Are you taking advantage of tax incentives for being "green"

Green is the new buzz word but I think it's here to stay. Federal, state, and local governments are making it more affordable for people to be more energy efficient. What's happening in your state? Below are a few web sites to check out about tax incentives for energy:

www.energytaxincentives.org/
www.energystar.gov/index.cfm?c=products.pr_tax_credits
www.dsireusa.org/

You should also contact or check the web site of the utility companies that serve you to find out if they have any incentives.

Steps you can take to live a “financially responsible” life

An article on CNN Money talks about living a financially responsible life. Instead of taking on the difference between living within your means or living below your means, the author chooses to focus readers on what it means to be fiscally responsible. I think this is right way to approach the subject. If we learn anything from this economic crisis, ti should be that we have to manage our own money. We can’t expect others to do right by us. AIG should be a prime example of this. While a lot of blame can be placed at the feet of Wall Street and government regulators, we have to own the fact that our blind trust in financial institutions and letting others take care of our financial destiny put us in this predicament. It’s time for us to be more engaged in what happens to our money and to do some of our own oversight of the institutions where we do our financial business. This may have helped the survivors of the Madoff ponzi scheme.
The two things the author says we should do to live a financially responsible life. First, we should make saving regularly a priority. Second we should control our debt. Neither suggestions are new but I think they need repeating until everyone finally makes them part of their daily life.

Task force visited U.S. automakers this week in Detroit

The Obama auto task force has three weeks to decide if GM and Chrysler deserve more money. The top auto advisors met with the automakers in Detroit on Monday. The advisors also met with top officials of the United Auto Workers Union and test drove the new Chevy Volt, Gm’s new electric car. March 31, 2009 is the deadline for the Obama administration to make a decision on whether to give GM and Chrysler more funds.
Some lawmakers, mainly Republicans, feel bankruptcy is the only option for GM and Chrysler at this time. However, it is a widely held assumption that the Obama administration is looking for a way to justify giving GM and Chrysler more funds to avoid bankruptcy during these tough economic times.

Economy gets worse every week

AIG got $30 billion more to help stabilize the company. General Motors say they need almost $8 billion more to remain viable even thought their auditor said in a report to the Securities and Exchange Commission that he doubts the company can be viable and that GM should seek protection under bankruptcy law. How much more bailing out of failing companies are we going to do? We are giving banks money, hoping they will start lending again but if banks have to change the way they do business and tighten their restrictions, many small businesses and individuals won’t be qualify for loans. While they wait for this supposed bailout to kick in, they are incurring debt, getting behind on payments and maybe considering bankruptcy or facing foreclosure. I’m all for having patience and giving the new administration a chance but what do I do if I feel we’re heading toward the cliff faster than we were before because the solution does more harm than good? I hope President Obama’s economic team is the radical miracle workers he thinks they are because if not, America is done being considered land of making dreams come true. We may be in for a long nightmare.

Federal regulators to launch revamped program to shore up financial systems

On Monday, federal regulators said they will launch a revamped program to shore up troubled banks. Part of the program may include increased government ownership in financial institutions. The regulators, however, stress that keeping banks private is a priority.

Federal regulators can say what they want. Americans want to see enforced regulations. Both the government and Wall Street have let us down. If the SEC had listened to the man who told them about Bernie Maddoff ten years ago, the damage done would have been millions less. This man went through the proper channels to report misdoings and was ignored. Americans want to know that they have some type of recourse to hold government and Wall Street accountable. We’ll see what happens as time goes on and more regulations are put in place.

Credit Card holders get a reprieve in 2010

New Fed regulations will reign in credit card insurers’ business practices in 2010. Currently insurers can do the following:

Raise interest rates on existing balances at any time
Bury changes and terms in the fine print
Change your terms and rates with 15 days notice
Charge you interest on this and last month’s balance

In 2010 insurers will have to:

Not raise interest rates unless you are 30-plus days late
Provide bills that clearly show terms, fees, and total interest paid
Give 45 days’ notice for new terms and rates
Calculate interest only on what you currently owe

Oh happy day. There are finally some regulations that will help the people, what a refreshing approach.

How will the new plan for TARP 2 affect us?

On Tuesday Secretary Geithner laid out the plans for how the oversight will work for the second half of the TARP money. Instead of putting in rules on executive compensation or asking that money be used to do mortgage modification these will now be requirements for receiving the money. The problem is that I haven’t seen what happens to these institutions if they don’t comply with the requirements laid out for them. How can oversight be effective if there are no consequences? I hope Americans keep track of what happens to this money. Go to the web site of the US treasury, www.ustreas.gov, to find the web site that will make the spending of TARP 2 funds transparent.

If this money is spent wisely and the banks do what they are supposed to do, more businesses will be able to make payroll and if not hire more people at least keep the people they currently employ. Also, homeowners may get the much needed help they need in revising their mortgages so they stop being upside down on their mortgages. We’ll see if the banks are really committed to saving the US economy or just saving their golden parachutes.

Taxpayers are being asked for money. Wall Street should do its part.

The bonus culture on Wall Street is alive and well but could be in jeopardy if people begin to make enough noise. The allure of Wall Street is the promise of a big payday. A huge part of this payday comes from bonuses. Some on Wall Street feel that those that made their companies a fortune should still receive bonuses and only deny those, say in mortgage bonds, that ran up loses that crippled the companies finances.

This belief comes from the fact that bonuses are a major part of total compensation salaries. Many individual reviews are weighed more heavily than a company’s overall performance. I can understand the rationale and maybe those that continue to make financial institutions money should be rewarded. But this doesn’t explain the bonuses shelled out in 2008 to persons, especially at the highest level of management, that didn’t make their companies any money. Those at the highest level of management have their salaries tied directly to a company’s overall performance so if the company loses money then their bonuses should be cancelled until the losses turn into gains.

I don’t want anyone to be denied any money. I believe everyone has a right to make as much cash as possible but not at taxpayer expense.

These 20 companies are hiring

Despite the massive layoffs being announced on a weekly basis, an article on Forbes.com says these companies have openings for workers (as of January 13, 2009). Search them out on the web to see if you have what they are looking for but be aware that these companies may not have openings in your home town so you may have to consider relocation.

Edward Jones
Google
Wegman Food
Cisco Sytems
Genentech
Methodist Hospital System (Houston, TX)
Whole Foods Market
Microsoft (they announced layoffs so double check this)
Burns & McDonnell
Ernst & Young
Booz Allen Hamilton
KPMG
PricewaterhouseCoopers
Scripps Health
Mayo Clinic
Baptist Health South Florida
Bright Horizons
Publix Supermarkets
T-Mobile
Accenture

If you think you can’t apply for some of these companies because you’ve never worked in that particular industry think again. Believe in yourself and let these companies know what you’re brining to the table. Take a risk you may be surprised. Companies are looking for good workers and they just may be looking for you. Happy job hunting!

Our treasury secretary-elect hasn’t paid his taxes

I applaud Congress for grilling Timothy Geitner over his “mistake” over not paying his self-employment taxes. When Lehman Brothers failed he was the NY Fed Chairman. He stood by, allowed it to happen, and watched the domino effect as the economic crisis really got under way. If regular citizens didn’t pay their taxes or had an employee with illegal alien status there would be massive fines and the threat of jail time. I hope this man is the wunderkind everyone seems to think he is otherwise in terms of our financial system we shouldn’t expect much change.

Consumers are promised more protection from government

Self-regulation for many industries is over. Democrats promise a new era of regulations on behalf of the consumer. Business groups like the U.S. Chamber of Commerce are bracing for a fight. Some critics are not sure enough policing will happen because some of the new administration picks may be too close to the industries that need change. In the coming months we will watch the financial industries and their government oversight agencies.

A recent Sixty Minutes story states that Wall Street is to blame for the run up on oil prices over the summer. Oil prices rose even though supply was up and demand was down. Wall Street received a huge bailout but has yet to start lending or tell anyone how the money is being used because they received money without conditions. As the Maddoff scandal and investigation continues, Wall Street is again under fire. I hope the Obama administration is up to the task of really implementing the change our financial systems need.

Is 2009 the year of the consumer?

Businesses are hoping that consumers will get off the sidelines and start spending again. The deepening recession is not helping. As oil inches back toward $50, gas prices are inching back up towards $2. Homeowners will also be paying more to heat their homes this winter. And there is the threat of more layoffs across industries.

All this bad news is not deterring businesses. Hyundai has a new incentive program for buyers. If you buy a new Hyundai and lose your job within a year, Hyundai will take it back. To get this benefit the buyer has to make two payments before filing a claim to walk away from the loan. Walkaway, who manages the program, says that they have been selling a similar program through various auto dealers in Canada since 2000. Hyundai is the only US automaker offering this program nationwide. Hyundai already offers cash back on most of its vehicles. The Assurance program, in addition to cash back, offers buyers value in the car buying process. The American automakers should take a lesson.

Beware of lowering credit scores

I was talking with a friend yesterday and she told me a story that gave me pause. Apparently a woman’s line of credit was lowered because she was not using her credit card. This in turn lowered her credit score. In essence she was being penalized for saving her credit line for a rainy day. Her credit card company is trying to force her to use her credit. She is worried about losing her job and the state of the economy.

Of course I should be surprised but I’m not. Those greedy bastards will try anything to make a buck. My question is who is going to force these companies to start lending again. They seem to be saving all that government money they got for a rainy day. Who is going to penalize them?

What’s your financial plan for 2009?

CNN Money has a section under personal finance called Money 101. You should check these tips out as you create your financial plans for 2009. Now more than ever, having a plan for your money is essential. The following are the 23 tips but go to the web site to read more and get in depth step by step instructions for each tip. Do one a day to increase your chances of taking action.

Setting priorities
Making a budget
Basics of banking and saving
Basics of investing
Investing in stocks
Investing in mutual funds
Investing in bonds
Buying a home
Controlling debt
Employee stock options
Saving for college
Kids and money
Planning for retirement
Asset allocation
Hiring financial help
Health insurance
Buying a car
Taxes
Home insurance
Life insurance
Estate planning
Auto insurance
401(k)s

Governor Richardson and the Big Three

In economic news this week, President-Elect Obama named Governor Bill Richardson of New Mexico as his choice for Commerce Secretary. In other news, The CEO’s of the big three automakers are back in Washington asking for $34 billion in bailout funds. Ford is in the strongest position of the three and asking for access to $9 billion just in case they may need it down the road. GM and Chrysler are asking for funds by the end of the year to keep them from filing for bankruptcy. The automakers union is also in Washington for the hearings and is looking for ways they can help the automakers survive by making concessions.

Most Americans are not in favor of bailing out the automakers. They are tired of bailing out companies when it seems that help to main-street is no where in sight, especially with so many layoffs being announced. The President-Elect and Congress are hoping to come up with a stimulus in January once he is sworn in as President.

The Obama economic team is in place—now what?

President-elect Obama has named key members of his economic team. Now they have the task of administering a two year plan that is designed to create 2.5 million new jobs. At the center of the plan is fixing the nation’s infrastructure including roads and schools as well as alternative energy initiatives. The new Treasury secretary, Timothy Geithner, will also oversee dispersal of the rest of the $700 billion financial rescue package. Congress says it will work to have a huge economic stimulus package on the President-elect’s desk by the time he is sworn in as President. The details of this package have yet to be revealed.

The next Treasury secretary has his work cut out for him

Recent polls show many Americans believe that who President-elect Barack Obama picks as Secretary of the Treasury will be the most significant decision in terms of America’s future. The next Treasury secretary will need to oversee the $700 billion rescue plan and decide how to best use the $350 billion not yet allotted. Many names are being floated but no cabinet positions have been announced. Some feel a Treasury secretary needs to be announced sooner rather than later so they can work with current Secretary Paulson during the transition. The analysts and the media will have to wait like everyone else. The new President will not be rushed.

Historic election does not reflect in the market

Today the Dow fell more than 400 points. This adds to the points lost on Wednesday. This erases the pre-election gains the market made. President-Elect Obama says that repairing the economy is a priority but he won’t get started until Jan. 20 so we’ll just have to ride the wave until next year and probably most of next year too before we see things begin to normalize.

I have yet to look at my IRA. I figure I will take a look at the end of the year and just go from there. I don’t need to be more depressed. I’m happy with the falling gas prices and it seems I’m spending a bit less at the grocery store. I pay for my own health insurance and it seems my premiums will be going up next year so I have to adjust it and hope I still get the same level of coverage at a better price. As the new President and the government do what they can to fix things and work with Wall Street, I will be on Main Street tightening my budget as much as possible and finding new ways to create wealth in my life.

Direct Selling Gets a Boost from the Slowed Economy

As the economy slows people are turning to direct selling to bring in extra money every month. People are worried about job security and seasonal hiring is less than in recent years. Many college students whose parents can’t pay tuition have dropped out of college and are turning to direct selling to make money to pay tuition for going back to college later.

In recent years numbers in the direct selling industry had declined but the bad economy has many companies seeing a huge increase in their numbers. Many turn to direct selling as a way to bring in extra income every month but some have turned to direct selling full-time. For them, they see the residual income they make from direct selling as wonderful retirement plan and don’t see themselves returning to having a full-time job for another employer ever again. They enjoy being their own boss.

Pensions are safer than 401(k)s

If you have a 401(k) you assume the risk when the markets take a downturn. It you have a pension and are fully vested, by law your company is required to pay you what you’ve earned. However you do have to wait until you are 55 to 65 years old to collect it.

While you do what you can to minimize the risk to your retirement savings here are some ways you can save almost $9,000 per year to put towards your retirement.

Engage in strategic shopping. Potential savings: $5,000. Track deals at your local store, online, and direct from the manufacturers of items that you buy. Taking the time to do this before you go shopping will save you a lot of money.

Avoid what author David Bach calls the “latte factor”. Buy enough from the grocery store to make you meals at home. Bring your meals to work. Cutting back on this wasteful spending can save you almost $2,500. Paying atm fees would fit into this category.

Upgrade your appliances and potentially save $150 dollars per year. By upgrading a refrigerator to one that is more energy efficient saves you money and is a small step in living “green”.

Go generic and potentially save $170. Buying generic brands from the grocery store and other local stores like CVS or Target keeps money in your pocket. Don’t be afraid of store brands.

Pay an extra $1 on your credit cards and potentially save over $200. Try increasing what you typically pay per month on your credit cards to one dollar a day. If you add $30 to what you normally pay, you will pay down the credit card debt sooner and save on interest payments.

Pool together and share a babysitter. This can give you a potential savings of over $700. Even though providers may pro-rate their fees based on the number of children, pooling with neighbors or friends can bring a savings of 20% to 50%.