DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Five Takeaways from the Debt-Ceiling Debatehttp://www.dailyfinance.com/2011/08/02/five-takeaways-from-the-debt-debate/http://www.dailyfinance.com/2011/08/02/five-takeaways-from-the-debt-debate/http://www.dailyfinance.com/2011/08/02/five-takeaways-from-the-debt-debate/#commentsFiled under: , , , ,

U.S. Capitol BuildingAs the debt-ceiling discussion winds down in Washington and everyone laments over the meaning and mutual downside of compromise, our attention should start to turn to a more frightening problem -- the economy is not growing.

Sure, default is off the table now. But the backdrop is negative, and all the hope in the world doesn't change the math. As Jim Cramer of CNBC says, "Hope is never a strategy."

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The real problem is demand. After all, if you don't have a job, you're not buying much. And the only real way for the country to solve this problem is to grow the economy.

In the meantime, those who are weathering the storm best are those who have saved along the way. You can never go wrong with self-control. I hope that one person with that mindset lives under your roof and it's now giving you the comfort to ride out these turbulent times.






In listening around the clock to CNBC, MSNBC, CNN and others, here are -- in my mind -- the five key takeaways from the debt debate:

#1. Cash is king: At DailyFinance we often hear from people looking to earn more interest on their savings. But here's the key: you have savings. What an enviable position to be in. For every year you lived in the less-expensive apartment or neighborhood; for every month you drove the car that wasn't as luxurious as the one in the next lane; for every season you spent more time reviewing your personal finances than planning your family vacation, you've earned a better night's sleep now. The sons and daughters of Depression-era parents seem to inherently get this, but the culture of saving has been largely lost on subsequent generations, many of whom are experiencing a pretty steep learning curve now.

PewResearchCenter | The Washington Post#2. Ridiculous: According to a new Pew poll in The Washington Post, the debt-ceiling debacle has damaged political reputations. "Ridiculous" is the word that comes most frequently to mind when describing the charades in the capitol. This has given Republicans an opening. Mitt Romney was notably absent or -- in a Mittness Protection Program as some have deemed -- during the discussions, but the incredibly telegenic Margaret Hoover was everywhere. He should hire her immediately for his campaign.

#3. Leave us alone: Companies are looking for clarity. They want the space to make decisions, especially when it comes to their most significant cost -- personnel. We recently spoke with Brian Hamilton, CEO of financial-analysis firm Sageworks, about small businesses' hesitancy to hire full-time workers. The overwhelming sentiment about government intervention in the economy is "leave us alone," he says.

#4. Their house is not like our house: Here's the inverse scenario, which suggests that the government should ramp up the stimulus a la World War II. Did Obama underdo it? What should a re-do look like, especially when you consider that his house is not like our house. As Rana Foroohar of Time explains, the president may have to spend his way to growth -- following Keynesian economics -- while, for regular U.S. households, spending would be reckless. It turns out, the simplistic argument that "you have to balance your budget, they should have to balance theirs" isn't really all that relevant.

#5. It's not over till it's over: Even after the debt deal, a downgrade is still possible. If that happens, we're in even more trouble, and so is Obama.

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]]>debtdebt ceilingDebtCeilingeconomyfeatured videoFeaturedVideoNational Debtnational debt ceilingNationalDebtNationalDebtCeilingobamaObama AdministrationObamaAdministrationSavingswashingtonwashington dcWashington-DCWashingtonDcRegina LewisTue, 02 Aug 2011 14:30:00 ESTIRS Gives 'Innocent Spouses' More Time to File for Tax Helphttp://www.dailyfinance.com/2011/08/01/irs-gives-innocent-spouses-more-time-to-file-for-tax-help/http://www.dailyfinance.com/2011/08/01/irs-gives-innocent-spouses-more-time-to-file-for-tax-help/http://www.dailyfinance.com/2011/08/01/irs-gives-innocent-spouses-more-time-to-file-for-tax-help/#commentsFiled under: , , , ,

SpousalIt's a phone call nobody wants to get: one from the Internal Revenue Service, letting you know that you owe money because your spouse or ex-spouse failed to file or pay the taxes. The IRS comes across many of these so-called "innocent spouses," for whom tax trouble comes as an unwelcome surprise.

This week, the IRS changed its policies to help these innocent spouses, in part by extending the length of time they have to seek relief.

"In recent months, it became clear to me that we need to make significant changes involving innocent spouse relief," IRS Commissioner Doug Shulman said in a press release. "This change is a dramatic step to improve our process to make it fairer for an important group of taxpayers. We know these are difficult situations for people to face, and today's change will help innocent spouses victimized in the past, present and the future."


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Jointly and Severally Liable

The heart of the issue is this: When you sign IRS forms with your spouse, you are held jointly and severally liable, which means that if the IRS comes after you for back taxes, there's no such thing as splitting the blame. If your spouse is unable to pay, you may be responsible for the entire amount, unless you can prove innocence as defined by the IRS. And previously, you only had two years to start that process.

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The reason the two-year window was a flawed rule is the same reason that some spouses are innocent in the first place. If you don't know an underhanded game is being played, you can't possibly know the clock has started on your requesting relief. And if your spouse or former spouse lied from the beginning and kept all the IRS notices to themselves, you would never know there was an IRS issue.

If you're separated or divorced, hiding the notifications can be even easier if all the mail is going to the malefactor's new address.

Sparing the Innocent

Paul Talbert, a partner at the matrimonial law firm Chemtob Moss Forman & Talbert, spoke with DailyFinance about the dynamics. "The IRS doesn't give a damn about your divorce agreement," he says. "They don't care who pays."

Even with the most robust clauses indemnifying ex-spouses from future liabilities, they may still be held responsible for one another's past taxes, he says. But he thinks the change in the regulations should help.

How can someone be innocent of involvement in their spouse's fraud? "Often one spouse has little to no understanding of the family's finances," Talbert says. "He or she is not complicit in the fraud. Often he or she has no reason to know about any tax fraud until a divorce is started and he or she is in a lawyer's office reviewing financial documents. This change in the law allows the IRS to go after the people truly responsible for the fraud and spares the innocent victims."

Sometimes spouses may be intimidated into signing tax forms. Abused women may be strong-armed into signing, while other partners may be left in the dark for other reasons. "Maybe your spouse had a gambling problem for years and you had no idea he had an issue, or that he hadn't declared the winnings," says Gregg Wind, an accountant in Los Angeles.

In a Forbes blog post, San Francisco lawyer Robert W. Wood describes the IRS changes as "kinder and gentler," and spells out some of the criteria required to qualify as an innocent spouse. Most notably, spouses have to prove they didn't know -- or have any reason to know -- there was a tax issue, or didn't know the extent of the issue.

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]]>divorceinnocent spouseInnocentSpouseirstaxtax evasiontax relieftaxesTaxEvasionTaxReliefRegina LewisMon, 01 Aug 2011 17:00:00 ESTWill Congress Cure the Problems with Health Care FSAs?http://www.dailyfinance.com/2011/07/29/will-congress-cure-the-problems-with-health-care-fsas/http://www.dailyfinance.com/2011/07/29/will-congress-cure-the-problems-with-health-care-fsas/http://www.dailyfinance.com/2011/07/29/will-congress-cure-the-problems-with-health-care-fsas/#commentsFiled under: , ,

healthcare costsYou practically have to be an accountant to manage your family's health care these days. The good news is, some lawmakers seem to recognize this and are working toward changes to one program that should be well received by employers, employees and doctors alike.

The Medical Flexible Spending Improvement Act (S. 1404) was introduced in the Senate and would allow employees to withdraw and pay taxes on any remaining funds in their flexible spending accounts at the end of the year, removing the controversial "use it or lose it" issue that has left many people frantically trying to fit in dental visits or pick up a pair of eyeglasses to spend down their FSA's in December. One couple even squeezed in colonoscopies on Christmas Eve.

Savvy and organized consumers seem to make good use of their FSAs throughout the year, but it's widely agreed some logical adjustments need to be made to how they are regulated. First, it can be difficult to guess in advance how much money it will make sense to set aside for health care in a given year, and there's currently no option to roll over funds into the next.

"It is time to modernize FSAs to eliminate the burdensome 'use it or lose it' rule," Sen. Ben Cardin (D-Md.) said. "It is both fair and sound health policy to allow FSA participants to cash-out remaining funds at the end of the plan year rather than forfeiting the balance to their employer." The advocacy group Save Flexible Spending Plans is encouraging Americans to "remind Congress flexible spending accounts are part of the solution, not part of the problem."

A Good Way to Prepare for Medical Expenses

Fear of losing the FSA money definitely weighs on the choices of Cathy Davenport of Blakeslee Pa., the mother of two teenage girls. She started using an FSA when her girls needed braces. Now, she finds it's good for glasses and contacts, but she notes: "I always run out of funds in July, because I am scared of losing the money." Removing the "use it or lose it" factor would alleviate this common, understandable concern.

Diedre Ayers of Maplewood N.J., the highly-organized working mother of a 2-year-old son, is a huge proponent of FSAs. She reviews her annual medical expenses when open-enrollment time rolls around and looks forward to signing up for what she describes as "a pre-tax savings account that I don't even have to worry about." That annual routine more than paid off during her pregnancy, as well as when they made a recent trip to the emergency room with their son -- two significant medical events that, even with the best insurance, could have really thrown off their monthly expenses. Instead: "I just pull out my FSA Visa card for the out-of-pocket costs and I know the money is there." She deducts $3,000 to $5,000 annually from her paycheck into her FSA.

One variable viewed as a potential upcoming problem is the $2,500 cap, which will kick in beginning in 2013 as part of the Patient Protection and Affordable Care Act. Employee Benefit News contributing editor Christy Yaccarino makes a compelling case the cap is too low, pointing out that employees will be stuck with substantial out-of-pocket expenses if they get trapped between exceeding the cap and not reaching out-of-pocket spending maximums.

Prescription Rule Is a 'Cure' Worse Than the Problem

Also being revisited is the provision requiring a prescription for buying over-the-counter medicine with FSA accounts. Intended to prevent consumers from unnecessarily stocking up on the likes of aspirin and ibuprofen to deplete their FSA accounts, it instead sent patients flocking to doctors offices just to get a piece of paper. Understandably, that didn't go over well with many physicians, especially when you consider the math on the doctor's side. Dr. Matthew Mintz gives an eye-opening account, explaining that procedures get reimbursed, while time-consuming but less tangible tasks like talking to patients, filling out forms, etc., do not. Moreover, physicians take on liability every time they write a prescription. Doctors simply aren't being compensated to reflect new realities. Even they need to be accountants these days.

Dr. Richard Barron, an internist in a practice with more than 8,000 patients, took on the task, conducting a year-long study to evaluate just how doctors are allocating their time during their roughly 50- to 60-hour work weeks. The numbers tell the story regarding what's keeping doctors so busy in primary care:

On an average work day, each primary care provider in his practice, reportedly:

o. Saw 18.1 patients
o. Handled 23.7 phone calls
o. Answered 16.8 emails
o. Issued 12.1 prescription refills (above and beyond those issued during patient visits).

At least patients appear to appreciate physicians' efforts, even if insurance companies haven't adjusted the way they compensate them. The Deloitte 2011 Survey of Health Care Consumers in the United States indicates just 38% of consumers feel they received value for money spent on health insurance, but fully 61% feel they received excellent or good value on physician or specialist services. It appears our primary issues with primary care really are on the insurance side and we're a wreck about them. The same study soberly reports that 23% of consumers say they feel confident their household is financially prepared to handle future health care costs, holding close to the 24% levels observed in 2010 and 2009. That's not progress.

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]]>CongresscopayFlexible Savings AccountsFlexible Spending PlansFlexibleSavingsAccountsFlexibleSpendingPlansFSAhealth careHealth savings accountsHealthCareHealthSavingsAccountsinsuranceMedical Flexible Spending Improvement ActMedicalFlexibleSpendingImprovementActover the counter medsOverTheCounterMedsprescription drugsPrescriptionDrugsRegina LewisFri, 29 Jul 2011 16:55:00 ESTWeek in Review: Dunkin' Donuts IPO, Netflix Earningshttp://www.dailyfinance.com/2011/07/29/week-in-review-dunkin-donuts-ipo-netflix-earnings/http://www.dailyfinance.com/2011/07/29/week-in-review-dunkin-donuts-ipo-netflix-earnings/http://www.dailyfinance.com/2011/07/29/week-in-review-dunkin-donuts-ipo-netflix-earnings/#commentsFiled under: , , , ,

We connected with Chris Hill of Motley Fool regarding the week on Wall Street to get his take on a few big names. If you haven't been paying close attention, here's what you missed. Dunkin' Brands (DNKN) shares soared on its first day of trading, Netflix (NFLX) posted some surprising numbers, plus much more. Hill shares his take on what the numbers really mean.

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]]>dunkin donuts IPODunkinDonutsIpoNetflix earningsNetflixEarningswall streetWallStreetRegina LewisFri, 29 Jul 2011 09:46:00 ESTAsk the Expert Talks Jobs: Small Business Owners Say 'Leave Us Alone'http://www.dailyfinance.com/2011/07/28/ask-the-expert-talks-jobs-small-business-owners-say-leave-us-a/http://www.dailyfinance.com/2011/07/28/ask-the-expert-talks-jobs-small-business-owners-say-leave-us-a/http://www.dailyfinance.com/2011/07/28/ask-the-expert-talks-jobs-small-business-owners-say-leave-us-a/#commentsFiled under:

As part of our Ask the Expert series, we checked in with Brian Hamilton, CEO of Sageworks, which provides financial data on private companies, for a refreshingly candid take on what's happening, what isn't, and why in the jobs market. He thinks small business owners, responsible for the lion's share of hiring, just want to be left alone. He makes the case to DailyFinance in this video:



"There is always a tendency to inflate our perception of current economic woes," Hamilton notes. "This is especially true if there is little understanding of the past." Kind of like when my kids start complaining they're "bored" three hours into a power outage. Hamilton goes on to explain: "Over the past 40 years, the average time between the growth of GDP after a recession and recovery in employment is approximately 19 months. This means we are doing slightly worse than average."

Based on his timeline, the economy began contracting in December 2007, with GDP growth returning in June 2009. So if you thought the economy was getting an F in job growth, take heart: It's more like a C. And the final report card is still to come.

Need a Job? Begin Your Search Here

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]]>careersfeatured videoFeaturedVideojobsRegina LewisThu, 28 Jul 2011 10:00:00 ESTIs the iPad a Must or a Bust for Students?http://www.dailyfinance.com/2011/07/26/is-the-ipad-a-must-or-a-bust-for-students/http://www.dailyfinance.com/2011/07/26/is-the-ipad-a-must-or-a-bust-for-students/http://www.dailyfinance.com/2011/07/26/is-the-ipad-a-must-or-a-bust-for-students/#commentsFiled under: ,

Apple's iPadTo buy or not to buy an iPad? The bargain-hunting website DealNews.com took a contrarian position on the question, publishing Ten Reasons Not to Buy an iPad for Students. It's a fairly predictable list, but I'll buy into two of their points: The iPad is pricey, and it's potentially distracting.

I've asked CEOs and celebrities, and they readily admit Apple's (AAPL) popular tablet can quickly become a high-end toy for kids. You buy one for yourself, rationalizing that it'll help you to be more current and productive, and the next thing you know, it's primarily being used by someone under age 10 in the back of your SUV.

That's not to say the iPad doesn't have a role -- probably a growing one -- in academic life. I stopped Huffington Post Tech intern Cooper Smith, a Harvard student, in his tracks and asked, "Hey, do you think an iPad is necessary?" He didn't flinch, answering succinctly, "Of course." He said they're everywhere on the Harvard campus, though he pointed out that they're not ideal for classroom note-taking.

Cooper is a computer science major at one of the nation's most elite universities, but tablet technology is also proving effective in engaging disenfranchised students. From Duke University to middle schools, progressive educators are creating iPad classrooms. Apple prides itself providing tools that have changed the educational landscape. If you can get your kids to use it for something other than games, the iPad's educational resources are stunning.

Donnicia Rabatin of Northern V.A., feels iPads are a plus, and plans to get them for her children, ages 8 and 11, this Christmas. Communicating with grandparents is a big draw: Her parents live in Florida, and video chat is truly a game-changer for long-distance relationships. She and her husband expect to control the passwords and restrict access to inappropriate content. They're also hoping the kids will take to math game apps.

Based on what I've witnessed in my own home and from speaking with many iPad users, it's clear the device doesn't replace anything. You still carry a cell phone, and you'll still need a laptop. But it can find a nice niche in your life -- as a calendar, to-do list manager, magazine or just a nice way to answer email on the couch.

There, are of course, iPad alternatives -- Kindle, Nook, Galaxy Tab, Thrive, etc. -- but I'd actually like to thank Apple for simplifying my shopping decisions. At this point, I don't even consider other options -- I'm all Apple, all the time. In fact, I'm heading to one of their retail locations today to inquire about Apple Workshops to make better use of the gadgets we already own. This, I'm told, is their best offer of all.



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]]>Regina LewisTue, 26 Jul 2011 11:30:00 ESTMy Three Cents: Continuing Trouble at the Postal Servicehttp://www.dailyfinance.com/2011/07/23/my-three-cents-delivery-cutbacks-at-the-postal-service/http://www.dailyfinance.com/2011/07/23/my-three-cents-delivery-cutbacks-at-the-postal-service/http://www.dailyfinance.com/2011/07/23/my-three-cents-delivery-cutbacks-at-the-postal-service/#commentsIn DailyFinance's new video series, My Three Cents, personal finance columnist Regina Lewis discusses tips and trends affecting today's consumer market. This week's focus: continuing trouble at the U.S. Postal Service.


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]]>featured videoFeaturedVideomailpost officepostal servicePostalServicePostOfficeRegina LewisSat, 23 Jul 2011 08:15:00 ESTWall Street Week in Review: Mixed Bag of Earnings, Hot IPOhttp://www.dailyfinance.com/2011/07/22/wall-street-week-in-review-mixed-bag-of-earnings-hot-ipo/http://www.dailyfinance.com/2011/07/22/wall-street-week-in-review-mixed-bag-of-earnings-hot-ipo/http://www.dailyfinance.com/2011/07/22/wall-street-week-in-review-mixed-bag-of-earnings-hot-ipo/#commentsFiled under: , , , , , , , , ,

We connected with Chris Hill of Motley Fool regarding the Week on Wall Street to get his take on a few big names. Apple (APPL) smashed earnings expectations -- again -- selling more than 9 million iPads and 20 million iPhones in the quarter. They now have $78 billion in cash and are just $50 billion away from being the world's most valuable company. They've "surprised" on the upside for nine straight quarters. At what point is it not "surprising?"

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In some disappointing news, Chipotle Mexican Grill (CMG) reported lower-than-expected earnings for only the second time in company history. Why the miss? Higher raw food prices and one-time charges were a factor. Turns out, avocados are especially pricey this year. Same-store-sales were still pretty strong and they're still opening news ones. Their breakfast burrito seems to be well received in trials and they are getting ready to launch a new Asian cuisine restaurant in DC. How much potential will the new concept have?

This week brought investors another seemingly hot IPO ... Zillow (Z). Shares soared more than 75% on opening day. They only floated a small percentage of shares, but with only $36 million in ad sales, it looks like they're valued at over $1 billion. Learn why Hill says, "run away!"

Looking ahead to next week, investors can look forward to earnings from Amazon (AMZN), Ford (F), Hershey (HSY), Whole Foods (WFM) and ExxonMobil (XOM).


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]]>amazonchipotleexxonExxon Mobilfeatured videoFeaturedVideofoodfordhersheystock marketStockMarketstockswall streetWallStreetwhole foodsWholeFoodsRegina LewisFri, 22 Jul 2011 08:00:00 ESTMy 3 Cents: Be Grateful for 401(k) Auto-Enrollmenthttp://www.dailyfinance.com/2011/07/21/my-3-cents-be-grateful-for-401-k-auto-enrollment/http://www.dailyfinance.com/2011/07/21/my-3-cents-be-grateful-for-401-k-auto-enrollment/http://www.dailyfinance.com/2011/07/21/my-3-cents-be-grateful-for-401-k-auto-enrollment/#commentsFiled under: ,

Setting anything to automatic has its good and bad points. A 2006 law designed to increase retirement savings allows companies to auto-enroll employees in 401(k) plans: A closer look reveals some interesting pros and cons.



First, the upside: Auto-enrollment has definitely brought more people into the system. Approximately 57% of sizable companies now use auto-enroll and report participation rates above 85%. Let's be honest, millions of people might not have saved a cent if they had to proactively opt in to their 401(k) plans. Some plans even allow you to automatically increase the contribution amount each year. That's a smart move and leads us to the potential downsides of auto-enrollment.

Your employer is picking the default auto-savings rate for you, and they often pick 3%. If employees had to act on their own accord, some analyses reportedly indicate people would chose to save at higher rates. Employers say they keep their automatic rates relatively low to avoid having people opt out altogether -- though some consumer advocates allege their real reason is to keep their own contribution costs down. Either way, auto-enrollment likely means you're not being as aggressive about retirement saving as you could be. In addition, it's important to remember having a 401(k) -- auto-enrolled or not -- is no substitute for a comprehensive retirement plan. There's a tendency to think, "Ah, it's all taken care of." If only it were that easy.

My take: Be grateful if you have a 401(k), especially if your employer matches some of your contribution. The days of defined pension plans are over, so this is this best shot many of us have to put money away systematically. If you were auto-enrolled, take another look at your 401(k) and see if you want to adjust the contribution upward now or an a go-forward auto-escalation basis.

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]]>401kAuto-EnrollmentDodd Frankemployer matching fundsEmployerMatchingFundsfeatured videoFeaturedVideomy three centsMyThreeCentsopt inopt outOptInOptOutparticipationPros and ConsProsAndConssaving for retirementSavingForRetirementRegina LewisThu, 21 Jul 2011 07:30:00 ESTAre 'Divorce Starts' the New Leading Indicator for the Housing Market?http://www.dailyfinance.com/2011/07/20/are-divorce-starts-the-new-leading-indicator-for-the-housing-m/http://www.dailyfinance.com/2011/07/20/are-divorce-starts-the-new-leading-indicator-for-the-housing-m/http://www.dailyfinance.com/2011/07/20/are-divorce-starts-the-new-leading-indicator-for-the-housing-m/#commentsFiled under: , , , , , , , ,

Heather Hendrickson Heather Hendrickson, an attractive 41-year-old mother of two, got divorced, declared bankruptcy and saw the foreclosure process start on her home -- all within the last year.

Back in the '80s when we were in high school together, she was the "it" girl. By 2006, her smile graced real estate ads all over Westport, Conn. Hendrickson had opened her own firm that grew to more than 20 employees. Her handsome husband and the father of her two children was a builder. They were in the zone. Then things startled to unravel fast.

Hendrickson is refreshingly candid about how things went down. If she didn't laugh, she says, she'd cry, and she's admirably quick to own up to her mistakes along the way. "I thought I was doing all the right things," she says with chagrin.

By 2008, the marriage had deteriorated, the business was closed, she was riding the bus and hitching rides with a network of dedicated girlfriends. "I remember begging the financing company to just come pick up the BMW X5." She recalled saying, "Please just take it." They did.

Divorce and real estate

What Divorce Looks Like Post-Recession

A longtime real-estate agent with Coldwell Banker, Hendrickson is also particularly cognizant of the role "the house" (those two words pack a lot of punch) plays in the unfolding drama -- her own and others. Her firsthand experience reflects some intriguing trends, and may indicate that "divorce starts" may be a slight, new leading indicator for housing starts. Not that we would ever wish the former on anyone in any economy.

While not everyone whose marriage ends is immediately breaking ground on a new home, some Realtors say divorcing spouses make up at least a third of their clients. And, any move prompts related spending. Whether you got all of the stuff, half of the stuff, some or none of the stuff, setting up a new household means you'll probably hit the aisles of Bed Bath & Beyond (BBY) and the like sometime soon.

Both divorce rates and housing prices have been down for awhile, but what happens if and when they start to pick up -- and which will pick up first? How will lessons learned and other economic and sociological factors play a part in divorce trends over the next decade? The factors that are currently stalling divorces and housing sales may point us toward entirely new trends based primarily on necessity-fueled compromise. After all, the new divorce isn't generally marked by splitting bulging stock portfolios, paid-off cars and mortgage-free homes. It's about clinging to the house or walking from it, driving cars into the ground and praying at least one of you has a job with health benefits for the kids. Freedom may be the goal, but don't expect it to be glamorous in the post-recession era.


Fewer Divorces and Lower Housing Prices -- Chicken and Egg Dynamic?

A lot of people throw around the "half of all marriages will end in divorce" statistic. According to the Census Bureau, that number is probably inflated, as 55% of American couples reach their 15th anniversary. Further analysis by the National Marriage Project at UVA, indicates the Great Recession, graduating from college and making it to church on Sundays may be the winning marriage trifecta.

It's unclear whether couples will continue with the practices they gravitated toward during the Great Recession if the economy picks up. "The data indicated that about one in five married Americans have been hit with multiple financial stressors," said Bradford Wilcox, director of the National Marriage Project. But some of them are turning adversity into solidarity. "For some, the financial stresses associated with the Great Recession have hurt their marriages. But, for others, this recession has fostered a new commitment to marriage that appears to have improved the quality and stability of their marriages." Maybe it has also made for more civil divorces. It's hard to micromanage and maintain power struggles when you're both just trying hard to meet ends meet.

Marriage project Chart


Renting Is a Sage Interim Move

Marriage stability may not lend itself to housing sales, when you consider the amount of real estate business tied to break-ups. But no matter how you slice it, divorce still has a stigma, and it's not the kind of marketing message you want when selling a home. "Happy sells," emphasizes Sam Rees, an accomplished associate broker with Prudential Carruthers Realtors in Leesburg, Va., near Washington. "Houses in a divorce scenario, especially when it's clear there's strain (read: someone is occupying the pull-put couch in the living room) can feel like they have bad karma." But less-than-ideal living arrangements may come with the territory. If one party leaves abruptly, it could be viewed as "abandonment." Perhaps more often, it has less to do with custody issues and more to do with math. High-end homes often have big-time mortgages. Being too far underwater makes it hard to swim against a loss-aversion current. Negative equity may prompt some couples to stay together, even if it means living on separate floors under the same roof. "We did that," described Hendrickson, "I think more people are doing that than we may think."

So if the negative-equity scenario improves, will there be more make-ups or break-ups? For now, that question remains unanswered, but one side effect is more than apparent -- the rental market is hot. Realtors I spoke with said divorce-fueled short sales and foreclosure sales are one of the factors. Rees advises clients to rent before they buy in a divorce-scenario. "You just can't know what you want at such a tumultuous juncture." A year later, she often sits down with those same clients, and invariably they say, "Thank goodness we waited. I could never have foreseen this variable and that variable." Rees says the rental market in her area is so hot, some new listings are only up for minutes. "A person getting divorced and used to living in a 6,000-square-foot home doesn't want to rent a townhouse. They want a house-house -- and those go fast."



Marketing to the Divorced

Bridget Brennan, CEO of The Female Factor Corporation, contends that the recently divorced are one of the most under-marketed cohorts. "Divorce is a modern-day reality and you're starting to see some subtle changes, with single dads pictured in ads and baby diaper changing stations in men's rooms." It's still a surprisingly untapped marketing target, given that two divorcing people are probably about to spend a lot of cash in an attempt to "normalize" things. Not every company gets the tone right. In my case, Mama Bear instincts kicked in and I went on a "nesting" spree. If you were offering a home-improvement service in my zip code back in 2006, all you had to do was dangle the offer in front of me.

Apparently, that's about to start happening more often. A new service -- "Divorce Shield" -- aims to reach divorcees just when they're most susceptible to offers is starting to get traction. It's aggressively targeting Realtors to lock in zip codes by promising they'll be go-to advocates for divorcing couples looking for help. The advocacy positioning is interesting, and speaks to Brennan's point about the delicacy of marketing to people who are by definition in emotional crisis. I spoke with CEO Gregg Cochran. "We've had a great run," he said, "and it's an honor to be helping people when they need it most." Altruistic or not, there's no question there's something to be said for the timing.

In the meantime, Rees wisely plays the proverbial Switzerland role. "I try to remain really neutral when first meeting with a couple who is divorcing," she says. "If you seem to hit it off better with one party versus the other, they won't view you as objective and you fall into the 'of course, you like her' trap."

Heather HendricksonMoving On

Plowing through traps may be what it all comes down to and Hendrickson is in the thick of it. She's just starting to hit her stride and is doing everything in her power to make it work for the kids. She credits her ex, John, with doing the same. She now has more predictable income and is hoping the bank may consider a loan modification -- a "workout," in banking lingo. But the clock is ticking. She is currently saving up to rent a place in Westport, Conn., in time for the new school year.

To put it all in perspective, let's look at this single family's numbers. Hendrickson and her then-husband bought this adorable house (below) for $421,000 in 2004. They put their property on the market in 2006 for $649,000. It appraised then for $650,000. Now, an appraisal that was part of the foreclosure process values it at $375,000. The bank would have to approve any offer, but it seems like a great candidate for a short sale -- perhaps to another recently divorced buyer.

Heather HendricksonThe twists, turns and math are enough to make your head spin, even if you're lucky enough to be happily married, as many of our old friends are. Right before we hung up the phone, I asked Hendrickson: "Of all our high school friends, did you ever think we'd be having this conversation? Could you have called it?" Her one word answer sums up the unpredictability of the highly volatile and substantial economic phenomenon of divorce, "Never."

Her story also speaks to the promise of a comeback, albeit one invariably financially tied to the job and housing markets. Here's hoping her "workout" works.

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]]>consumer spendingConsumerSpendingdivorcedivorce ratesDivorceRatesForeclosureshousing markethousing startsHousingMarketHousingStartsleading economic indicatorsleading indicatorsLeadingEconomicIndicatorsLeadingIndicatorsmarriagereal estatereal estate marketRealEstateRealEstateMarketrecessionshort sellersShortSellersStaying togetherStayingTogetherunderwater mortgagesUnderwaterMortgagesRegina LewisWed, 20 Jul 2011 14:00:00 ESTMy 3 Cents: When and How to Haggle for Everyday Itemshttp://www.dailyfinance.com/2011/07/18/my-3-cents-when-and-how-to-haggle-for-everyday-items/http://www.dailyfinance.com/2011/07/18/my-3-cents-when-and-how-to-haggle-for-everyday-items/http://www.dailyfinance.com/2011/07/18/my-3-cents-when-and-how-to-haggle-for-everyday-items/#commentsFiled under: , , , , ,

We all know not to pay sticker price for a new car -- and these days, not many houses are selling at asking price either. So it should come as no surprise that the prices for many of the things we buy regularly aren't set in stone. And where there's wiggle room, there's haggling.

Webster's Dictionary defines the word "haggle" as "to annoy or exhaust with wrangling." Ugh. Nobody wants to be that person, though various business owners have told me "that person" is everywhere these days, and "those people" are on a tear.

So, since we know it's happening -- and let's face it, we all need to be doing whatever it takes to keep our budgets in check -- how can you haggle gracefully?

There are two cardinal rules for haggling or smart shopping: preparation and patience. So Google before you haggle, and play the long game.

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On the preparation side, you can take it a step further than just Googling. You know that nagging feeling you get when you have the item you were looking for in your hand and you think: "I wonder if I could do better online? I wonder if it's in stock and cheaper down the street?"

Find out: You can check prices on the fly with your smartphone using the RedLaser app. Simply take a picture of the item's bar code and it'll instantly tell you if the item is available for less nearby or online.

Also, be aware that store managers at major retailers may have some discretion on prices, and small business owners definitely have a say when it comes to the "best they can do."

My take: Above all else, don't be rude. If you do your own homework, you can reasonably expect to get a decent price by presenting simple facts. If the store offers unique customer service benefits -- they know your name, they repair things for you, etc. -- appreciate their intrinsic value and don't try to eat into their often already small margins.

Also, keep in mind, it's not over till it's over. Most retailers offer "price protection" policies: They promise to refund a portion of your purchase price if the product you bought drops in price within a certain time frame -- typically 30 days. PriceProtectr.com, will watch prices so you don't have to. If an item drops in price after you purchase it, they'll let you know.

Do you haggle? If yes, what's your approach? If not, why not?




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]]>adviceAsking pricesAskingPricesbargainingComparison shoppingComparisonShoppingfeatured videoFeaturedVideohagglingHagglingTipsiphoneMy three centsMyThreeCentsRedLaserRegina Lewisregina lewis aol consumer advisorReginaLewisReginaLewisAolConsumerAdvisorsmartphonesticker pricesStickerPricesRegina LewisMon, 18 Jul 2011 11:30:00 ESTMy 3 Cents: Fix It or Nix It? A Gadget Conundrumhttp://www.dailyfinance.com/2011/07/16/my-3-cents-fix-it-or-nix-it-a-gadget-conundrum/http://www.dailyfinance.com/2011/07/16/my-3-cents-fix-it-or-nix-it-a-gadget-conundrum/http://www.dailyfinance.com/2011/07/16/my-3-cents-fix-it-or-nix-it-a-gadget-conundrum/#commentsFiled under: , , , ,

Your favorite gadget just broke, and is no longer under warranty. Should you fix it or nix it?



Repair prices have remained relatively flat over the past five years, while prices for comparable new products in almost every category have fallen. New televisions -- for instance -- have come way down in price and almost never break.
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Any computer over three years old is probably a replacement no-brainer, though you may want to get something particularly affordable so you can spring for the latest and greatest tablet or smartphone too.

When it comes to iPods, the most common issue is battery life. iPod batteries normally last about 18 months to two years, For the average user, that's 250 to 500 charges. One of the major threats to battery life is heat, so keep your iPod out of the sun, and don't leave it in your hot car.

The experts' verdict on iPods: Repair them if you have a high-end model. But your iPod battery is something few of us can swap out on our own: You literally have to disassemble the whole thing to get to it, and Apple doesn't make that easy. Apple offers a battery replacement program for $65 -- well worth it if you have a player that would cost hundreds to replace.

My take: Keep in mind, a free repair can be just a Google search away. Whatever problem you're having with you computer, TV, cellphone, or MP3 player, chances are, someone else has had the same issue. Look for websites and message boards that explain how to fix common problems.

As for whether to fix it or nix it, generally if a repair is going to cost more than half the cost of replacing something, the math doesn't make sense. Skip the fix and trade in your old model -- whatever shape it's in. Works like a charm in our home -- having used the site multiple times, strongly suggest Gazelle.com. They'll give you an instant quote and send a check within the week, You can use the proceeds to offset the cost of buying your next gadget.

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]]>batterycomputer repairComputerRepairConsumer ElectronicsConsumerElectronicsfeatured videoFeaturedVideoGazelle.comipodmy three centsMyThreeCentsRegina Lewisregina lewis aol consumer advisorReginaLewisReginaLewisAolConsumerAdvisorrepairreplacereplacementsmartphonetelevisiontvRegina LewisSat, 16 Jul 2011 08:00:00 EST'Ask the Expert': Netflix Price Hike, More 'Angry Birds'?http://www.dailyfinance.com/2011/07/15/ask-the-expert-special-edition-video-with-motley-fools-chri/http://www.dailyfinance.com/2011/07/15/ask-the-expert-special-edition-video-with-motley-fools-chri/http://www.dailyfinance.com/2011/07/15/ask-the-expert-special-edition-video-with-motley-fools-chri/#commentsFiled under: , , ,

We encourage you to "Ask the Expert" ... Stock-, investment- and market-related questions are pouring in ... So, we're chasing down people on the front-lines, including Chris Hill of Motley Fool. He's a straight-talker, the irreverent host of the nationally syndicated Motley Fool radio show and we look forward to regularly touching base with him. This week, we put him on the spot about everything from market-darling Netfllix's price hike to Electronic Arts' throwing more than a billion at what may be the next "Angry Birds."

Weigh In: We're Just Getting Started ...

See what you think, throw out some questions and keep coming back. We're just getting started. Best is yet to come ...


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]]>angry birdsAngryBirdsElectronic Artsmotley foolMotleyFoolnetflix price hikeNetflixPriceHikeRegina LewisFri, 15 Jul 2011 17:00:00 ESTAsk the Expert: Celebrating Your Personal Finance Successeshttp://www.dailyfinance.com/2011/07/14/ask-the-expert-celebrating-your-personal-finance-successes/http://www.dailyfinance.com/2011/07/14/ask-the-expert-celebrating-your-personal-finance-successes/http://www.dailyfinance.com/2011/07/14/ask-the-expert-celebrating-your-personal-finance-successes/#commentsFiled under: , , ,

In addition to chasing down answers to our readers' questions, we love to hear your firsthand experiences. It's striking to see how resourceful our readers are in making ends meet and weathering economic storms. When we asked "Will you be better off next year?" , at least one reader weighed in with a resounding "Yes!" Here's hoping we have more and more successes to share. Keep 'em coming!




Annie: We are actually going to be better off because my husband finally got a decent job in his field after two years of underemployment and one year of unemployment. Things are looking up! Also, if we hadn't always lived within our means and not had credit card or home equity loans, we would have lost everything. Now, we can just start building up again. Hallelujah!!

Regina: Nice going, Annie. Glad to hear. Good luck & keep us posted on your progress. Best, - Regina

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]]>Ask an Expertask the expertAskTheExpertbetter offBetterOffbudgetingeconomic recoveryEconomicRecoveryfeatured videoFeaturedVideohardshiphiringhousehold budgetHouseholdBudgetjobsmoney troublesMoneyTroublesoutlookreaderssuccessunemploymentRegina LewisThu, 14 Jul 2011 09:00:00 ESTDebt Ceiling Debate: Do You Care -- and Should You?http://www.dailyfinance.com/2011/07/14/debt-ceiling-debate-do-you-care-and-should-you/http://www.dailyfinance.com/2011/07/14/debt-ceiling-debate-do-you-care-and-should-you/http://www.dailyfinance.com/2011/07/14/debt-ceiling-debate-do-you-care-and-should-you/#commentsFiled under: ,

Debt ceilingThe U.S. debt ceiling talks continue to stagnate in Washington, but the degree to which the rest of the country cares seems limited at best. In the meantime, the debate appears to be political theater with two key themes: Treasury Secretary Tim Geithner doesn't want to be the next Hank Paulson, and Republican House Speaker John Boehner will do almost anything for the chance to invite ex-President Obama for a round of golf in 2013.

The chatter on Wall Street reflects a "no big deal" attitude, with some pointing to the recent rally in Treasuries. At least one analyst I spoke with, and many others on business television talk shows, think we've got our eye on the wrong ball with the wrong time horizon.

Overall, Americans seem to care more about the ceiling heights in their often highly leveraged homes, though they are concerned their kids will have to sleep in the financial bed we're making for them. I think people view the interest we pay on the national debt as a personal affront. Even Fed Chairman Ben Bernanke, as he testified on Capitol Hill Wednesday, seemed to be in confession mode. (Read highlights from his testimony here.)

No Big Deal ... At Least Not Yet
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The market seems to be reasonably confident a debt ceiling deal will get done soon -- or soon enough -- and that the Treasury will do what it needs to do to put some extra time on the clock if needed. U.S. Treasuries have rallied for weeks, with a pull-back only recently. But, deals do fall through. As Geithner said on NBC's Meet the Press this week, the longer we go, the greater the concern in the markets about the appearance that we "can't get our act together." How embarrassing. But, does anyone really have their act totally together? Are we judging ourselves by American ideals or modern-day economic realities?

Japan's debt to GDP ratio, for instance, is estimated to be over 200% and the Diet doesn't seem to have raising taxes on the proverbial table. Vishaal Bhuyan, chief investment officer at Nariman Point, is bearish on Japan, and points out their tax revenues are the same as they were in 1986, but expenditures have increased nearly threefold. He thinks the U.S. may be on the same path, but suspects it's 10 to 15 years behind Japan.

If Greece Is Bear Stearns, Italy and Spain Are Lehman Brothers

Bhuyan believes the Greek debt crisis is small beans in the scheme of things. He makes a bank bailout analogy: "Greece sort of reminds me of Bear Stearns. Spain and Italy are Lehman Brothers." Bhuyan contends the swirl around Greece has more to do with preempting the psychological failure. He doesn't see how the IMF and the rest of Europe would be able to bail out the bigger countries, calling them "infinitely more important."

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When Things Will Heat Up

Obama once labeled interest payments on the debt as a "hidden domestic enemy." That enemy may be growing more formidable soon. The president has said all bets are off, and without a deal, even Social Security checks may not get written.
A long-time Washington, D.C., attorney offered me another perspective: "If the standoff gets to Aug. 2 without a resolution, Treasury Secretary Geithner gets to decide who will be paid and not paid. When Republican-oriented defense contractors have to wait to be paid, they will run to their beholden Republican senators and congressmen and scream, 'Get back in there and negotiate a deal, now!' There will be a deal in a week."

In other words, Social Security recipients may leave a message, but the defense contractor's collections officer will likely show up at Congress' door. As for Senate Minority Leader Mitch McConnell's latest move, he added, "McConnell's new proposal to cede to Obama for the rest of his term the power to raise the debt limit unilaterally if no deal is reached is a cute ploy to beat Obama to the punch regarding the possibility that he would play the Constitution card and side-step the Congress. However, the details of the process that the minority leader is proposing probably will kill his otherwise cute trick."




A National Disgrace

Meanwhile, many Americans can't help but wonder what the whole issue means to them, and parents with young children worry about the future we're setting for the next generation. Buddy Schowalter of Leesburg, Va., who has two teen sons and is a pastor, draws on Proverbs 22:26-27, "Don't agree to guarantee another person's debt or put up security for someone else. If you can't pay it, even your bed will be snatched from under you," he paraphrases. "I'm beginning to worry that my children won't have a proverbial bed in which to sleep.

Philadelphia attorney Janesa Checchia, a mother of two teen girls, says, "It still amazes me how many people do not care about issues such as this. I hope that your story can help people to understand that this not only affects them, but generations after us. I hope that my children can flourish. I strongly believe that our present inability to clean up the country's fiscal mess will seriously hamper their ability to do so."

Deb Shaw of Saint Augustine, Fla., worries history may repeat itself: "My 35 year old is doing great but instead of kids moving back home I am very afraid parents will have to move in with their kids. I am remembering sadly all the stories my Grandmother told me about the great depression and stories of my grandfather riding the rails to find work to send money home. It's not that bad YET! I am worried though."

If the banks were "too big to fail," perhaps the debt ceiling is "too high to matter."

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]]>debt ceilingDebtCeilingeconomyRegina LewisThu, 14 Jul 2011 08:00:00 ESTMy 3 Cents: Organic Foods Vs. Natural Foods -- What Do the Labels Mean?http://www.dailyfinance.com/2011/07/13/my-3-cents-organic-foods-vs-natural-foods-what-do-the-label/http://www.dailyfinance.com/2011/07/13/my-3-cents-organic-foods-vs-natural-foods-what-do-the-label/http://www.dailyfinance.com/2011/07/13/my-3-cents-organic-foods-vs-natural-foods-what-do-the-label/#commentsFiled under: , , ,

Last year, overall sales for the grocery industry were up a modest 1.8%, according to the Food Institute. Yet sales of organic items more than doubled that growth rate, up 4.4%. Clearly, we're shopping differently and grocery shopping may never be the same.

Trader Joe's and Whole Foods (WFMI) lean into the organic trend and many major grocery chains, including Safeway (SWY) and Kroger's (KR), have rolled out their own lines of natural and organic items. For consumers, though, deciphering the labels can be tricky.
  • Foods labeled "100% organic" have no synthetic ingredients and can legally use the USDA organic seal.
  • Foods labeled "organic" have a minimum of 95% organic ingredients and are also eligible to use seal.
  • Foods labeled "made with organic ingredients" must contain at least 70% organic ingredients. No seal.
(source: WebMD)


It gets even trickier. "Natural" and "organic" don't mean the same thing. The words "all natural" may be food marketing magic, but the FDA hasn't established a formal definition for the word "natural." It looks like they only object to the labeling if it's put on a food that has added colors, artificial flavors or synthetic substances.



My Take: Go "all natural" all the time, and when it comes to springing for organic items, start with what the nonprofit Environmental Working Group deems the "dirty dozen" -- 12 fruits and vegetables that, when grown by non-organic farmers, are most prone to heavy pesticide residue, among them apples, lettuce and strawberries.



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]]>all naturalAllNaturalDirty DozenDirtyDozenEnvironmental Working GroupEnvironmentalWorkingGroupFDAfeatured videoFeaturedVideofood and drug administrationFoodAndDrugAdministrationgroceriesgrocery shoppingGroceryShoppinghealth foodHealthFoodkrogerslabelsmy 3 centsMy3Centsnatural foodsNaturalFoodsorganic foodsOrganicFoodspesticidessafewaytrader joesTraderJoeswhole foodsWholeFoodsRegina LewisWed, 13 Jul 2011 13:00:00 ESTAsk the Expert: 'Do I Pay Extra When I Swipe My Card?'http://www.dailyfinance.com/2011/07/13/ask-the-expert-do-i-pay-extra-when-i-swipe-my-card/http://www.dailyfinance.com/2011/07/13/ask-the-expert-do-i-pay-extra-when-i-swipe-my-card/http://www.dailyfinance.com/2011/07/13/ask-the-expert-do-i-pay-extra-when-i-swipe-my-card/#commentsFiled under: , , , , ,

We got a lot of reaction to the article about how changes in debit and credit card swipe fees may affect you. Swipe fees are the charges retailers pay when they allow you to use plastic at their store. In reviewing the comments and speaking about the story on radio stations nationwide, one question kept coming up: "Wait, do I pay when I use my debit card?" Some of you jumped in to help clarify that consumers don't pay those fee ... at least not yet.

It's a useful trend to keep an eye on, and the changes may affect debit and credit card offers moving forward. We may even start to see more products offered for different prices -- one if you use cash, another if you use debit, maybe even another if you use a credit card: We'll keep an eye on the retail response and let you know.

It was also helpful to hear the perspective of small-business owners who are faced with hundreds of dollars in related monthly costs. Part of the discussion from our comment board is copied below. Thanks again for weighing in: We look forward to your continued feedback.




Sekinu2: Bit confusing as I have never had a bank that charges a fee to use my debit card for debit or credit purchases??? Is this meant the fees companies get charged by banks to process the cards?

Bbandicoot5: It's not the consumer who sees the fees, it's the retailer. I have a store. We pay hundreds of dollars in fees every month! Hopefully, this will help us out. After we pay employees, rent, processors, electric, etc. and take what we need for personal bills, there's nothing left. We are already doing all the work that we can, ourselves. We're considering working behind the counter and letting that employee go. We don't want to raise our prices, because we wouldn't be a discount shop if we did. That's why people come to us. There's only so much that we can pass on to the consumer. The rest, we have to bear. And that's getting harder and harder to do, as OUR expenses only go up and up.

Regina: Bandicoot5 has great explanation. Sorry this was a bit confusing ... You are right, consumers are not paying directly. You may start to see two different prices for things at retailers because THEY are paying.

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]]>Ask an Expertconsumer protectionConsumerProtectioncredit cardsCreditCardsDebit CardsDebitCardsfeatured videoFeaturedVideoretailerssmall businesssmall business ownersSmallBusinessSmallBusinessOwnersswipe feesSwipeFeesRegina LewisWed, 13 Jul 2011 08:00:00 ESTAsk the Expert: 'Should I Pay Off My Mortgage Early?'http://www.dailyfinance.com/2011/07/12/ask-the-expert-should-i-pay-off-my-mortgage-early/http://www.dailyfinance.com/2011/07/12/ask-the-expert-should-i-pay-off-my-mortgage-early/http://www.dailyfinance.com/2011/07/12/ask-the-expert-should-i-pay-off-my-mortgage-early/#commentsFiled under: , , ,

It's always interesting and instructive to see what money matters are on our readers minds. We've promised to chase down answers for you, and we'll continue to do so. We'll also pull in investment expertise from The Motley Fool. We may even ask some of you to join us via Skype.

Many of you have opened up about your own financial regrets and successes, and we appreciate your candor. So, let's keep the dialog going. Here's a video response to one of the topics raised:


Should I Pay Off My Mortgage Faster?







 Ed asks: I am 57 years old with a couple more years to work before I retire. I currently have an equity mortgage on my home with $30,000. The house payment is less than $100 a month. I pay $1,100 a month toward the loan. Here is my question. Should I be paying minimal on my mortgage and putting the rest in my 401(k) and hopefully make money on that money, or would you pay the house off by continuing to pay the accelerated payment to get it paid off as quickly as possible? What is my smartest move? I think I know, but want to hear a professional's point of view.

Regina replies: Sounds like you are in an enviable position -- hats off to you. If you're on the tail end of your loan and the interest rate tax deductions are not a big factor, you could pay off the house if it would give you peace of mind. The downside is if you needed to get out of the house for any reason, you would have all your money tied up in the property, and we know the current real estate market is rough. Financially, if you can pay the more modest mortgage and contribute to a 401(k), that seems like a smart move. You could also do both -- put $500 extra toward the mortgage and $500 in the 401(k). There's no right or wrong answer on this one if you are otherwise debt-free.

Colleen (a commenter) asks: How can you logically answer that question without knowing what interest rate he is paying on that loan? It could be 9% for all you know.


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]]>401kadviceAsk an Expertdebtearly payoffEarlyPayofffeatured videoFeaturedVideohome equity loansHomeEquityLoansmortgage interest deductionMortgageInterestDeductionmortgagesretirementRegina LewisTue, 12 Jul 2011 13:20:00 ESTTo Understand the Weak U.S. Hiring Numbers, Look in the Mirrorhttp://www.dailyfinance.com/2011/07/12/weak-us-hiring-numbers-small-business-fears/http://www.dailyfinance.com/2011/07/12/weak-us-hiring-numbers-small-business-fears/http://www.dailyfinance.com/2011/07/12/weak-us-hiring-numbers-small-business-fears/#commentsFiled under: , , ,

Finances mirrorDon't bring your work stress home -- it's a staple tip in self-help books. But what about bringing your personal financial feelings to work? If you run or own a business, those gut instincts may meld with and affect your professional decisions. Has the downturn caused you to cancel the landscaping service? Scale back the housekeeper? If that's what is happening under your own roof, it's not too big a leap to understand why you might be tentative to hire, and why the nation's job numbers are so dismal.

"There is almost a universal misunderstanding of the 27 million businesses that create the vast majority of jobs in this country," Brian Hamilton, CEO of Sageworks, points out. "Only about 5,000 businesses in the country are public companies. The rest are privately held, run by people, who -- like the rest of us -- worry about paying their bills, sending their kids to college, and/or saving for retirement."

In other words, they're practical. They have to be. Hamilton goes on to argue it's only logical in this environment that such businesspeople would try to control their biggest operating cost -- personnel. "If someone told you that you might lose your job next month, would you start spending more money?" he asks.

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If you treat your company's money the way you would your own, when it comes to hiring, the allure of "I'll just do it myself" is strong. And, as much as you might like to help someone land a job, it may also feel more humane to postpone. No one with half a heart wants to risk the potential guilt of having to fire someone they've just hired. I'll never forget the head of an exceptionally successful private firm saying, "I hate holiday parties. You meet all the kids, and then when you fire their parents, you see their sad little faces when you try and go to sleep at night."

In 2008, Scrooge hit the holiday parties. CEOs of companies small and large may not be seeing many kids' faces these days. But with unemployment remaining above 9%, sadness abounds.

We'll be speaking on-camera with Brian Hamilton next week about why hiring has been so slow to recover. If you've got specific questions for him, let us know in the comments.

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]]>Brian HamiltonBrianHamiltonemploymentfearhiringjobless recoveryJoblessRecoveryjobslayoffspersonnel costsPersonnelCostssageworkssalariessmall businessSmallBusinessunemploymentRegina LewisTue, 12 Jul 2011 08:00:00 ESTMy Three Cents: How Much are You Looking to Earn?http://www.dailyfinance.com/2011/07/11/my-three-cents-how-much-are-you-looking-to-make/http://www.dailyfinance.com/2011/07/11/my-three-cents-how-much-are-you-looking-to-make/http://www.dailyfinance.com/2011/07/11/my-three-cents-how-much-are-you-looking-to-make/#commentsIt seems like a trick question when the job interviewer asks: "How much are you looking to make?" In today's tough job market, your instinct might be to answer, "I'll take anything." But, you can get a more informed feel for the salary range of various positions and a sense for your current market value by doing a little benchmarking on PayScale.com.




Plotting Your Market Value

Answer a series of detailed questions and the website will produce a graph indicating where you fall on the pay scale, factoring in benefits and other perks -- health coverage, travel expense reimbursement, the kinds of things that factor into the overall value equation. The site has collected salary and career data from over 23 million people covering 12,000 job titles in more than 1,000 industries in 150 countries.

Whether you have a position or are in the job market, it's useful to know if your current or prospective salary is at, above or below the average. There's no point in wondering -- or stewing, as the case may be -- over whether your colleagues are better compensated for similar work. And, if you fall on the high end of the chart, this little online exercise can yield near-instant gratitude: "I just remembered, I really like this job!" Use Payscale as a guide for asking informed questions in conversations with HR, and in negotiating job offers. Just don't overplay your hand, or you may slip off the scale altogether.

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]]>benefitsemploymentfeatured videoFeaturedVideohiringjobsmy three centsMyThreeCentspayscalepayscale.comperkssalarysalary informationsalary negotiationSalaryInformationSalaryNegotiationwage comparisonWageComparisonwagesRegina LewisMon, 11 Jul 2011 14:01:00 EST