Archives for 2010

Save Money On Black Friday By Planning Ahead: Comprehensive List Of Black Friday Deals Sites

Black Friday. Those two words are enough to instill pure joy into the hearts of Christmas shoppers across the United States. It's a day of sheer indulgence – of getting the things you want, and of getting a good deal while you're at it.

But here's the thing. You need to plan ahead. If you don't you'll find that you could end up spending a lot more money than you had planned on, and the good deals that you've gotten are minimized by the things you bought that you didn't need. So it's important to plan ahead.

Save Big On Black Friday… If You Plan Ahead

There are some things you can do in order to get the best deal on your Black Friday shopping.

Make sure to know in advance what you're buying. Put together a list of the things you want, and don't buy anything not on that list, no matter how tempting.
Set a spending limit. Take your money out in cash before you head out.Don't go over your spending limit by only using cash. When you run out of budgeted money, you're done!
The best deals aren't always on Black Friday: Check deals before Black Friday – you may find a better price – even during Black Friday week pre-sales.
Bring a friend: Bring a friend with you. They can keep you company while you wait, and you can divide and conquer to get the most popular items once the store opens!
Don’t go out on Black Friday!: Sometimes the best way to save on Black Friday is to just not go out! Sometimes the best deals you can find aren't even found on Black Friday. If you're creative you an find better deals by stacking coupons and sales, finding one time only discounts, etc.

So there you go, a few helpful hints to help you succeed on the big day.

How Do I Find Out What The Hot Deals Are?

Black Friday can be a great day to find some hot deals on the items you were thinking about buying anyway. But where do you find what deals are available at what stores? Some of the places I’ve found great information on Black Friday Deals include.

Looking For A Specific Item?

If you're like me you may just be looking for a specific item to give to someone for Christmas. For example, last year I was looking for a GPS for my in-laws. So how do you find all the hot deals on GPS units? FatWallet.com has put together a cool Black Friday ad filter that allows you to sort the all the Black Friday deals by category, type, brand, price, free shipping etc. Using a tool they put out last year I was able to find a great deal on my in-laws new GPS.

Black Friday Ad Filter

Which Items Are Popular?

Sometimes you're going to get a couple of different items, but you're not sure which one will run out quicker – so you can go there first. To help you in your game plan, check out this “most wanted” list from gottadeal.com. The list will tell you what some of the most wanted items at each store are – so you can prioritize your Black Friday shopping list.

Black Friday Most Wanted Deals

More Black Friday Tips And Tricks

Mortgage Rates Are Low, But Are The Homes Affordable? [Infographic]

By Mr. Money 3 Comments

My wife and I are currently thinking about upgrading our home because the prices in our market are so much cheaper than they've been for years, it almost seems like it would be a bad idea not to jump in and buy the home of our dreams. After all, it'll probably never be this affordable again, right?

When I was looking around the web this week I saw a post over at GoBankingRates.com talking about how just how much the home prices have gone up over the past few decades. It seems like they've been going up at an ever exponentially increasing rate. In fact, median home values are 7 times higher than they were 70 years ago, when the first housing census was done in 1940. That means in 1940 the median home value was $30,600 while in 2010 it is $219,700. That's quite a jump.

But here's where the numbers get even crazier. From GoBankingRates.com:

Between 1950 and 1960, the median price of a home rose from $44,600 to $58,600–an increase of roughly 23 percent. However, from 2000 to 2010, the average home price went from $119,600 to $219,700, which is a jump upwards of 84 percent over a similar 10-year period.

So while mortgage rates are nearing all time lows this year, we're still seeing record numbers of foreclosures and people going into default. The reason? So many of those people are still buying homes that they can't afford, and since the unemployment rates are hovering around 10%, many people have lost their jobs, and even if they could afford these homes in the first place – once they've lost a job it becomes unmanageable.

When home prices go up on average over 84 percent over a decade, the home prices are getting to a point where they're not really realistic anymore. In my opinion there needs to be a correction, and I think the real estate market may be in it for the long haul now.

Current State Of Home Affordability Infographic

Here's an infographic from GoBankingRates.com that looks in depth at our current housing situation. Lot's of interesting data here. (click to enlarge)

Find the best bank rates at GoBankingRates.com. via: Credit Score Blog

Flexible Spending Account (FSA) Plan Changes And Limits In 2011 And Beyond

By Mr. Money 7 Comments

A while back I wrote about how our family had signed up for a Flexible Spending Account (FSA) through my workplace because it would allow us to save a decent amount of money on our tax bill by taking money out of my paycheck pre-tax in order to pay for our approved medical expenses.

While the FSA plan isn't necessarily a good idea for everyone because it is a use it or lose it type plan, we knew it was a good decision for us this year because we were anticipating having our first child, along with having other expensive medical procedures.

With the passage of Obama Care this year, we'll be seeing some changes to the FSA next year, and in years to come, that aren't necessarily going to make the accounts more attractive. In fact many are starting to say we should start calling them “In-flexible Spending Accounts”. They'll be limiting what types of things you can use the FSA to pay for, as well as how much you can contribute to the account.

Why the changes? In my opinion it's because they need more tax money to help pay for the Health Care Bill.

Flexible Spending Account Changes In 2011

There main changes to FSA accounts in 2011 is in how the accounts can be used. In the past you could use the flexible spending account for any variety of over the counter (OTC) medications, including things like allergy medicine, cough syrup and band-aids.

Starting on January 1, 2011, flexible spending account participants will need a doctor’s prescription in order to use their FSA to pay for over-the-counter medications, ones that in the past have been OK to purchase with FSA funds without a prescription.

While this change may not seem like it's doing much because you can still purchase a lot of the same things, the effect it will have will be to effectively cut out a ton of the over the counter medication purchases because people don't want to go to the doctor to get a prescription for cough syrup. In fact, the Joint Committee on Taxation estimates that tightening up the tax break on over-the-counter purchases will generate an estimated $5 billion in federal revenues through 2019.

Flexible Spending Account Changes In 2013

The other big change that will be happening for FSA accounts is that the government will be capping the amount that you can put into your account. Most plans currently will cap contribution amounts to flexible spending plans at $5000. Beginning on January 1, 2013, contributions to FSAs will be capped at $2,500 per year.

By capping the amount to $2,500 the government hopes to collect quite a bit of extra tax revenue because not as much money can be used pre-tax to pay for medical expenses. The Joint Committee on Taxation estimate this change will allow the government to raise about $14 billion between now and 2019.

What The Change Means For The Average Family

For most employees, capping the funding limit at $2,500 won’t have a huge impact. According to Hewitt Associates, the average amount contributed to employee sponsored FSAs in 2009 was only $1,535, well below the $2,500 new limit.

The problem is the people that it does hurt are those who have severe health issues or large medical bills, are the ones that could use the tax break the most.

Tax Impact Of The New Rules: For a family who contributed $5000 to an FSA last year and are in the 28% tax bracket, the health care costs and taxes would increase $891 a year due to these changes. Figure out your own impact using the calculator found at savemyflexplan.org

Some Legislators Trying To Repeal The New FSA Rules

A bunch of legislators have recognized that the changes to the FSA rules may be harmful to a lot of people, and are aiming to have them repealed. Legislation introduced by Senator Kay Hutchinson and Representative Erik Paulsen (S. 3673 and H.R. 5126) would repeal the planned $2,500 contribution cap and requirement for patients to secure a doctor’s prescription in order to have OTC medications covered with an FSA. If you're in favor of having the changes repealed, you're advised to send letters to your congressional delegation. Check out this site for details.

What do you think about the changes to the Flexible Spending Account plans? Do you think they are necessary to fund health care initiatives, or do you think they should be repealed? Do you use a FSA currently? How much would you stand to lose due to these changes?

Retiring Wealthy On An Average Salary: The Story Of The Persevering Parking Attendant

By Mr. Money 9 Comments

Over the last few weeks I've posted several stories of average folks who were able to retire wealthy while making an average salary during their working years. There was an engineer who never made more than $50,000, but was thrifty and saved and invested regularly. There was the teacher who was frugal, and always saved. Then there was the social worker who helped a lot of people when she gave it all away at her death. Finally there was the secretary who got a little lucky, and bought stock in her company when she was young, and was able to sell it later on for more than a million dollars.

As I continue looking around the web, I'm amazed at just how many of these stories I'm finding. Regular people who started saving young, were frugal and by the time retirement came around, they were sitting on a fortune. Today I want to look at another inspiring tale, “The Story Of The Persevering Parking Attendant”.

The Story Of The Persevering Parking Attendant

Earl Crawley, 69, is a parking lot attendant at the Mercantile Bank in Baltimore, Maryland. Mr. Earl, as people call him, only makes $20,000 a year, but yet has been able to amass a portfolio worth over $500,000, have a paid off house and have no debt! While it may not seem like a ton compared to some others we have profiled in this series, I think it's pretty amazing to do that on a $20,000 a year salary, all while raising his 3 kids and sending them to Catholic school.

So how did he do it? Mr. Crawley explains in a Q&A he did for Kiplinger's:

Soon after I started working for Mercantile Bank in Baltimore 44 years ago, one of the bankers took me aside and told me I didn't have enough education to go very far at the bank. He suggested I invest in stocks.

How did you learn how to invest?

I really didn't know enough to be scared. In school I was considered a slow learner — dyslexic, it's called now. My true gift from God is my ability to listen, and that's how I'm able to ask questions and use tips from the brokers, financial planners and bank customers I see every day.

Mr. Earl knew enough to know that he didn't know enough about investing, and that he should get help from those who DID know. He talked to the people in the know, and because he listened and learned well, he prospered. So how did he get started, and where did he get the money to invest when he didn't make a ton?

I did it with good old-fashioned nickels and dimes. My mother taught me how to budget, which made me appreciate how a little money can grow. I saved what I could from odd jobs, such as lawn cutting and window washing, that I did in addition to my day job. I used that money to buy one share of IBM stock back in 1981.

I really like what Mr. Earl did. Despite making a small salary, he worked hard. He got side jobs that allowed him to create a little more margin – enough to invest. In some respects that's what we're doing at our house, investing and saving the income from side jobs and side businesses in order to get ahead.

Since he's been successful, Mr. Earl now finds people are looking to him to get help.

We've heard that you're helping others invest.

I started an investment club at my church. And I've been coaching a couple of young men, such as bar-and-grill cook Antawn Davenport and Dana Mouse Smith, who toured with the late rapper Tupac Shakur. They can help spread the message that people can do whatever they set their minds to do.

I love the fact that Crawley is now helping others of meager earnings, like the cook, to get ahead, and spreading the gospel of compound interest. It's stories like his that give me hope that others, including myself, can appreciate the power of compounding returns, and be successful – at any salary.

Here's a pretty well done story done on Earl Crawley for the PBS Show MoneyTrack:

President Obama Agrees To Extend Bush Tax Cuts For Everyone… For Now

By Mr. Money 4 Comments

I‘ve been writing about the Bush tax cuts on this site for quite a while, talking about whether or not they'll be renewed. We also looked at whether they'll be renewed for all taxpayers, or if they'll be allowed to expire for higher income individuals.

Earlier this year it looked like they would be renewed, but only for some. Obama talked about how he would like to renew the tax cuts for middle class and lower income groups, but how he wanted them to expire for those making more than $250,000. At the time, they may have been able to do just that since the democrats ran both the House and the Senate.

Since then no action has been taken on the tax cuts, and if something isn't done soon in the lame duck session of congress, the tax cuts will expire altogether for everyone.

Last night, however, Obama's senior White House adviser David Axelrod said that the President would be willing to consider an extension of the tax cuts for everyone.

Bush Tax Cuts To Be Extended For All?

So what brought about Obama's change of heart, and why is he willing to consider extending the tax cuts for high income individuals as well? It may have had something to do with a recent election where the Democrats lost their majority in the house, and saw their lead in the Senate diminish.

In an interview with the Huffington Post on Wednesday, White House Senior Adviser David Axelrod seemed to open the door to the extension of the cuts for American households making more than $250,000 a year, citing the political reality that has resulted from the loss of Democratic seats in Congress in last week's midterm elections.

Extending tax cuts for the top income bracket had previously been a red line the administration refused to cross. “We have to deal with the world as we find it,” Axelrod said in the interview. “The world of what it takes to get this done.

“There are concerns,” he said about Congress continuing to kick the issue down the road by passing temporary extensions for wealthy Americans each time the issue emerges. “But I don't want to trade away security for the middle class in order to make that point.”

So it sounds like Obama, realizing that the makeup of Congress has changed making it tougher to get through his legislative priorities, is now willing to do some things he may not have wanted to. If he wants the tax cuts extended for the poor and middle class as he promised, he'll have to make a concession on extending them, at least temporarily, for high income earners as well.

Republicans are obviously happy about this as they have pushed extending the tax cuts for all for some time. On the other hand, the Republicans would like to make the cuts more permanent as well.

A spokesman for likely House Speaker John Boehner praised Axelrod's position in a statement:

“Republicans made a pledge to America to permanently stop all of the tax hikes scheduled for January 1st. We're glad to see that the President's most trusted advisor now agrees with this course of action, and hope he and the President will show leadership by convincing Speaker Pelosi to stop these tax hikes permanently in the upcoming lame duck session,” said spokesman Michael Steel.

Will The Bush Tax Cuts Be Extended?

So now we have Obama saying that he will approve extending the cuts for everyone – even if only temporarily for some of them. But the question remains, will the leaders in his party agree to this as well? Some have already come out saying that they aren't in favor of this, and don't want to extend them for the wealthy (as they define wealth).

So what do you think? Will the bush tax cuts be extended in the lame duck session? Will it be done permanently, or on a temporary basis only? What do you think they should do? Tell us your thoughts in the comments.

UPDATE: The day after I wrote this President Obama backtracked on this a bit saying that he may not want to extend them for high income individuals. So we're back where we started. We'll see what happens!

Ally Bank Review: High Yield Savings Accounts

By Mr. Money 28 Comments

For a while now I've been looking into all the online high yield savings accounts because we wanted to find a place to put our hard earned emergency savings.

As of this writing, because we're so conservative, we're currently sitting on close to 12 months of expenses in savings. As you might expect, 12 months of expenses is a nice chunk of change to be earning interest off of.

We wanted to make sure we were putting our money in a place where it would be earning good interest, but also that it was a solid bank with a good reputation.

Today I’m reviewing one of the banks that we ended up getting an account with, Ally Bank.

Ally Bank – Who Are They?

The brand – Ally Bank – has been around for a year or two now, although they aren't a new flash in the pan bank. A lot of people don’t realize is that Ally Bank is the new face of an old name, GMAC bank. They changed the name in May of 2009 at a time when they were giving the company a face-lift, and giving a promise to be the customer’s “ally”. While the old GMAC bank wasn't my favorite bank – and the fact that they needed a face-lift from the start had me skeptical. But when you also factor in the fact that they have one of the competitive bank rates right now, and that so far they've gotten good reviews – I was more than willing to give them a shot.

Kiplinger's Personal Finance named Ally Bank high yield savings account the “Best Internet Account” and “Best For Millennials” for 2018!

Is My Money Safe At Ally Bank?

Whenever you're considering signing up for a new bank account, it's important to find out if your money will be safe at the institution, and whether or not the bank is insured. Ally Bank is fully FDIC insured, and has been since August 2004 – under their old name of GMAC. If the bank has problems and goes bankrupt, you’ll be fine – as long as you don’t have more deposited than the FDIC insurance will cover. Currently that amount is $250,000 per depositor.

Fees, Minimums And Other Features Of Ally Bank

Ally Bank’s high yield savings account has low fees, no minimum balance and you can open with zero dollars if you want!

Open with $0
No minimum balance
No monthly fees
Ability to create sub-accounts with different names and account numbers.
Daily compounded interest for maximum earnings
24 hours a day, 7 days a week customer service at 1-877-247-ALLY (2559) for 24/7 assistance or by e-mail at customercare@ally.com
FDIC insured up to $250,000
Six withdrawals or transfers per statement cycle. (mandated by the government for savings accounts)
high level of online security

Open An Account With Ally Bank

I opened my account with Ally Bank about 4-5 months ago. It was pretty simple.

It’s a 5-step process. You’ll have to give them some basic information (including your SSN and drivers license), and they’ll do a hard credit pull. Then you just set up your initial deposit from your linked account, set up a few account options and you’re set to go. No fuss, no muss.

Open your account with Ally Bank. Easy 5-step process!

Other Ally Bank Account Types

In addition to it’s competitive high yield savings accounts Ally Bank also has other options available including classic CDs, no penalty CDs (ability to withdraw early with no penalties) and money market accounts. All of them seem to have rates that are currently competitive. For more details about their other account options, click here.

I Signed Up For Ally – You Should Too!

I've now been with Ally Bank for several months, and so far I've been extremely satisfied. They offer some of the highest interest rates in the country and all of their accounts are FDIC insured (to find current updated rates, go here). Add to that their solid 24/7 customer service (which I have used more than once) and other account type options, and you have a good solid bank that does what it should.

If you’re looking for a good high yield savings account where you can put your money, I think Ally Bank should be near the top of your list. I know it reached the top of mine, and was one of the accounts I ended up opening.

Open an account at Ally Bank. Click here for details!

Do you have an account with Ally Bank? How do you like them? What are the pros and cons of their accounts? Tell us your thoughts in the comments!

Main Menu