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/7 Financial New Year's Resolutions You Should Keephttp://www.dailyfinance.com/2011/12/29/7-financial-new-years-resolutions-you-should-keep/http://www.dailyfinance.com/2011/12/29/7-financial-new-years-resolutions-you-should-keep/http://www.dailyfinance.com/2011/12/29/7-financial-new-years-resolutions-you-should-keep/#commentsFiled under:

New Year's ResolutionsEvery January, you plan to make changes -- you really do. This time, though, succeeding at some of the items on your resolutions list is imperative, not just for bragging rights but for your financial well being.

To give you a jump-start, we asked experts to weigh in on what our personal finance priorities ought to be in 2012. With economic uncertainty still the order of the day, your best strategy for financial health is to control the things you can control.

So, under the heading of "small changes that can add up to big savings," here are 7 financial moves to make in the new year.

Gallery: 7 Financial New Year's Resolutions You Should Keep

8 Financial New Year's Resolutions You Should Keep1. Trim Your Waistline -- and Your Insurance Premiums2. Become a Smarter Shopper3. Simplify Your Day-to-Day Finances4. Increase Your Financial Literacy













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]]>economyemergency fundEmergencyFundFinancial LiteracyFinancialLiteracyhealth careHealthCarehousehold budgetHouseholdBudgetinsuranceinvestingNew Years resolutionNewYearsResolutionpay bills onlinepay down debtPayBillsOnlinePayDownDebtpersonal financePersonalFinanceretirementsaving moneySavingMoneyweight lossWeightLossSheryl Nance-NashThu, 29 Dec 2011 12:40:00 ESTThe Economy Ahead: What to Expect in 2012http://www.dailyfinance.com/2011/12/28/the-economy-ahead-what-to-expect-in-2012/http://www.dailyfinance.com/2011/12/28/the-economy-ahead-what-to-expect-in-2012/http://www.dailyfinance.com/2011/12/28/the-economy-ahead-what-to-expect-in-2012/#commentsFiled under: , , , ,

What to expect in 2012With 2011 fast coming to a close, it's time to think about what's next -- if you dare.

The good news is, there's less talk among the experts of a double-dip recession. But there's also little sign that it's time to pop the champagne cork. The general expectation is for the economy to grow between 2% and 2.5% in 2012 -- not great, but better than no growth.

Some are even more pessimistic. In the recently released annual Bank of America Merrill Lynch 2012 CFO Outlook, 38% of financial executives at U.S. companies said they expected the U.S. economy to expand in 2012, down from 56% in last year's survey and 66% the year before. But only 7% predicted layoffs, and some 46% plan to hire -- the same percentage as planned to in 2011. And 36% said credit had gotten easier to access, compared to 28% last year.

So, there are positive signs, but uncertainly looms large. In the recent Country Financial Security Index, 30% of respondents said they believed 2012 would be better than 2011, 28% said it would be worse and 32% said about the same.

"Next year will be more about the middle and less about the extremes that we've suffered in 2011," says Mark Lamkin, CEO of Lamkin Wealth Management. Over the last four years, the markets had 2% declines about 100 times more than any other time in S&P history. It also recorded 2% daily gains more times that ever before. "Unprecedented was the norm in 2011. Next year will be a year of meeting in the middle."

Expect a modest, but sustained, recovery. The economy won't fire on all cylinders though, predicted Alan Levenson, chief economist for T. Rowe Price: There are too many "what ifs?"

Here's a look at some of the factors that will help determine the fate of 2012.

The Job Market

With unemployment still stuck near 9%, inquiring minds want to know whether 2012 will bring any real relief for job seekers? It may be too close to call. "Job growth picks up in the second half of 2012, but the unemployment rate is expected to be little changed in the fourth quarter of 2012 versus the fourth quarter of this year," said Levenson.

Eurozone Crisis

The European sovereign debt crisis won't be solved over night. Some experts are forecasting a mild recession on the Continent, but others go a step further. "Europe will enter a deeper recession with some of the PIIGS [Portugal, Ireland, Italy, Greece and Spain] defaulting and credit downgrades of some major European banks and governments," says Bill Garrett of Garrett Financial.

The European Central Bank is likely to do either a quantitative easing program, a TARP-style program, or a Eurobond deal if Germany approves, or perhaps a combination of these. "This will put Europe in recession, but avoid a run on banks and a Lehman style event," says Lamkin.

China Taps the Brakes

Slowing demand from China, combined with Beijing's ongoing money-tightening measures, is prompting concern that this vital engine of economic activity may lose momentum at an inopportune time for the rest of the world, said Scott Berg, portfolio manager of T. Rowe Price's Global Large-Cap Stock Fund.

Stock Market Oscillations

For the equities markets, there's just one word -- volatility. The elections, congressional gridlock, and the European debt crisis will be the chief stirrers of the uncertainty pot. "Look for more of the same," says Mickey Cargile, founder and managing partner of Cargile Investment Management. "Investors will need to be patient and have the courage not to bail out of the stock market. I've never seen a stock market that wants to go up as much as this."

Lamkin is optimistic: "With record earnings in the S&P 500 this year, earnings get even better and as confidence returns the P/E's expand for the market," he says. "This leads to a total return in stocks of 8% to 12% for 2012."

Bond Market Inversions

"Risky bonds [will] become 'safe' and 'safe' [will] become risky," predicts Lamkin. "Fixed income bonds face headwinds of higher rates before year's end, six months ahead of the Fed's schedule."

Municipal bonds won't have as good a year in 2012 as they did in 2011, but because of a favorable supply and demand outlook, they should post mid-single-digit gains, says Lamkin.

View Poll

The government and corporate bond yield gap will narrow, says Frank Fantozzi, CEO of Planned Financial Services. The performance gap between government and corporate bonds will reverse in 2012, with corporate bonds outperforming as they post modest single-digit gains as interest rates rise and credit spreads narrow. He says bond yields may be volatile within a 1.7% to 3% range, but he expects them to rise over the course of the year, with the yield on the 10-year Treasury ending the year around 3%.

Ongoing economic growth will help normalize interest rates, as will a continuation of Fed policy, stable inflation and tightening fiscal policy. The wide gaps between yield on government bonds and other bonds are likely to converge some in 2012, says Fantozzi.

Gold Keeps Going

2011 was a bull year for gold, with record prices topping $1,900. Will they keep rising in 2012? David Morgan, publisher of The Morgan Report, which focuses on money, metals and mining, believes precious metals will continue to rise because of the inability of the global financial system to do anything other than take the "easiest" way out of the Eurozone debt crisis: debasing the euro, rather than letting massive debt defaults occur.

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"I do expect a soft first quarter of 2012," says Morgan. "More consolidation through the summer and higher prices by year end. $60 silver by year end 2012 and gold over $2400. But it may take a year to get to those prices."

"If the euro problem does not get resolved in some meaningful way, gold could begin its move much earlier and faster," says Morgan.

Cargile, on the other hand, says there is no reason to buy gold. "Gold produces no income; it depends on someone buying it for more than you paid. It's a manipulated market, and volatile."

Politics As Usual

The U.S. credit rating downgrade was largely caused by political intransigence, and as we roll toward the November elections, it will get harder and harder for the opposing parties in Washington to find common ground. "Political gridlock will continue," says Cargile. "It's working for them, but it isn't for us."

But there's the possibility that as the election nears, Obama and the GOP nominee will leave behind the extremes and meet in the middle, which business likes, says Lamkin. "If voters vote accordingly, the most important budget decisions since World War II will be made with the right candidates with a bipartisan banner. After the election, I believe the market will have a strong fourth quarter based on this meeting in the middle and optimistic outlook."

Housing Begins Its Rebound

The first half of 2012 may be the last great opportunity to purchase a home at the lowest market prices we have seen in many years, and at the lowest interest rates we can remember, says Scott Cramer, endowment strategist and president of Cramer & Rauchegger.

From October 2010 to October 2011, the inventory of existing homes for sale dropped from 3.8 million homes to 3.3 million. That's still an excess of inventory, but we could see a major jump in home sales next year as banks realize that the homes they are holding on to will sell, giving them an incentive to release their inventory more quickly, he says. This could lead to the beginning of a slight increase in home prices by late 2012. The Fed also stated recently that it could ease off its commitment to leave interest rates unchanged until 2013, and could slightly increase rates before the end of 2012.

The Smart Moves for You in 2012

So what does all this mean to you? The experts weighed in on smart moves to make in light of the conventional wisdom about what to expect next year.

o. Seek dividends: One problem companies share with individuals is that their bank deposits aren't making them any money. So some of those earnings are getting paid out in dividends to shareholders. There are many solid, well-run companies with great balance sheets paying more than 4% on an annual basis.

o. Consider small and mid-cap U.S. stocks: These should provide attractive returns for investors in 2012, in part due to mergers and acquisitions activity powered by large corporate cash reserves.

o. Skip emerging markets ... or not: The jury's still out on emerging markets. Some experts say to avoid them, "Buy domestic, not emerging markets or Europe. Buy what you understand. U.S. corporations are strong," says Cargile. But other experts think they're returns will exceed those of developed markets. Long term, emerging markets offer intriguing growth prospects.

o. Get creative: You may have dismissed bonds because with a fixed income vehicle, the interest rate is locked in and principal will be negatively impacted by inflation. However, a step-up bond starts with one rate, then increases after a period of time. This gives the fixed income investor a degree of inflation protection, says Cary Guffey, a financial adviser with NBC Securities.

o. Keep up good habits: The recession tamed consumer spending, sparked saving and inspired us to pay down debt. Don't stop in 2012. Start or continue building your emergency fund until you have at least six months of living expenses stashed. Diversify. Stay cool when it comes to the stock market. The wild ride is far from over. Rethink any rash moves motivated by emotions.

Mostly, be ready for anything.



Gallery: 6 Big Financial Lessons of 2011

1. The Roller Coaster Ride Isn't Over.2. Don't Obsess Over Today's News.3. It's Not Just About the U.S.4. Politics Govern Your Pocketbook.5. Take Control of Your Finances.







Correction: A previous version of this story referred to Mickey Cargile's firm as WNB Private Client Service. In 2011, that company changed its name to Cargile Investment Management.

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]]>2012bondschinaDividendseconomyemerging marketsEmergingMarketsEuropeEurozone debt crisisEurozoneDebtCrisisFinanceinvestingpresidential electionPresidentialElectionreal estateRealEstatestock marketStockMarketT Rowe Price Group IncunemploymentSheryl Nance-NashWed, 28 Dec 2011 12:00:00 ESTU.S. Homes Lose $700 Billion in Value in 2011 -- and That's the Good Newshttp://www.dailyfinance.com/2011/12/23/u-s-homes-lose-700-billion-in-value-in-2011-and-thats-the-go/http://www.dailyfinance.com/2011/12/23/u-s-homes-lose-700-billion-in-value-in-2011-and-thats-the-go/http://www.dailyfinance.com/2011/12/23/u-s-homes-lose-700-billion-in-value-in-2011-and-thats-the-go/#commentsFiled under: ,

housing outlookThe year-end housing news is sobering -- U.S. homes are expected to lose more than $681 billion in value in 2011. But there's an upside -- that's 35% less than the $1.1 trillion lost in 2010, according to new research from Zillow (Z), a real estate information marketplace.

What else did the research show? Just nine out of 128 markets analyzed had gains in values in 2011. Bragging rights go to the New Orleans area, where the gains were greatest at $3.5 billion. Pittsburgh claimed the number two spot with a gain of $2.7 billion.

Who were the biggest losers? Big cities with lots of housing, like Los Angeles, down $75.5 billion, New York ($44.8 billion), and Chicago ($41.7 billion). Overall, more than 90% of markets lost value.

Region

Estimated Home Value Loss/Gain in 2011(i )

Home Value Loss/Gain in 2010(iii)

Total Estimated Home Value in 2011(iv)

Zillow Home Value Index(v) YoY Change (Oct.)

United States

-$681.1 billion

-$ 1.1 trillion

$21.9 trillion

-5.1%

New York, N.Y. MSA

-$44.8 billion

-$46.7 billion

$1.7trillion

-4.4%

Los Angeles, Calif. MSA

-$75.5 billion

-$50.3 billion

$1.7 trillion

-7.4%

Chicago, Ill. MSA

-$41.7 billion

-$56.1 billion

$611.6 billion

-10.4%

Dallas, Texas. MSA

-$11.1 billion

-$19.1 billion

$274.5 billion

-4.9%

Philadelphia, Penn. MSA

-$21.8 billion

-$28.3 billion

$496.1 billion

-4.6%

Washington, D.C. MSA

-$2.9 billion

-$16.5 billion

$779.7 billion

-1.9%

Miami-Fort Lauderdale, Fla. MSA

-$6.5 billion

-$28.6 billion

$479.4 billion

-4.9%

Atlanta, Ga. MSA

-$29.6 billion

-$32 billion

$263.6 billion

-14.7%

Boston, Mass. MSA

-$9.5 billion

-$9.9 billion

$482.2 billion

-2.7%

San Francisco, Calif. MSA

-$29.4 billion

-$27.6 billion

$700.8 billion

-6.3%

Detroit, Mich. MSA

$0

-$12 billion

$180.6 billion

-6.7%

Riverside, Calif. MSA

-$14 billion

-$5 billion

$270.1 billion

-5.9%

Phoenix, Ariz. MSA

-$12.5 billion

-$35.6 billion

$258 billion

-8.4%

Seattle, Wash. MSA

-$22.4 billion

-$29.7 billion

$348.6 billion

-9.4%

Minneapolis-St. Paul, Minn. MSA

-$16.5 billion

-$17.5 billion

$227.1 billion

-9.1%

San Diego, Calif. MSA

-$9.7 billion

-$13.8 billion

$393.6 billion

-5.5%

St. Louis, Mo. MSA

-$11.9 billion

-$6.8 billion

$150.3 billion

-9.1%

Tampa, Fla. MSA

-$10.1 billion

-$16.1 billion

$159.3 billion

-10.7%

Baltimore, Md. MSA

-$8.9 billion

-$15.9 billion

$271.8 billion

-3.2%

Denver, Colo. MSA

-$5.5 billion

-$9 billion

$216 billion

-2.9%


"While homeowners suffered through another year of steep losses, the good news is that homes are losing value at a substantially slower pace as the market works its way towards the bottom," noted Zillow Chief Economist Stan Humphries in the report. "Compared to last year when we saw sharp declines following the expiration of the homebuyer tax credits, this year we saw some organic improvement in home values, in terms of a slowed depreciation rate which resulted in a smaller total value loss for the year."

Keith Gumbinger, vice president of HSH.com, a publisher of mortgage and consumer loan information, suspects that "pockets of strength -- green shoots -- are likely occurring in places where there has been actual job growth." New Orleans, for instance, added 684 new jobs just this week, and more than 10,000 over the past 12 months.

What's the real estate market outlook for 2012? Depends on who you ask. According to Zillow's Humphries, "when we look ahead to next year, the unabsorbed pool of housing supply, dragging levels of consumer confidence, high unemployment and negative equity will continue to put downward pressure on the housing market, pushing our expectation for a potential recovery into late 2012 or early 2013."

Gumbinger is a bit more optimistic, "There's the possibility that more markets will join the 'increasing' fray, provided present improving trends in employment continue. Record levels of affordability, including record low mortgage rates, are starting to have some effect."

Lawrence Yun, chief economist with the National Association of Realtors, takes a similarly rosy view. "With housing inventory down significantly in 2011, home prices could easily turn up in 2012," he says. "If a very modest 3 to 5% price gain, then housing valuation would rise by $500 to $900 billion."

For home buyers, that may mean fewer rock-bottom deals next year--at least not from potential sellers still occupying their homes, Gumbinger says. "The lower-priced deals, if they come, will probably show in the form of additional foreclosed inventory hitting the market as we move past the 'robo-signing' and foreclosure-moratorium mess of 2011."


Gallery: Top 10 College Towns for Buying Foreclosures

1. Palo Alto, Calif.2. Columbus, Ohio3. Louisville, Ky.4. Evanston, Ill.





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]]>CaliforniaeconomyFinanceFloridahome priceshome valuesHomePricesHomeValuesmortgagesNew Yorkreal estateRealEstateSan DiegoSan FranciscozillowSheryl Nance-NashFri, 23 Dec 2011 16:00:00 ESTThe Family Plan: Managing Life in a Multigenerational Householdhttp://www.dailyfinance.com/2011/12/22/the-family-plan-managing-life-in-a-multigenerational-household/http://www.dailyfinance.com/2011/12/22/the-family-plan-managing-life-in-a-multigenerational-household/http://www.dailyfinance.com/2011/12/22/the-family-plan-managing-life-in-a-multigenerational-household/#commentsFiled under: , ,

multi-generationalEight years ago, Charlie McGloughlin and his wife, Amy, extended a helping hand to his parents. His dad was in poor health, and his disability had reduced the couple's income. A house of their own had become too much for the elder McGloughlins to handle.

So Charlie and Amy bought a five-bedroom home in Philadelphia -- big enough to accommodate themselves, their two children, his parents, and a guest. Charlie's dad died shortly thereafter, but his mother, Judy, has since moved in.

As it turned out, the consolidation of the households was a win for everyone.

"We put it out there that we would take care of them, but with this economy, I'm not sure we would manage without her," says Amy of her mother-in-law. Judy's contribution to the mortgage and groceries makes a huge difference -- especially because of Amy's student loan debt. And since Amy works full-time as a pastor, Judy's help with the grandkids is invaluable. "When I was in school she took on a lot of the child care responsibilities," says Amy. "She picks up the slack."

the McGloughlins

The number of multigenerational households in this country is growing fast. As of the end of 2009, 51.4 million Americans lived in a home with three or more generations under one roof; that's one in six of us. And it's nearly 5 million more than the 46.5 million Americans in such households in 2007. Put another way, it's an increase of 10.5%, according to statistics from the newly released Family Matters: Multigenerational Families in a Volatile Economy from Generations United.

It's a trend that's unlikely to reverse anytime soon, even if the U.S. eventually experiences a robust recovery. The reasons are varied, but among them are the 78 million aging baby boomers who will increasingly need assistance, and the country's growing Hispanic and Asian populations, which have cultural traditions of living in extended families.

Easing Financial Burdens

Traditions aside, for many, the reason to set up house with relatives is economic. According to a Generations United survey, 66% of people in multigenerational households cited the economy as a factor, while 21% said it was the only factor. Others attributed the move to a change in job status or underemployment (40%), the burden of health care costs (20%), or a foreclosure or other housing crisis (14%).

And while nobody would say living in a blended household is without challenges, it does ease financial burdens. More than 70% of those surveyed said that going multigenerational improved the financial situation of at least one family member, and half said said that living together made it possible for a family member to continue school or enroll in job training. And then there are the emotional benefits: a whopping 82% agreed that family bonds strengthened despite the stresses.

"If anything good has come out of the recession, it's the lesson that we need each other," points out Donna Butts, executive director of Generations United, which promotes intergenerational collaboration. "Families coming together is not a shameful thing, it's the roots of our country."

Heading Off Potential Problems

Family finances are complicated enough. Add elderly relatives or adult children with kids of their own into the mix and things can easily go off the rails. Children may need help paying bills; grandparents may need help with medical expenses. Grocery and utility bills go up. You might even have to remodel. If you're not prepared, you can end up taking on debt, postponing life events, maybe even delaying retirement.

So if you're already living in a multigenerational household, or thinking about it, what steps can you take to better manage your money -- and your sanity?

For starters, be clear about the reasons for the move. Did the adult couple with children move in to take care of aging parents -- or so that the parents could help take care of the grandkids? Did Junior come home after college because he didn't feel like working or to help pay off student loan debt? The clearer you are up front about motivations, the easier it is to anticipate--and head off--potential conflicts.

Pay attention to emotions. Living together can reveal previously buried fault lines in a relationship. If there's a history of conflict between parent and child, the adult child may worry their newly dependent position will be used against them, says Joshua Coleman, Ph.D., psychologist and co-chair of the nonprofit Council on Contemporary Families. Grown children may feel guilt or shame at having to depend on Mom and Dad again. Parents may worry about putting a strain on the marriage of the adult child they've moved in with.

To reduce stress, any family member who moves in with relatives ought to make a financial contribution to the household if at all possible, Coleman suggests, or find other, non-monetary ways to help out. "Not all family members have the same resources," he says.

Making a Family Plan -- And Sticking to It

Before anybody even touches a moving box, make sure you've tackled the tough questions. Who pays for what? How long is the arrangement going to last? How much is it going to cost?

View Poll


Have a discussion about roles and tasks. "The child returning from college may want everything to be like it was in high school, where the parent paid for everything," warns Daniel Keady, director of financial planning at TIAA-CREF Financial Services. "Establish that the level of financial support is not the same."

In cases when health issues have driven the consolidation of households, create a care-giving budget. Make a list of estimated expenses and determine how much the aging parent, the caregiver, and/or siblings can contribute, says the NEFE's Golden. Encourage parents to share their financial records. Caregivers need their charges' financial account information, the names and contact information of their advisers, and the locations of key documents such as wills.

Brainstorm about what each person thinks is the ideal breakdown on responsibilities. Be clear about roles and boundaries -- who cooks, who cleans, who buys what? What is the standard for looking for a job? What are the expectations?

Talk early and often. It may seem awkward at first, but try holding family meetings, formally or informally."The homeowner has the trump card, the last word, but consensus is better for everyone," says Butts -- though there are exceptions. "If the homeowner is about to lose their home and needs the relative's income, they don't quite have the final say."


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Good Times, Hard Times, Family Times

For the Spencer family (pictured below), it's the logistics that are most challenging. Josephine Merrick, 89, initially resisted leaving the North Carolina home her husband built when they first married. But Merrick, a diabetic, wasn't eating properly. A few times she lost consciousness and was found on the floor of her home.

So three years ago, she agreed to move to the 5-bedroom house in Virginia Beach, Va., where she now lives with her daughter and son-in-law, several adult grandchildren -- granddaughter Que Spencer lives there when she's not away at college -- and soon, a great-grandchild. But Merrick has kept her North Carolina doctors, some of whom are three hours away. "It's been tough for my parents, who work full time, to take off work to get her to doctors' appointments. She is never going to switch," says Que.

Que Spencer and family

It's been great having her grandmother around though, says Que -- especially her cooking. "We all pitch in, make sure she has her medicines and help her get around. We're a close-knit family. We've always taken in family and friends over the years."

The New Normal

Multigenerational households like the McGloughlins and the Spencers may be becoming the new normal. "America is used to being the No. 1 economy in the world, but we're seeing a re-emergence of global competition," says John Hauserman, a certified financial planner with RetirementQuest Wealth Management. "Living together is here to stay. This is not the America with its picket fences, where you put mom and dad in a nursing home."

Generations United suggests that more should be done to meet the needs of multigenerational households. Among their many recommendations, they call on banks and other mortgage lenders to adjust requirements for these borrowers, and for corporations to offer more generous paid-leave options.

Amy McGloughlin says she and Charlie have learned a great deal from the experience. "The old thinking was that everything belonged to one person. But our house is for more than us. All we have is to use and share. It doesn't make sense to hold on to things so tight."


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]]>adult childrenAdultChildrenasianbaby boomers agingBabyBoomersAgingeconomyextended familyExtendedFamilyFamily MattersGenerations UnitedGenerationsUnitedhispanichomehousingjob lossesJobLossesmultigenerational householdsMultigenerationalHouseholdsparentsrecessionsandwich generationSandwichGenerationSheryl Nance-NashThu, 22 Dec 2011 12:00:00 ESTMore People Like Their Banks Than the Governmenthttp://www.dailyfinance.com/2011/12/21/more-people-like-their-banks-than-the-government/http://www.dailyfinance.com/2011/12/21/more-people-like-their-banks-than-the-government/http://www.dailyfinance.com/2011/12/21/more-people-like-their-banks-than-the-government/#commentsFiled under: , ,

Government vs. BanksGuess who's more hated than banks? The folks in Washington.

Yes, despite the din from the Occupy Wall Street crowd, not everybody dislikes financial institutions -- at least, not their own. A new poll from the staunchly libertarian and conservative Reason Foundation and the similarly aligned Arthur N. Rupe Foundation found that 76% of Americans surveyed have a favorable opinion of their own bank, while just 15% gave it a thumbs down.

View Poll

Uncle Sam, by contrast, gets a big thumbs down. A mere 32% said they have a favorable opinion of the federal government as a whole, and 62% rate it unfavorably.

Congress fares even worse: Some 80% of those surveyed said they disapprove of the job it's doing. And, when asked which outcome they feared more, 54% said they're more worried that the government will do something to make the economy worse, while 40% said they're more worried that the government will fail to take action on the economy.

The president, though, fared somewhat better: 49% of respondents approved of the job Barack Obama is doing in the White House, with 47% disapproving.

So, does this means banks have bragging rights?



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]]>Arthur N. Rupe FoundationArthurN.RupeFoundationbanksbanks vs. governmentBanksVs.Governmentcongressconservativeseconomygovernmentlibertariansobamapollreason foundationReasonFoundationsurveySheryl Nance-NashWed, 21 Dec 2011 10:25:00 ESTSecret Santas Share the Wealth, $100 at a Timehttp://www.dailyfinance.com/2011/12/20/secret-santas-share-the-wealth-100-at-a-time/http://www.dailyfinance.com/2011/12/20/secret-santas-share-the-wealth-100-at-a-time/http://www.dailyfinance.com/2011/12/20/secret-santas-share-the-wealth-100-at-a-time/#commentsFiled under: , ,

You don't have to be a billionaire -- nor a jolly, white-bearded figure out of folklore -- to make the holiday season remarkably sweeter for a stranger. Or a lot of strangers. Over the past few years, ordinary people across the country have been taking up the calling of Larry Stewart, the original Secret Santa.

For more than 25 years, Stewart marked the holidays by handing out cash anonymously to random people in need, $100 and sometimes even $1,000 at a time.

By the time he passed away in 2007, Stewart, whose life path had taken him from broke and hungry to millionaire, had given away in excess of $1.3 million, one individual at at time. And thanks to the publicity he got when he allowed his identity to be made public a few months before his death, his legacy continues. A cadre of people have taken up the mantle, anonymously performing random acts of kindness and giving, loosely organized as the Society of Secret Santas.


Going Where the Need Is

One such man told a bit of his tale to DailyFinance -- anonymously, of course; that's the Secret Santa way. Three years ago, he said, the recession motivated him to find a new way to give. He had read about Secret Santas in other parts of the country and decided to try it in Portland, Maine. That first year, he enlisted family and friends to help him give out $10,000 in $100 bills. He did the same in 2009. In 2010, he upped his giving to $20,000, and this week, he'll do it again.

Santa and his crew go where there are likely to be people for whom an extra $100 would be a real godsend. They pass out money to people in Goodwill stores and bus stations, among other places. "We can only stay about five to 10 minutes at one location because people will start calling others and we don't want a mob scene."

"It's an indescribable feeling, the appreciation in their eyes," he says. "It's not like writing a check to a charity."

The beauty of people receiving help this way, he continues, is that they are willing to accept it because it's from "Santa." "There is no stigma attached, they don't have to sign up for it or stand in line."

While he says his own economic situation puts him closer to the "1 Percent" than not, all the divisive talk is off point. "Everybody should focus on how they can help, not what percent they are in. Even if you can't give on a large scale, you can do something."

Secret Santa
Giving Material Wealth, Gaining Spiritual Health

There's something about giving that is uniquely rewarding, says another Secret Santa, who personally knew Stewart. "Seeing the expressions of surprise, disbelief and joy on the faces of those you help, and in hearing their stories. It makes you appreciate what you have and gives you humility as you stand in the presence of their dignity."

He finds his beneficiaries at places like Salvation Army outlets, thrifts stores and laundromats in depressed areas. "I have given from $100 to a few thousand dollars, depending on the circumstances," he says. "That gift in turn can provide a night's shelter, a meal for a family, heat for a home, clothes for children. The list is endless."

Yes, he is wealthy, but in his view real wealth is not monetary. "It's rather spiritual, and for that we are all seeking our fortune. I pale in comparison to men like Warren Buffett and Bill Gates when it comes to giving and making a real difference in the lives of multitudes. People like them are my heroes."

Even the wealthy are feeling the pinch a bit this year, but neither of the two Secret Santas we spoke with said they'd entertained any thoughts of scaling down their giving. "Frankly, given our economy, now is the time to step up, not step back," says Santa No. 2.

Hearing him talk about what it means for him, it becomes obvious why he has no plans to dial back his giving.

"What we do makes even tough men cry," he says. "To personally reach out and give money or a helping hand to someone truly in need, without judgment and without conditions, will enhance your own life, bring you happiness and liberate your soul. I guarantee it. It's all about leadership, and the greatest gift I can give another is the inspiration to pass on random acts of kindness, and that by doing so, we can change the world."

Editor's Note: The Secret Santa in these pictures isn't one of the men mentioned in this article.


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]]>Bill GatescharitychristmaseconomyEntertainmentFeaturesgivinggood deedsGoodDeedsholidaysLarry StewartLocalRandom Acts of KindnessRandomActsOfKindnesssantasecret santaSecretSantaThe Salvation ArmyU.S.Warren BuffettSheryl Nance-NashTue, 20 Dec 2011 10:30:00 EST6 Big Financial Lessons of 2011http://www.dailyfinance.com/2011/12/20/6-big-financial-lessons-of-2011/http://www.dailyfinance.com/2011/12/20/6-big-financial-lessons-of-2011/http://www.dailyfinance.com/2011/12/20/6-big-financial-lessons-of-2011/#commentsFiled under:

Many people can't wait to toast 2011 goodbye -- and good riddance. At this time last year, maybe you thought the economy would be a bit more gracious by now. You might have gotten that raise, that new job, finally sold your house, been able to get a mortgage.

Chances are, your financial dreams didn't come true. Which is not to say there haven't been hopeful signs--chiefly that things aren't worse. But when it comes to the recession, most of us are still pretty much stuck.

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"Even if the experts tell us the recession is over, if it's not over in your household, it's not over at all," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling.

So as we reflect on the year that was, here are half a dozen financial lessons to take away from 2011.

Gallery: 6 Big Financial Lessons of 2011

1. The Roller Coaster Ride Isn't Over.2. Don't Obsess Over Today's News.3. It's Not Just About the U.S.4. Politics Govern Your Pocketbook.5. Take Control of Your Finances.





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]]>Bill GrossBill MillerbudgetingBuy and holdcreditdebtFinanceGoogleGreeceinvestingJohn PaulsonJon CorzineMeredith WhitneyNational Foundation for Credit CounselingPersonal financePersonalFinanceRobert ReedS&P 500savingVolatilityyear in reviewYearInReviewSheryl Nance-NashTue, 20 Dec 2011 07:00:00 ESTHow to Get the Best Deal on Car Insurance for Your Kidhttp://www.dailyfinance.com/2011/12/16/how-to-get-the-best-deal-on-car-insurance-for-your-kid/http://www.dailyfinance.com/2011/12/16/how-to-get-the-best-deal-on-car-insurance-for-your-kid/http://www.dailyfinance.com/2011/12/16/how-to-get-the-best-deal-on-car-insurance-for-your-kid/#commentsFiled under:

Car insuranceIf a car tops your teen's holiday gift wish-list, give as much consideration to insurance as you do the car's make and model and the debate over whether to buy new or used.

And brace yourself for insurance premium sticker shock.

Young drivers keep insurers up at night, and you'll pay the price once your prince or princess gets behind the wheel. The accident rate for drivers ages 16 to 19 is higher than for any other driver age group. Sixteen-year-olds top the list, with an accident rate 3.7 times higher than drivers of all ages, and 1.8 times higher for accidents involving alcohol. The majority of citations given to teens -- 52 percent -- are for speeding, according to Tasha Lockyer, auto insurance editor for NextAdvisor.com, an independent consumer information site.

Car sales are expected to be healthy this month and into the first quarter of next year as prices decline from summer highs, says Lacey Plache, chief economist for car site Edmunds.com. So if you also want to get a deal on car insurance for your child, here's what you need to know.

Consider What Counts

When it comes to what makes up the price of your premium, a few factors come into play, such as the type of car being insured, the age and driving record of the person being insured, and the amount of coverage in the policy, notes Phil Reed, senior consumer advice editor at Edmunds.com.

Where and how often you drive also count. Urban areas are usually more expensive than suburban ones, due to higher rates of vandalism, theft, and accidents. If you live in a city, expect to pay more. The more you drive, the more you can expect to pay. "If your teen is just going to be driving to school and back, make sure you include that information in your quote," says Lockyer.

Speak Up

The squeaky wheel gets the grease. Ask for discounts. For example, full time students can cost a little less to insure because many companies offer "good student" discounts (usually requiring a B average or 3.0 GPA), typically between 10-15%. "The discount is significant. Explain it to your teenager and offer to split the savings if they hold up their end of the bargain by meeting the GPA required by your insurance company," says Reed.
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Then too, if you've been a loyal customer with few or no claims over a long period of time, you might be able to use that as leverage in getting a better rate.

According to editors at shopautoweek.com, if you insure your child on your policy, you might be able to get the insurance company to assign the least expensive car in your house to that teen. Then make sure that's the only car that your teen drives.

Pick Your Car Wisely

You can go back and forth for days about buying new or used. When you're shopping for a car, decide what type you'll be buying, then call your insurance company and ask about the differences in the premium between new and used, and among various makes and models. You can save a good amount of money by choosing a car with a lower premium, says Lockyer. SUVs and high performance cars in particular can be more expensive to insure.

Consider too that discounts are sometimes given for particular safety features and theft prevention items like auto alarms. You also might benefit by agreeing to install a tracking device that monitors your child's driving.

Read Them the Riot Act

As the holidays are a celebratory season, have a serious talk with your teen about the responsibility involved in driving safely and wisely. The majority of teen driver fatal car crashes occur between 9 p.m. and 3 a.m. "Consider limiting your teen's driving after 9 p.m.," says Lockyer.

It might help your rates, as well as your peace of mind, to sign your teen up for a "safe driver" program.

Know the Laws

Many states have graduated driver's license laws. In general, this means that young drivers can only drive with a licensed adult for the first 6 to 12 months of being licensed. Many of these laws exclude driving at night and limit the number of passengers, and/or underage passengers, a teen driver can have in the car. "Be aware of the laws in your state," advises Brian Moody, lead editor for the car marketplace site, AutoTrader.com.

Once you have the insurance figured out, then there's that other matter -- making peace with the thought of your baby on the road.



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]]>car insurancecar insurance costscar insurance premiumsCarInsuranceCarInsuranceCostsCarInsurancePremiumscarsinsuranceinsurance discountsInsuranceDiscountssafe driversSafeDriversteen driverteen driver accidentsTeen driversTeenDriverTeenDriverAccidentsTeenDriversSheryl Nance-NashFri, 16 Dec 2011 14:30:00 ESTRetirement Anxiety Spreads Among the One Percenthttp://www.dailyfinance.com/2011/12/15/retirement-anxiety-spreads-among-the-one-percent/http://www.dailyfinance.com/2011/12/15/retirement-anxiety-spreads-among-the-one-percent/http://www.dailyfinance.com/2011/12/15/retirement-anxiety-spreads-among-the-one-percent/#commentsFiled under: ,

RetirementWhen it comes to retirement, apparently even the well-to-do are wallowing in anxiety. A new survey of the affluent from Wells Fargo & Co. (WFC) revealed that the wealthy are losing sleep over their lack of preparation for the good old days down the road, much like the less monied crowd.

"It's surprising that fears and concerns about retirement can be felt along the income spectrum," says Karen Wimbish, director of Retail Retirement at Wells Fargo.

Don't feel like you're the only who needs to spend more time in discount and dollar stores. Of those surveyed, 37% say that they will need to significantly cut back their spending to save for retirement, including nearly half of those with $100,000 to $250,000 in investable assets.

What's the biggest fear? It's that they "will do all the right things today and it still won't be enough for tomorrow," say 40%. Nearly 10% fear that they "will have undersaved and won't recover."

Even a third of those who have a written plan say that they are not confident that they will have saved enough.

According to the survey, the golden years will get further and further away. Of those with assets, 19% of people with $100,000 to $250,000 feel that they will need to work until "at least 80"--not vastly different than the 25% of middle class people who said the same thing. Among all the affluent surveyed, 12% say that they will work until 80.

There are gender differences too. Twice as many affluent women think they'll need to work until 80 in order to retire comfortably (18% of women compared to 8% of men). Women are also more likely to expect that they won't be able to leave an inheritance (35% versus 26%). This expectation was most prevalent among people in their 50s (38%).

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While most everybody is worried about having enough for retirement, the survey does reveal some significant differences between the wealthy and middle class.

Among the affluent, 54% have a written plan, compared with 30% of the middle class. But those plans aren't worth bragging about. Almost a third didn't have details, like how much savings would be withdrawn, average life expectancy, and how long savings will need to last, or a budget for retirement. However, nearly 60% of the affluent plan to work in their retirement years, while 74% of the middle class say that they will. It's notable too that 39% of the affluent will work in retirement because they want to rather than out of financial need.

What's the takeaway? Instead of stewing in insecurity, step up your game. Getting started doesn't have to be hard. Says Wimbish, "Speak with a financial adviser. Start with having a plan which asks the right questions. Save from your 401(k) or any other employer-based program. Reduce debt."




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]]>investingPersonal FinancePersonalFinanceretirementsavingSheryl Nance-NashThu, 15 Dec 2011 08:30:00 ESTWhat You Don't Know About Health Insurance May Cost Youhttp://www.dailyfinance.com/2011/12/14/what-you-dont-know-about-health-insurance-may-cost-you/http://www.dailyfinance.com/2011/12/14/what-you-dont-know-about-health-insurance-may-cost-you/http://www.dailyfinance.com/2011/12/14/what-you-dont-know-about-health-insurance-may-cost-you/#commentsFiled under: ,

What You Don't Know About Health Insurance May Cost YouWhen it comes to health care, it sometimes feels like nothing is simple. And that can be a real problem: According to a recent survey, some health care basics are going right over the heads of many Americans.

For example, only 55% of those surveyed felt sure that they knew what a deductible is. Fewer still said they could define or explain terms like premium (41%) or coinsurance (25%).

"This is significant because these terms describe money coming out of consumer's pockets toward their own health insurance coverage and medical care," says Brian Mast, vice president of communications at eHealthInsurance, which sponsored the Kelton Research survey.

And when it comes to the Democrats' health care reform plan, all the media coverage about it may not be getting through to people. Only 45% of those surveyed realized that adult children are already able to stay on their parents' health insurance plan until they're 26. By contrast, 42% believe that people with pre-existing medical conditions can no longer be declined coverage by insurers, but that aspect of the legislation won't go into effect in 2014. Further, nearly 30% believe that people without employer-provided health insurance are required to purchase coverage now -- that won't be the case until 2014 either.

"It is a scary thought that many Americans continue to not know what's available to them as a result of the Affordable Care Act," says Ankeny Minoux, president of the nonprofit Foundation for Health Coverage Education. Their health insurance status is at stake. Without proper protection, many people suffer severe financial hardships from unforeseen medical expenses.

Devil of a Time with the Details

Beyond the big-picture misunderstandings, astonishing numbers of people are at a loss for the details of what they personally spend their health care dollars on. Fully 83% of those surveyed were unable to say for sure if their plans covered doctor's office visits, and 80% weren't sure about prescription drugs. There was confusion too, about whether their plans covered diagnostic services like sonograms, MRIs, X-rays, overnight hospital stays or immunizations.

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Much as people like to groan about the high cost of health insurance, only 47% of those surveyed even knew how much they contributed from their salary toward their premiums, and about a third could say how much they paid toward the monthly premiums of their spouses and children. And as for how much their employers chipped in, only 18% knew.

Distressingly few people review their health insurance on an annual basis -- only 36%. "They were more likely to make an annual review of their cell phone (40%), and Internet (39%) costs than their health insurance," says Mast. "For most of us, annual health insurance and medical expenses are a lot greater than our phone and Web access expenses."

How can you know if you're getting the most out of your health insurance dollars if you don't know what you're paying? Can you find more affordable coverage options for healthy dependents? Are health insurance costs equitably split between you and your company? If you don't know the answers to those questions, you're doing your wallet no favors.

If you don't know what you don't know, study up. Start by getting more informed about healthcare reform, and tapping resources like the Foundation for Health Coverage Education, the Department of Labor's Employee Benefits Security Administration, or www.ehealthinsurance.com and their free book, Individual Health Insurance for Dummies.

Before signing up for coverage, consult a health specialist to make sure you are making the right decisions. The U.S. Uninsured Help Line can answer general questions about programs, eligibility requirements, benefits, costs, and you can get a referral to a health insurance broker in your area who has signed on with the nonprofit's volunteer network to help you work through the health care maze.

Being confused by health care can be costly -- so get the facts.



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]]>Affordable Care ActAffordableCareActcopaycoveragedeductibleeconomyEmployee Benefits Security AdministrationHealthhealth carehealth care reformhealth insuranceHealthCareHealthCareReformHealthInsurancePatient Protection and Affordable Care ActSheryl Nance-NashWed, 14 Dec 2011 07:00:00 ESTWhat Insurers Could Do With Your 'Social Media Score'http://www.dailyfinance.com/2011/12/12/what-insurers-could-do-with-your-social-media-score/http://www.dailyfinance.com/2011/12/12/what-insurers-could-do-with-your-social-media-score/http://www.dailyfinance.com/2011/12/12/what-insurers-could-do-with-your-social-media-score/#commentsFiled under:

Here's yet another reason to watch what you say and do online: Insurance companies are already surfing social media sites to get the scoop about their customers, and what their data-miners find may soon be compiled into a new way to rate you as a risk: a social networking score.

Right now, vendors are building tools to automate the process of searching social media. Such technology would allow insurers and other companies to more easily mine data from Facebook, Twitter and other sites, explains Michelle Megna, managing editor of Insurance.com.

And, just as insurers use credit scores as a factor in assigning you to a risk box, that data could be used to create a social networking score, says Megna.

She isn't alone in thinking the next step may be a social media score. "I think we're going to see data mining companies sweeping the Internet and collating public data about what you like and say and where you go online and use that info to create a social media score that companies can buy," predicts Douglas Heller, executive director of Consumer Watchdog. "And they'll use that to decide how much to charge or whether or not to sell insurance to an individual based on that."

Your digital DNA is gold to insurers. Your online activity -- everything from Facebook Likes, tweets, online searches or membership to a health website -- serves as background to insurers as they're setting rates or claims. "They are using this data to compile detailed dossiers of individuals," says Michael Fertik, founder and CEO of Reputation.com.

He says there is evidence in the media and industry reports that insurers are beginning to use social data to determine rates. "The backbone is in place -- [a massive data industry] to help facilitate the use of social media data and online information by insurance companies."

There is no question that at least some insurance companies already use the Internet and social media as part of their underwriting and/or claims handling process, says Michael Packer, attorney with Marshall, Dennehey, Warner, Coleman & Goggin, which represents insurers.

Proof in Pictures and Words

How can your online presence prove problematic? If you say you've got a knee injury but post photos of yourself crossing the finish line in a marathon, the gig is up.

A life, health or disability carrier who is writing a policy would be interested in knowing whether an applicant engages in dangerous activities such as sky diving, shark diving, an appetite for travel to war-torn countries. If the underwriter sees the applicant's Facebook page has tons of photos of them shark diving off the Great Barrier Reef or doing relief work in the Congo, they might change their mind, says Packer. Similarly, if an applicant says he's a nonsmoker, he might have a problem if his Flickr account has photos of him clubbing in South Beach with a cigarette in hand. And if you "Like" Twinkles and Oreos on Facebook, that knowledge of your unhealthy taste in snacks might give pause to a life or health underwriter, explains Mike Fitzgerald, a senior analyst with Celent, a financial research and consulting firm.

It's not that insurers are nosy: It's just business. "They are using social media for due diligence and to verify information so that a risk is properly and fairly rated," says Packer. It doesn't do you any good to be untruthful in your application. If you later make a claim and then the insurance company finds out the truth, the company will have the right to deny the claim or rescind the policy from the date of the original inception, says Packer.

Online data has also been used to dispute claims. There are numerous cases reported where someone has claimed to be disabled (a back injury suffered on the job, for example), but a social media posting contains pictures of them dancing or engaging in other strenuous, recreational activity," says Fitzgerald.

The reverse is also true. "I have been involved in claims where information I found on Facebook or online message boards have confirmed the validity of a claim," says Packer.

You may not like the idea of being watched so intensively, but there's an upside if you're among the honest. Insurance fraud hurts not only the insurance companies, but everyone, because it adds 10% to the cost of the average policy. If insurers can bust more fraudsters, it could mean that eventually, your policy would take a smaller bite out of your wallet.

Brag on Yourself

The fact that your social media profile is being watched doesn't have to be all bad, though. It also gives you the opportunity to show what a good gal or guy you are. For example, if you "check in" to a health club using a service like Foursquare, it can indicate that you are a good risk, because you're exercising and may have a healthy lifestyle -- good news for health and life insurers. If you blog about winning the office weight-loss contest, or comment about how you traded in your sports car for a minivan, would it help your rates? Maybe.

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Regardless, your social media score will be only one measure insurers can use to determine your premiums, whether you qualify for coverage, or whether your claim is valid. Insurers are regulated by state laws, and some dictate which criteria can be used in their decisions. State regulations govern what information insurers can use when setting prices, deciding whom to accept or reject and even how an individual's privacy is safeguarded.

"I have no idea if there are state laws that could prohibit the use of social media content for setting insurance rates, but I'd expect there'd be some sort of debate over this at some point," says Megna.

Nor is it clear if social media snooping will be done routinely or not. "It's most likely to happen if there are red flags involving a claim. Then an investigator will step in and start looking, and that looking will include social media," says Jeanne Salvatore, senior vice president and consumer spokeswoman for the Insurance Information Institute.

Be sure you have proper privacy settings so that only those you want to have access to your online life. Don't forget too, to tell your BFFs not to share your stuff. Who knows how "private" their pages are.

Privacy settings or not, your right to privacy could go out the window if you're involved in a lawsuit with an insurer. "Courts have ruled in some cases that private social media postings are discoverable," says Megna.

Lastly, says Packer, staying out of the spotlight is easy. When it comes to completing your application or filing a claim, "Be honest."


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]]>facebookFlickrFourSquarehealth insuranceHealthInsuranceinsuranceinsurance fraudInsuranceFraudLife InsuranceLifeInsurancesocial mediasocial networking scoresocial networksSocialMediaSocialNetworkingScoreSocialNetworkstechnologySheryl Nance-NashMon, 12 Dec 2011 07:00:00 ESTRecalibrating Your Holiday Tipping for Today's Tight Timeshttp://www.dailyfinance.com/2011/12/08/recalibrating-your-holiday-tipping-for-todays-tight-times/http://www.dailyfinance.com/2011/12/08/recalibrating-your-holiday-tipping-for-todays-tight-times/http://www.dailyfinance.com/2011/12/08/recalibrating-your-holiday-tipping-for-todays-tight-times/#commentsFiled under: ,

How to Handle Holiday Tipping in Today's Tight TimesBased on the record $52 billion Americans spent over the Black Friday weekend and the more than $1 billion they spent online on Cyber Monday alone, you might think money woes are less of an issue this holiday season.

However, in a recent poll from the National Foundation for Credit Counseling, 40% of respondents said they aren't shopping at all for the holidays because they're expecting further financial distress in their households.

But while the high rollers are hitting the stores, and the financially shaky are pinching pennies to pay the bills, many people in between are struggling with another seasonal debate: How to handle holiday tipping this year.

It's an uncomfortable thing to ponder, but for some of us, a new strategy for tipping may be in order. Here are some tips:

Stick to Your Budget

"Don't put yourself in the poorhouse," says Cindy Post Senning, a director at the Emily Post Institute, the experts in all things etiquette.

It's simple: Do what you can afford. Don't feel pressured to tip. Tip based on loyalty. If you don't see someone regularly, don't feel compelled to tip, or don't tip as much as someone you do business with on a regular basis. "A tip is based on the relationship you enjoy with the person to whom you are giving a monetary gift," says Diane Gottsman, owner of The Protocol School of Texas, which specializes in corporate etiquette training.

Be Creative

Think homemade cookies, jams, jellies, bread, candy, potpourri. Make candles, or a book of your favorite holiday recipes. If you knit or crochet, show you care with crafts. You're only limited by your imagination.


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Creativity seems cool and cheap, but think about the person you intend to give such a gift to. If they won't be wowed or touched by such displays of affection, think twice. "Creativity is seldom admired or appreciated at the holiday season. Cash is king. After all, how many homemade cookies can a doorman eat and still fit into his uniform?" asks Hilka Klinkenberg, founder of Etiquette International.

The Power of a Simple 'Thank You'

If all else fails, a thank-you card or note is never a mistake, says Klinkenberg -- just don't make it read like something you could have written to anyone. It should be personal, thanking them for a specific deed or deeds, or somehow reflect the uniqueness of what they do for you that you appreciate. Sometimes a personal note is far better than any gift, says Gottsman -- and it's surely better than nothing at all.

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If you do go the creative route, give a store-bought gift or cash, a personal note or card should go along with it.

For those who have the means to give, the gift gurus provide a few guidelines.

What Not to Do

"Don't get too personal with gifts like perfume or lingerie," cautions Post Senna.

You also want to be sure the person's organization permits them to receive gifts. Rules vary and can be strict. For example, the U.S. Postal Service doesn't allow its workers to receive cash or gift cards with a value of more than $20; at FedEx, the limit is $75, according to Gottsman. Many schools have policies about teachers receiving cash -- it could be misconstrued as a bribe. Small, inexpensive gifts, or a group gift may be best.

What to Do

For the regulars that always have your back, Klinkenberg suggests tips equivalent to the cost of one use of their service: Thus, give the hairdresser the price of one session; the babysitter, an extra evening's pay, plus a small gift from your child; the housekeeper, up to one week's pay and/or a gift; the nanny or au pair should also receive up to one week's pay and a small gift from your child; the gardner, $20-$50; the dog walker, the equivalent of one week's pay.

Gottsman adds to this list, $10-$30 for the young turk who delivers your newspaper; double the usual tip for your manicurist; a generous basket of holiday treats for the nursing home staffers who take care of your parents or other family members ; $50-plus for your apartment building's doorman, $50 to $100 for for the landlord or building manager; $20-50 for the elevator operator in your building; $20-50 for the building handyman.

Finally, Klinkenberg offers this general guideline: Tip service professionals and give gifts to professionals like teachers.

Holiday tipping doesn't have to be terribly expensive, but it should be thoughtful.





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]]>ChristmaseconomyEmily Postholiday tipsholidaysHolidayTipsNational Foundation for Credit Counselingpersonal financePersonalFinancespendingthank you notesThankYouNotestippingSheryl Nance-NashThu, 08 Dec 2011 14:30:00 ESTHow to Use Life Insurance to Donate to Charityhttp://www.dailyfinance.com/2011/12/07/how-to-use-life-insurance-to-donate-to-charity/http://www.dailyfinance.com/2011/12/07/how-to-use-life-insurance-to-donate-to-charity/http://www.dailyfinance.com/2011/12/07/how-to-use-life-insurance-to-donate-to-charity/#commentsFiled under: , ,

How to Use Life Insurance to Donate to CharityWhen most of us buy life insurance, we're thinking about one thing: Making sure our families are taken care of after we're gone. But in this season of giving, you might also want to think about setting up a policy to take care of your favorite charity.

It's a method of giving that can benefit both parties.

What's in it for you? Properly structured, life insurance policies allow money to grow tax free, and the death benefit is usually transferred to the beneficiary tax free. While the proceeds will be included in your gross estate, your estate will receive a charitable deduction for the amount of the proceeds upon your death, explains Robert DiQuollo, a certified financial planner and CEO of Brinton Eaton, a wealth advisory firm.

If you own a policy, you may also assign the ownership from yourself to the charity. If you live more three years past the date you reassign the policy, the proceeds will not be included in your gross estate.

Why make the transfer while you're still alive and kicking? Because when you transfer the insurance contract to the charity, you get an income tax deduction in the year you hand it over. How big a break depends on the type of life insurance policy you offer up.

A Tax-Free Path to Bigger Donations

To get a sense of how it can work, let's take this hypothetical example: Say a 58-year-old with a $10 million estate wants to give a big donation to her favorite charity. She could simply donate half of the estate -- $5 million -- directly. Or, she could buy a $10 million life insurance policy with an increasing death benefit at a cost of $718,000 per year for seven years, approximately the same roughly $5 million cost. If the value of the life insurance policy grows at 7.5% over a 30-year-period, explains Jeffry Weinhuff, CEO of Swift Estate Capital, the charity would receive almost $27 million upon her death, a generous gift indeed.

Another example is a wealthy individual who plans to both give large amounts of money to charity at their death and also purchase life insurance to provide for their heirs. That person might leave their entire estate to charity - thus eliminating all estate taxes -- while their life insurance death benefit would pass tax free to their heirs.

Then too, you could also get a charitable giving rider for a life insurance policy with a face value of more than $1 million. This is an attractive option because you don't pay extra for the rider, and usually there is no increase in the premium or reduction in the cash value of the death benefit.

Charity Could Insure You

But giving to charity via life insurance isn't just for rich folks.

"A policy gift to a charity can be extremely powerful, allowing ordinary people to make much larger contributions to their favorite charity than outright cash or even appreciated property," says Dwight Raiford, a senior financial planner with MetLife Financial Group.

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Another option: Have your charity of choice take out an insurance policy on you. Then, each year, you make a gift of the premium amount to the charity, which uses those funds to pay for the policy. The charity receives the insurance proceeds when you die, and when you make those annual donations of the premium, you get the income tax deduction. This sidesteps the issue of the three-year look-back period one faces when transferring a policy: You never owned it, so it won't be included in your estate.

"Say you have a $100,000 policy and a $1,000 premium. For $1,000 you can step up to the plate and get a lot of bang for your buck," says Susan Bruno, a certified public accountant and private wealth specialist with Beacon Wealth Advisors. "It's a way to give without coming up with a lot of money."

The advantages of giving this are significant. "Donations grow each year; you can initially put out less funds; [funds accrue] tax free, which [they] cannot do in your estate; and life insurance may be financed, but your other donations are made in cash," points out Weinhuff.

The Reality Check

Your heart may say to give -- but what does your head say?

The first step should be determining your estate planning needs. Make sure your plan meets your current financial needs, provides properly for your heirs, and also the charity.

Be aware that you'll need to qualify for an adequate amount of life insurance, which you may divide between your heirs and the charity. The qualification process will include both medical and financial underwriting. Realize too, that insurance is not available in unlimited amounts.

Also, recognize that the type of life insurance you chose is important. Term insurance ends at the conclusion of the term it's purchased for, so if a donor lives past the term, the charity you pick as a beneficiary receives nothing. Permanent policies, such as whole life or variable universal life, while more expensive, may be better options for this type of giving, suggests Raiford.

Finally, before you give up ownership of a policy, be sure you've checked out the organization, and that you're certain about the decision. It's an irrevocable transfer.






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]]>charitable givingCharitableGivingcharityestate planningEstatePlanninginheritanceinsurancelife insuranceLifeInsurancephilanthropytax deductionstax freeTaxDeductionsTaxFreeSheryl Nance-NashWed, 07 Dec 2011 12:45:00 EST7 Hidden Dangers to Your Holiday Financeshttp://www.dailyfinance.com/2011/12/07/7-hidden-dangers-to-your-holiday-finances/http://www.dailyfinance.com/2011/12/07/7-hidden-dangers-to-your-holiday-finances/http://www.dailyfinance.com/2011/12/07/7-hidden-dangers-to-your-holiday-finances/#commentsFiled under:

7 hidden dangers to your holiday financesThe holidays are one big party as you merrily move from one event to the next. But amid all the good cheer, the season hides a sobering number of pitfalls for your finances, and not just ones that involve overspending.

Here's a look at seven dangers that can send your season into a financial freefall, along with steps you can take to make sure the holidays are more happy than hazardous.

Gallery: 7 Hidden Dangers to Your Holiday Finances

1. Hosting Hazards, Part A: Alcohol's Aftermath2. Hosting Hazards, Part B: Weather Woes3. Serious Car Trouble4. Epic Food Failures5. A Too-Jolly Looking Waistline





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]]>car insuranceCarInsuranceChristmasChristmasTreeSafetydrunk drivingDrunkDrivingfood poisoningFoodPoisoninghealth insuranceHealthInsuranceholiday safetyHomeownersInsuranceinsuranceliabilitypersonal financesocial host liability lawstheftSheryl Nance-NashWed, 07 Dec 2011 06:00:00 ESTThe Latest Credit Card Trap: No Limits, Just 'Access'http://www.dailyfinance.com/2011/12/05/the-latest-credit-card-trap-no-limits-just-access/http://www.dailyfinance.com/2011/12/05/the-latest-credit-card-trap-no-limits-just-access/http://www.dailyfinance.com/2011/12/05/the-latest-credit-card-trap-no-limits-just-access/#commentsFiled under: ,

Credit card issuers are at it again.

For years, the financial institutions behind the plastic in your wallet have used a host of methods both subtle and brash to up your costs and their profits. But now that the Obama administration's CARD Act is fully in effect, banks' ability to make money from such fees and penalties has been cut -- sometimes dramatically.

Is it any surprise that the banks are pushing back, looking for creative ways to recoup those lost fees?

"They were making a ton of money on people overspending, but with the economy and new rules, they are shaking people down to recover for fees they shouldn't have been charging in the first place," says Ira Rheingold, executive director of the National Association of Consumer Advocates.

Admittedly, some banks are in a relatively precarious position. According to industry consultants and insurance brokers Marsh & McLennan, it costs most banks between $200 and $300 a year to maintain a checking account -- the price of staffing, overhead, ATM and computer systems, and FDIC insurance premiums. (That number, though appears to be derived using a rather sketchy accounting trick: It assigns every overheard cost a bank incurs to be, well, a bank -- as a cost of maintaining checking accounts.)

Still, until recently, banks could offset those costs (however assigned) with fees from overdrafts and merchant account transactions. "Today, banks are expected to earn, on average, between $85 and $115 in fees per year, per account," says Thomas Fox, community outreach director at Cambridge Credit Counseling Corp. "But that's hard to do if the customer maintains a low balance. When that's the case, a bank may actually lose between $85 and $185 per year, per account. These challenges have opened the door to new pricing structures."

The Illusion of an Unlimited Credit Line

One such new maneuver comes from J.P. Morgan Chase (JPM), which recently removed the credit limits from many of its Freedom MasterCard accounts, replacing them with what it calls "credit access lines." The upshot: Unless a cardholder opts out of the change, he can spend significantly more than he would have been able to before, under circumstances when once he might have been charged an over-limit fee, or seen his card declined.

For some people, this may be good news.

"It does give consumers more flexibility," says Kim McGrigg, a spokesperson for the nonprofit Money Management International. "For example, if you need more borrowing power this might help you avoid opening another credit card account. It also eliminates the fear of having charges denied or having to pay over-the-limit fees."

For the undisciplined, though, it could be a recipe for debt disaster. "Some people associate the amount they are allowed to borrow with the amount they can afford to borrow. They are two very different things," points out McGrigg.

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No preset limit means no warning from our bank that you're overspending your means. It also means that you have no clear idea when Chase will say you've hit your limit. Some card users have reported an issue in which the lack of a spending limit means your available credit looks lower to reporting agencies like Experian, which can hurt your credit score. (Chase has responded to this claim that it "report[s] credit access lines to credit bureaus in the exact same way we report credit limits/credit lines to the credit bureaus.") And any charges that exceed your old credit limit come due in the next billing cycle, making this limitless card not quite the convenience it appears at first glance.

What's behind Chase's changes? "We are committed to helping customers maintain or gain greater control over their spending," says Steve O'Halloran, public affairs director for Chase Card Services. "A credit access line provides customers with spending flexibility when they really need it." The card also added new, free features, including personal identity theft protection and travel and emergency assistance services. The bank did, however, end the card's roadside assistance program.

National Association of Consumer Advocates' Rhinegold isn't buying it. "This has nothing to do with customer convenience but the bank's profits," he says.

Kathleen Day of the Center for Responsible Lending agrees that it's just another trick to get people to spend more. "It's bad behavior like this that's why the Consumer Financial Protection Bureau is needed," says the consumer advocacy group spokeswoman. "It's this mindset that people are mad about. Some banks just don't get it."

Your Opt-Out Options

While Chase made headlines with its change, this credit access line "feature" has become common, particularly on high-end or travel cards, says Linda Sherry, director, national priorities for Consumer Action.

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Though people can opt out, knowing they can requires them to actually read the letter announcing the changes. So, if you've gotten a letter from your credit card issuer and set it aside, pull it out. If the changes it offers sound like a bad choice for you, write a letter to the creditor rejecting them. "It is so important to take the time to read the correspondence you receive from your creditors," says McGrigg. "There is a lot of important information in the fine print."

And if you're really offended by your credit card company's tactics, shop around. Look at what kind of deals you can get from credit unions, advises Rheingold.

But if you decide you're disciplined enough to handle the freedom and opt in, make sure the card's credit line and usage is being reported on your credit report accurately. Check your credit score now, and again in a few months to see if it is affecting you negatively, advises Sherry.

Finally, remember: Credit is a tool of convenience, not an extension of your income.








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]]>Cambridge Credit Counseling Corpcredit access lineCredit CARD Act of 2009credit cardscredit limitCreditAccessLineCreditCardsCreditLimitdebtExperian Group LtdFederal Deposit Insurance Corporationfeesfreedom mastercardFreedomMastercardJPMorgan ChaseMoney Management InternationalPresidency of Barack ObamaSheryl Nance-NashMon, 05 Dec 2011 08:40:00 ESTBeat the Clock on These 6 Soon-to-Vanish Tax Breakshttp://www.dailyfinance.com/2011/12/02/beat-the-clock-on-these-6-soon-to-vanish-tax-breaks/http://www.dailyfinance.com/2011/12/02/beat-the-clock-on-these-6-soon-to-vanish-tax-breaks/http://www.dailyfinance.com/2011/12/02/beat-the-clock-on-these-6-soon-to-vanish-tax-breaks/#commentsFiled under: ,

Beat the Clock on These 6 Soon-to-Vanish Tax BreaksThey say good things come to those who wait. They also say he who hesitates is lost. But when it comes to half a dozen juicy tax breaks, it's the second "they" you should listen to, because he who waits until Jan. 1, 2012, to take advantage of them will be out of luck.

Here are six tax deductions and credits that will expire at year's end -- unless Congress extends them.

1. Energy-Efficient Home Upgrades

Making energy-saving improvements to your home not only cuts down on heating and cooling costs, it also earns you a tax credit. For example, if you add extra insulation in your attic, replace drafty old windows with modern thermal-pane models, or install an energy-efficient heater or air conditioner, you're eligible for a tax credit of 10% of the cost, up to $500. You don't have to attach the manufacturer's certification that the property meets the requirements for the credit to your tax return, but you must maintain records that establish your entitlement. However, if you've claimed this credit for upgrades in past years, you can't do it again: It's a one-time deal.

2. Higher Education Expenses

The above-the-line deduction of up to $4,000 for qualified higher education expenses won't be available after 2011, so you might want to consider prepaying eligible expenses for 2012 if you haven't already reached the cap for this year. Generally, the deduction applies to tuition and fees paid in connection with enrollment at an institution of higher education during 2011 or the first three months of 2012. The maximum deduction is available to taxpayers with adjusted gross incomes of up to $65,000 for singles and $130,000 for joint filers. A deduction of $2,000 is allowed for singles with adjusted gross incomes of up to $80,000, or joint filers with adjusted gross incomes up to $160,000.

3. Adoption Help

The Adoption Credit and Adoption Assistance Program lets adoptive parents claim a credit against their federal tax of up to $13,360 for "qualified adoption expenses" for each adopted child. If an employer pays the expenses, adoptive parents may be able to exclude up to $13,360 from their gross incomes. Both the credit and the exclusion are reduced (phased out) if parents' income exceeds certain limits, says Gail Rosen, a certified public accountant with Gail Rosen CPA. Though new access to the credit expires when the program ends on Jan. 1, the rules allowed the credit to be carried forward over five years, and Rosen doesn't see anything to would indicate that will change.

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4. Sales Tax

If you don't pay state and local income taxes -- a common situation for retired public employees or those living in 'no-income-tax' states like Florida -- you have had the choice of using the optional sales tax deduction to cut your federal income tax. After 2011, that option goes away. So if you're planning to buy big-ticket items like a new car in the near future, you might want to push them up into 2011 to get those last deductions, says Rosen.

5. Mortgage Insurance Premiums

It's bad enough that home values nationally are down to their 2003 levels. As of 2012, you won't even be able to take the mortgage insurance premium deduction. 2011 is the last time homeowners with joint adjusted gross incomes of less than $109,000 will be able to deduct the cost of mortgage insurance on a first or second home.

6. Teachers' Classroom Materials

It's something nearly all educators do these days -- buying classroom supplies and paying for them out of their own pockets. For years, K-12 teachers, instructors, counselors, principals or aides who worked in a school for at least 900 hours during a school year could claim an "above the line" deduction for up to $250 of expenses incurred for books, supplies, computer equipment or supplementary materials used in the classroom. Shop now, teachers: Starting next year, that deduction will disappear like kids vanishing from the classroom when the bell rings.





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]]>adoptioncongressdeductionsenergy efficiencyEnergyEfficiencyexpiring creditsExpiringCreditsfederal income taxFederalIncomeTaxhigher educationHigherEducationIRSMortgage Insurance Premium DeductionMortgageInsurancePremiumDeductionsales taxSalesTaxtax creditsTaxCreditstaxesteachers suppliesTeachersSuppliesSheryl Nance-NashFri, 02 Dec 2011 10:20:00 ESTSalvation Army Bell Ringers Get a Mobile App Upgradehttp://www.dailyfinance.com/2011/12/01/salvation-army-bell-ringers-get-a-mobile-app-upgrade/http://www.dailyfinance.com/2011/12/01/salvation-army-bell-ringers-get-a-mobile-app-upgrade/http://www.dailyfinance.com/2011/12/01/salvation-army-bell-ringers-get-a-mobile-app-upgrade/#commentsFiled under: , ,

Salvation Army's Classic Red Kettles Get a Mobile App Upgrade The Salvation Army's red kettles and bell ringers are almost as ubiquitous during the Christmas season as the jolly old fellow in the red suit. For well over a century, they've reminded holiday shoppers not to forget charity's place in the season of giving.

But this year, if the generous urge hits when you haven't got cash on hand, don't just walk on past, promising yourself you'll drop some money in next time -- you may still be able to do your good deed right then.

Yes, even the Salvation Army has embraced the smartphone mobile-tech revolution: At select kettle locations in and around Chicago, Dallas, San Francisco, and New York, you can now swipe a credit or debit card to donate.

Citibank (C) is the first corporate sponsor of The Salvation Army's Red Kettle Campaign in the Greater New York area. In addition to supporting the campaign financially, it will promote the cause by featuring Red Kettle screens on more than 1,000 Citibank ATMs in the region.

Bell ringers will use Android smartphones donated by Sprint Nextel (S), equipped with Square's postage-stamp-size card reader and two apps, one from Square and the other from The Salvation Army. Swipe, choose an amount, and the money goes into the Salvation Army's account. You can even get a receipt via text.

Why this marriage between the big financial institution and the Protestant charity? "We share two important goals with the Salvation Army: to help people live financially sustainable lives and to help communities grow and thrive," says Andrew Brent, a spokesman for Citibank.

Last year, more than 1 million people in the Greater New York area donated to the campaign, putting about $2.5 million into its coffers and helping provide basic necessities to 750,000 people.

For the Salvation Army, the hope is that ease of using the technology will make it harder for people to say no. "The needs are greater than ever," said Lt. Colonel Guy Klemanski, Divisional Commander for The Salvation Army Greater New York. "Some people who used to donate to us are now coming to us for help. People are hurting."

Ring-a-ding. Swipe. Smile. It could be the one time when you don't have to feel guilty about pulling out your plastic this season.



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]]>appscharityChristmascredit cardsCreditCardsdebit cardsDebitCardsdonationsholiday givingHolidayGivingred kettlesRedKettlessalvation armySalvationArmysmartphoneSprint NexteltechnologySheryl Nance-NashThu, 01 Dec 2011 07:00:00 ESTLooking for Work? Here's How to Find the 'Hidden' Jobshttp://www.dailyfinance.com/2011/11/30/looking-for-work-heres-how-to-find-the-hidden-jobs/http://www.dailyfinance.com/2011/11/30/looking-for-work-heres-how-to-find-the-hidden-jobs/http://www.dailyfinance.com/2011/11/30/looking-for-work-heres-how-to-find-the-hidden-jobs/#commentsFiled under: , ,

Looking for Work? Here's How to Find the 'Hidden' JobsSometimes, you just have to know where to look. With official unemployment stuck in the 9% range, jobs continue to be as hard to find as the proverbial needle in a haystack. HiddenJobsApp.com is doing its part to make the hunt a little easier.

Since launching in the spring, HiddenJobsApp.com has been tracking companies that are growing and hiring by sifting information not just from company sources but also from newspaper articles, online media, public announcements, and more. Many of these positions haven't been widely advertised, which can give users of its website and smartphone app a competitive edge.

"We make the job search more efficient, since we do all the legwork and the site is updated daily with new leads," says Chris Russell, founder of HiddenJobsApp and CEO of AllCountyJobs.com. They suss information in ways you might not and that many traditional job sites don't, like flagging articles profiling companies that talk about expected expansions.

HiddenJobsApp.com just released its list of the 10 states with the most "hidden" jobs:

1. Florida (23,598)
2. California (21,562)
3. Ohio (16,668)
4. Indiana (15,355)
5. Tennessee (12,042)
6. Michigan (11,778)
7. Texas (8,519)
8. North Carolina (8,062)
9. Georgia (7,839)
10. New York (7,128)

Florida was hard hit by the Great Recession, so it's surprising to see them on top. Also a surprise -- how well Midwestern states like Ohio and Michigan fared. "Jobs are being created there again," says Russell.

In fact, the majority of the new job growth is in the Midwest and South, probably due in part to the cheaper cost of labor in those regions. Manufacturing, which began showing signs of life last year, seems to be continuing a comeback, Russell says.

So what does that mean for you? Job seekers in this weak employment market would do well to take a page from HiddenJobsApp's playbook. Read industry periodicals, your local business journal, and the business section of your newspaper, scouting for stories about companies that have strong sales growth, are launching new products or moving to bigger space. Those are the prime clues that a company will be hiring, Russell says.

Of course, some of these as-yet-unadvertised jobs are so well hidden that they might not even exist yet. We asked Robin Ryan, author of 60 Seconds & You're Hired!, to take HiddenJobsApp for a test drive. "I followed the links, especially since Florida has a very tight job market," Ryan says. "The Florida link goes to a news article stating Planet Hollywood is expanding, but it looks like the jobs will be added over three years. That helps no one now." As an alternative, Ryan suggests making a list of 25 companies and networking to learn who the hiring managers would be for the type of job you're seeking.

Still, anything that can give you a lead on job opportunities before they open can only help. "Pursue all possible avenues of the job search. You can't rely on just a job board," Russell says. "Do your homework and research companies that offer at least a modicum of job stability. It's important to take a proactive approach to finding work."


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]]>AllCountyJobs.comappcareerseconomyfind a jobFindAJobHiddenJobsjobsonlinepersonal financePersonalFinanceplaces hiringPlacesHiringunemploymentwho is hiringWhoIsHiringSheryl Nance-NashWed, 30 Nov 2011 10:00:00 ESTDangerous Toys: What to Leave Off Your 2011 Gift Listhttp://www.dailyfinance.com/2011/11/29/dangerous-toys-what-to-leave-off-your-2011-gift-list/http://www.dailyfinance.com/2011/11/29/dangerous-toys-what-to-leave-off-your-2011-gift-list/http://www.dailyfinance.com/2011/11/29/dangerous-toys-what-to-leave-off-your-2011-gift-list/#commentsFiled under:

It's been a long time since Dan Aykroyd's Mainway Toys was satirically exposed on Saturday Night Live for selling such hazardous playthings as "Bag o' Glass," "Teddy Chainsaw Bear" and "Johnny Switchblade." But some new toys still hold hidden risks -- and for parents, it's no laughing matter.

The U.S. Public Interest Research Group's 26th annual Trouble in Toyland report found a number of hazardous toys on store shelves this season. The leading dangers continue to be those with pieces small children might choke on, and toys that violate new lead and phthalate limits. Also making the list are toys that are potentially harmful to children's hearing, with noise volumes that exceed the standards recommended by the National Institute of Deafness and Other Communication Disorders.

And unlike Irwin Mainway's fictional company, the offenders include brands you've probably heard of -- household names like Disney, Honda, Hello Kitty and the Sesame Workshop.

Over the last 26 years, the Consumer Product Safety Commission has either recalled or taken corrective action on more than 150 toys called out in the PIRG surveys. CPSC is still evaluating the 2011 results, says Ed Mierzwinski, consumer program director for U.S. PIRG.

The 2011 Hall of Shame

The following toys were found to be potentially dangerous due to higher levels of lead or other toxic chemicals than PIRG considers acceptable: Funny Glasses (Joking Around), Sleep Mask (Claire's), Little Hands Love Book (Piggy Toes Press), Whirly Wheel (LL), Spritz Medals (Spritz), Hello Kitty eyeshadow/keychain (Hello Kitty), Tinkerbell Watch (Disney Fairies), Peace Sign Bracelet (Family Dollar), Honda Motorcycle (Honda).

These toys have pieces that are choking hazards: Wooden blocks set (ToySmith), Sesame Street Oscar Doll (Sesame Workshop), Dinosaur multi pack, similar sea life and turtle packs (Greenbrier International), HABA fruit in a bag (HABA), Green rubber grape (iwako), Orange bear (4M2U), Flat baby blocks and square counting blocks (Greenbrier International), 4 dollar box items (Rhode Island Novelty) and Play ball x2 (Squishland).

The noise hazards list includes: Elmo's World Talking Cell Phone (Fisher-Price), Victorious Stereo Headphones (Nickelodeon) and Hotwheels' Super Stunt RAT BOMB (Hotwheels).

What's Missing From the Lists

Even if none of the toys mentioned above are ones your child wants or has, don't feel too comfortable. "Parents and toy givers need to know that the CPSC doesn't test all toys and that our report includes only a sampling of potentially hazardous toys," warns Mierzwinski. "Toys not on our list could pose hazards."

Last year, the CPSC recalled almost 200,000 individual toy units for violations of lead standards. Lead, when ingested, interferes with nervous system development and causes a host of other health issues. That makes it hazardous for anyone, but extra dangerous for children -- and a bad idea on anything they might put in their mouths.

Also last year, the CPSC recalled more than 3.5 million toys and other children's products because of choking hazards. Since 1990, of the more than 400 children's deaths associated with toys, more than half were caused by choking on balloons, small toy parts and small balls.

Protect the Little Ones in Your Life

Toys with small parts are banned for kids under age 3 and should be kept away from any children who still put things in their mouths, regardless of age. Small balls are especially risky.

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Latex balloons are not recommended for children under 8. Broken latex balloon parts on the floor are very dangerous to toddlers and crawlers, but even older children are at risk for inhaling a piece of a balloon that explodes while being inflated.

"It is very important for parents who have older kids, as well as little ones who still put things in their mouth, to keep the older kids' small toys and balls away from the younger children," says Mierzwinski.

To test whether a toy or toy part is a choking hazard, use a standard toilet paper tube -- it'll be about 1.75 inches in diameter. If a toy, toy part or ball fits in it, it's too small for kids who put things in their mouths. (And in fact, that toilet paper tube is actually bigger than the standard "small parts tester." U.S. PIRG wants the standard to be made bigger, because some kids have choked on items that wouldn't fit into the current standard tester.

To avoid lead hazards, don't buy metal jewelry for kids. Don't let kids chew on brightly colored plastic or wooden toys. And pay attention to the age labels on toys -- those aren't just recommendations: There are safety implications to those labels.

"Think about how the child you are shopping for plays with toys. Do they put things in their mouth? Do they have younger siblings?" asks Rachel Weintraub, director of product safety and senior counsel for the Consumer Federation of America.
If so, avoid buying toys with small parts -- and be safe.

For more information, visit www.saferproducts.gov and www.cpsc.gov/cpsclist.aspx.











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]]>child deathsChildDeathschildrens healthChildrensHealthchoking hazardChokingHazardConsumer Federation of AmericaDan Aykroyddangerous toysDangerousToysHealthholiday shoppingholiday spendingHolidayShoppingHolidaySpendinglead poisoningLeadPoisoningPhthalatesPIRGproduct safetyProductSafetytoxic chemicalsToxicChemicalstoy safetytoysToySafetySheryl Nance-NashTue, 29 Nov 2011 10:30:00 EST8 Survival Rules for Black Friday Shoppershttp://www.dailyfinance.com/2011/11/24/8-survival-rules-for-black-friday-shoppers/http://www.dailyfinance.com/2011/11/24/8-survival-rules-for-black-friday-shoppers/http://www.dailyfinance.com/2011/11/24/8-survival-rules-for-black-friday-shoppers/#commentsFiled under: , , , ,

Switch on the TV or open the newspaper today, and you'd think there was only one day in the year to shop for bargains: Black Friday (or, increasingly, Black Thursday). But if you're not careful, the year's most-hyped shopping day can be filled with traps that can bust tight budgets. Here's how not to get bamboozled in the excitement.

1. Beware of store cards and rebates.

It's tempting to sign up on the spot for a store's credit card to save an instant 20% off your purchase, but think before you leap. Store cards are profitable for one reason -- the majority of those who get them carry a balance, and the interest rates are sky-high -- 24.5% for Macy's and 25.24% for Sears, according to Bankrate.com.

"That 20% discount costs you a quite a bit in interest if you use the card and don't pay off the balance monthly," says financial planner Derrick Kinney of Derrick Kinney & Associates. "You can set yourself up for a trap down the road." He cautions against going for the deal with the plan of paying it off fast and then canceling the card, because the reality is, that's not what most people end up doing.

Also, don't count on rebates. While there is nothing inherently tricky about rebates, the majority of people simply fail to redeem them, says Kinney. Over $500 million in rebates go unclaimed each year, according to consumeraffairs.com.

2. Exercise your debit card.

"Don't charge Christmas," advises Kinney. "If you can't pay for it on up-front or on layaway, you probably don't need it."

If you must put your purchases on plastic, at least use cards that allow you to rack up rewards and points. Better still, use your debit card. "That helps curb overspending, because if you don't have money in the bank, your transaction is not approved," says June Walbert, a certified financial planner with USAA.

3. Ask for a discount.

Haggle on Black Friday? Absolutely! If you're buying multiples of the same item (DVDs, socks, video games, books) ask the merchant for a "volume discount" and see if you can score a buy-three-get-one-free kind of deal. Or, if you know that a similar product is cheaper elsewhere, see if the store will at least match the price -- or better yet, beat it by 10%.

If you're a student, teacher or AAA member, your affiliations could earn you additional discounts. Be sure to ask, since such discounts may not be advertised, notes Farnoosh Torabi, a personal finance expert on behalf of Chase Ultimate Rewards.

4. Avoid "gotchas."

Beware of shifting policies. Some stores change their rules on Black Friday, including cutting the flexibility of return policies and availability of layaway programs. At Amazon, for example, jewelry purchased on Black Friday may not be returned. And Toys R Us puts its layaway program on hiatus for the day, warns Torabi.

5. Stick to your list.

Before you go to the store or turn on the computer, decide how much you can afford to spend. Commit to that amount and have a list of what you plan to buy. Ideally, you've researched prices. "No matter how good the offer, only take advantage of a sale or coupon if you were planning to buy the item anyway," says Tanisha Warner, spokeswoman for Money Management International, a nonprofit credit agency. "Stick to your spending plan. Little items add up quickly,"

6. Remember that "sale" doesn't always mean cheaper.

Just because the sign says "sale" doesn't mean it's really a sale, explains consumer expert Andrea Woroch, in her round-up of Black Friday shopping strategies. For example, she says, "many stores are advertising blockbuster prices on the Kindle e-reader, but check with Amazon and you'll find there's no difference between the regular and so-called 'sale' prices."

To separate the ho-hum from the really good deals, use pricing tools like Consumer World's Price Checker (to compare prices at many online stores instantly) and DealAlerter.com (to get notified when an item's price drops).

7. Don't trade quality for price.

A low price on a lousy product is no bargain. This year, for example, with cotton prices at an all-time high, some clothing manufacturers are cutting corners. Hems may not be properly finished, sleeves are shorter than normal, and manufacturers are using more synthetic fabrics to keep costs down. Consumer electronics is another area that's rife with cheap knockoffs.

Do your research up front by checking reviews on sites like Consumer Reports. Also, nothing beats reading customer reviews by owners of the products you are thinking of buying. Check Epinions.com, and read the user comments posted after most product descriptions at Amazon.com, suggests Edgar Dworsky, founder of ConsumerWorld.org, on his website.

8. And that goes especially for "free."

Say a retailer is offering a $10 gift card on toy purchases of $75, leading you to add enough items to your basket to hit the magic mark. If you spend more than you planned just to get the discount, that's no deal. Says Woroch, "Sometimes, free isn't really free."

And if all else fails, here's a bonus tip: Just stay home and eat those leftovers.




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]]>advicebargainsBlack FridayBlack ThursdayBlackFridayConsumer ElectronicsConsumer Reportscouponsdealsholiday shoppingHolidayShoppingpersonal financePersonalFinancesalessaving moneySavingMoneyshoppingtipsSheryl Nance-NashThu, 24 Nov 2011 03:15:00 EST