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December 2006

Congress changes Mortgage Insurance deductibility

Big news from Congress...and I wanted to share this with you right away!

As you probably know, Private Mortgage Insurance (PMI) is required anytime a loan is taken out with a "loan to value" ratio of 80% or higher...yet historically, these Mortgage Insurance premiums have never been tax deductible.

But Congress just passed a law with a change to the tax code which will allow Mortgage Insurance Premiums to be claimed as tax deductions for households earning less than 100k annually.

What does this mean for you?

Primarily, it means that mortgage options that include standard Private Mortgage Insurance will now become much more competitive and attractive, especially as PMI can often be removed with sufficient property appreciation or declining loan balance, assuming timely payments.

Since buyers traditionally have turned to "piggyback" second mortgages as a way to avoid mortgage insurance, this news is particularly welcome, as second mortgage rates have risen dramatically in recent years.

This piece of legislation still requires President Bush's signature, but at this time there is no indication that he will not sign it. Also, the current legislation applies to new loans closed in 2007 only, and as such, will require another act of Congress to be extended to 2008 and beyond.

2:41 PM - Dec. 30, 2006 - comments {0} - post comment

Got the Champagne Ready?

Our friends at Lifestyles at msn.com have given us a complete guide to champagne.

Champagne (yes, with a capital C) comes from the Champagne region of France. To get the ‘C' name, the sparkling wine is made very specific-such as the degree of press applied to the grapes and the time that bottles must remain in contact with the less (sediment). Like Band-Aids and Q-tips, champagne (lower-case c) has become the catchall name for sparkling wine.

Why the bubbles?
Champagne's bubbles are created when a bit of yeast and sugar are put into the bottles of a base, non-sparkling wine, causing a second fermentation (regular wine only ferments once) that results in bubbles of carbon dioxide.

Taste Test
To tell a cheap sparkling wine from a fancy one, look at the bubbles. Expensive ones have tons of tiny bubbles. Cheaper champagnes have larger bubbles, which create a foamy feeling in your mouth.

Reading Labels
Deciphering a Champagne label can be tricky for the uninitiated.

Dryness Scale:
Champagne is classified according to how much sugar it contains.

- Brut: Driest, least sweet; most good Champagnes are Brut or Extra-Dry.
- Extra-Dry: The next driest; the term is confusing, since it's not as dry as Brut.
- Sec: Means dry in French, but it's sweet.
- Demi-Sec: Moderately sweet; serve it with desserts that aren't too sugary.
- Doux: The sweetest.

The Grapes
Champagnes can be made from the same type or a blend of grapes.

- Blanc de Blancs: Champagne made entirely of white Chardonnay grapes.
- Cuvée: Champagne made from a mix or blend of grapes from different years.
- Blanc de Noirs: Made of the red grapes Pinot Noir and Pinto Meunier (the skins are
taken off so the bubbly is still white in color). These champagnes are less acidic and have a stronger fruit quality.

- Rosé: Pink bubbly is made by leaving the juice of red grapes in contact with their skins for a while, or by blending the Chardonnay and Pinot Noir and/or Pinot Meunier wine.
- Vintage: Made from grapes all from the same year - because the fruit was so amazing. You can recognize a vintage because the year will be on the bottle. A vintage bottle is often, though not always, pricier than a cuvée.

Glass War: Flute vs. Tulip Glass
Connoisseurs recommend tall, skinny flutes because their elongated shape concentrates the bouquet and encourages the bubbles to rise to the surface. The wide-mouthed glass, called a tulip-shape, won't produce this same effect. Either glass: Don't spare the crystal! The rougher surface of glass works up bubble even more than a standard flute.

Whatever kind you choose and whichever glass you use, please remember to drink wisely and NEVER drink and drive.

Happy New Year everyone!!

9:03 AM - Dec. 30, 2006 - comments {0} - post comment

Change those tax deductions

So as you're out merrily spending for the holidays...are you already thinking about how you'll pay the credit card bills when they arrive? Maybe you're thinking you'll use that juicy tax refund you're expecting - but wouldn't it be nice if you had that money now? Sure, many individuals who are expecting refund checks have discovered services that give them an advance on their money. And while these services will give you the cash right at the time of filing for your taxes, the fees involved can take a hefty chunk out of your refund. So what's a tax (over) payer to do?

The IRS can actually help.

When you think about it, getting a refund check means that you let the IRS use your money throughout the year without paying you any interest. Wouldn't you rather have the money during the year yourself? Here's how you do it. The IRS allows you to increase the number of dependants on your W-4 withholding form, meaning that less will be withheld for taxes from each paycheck. In the past, if you claimed greater than nine dependants, an explanation and approval may have been required. But the IRS has lifted this restriction, allowing you to voluntarily increase your dependants claimed.

This lets you have more money in each paycheck instead of "loaning" the money to the IRS and having to wait for a refund.

But let's not go overboard...you should only lessen the periodic tax withholding to match the expected refund. This way you are taking your refund as you go; instead of letting the IRS hold on to it. There is even a nifty calculator the IRS has provided for free, which lets you see how a change in withholding will affect your paycheck.

Here's the link to the free withholding calculator: IRS Bean Counter

And managing your withholding can also be a great tool if you are currently renting, but are about to buy a home. The new housing expense may be greater than the rent payments, but the new home will give you some important tax deductions. By adjusting your withholding when you buy a home, you can get the benefit of the new home deductions spread into each paycheck...which can make that new home payment a lot more comfortable.

Before you make any changes, you want to be sure you are balancing the amounts carefully and correctly, so it is always a good idea to check with your tax professional. And if you need a referral, just give me a call!

2:39 PM - Dec. 28, 2006 - comments {0} - post comment

Where will you spend New Year's Eve?

This is a constant problem for us - where to spend this holiday.  The good folks at aboutmen.com have prepared the following list so we don't have to stress about it anymore:

Number 10 Hawaii
Whether part of an all-inclusive package or on your own, there is a lot to do in Hawaii during New Year’s. You can book a nightlong cruise from Waikiki as well, where a nightclub atmosphere and live band can be found on a luxury yacht. As midnight approaches, those onboard will have a great view of the New Year’s Eve fireworks.  Must-do: Try to get tickets to a Hawaiian gala, where traditional New Year’s practices are mixed with good old-fashioned fun.

Number 9 Vienna
In the capital of Austria, substitute nightlong dance raves with dignified balls, and loud club music with the world’s best symphonies. The Old World city comes alive by offering the Kaiserball at the Hofburg Palace on New Year’s Eve.   Must-see: On New Year’s Eve, the Vienna Philharmonic puts on a concert at the great Musikverein hall.

Number 8 Madeira
On this Portuguese island you can rent out a villa and soak up the atmosphere and beaches, or join the populace in watching Madeira’s famous fireworks and outdoor parties. Instead of, or along with, champagne, try the famous fortified wines, as well as the Poncha and Nikita cocktails.   Must-do: Prior to the festivities, eat out and try Madeira’s local dishes, like black swordfish and espetada (meat brochettes).

Number 7 Goa
Aside from privacy, great beaches and idyllic scenery, the resorts and hotels in Goa will treat you like royalty. Holiday packages include complimentary tours of the state, planned New Year’s events for those who want to mingle and several amenities to make you and your significant other more comfortable.   Must-see: Baga Beach and a drink at Tito’s, Goa’s most popular nightclub.

Number 6 Tokyo
For New Year’s, two different but equally fun opportunities present themselves in Japan’s greatest city. Traditionalists enjoy visiting Tokyo’s Shinto shrines and Buddhist temples to celebrate in style and pray for good luck in the New Year. Amazing festivals are held in these shrines, replete with music and dancers dressed in ornate costumes.
Must-see: On January 2nd, the Imperial Palace is open to the public. You can tour the grounds and catch a glimpse of Japan’s Emperor.

Number 5 Morocco
When the champagne-filled parties get old, it’s time to consider something completely different. Certain Moroccan tour companies organize desert tours for New Year’s, where travelers get to spend the memorable night in an incredible oasis. You can stay in the ancient city of Ouarzazate, then move out into the Sahara and experience a nomadic lifestyle with the natives.
Must-see: After midnight, catch the bonfire and nomadic dances, which help transform the desert into an outdoor dancehall.

Number 4 Sydney
Visit Sydney’s most popular spot on New Year’s—the Harbor Bridge, where people come in droves to watch an impressive display of fireworks that starts over the water at the stroke of midnight. If you can’t get on the bridge, sit on the steps of the legendary Sydney Opera House. Better yet, book a private charter boat for the night and observe the action from the water.
Must-do: Prior to partying, grab a window seat in one of Sydney’s high-rise restaurants to get a view of the city’s activities while dining on great food.

Number 3 Las Vegas
Want to gamble your money away, live in luxury and see the stars? Then hit Sin City for the ultimate bash. The standard Vegas activities are revamped for New Year’s Eve, as the strip is closed to traffic after 5 p.m. and is transformed into an enormous block party. As an added bonus, you’re likely to spot as many street performers as you do celebrities.
Must-see: The fireworks at midnight, which are best seen in front of Caesars Palace’s Forum Shops or on the observation deck of the Stratosphere.

Number 2 Cape Town
There’s a lot to see and do in this diverse, vibrant South African metropolis. Cape Town holds a New Year’s carnival, attracting 80,000 enthusiastic tourists and locals. This festival entertains in every aspect, offering great food, music and shows all night long.   Aside from the carnival, outdoor concerts, fireworks and a hospitable atmosphere in most restaurants mean you can find something to do in every corner.   Must-see: The V&A Waterfront is Cape Town’s fine harbor area and a great place to grab a drink and watch traditional African song and dance in the many lounges nearby.

Number 1 Rio de Janeiro
Rio is a party city all year-round, so imagine the ruckus that occurs when it’s time to ring in the New Year. Copacabana Beach serves as the setting for many of the outdoor parties, where in accordance with tradition, 2 million partiers are usually all dressed in white.   Must-do: At the stroke of midnight, celebrate by going for a dip in the ocean.

Now, all we have to do is get that money together!

2:54 PM - Dec. 26, 2006 - comments {0} - post comment

Merry Christmas!

This time of the year always makes us think of those around us.  All our family and friends are close in thought if not in reality.  We remember all the Christmases past and what a time we had.

We'd like to wish everyone who reads this a Merry Christmas!  May all your wishes come true.  We hope that everyone you hold dear is close to you this holiday season. 

Merry Christmas!

Mack and Andi

5:36 AM - Dec. 25, 2006 - comments {0} - post comment

Minimum Purchase Required?

But did you know that retailers cannot require a minimum charge for merchandise? Here is the scoop.

Many of us think that when a retailer refuses to accept a credit card for a small purchase, it is the credit card company that is enforcing this policy. Not true. This is simply a policy that has been put in place by the store. Basically, the store is charged a fee by the credit card company for each purchase that is made by credit card. Sometimes the fee eats into the profit the retailer would make on a purchase and therefore many stores require a minimum charge to ensure that the profit will cover the service charge. But the reality is that any store which accepts Visa or MasterCard cannot require a minimum purchase. Credit card companies want their customers to use credit cards, no matter how big or small the purchase may be.

So what does a consumer do to overcome this obstacle when shopping?

Ask to speak to the manager, and explain that credit card companies do not require a minimum purchase and stores have to accept a credit card as form of payment, no matter what the amount of the charge. If the store still insists on a minimum purchase, contact the issuer of the credit card and report the merchant. Small purchases add up, and with more and more people using credit cards to rack up miles or earn points for cash or rewards, knowing the facts about what you can charge could payoff big in the long run!

10:57 AM - Dec. 21, 2006 - comments {0} - post comment

Holiday eating blues

Our friends at msn.com have come up with several tips to save us all from those extra calories at holiday time.  Not that we'll follow them, but at least we can say we know better.

Guideline No. 1: Portion control is everything

Many people lose weight and keep it off with the simple strategy of portion control. Eliminating or even limiting certain foods is brutally hard during the holidays. So do the next best thing: Eat reasonably small portions, limit the foods you know you should limit, and don't stuff yourself.

Guideline No. 2: The next best thing to behaving perfectly is behaving well

Most of us know by now what our "trigger" foods are and the effects certain foods have on our mood, appetite and energy. If you can't abstain from problem foods all of the time during the holidays, abstain from them most of the time. "Most of the time" is a lot better than "none of the time."

Guideline No. 3: Get off the diet mentality

This is the corollary of Guideline No. 2. If you think of yourself as being "on" or "off" a diet, you're going to get into trouble. Why? Because as soon as you go off, you go off, as in "deep end." Don't set yourself up for this disaster. A taste of Aunt Goldie's pie doesn't mean you've "sinned" and definitely doesn't mean "What the heck, I might as well eat the whole thing."

Guideline No. 4: Don't skip meals

A common strategy during the holidays is to skip breakfast—and lunch—because you know a big meal is coming, so you "save up" the calories for the celebration. This strategy backfires, because you come to the meal starving and wind up eating way more than you ever intended. Which leads us to...

Guideline No. 5: Never arrive hungry

You know what foods you need to stay away from. Well, those foods are a lot harder to resist when you're starving and your blood sugar is in the pits. An ounce of prevention goes a long way here. A glass of tomato juice, some whole-grain crackers, a slice or two of cheese or a rice cake with some peanut butter will keep your appetite at bay. Try any of them an hour or so before the big holiday dinner and watch your willpower soar while your waistline stays in place.

Guideline No. 6: Go to the buffet line with a small plate

A full salad plate looks like a lot of food and psychologically "feels" the same way. You can always go back for seconds, or even thirds; but all of this slows down the eating process, giving you more time to feel full. And more often than not, the larger portions of food you would have eaten if they had been on your plate will wind up staying on the buffet table.

Guideline No. 7: Bring snacks while shopping

Prowling the mall for hours leaves everyone starving and vulnerable to the usually bad fast-food choices. If you come prepared to roam around with some crunchy, healthy snacks such as celery, carrots, or even nuts—just don't scarf down fistfuls of peanuts—
you'll be less likely to succumb to the call of the food court.

Guideline No. 8: Replace sweet with spicy

Cravings for sweets sometimes evaporate when you put something pickled or spicy in your mouth. It's okay to indulge the occasional sweet craving, but eat something spicy or pickled first and you may find you no longer want to.

Guideline No. 9: Be sure it's not thirst

Many times when we crave food, it's not really hunger that's driving the urge, it's mild dehydration. So drink tons of water. A slice of orange, lemon or lime will flavor the water and cut your cravings; flavored non-caloric seltzers accomplish the same thing.
Guideline No. 10: Finish your big holiday meals within an hour of starting

The body produces a second insulin hit if it senses a lot of food coming in continuously. You can avoid that second hit (and the subsequent fat storage that it triggers) by finishing within an hour of starting. If you see something you like that you forgot to eat within the hour, that's fine; just save it for tomorrow. It'll still be there, and you won't be wearing it on your hips.

Guideline No. 11: Begin each meal with a salad

It fills you up, provides fiber and is a wonderful alternative to bread.

Guideline No. 12: Divide your plate into thirds

Think protein, vegetables and the carbohydrates you probably crave. Imagine that your plate is divided into thirds, one section for each food group. The carb section has to include not only the starchy carbs that are staples of holiday dinners but the desserts too. So if you're going to eat dessert, adjust your portion of the other carbs accordingly. Together the "meal" carbs and dessert carbs should make up about one-third of the holiday meal.

Guideline No. 13: Fiber is your secret weapon

Not only is fiber supremely healthy and directly related to the reduction of risks for a whole host of diseases, it is a huge player in the weight-loss field. It also contributes to a feeling of fullness.

Guideline No. 14: Plan ahead

During the holidays, try to plan around where you're going, what temptations are likely to arise and how you're going to deal with them. Decide in advance what you're going to allow yourself, but prepare for it so you don't go overboard. Don't be afraid to taste things without finishing them.

Guideline No. 15: Eat slowly

Hormones signal the brain when you're full, but it takes about 20 minutes from start time before you feel it. Slow eating not only aids in digestion but also gives your brain a chance to know what the stomach is doing. If you make the meal last, by talking, putting down your fork between bites or just plain waiting, you're less likely to eat on "automatic pilot" and more likely to realize you're full.

9:17 AM - Dec. 20, 2006 - comments {0} - post comment

Should you pay off your mortgage?

5:47 PM - Dec. 19, 2006 - comments {0} - post comment

Have you heard of vishing?

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