m really into having them budget. I give them a monthly allowance at college that covers the basics, but they have to earn money to pay for anything extra. I’ve never made them work, but in order to have money to spend, they’ve chosen to … even at McDonald’s. Teaching kids the value of a dollar is important: I’ve also taken my son shopping and when he really wanted a particular shirt, I suggested he buy it himself. Surprise! He didn’t want it as much then. —Cindy Golub, principal with G-Squared Advisory and LearnVest advisor

2. Money Is About Making Choices

Since my daughter is only 4, it’s difficult to teach finance in terms she can understand. She has offered to buy her babysitter a car (it’s going to be red) and a house (she needs more bedrooms). It’s sweet and unselfish, but a little on the impractical side. So now we’re teaching her about waste, and why we buy one thing instead of many when we’re at the store. We instill in her the idea that there are choices to make to live a healthy financial life, rather than “having it all.” —Amy Banker, Director of Client Services at retirement planning firm

3. Delaying Gratifications Can Pay Off

We helped our son relate the idea of earning money for doing specific tasks or goals by paying him for extra chores he did around the house. So for example, we would have him scoop dog poop for $0.50 per pile. He got smart and figured out that if he waited a week, then he’d have more to scoop, and he’d get a bigger payout. Gross, but it worked. —Brian Tinker, CFP® with Penniall & Associates

Check out this story for more about how (or whether) to give your kids an allowance.

4. Count Your Blessings (Literally!)

We had some talks with our 3-year-old around Christmas about what Toys for Tots really does, and the fact that he helped make a child’s holiday by donating a toy. My wife put all his gifts on the dining room table to show him just how many he got from his family, and that he should understand how lucky he is, because not every kid out there is as fortunate. —Daniel D’Ordine, CFP® with DDO Advisory Services, LLC

5. Keep Innovating

My 5-year-old son Nolan loves making stands to sell things. One day he decided to try to sell his artwork. When he noticed people walking by without buying, he went into the pantry and started putting his favorite snacks into baggies to sell with the artwork. When that still didn’t work, Nolan didn’t get discouraged. We sat down and talked, and I asked him how he thought he could make his business better next time. He came up with the idea that next time he should place his stand right on the sidewalk, as opposed to more in the driveway where it was before. That way people couldn’t walk by without seeing what he was selling. Sometimes being an entrepreneur requires a little outside-the-box thinking. — Michael J. Keating, CFP®, Managing Partner with InnerHarbor Advisors, LLC

6. Work for What You Want, and It Will Mean More

A couple of years ago, my younger daughter, who was 10 at the time, asked for a guitar. We talked about it and decided that to earn it she would pick out some of the toys and books she no longer used and have a yard sale to earn the money for the guitar. She did it, enjoyed the preparation for the yard sale and made enough to buy the guitar, which made her feel really good about getting it. — Zelijka Kulusic, CFP® and MBA student at NYU

7. Even the Young Can Invest

I think 13 is a great age to start teaching kids about stocks—they should be old enough by then to grasp a lot of the concepts. My son opened his first account when he was 13, and my daughter, who is 12, will be opening one soon. I had each of them pick one or two companies that make a product or service that is of interest to them. For example, my son has several Apple devices and really enjoys using them, so I opened a brokerage account for him using his money, and we bought a couple of shares of Apple. Every time the statement comes in, we sit down and review the account and discuss the company, and I answer any questions that he has. This is a great way for him to learn how to select and evaluate companies, as well as get familiar with basic financial concepts, all while having fun with something he is interested in. —Mark J. Feldman, CFP®, CLTC with Northwestern Mutual

8. Budgeting Is a Family Affair

We bring the kids into the discussion of how the family money will be spent and what the priorities are. My kids are now 13 and 16, but we have always talked to them about the fact that we save for retirement and for their college. We also talk about spending when it comes to vacations, home improvements, furniture, electronics and other things we want. They get to help decide if we are going somewhere for spring break, or what our summer plans will be.—Jalene Thompson Hahn, CFP® with Warren Ward Associates

9. A Little Goes a Long Way

I have three teenagers, and my kids often hear me talking to clients about the importance of an emergency fund. They have also been told numerous times about how expensive college is, and that they will want some spending money all their own. So each time they have made some money, we reiterate the importance of savings. My oldest son has recently gone off to college and has been so happy to find that he has a pot of money stored away that is all his own. My other two children have seen this and are further motivated to keep saving most of their earnings from any of their jobs to use when they are on their own. —Laurie Girsky, principal with G-Squared Advisory and LearnVest advisor

What do you do to teach your kids about money?

More From LearnVest

What’s the one thing all happy moms have in common? Find out.
Multitasking makes us unhappy. Here’s why.
Moms spend more hours doing this than dads do.

Banks Struggle to Resolve Complaints On Twitter

Brian O'Connell — Wed, 01 Feb 2012 13:11:52 -0500

NEW YORK (MainStreet) – Maybe it’s the 140-character limit, or the impersonality of social media; whatever the reason, a new study points out the apparently obvious: Twitter is no way to solve a customer service problem with your bank.

That conclusion was drawn by Javelin Research in a study titled “Banking and Social Media: Easy to Say, Hard to Do,” released last month.

The study examined customer service queries with Bank of America (Stock Quote: BAC), Citi (Stock Quote: C) and Wells Fargo (Stock Quote: WFC) via Twitter and found that the best of the three banks, Citi, was only able to satisfactorily answer 36% of Twitter queries from customers. Wells Fargo and Bank of America didn’t fare nearly as well, with 11% and 3% “satisfied” rates, respectively.

The study focused on a total of nearly 5,500 Twitter customer service responses during the week of November 4-8, 2011.

Admittedly, Javelin had its thumb on the scale a little bit. The San Francisco-based business analytical firm conducted its study on the three banks at a pivotal time – the week Bank of America announced the cancellation of its controversial $5 monthly debit card fee and when Bank Transfer Day was the talk of Main Street.

Still, as busy as bank customer service representatives were that week, the results just weren’t there on Twitter, Javelin reported.

“Confusion ensued as consumers were unsure which handles to access and too often received no response at all,” the study said.

A big part of the problem, the study suggests, is that customer service is a uniquely personal experience, and social media is not. Consequently, when a customer loses a debit card on a Friday night, getting a canned tweet on Saturday morning doesn’t do much for the customer’s piece of mind – or the bank’s credibility.

Banks primarily use Twitter to “hand off” problems to live customer service reps, likely leaving customers to wonder why they just didn’t pick up the phone or walk into a branch in the first place to solve a banking problem.

Still, Javelin does believe that banks, customers and Twitter can eventually enjoy a productive relationship – if banks figure out how to use the technology to satisfy their customers.

After all, Twitter has 100 million active users officially, and the company says it has 462 million users actually registered with a forecast of 500 million by March 2012.

As James Van Dyke, president of Javelin, said in a statement, “Social media is the next frontier for the financial institution and consumer relationship.”

Right now, though, that frontier resembles the wild, wild, west.

For more updates on the banking industry and social networks, visit MainStreet’s Banks and Social Media topic pages!

What Consumers Hate Most About Mortgages

Seth Fiegerman — Wed, 01 Feb 2012 12:40:00 -0500

NEW YORK (MainStreet) — If nothing else, the Consumer Financial Protection Bureau has served as a great avenue for consumers to vent their money problems in the hopes of getting them fixed.

The government agency received 13,210 complaints from consumers in the second half of 2011, more than 9,000 of which were about credit cards, according to data from the CFPB’s semi-annual operations report. Interestingly though, mortgages proved to be the second most popular cause for complaint among consumers, with 2,326 complaints filed.

The actual process of applying and signing for loans, which the CFPB addressed last year with a new set of forms, accounted for just shy of 15% of the mortgage complaints that the CFPB received. Many more complained about the process of paying down their loans.

As you can see in the chart above, more than a third of the complaints received had to do with customers who were no longer able to pay off their mortgages and tried to renegotiate the terms of the loan or else face the prospect of foreclosure. In some ways, this comes as little surprise given the sheer number of underwater homes and the difficulty many Americans have faced in convincing banks to modify their mortgages. Yet, it’s a testament to the fact that the agency needs to continue its efforts to regulate mortgage servicers and push for alternatives to foreclosure.

How to Be Your Own Debt Relief Counselor

Brian O'Connell — Wed, 01 Feb 2012 12:00:00 -0500

NEW YORK (MainStreet) – Even if headlines say it’s “getting better,” the U.S. consumer debt picture isn’t a pretty one.

ConsolidatedCredit.org has the numbers that prove the point:

The average American with a credit file is responsible for $16,635 in debt, excluding mortgages, according to the Experian Credit Reporting Bureau.
Total U.S. consumer debt (which includes credit card debt and non-credit card debt, but not mortgage debt) reached $2.43 trillion as of May 2011, according to the Federal Reserve's G.19 report on consumer credit from July 2011.
Total U.S. consumer revolving debt reached $793.1 billion as of May 2011. Approximately 98% of that debt was credit card debt, according to the Fed report.

If you’re among the consumer debt set, so much so that you need an action plan to pay off those debts, consider becoming your own debt relief counselor.

It’s going to take more time out of your schedule, and more elbow grease in developing and executing an action plan, but you can save hundreds and even thousands of dollars – and learn a lot about your own financial picture in the process. Here’s where to start:

Learn how to negotiate. To manage your own debt restructuring campaign, you’re going to have to learn how to be a good negotiator. Start by approaching a creditor and offering that creditor some money – even as little as 10% of your outstanding balance. You’ll need to get that done – most creditors won’t negotiate with you until you make at least a partial payment on your debt.

Be creative in sending debt payments. Always send a debt payment via money order. Avoid paying a debt with a check, credit card, or wire transfer, since those forms of payment give creditors all they need to get money from you directly in the event of a dispute.

Learn how to read a credit report. You’ll need to know the lingo of the credit reporting business, and that means learning how to make the most from your own credit report. For example, when looking at your debt status, look for terms like “fully paid” and "debt satisfied.” Those both work in your favor, but the term “debt still active”? Not so much.

Have an attorney on retainer. It might cost you several hundred dollars or more, but have a lawyer on retainer in case things get ugly and threats are made by your debt collecters. A good, experienced attorney can balance the table in your favor when the stuff hits the fan.

Ask for more. When negotiating a debt settlement, reach for all you can get. For instance, if a creditor offers no interest on payments for two months, ask for four months.

Even when you cut a deal and your creditor accepts partial payment on a bill, when that payment is made ask that the debt be shown as “fully paid” on your credit report. Chances are your creditor will likely go along with the request. But if you never ask, you’ll never get the “fully paid” treatment.

Being your own debt relief manager takes time and hard work. But if you handle the task correctly, the results are just as good as any professional debt service can provide.

Managing your debt goes hand-in-hand with building your credit, so take a look at MainStreet’s 8 Common Credit Myths Debunked to make sure you’re doing it right!

Morning Deals: 43% Off a Bouquet of Roses (Corrected)

Matt Brownell — Wed, 01 Feb 2012 10:40:48 -0500

Editor’s Note: The original version of this article incorrectly stated which subs are excluded from Subway’s “FebruAny” promotion. The Big Philly Cheesesteak and the Pastrami sub are excluded from the deal. MainStreet regrets the error.

NEW YORK (MainStreet) – Valentine’s Day is two weeks away, so it’s time to start thinking about gifts for the special person in your life. With that in mind, Google Offers has a deal today for two dozen roses from 1800Flowers.com for just $44.99, marked down from the usual price of $78.98. You get an assortment of different-colored roses, plus a glass vase. It ships for free, though there will be a surcharge of $9.99 if you want it delivered on the Saturday before Valentine’s Day. Shipping is still free on Valentine’s Day itself, though. The deal must be purchased by 8 a.m. EST Thursday morning, and once you get the deal, you’ll need to redeem it by Feb. 11. If you want the flowers delivered on Valentine’s Day, you need to place the order by 11:59 p.m. EST on Feb. 10.

If you’re one of the first 500 people to take this Facebook poll, you can receive a free Dust-Off brand portable screen cleaning kit for your phone, tablet or laptop. You’ll have to “like” the page first, then take the poll (which is three simple questions) and then fill in your mailing address. It appears that the 500-person cutoff hasn’t been reached yet, so hurry.

February heralds the return of “Februany” at Subway, in which every regular foot-long sub is just $5. The promotion lasts all month, and remember that we get an extra day of February this year because of leap year. Also, keep in mind that this promotion does not apply to special sandwiches like the Big Philly Cheesesteak and pastrami subs.

Don't want to spend too much? Check out our Deals & Steals hot topic for more bargains. Don't want to spend anything at all? There's plenty of Free Stuff to be had as well.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

5 Types of Super Bowl Ads You'll See This Year

Matt Brownell — Wed, 01 Feb 2012 07:00:00 -0500

NEW YORK (MainStreet) – Don’t get too excited about the ads that will be running during the Super Bowl this year. You’ve already seen most of them.

We don’t mean that all the advertisers will be running old commercials this year – the vast majority will indeed be new to the small screen. But they won’t exactly be original, either. Just think how many commercials you’ve seen featuring a man getting hit in the crotch or a dog doing something clever. And how many times have you seen Budweiser run an ad with horses, or Pepsi run one full of celebrities? Ad creators might be good at making us laugh (and buy), but they don’t exactly have a deep bag of tricks.

With that in mind, we reached out to some advertising experts to get their take on the clichés and commercial archetypes we can expect to see from advertisers this year at the big game. As you watch the game this Sunday, you might be surprised at how many of them fall into one of these categories.

The Low-Brow Ad

“There is a genre of advertising based on the insight that guys love gross-out humor,” says Mark DiMassimo, an advertising industry veteran who runs the marketing and branding agency DIGO. “They typically involve a sharp shot to the scrotum.”

Yes, the crotch shot is alive and well in the world of advertising, especially in ads for products that target young men – think snacks, soft drinks and light beer. For example, take this commercial from last year’s Super Bowl for Pepsi Max, a diet drink marketed to young men.

It should come as no surprise that such ads show up in abundance during the Super Bowl – while the big game obviously has a much broader audience than the typical football game, many of the companies that advertise during a sporting event are going to have young men in mind.

That’s also the motivation for a sub-category of the low-brow genre: the sexy ad, which usually involves a scantily clad woman or a strip-tease that’s just tame enough to get past network censors. Web domain registry GoDaddy is notorious for running such commercials every year, usually showing the beginning of the strip-tease and then encouraging viewers to visit the website to watch the rest of the allegedly x-rated video. If you’re gullible enough to fall for this one every year, there’s not much we can do to help you.

The Meta Ad

In a quirky bit of self-referential marketing, often advertisers will call attention to the notoriously high cost of Super Bowl ad buys by producing a meta-fictional ad that pokes fun at the idea of wasting all your money on a 30-second ad, all in the hopes of standing out from the crowd.

“Sometime you’ll see dot-coms and startups spend all, or the bulk of their advertising budget on a Super Bowl spot, praying for a big bang of awareness,” says DiMassimo, a phenomenon he calls the “Hail Mary.”

Don’t know what we’re talking about? Consider this famous ad for E-Trade that ran in 2000.

See what they did there? Of course, the cheaply produced (but costly to run) commercial was anything but a waste of money, as it became one of the more talked-about ads of the year.

Another meta Super Bowl commercial was this 2005 offering from FedEx, which used Burt Reynolds, a talking bear and cheerleaders to poke fun at Super Bowl advertising clichés.

Companies don’t go meta every year, and the joke would probably get strained if they did. But it’s usually amusing when they do.

The Emotional Connection

If there’s one thing you don’t see too often during the Super Bowl’s commercial breaks, it’s a straightforward advertisement that lists a product’s features and selling points. While selling a product is ostensibly the goal of any advertisement, any advertiser that went with a straight sales pitch for the Super Bowl spot would be slammed as uncreative and disappointing.

“In order to have a traditional commercial work, you need penetration and frequency,” says Bryan Del Monte, president of the Minnesota-based Del Monte Agency. “[In the Super Bowl] you don’t have frequency, so you’re looking to make an impression.”

That means we always see two things: Commercials that go over the top to make you laugh or otherwise impress you, and commercials that try to build a subtle, emotional association with their brand.

Take Volkswagen’s “The Force” commercial from last year’s Super Bowl, which was recently named the most effective ad of the year.

Objectively speaking, the ad doesn’t do anything to directly sell the car’s features – indeed, before you watched it again just now, you might have even forgotten which model of Volkswagen was being advertised (it was a Passat). But in addition to catching everyone’s attention by being very funny, Del Monte also says that it succeeded in subtly forging a connection between the Volkswagen brand and a certain emotion.

“It ties in the feelings and emotions of family,” he observed. “It’s mostly a ploy to connect an emotion to a brand moniker.”

This isn’t so much a discrete genre as it is a mindset that can be seen in every successful Super Bowl commercial. We also saw it last year with Chrysler, which sought to impart feelings of tradition and quality with its “imported from Detroit” ad. You might not come away knowing anything new about the product, but if the advertiser did its job, you’ll certainly come away feeling something.

The Failure

Not every commercial is a hit with the audience. While E-Trade joked about wasting $2 million, some companies really do throw their money away by putting out a total flop of an ad, and every year there are at least a couple of commercials that do absolutely nothing for the vast majority of the audience.

John Neal, a former advertising executive who now teaches marketing and advertising at Fairfield University’s Dolan School of Business, gave some insight on the hallmarks of a failed Super Bowl ad.

First and foremost, he says that commercials that are too focused on being informative instead of forging an emotional connection can be seen as a huge waste of money.

“Anything that’s very rational doesn’t work,” he says. “You want to fit the message to the media, and [the Super Bowl] is a party atmosphere. A commercial that tries to explain the difference between an Acura and a Honda is going to be lost.”

Secondly, a commercial has to catch the audience’s attention quickly if it wants to compete with the distractions of a Super Bowl party.

“If the commercial doesn’t capture the audience’s attention for the first five seconds, they’re going to turn around and get another chip,” he says. “There needs to be some sense of suddenness or mystery.”

Finally, it shouldn’t rely too much on sound. Many people are watching the Super Bowl in a crowded bar or a noisy party, and if a commercial is meaningless without the soundtrack, it’s going to be lost on a large portion of the viewing audience. Neal says that he illustrates this point by showing commercials to his students with the sound off and seeing if they understand it.

“If [the audience] doesn’t get it with the sound off, you’re going to waste at least 50 million of the 100 million people watching,” he says.

The One You’ve Already Seen

DiMassimo refers to them as “perennials” – those companies that are consistently present at every Super Bowl and always produce some variation on a theme. Pepsi, for instance, always seems to have a star-studded ad; Budweiser usually has its Clydesdales; and the E-Trade baby has become a recurring character. Every year some portion of the audience looks forward to seeing what the company will do with its established themes and characters, and the company will try to live up to prior years’ performances.

This year, though, things have gone a step further: Not only do we know which characters we can expect to see, many of us have already seen the entire ad beforehand.

“This year, for the first time, a lot of the companies are releasing their commercials early, so they can get more bang for their buck,” says Neal.

In some cases, we’ve only seen teasers or previews of ads circulating on YouTube – Volkswagen, for instance, has teased the return of the Darth Vader scene by releasing a video of an orchestra of dogs barking “The Imperial March” from the Star Wars score.

But others have gone all the way and released their entire ad to the viewing public well before the game. Most notable is the “Ferris Bueller” ad that’s been the subject of rumors during the past couple of weeks; after an initial teaser prompted rumors that we were going to see a commercial for a sequel to Ferris Bueller’s Day Off, it was revealed last week to be a commercial for the Honda CR-V. The company has released an extended version of the ad on YouTube, where it’s already racked up more than 4 million views.

Neal says that this makes good business sense – it builds advance buzz, spreads the message among the young people who trade viral videos and allows the company to get the most out of the millions it spent to create and place the ad. And while some might argue that this new trend spoils the surprise of seeing the new ads on game night, he thinks it only adds to the fun.

“The people who have seen it are in the minority, so it creates an ‘in-on-the-joke’ thing,” he says. “It’s kind of like taking someone to a movie who hasn’t seen it yet.”

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

11 Great Apps for the Super Bowl

Scott Gamm — Wed, 01 Feb 2012 07:00:00 -0500

There are several apps to make every part of Super Bowl Sunday easier – from ordering food to finding a sports bar to watch the game. Here are 11 of our favorites.

What the GDP Can Tell You About Job Openings

Seth Fiegerman — Tue, 31 Jan 2012 18:12:00 -0500

NEW YORK (MainStreet) — The gross domestic product is arguably the single most important economic indicator, but for many Americans, its quarterly changes likely seem abstract at best.

The primary purpose of the GDP is to tell us whether the country’s economic output is increasing or decreasing – and by how much – compared to the previous quarter or the previous year. That’s why economists will use the GDP as a marker to determine if we are in a recession or not. But what many may not realize is that the GDP can also provide some insight into the overall strength or weakness of the labor market.

While any increase in the GDP is good because it indicates that the economy is expanding, economists generally say that the GDP needs to be growing by close to 2.5% each quarter just to tread water and stop the unemployment rate from ticking up.

“You need to create somewhere between 100,000 and 150,000 new jobs a month because that’s how much the labor force increases on average,” says Paul Ashworth, senior U.S. economist at Capital Economics. In general, an economy that expands at 2.5% will create enough jobs to do just that, but not much more.

Beyond that, economists have traditionally relied on a fairly straightforward formula to determine the relationship between GDP and the unemployment rate, known as Okun’s law. In short, this formula states that the economy needs to grow by 2% just to maintain its current gap between actual output and potential output. For each percentage point that the GDP increases above that point, the output gap narrows and the unemployment rate drops by half a percentage point.

So by this standard, if the economy grows by 3%, the unemployment rate should drop by half a percent, and if the economy grows by 4%, unemployment should drop by a full percentage point. This standard holds up decently well if you consider that the GDP grew by 2.8% in the fourth quarter of 2011 and the unemployment rate dropped by half a percentage point in that same time period.

However, Ashworth notes that several factors have made the GDP a less accurate predictor for job growth in recent years. For starters, he says that many discouraged workers have left the labor market after failing to find jobs, which has had the effect of exaggerating the drop in the unemployment rate (since they are technically no longer looking for work), even though the percentage of the population without jobs remains high.

Moreover, much of the increase in the country’s output may be due to an increase in the average productivity of workers rather than the number of people who are employed. This, Ashworth says, is a result of companies trying to produce more with less and asking existing workers to take on more tasks.

Even with these new variables, Ashworth says that if you hear the GDP is greater than 2.5%, it means there are more job opportunities, and if you hear the GDP is less than 2%, the unemployment rate will likely tick up again.

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

U.S. Home Values Plummet 33% From 2006

Brian O'Connell — Tue, 31 Jan 2012 15:55:05 -0500

NEW YORK (MainStreet) – Homeowners won’t want to hear this, but the average price of a U.S. home has declined by one-third since 2006. The good news is that things should be getting better in the not-too-distant future.

That last sentence may be difficult to believe for homeowners, who saw the value of their homes slide further at the end of last year.

According to the U.S. Commerce Department, the average sale price of a new U.S. home in December 2011 was $266,000, and sales of new single-family homes that month were at a seasonally adjusted annual rate of 307,000, down 2.2% from November 2011.

The Commerce Department also reported that there were an estimated 302,000 new homes sold in the U.S. overall in 2011 – 6.2% lower than in 2010.

Still, homeowners may take some solace in a report out today from Fiserv Case-Shiller that indicates that although the housing market has taken a beating since 2006, the tide may finally be turning.

“While prices continued to fall in most markets, sales activity picked up at the end of 2011, setting the foundation for price stabilization in 2012,” Fiserv Case-Shiller’s Chief Economist David Stiff said in an official statement. “We stand by our projection that average U.S. home prices will move sideways in 2012. But we do anticipate that increasing sales activity will begin to drive small increases in prices in as many as half of U.S. metro areas.”

Stiff says that select U.S. cities can expect to see price upgrades right away.

“Some larger metro areas that escaped the worst of the home price bubble, such as Houston, Fort Worth and Salt Lake City, can expect increases of 1% to 3%,” he adds. “Many smaller metro areas, such as Boise and Albuquerque, are forecast to see increases of 4% to 6%.”

The Case-Shiller report isn’t all rosy, though, as the following data indicates:

The average U.S. home price has fallen by 33% since 2006.
U.S. home prices fell by 3.9% in the third quarter of 2011, compared to the third quarter of 2010.
In 2011, home prices fell in 337 of 384 U.S. metro areas tracked by Fiserv Case-Shiller.

There’s a good reason why Stiff uses the term “sideways” to define the 2012 housing market. Fiserv Case-Shiller says a real home price recovery won’t come until the fourth quarter of 2012, and will carry over into 2013. Fiserv Case-Shiller estimates that average U.S. prices should fall 2.7% by the third quarter of 2012, then rise 3.8% by the third quarter of 2013.

Why the bump-up in 2013? Stiff says that, after a long wait, broad economic indicators are mostly pointing upward.

“Consumer confidence remains low, but has bounced back from its sharp decline following the downgrade of U.S. debt,” he adds. “Auto sales have also rebounded after stalling in the summer, which indicates an increasing willingness of consumers to purchase big-ticket items. If the job market continues to improve, then the rebound in consumer confidence will be sustained this year and more households will be willing to purchase the biggest ticket item, a house.”

That could be a big “if,” but Fiserv Case-Shiller seems pretty confident in its numbers. To homeowners thirsty for some good news, that’s one long, cool drink of water.

For more updates on the housing industry, check out MainStreet’s Real Estate topic page!

The Best Credit Cards You Can Get With a Mediocre Credit Score

Jeanine Skowronski — Tue, 31 Jan 2012 15:20:58 -0500

NEW YORK (MainStreet) — Premium rewards cards and low annual percentage rates are typically reserved for the credit elite, but growing competition has led many issuers to widen their target market.

That means that credit card holders with so-so credit – scores between 650 and 699 – don’t need to resort to using a subprime product to improve their score. MainStreet talked to experts to find out which cards offer the best terms for these cardholders.

Capital One No Hassles Cash Rewards Card

This Capital One card is notable for its rewards program, which offers 2% cash back on gas and groceries and 1% cash back on all purchases made by cardholders. The card does carry a 17.9%–22.9% variable APR and a $39 annual fee, but Beverly Harzog, a credit card expert with Credit.com, says that’s reasonable for a rewards card in this category.

Orchard Bank Secured Card
If it’s a low-interest card you’re after, you might want to sign up for Orchard Bank’s secured card, which features a low APR of 7.99%. (As MainStreet has previously reported, secured cards require customers to put down a sum of money upfront to cover the line of credit and thereby minimize the risk of default.)

“That’s pretty low among all credit cards,” says Anisha Sekar, vice president of credit and debit products with credit card ranking site NerdWallet. The card carries a $35 annual fee, but it is waived for the first year.

Visa Platinum Preferred Credit Card From Associated Credit Union

Another option for people not interested in paying a sky-high interest rate is this Visa card from Atlanta-based Associated Credit Union, which allows new members to apply online. According to Sekar, those with a FICO score higher than 680 can qualify for a fixed 9.9% APR offered by the credit union, while those with a score of 600 will qualify for a 12% fixed APR.

Additionally, the card carries no annual fee and there is also no charge for balance transfers.

Journey Student Rewards Card From Capital One

“This is a good card for students working on their credit,” Harzog says, explaining that it allows cardholders to earn extra rewards when they use the card wisely. Students get 1% cash back on all purchases, but get a 25% bonus on their cash-back rewards each month when they pay their bills on time. The card also carries no annual fee, but does feature a high APR at 19.8%.

Not all credit cards marketed to the credit elite live up to their hype. Find out which cards you aren’t missing out on in MainStreet’s roundup of the most overrated cards of 2011.

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

How to Make the Perfect Video Resume

Seth Fiegerman — Tue, 31 Jan 2012 14:43:00 -0500

NEW YORK (MainStreet) — A job listing Web site launched Monday with the goal of giving applicants and employers a bit more face time with one another.

GetHired.com lets candidates and hiring managers record videos introducing themselves, rather than just relying on traditional job listings and resumes. For job hunters, the site offers one more way to stand out from the pack.

Those looking for work can record a video or audio introduction and upload it to the site for free (along with a traditional resume). Hiring managers who visit a candidate’s profile page can watch the video and factor it into their decision of whether to request an interview. At that point, the hiring manager can send along screening questions, which the candidate can also answer by video, effectively serving as a pre-taped job interview.

“If you can integrate a picture or a video or audio into the hiring process, all of the sudden you have a very compelling opportunity to really differentiate yourself,” says Suki Shah, CEO and co-founder of GetHired.com.

Video resumes themselves are certainly nothing new. Job seekers have been posting videos to YouTube for several years now, with varying degrees of success. GetHired.com is trying to take the video application to the next level by acting as more of a middleman between employers and applicants.

For those who have relied solely on paper resumes and cover letters, the idea of filming a video may seem a bit overwhelming, so we asked Shah for tips on how to film a great video application.

Dress for the Part

Anyone submitting a video application should be sure to dress as they would if they were doing an in-person interview for that particular company or industry.

“If you are software engineer in Silicon Valley, it’s probably OK if you dress down, but if you are applying for a banking position in New York, you might want to dress up for that,” Shah says. “You really need to know your audience.”

Be Mindful of Your Surroundings

When you film a video for an employer, it’s important to double check that there is nothing too controversial or distracting caught on camera in the background.

“Employers understand if you are doing a virtual interview from your home, it’s not a professional setting, but still, you should limit what’s around you,” Shah says. Likewise, he urges candidates to be mindful of any noise in the background, as this may be an added distraction on camera.

Limit Your Gimmicks

Part of the goal of filming a video is, of course, to stand out, but that doesn’t mean you should go crazy with gimmicks on camera.

“If you’re a creative person and you think that that could help you stand out, then by all means go for it,” Shah says. “But only do it within reason.”

Be Authentic

More than anything else, Shah tells job candidates is to use the video format to show off their personality, as this often gets lost with traditional resumes.

“Be authentic. That’s the real power of a video that an 8.5 by 11 piece of paper just could never represent,” Shah says. “That really shows.”

Seth Fiegerman is a staff reporter for MainStreet. You can reach him by e-mail at seth.fiegerman@thestreet.com, or follow him on Twitter @sfiegerman.

How to Prevent Your Outside Faucets From Freezing

Zillow.com — Tue, 31 Jan 2012 13:30:00 -0500

By Reuben Saltzman

Most homeowners who live in cold climates know it’s important to “winterize” the outside faucets to prevent them from freezing, which can destroy the faucet or lead to a burst pipe. The problem is that many people don’t quite get it right – winterizing the outside faucets in the fall seems like a simple thing to do, and it seems like it should be straightforward and easy, but there are a few tricks you need to know to make sure all the water is out.

Garden hoses

First and foremost, disconnect your garden hose from the outside faucet. If you leave your garden hose attached to the faucet, you’re asking for trouble.

Frost-free sillcocks with an integral vacuum breaker

If you have a properly installed frost-free sillcock (outdoor water faucet) with an integral vacuum breaker, you shouldn’t have anything to worry about. You should be able to leave the water on to these faucets all year ’round without them freezing. A properly installed frost-free sillcock will have a slight downward pitch, so that when the water is turned off, the water will all drain out of the stem (above, top).

When frost-free sillcocks aren’t installed with this downward pitch, water will sit inside the stem of the sillcock even when it’s turned off. The pitch is a little dramatic in the photo (above, bottom), but you get the point.

If this water freezes, it can burst the stem of the sillcock. Most homeowners don’t know this has happened until the first time they use their faucet in the spring. Once they turn their faucet on, water starts shooting out of the burst stem inside the house, making a big mess while nobody is inside the house to see it. This recently happened to Connecticut home inspector James Quarello while he was inspecting a home. Better him than me, I say.

The fix for an improperly installed frost-free sillcock is to have it re-installed with a slight downward pitch.

Winterizing standard sillcocks

With a standard sillcock, the water needs to be turned off and drained out to prevent freeze damage. To do this, you’ll need to first turn off the water supply to the faucet from inside the house. Exterior faucets should have a separate shutoff valve inside the house, but not all of them do. On older homes, these valves are typically located at the ceiling somewhere close to the outside faucet. On newer homes, the valves are typically located right next to the main water valve, and they’re also usually labeled.

Once the water is turned off inside the house, the outside faucet needs to be opened up. Next, the bleeder cap inside the house needs to be unscrewed – this will allow water to drain out of the pipes. Depending on how the pipe is pitched, the water may drain through the bleeder cap or through the outside faucet. Keep a small bucket handy when you do this, just in case a lot of water needs to drain out of the bleeder. After the water drains out, you can screw the bleeder cap back on and turn off the outside faucet.

Sometimes, two wrongs really do make a right Some older houses in Minneapolis and Saint Paul don’t have a shutoff valve for the outside faucet, and the faucets never get winterized… yet they never have a problem with freezing. How can this be?

Here’s a hint (left).

On older houses with no insulation at the rim space, there can be so much heat loss occurring here that the outside faucets never get cold enough to freeze. I call this “two wrongs making a right.” It’s certainly not a reliable method of preventing freeze damage, but it does seem to work.

Vacuum breakers complicate things

The problem with external vacuum breakers (aka backflow preventers) is that they don’t allow all of the water to drain out. After the water is turned off and appears to have drained out, the rubber seal in the vacuum breaker will still trap enough water to destroy the vacuum breaker, which will cause water to spray out all over the place when the faucet is used again in the spring.

There are two possible solutions: remove the vacuum breaker in the fall, or drain the water out of the vacuum breaker. If the vacuum breaker will just unscrew from the sillcock, go ahead and take it off in the fall. The problem with this is that vacuum breakers are often designed to be permanently installed. They have a little set-screw on the side that gets tightened down until it breaks off, making it so the vacuum breaker can’t be removed. If your vacuum breaker leaks every time you turn on your faucet and you need to replace it, there is still a way to remove it without destroying your faucet – I made a video showing how to do it here.

If the vacuum breaker can’t be removed or you don’t want to hassle with removing it, no problem; there is still a way to drain the rest of the water out. If you look up inside the vacuum breaker, you’ll notice that there is a small white plastic post. Just push this post to the side, and the rest of the water will drain out. This video shows how this works.

If the vacuum breaker doesn’t have that white post, it may have a plastic ring that will allow it to drain.

Reuben Saltzman, Structure Tech Home Inspections, Minneapolis, Minn., is a second-generation ASHI Certified Inspector whose experience with home remodeling and construction began at age four when he helped his father steam wallpaper. He has worked for Structure Tech since 1997 and joined ASHI in 2004. Visit his blog at www.structuretech1.com/blog/.

Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.

The Best Time of Day to Find a Deal

Matt Brownell — Tue, 31 Jan 2012 12:59:35 -0500

NEW YORK (MainStreet) – Finding the best deal on a product often comes down to timing. Seasonal retail trends mean that some products are simply less expensive depending on what time of the year you buy them – electronics, for instance, tend to cost less in January and February when retailers look to clear out last year’s models. And sometimes it even matters what day of the month you buy something, with most experts recommending that you visit the car dealership at the end of the month to take advantage of salespeople trying to hit their quotas.

Believe it or not, prices can even fluctuate during the course of the day. While those fluctuations aren’t as great as you might see from season to season, certain times of the day are indeed better for finding the best deals.

“I go [to stores] during the least busy time of the day, because I want to have a chance to ask for a deal,” says Teri Gault of TheGroceryGame.com, who has previously shared her haggling tips with MainStreet. “I stay away from after-work times and weekends. Go in the mornings, though not first thing because they might be grouchy. If they open at 9, I come in from 10-11.”

If you don’t mind haggling, then coming in during these quiet periods will give you more of an opportunity to negotiate with salespeople or managers.

Gault says that the calculus changes a bit when it comes to getting deals on groceries. Here, the objective is to snag the slightly older (but still fresh) meat and baked goods that are priced to move, and that means getting there bright and early.

“Meat is the most expensive thing in the supermarket, so to get it cheaper, we want to get the ones they marked down that morning,” she says, noting that beef and pork are required to be safe to eat for three to five days beyond the sell-by date. “In the bakery they’re more sporadic, but usually in the morning they get around to [marking down older goods].” She adds that the one exception to the early-bird-catches-the-worm rule is at farmer’s markets, where vendors will price their goods to move at the end of the day so they won’t have to haul it away.

That covers bricks-and-mortar retail. Online deals are a little less time-sensitive (most daily deals, for instance, will run from midnight to midnight), but there are still some rules to follow.

“If it’s online, we don’t really see deals and sales coincide by time of day,” says John Lal, founder of BeFrugal.com. He does note one big exception, though: Flash sales tend to take place in the morning, such as the “Woot-Offs” you’ll find at Woot.com. With that said, the “Lightning Deals” on Amazon tend to take place throughout the day, so you’ll want to check back frequently.

Brad Wilson of BradsDeals.com says that deal hunters who don’t mind staying up a bit late should aim for 12:01 a.m.

“The big-box stores have a routine of starting new sales at 12:01 a.m. Sunday, [and] most one-day-only sales, deals and coupons start then,” he says. While those will often run at least 24 hours, supplies are sometimes limited and could run out before the timer does.

Of course, that assumes that the online retailer is actually based in the same time zone as you, which isn’t always the case. If, for instance, you’re on the East Coast and a deal site based in California starts its deals at midnight, you won’t actually see it go up until 3 a.m. EST. In that case, you’ll probably want to just wake up early to see what the site has to offer – unless it’s been bombarded by deal-hunting night owls, it will probably be waiting for you when you wake up.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.

NerdWallet Launches Prepaid Card Comparison Tool

Jeanine Skowronski — Tue, 31 Jan 2012 11:58:58 -0500

NEW YORK (MainStreet) — Largely unregulated, prepaid debit cards can be notoriously hard to compare because fee structures often differ from provider to provider and consumer to consumer, depending on how the card is being used.

Luckily, finding out how much a prepaid product will cost you just got a bit easier, thanks to the folks over at NerdWallet.

The credit card ranking site launched a tool on Tuesday that allows consumers to compare and contrast prepaid debit cards currently on the market.

The tool asks users to specify whether they plan on linking direct deposit to the card and withdrawing money from ATMs, as well as how often they will be reloading funds on the product. It then calculates the actual cost of the product based on these preferences, and ranks the best cards based on which offer the most cost-effective fee structure.

The tool also gives users the opportunity to compare the costs of these cards to basic checking account options. Users can specify how often they overdraft their account, how often they use checking cashing services and how much they pay to cash their checks in order to determine if prepaid cards are a more affordable option. (According to NerdWallet, they rarely come out on top.)

“To ensure that consumers are treated fairly, we provide them with the best information possible and help them easily distinguish which card is best for their lifestyle, not the card issuer’s bottom line,” NerdWallet CEO Tim Chen said in a written statement.

How can you minimize the amount of fees incurred when using a prepaid product? Find out in the MainStreet article “The Right Ways to Use a Prepaid Card.”

—Jeanine Skowronski is staff reporter for MainStreet. You can reach her by email at Skowronski.jeanine@thestreet.com, or follow her on Twitter at @JeanineSko.

What Low Interest Rates Mean for Your Money

Jeff Brown — Tue, 31 Jan 2012 11:30:00 -0500

NEW YORK (MainStreet) – My, how things have changed. In the old Alan Greenspan days, the Federal Reserve’s plans for interest rates were a mystery enveloped in a fog. Now, under Ben Bernanke, the Fed has become so open that it has already announced plans to keep rates low through late 2014.

And while transparency is generally a good thing, the fallout from the Fed’s new disclosures will affect financial products in a variety of ways. Here are some of the implications of the change.

Savings

In recent months savings rates have been so low there was little benefit in tying money up for a year or longer, as extra earnings from the longer commitment were offset by the risk that the investor would miss a chance to invest at a higher yield in a few months, since it was more likely yields would rise than fall. Not to mention the fact that such low yields meant the money would not even beat inflation over time.

Now that the Fed announcement makes the odds of higher yields low to non-existent, tying up cash that could pay. Currently, the average money-market account yields a paltry 0.162%, while two-year certificates of deposit pay nearly 0.52%, three times as much. Granted, that 24-month yield is still pretty low, but why not get it if there’s no downside? Just be sure to investigate the CD’s early withdrawal penalty, in case yields jump unexpectedly and you want to move your money to a higher rate.

Adjustable-Rate Mortgages

Most mortgage shoppers will be wise to take out fixed-rate loans to lock in today’s extraordinarily low rates, such as the 4% offered by the best 30-year deals, but two groups might consider ARMs since rates are unlikely to rise in the next couple of annual resets.

Homeowners who already have ARMs should consider sticking with them a little longer rather than refinancing to fixed-rate loans. Because ARM resets are governed by short-term rates, many of these loans are now charging a scant 3%, so refinancing to a fixed loan at 4% would raise payments by around one-third. Waiting to refinance, though, means possibly missing the opportunity get today’s low fixed rate, so the borrower should watch trends carefully and be ready to refinance to a fixed deal on short notice.

Homebuyers who don’t expect to stay in the house for the long term might also gamble on ARMs in hopes rates will stay low. Five- and seven-year ARMs are especially attractive, with starting rates well below 3%.

Home Equity Loans

Jittery lenders have made it pretty tough to get a home equity loan, but the deals are good for those who have enough equity and good credit to qualify.

Generally, long-term borrowers of large sums are better off with installment loans, which charge a fixed rate for five, 10 or 20 years. Currently, installment loans for 10 years or less average below 7%, which is quite attractive.

But if the Fed will keep short-term rates low for the next couple of years, a home equity line of credit is worth a look. After the first few months, HELOC rates float with market conditions, so borrowers face the risk of higher payments over time. The Fed’s plan diminishes that risk considerably.

Many HELOCs now start at 3% to 3.5%. After that, they adjust by adding a margin to the prime rate, which is currently 3.25%. A borrower with good credit can get a two-point margin, for a loan rate of 5.25%.

HELOCs are best for borrowers who will be able to pay off their balances on short notice if rates rise.

If you’re watching the national housing scene, you probably caught the big announcement last week at the president’s State of the Union Address. MainStreet looked into it and found with 3 Reasons Why Obama's Refinancing Plan Won't Pass Congress.

Morning Deals: $20 Off at Cooking.com

Matt Brownell — Tue, 31 Jan 2012 10:19:21 -0500

NEW YORK (MainStreet) –Daily-deal site Woot.com has a post for a coupon code good for $20 off purchases of $50 or more at Cooking.com. The code is C82967, and each customer can only use it once. Note that several brands are excluded from the promotion. It’s not clear when the code expires.

Banana Republic takes 25% off site-wide when you use the coupon code BRBOOST. The code is good through the end of today, expiring at 11:59 p.m. EST. It can’t be used in stores or outlets, and there are few product classes excluded, such as the Timeless Collection and men’s bags. See the website for full details http://bananarepublic.gap.com/ .

Sears offers the Nordic Trak GX2 exercise bike for just $299.99 as its deal of the day (or its “Real Deal,” as the retailer has named it). The site says that this is marked down from $999. Note that shipping will cost you upwards of $60 and you’ll also be charged sales tax. The deal expires tonight at 11:59 p.m. EST.

Matt Brownell is a staff reporter for MainStreet. You can reach him by email at matthew.brownell@thestreet.com, or follow him on Twitter @Brownellorama.