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December 2007

What's in your wallet?

If you're like most Americans, you have more than a few credit cards.cards. In recent years, there has been an explosion in the number of credit card issuers, and perhaps more confusingly, the types of rewards being offered with those credit cards. So now, not only do you need to consider the rate and terms of your credit card...but what rewards or other benefits it offers. So what types are out there - and which is best for you?

Airline Miles: If you travel frequently, then maximizing your airline miles may be the very best reward. And if you primarily fly on a single carrier, you will do the best to take their affiliated credit card, as they typically offer 'bonus' opportunities to earn extra miles. If you do fly multiple carriers, you may need to use another option, but most reward cards offer airline miles as a choice. But watch carefully, as there are usually restrictions or blackout dates on when you may be unable to use your rewards-earned airline miles.

Cash Back: Discover was the first card to offer a cash back incentive program, and in fact, that marked the beginning of rewards programs in general. There are several items to consider when focusing in on cash back cards, most importantly being the fine print. Some of the better cash back offers do have tiers where you do not earn the most cash back until after certain amounts of spending on a yearly basis. So if you do not use your credit card very often or do not spend enough to make the required spending levels, you can lose out.

Store Cards: Cards issued by particular merchants can be some of the most valuable cards out there if you are a frequent shopper at that store. Typically, you will be given special offers or invitations to sales events, discounted prices, even up to 5% cash back or earned gift cards with that store.

Points Cards: Many rewards cards offer general purpose points that can be redeemed for a wide variety of items, including airline miles, cash back, gift cards from a variety of places, gifts to charity or simply merchandise. These cards can be very beneficial due to the flexibility that they offer - but here are a few general suggestions.

First, do not buy merchandise directly from the reward program. These products, often electronics, are routinely of poor quality or old models. Best way to purchase is to redeem your points for a gift card at a store you can buy the item at, which generally provides more bang for your points than straight cash back anyways. Next, look carefully at all of the reward levels, as sometimes you can get a better reward ratio if you save up your points over time. For example, 1000 points often translates to a $5 gift card, but saving up 6000 points may translate into a $50 gift card - ten times the value for only six times the points! Last, some vendors offer a statement credit versus a cash rebate - and generally offer a higher dollar amount for a credit rather than cash, although the money spends just the same.

2:51 PM - Dec. 30, 2007 - comments {0} - post comment

Make sure your taxes and insurance are being paid!

Sylvia Ponce is senior vice president of operations for Fidelity National Information Services' Home buyers Financial Network (HFN). She reminds all of us to be aware of what is going on with our mortgage company and check to make sure they are making payments on our behalf.

As the mortgage and real estate industries face unprecedented times, homeowners could very well be left to pay the bills, literally. Mortgage companies are going out of business or declaring bankruptcy every day. When that happens, their assets can be frozen, which means they cannot transfer any funds, including the funds they owe on behalf of homeowners for hazard insurance (and other types of insurance) and real estate taxes.

Most homeowners do not receive confirmation of payment of insurance or real estate property taxes. The assumption among them is that they pay the monthly escrow amount and never need to consider those items. However, recent examples have shown that might not always be the case. There are a few simple steps homeowners can and should take to verify payment of their escrowed items.

Insurance

While the primary purpose of insurance is to protect the interests of the lender, having a lapse in hazard, flood, wind and other types of insurance could have a significant impact on homeowners, especially if they have equity built up in the home. If an insurance payment lapses, carriers will immediately cancel the insurance policy.

Homeowners should proactively monitor their policies. Most insurance companies provide policy information online. If not, the insurance agent should be able to access the information. Either way, it is easiest if homeowners have their policy numbers, but if they do not, insurers have other methods of locating the policy information. Using the Internet or a phone call, in less than five minutes, a homeowner can confirm whether the insurance premium has been paid.

If a homeowner finds out that a premium has not been paid, there are two options. The homeowner can contact the mortgage company directly regarding the payment or can request the insurance agent do it on his/her behalf. It is important for homeowners to keep their policies' expiration date in mind because once the policy expires, they will have no protection against losses.

If the insurance is not being paid and the mortgage company is not helpful, the individual can also contact the state Insurance Commissioner's Office or other agencies that govern insurance. Homeowners should contact the office in the state where the property is located, regardless of where the mortgage company is located.

The best advice if the deadline is approaching for the insurance to be paid, and the fear is it will not be paid or not paid on time, is that the homeowner make the payment, document it and then seek reimbursement from the mortgage company. This prevents the insurance from being cancelled.

In states like Florida and Louisiana that have experienced significant damage from hurricanes in recent years, it has become very difficult to get insurance. If a homeowner's insurance is cancelled, it will be even more difficult to get a new policy as that person will be moved to a higher risk category due to the lack of payment. This means that if they can get a new policy, they will be paying more for it. This is just one more reason why it is important for homeowners to monitor their insurance payments.

Real Estate Taxes

Real estate taxes are not as critical as insurance from a payment perspective because there is no threat of cancellation; however, if taxes are not paid, the homeowner will be assessed penalty fees as a result of the delinquency. Eventually, a tax certificate can be held against the property, and, as a last resort, the property could be auctioned to cover the delinquent tax bill. While this is a lengthy process, legal fees are incurred throughout each step for which the homeowner could be responsible. This becomes very costly. Plus, the longer the process takes, the more difficult it becomes to unwind.

Most tax authorities provide information online, so a good recommendation is to go online to confirm payment of real estate taxes. However, if the particular taxing authority does not provide this information online, homeowners can contact them via telephone. Have the tax folio numbers, parcel numbers and/or legal descriptions available when calling.

Again, if a homeowner fears the taxes are not being paid, it is best for them to pay the bill and keep record of the payment to seek reimbursement from the mortgage company. The reimbursement process is a common, well-established process with mortgage companies, and it should be rather painless as long as the homeowner has good documentation.

2:39 PM - Dec. 28, 2007 - comments {0} - post comment

Take care of those end of year financial matters

We subscribe to The Motley Fool Inside Value newsletter. This article is important information for everyone. We all have end of year financial matters we need to take care of.

Scrambling to take care of your year-end financial housekeeping before the last refrain of "Auld Lang Syne"? Then let's get right to business so you have plenty of time to pick a show-stopping New Year's Eve ensemble.

Here's a rundown of top-priority tax tasks -- the stuff that absolutely must be done before popping the bubbly -- plus pointers for procrastinators on what can be put off until after the confetti settles.

1. Slash next year's out-of-pocket health-care/dependent-care expenses During open benefits enrollment, you not only have the opportunity to tweak your health-care coverage, but also to secure savings of 25% or more on all of those out-of-pocket medical and dependent-care expenses.

This cost-cutting technique is possible via flexible spending accounts (FSAs). FSAs come in two flavors -- medical and dependent-care. In a nutshell, FSAs are funded by you with pre-tax dollars taken out of each paycheck. When you incur expenses not covered by your health insurance plan (or write a check for dependent care), you submit a receipt and get paid back with the money you set aside. See your plan pamphlet for eligible expenses. Examples of reimbursable medical expenses include doctor visit co-pays and deductibles, prescription co-pays, over-the-counter meds, orthodontics, Lasik eye surgery, contact lenses, birth control, psychotherapy, and acupuncture. Eligible dependent-care costs include what you pay for nannies, au pairs, and nursery schools.

Must do: Enroll in your employer's FSA program. Not enrolled in an FSA? Dude! Sign up now. If you contributed $1,200 (about the national average) to a medical or dependent-care FSA and are in the 25% tax bracket, you'll save about $420 annually (including federal and Social Security taxes paid), or $35 a month. Stash $3,100 -- last year's average contribution -- in a dependent-care account, and you're looking at more than $1,000 in annual tax savings, or $83 a month. To nail the contribution amount, use the worksheet from your plan or fiddle with the FSA calculator at fsaandyou.com and the Health Expense Calculator at planforyourhealth.com.

And for more advice on maxing out dependent care perks, find out how you can save big with dependent care benefits. Following our advice on signing up for the right health-care plan could add hundreds to your paycheck.

Can wait: Using up last year's FSA dollars. If you already have an FSA but haven't used up all your dollars, don't rush to buy extra pairs of bifocals just yet. Many plans have extended the allowable time frame to incur expenses by two-and-a-half months -- so you may not have to scramble to spend the cash you've already set aside. (Check with HR to be sure.) And for help managing all those receipts, ask your vendor for a hand. If you buy your prescriptions at one place, ask for an annual rundown of what you've spent. Some vendors, including 1-800 Contacts (Nasdaq: CTAC), Drugstore.com (Nasdaq: DSCM), and Walgreen (NYSE: WAG), have tools on their websites that help you track qualifying purchases.

2. Minimize next April's tax tab

Time and money are short around the holidays. But saving strategically to minimize the April tax hit is the best gift you can give yourself. Right now, see if you're on schedule to max out your employer-sponsored retirement plan. Contribution limits this year are $15,500; those aged 50 and older may be eligible to contribute $20,500.

Must do: Bump up your final work retirement plan contributions. Since pay periods are dwindling, opportunities for maxing out your 401(k) (or other employer-sponsored plan) are limited. That's not an excuse, by the way. Find out if your plan allows you to defer a heftier chunk -- some allow up to 100% of your compensation -- of your final 2007 paychecks. It may be painful to pass up the pay, but giving up the compounding tax-deferred income is worse. Plus, socking away money in a traditional retirement plan reduces your taxable income. If you're in the 25% tax bracket, you'll shave $250 off your federal tax bill for every $1,000 you contribute to your 401(k).

Can wait: Fully funding your IRA. If money's tight, allocate any extra dollars to your company 401(k) (or other employer retirement plan) instead of your IRA. You have until Apr. 15, 2008, to fully fund your IRA; but, again, the deadline for work retirement plan contributions is Dec. 31, 2007.

3. Prioritize your final paychecks

Once you have the year's final pay stub in hand, don't just gawk at the size of Uncle Sam's take. Strategize a few last-minute tax-time maneuvers.

Must do: Put off collecting income, if you can. It's hard to postpone pay, particularly during the spendy holiday stretch. But deferring some compensation -- such as a bonus, or, if you're retired, a retirement account withdrawal -- for one more month may be a better long-term financial move, particularly if you're going to be subject to the alternative minimum tax, or AMT. Also note how your remaining paydays might affect your eligibility to make deductible IRA contributions, both this year and next.

Can wait: Withholding. More than 70% of Americans overpay their taxes each year. While a refund is nice, it's even nicer to earn interest on your money instead of giving the government a free loan. Check your withholdings with the Form W-4 Assistant at paycheckcity.com. You can change your withholdings at any time of the year, so no deadline is looming. Still, you may be inspired to put this on your "must do" list when you see how much you're passing up by letting Uncle Sam have a free loan: The average refund in 2006 was about $2,400. Had that money been sitting in a high-yield savings account earning 4% for the past year, you'd have earned $98 in interest. Invested in the S&P, you'd be bragging about your 15.59% return, or the $379 in interest you?have?on New Year's Eve.

4. Pretty up your portfolio

It's been an up-and-down year on Wall Street. The IRS kindly offers a little salve for those who have taken a hit, allowing investors to reduce capital gains taxes owed on investments held and sold for a profit in regular, taxable accounts by offsetting the tab with capital losses from stocks that have lost value. So if you've gotten hit by stocks like Circuit City (NYSE: CC), Office Depot (NYSE: ODP), or Chico's FAS (NYSE: CHS), getting a tax break is at least a little bit of good news.

How's it done? Sell floundering investments and either put the money in another (but not identical) investment or wait 31 days and buy the investment back (to avoid breaking the IRS's "wash sale" rules).

Must do: Sell your losers. Tax-loss selling must be completed by Dec. 31. But don't do it willy nilly: If you bought stock at multiple cost bases, sell the most expensive shares first. If you don't have capital gains in your taxable accounts to offset the losses, but have investments worth less than you paid, you can use capital losses to reduce your ordinary income by up to $3,000 a year. If you're in the 25% tax bracket, doing so will reduce your taxes by $750.

Can wait: Dumping every loser from your portfolio. Got more stinker stocks than you can use this year? The IRS allows you to carry over your losses for use in future years. Also, you may want to live with your losers a while longer, since a logjam of investors selling off shares may drive prices down even more.

2:31 PM - Dec. 26, 2007 - comments {0} - post comment

Don't worry, be happy!

Patti Kouri is a lifestyle and real estate coach who gives us these ideas on how to stop worrying and start living!

Face it: there's plenty to worry about. If global warming, terrorism and drug-resistant bacteria don't keep you up at night, there are probably things much closer to home.

Everyone worries - even the people who seem blissfully calm. We're hard-wired for a particular kind of worry: fight or flight. It's a physiological response that served us well in the time of saber-tooth cats and mastodons. But what's it doing for us today, when our daily adversaries are more likely to be financial pressures, changing market conditions and too many e-mail messages?

Worry just brings us to a future we don't want. If you can accept for the moment that, to think is to create - that is, you can change your life if you change your thinking - then worrying yourself into a new life is just the flip side of that process. Instead of thinking your way to positive change, you worry your way to negative change. So what can you do about it?

First, don't punish yourself for worrying. It's part of the human condition. You're not crazy. Next, introduce yourself to the worry gremlin. The worry gremlin's enemy is change. It has one job: to keep you exactly where you are - in the comfort zone. When you start setting goals that might stretch beyond the status quo, this little gremlin wakes up and starts throwing (imaginary) obstacles in your way: "oh you can't do that!" or "If you if you take a risk, you could lose every thing," or "it will be way too expensive." Sound familiar? Worrying is giving in to the gremlin. Time for a divorce.

Turn down the volume on the gremlin's annoying voice and create in your mind a vision of what you want. Focus on the image until it's very clear. Use your senses: touch it, taste it, smell it, feel it, hear it and see it.

Now, make a very subtle shift in your thinking, so instead of saying ,"I want" this vision you've created, say, "I have" or, "I am" whatever it is. Keep refining your vision and keep it in the present tense, as if you already have your dream. This is called affirmation. Keep visualizing, bringing your vision into better and better focus, and keep repeating your affirmation.

If you hear your soon-to-be-ex worry gremlin laughing at you or nattering in the background, it means you just need to focus more intensely on your vision and bring it into the present. Really feel the excitement, the thrill, the wonder and the appreciation for having this thing you want so much. The more you feel it, the less you'll hear the nagging voice of the gremlin.

The next step may seem like it's not very important, or like you're not really doing anything, but it's one of the most important parts of this process: take time to have gratitude for what you already have. Acknowledge the littlest things along with the big things. It's easy to forget how much we have to be grateful for, especially when we're worrying. But, if your toothbrush was in the right place, if your coffee tasted good, if a tiny bird stopped at the birdfeeder, if your car started or somebody said Thank You, you've already started an impressive list. Take some time to do this every single day.

Of course the extension of this step is to pass it along: express appreciation out loud, or in writing, to someone else. If it feels awkward, keep practicing.

Finally, do something every day to make you feel good, whether or not you can afford it. When we worry, we start cutting out the things that make us feel good. We tell ourselves we don't deserve it, we can't afford it or it wouldn't be right. But guess what? When you do something that makes you feel good, whether it's getting a facial, going to a movie in the middle of the day, visiting an elderly relative or serving up food at the local mission, that "feel good" shows in your face and in your spirit. It makes you attractive . And attractiveness has two benefits: it gets you more of what you want and it makes the worry gremlin slink off into the shadows.

These are the basic, simple steps in the prescription against worry, but let's look at one more thing you can do. The worry gremlin is sort of a pack animal. It's most comfortable when there are plenty of other worries around. So instead of worrying about one thing (for example, "I have a toothache"), we daisy-chain a whole bunch of worries together: I have a toothache, but if I go to the dentist, I'll probably need a root canal, but I can't afford that because of my car payment, and I could lose my car, and then how will I be able to show property. Or, the root canal will have to be done during the week I promised to visit my mother, or maybe the dentist will find... Well, you get the idea.

This kind of thinking has one result: paralysis. It saps our energy, focuses all our thinking on the negative, and grinds us to a screeching halt. And it has one very easy cure: Do One Thing. Call the dentist. Think of it as the thing you're doing today to make yourself feel good. Do One Thing. Everything else will follow. Congratulations! Your divorce from the worry gremlin is final. Be forewarned: this is an "ex" who likes to make unannounced, annoying visits. But once you've practiced these simple steps, you can always take control and send it packing again. It gets easier every time.

3:43 PM - Dec. 24, 2007 - comments {0} - post comment

Check health care costs before relocating

Specifically, about three in four (76%) adults planning to relocate after retirement said that they consider the cost of healthcare as important or very important in their decision.

In the survey, "cost of healthcare" ranked number three of five, behind "overall cost of living" (92%) and "climate" (81%), but just ahead of "ease of transportation" (69%) and "proximity to friends and family" (49%).

Costs Vary Greatly by Region

Overlooking the cost of healthcare and health insurance can have real consequences for retirees. Costs can vary widely from one area of the country to another. Insurance premiums, Medicare health plans, Medicaid, and long-term care rates can change exponentially. For instance, an average annual premium for a Medicare Supplement insurance policy in New York could be $3,700. If the same policy holder moved to Phoenix, the premium for the same Medicare Supplement plan could be as low as $1,200.

"Too many times, people considering retirement and relocation don't give any thought to how it could affect their healthcare and insurance costs," said Longevity Alliance President Steve Zaleznick. "As retirees grow older, those costs grow larger, so choosing a region that makes those costs affordable is a key component of a sound retirement strategy. And they need to remember if they move again later, they may find healthcare costs increasing if they move back to their home state."

Five Tips for Before You Move

1. Call your current insurer once you've identified the area to which you'd like to move. Ask about how the move would impact your current health insurance plan: Is it available? Is there a cost difference? Are there other plans available that are not available in your current location that might better fit your needs? This is especially important for Medicare beneficiaries who may find a very different selection of Medicare Supplement plans, Medicare Advantage, and Medicare Part D prescription drug plans available.

2. Contact a broker who represents a variety of insurance companies and plans and can identify the available options for you. A different insurance company may have a similar or better plan for about the same or even a better price. Get health insurance quotes from at least two different companies to see how rates and benefits compare.

3. Ask about Medicare Advantage in your new location if you are Medicare eligible. It is usually a lower cost option than a Medicare Supplement Plan and may be the right option for you.

4. Investigate health care costs you will be paying for yourself so that you'll be able to budget well for things insurance doesn't cover. Find out about physician fees, hospital costs, routine exam prices, the cost of any maintenance drugs you take, and the cost of dental care to name a few.

5. Plan for long-term care by finding out about the average cost in your new location. If you have long-term care insurance, check to see if your daily benefit is adequate. If not, check into the cost of supplementing your policy with an additional policy. If you have not yet bought long-term care insurance, get quotes from at least three different companies to compare benefits and cost. And use a company that specializes in long-term care insurance.

The Retirement and Relocation study was conducted online within the United States on behalf of Longevity Alliance between September 17 and September 19, 2007 among 1,509 adults ages 40+, of whom, 381 are likely to relocate when they retire. Results were weighted as needed for age, sex, race/ethnicity, education, region and household income. Propensity score weighting was also used to adjust for respondents' propensity to be online.

3:14 PM - Dec. 22, 2007 - comments {0} - post comment

Thinking of building a new home?

Eric Bramlett of One Source Realty in Austin, Texas has the following tips for anyone thinking of building a home and hiring a contractor to do it.

When you decide to build a home rather than to buy a home, or when you make the decision to remodel the home you already have, you most likely intend to get the job done with the help of contractor. Unfortunately, contractors have earned a somewhat bad reputation because some have failed to live up to their contracts or provide the quality of work homeowners expect. In order to keep yourself from being disappointed by your contractor, it is important that you follow these simple tips.

Tip 1: Ask Your Friends and Family

The single best way to select a contractor is to ask around. If your friends or family members have worked with a contractor who did a good job for them, you should put that contractor high on your list. The more recently the friend or family member hired a contract to work on their home the better. After all, if a contractor just did a great job a few months ago, he or she is likely to still be able to provide the same level of service.

Tip 2: Check References

Of course, you may not know anyone who has recently purchased real estate or who remodeled their homes. If this is the case, you won't have much of a starting point when choosing a contractor. Therefore, it is essential to check the references provided by the contractor. Ideally, you should check into references for finished jobs as well as for jobs in progress. This way, you can check out real estate in varying levels of completion in order to determine the quality of the work.

Before you buy the services of a contractor, you should also talk with some of the references. Ask the references important questions, such as:

• How well did the contractor stay on schedule?
• How happy were you with your real estate when the job was completed?
• Did you feel as if the contractor listened to you when you ran into a problem?
• Were your concerns easily resolved?

Talking with past clients is an excellent way to get an idea of the type of work the contractor does as well as his level of commitment to customer satisfaction.

Tip 3: Check the Contractor's License

If you are going to buy the services of a contractor, you certainly want someone who is properly educated. Before you sign a contract and buy materials for the job, check with your state's Contractor's State License Board. By checking with the board, you can confirm whether the contractor is licensed and you can also find out the contractor's areas of specialty.

When checking on licensing, ask the contractor for his or her pocket license as well as another form of identification. Then, check the license against the other form of identification in order to make sure the names match up. Because it is illegal for a contractor to use another contractor's license, a reputable contractor will have matching identification.

Tip 4: Make Sure the Contractor is Insured

As the buyer, you shouldn't be expected to buy insurance to cover the job. Rather, the contractor should have insurance in place. Check to make sure the contractor is insured against property damage, worker's compensation and personal liability. Ask for a copy of the certificate of insurance to verify coverage, as this will protect you if something goes wrong while on the job. Deciding to buy real estate in order to build your own home or to remodel your current home can be an exciting time in your life. Make sure you do your homework before selecting a contractor in order to prevent your dream from turning into a nightmare.

8:54 AM - Dec. 20, 2007 - comments {0} - post comment

It pays to get a pre-inspection done

In most areas it's a buyer's market, so people can be picky. "Most buyers in this market will try to re-negotiate based on the findings of their home inspection. If the seller is unwilling to make repairs or lower the price, they walk away," says Kathleen Kuhn, president and CEO of HouseMaster.

With approximately two million home inspections collectively performed by its franchise offices, HouseMaster noticed a number of conditions that are more likely to scare buyers away. And sellers do not have to stand by with their fingers crossed to secure a fair sale.

"More and more home sellers are getting a pre-listing home inspection that helps identify potential deal-breaking issues before the house is listed on the market," Kuhn says. "This way, sellers can fix problems and worry less about a buyer walking away later in the deal process."

According to Kuhn, the following are "The Fearsome Four" when it comes to real estate deals:

Roofing Concerns: A new homeowner does not want the expense of roof replacement shortly after closing. Many sellers believe that if their roof is not leaking it is in acceptable condition. However, underlying issues can exist.

Electrical Problems: Some panel models were discontinued and might even pose a fire hazard. Although they are straightforward to replace, the potential fire risk can be scary for prospective buyers.

Structural Issues: Fortunately, major structural issues are the least common defect found in homes, but when they do occur, they can be costly to repair. Note that a professional home inspector won't assess the extent of repairs needed when these conditions are found. Structural engineers and other professionals should be consulted to get specifics on the scope of repairs needed.

Synthetic Stucco or Exterior Insulation Finish Systems (EIFS): Overall EIFS can be effective, economical alternatives to traditional stucco. Unfortunately installation issues often lead to trapped moisture behind the siding, causing mold and extensive deterioration. In many cases the siding has to be replaced, often with a different type of siding which can cost tens of thousands of dollars.

"Sellers lose some advantage when they are caught off guard by issues, even minor ones. In a market where every edge counts, sellers can use tools like pre-listing home inspections and repair records to show that they are conscientious and have taken appropriate steps to sell responsibly and competitively," Kuhn says.

8:50 AM - Dec. 18, 2007 - comments {0} - post comment

Last minute financial things to take care of this year

1. Max out Your 401(k)-It's imperative to check in regarding your 401(k) plan before the end of the year, and ask if you can make a one-time contribution or increase your per-check deduction if you haven't yet reached the contribution limit. If you're in a situation where you can afford to contribute the maximum amount of $15,500, this will give you the greatest tax benefit. But really, any contribution is beneficial because it will reduce the amount of income you are taxed on for 2007. Have extra vacation days left over? See if your employer offers the option to contribute the value of those extra days towards your 401(k)!

2. Take Advantage of Your Health Insurance-If you're enrolled in a health insurance program that has an annual deductible, now's the time to take advantage of it. Squeeze in those last-minute doctor appointments or fill those prescriptions that you've been putting off. Remember, after the first of the year, you start from scratch with a new deductible to meet long before your insurance will help with those medical bills.

3. Charitable Contributions-If you itemize, make charitable contributions before the end of the year to maximize your deductions. Cash is great, but a savvier way is to take advantage of those stocks or mutual funds that you've owned for more than a year by gifting the shares. This not only helps the charity, it helps you too! Instead of selling these appreciated shares and paying tax on the gain, you can just transfer the shares to the charity without any taxable gain to you (nonprofit charities don't pay taxes, so they can sell your shares and avoid capital gains tax as well).

4. Underperforming Stocks: Sell or Hold-If you bought shares of stocks or mutual funds that are now at a loss, this is the time to sell them. By selling them now, you'll be able to deduct up to $3,000 from the amount of salary that you'll be taxed on, or you can offset any gains from sales of stock or mutual funds you've taken this year. Why bring leftover baggage into the New Year? Get rid of it now before it's too late.

5. Use Your Flex Spending Before You Lose it-If you take part in a flexible spending program for medical or childcare costs through your employer, it's important to check in and see how much money you still have left in your account. Most plans are "use it or lose it," meaning that if you don't use the remainder of money left in your account by the end of the year, it's gone! Find out what expenses are allowed under the plan and use up your balance by December 31.

6. Paper Cleanup 2007-Before you start sorting and pitching all of your 2007 paperwork, you need to decide whether you'll be taking the standard deduction or if you'll be itemizing. Here's a tip: If your eligible itemized deductions exceed your standard deduction, it's to your benefit to itemize. Don't start pitching receipts and other important papers until you know exactly what you need to keep and what's okay to throw out. Once you know what you need, make an organized folder for all of these important documents so you're ready to go when April 15 rolls around.

8:46 AM - Dec. 16, 2007 - comments {0} - post comment

Staying sane while traveling for the holidays

There's no denying that the holidays are stressful. There are gifts to buy, meals to prepare, parties to attend; you get the picture. However, when it comes to creating pure anxiety, there is one holiday ritual that surpasses all others. We're talking about traveling. And, whether you're hopping into your car or jumping on a plane, there are a few things you should know.

Before we share our tips, however, let's first talk about how to prepare ourselves mentally for holiday travel. From dealing with a tax audit to a child's temper tantrum, there are countless situations and mishaps in our daily lives that almost everyone would consider unpleasant. The worst part about these trying times is that our personal feelings hardly seem to matter. Despite how stressed out or anxious we allow ourselves to get, the circumstance still needs to be handled.

What does matter is how we behave in these situations. Conducting ourselves with poise and dignity may be difficult, but it's the best approach. Doing so allows us to accomplish our objective more easily, while at the same time remaining a good example to those around us. Stressful situations aren't necessarily our choice. What is our choice is the manner in which we deal with them.

That being said, here are a few helpful tips to help make your holiday travel, dare we say, a joyful experience:

Stay Healthy
This directive may sound strange, but traveling while you're sick or even run-down is the perfect recipe for a miserable trip. The holidays tend to be a time when we concentrate so much on others, we forget about ourselves. Think of this as a gentle reminder to not let this happen.

Eating well and getting a proper amount of sleep and exercise is a great start, but you may also want to consider the regular use of vitamin C (either chewable or powder form) and hand sanitizer to keep colds at bay. Also, consult with your physician about the possibility of getting a flu shot, as they can do wonders for helping your immune system in fighting off the most current flu strains.

Send Your Gifts Ahead
By utilizing this tip, you will be doing yourself a humongous favor. For starters, you will most likely be getting an earlier start to your holiday shopping. In doing so, you will avoid the big crowds and long lines.

Wrap your gifts, package them, and send them off before your post office gets its holiday rush. It may cost you a little extra to ship your gifts, but it will save you much in the way of aggravation. You'll have less to cart along on your trip, and you will not have to worry about getting your gifts through airport security, or having them potentially get damaged during travel. You'll arrive at your destination ready to celebrate.

If you do decide to fly with your gifts, either pack them in a suitcase to be checked or bring them as a carry-on, making sure to keep them unwrapped.

Pack Light…and Smart
Everybody's trip is different, so proving a specific checklist of what to pack is virtually impossible. What we can do, however, is give you some good packing advice.

Rule number one is to pack the least amount of clothes necessary. In order to do that, you must first assess your situation. How long will you be away? After all, there's no sense in packing for 7 days if you're only gone for four. Resist the tendency to pack more than you need by deciding on your specific wardrobe for each day.

Next, what are the weather conditions in your destination city? While the reason for determining the weather is rather obvious, you'd be surprised at how often it's overlooked. If you don't have a reliable source to ask firsthand, simply log on to www.weather.com, a website that lists extended forecasts for nearly every city in the world.

Another question to ask yourself is, will there be any social engagements that may require specialty clothing like a suit or a cocktail dress, or will the duration of your stay be spent bunkered down in the home of a relative? Lastly, will you have access to a washer or dryer at your destination? This helps out tremendously as it allows you to pack fewer clothes. It also provides an opportunity to return home with a suitcase full of laundered clothes.

If you do not have access to a washer or dryer, a great trick is to pack along a few plastic trash bags. They make great hampers for dirty clothes during your trip. Upon your return, they can be packed in your suitcase and serve as a barrier between dirty and clean items.

One last perk of packing light is it gives you more options for your return home. Let's face it, if you travel during Christmas or Hanukkah, there's a good chance you'll be coming back with gifts. The trick is getting them home in one piece without loading yourself down with extra carry-ons.

Many families deal with this issue by having a family suitcase that travels back and forth between households. Use it to pack any of the gifts you've received that you wouldn't consider fragile. Simply check it in along with your other baggage, and it will be waiting for you at baggage claim upon your arrival. As far as breakable items are concerned, you'll either have to ship them or bring them with you on the plane.

Give Yourself Plenty of Time
From traffic delays to heightened airport security, you want to give yourself plenty of time on your day of travel. Here are some tricks for doing so.

If your budget permits, think about staying at a hotel near the airport the night before you leave. Doing so will dramatically reduce your travel time, as most hotels of this nature provide a shuttle service to the airport.

Many airlines now allow you to check-in online within 24 hours of your departure. This practice alleviates the hassle of waiting in long lines at the ticket counter. Simply check your bags with a skycap and proceed to your gate with your printed boarding pass in hand.

Due to security checkpoints and larger crowds, it is recommended that you arrive at the airport in plenty of time before your flight. To find out your recommended arrival time, simply log on to your airline's website or the Transportation Security Administrations website at www.TSA.gov.

Navigating Through the Airport Security Checkpoint
Don't make this experience more difficult than it needs to be. Here are a few tips for quickly getting to your gate.

You will be asked to take off your shoes, so plan accordingly. The best way to go is to wear shoes or sandals that slip on and off as opposed to being tied or buckled.

Avoid wearing clothing that's baggy enough to hide prohibited items, as this could cause you to go through additional screening. Also avoid wearing heavy jewelry and carrying any excess items in your pockets. Remember, you need to remove everything from your pockets prior to entering the metal detector.

Do not forget your photo ID or your boarding pass!

De-clutter any carry-on baggage. This provides the screener a better view of the contents and you a quicker trip to your gate. Limit the contents to only the items you need during the flight. In terms of any liquids and gels, visit the TSA's website for the details of their "3-1-1 for Carry-ons" rule.

Stay Safe and Secure
If you are driving to your destination, and especially if it's for a considerable distance, please make sure to have a licensed mechanic perform a safety check on your car. The nominal charge that accompanies such inspections is far cheaper than paying for towing or repairs.

Make sure your car contains a first aid kit, a working flashlight, a blanket, jumper cables, road flares, drinking water, snacks, and possibly snow chains. If you are traveling with children, the aforementioned supplies, along with toys and games, become even more important.

No matter how you are traveling, you will want to be sure to inspect and secure your home before your departure. Many people make the mistake of waiting until the last minute to do this. Not only does this practice create anxiety for everyone involved, it also opens the door for all sorts of mistakes.

Prepare yourself for worst-case scenarios by bringing along your personal phone book, a cell phone charger, and a credit card. Flights get delayed, sometimes for a long period of time. You never know who you'll need to call, or how much money you'll need if this were to happen. Also, if you take any sort of medication, bring along a greater supply than what's necessary to get you through your trip.

Holiday trips can and should be fun. But merely expecting them to turn out this way isn't exactly the best game plan. So control the elements of the trip that you can with proper preparation. As for everything else? Try not to worry about it. Keep smiling and remember how lucky you are to be celebrating a holiday with the people you care about. Have a safe trip!

3:27 PM - Dec. 14, 2007 - comments {0} - post comment

Some last minute gift ideas

Are you still looking for that "perfect" gift for a loved one - or for a business associate? Here are some ideas that just might work.

The Gift of Pampering
We all work hard, so when it comes to finding a token that will be much appreciated, look no further than the gift of pampering. The best part - it's a gift that works for both men and women, and it can fit into almost any budget.

A prepaid manicure and pedicure is a great gift for almost any female. And for the guys, how about a professional shave? Straight razor shaves are quite en vogue and can be procured anywhere from barbershops to high-end salons.

For a little more money, a prepaid massage is a great way to go. By setting aside an hour, the beneficiary of this gift can experience incredible relaxation, while also allowing their overworked muscles to receive a little TLC.

You can take this idea to an even higher level by prepaying for an entire day at the spa. You must know that such a gift will cost you, but it carries an awesome amount of bang for your buck. A spa day usually involves multiple treatments, including any of the various types of massages and skin care applications. Most often, the recipient also has access to pools, saunas, Jacuzzis, and steam rooms. Some spas may even serve lunch. Whatever day package you decide on, it is sure to be a great gift for anyone.

The Gift that Keeps on Giving
Instead of giving a person just one gift, what if you gave them one gift every month for an entire year? This sentiment can be a reality if you utilize any of the several hundred gift-of-the-month clubs that can be found online.

From potato chips and bacon, to houseplants and neckties, if it's a product that can be shipped, you can find an online club that features it as a gift-of-the-month. These gifts range in price depending on the product, with many of them being appropriate for both men and women. A great way to limit the money you spend is to purchase a 3- or 6-month membership, rather than an entire year.

For a glimpse at the potential options, you can log onto various sites that feature many different clubs. www.monthclubstore.com, www.clubsgalore.com, and www.amazingclubs.com are just three examples of this type of site.

For anyone purchasing a gift-of-the-month-club membership for a business associate, there is an added perk. If you haven't already guessed, we're talking about a monthly reminder that the recipient is an appreciated person. Every time a package arrives at their doorstep, it will serve as a memento of the business relationship.

The Gift in a Basket
While they may seem passé, gift baskets are the ultimate in unique gifts. One reason is that a gift basket can include almost anything. The trick to making it great as well as unique is to find out the recipient's favorite hobby. Give the basket a personalized theme by filling it with items relating to the hobby. Here are a couple of examples.

Let's say the recipient is a golfer. Your gift basket could include golf balls, ball markers, wooden tees, gloves, a gift certificate for a free round of golf, a subscription to Golf Digest, instructional DVDs, collared golf shirts, and the list goes on.

If the recipient of your gift loves to cook, your choices for filling the basket are nearly endless. From food items to kitchen gadgets, almost anything goes. One neat idea is to choose one of your favorite family recipes. Instead of a basket, use either a large colander, stock pot, or baking dish, and fill it with all of the ingredients to make the dish. Write or print the recipe onto an index card, have it laminated, and include it as well. Items like table linens, potholders, and oven mitts are great for lining your culinary gift basket.

The Gift of Spirits
While discretion is required, a nice bottle of wine or a high-quality spirit can make a really great gift. Even if the recipient doesn't consume alcohol, they may still find it useful to have on hand. Quality wine and spirits can be utilized at dinner parties, holiday gatherings, or for entertaining guests. A host or hostess who does not partake may have a difficult time choosing a great bottle for such an occasion.

If you're not sure how the person feels about having alcohol in their home, a great alternative is a high-end bottle of olive oil. Not only is this a unique gift, there aren't too many people who don't enjoy this product. One online purveyor of high-quality Italian olive oil is www.Olio2go.com, where you can find over 70 of Italy's finest artisan brands.

For anyone attending a gathering where alcohol is sure to be served, here is an "Absolut" showstopper gift:

Start by purchasing high-quality vodka, a brand that's good enough to be enjoyed straight up. You'll also need to purchase 1 half-gallon of milk (in a cardboard carton)

Pour the milk into a pitcher, and reserve it for another use. Thoroughly wash the inside of the milk carton. Place the vodka bottle inside and fill the carton 3-quarters full with tap water. Place it in your freezer, and allow it to freeze over night.

Bring your frozen vodka, along with a few bar towels, to the party. Before exiting your vehicle, rip off the cardboard carton. All that's left is to make your entrance holding a top-notch bottle of vodka, perfectly encased in a block of ice. Not only will this gift serve a useful purpose, it will instantly make you the life of the party. Talk about an icebreaker.

The Gift of Greenery
While freshly-cut flowers make for a very nice host or hostess gift, we feel that potted plants are even better. Cut flowers will quickly go south, while a good potted plant can last forever. Every time the recipient looks at their plant, they will most likely think of you.

A unique twist on this gift is a countertop herb garden. Nearly every kitchen or dining area can accommodate one, as they brighten and freshen up a room instantly. They are also utilitarian as the herbs can be used in cooking. A countertop herb planter is the perfect gift for someone who does not have a back yard, or for someone who is simply longing to have a garden.

The Gift of a Getaway
We know what you're thinking; we're going to suggest that you shell out big bucks to send someone on a vacation. Well, you're wrong. Consider that you should give yourself and your family a vacation before you send anyone else on an expensive trip.

What we're talking about is a much more subtle gesture. How about purchasing a one-night stay at either a local hotel, or at a hotel that's within driving distance? For a reasonable amount of money, you will be giving someone the ability to go out for an evening and not return home. This allows the recipient to recharge their batteries, without having to completely rearrange their schedule.

Now that we've put our spin on the subject of unique holiday gifts, it's time to wrap it up. Get it? In all seriousness, the point we're trying to make here is that finding a great gift for a "hard to buy for" person is not about spending a lot of time or money. It's about thinking outside the box.

3:21 PM - Dec. 12, 2007 - comments {0} - post comment

Don't really want the house to sell? Here's how

Paul Pastore, is a broker with Re/max Achievers in Chandler, Arizona. Here is his take on how Sellers can insure that their homes won't sell.

Here are the top ten ways any seller can practically guarantee their home won't sell:

1. Not serious about selling. A sage once quipped, "Money is only important when you don't want something enough." Real estate expert R.L. Brown said that if half of the 58,000 sellers in Maricopa County (Arizona) removed their for sale signs we would be at normal inventory levels. Actions speak louder than words in this market. Discretionary sellers should wait for a less competitive environment.
   
2. Improper pricing. A home properly priced is half sold. No amount of full color ads, glossy flyers, multiple photos, virtual tours, agent luncheons, Goodyear blimps, pom-pom girls or Saint Joseph statues will compensate for the wrong, timid retail price.
   
3. Not listening to your agent. Attorneys believe if you represent yourself, you have a fool for a client. Doctors don't self-diagnose. Professionals use professionals. Even though most people believe they are experts on raising kids and real estate; full-time, career pros usually know what's best. Listen very carefully.
   
4. Micromanage the marketing. Just because you sold cookware in college, carts in California, or carpeting in Cranston does not qualify you to second-guess your agent. If you had a real estate license years ago, tell your children about the "good old days." Share your concerns and timelines, but leave the details to the listing pro.
   
5. Don't stage the property. Someday shag multi-colored, sculptured carpeting will come back. Whitewashed cabinets, Navajo white walls, linoleum flooring, southwest décor, lots of personal photos and Elvis paintings on black velvet should be removed. And, oh by the way loose the long sideburns.
   
6. Let Fido run loose. Recently, I entered a house and two frisky, friendly black Labs ran to sniff me. Unfortunately, I had light gray dress slacks on that day. Both wet stains lasted for hours. Until that day I didn't realize dogs enjoyed chewing the tassels on expensive loafers.
   
7. Talk to the buyers. Life gets lonely at times. Why not ask the buyers where they grew up? Or how much they qualify for. Tell them about the vacant rental next door. Or, the sex offender who left the area. Maybe they could baby-sit next weekend! Why not share war stories, horror movies or meatloaf recipes?
   
8. Sell personal items. Wow, maybe the buyers want to buy the patio furniture, rotary lawnmower or life size statue of Saint Anthony. You only have four more boxes of Girl Scout cookies to sell. Why not ask for a donation for the March of Dimes, the Humane Society or the local PBS station. Remember the saying, "loose lips sink ships?"
   
9. What's that smell? My house doesn't smell of pet odors, baby diapers, curry powder, garlic, fried fish, coconut incense, cigars, manure, mulch, dairy farms or low tide. The buyer must be confusing my castle with a track home.
   
10. Avoid feedback. What do buyers know anyway? Imagine the fact they don't appreciate my barbed wire fence, heavy duty rebar, backyard bomb shelter, airport runway views, lights from the power plant, hum from the high voltage lines, railroad tremors, scorpion skeletons, termite mud tubes and pet snakes.

3:08 PM - Dec. 10, 2007 - comments {5} - post comment

Don't give hackers a Christmas gift

For many consumers this time of the year can offer up a golden opportunity for some great online deals. However, it's important for consumers to also be aware of the plethora of Internet shopping scams, hacker attacks, fraudulent e-mails, and phishing schemes that often run rampant as well.

"Internet holiday attacks get more advanced each year, but many people are still relying on outdated or nonexistent security solutions, which put their computers and identities at risk," said Laura Yecies, vice president and general manager of Check Point's ZoneAlarm consumer division. "To stay safe online this holiday season consumers need to educate themselves on the latest types of threats, and make sure they are running up-to-date and comprehensive security software on their PCs."

Nearly nine in ten consumers regularly or occasionally research products on the Internet before buying in a store, as cited by the National Retail Federation. Yet according to a Check Point-commissioned survey by Harris Interactive®, more than half of adults who use the Internet had neglected to install a software firewall and fewer than one quarter of adults had installed a security software suite to protect against spyware and viruses. Additionally, the survey results concluded that when making purchases online, 97% of online shoppers use their credit card to complete transactions; however, 44% do not consistently verify security symbols when making purchases.

Check Point's security experts offer the following tips to help consumers stay safe while shopping online:

1. Fight holiday fraudsters, hackers and identity thieves by securing your PC. A good firewall, antivirus, anti-spyware, spam and browser protection are all critical. But, keeping up with security updates is even more important.

2. Beware of online phishing scams. Do not give out personal or financial information in response to unsolicited e-mail, nor click links in any e-mail when conducting financial transactions. If you think you've been phished, immediately visit www.consumer.gov/idtheft.

3. Beware that the mere act of gift browsing in online music, gaming and other sites can deliver your personal information into the hands of marketers and scammers. Protect your privacy and your identity with this season's latest computer protection: browser security.

4. Make holiday donations directly to charities and not from links received in e-mails. Check your bank statements regularly and investigate any suspicious charges.

5. Only buy gifts from online retailers that disclose full, verifiable contact information. In addition, look for the little yellow lock at the bottom right corner of the browser window-that indicates a secure site.

3:26 PM - Dec. 9, 2007 - comments {0} - post comment

How to Take a Great Nap

The folks at about.com give us the rules to get the most out of napping.

Napping can be a great way to catch up on sleep, increase productivity and become more creative. Napping puts the body in a relaxed state, which counteracts the effects of daily stress. Studies have shown that napping can actually decrease risk your of dying from heart disease.

How Naps Work

Sleep comes in five stages. If your nap takes you from stage 1 sleep (just drifting off) to stage 2 (brain activity slows), you will wake up feeling energized and more alert. If your nap takes you into stages 3 and 4 (deep sleep), you will not wake easily and will feel groggy and tired. Sleep stage 1 typically lasts about 10 minutes and stage 2 lasts another 10 minutes. That makes the 20-minute nap ideal for most people (your time will vary to some degree, experiment to learn what works best).

How to Nap Effectively

There is some controversy in the best way to take a nap.

It may be that different people have different nap styles. You can experiment with some of the napping techniques below and see what works for you. The best nap is the one in which you fall asleep quickly and stay asleep for the shortest amount of time, while still waking refreshed. Napping too long may actually leave you feeling more tired. Read more about napping techniques below:

Nap Time: Prime nap time is from 1:00 p.m. to 3:00 p.m., when your energy level dips due to a rise in the hormone melatonin at that time of day.

Darkness: Use a face mask or eye pillow to provide daytime darkness and make your nap more effective.

Not Too Late: Napping within three hours of bedtime may interfere with nighttime sleep.

Quiet Place: Assure that you will not be disturbed for the duration of your nap.

30-Minute Maximum: When taking a nap longer than 30 minutes, you run the risk of heading into deep sleep, which will leave you feeling tired and groggy. Naps as short as 1 to 2 minutes could be effective for some people.

Set an Alarm: You will eventually train yourself to nap for the amount of time you set aside. Until then, set an alarm or ask someone to wake you up.

The Caffeine Nap: Some people claim that drinking coffee and then taking an immediate nap works well. The caffeine kicks in somewhere between 10 and 20 minutes, waking them up. They feel extra energy from both the nap and the coffee. Researchers in Japan found that subjects using a caffeine nap rated highest in decreased sleepiness and increased productivity when compared to subjects taking a nap and washing their face, or taking a nap and being exposed to bright lights.

3:04 PM - Dec. 8, 2007 - comments {2} - post comment

Holiday decorating

Decorative Lighting:

- Only decorate with lights that have a NOEL or U/L testing agency label. Check wires, plugs and sockets for defects. Remember: If in doubt - throw them out.
- Do not overload outlets and extension cords. Never tie together more than three extension cords.
- Don't run electric cords under carpet, seat cushions or anywhere they may be crushed or broken.
- Keep electric cords and extension cords out of the reach of children.
- Turn off all decorative lights when going to bed or leaving the house.

Outdoor Lighting:

- Be sure decorative lights used outside are approved for outdoor use.
- Outdoor lights should be hung with insulated staples or hooks rather than nails or tacks.
- When decorating outdoors, be aware of all power lines. Don't work near overhead power lines or anywhere there is a possibility of contacting an overhead power line, either directly or indirectly with a ladder or other piece of equipment. Do not string lights on outdoor trees that are growing into or near power lines - entire trees may become energized if lights come in contact with a power line.

Christmas Trees:

- If you buy a natural grown tree, be sure it is fresh. Cut the trunk on a 45-degree angle, about one inch above the original cut, and place it in a sturdy stand. A large tree should be anchored to prevent it from toppling over and possibly catching fire.
- Be sure to place trees away from fireplaces, radiators, television sets, and other sources of heat that may prematurely dry out the tree and make it more susceptible to fire. Make sure the tree has a sufficient amount of water at all times.
- If you have an artificial tree, make sure it is made of a fire resistant material. Lights should be hung on plastic trees only, never place electric lights on a metallic tree.

Fireplace Safety:

- Don't burn wrapping paper or boxes in the fireplace. These types of materials ignite quickly and may burn uncontrollably. Wrapping paper also may not always burn completely and can become lodged in the chimney creating a fire hazard.
- When cleaning out fireplaces, place ashes in a metal container and store outdoors away from combustibles. Ashes can remain hot for several hours, if not days. Discard ashes only when they have completely cooled.

It's that time of year when houses shine a bit brighter, and many wonder how much the decorative lights add to a monthly electric bill. Bills will vary based on the billing cycle for each customer (what date each month the bill is sent), but the following is an easy way to help calculate energy costs this holiday season.

1. Count the number of bulbs on your indoor tree and all of your other decorative indoor and outdoor lights. For example, 1,000.
2. Check the wattage per bulb - one watt per bulb is common. For example, 1 watt.
3. Multiply watts per bulb by number of bulbs. For example, 1,000 x 1 = 1,000.
4. Convert to kilowatts (kw) - 1000 watts equals 1 kilowatt. For example, 1 kw.
5. Estimate the number of hours in a month the lights are on. For example, 5 hours per day x 30 days = 150 hours.
6. Multiply the total kilowatts by the total number of hours the lights will be on to get the total kilowatt-hours (kwh). For example, 1 kw x 150 hours = 150 kwh.
7. Multiply the total kilowatt-hours by the total cost of electricity. For typical PECO customers, the total cost for generation, transmission and distribution of their electricity is 14 cents per kilowatt-hour. For example, 150 kwh x .14 = $21.
In our example, the total cost of holiday lighting would be an additional $21.

3:09 PM - Dec. 7, 2007 - comments {0} - post comment

Housing Predictor predicts price drops

Home prices are forecast to drop in the overwhelming majority of markets in all 50 states. Housing Predictor independently tracks more than 250 local housing markets in all states and regularly reports changes in each market place to keep visitors up to date on local market conditions.

Some markets, especially in highly populated states, which experienced all time record high appreciation during the real estate boom will see prices plummet at double digit levels in 2008. While others will see less depreciation. The loss in average home values is expected to be the worst since the 1930's, according to Housing Predictor analysts.

The deflation being experienced in most of the nation's housing markets is a result of low mortgage interest rates, overly creative financing provided by mortgage companies and massive mortgage fraud on the part of both mortgage brokers and some home buyers. The series of issues has stalled home sales in the majority of the country after prices in many areas reached all-time highs and has resulted in sales activity of less than a third of the number of sales in 2006.

All real estate markets are local in nature with their own regional economic and political influences, which drive the local market place. Some areas in the Pacific north-west and in southern states will experience less deflation in 2008.

Housing markets that cater to second home and vacation buyers may have already bottomed out in areas of Florida and Idaho. However, Florida also has one of the highest rates of foreclosures in the nation, due in part to over building in the Miami condo market. Miami has seen more new condominium projects constructed in the past few years than ever before in the city's history, and many other projects have been canceled or put on hold until market conditions improve.

3:01 PM - Dec. 6, 2007 - comments {0} - post comment

Holiday entertaining

3:05 PM - Dec. 5, 2007 - comments {0} - post comment

Foreclosures up 30% in Q3

RealtyTrac publishes the largest and most comprehensive national database of foreclosure and bank-owned properties, with over 1 million properties from nearly 2,500 counties across the country, and is the foreclosure data provider to MSN Real Estate, Yahoo! Real Estate and The Wall Street Journal's Real Estate Journal.

"August and September were the two highest monthly foreclosure filing totals we've seen since we began issuing our report in January 2005," said James J. Saccacio, chief executive officer of RealtyTrac. "Although not all areas are being hit as hard as others, the rise in foreclosures is quite widespread, with 45 out of the 50 states documenting year-over-year increases in the third quarter. Given the number of loans due to reset through the middle of 2008, and the continuing weakness in home sales, we would expect foreclosure activity to remain high and even increase over the next year in many markets."

Nevada, California, Florida post top foreclosure rates.

Nevada posted the nation's highest foreclosure rate for the quarter, one foreclosure filing for every 61 households. A total of 16,817 foreclosure filings on 12,982 properties were reported in the state during the third quarter, up 23% from the previous quarter and more than triple the number reported in the third quarter of 2006.

California's third-quarter foreclosure rate of one foreclosure filing for every 88 households ranked second highest among the states. A total of 148,147 foreclosure filings on 94,772 properties were reported in the state during the third quarter, up 36% from the previous quarter and nearly quadruple the number reported in the third quarter of 2006.

Florida documented a third-quarter foreclosure rate of one foreclosure filing for every 95 households, the nation's third highest state foreclosure rate. A total of 86,465 foreclosure filings on 60,992 properties were reported in the state during the third quarter, up more than 50% from the previous quarter and more than double the number reported in the third quarter of 2006.

Other states with foreclosure rates among the top 10 included Michigan, Ohio, Colorado, Arizona, Georgia, Indiana and Texas.

California and Florida registered the top two state foreclosure filing totals for the quarter, followed by Ohio, which came in third with 46,818 foreclosure filings on 35,242 properties. With 44,092 foreclosure filings on 26,773 properties, Texas documented the nation's fourth highest total.

Michigan's total of 43,786 foreclosure filings on 29,655 properties was the fifth highest total.

Other states with foreclosure filing totals among the top 10 included Georgia, Arizona, Illinois, Colorado and Nevada.

12:58 PM - Dec. 4, 2007 - comments {0} - post comment

Is Bigger Really Better? Lot sizes and house prices

June Fletcher, a reporter with the Wall Street Journal Online, has the following article discussing lot sizes:

Question: My wife and I live in Silicon Valley, and we're looking to trade up to a single-family home from our condo. In terms of future capital appreciation, is it better to purchase a newer, larger home on a tiny lot (3,000 square feet and under) or is it better to buy an older, smaller home with a larger lot (8,000 square feet-plus) with room to expand? Most new homes in the Valley are built on very small lots.- Tony Lee, San Jose, Calif.

Tony: Remember that old song, "Give me land, lots of land in the country that I love?"
There's a reason the cowboys sang it.

From the standpoint of flexibility, it usually makes sense to go for the most land you can get. And that's doubly true in Silicon Valley, where lots are scarce and vacant land suitable for building often sells for more than $1 million an acre. Older homes can be remodeled and expanded; but that's not really a possibility if you have a dinky lot.

"You can change the size of the house, but you can never change the size of the land," says Don Orason, a San Jose real-estate agent.

But when it comes to appreciation, there's no real difference. Orason pulled up statistics for two homes in the 95148 ZIP code that recently sold: Both with four bedrooms, two and one-half baths and about 1,900 square feet. The first, 3430 Chemin De Riviere Drive, is 7 years old and sits on a 3,484-square-foot lot. It sold in July 2004 for $721,000 and again in August of this year for $863,000 - a 20% price gain. The second residence, 3710 Slopeview Drive, is 25 years old and has a 10,018-square-foot lot. In July 2004 it sold for $720,000, and it sold for $870,000 in June of this year. That's another 20% gain.

Lot size shouldn't be the sole or even a major factor in deciding which home you should buy - unless, of course, you want a big backyard for pets and/or kids. Instead, look at the quality of school districts (important for resale value, even if you don't have children), views, convenience to shops and work and neighborhood amenities. These things aren't easy to quantify and compare, but they matter a lot to your future happiness.

So do your feelings about remodeling: Does the thought of living in the chaos of an older home during remodeling make you want to tear out your eyeballs? Then a newer home on a smaller lot may be the better choice for you.

I've said it before: Don't think of your house primarily as an investment. Think of it as your home. Find a neighborhood that fits, a house you love, and a fixed-rate mortgage you can afford - and forget about trying to game the market. If you're happy where you are, you are far more likely to stay there awhile - which is, of course, the best way to maximize your investment.

12:35 PM - Dec. 2, 2007 - comments {0} - post comment

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