Insurance is what you rely upon in case of disaster. However, with the downward spiral of the economy comes increased claims and diminished investment returns --- and less stable firms might not be able to weather the storm.

I didn't know much about the mechanics of life insurance before reading a column about understanding what happens when your life insurance company fails by the Kathy M. Kristoff in the Los Angeles Times. Don't get caught unawares --- see how much protection is available for your coverage, no matter what calamities might befall your company.

Posted by Liz Kay at 12:48 PM | Permalink | Comments (0)
Categories: Insurance
        

If you're a golf or history fan, or simply enjoy being pampered, the Homestead Resort in Hot Springs, Va., has a terrific, but limited offer: buy three nights and get two free. Sounds good to me. I've never stayed at The Homestead but I've read good things about it. The resort is set against a backdrop of the Allegheny Mountains and has been welcoming guests since before the American Revolution. That's good enough for me. 

A classic room is $200 per night plus a 15% daily resort charge, covering internet access, gratuities, etc. Tax is additional. So the savings are about $400. The deal is only good if you book in the next 7 days or by July 6. Call 800-838-1766. You can also book online here.

Posted by Michelle Deal-Zimmerman at 11:03 AM | Permalink | Comments (0)
Categories: Travel
        

Learn a lesson from Mildred Jones.

The Pasadena resident got a visit last month from a person who said he was from the marketing department for a home security system company.

He wanted to put his company's sign in her yard and to install a security system in their house for free to attract sales from her neighbors. All she and her daughter would only be responsible for the monthly payment for the security service.

The salesman also mentioned that there had been several break-ins just a few blocks away.

Ms. Jones and her daughter talked it over and decided to sign up, after the representative said they could cancel the contract within a month. He reviewed the contract with them, and although there was a clause referring to locking in a price for 60 months, he reassured them that that just meant if they kept with the product. The equipment was installed that evening.

Fast forward a few weeks, and Ms. Jones and her daughter learned the truth: 

... that in Maryland, you can only cancel a contract signed in the home after three days, not three weeks or a month as they were told.

"He ... answered all the questions but every answer was a lie," Jones said.

In Maryland, door-to-door salesmen have to be licensed, and they are supposed to produce it when you ask, said Raquel Guillory, spokeswoman for the Maryland Attorney General's office.

But you should never sign anything that doesn't match what you've agreed to, she added. Here are more tips for buying a home security system.

"You're going to have to prove they lied to you and it's your word against theirs," she said.

Angie Barnett, president and CEO of the Better Business Bureau of Greater Maryland, offered these tips:

1. Free alarm system usually isn’t free – the equipment/install may be free but there is always a monthly monitoring fee and contract.
2. Review contract for length of time, billing cycle, monthly price, stipulations for what happens with contract if you move, responsibility for false alarms, registering your system with local enforcement, notice (call you first or police first).
3. If any points from sales presentation are critical or not included in contract, have sales rep write them down/add to contract or else verbal is usually not binding.
4.  Ask for all company procedures in writing of what they do when alarms sounds, order, and how/when you are notified.
5. Find out your local law enforcement registration policies/charges for false calls.
6. Don’t be pressured into buying something.  A reputable company will let you check out their offer and compare to others.  If they force you to buy then, then walk away.                                                
7. Make sure the company system you purchase is the same company who will monitor your system.
8. Company/Door-to-door sales reps are to be registered with Maryland State Police. Ask for badge and inquire with company (before you buy) that the sales reps are actually employed by the company.

A recent Consumer Reports blog post about burglar alarm scams says it's a common practice to offer a "free" system in exchange for the monthly service fees. They also warn customers to take the time to comparison shop when considering a security system just the way they would for any product or service.

UPDATED: The Jones family was able to talk their way out of the contract, but you may not be as lucky. Better to understand the terms of any deals before you sign --- and have your sales representative change the contract to reflect the pitch, if necessary (as well as initial any changes).

(photo: ScottD_Arch/Flickr)

Posted by Liz Kay at 8:59 AM | Permalink | Comments (2)
Categories: Naughty businesses/NBotW
        

Card companies don’t nickel and dime you. It’s more like $10 or $30.

Bankrate.com released its first Credit Card Study that looks at the terms offered by major credit card issuers.

Among the findings:

— Late fees averaged from a low of $20.70 to as much as $38.50

— Go over your limit and pay an average fee of $32

— You’ll pay at least 3 percent on cash advances, or more if your card comes from Bank of America, Wells Fargo or US Bank

— If you talk to a human while making a payment over the phone, you’ll pay $10 to $15

— Grace periods now run from 20 to 25 days

 Makes you want to use cash.

Posted by Eileen Ambrose at 2:12 PM | Permalink | Comments (0)
Categories: Credit cards
        

TV pitchman Billy Mays died Sunday at his home in Tampa after complaining to his family that he didn't feel well. The day before Mays was on a US Airways flight from Philadelphia that had a rough landing in Tampa. By rough I mean the the tires blew out and, according to passengers including Mays, items fell from the ceiling. Some passengers had bumps or bruises, but the airline said there were no serious injuries.

Mays said in an interview that something hit him in the head. He wasn't specific, but frequent fliers know how overcrowded the overhead bins can get. Getting them to close sometimes requires brute force. Still, Mays told a local TV station that he had a "hard head," so he probably didn't think too much about it. But then he didn't wake up the next morning. (Brings to mind Natasha Richardson.)

The infomercial celeb was 50 years old so there are many natural causes of death out there and an autopsy is scheduled. For the sake of the airlines, I hope his death had nothing to do with a head injury.

UPDATE: Autopsy results apparently show Mays died of heart disease. There was no head trauma. Whew.

AP Photo

Posted by Michelle Deal-Zimmerman at 11:00 AM | Permalink | Comments (1)
Categories: Airlines
        

With the stock market up 30 percent compared to its lows earlier this year, more investors are wondering whether it's time to invest in stocks again, wrote personal finance columnist Eileen Ambrose in her Sunday column.

But that's the wrong question, she says ...

... because you shouldn't try to "time the market." It's too unpredictable. While it might be up now, it could be back down in a few weeks.

Instead, decide whether you can handle that level of volatility with your hard-earned cash. If seeing red ink on your balance statements upsets you, choose something more conservative. However, younger investors saving for retirement can take advantage of the swings because they're not going to cash in for a long period of time, advisors suggest.

Are you risk-averse or a nervous nellie? What percentages have worked for you? 

(photo: Wagner T. Cassimiro "Aranha"/Flickr)

Posted by Liz Kay at 9:05 AM | Permalink | Comments (0)
        

Take $5 off online Target purchases of $50 or more with coupon via momsview.com. Valid through Saturday, June 27.

Get a free 12-oz. Seattle's Best Coffee beverage at Borders stores through July 2, via Miss Bargainista.

And sign up for a free sample of Yoplait Whips yogurt, thanks to TheSavvyShopper.

The site recommends that you try the product frozen, which forces me to ask: has anyone ever tried to freeze yogurt at home? Can it be done either in the container or is an ice cream maker necessary? Could one use the coffee can ice cream maker method?

Posted by Liz Kay at 1:33 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food, Shopping
        

IRS spokesman Jim Dupree has some bad news for readers wondering if they would qualify for the first-time homebuyer credit.

Q. I live and work in Southern Louisiana eight months of the year but do not want to buy a house here due to the associated risk. Can I buy a house in another state and establish that house as my principal residence in order to receive the credit? I wouldn’t be living in the house but four months per year.

Dupree: A home must be purchased as the taxpayer’s principal residence for purposes of the first-time homebuyer credit to qualify.

In the case of a taxpayer using more than one property as a residence, whether a particular property is a principal residence depends on all the facts and circumstances.

Section 1.121-1(b)(2) of the Income Tax Regulations governs the definition "principal residence" for purposes of the first-time homebuyer credit. It provides that if a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer uses a majority of the time during the year ordinarily will be considered the taxpayer’s principal residence.

In addition to the taxpayer’s use of the property, relevant factors in determining a taxpayer’s principal residence, include, but are not limited to--

(i) The taxpayer’s place of employment;

(ii) The principal place of abode of the taxpayer’s family members;

(iii) The address listed on the taxpayer’s federal and state tax returns, driver’s license, automobile registration, and voter registration card;

(iv) The taxpayer’s mailing address for bills and correspondence;

(v) The location of the taxpayer’s banks; and

(vi) The location of religious organizations and recreational clubs with which the taxpayer is affiliated.

Q. I’m buying a house now. Do I qualify even though I had a trailer that I bought in 1989 and paid off in 2001?

Dupree: Sorry. If you owned and lived in a trailer as your principal residence at any time during the three years prior to the date of purchase of your new home, you would not qualify.

UPDATE: Got more questions about the $8,000 first-time homebuyer credit? E-mail them to Eileen.ambrose@baltsun.com before Tuesday, Sept. 8, 2009 and then tune in at noon on Sept. 8 for her live chat with IRS spokesman Jim Dupree to get the answers.

Posted by Eileen Ambrose at 11:53 AM | Permalink | Comments (0)
Categories: Taxes
        

Whoa, summer temperatures are definitely here. A few simple steps will help keep your air conditioner working at its peak so you can keep cool without sweating too much over your bills.

Consumer Reports recommends washing the filter (dry it thoroughly before using!) of room air conditioners, vacuuming the coils inside and out and checking the seals. They also advise against "short-cycling" --- turning the AC back on within 10 minutes of turning it off.

They recommend calling in professionals for maintaining central AC systems, though.

Also, let's be reasonable with the thermostat ...

... and set it at a summer-time temperature like 78 when you're home, recommends the Financial Planning site at About.com. It's summer, right? There's no reason to chill things down to goose-bump level. Frankly it just makes things seem hotter when you are actually exposed to the unadulterated elements.

If you have a programmable thermostat, or even if you don't, the About.com site recommends setting the house at 85 degrees if you will be away for more than a few hours. 

Another inexpensive way to beat the heat is to prevent your home from getting hot in the first place. We told you last summer about blocking the sun with room-darkening shades or curtains or even just straight-up aluminum foil.

Try to avoid baking or running dryers or dishwashers to prevent the introduction of more heat to your space as well. 

(photo: nicolaitan/Flickr)

Posted by Liz Kay at 9:04 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Energy/Utilities
        

We've told you how mobile phone companies have been suing the annoying culprits behind the automated extended car warranty calls that plague us morning, noon and night. 

Well, in a complaint filed in an Atlanta federal court, AT&T Mobility has named a Maryland company, Volcano Leads, as one of nine responsible for millions of these calls during just a few months.

Justin Ramsey, the owner of Volcano Leads, denied the allegations when reached yesterday by business reporter Lorraine Mirabella, saying his business never owned an auto-dialer.

AT&T says the companies violated the federal Telephone Consumer Protection Act, and hopes to prevent them from making future calls, as well as fining them $500 for each violation of the act.

See below for a copy of the complaint as well as a sampling of the numbers they were calling from --- perhaps they are among the ones you've set to silent ring tones!

Posted by Liz Kay at 1:54 PM | Permalink | Comments (1)
Categories: Cars, Cellular/Landline/Voice over Internet, Scams, Warranties
        

And, with many businesses treating July 3 as a holiday (because July 4 falls on a weekend) hopefully you'll have a little more free time to chip away at some of those nagging tasks.

Here's a couple of ideas for some mid-year maintenance:

--- Check your credit reports: We've told you that Marylanders can check your credit reports twice a year, from each of the three credit reporting bureaus. With this set up, you could look at one report every two months --- but no worries if you haven't seen any, yet. Just review all three now, and put staggered reminders on your calendar to check one every two months from now on.

--- Start tucking away money for retirement. Have you set up your 401(k) payments? How about setting aside money through automatic withdrawals for an IRA? If it's one of those things you've been meaning to get around to, don't waste any more time.

--- Review your goals: If you made any promises to yourself to save money, take a look at your progress and make adjustments if necessary. Did you plan to brown-bag lunches instead of buying them, but find yourself on the cafeteria line instead? Examine what impediments are preventing you from achieving these goals (i.e. no time in the morning? Can you pack dinner leftovers the night before?) and make sure your expectations are both reasonable and quantifiable. Pledging to bring lunch three times a week can help you get into the habit.

Smart Money magazine also has other easy tips to avoid wasting money by procrastinating ...

... including checking your budget for fat (such as memberships or subscriptions you're not using), planning ahead for gifts and mail to avoid paying overnight shipping charges, forgetting to turn in rebate forms on time and finding the highest interest rates for your savings (via Consumerist).

The article also says you're wasting money by not hunting through your coins to see if you have anything valuable among your pennies and dimes, but I'm not sure about the return-on-investment there. You'd have to learn about the printing imperfections, etc. that make coins collectable. But, I'd say if you have access to a careful child who might enjoy a numismatics hobby, by all means, encourage it.

Any other ideas?

(photo: rdmrtnz/Flickr)

Posted by Liz Kay at 10:59 AM | Permalink | Comments (1)
Categories: Cheap/Frugal, Personal finance
        

The government has a site for the Car Allowance Rebate System, better known as Cash for Clunkers.

It certainly doesn't have all the details just yet, and, in fact, the president hasn't signed the legislation into law.

But transportation officials answer some frequent questions on the site and say they are scrambling to sign up dealers willing to participate.

The program - worth $3,500 or $4,500 depending on what type of vehicle you own and what you buy - applies to sales of new fuel-efficient cars starting in July.

Posted by Eileen Ambrose at 9:01 AM | Permalink | Comments (1)
Categories: Cheap/Frugal
        

Well, the time has come. Utilities such as Baltimore Gas & Electric, Pepco and Delmarva Power have plan to shut off customers who have outstanding balances. Others such as Allegheny Power and Washington Gas Light have already begun.

The terminations come, utility company representatives say, after weeks of trying to contact customers through letters to negotiate payment plans to avoid termination, as directed by the Maryland Public Service Commission in April.

Theresa Czarski of the Office of the People's Counsel, which advocates for consumers, said she and other members of a work group planning implementation of the payment plans urged utilities to indicate on the outside of the envelopes so consumers would understand that these letters were more than just another overdue bill notice.

If you or someone you know is in danger of having their service cut off, don't ignore the payment requests --- call the company. You can get an extension and you can work out a payment plan. The weather's already gotten way hotter.

Here are some sources if you need assistance to pay your energy bills:

* The Maryland Office of Home Energy Programs administers several home energy assistance programs, including electric bill assistance, heating bill assistance and even home weatherization programs, to help get bills down to a reasonable size. Applicants must meet income requirements to receive help.

* The Fuel Fund of Maryland distributes money to different local agencies who then give it to folks who meet the state's income requirements, but also makes special exceptions for people who make more money but are facing extreme hardship.

The bottom line is, however, that customers need to contact their utility.

Posted by Liz Kay at 2:27 PM | Permalink | Comments (0)
Categories: Economy, Energy/Utilities
        

It seems the Wild Wild West atmosphere of blogging is slowly being tamed, or at least attempts are being made.

Last week, I wrote about the rising number of libel lawsuits against comments made on blogs and Twitter.

But the Federal Trade Commission is also looking at setting up endorsement guidelines for bloggers who promote products after receiving gifts or trips from the manufacturer.

Bloggers, if you earn commissions on the sales of products you promote, be prepared to come under FTC oversight.

Below is Associated Press business writer Deborah Yao’s article on the topic. Let us know what you think.

Writes Yao:

Savvy consumers often go online for independent consumer reviews of products and services, scouring through comments from everyday Joes and Janes to help them find a gem or shun a lemon.

What some fail to realize, though, is that such reviews can be tainted: Many bloggers have accepted perks such as free laptops, trips to Europe, $500 gift cards or even thousands of dollars for a 200-word post. Bloggers vary in how they disclose such freebies, if they do so at all.

The practice has grown to the degree that the Federal Trade Commission is paying attention. New guidelines, expected to be approved late this summer with possible modifications, would clarify that the agency can go after bloggers — as well as the companies that compensate them — for any false claims or failure to disclose conflicts of interest.

It would be the first time the FTC tries to patrol systematically what bloggers say and do online. The common practice of posting a graphical ad or a link to an online retailer — and getting commissions for any sales from it — would be enough to trigger oversight.

"If you walk into a department store, you know the (sales) clerk is a clerk," said Rich Cleland, assistant director yn the FTC’s division of advertising practices. "Online, if you think that somebody is providing you with independent advice and ... they have an economic motive for what they’re saying, that’s information a consumer should know."

The guidelines also would bring uniformity to a community that has shunned that.

As blogging rises in importance and sophistication, it has taken characteristics of community journalism — but without consensus on the types of ethical practices typically found in traditional media.

Journalists who work for newspapers and broadcasters are held accountable by their employers, and they generally cannot receive payments from marketers and must return free products after they finish reviewing them.

The blogosphere is quite different.

"Rules are set by the individuals who create the blog," said Lee Rainie, director of the Pew Internet and American Life Project. "Some people will accept payments and free gifts, and some people won’t. There’s no established norm yet."

Bloggers complain that with FTC oversight, they’d be too worried about innocent posts getting them in trouble, and they say they might simply quit or post less frequently.

Between ads on her five blogs and payments from advertisers who want her to review products, Rebecca Empey makes as much as $800 a month, paying the grocery bill for a family of six. She also has received a bird feeder, toys, books and other free goods.

Now the 41-year-old mother of four in New Hartford, N.Y., worries that even a casual mention of an all-natural cold remedy she bought herself would trigger an FTC probe.

"This helped us. This made us feel great. Will I be sued because I didn’t hire a scientist to do research?" Empey said.

Empey, whose blogs include New York Traveler and Freaky Frugalite, said she discloses compensation arrangements on a page on her blogs or through a "support my sponsor" logo. She said most of her readers understand that she sometimes gets compensated.

By contrast, a mommy blogger on Double Bugs praised Skinny Cow low-fat ice cream sandwiches and thanked a Web site called Mom Central for the chance to try them. But there’s no clue that Nestle SA’s Skinny Cow division was giving bloggers coupons for free products.

Some bloggers believe more uniform disclosure and practices would help instill trust and make advertisers more comfortable working with bloggers. To them, the question becomes whether the FTC should be the one crafting standards.

"It would always be better for bloggers to self-police," said Robert Cox, president of Media Bloggers Association in New Rochelle, N.Y. "We have laws on the books. They apply to everybody, not just people who write blogs."

Yuli Ziv, who writes a fashion blog from New York, is working on one such effort at self-regulation, helping craft an ethics policy for about 15 Web sites as part of the Style Coalition started in January to help bloggers become more professional.

"It’s been an issue, regardless of the FTC," she said. "It’s about trust."

Existing FTC rules already ban deceptive and unfair business practices. The proposed guidelines aim to clarify the law and for the first time specifically include bloggers, defined loosely as anyone writing a personal journal online.

"It’s sort of a recognition that word-of-mouth marketing in whatever form, whether electronic or not, is a significant part of the marketing strategy of modern companies," Cleland said. "Because it’s new, I think it is imperative that we provide some kind of guidance."

If the guidelines are approved, bloggers would have to back up claims and disclose if they’re being compensated — the FTC doesn’t currently plan to specify how. The FTC could order violators to stop and pay restitution to customers, and it could ask the Justice Department to sue for civil penalties.

Any type of blog could be scrutinized, not just ones that specialize in reviews.

So parents keeping blogs to update family members on their child’s first steps technically would fall under the FTC guidelines, though they likely would have little to worry about unless they accept payments or free products and write about them.

But they would need to think twice if, for instance, they praise parenting books they’ve just read and include links to buy them at a retailer like Amazon.com Inc.

That’s because the guidelines also would cover the broader and common practice of affiliate marketing, in which bloggers and other sites get a commission when someone clicks on a link that leads to a purchase at a retailer. In such cases, merchants also would be responsible for actions by their sales agents — including a network of bloggers.

Amazon declined to comment.

Cleland said the FTC would likely focus on repeated offenses that continue after a warning to stop.

Still, the agency has a big job ahead as new communications channels continually emerge. Advertisers now are paying some Twitter users to post short items through the increasingly popular messaging service. The FTC says the guidelines would cover such arrangements, regardless of the medium.

Even before the FTC commissioners vote on the final guidelines this summer, some in the blogging world have taken pre-emptive measures.

In May, IZEA, an Orlando, Fla.-based firm that matches advertisers with 265,000 bloggers, began sending reports to advertisers on whether hired bloggers are disclosing compensation arrangements, as IZEA requires. Such bloggers are paid as much as $3,000 for a 200-word post.

Over the holidays, IZEA ran a campaign in which bloggers who don’t normally shop at Sears Holdings Corp.’s Kmart stores were given $500 gift cards and encouraged to write about their experiences in the stores. To reduce the chance of a bad review, the retailer said it avoided bloggers who previously made negative remarks about the company.

Meanwhile, a blogger on TravelingMom was whisked away on a free Disney cruise in January. She stayed in an ocean-view stateroom, where she was greeted by Champagne on ice and a plate of cheese and fruit. Later in the trip, she and other bloggers basked in the sun on Castaway Cay, Disney’s private island.

"I’ve been on cruises before, but never like this one. The Disney Wonder (cruise ship) is ... well ... wondrous," she gushed on her blog.

She did disclose the free trip.

Mandatory disclosures could change how reviews are perceived online because many Internet users might never imagine that bloggers get compensation.

"I don’t think, for the average reader of a blog, it immediately comes to mind that they actually have a relationship with the company," said Sam Bayard, a fellow at Harvard’s Berkman Center for Internet & Society. "You think about (blogs) as personal, informal, off the cuff and coming from the heart — unfiltered, uncensored and unplanned."

———

On the Net:

Proposed guidelines:

http://www.ftc.gov/os/2008/11/P034520endorsementguides.pdf

AP-ES-06-22-09 0000EDT!

Posted by Eileen Ambrose at 12:02 PM | Permalink | Comments (0)
Categories: Consumer protection
        

Clearly food and drug dating is a problem that many retailers struggle with, given the reports of supermarkets that don't move expired yogurt from their dairy aisles and the drug stores that can't keep up with the expired over-the-counter medicine and infant formula on their shelves.

But are consumers really in danger when they use products past these dates? What do they really mean, anyway?

According to a food dating primer from the USDA's Food Safety and Inspection Service, in most situations the dating gives people a sense of when the item will be at its peak quality -- that the texture, flavor and color have not deteriorated.

You really shouldn't buy infant formula after the "use by" date, however. Federal regulations require infant formula and baby food to be labeled with dates because after that point, the product starts to break down and might not deliver nutrients as promised.

For other products with a "use by" date, follow that date.

But you can keep milk for about a week past its sell-by date, and eggs as many as three to five weeks, according to the USDA. The USDA site has a chart to give you guidelines about when to use products after the package has been opened.

If this all seems too confusing, we also told you about the site StillTasty.com, a searchable database that should eliminate the need for the sniff test in front of the open fridge door.

As for medicine ...

... expired drugs generally decline in efficacy over time, according to Consumer Reports. In other words, that pain reliever might not offer much relief from a headache.

So, toss expired prescriptions and over-the-counter medicine as well as any vitamins that show signs that they are past their prime (crumbling pills or capsules that stick together). And definitely guard against wastes of money by checking expiration dates before purchasing things at the store.

Posted by Liz Kay at 9:20 AM | Permalink | Comments (0)
Categories: Cheap/Frugal
        

Some people aren't that excited about the Cash for Clunkers program recently approved by Congress.

Writes George Cook:

"If these people don't have a 700 beacon score on the credit application they will not get financing. Plus, if they do have a high 700 score,they would not be driving a clunker. In other words, the $4,000 means nothing if they cannot get approved. Remember also half of that money goes to tax and tags. This has not been thought out by our illustrious LEADERS."

Cook isn't the only one who has made that point. But am I the only one that drives my car into the ground before buying another? Or, as Cook suggests, do people with good credit scores only drive newer cars? What do you think?

Posted by Eileen Ambrose at 2:12 PM | Permalink | Comments (12)
Categories: Cheap/Frugal
        

Supermarkets aren't the only place you have to watch out for expired products.

We told you last week about the Carney Safeway stocking expired yogurt. But in early June, a survey of 20 CVS stores in the Baltimore area showed that 15 of the 20 had some sort of out-of-date products on their shelves and available for sale, including dairy products, infant formula and over-the-counter medicine.

The survey was conducted by Change to Win, a coalition of unions and workers fighting for affordable health care and retirement benefits. The group held a rally in front of a Harford Road CVS today (the second in two months) to draw attention to the problem.

However, a CVS spokesman disputed the group's findings, saying they have no way of verifying that these expired products were in fact found on their shelves. The spokesman, Mike DeAngelis, said ...

... Change to Win has been working for two years to disparage CVS Caremark because "we refuse to waive the right that our employees have had for decades under federal law to vote confidentially in union elections."

"We have a clear, national product removal policy in place to help ensure that our stores do not offer products for sale past their expiration dates," he said.

However, with more than 100,000 products on store shelves, it's "a labor-intensive process that is not immune from error."

Earlier this month, CVS settled with the California attorney general over repeated expired product violations. Now, customers in that state get a $2 coupon if they spot an expired product (one per visit). The company also paid nearly $1 million in fines.

No matter what, you should protect yourself -- and your pocketbook -- from wasting money on expired food or pharmacy products. DeAngelis said CVS will refund customers who buy out-of-date items, but it's easier to remember to look before you buy.

Posted by Liz Kay at 1:56 PM | Permalink | Comments (2)
Categories: Cheap/Frugal, Consumer safety, Food
        

Maryland and nearly 40 other states have reached a $9.75 million settlement with TJX Cos., which suffered a massive data breach in 2005 and 2006.

Under the settlement, TJX — which denied any wrongdoing — agreed to improve its security practices and to pay a $5.5 million penalty and $1.75 million in attorney costs to the states. The retailer also agreed to set up a $2.5 million data security fund that can be used by the states to finance their security initiatives, according to Maryland’s Attorney General.

Maryland’s share of the settlement will be $92,790, says spokeswoman Raquel Guillory.

Security breaches several years ago led to the theft of 100 million credit card transactions involving consumers who shopped at company stores TJ Maxx, HomeGoods, A.J. Write and Marshall’s stores.

Posted by Eileen Ambrose at 12:32 PM | Permalink | Comments (0)
Categories: Identity theft
        

You may have heard that more than 130 Zicam nasal spray users had lost their sense of smell, according to the Associated Press. The Food and Drug Administration has recommended people stop using the product, which contains zinc. Zinc can cause temporary or permanent damage to nerves needed to smell, the store states.

Consumers might have missed the tiny "homeopathic" label on the packaging of the product, marketed as a cold remedy. But these and other homeopathic products are on pharmacy shelves without Food and Drug Administration testing for side effects or efficacy, according to the Associated Press.

The Associated Press analyzed FDA side effect reports and found more than 800 situations where people may have gotten ill from homeopathic remedies.

What are these products? According the AP story: 

Homeopathy sprang from the inventive — some would say fanciful — mind of German physician and chemist Samuel Hahnemann in the late 1700s. Experimenting on himself, he became convinced that if an ingredient causes a symptom in a healthy person, it will treat the disease that causes the same symptom. He also theorized that diluting ingredients to minuscule, even untraceable, concentrations paradoxically makes them more powerful.

Generally speaking, most homeopathic medicine contains very low levels of the active ingredients, so people aren't harmed by their use, according to the story. At least, their bodies aren't harmed --- they just wasted their money, critics say.

In the past, Zicam manufacturer Matrixx has paid $12 million to settle with customers with complaints, and has voluntarily recalled nasal gel and nasal swab products after the FDA issued its warning last week. The company president defended Zicam in a statement, stating that loss of smell, known as anosmia, is caused by the cold:

"Matrixx Initiatives stands behind the science of its products and its belief that there is no causal link between its Zicam Cold Remedy intranasal gel products and anosmia,” said William J. Hemelt, Matrixx Initiatives’ acting president. “It is well understood in the medical and scientific communities that the most common cause of anosmia is the common cold, which Zicam Cold Remedy intranasal gel products are taken to treat. Given the enormous number of doses sold and colds treated, there is no reason to believe the number of complaints of anosmia received is more than the number that would be expected in the general population. There is no reliable scientific evidence that Zicam causes anosmia.”

But it's not just over-the-counter remedies that can dull the senses. According to a story in the U.K.'s Daily Mail (via Consumerist), some people who have eaten pine nuts reported a bitter, metallic taste that lasted up to two weeks at a time.

Sufferers of what became known on the Internet as "pine mouth" found nothing was palatable after consuming the imported Chinese pignolis. Researchers are baffled, according to the Daily Mail story, because some people are affected while others aren't, even if they ate the same nuts.

Posted by Liz Kay at 9:15 AM | Permalink | Comments (0)
Categories: Consumer safety, Healthcare, Marketing/Advertising
        

Let's face it: it's often difficult for couples to talk about money, and that includes discussing retirement options, according to Eileen Ambrose's excellent Sunday column.

At least 82 percent of those surveyed disagree on at least one element of their futures together, according to her column.

This surprised me a lot, because I thought that people who had been married for years would have an easier time discussing their hopes and priorities than those just starting out.

In this era of credit crises and real estate dilemmas, it seems like financial intimacy is the new intimacy. People seem to have just as hard a time talking about their financial history as their sexual past (if not more so).

But knowing where your partner stands when it comes to money --- both his or her current situation along with their attitudes and habits --- can tell you a lot about his or her personal hang-ups and personality. And unlike when you're single, other people are affected by your money decisions.

It seems like marriage is all about learning to make compromises, particularly about limited resources such as money and time. So, the bottom line is, the sooner you start talking about what your goals for retirement might be (such as travel, where you'll live, whether one or both of you will work, etc.) the easier it will be to plan with those goals in mind.

So how do you make those talks more interesting, no matter what stage you're in?

Here's one unusual recommendation:  

lingerie and a bottle of wine, according to financial planner Lisa Peterson, author of "

Pillow Talk: Making Talking about Money Sexy in Your Marriage" (discovered via a Marketplace interview last year). Hey, whatever it takes to get your taxes done ...

Posted by Liz Kay at 11:34 AM | Permalink | Comments (1)
Categories: Personal finance, Retirement
        

Let’s hope my Sunday column about a significant number of couples not talking to each other about retirement issues got a conversation going among partners.

One reason mates don’t discuss these issues is they assume their partners want the same thing that they do so there’s no reason to talk.

But Jim D. of Perry Hall says couples need to talk more than just finances, though. He writes:

“I enjoyed the article you wrote in the June 21st edition of the Sun, Disparate Dreams. The topic is very timely for my wife and me. We are looking at retirement in the next four or five years. While the thrust of the article revolves around financial planning, a critical component for a happy retirement, I’m convinced an equally critical component is having a realistic plan to stay busy. I’ve seen too many colleagues retire with the idea they will stay busy “taking care of all the things around the house they haven’t had time for over the working years.” Then, two months later they’re asking … “o.k., what now?” Watching for the mailman becomes the highlight of the day. Likewise, I’ve seen other colleagues who think travel can occupy their retirement years, until they figure out the costs involved. The financial plan is critical so you don’t have to make meatloaf out of dog food, but having a realistic plan to stay active and engaged is equally important. Emphasis on the realistic.”

What do you think?

UPDATE: read more about financial intimacy with your partner. 

Posted by Eileen Ambrose at 9:27 AM | Permalink | Comments (0)
Categories: Personal finance
        

Anyone spotted good deals for Father's Day?

I heard about a Boston Market coupon for a free kids' meal with any adult purchase of more than $5 (you can't use it on $5 menu items). Expires at the end of the month, so all parents could get a treat by June 30. Be sure to have the kiddies color in the picture before you turn it in.

Ah, Father's Day ... just makes me grumble. Just another excuse to peddle gifts that play up stereotypes of what dads like: electronics, golf, etc. My frugal father always says not to buy him anything, because he can select items he needs far more skillfully than I can. 

Okay, he's obviously at an extreme. But somehow ...

... I do appreciate that I'm not forced to follow the annual ritual of purchasing gadgets from SkyMall or Brookstone.That's not to say I never get him anything. For Christmas I bought him CFLs. And for his birthday I bought him a cantaloupe. I've also handed him purple cauliflower in the past.

(Father's Day card by Ellie, via Davef3138/Flickr)

Posted by Liz Kay at 9:03 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Baltimore Coffee & Tea says Dads deserve a break, the coffee kind. So on Father’s Day, the retailer is giving away free coffee to fathers at its shops in Timonium, Annapolis and Frederick.

Dad is entitled to one medium-sized tea or coffee. “Iced or hot, frozen or frothy,” says Mary Romeo, regional retail director.

(Romeo didn't say whether Dad had to bring in a picture of the kids as proof of fatherhood. A plaid shirt might be the only identification you need.) 

Locations: 9 W. Aylesbury, Timonium 890 Bestgate Road, Annapolis 5209 President’s Court, Frederick

Posted by Eileen Ambrose at 8:54 AM | Permalink | Comments (0)
Categories: Cheap/Frugal
        

The Federal Trade Commission says it has mailed more than 400,000 checks to consumers who were victims of an illegal credit card billing scheme. Checks went out June 12.

The restitution stems from a lawsuit filed in 1999 — yep, that long ago — against J.K. Publications and other defendants. The FTC says they made unauthorized credit and debit card charges for purported Internet services. Most of those charges occurred in 1998.

Why did it take so long for wronged consumers to get their money back?

According to the FTC: “Substantial time passed between the court’s judgment and the issuance of these checks because the defendants moved millions of dollars of their ill-gotten funds offshore, and it took significant time and effort to locate and repatriate the fraudulently obtained money.”

If you get one of those checks, cash it. And the FTC warns that it never requires consumers to pay money upfront or provide additional information before they can get a restitution check.

It appears the FTC is anticipating that some phishers will be emailing us with offers of restitution checks if we pay some money first or give up our bank account numbers. WatchOut!

Posted by Eileen Ambrose at 3:36 PM | Permalink | Comments (0)
Categories: WatchOut!
        

It's a little hard to call it "miscommunication" when you send someone's child on a plane to the wrong state. But when you do it twice in the same week to two different families, it becomes obvious there's not a whole lot of communication going on in the first place.

A 10-year-old girl traveling from Boston was placed on the wrong plane by a flight attendant. Instead of meeting her granddad in Cleveland, she ended up in Newark. During the same weekend, an 8-year-old girl heading from Texas to Charlotte ended up in Fayetteville. No, not North Carolina - Arkansas. Both kids were flying as unaccompanied minors.

Here's how it should work: after the first "mixup," you apologize profusely, give the family free round-trip tickets, give the flight attendant a stern warning and a map and hope you don't hear from the lawyers. (Too late.) In the mean time, you make certain that every minor in your care for the next month gets on the right plane no matter what. Even if it means the CEO himself has to tow a couple of whiny kids to the tarmac. You get it right.

George Hobica over at airfarewatchdog.com has an idea for parents - buy a ticket for yourself even though you're not flying. That way you can take your child right onto the plane, get him settled with snacks and games, buckle him up, kiss him goodbye and then head for the airline counter to get your refund. Of course, airlines aren't known for handing out refunds, but maybe you could get a credit toward your next flight.

A better idea, from Jonathan Dean, spokesman for BWI Marshall Airport, is for parents to request a "gate pass" from the airline's ticket counter. (Make sure you have your I.D.) This may vary by airline, but it doesn't hurt to ask. That way, you can escort your child to the gate. Here are some more tips for parents from Southwest Airlines.

Either way, you'll know your child is on the correct flight. Because with Continental calling this a "freak accident," I'm not sure you can trust them - or maybe any airline - to get it right.

Photo by Jerry Jackson, Baltimore Sun Staff

Posted by Michelle Deal-Zimmerman at 10:17 AM | Permalink | Comments (7)
Categories: Travel
        

Get a free McMuffin or biscuit breakfast sandwich with any McDonalds McCafe coffee drink purchase from June 22 through June 28 at McDonalds in the greater Baltimore area.

What's "greater Baltimore"? Well, it includes Anne Arundel, Baltimore, Carroll, Harford and Howard counties.

Now, here's my question: is this a good deal?

Apparently prices for these drinks may vary, mostly around $2 to $3. According to Serious Eats' McCafe review, they max out at around $4 just like that other fancy coffee retailer you've heard about.

Let's be honest: you could probably make a breakfast sandwich and a coffee at home for less money than this deal would cost you --- although not everyone has a home equipped with a cappuccino maker. Or a drive-thru.

So, please let us know what you think about this offer in the comments. Is the prospect of an Iced Mocha and a (free) Sausage biscuit sound better than scrambling your own eggs?

And what's your favorite bargain breakfast --- either purchased on the run or DIY at home? Extra credit if it's portable. 

Posted by Liz Kay at 9:02 AM | Permalink | Comments (1)
Categories: Cheap/Frugal, Food
        

Mark Malkoff is pulling a stunt that's sure to amuse airplane geeks. Malkoff, a comedian, is spending a month on a jet in an effort to defeat his fear of flying. He began June 1 with an AirTran flight from his home in New York to Atlanta. He's spending the rest of the month flying from 5 to 12 flights a day - wherever AirTran will take him.

I'm sure you have lots of questions like - who's paying for it? I don't know. But the publicity doesn't hurt AirTran - or Malkoff, who has done other stunts before like living in an Ikea store, so he's media savvy, too. Doesn't matter. The guy is funny - check out his video on airplane toilets. Bathroom humor at its best.

Posted by Michelle Deal-Zimmerman at 7:36 PM | Permalink | Comments (0)
Categories: Travel
        

If you got a free KFC grilled chicken coupon but have not yet received your raincheck, it will soon be in the mail, according to KFC's spokesman.

They are still processing the rainchecks and expect them all to be mailed by Friday, June 19, said Rick Maynard of KFC. That would mean they should land in your mailbox by next week, in most cases.

KFC decided to mail rainchecks after ...

The company's solution: have people bring their coupons to stores or mail them to KFC for rainchecks that can be redeemed within a staggered two-week period. To sweeten the deal, they threw in a free soda. 

But people were furious about how this free offer was handled, saying that it was all just a ploy to get them into stores.

In fact, many people were frustrated by how difficult it was just to load the Web site and print the coupons in the first place.

Remember, even items advertised as free cost something. We discussed earlier how companies can afford to sell free or cheap fast food: generally they shave down costs by removing some ingredients. Or, they make money on collateral sales: for example, you come for the free doughnut and buy a coffee while you're there.

Still, there's at least one offer you can take advantage of through September. We've been telling you about Mars' free real chocolate campaign. Don't forget to register Friday for a coupon for a free chocolate bar!

Posted by Liz Kay at 9:49 AM | Permalink | Comments (3)
Categories: Cheap/Frugal, Food
        

But the Electronic Frontier Foundation has made them a little easier to track with its new TOSBack site (discovered via Consumerist). The site compiles insertions and deletions to terms-of-service agreements for 58 Web site policies, including Facebook, MySpace, Netflix, Comcast, YouTube and other companies.

You can even subscribe to an RSS feed of terms-of-service changes to get the changes sent to you in whatever reader you prefer. 

Posted by Liz Kay at 8:36 AM | Permalink | Comments (0)
Categories: Consumer Web Site of the Week, Consumer protection, Naughty businesses/NBotW
        

Remember: you don't need to pay any money to file an unemployment insurance claim, and the centers can help people who don't speak English, according to the Maryland Department of Labor and Licensing.

DLLR officials fear that some people are jeopardizing their personal information or perhaps not receiving all of their benefits if they work through an intermediary.

Hit the jump for a list of contact numbers for Maryland unemployment insurance claim centers:

Posted by Liz Kay at 3:01 PM | Permalink | Comments (0)
Categories: Economy, Wages
        

A word to the wise: check the sell-by date of all your perishable foods before you put them in your grocery cart.

Esther Roskam has learned that you can't rely on stores to clear their shelves of dairy products past their sell-by dates.

The Parkville resident has shopped at the Safeway on Waltham Woods Road in Carney for several years. But starting in December, she noticed expired dairy products still on the shelf --- mostly her favorite Dannon Fruit on the Bottom yogurt, but sometimes even milk or buttermilk. 

Roskam spoke the store manager on duty each time she visited but never felt like it made a difference. She became concerned that the store might not be upholding other, less obvious standards.

"They’re not listening to me saying there’s expired food in their case. How do i know they’re keeping the food at the right temperature?" she asked.

Thankfully the world has dedicated consumers such as Roskam to advocate for shoppers like me who blindly pick up cheese and sour cream without a care in the world, never ensuring that the sell-by date has not passed. 

"I'm concerned for all the people shopping there who don't know what they're getting," she said.

After months of talking to the store's managers, Roskam contacted The Sun, and we called the Baltimore County Department of Environmental Protection & Resource Management, which inspects food service businesses.

Based on her complaint, a sanitarian visited on June 3 and discovered ...

... 25 6 oz. containers of Dannon Light and Fit yogurt all with expiration dates ranging from May 6 to May 29, according to a complaint investigation form. The products were voluntarily discarded, the report states.

No citations were issued for the violation, but they abated the problems by removing the expired products, said Alphonsus Korie, a field supervisor for the county environmental health department. They could receive a citation if the problem persists on a future visit.

When customers spot expired products on the shelf at any store, they should alert management, Korie said. If a customer remains concerned, they can file a complaint with the county.

Safeway spokesman Greg Ten Eyck said he was "very disappointed" to hear about this problem, and promised to call the manager at the Safeway store to discuss the situation.

"It sounds like a dairy manager is not doing the job of correctly circulating out the oldest product," he said. "Sounds like they need a little more supervision to make sure they're properly following company policies and procedures."

"It's certainly not acceptable by our standards," said Ten Eyck, adding that Safeway would take steps to fix the problem. 

Roskam was pleased by the outcome. “I’m really happy it’s being addressed at this point,” she said. “I feel like I don’t have faith it will be immediately resolved, because Safeway has demonstrated there’s an ongoing problem.”

Unfortunately, the problem persisted as recently as yesterday. She visited the store Monday and discovered that all her preferred brand of yogurts were outdated May 31 through June 6.

Posted by Liz Kay at 12:12 PM | Permalink | Comments (9)
Categories: Food, Naughty businesses/NBotW
        

Filene's Basement will remain open at Baltimore's Inner Harbor now that Syms has been approved as a buyer by a bankruptcy court judge, according to a story by Andrea Walker.

The deal could be approved as early as Thursday, her story states, and they are keeping their assets including employees --- good news for anyone who was dreading the unemployment line.

But Syms wouldn't comment on the deal, so we're left to speculate about what this will mean. I've got two questions: 

1. Are this store and other Filene's Basement locations going to remain branded as Filene's, or will they morph into Syms? I know people are fiercely loyal to their favorite off-price/discount retailers -- preferring Marshalls over T.J.Maxx, for example, even when they are owned by the same company.

2. Why is Syms expanding in its holdings in Baltimore, when they just closed the Syms store in Towson? Andrea points out it's a different location with a different following, but it surprised me.

(photo: Amy Davis/Baltimore Sun)

Posted by Liz Kay at 8:50 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Shopping
        

It should come to no surprise that restaurant owners adjust their menus to increase check totals overall and to promote the items that bring in the most profit. We told you earlier today that when there were no dollar signs on the menu, customers spent more.

As Dave Pasegic of the Restaurant Resource Group notes, a menu ...

"is the only piece of printed advertising that you are virtually 100 percent sure will be read by the guest. Once placed in the guest’s hand, it can directly influence not only what they will order, but ultimately how much they will spend."

People don't read menus from top to bottom --- or at least, their gaze doesn't necessarily linger at the top. For example ....

People tend to remember the top two items on a list and the bottom item, says Miller. "Nothing goes in those spots by accident," 

said restaurant consultant Isidore Kharasch, president of Chicago-based Hospitality Works, in a Restaurant Association article.

Food service menus should also use pictures and use design elements to highlight specific items such as different fonts, recommends the Food Service Association of America. They also use table tents as a subtle cue to try a specialty drink or to save room for dessert.

You'll find retail psychology at work on the wine list as well. The authors of the Wall Street Journal's Tastings column recommend always avoiding the second-least expensive bottle of wine, because restaurateurs know that people will pick that one to avoid seeming too cheap. (They also recommend avoiding wine by the glass, because often the opened bottles have been sitting around so long they may have deteriorated).

Knowing more about these strategies definitely makes me lose my appetite, a bit. What do you think of these subtle ways that restaurants use to guide your meal selection?

Posted by Liz Kay at 12:54 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Something to keep in mind before you order: restaurant patrons spent more money when menus listed prices without currency symbols, according to a study by the Cornell University School of Hospitality Research (via Consumerist).

The researchers tested how much visitors to the Culinary Institute of America's St. Andrew's restaurant in Hyde Park, N.Y. spent when menus listed prices in Arabic numerals with dollar signs, numerals without dollar signs and when the numbers were written out as words ($20 or 20 versus twenty).

They expected people would spend more when prices were listed as words, but discovered it was the currency-free label that led to customers running up the check. The researchers surmised that removing the dollar sign helped disassociate the numbers from an actual price --- discouraging them from actually doing the arithmetic in their head.

A brief survey of Baltimore restaurants shows mixed use of these symbols:

The Charleston does use dollar signs on the menus posted online, but the prices are only listed in a few places since patrons chose a selection of three or more dishes. Petit Louis Bistro omits the currency symbol next to individual items but does use them in some places.

The Black Olive does not use dollar signs on its menu, but does include decimal points. The Brass Elephant has dollar signs online.

Have you noticed any restaurants dropping off the dollar sign? UPDATED: Check out this post with more details about how restaurants lure customers into racking up the check.

(photo: Lloyd Fox/Baltimore Sun)

Posted by Liz Kay at 11:46 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Income-based student loan repayment plans are on the way to help some recent graduates make it through this tough employment season, according to Eileen Ambrose's column this week.

This will be good news for those who are "upside-down" in their student loan debt --- a term which usually refers to people who owe more on their home than the property is worth. I'm arbitrarily going to assign that term to folks who owe more in student loans than they earn in a year, unless we get some better suggestions in the comments below.

But an estimated 1 million people with federal loans whose debts exceed their annual pay could be eligible, particularly people with low-paid public service jobs.

Here's how it works: 

"Under the plan, if you make below 150 percent of the poverty line for your household size, your payment would be zero. That threshold works out to be $16,245 this year for singles in Maryland and most other states; $33,075 for a family of four.

"You still owe the money," possibly along with accruing interest even if payments are zero, says Bob Murray, a spokesman for USA Funds, the nation's largest loan guarantor. If your income later improves enough, payments will kick in.

If your income is above that income threshold, your monthly payment under the Income Based plan won't exceed 15 percent of your discretionary income."

Posted by Liz Kay at 8:54 AM | Permalink | Comments (2)
Categories: Student loans, Watchdog
        

Off to Ocean City's Air Show this weekend? Taking a road trip this summer? Here are some tips from ExxonMobil on how to get the most from every tank of gas:

Tune up: Before hitting the road, get your car checked out. Fixing a car that is noticeably out of tune or has failed aemissions test can improve its fuel economy by an average of 4%.

Apply pressure: Keep tires inflated to the proper pressure to improve gas mileage by 5% percent. Properly inflated tires also last longer, saving you money on replacement tires.

Avoid idling: Idling gets 0 miles per gallon.  So try to avoid congested roads by traveling when fewer cars are on the road. Map out a backup route beforehand, and carry a GPS system to re-route quickly, if needed.

Pack light: Remove any unnecessary baggage from your vehicle.  For every extra 100 pounds a car carries, its fuel economy is reduced by about 1-2%. A loaded roof rack can decrease a vehicle’s fuel economy by 5%.

Observe the speed limit: For every 5 MPH driven over 60 MPH, a car’s fuel economy can be reduced by 7-8%. (It takes gas to accelerate.)  Driving within the speed limit can also spare you a costly ticket.

Posted by Michelle Deal-Zimmerman at 12:35 PM | Permalink | Comments (1)
Categories: Travel
        

Giant supermarkets' sales have increased, after it widened its aisles, pumped up the lighting and added more technology and a wider selection of organic products to get customers to return to its stores, according to retail reporter Andrea Walker's story.

The company had initiated plans in 2008 to regain market share by adding things like hand-held scanners so people could check out as they walked through the store, as well as remote deli ordering systems.

So the sales increase is a good thing for Giant, especially after all the Giant complaints that came in last year. Readers were really disappointed with customer service, selection and more. 

The changes were enough to convince Rosemary Mountain of Baltimore to stop driving all the way to the Wegmans in Hunt Valley to get her groceries.

Then again, more people are eating at home more regularly again, as a way to save money. With that in mind, I'm wondering how technology and selection influences our perception of value ...

For example, Whole Foods Markets teaches customers how to shop there on a budget, one way to battle their "Whole Paycheck" reputation. But even that store has "loss-leaders" -- items sold for a lower price to attract people into the store. I remember noticing several years ago that organic milk was cheaper there, for example.

And I know lots of people write off Wegmans as a result of its wide selection of prepared food --- although given the volume of items they sell, the staples on its shelf may actually be cheaper.

The best way to confirm which store has the lowest prices on products you actually buy is to put together a grocery price book. Find your receipts from recent food shopping trips and jot down the prices, brands and sizes of the items you regularly buy. Then visit other stores that are convenient to you and see what they charge for similar products. Check the store brands too!

Finally, add up the prices for each store and compare the totals. You might discover you should change your habits.

Coupon fiends might also want to factor in coupon acceptance policies. A market that has a higher initial price on some products might be a great place to save if they double or even triple coupons, like Harris Teeter.

How do you decide which supermarket gets your business? Which factors are most important to you? Let us know in the survey below and feel free to elaborate in the comments.

(Photo: Barbara Haddock Taylor/Baltimore Sun)

Posted by Liz Kay at 8:51 AM | Permalink | Comments (10)
Categories: Cheap/Frugal, Food
        

Forgive me, for I have sinned. I went on vacation and totally forgot about my work. Well, sorta. I took a cruise last week on the Carnival Pride and while I did file reports to Twitter, I didn't leave any good stuff for the blog. My apologies. So, now I'll play catch up. (And if you want details on my trip, you can check out next week's cruise guide in The Sun's Travel section.)

-Speaking of vacation, does yours need saving? HomeAway.com seems to think so. They've launched a SaveOurSummerVacation site and a petition for Congress to create a "National Vacation Day" on Aug. 7. I imagine that'll go over well - isn't Congress in recess in August?

-Speaking of cruising, the Port of Baltimore set a record last weekend for number of cruise passengers on a single sailing when the Carnival Pride sailed June 6 with 2,577 passengers on board. All hands on deck.

-This summer, TSA begins operation "Secure Flight." I know - it seems like the 200th time! But it signals an important change for fliers: you'll have to provide your gender and birth date when booking a flight. You'll also have to use your legal name - no nicknames - on your ticket. (I guess I won't be flying as Donald Duck anymore.) TSA says the extra info will help them quickly clear passengers against their watch list. Some airlines are already asking for the info, but others may not do so until later this year. It's a government operation, you know, it takes time.

-Reservations begin this weekend for visitors who want to see inside the Statue of Liberty's crown. The monument's top hat opens to the public July 4 for the first time since the terror attacks of 9/11. You can walk up the 354 steps for beautiful views of the New York harbor. Admission to the crown costs an extra $3 and will be limited to about 250 guests each day.

-If you love the beach - who doesn't? - check out our Best of the Beach series. We're having our team of bloggers check out food, family, fitness, fun finds and more throughout the summer.

Posted by Michelle Deal-Zimmerman at 3:02 PM | Permalink | Comments (0)
Categories: Travel
        

Do you and your spouse agree on when you’ll retire, where or whether you’ll work part-time in retirement?

According to Fidelity Investments many couples don’t.

I’m looking to interview couples for an article about their views of retirement.

Are you both on the same page, or haven’t even broached the topic with each other yet? Do you plan to retire together or not? And if one of you leaves this planet early, are you confidant your spouse can carry on making financial decisions without you?

Or, we can talk about what other issues the pair of you has come across as retirement approaches.

Email me at eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 2:02 PM | Permalink | Comments (0)
Categories: Personal finance
        

Ah, love and relationships, how they can complicate your finances.

Almost all tax questions today deal with the first-time homebuyer credit and divorce, separation and a boyfriend.

Give a hand to Jim Dupree of the IRS for answering these tough questions.

Q. I have been divorced for the past five years but my name is still on the deed to the house that I purchased with my ex-wife. She is still living in the house. I have not lived there or paid any part of the mortgage since our divorce. My divorce papers state that she gets the house. Do I still qualify for the tax credit even though I don’t own this home?

A. Yes. A taxpayer is not considered a first-time homebuyer if the taxpayer has an ownership interest in a property which was his principal residence at any time during the last three years. In your case, if you did not live in the marital home during the past three years, the marital home would not be your principal residence during that time. Therefore, you would not be disqualified from receiving the credit based on your ownership interest in the martial home.

Q. I have owned a home since 2003. I want to add my boyfriend to the deed. Will he qualify for the 8,000 credit? We are not related.

A. No, he won’t.

This questioner, who we’re glad to hear is not related to her boyfriend, had this follow-up:

Q. Would it be different if I quit claimed it to him, would he then be able to claim the credit?

A. No. Your boyfriend must "purchase" a home, as his principal residence, to qualify for the credit.

Q. My husband bought a house year 2004, and it’s all under his name; though married we always file separate. He sold the house this year. Am I qualified as a first time buyer?

A. No. Since your husband had ownership interest in a principal residence within the prior three years, neither of you may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. You cannot take the credit even if you filed on a separate return.

Q. I have been legally separated for a year now, but have not filed for divorce. I am looking at buying a house and this will be my first, however, my husband owns one. Does this mean I will not qualify for the tax credit? Do we need have our divorce final by the time of signing for it to count? What if we’ve filed, but it’s not final yet?

A. No. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. You cannot take the credit even if you filed on a separate return.

Q. I own my residence as 50/50 tenants-in-common with one daughter who does not live with me. My second daughter, who has never owned a house, is just graduating from school, starting a job locally, coming to live in the house, and wants to buy out her sister’s 50% share. Will daughter #2 qualify for the $8,000 homebuyer credit if she buys her sister’s half of the house from her before Dec 1, 2009?

A. No. You cannot take the credit if you buy your home from a close relative.

Q. My ex-husband and I separated June, 2005. We were divorced Feb. 2007. I have never owned a home my name was not on the deed or mortgage. November 2008 he transferred the deed over to me and I refinanced the home January 2009. Now the home is in my name. Do I qualify for the $8,000 first time homeowner’s tax credit?

A. No. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. Your husband had principle ownership in the property within the three year period.

Posted by Eileen Ambrose at 11:56 AM | Permalink | Comments (65)
Categories: Taxes
        

Free bowling all summer? Surely this can't be true.

But kids bowl free -- two games per day -- at bowling alleys across the United States, including AMF Bowling centers in Baltimore, Glen Burnie, Pasadena, Pikesville, Reistestown, Towson and more.

Shoe rental will still cost the same, however. 

Here's how it works: 

Parents or guardians must register their children for the coupons. The free bowling coupons you'll receive in your e-mail can be redeemed only at that bowling alley.

Each center will set their own age restrictions (I saw at least two that said ages 15 and under). Adults can also sign up for a discounted family pass.

Thanks to The Daily Press' Savvy Shopper for the tip.

How are you planning to beat the heat, or, these days, avoid the storms? For more ideas for cheap entertainment this summer, check out this list of free summer movie screenings in Baltimore and elsewhere in Maryland.

(Photo: Ginnerobot/Flickr)

Posted by Liz Kay at 8:57 AM | Permalink | Comments (0)
Categories: Cheap/Frugal
        

I haven't blogged for awhile here at Consuming Interests, but I have an excuse: the dog ate my keyboard.

What? Don't believe that one? Well, I've got one that's even more preposterous: The Baltimore Sun gave me my own blog. <gasp!>

Since June 1, I've been blogging over at BaltTech, about all things technology and Baltimore and Maryland. I'm looking for stories that highlight the innovation that's going on in Maryland's technology sector. I'm even interested in little geeky trends and feature stories, like this Baltimore guy who took a home server and built it into a working humidor. 

Got any ideas, tips or leads? Shoot me an email over at gus.sentementes(at)baltsun(dot)com or Tweet me at www.twitter.com/gussent. Hope you have fun with Liz, Eileen and Michelle here at CI!

Let's keep the conversation going.

Posted by Gus Sentementes at 3:47 PM | Permalink | Comments (0)
Categories: Technology
        

Readers, Watchdog got a tip last week about a possible chemical spill in a creek outside of Bel Air in Harford County that had killed fish.

I called the Maryland Department of the Environment to see if they were investigating any complaints or reports and discovered that inspectors *did* check out a call about Bynum Run in Bel Air on Friday.

Analysis revealed a sweet answer:

The mysterious substance turned out to be several hundred gallons of molasses spilled from a holding tank in the 400 block of Franklin Street, according to MDE spokeswoman Kim Lamphier. But inspectors observed no fish killed as a result of the syrupy contamination.

I'm still trying to nail down the source of the slow-moving stuff, but this is a good opportunity to share a helpful number with you.

To report fish kills, algae blooms or chemical spills (tasty or otherwise), call the Maryland Department of the Environment's Emergency Response hotline at 866-633-4686. Staff will come out to investigate reports and to take action if necessary.

Here's a list of handy Maryland Department of the Environment phone numbers for non-emergency problems. 

Unfortunately, this caller left too few details about the location of the spill/dead fish (and did not leave her name or a way to reach her) so I was unable to confirm whether she was calling about Bynum Run.

But if you can share any details about the syrup spill, please post in the comments or e-mail me. Very curious!

Posted by Liz Kay at 8:57 AM | Permalink | Comments (0)
Categories: Watchdog
        

Welcome to WatchOut!, a new feature of Consuming Interests. This is where we invite you to post any scams, shady business practices or deceptive advertising that you have come across and want to let others know about.

I’ll start.

A week or so ago, an FTC official told me about the thousands of complaints the regulators received about robocalls that appear to come from a consumer’s car manufacturer or dealer. The calls warn consumers that their warranty was about to expire, and they need to act immediately to extend their coverage. In reality, the calls were companies trying to sell pricey service contracts for $2,000 to $3,000.

The FTC sued some of these companies last month, including one that sent out postcards.

I told the FTC official I hadn’t received any such calls or mailing. He said I must be the only person in the country who hadn’t.

Yesterday, I joined the country.

I received an official-looking letter in the mail with a REQUEST FOR IMMEDIATE ACTION. The outside of the letter even held this warning: “$2,000 Fine, 5 years imprisonment, or both for any person interfering or obstructing with the delivery of this letter.”

And when I opened the letter, I was told my “factory warranty may have expired or is about to expire,” and that I had until June 15 to extend the coverage. I was approved for 0 percent financing.

When I called, I was told the letter was a pitch for a service contract. When I mentioned the FTC’s recent complaint, the call center said they would have the manager call me back.

To his credit, he did. He said he follows the law and doesn’t have any complaints from Maryland.

That may be true, and his letter may not be as egregious as some of the problems that the FTC sued over. But I don’t consider it an above board solicitation. WatchOut!

Photo courtesy of juhansonin.

Posted by Eileen Ambrose at 3:15 PM | Permalink | Comments (1)
Categories: WatchOut!
        

Inc. Magazine has compiled a list of seven businesses to watch out for, all of which have generated numerous complaints from consumers to the Better Business Bureau.

The list includes installment financing companies such as Maryland-based BlueHippo, which has drawn plenty of ire from Consuming Interests readers in the past.

They also included a business you might recognize from its advertisements on late-night television: 

Girls with Low Self-Esteem videos. Oh, wait, I meant Girls Gone Wild.

Apparently the Federal Trade Commission settled with Girls Gone Wild producers Mantra Films in 2004, but consumers still filed complaints afterward, ConsumerAffairs.com reports.

Consumers discovered after ordering one of these videos, they were enrolled in "continuity programs" that were nearly impossible to cancel.

Posted by Liz Kay at 11:45 AM | Permalink | Comments (0)
Categories: Naughty businesses/NBotW
        

Kids, if those piggy banks feel a little lighter these days, thank Mom and Dad.

Parents are dipping into their children’s savings accounts to pay household expenses, according to a recent survey by ING Direct.

The survey of 2,123 adults found that nearly 20 percent of parents who had set aside money for their children have tapped those accounts to pay bills or other debt. About one in three cut back on their contributions to children’s savings.

So fess up. Have you been using money intended for children to keep the household going in this recession?

And, if the family budget is stretched, is it really so bad to use this money?

(Photo: woordenaar/Flickr)

Posted by Eileen Ambrose at 8:53 AM | Permalink | Comments (2)
Categories: Personal finance
        

If you're looking for a new job, Office Depot wants to help you afford the interview process.

Get 25 free copies and free faxing at Office Depot stores through the end of 2009. 

The faxes must go to domestic numbers only. Get up to 25 pages sent to five domestic numbers.

We told you last month that Staples and Office Depot both offered free copies, with Staples' offer continuing through Saturday. 

Posted by Liz Kay at 11:38 AM | Permalink | Comments (0)
Categories: Cheap/Frugal
        

There's more to picking a target-date fund than knowing when you'd like to retire, advises Eileen Ambrose in her Sunday personal finance column.

Target-date retirement funds are meant to help people too busy to select their own investments. In a nutshell, most guidelines suggest putting your retirement money into more volatile options like stocks early on and then gradually moving into more conservative alternatives such as bonds as you get older.

With target-date funds, the fund managers make that shift automatically, so investors have fewer decisions to make.

However, Eileen points out that you still have to monitor where that money is going. Look at the prospectus to ensure the fund's investment strategy matches your own risk tolerance, whether you're pretty conservative or if you enjoy the thrill of the market's ups and downs.

Also, don't overlook the fees charged by these funds. Remember: there's a price for convenience, which is valuable. By investing in a target-date fund, you're paying for a fund manager's expertise.

... a peeing problem, to be more specific.

Hamilton resident Bruce Paris pointed out that although hundreds of people run, walk and bike at Lake Montebello, there are no public restroom facilities there. He wanted to know why they were not included in the repairs to the path that were completed two years ago.

Watchdog called Baltimore's Department of Public Works and learned that there are no plans for public restrooms or even porta-potties because the facility is a water treatment area. Porta-potties are magnets for vandalism and the water at Lake Montebello will someday be used for drinking, said DPW spokesman Kurt Kocher.

To help those Lake Montebello patrons who thought their only option was a tree, DPW did promise to post signs directing people to the nearest restrooms, which are in Herring Run Park.

To get there, leave Lake Montebello at Lake Montebello Terrace, walk south on Harford Road and get on the Herring Run trail at the entrance to the playing fields, off Chesterfield Road. Walk north on the trail, under the Harford Road bridge, and a comfort station should be on your right.

Those restrooms have limited hours, but three porta-potties are available at all times of the day.

(photo: Doug Kapustin/Baltimore Sun)

Posted by Liz Kay at 9:11 AM | Permalink | Comments (0)
Categories: Investments, Personal finance, Retirement, Watchdog
        

Don't miss the updated caveat below the jump!

Negotiating a discount might be a little easier these days.

The Chrysler and GM dealers that are closing have until June 9 to move their stock before they lose their franchise. That means lots of great Chrysler and GM discounts abound, as CNN points out in a story sent my way by reader Chris (Harbor East).

Negotiating's worth your time for any service you subscribe to --- television, telephone, magazines and more.

Garden Variety blogger and columnist Susan Reimer just shared at least three examples of friends who called to cancel their subscriptions to a movie package on cable, XM radio and more, and ended up saving instead.

The customer service representatives were so eager to keep their business that they offered to extend them service for FREE for weeks or months on end. 

Why is this a good deal for the publications or cable company?

Remember, for cable and cell phones, they lose money due to churn --- constantly offering incentives to attract new customers. If they can keep you on their books, they win.

And you don't have to lie about wanting to cancel to get your way.

Call up armed with an offer for a competing company, or better yet, a discount your current company has extended to new customers.

Or, re-examine how you use the service in question to see whether you're spending too much. Maybe you don't need as many minutes on your cell phone plan, but would prefer to get more free text messages. We've told you about Web sites such as Billshrink.com that can help you figure what plan is best for you.

I'll chime in with my own example: a friend and coworker got an offer for a "professional" discount for a magazine we both subscribed to. I was mad that I was paying more than twice as much as she was for the same service, so I called up and said I wanted the same offer.

They didn't match the deal exactly, but they came close --- 50 percent off, which still satisfied me.

The usual tips apply: be nice, but be firm when you state your case. Give them evidence to support why they should want to do what you want them to do --- you've been a loyal customer for XX years, but would be willing to walk away for the right price. Unless, your current company could do better.

Have you had success negotiating? Share your recommendations in the comments. 

UPDATE: So, it occurs to me that companies willing to extend a service for free might be hoping you'll just forget to cancel once the free period is up. If you really want to cut that expense, set a reminder to review your bill again once the offer is up.

(photo: Kenneth K. Lam/Baltimore Sun)

Posted by Liz Kay at 1:42 PM | Permalink | Comments (0)
Categories: Cable/Satellite/TV/Comcast/FiOS, Cellular/Landline/Voice over Internet, Cheap/Frugal
        

National Doughnut Day is here, and that means free doughnuts at Krispy Kreme and the Fractured Prune today. Buy a beverage at Dunkin Donuts and get a free doughnut, too.

Stuck at work or unwilling to brave the rainy weather? Don't forget to sign up for your coupon for free chocolate from Mars.

Any other purveyors of the hole-y treats offering freebies or discounts today? Please share the details!

(Photo: Jed Kirschbaum/Baltimore Sun)

Posted by Liz Kay at 8:36 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Why does cleaning women's clothes typically cost more than men's?

Earlier this year Manhattan resident Janet Floyd went on a campaign and discovered that drycleaning typically costs the same for men and women, but laundering is more expensive for women, according to a New York Times article.

That's because women's shirts don't fit properly on the industrial presses. Some shops in Floyd's survey of 50 cleaners wouldn't launder women's shirts, just defaulting to dry cleaning. Only nine cleaners charged the same for men's and women's shirts.

University of Rochester economist Steven E. Landsburg asks in his Everyday Economics column for Slate why cleaners don't just charge more for hand-pressing, as opposed to charging a different price for all women's shirts. Some shops already levy a surcharge on delicate fabrics, he said.

(He also has some intriguing ideas about the proper way to open a banana.)

But Floyd's discovery is a good example of how as consumers we need to vote with our feet --- and our cash. 

Upset about the way she was being charged a different price for her cleaning, she took her business elsewhere --- calling around until she found a convenient shop that didn't discriminate against her for being smaller than her husband.

UPDATED: David Norford of the Drycleaning and Laundering Institute, a cleaners trade association, says that many cleaners now charge a single price for items, but that price reflects the amount of work required to finish the garment. If it requires a lot of hand-pressing or special handling due to a delicate fabric, that costs money. But shops can't charge just women a different price for their garments, or a different price for garments typically worn by women.

What do you think? Does your cleaner charge a different price for men's and women's clothing?

(photo: pbo31 via Flickr)

Posted by Liz Kay at 12:54 PM | Permalink | Comments (4)
Categories: Cheap/Frugal
        

The freebies keep on coming.

As we told you Tuesday, get a free doughnut at the Fractured Prune and Krispy Kreme on Friday, June 5, and buy a beverage to get a free doughnut at Dunkin Donuts, too.

Then, on Sat. June 6, head to your nearest participating Friendly's for free ice cream between noon and 5 p.m.

But wait there's more!

Print out a coupon for a free Orange Julius light smoothie.

You won't be able to redeem it until Friday, June 19, but hopefully we'll be able to avoid all the free KFC Grilled Chicken coupon problems if people print them out gradually over the two-week period until then. Thanks to Kate over at Charm City Moms for the tip!

You can also print out a T.G.I.Friday's buy-one-get-one-free entree coupon, via agirlcalledBob. 

And you haven't forgotten about the free chocolate, have you? I got my Mars coupon in the mail yesterday!

Posted by Liz Kay at 9:09 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Darn it! The Maker Faire, a celebration of DIY culture, was a lot of fun this weekend. I ran into Hampden resident Aliza Sollins manning a table about permaculture and talked to her a little about why she was so excited about the event.

Sollins blogs about green living and DIY life at The Baltimore DIY Squad. Check it out for some great tips for conserving and making things.

She's also a member of Baltimore Food Makers ...

... which promotes homegrown and homemade food. The group has held workshops to teach skills such as canning and cheesemaking.

Now, doing things yourself can be less expensive than buying things at a store, but not necessarily. So why even bother to make your own bagels? Well, so much of our lives now revolves around shopping: tourism, holidays ... all of our rituals have been transformed into demands to buy buy buy.

This also requires toss-toss-tossing all that stuff to make room for new stuff. Buy new clothes every season -- and dump the last season's. Buy new electronics for new features or appliances if they break. Buy disposable cleaning wipes, as if a rag couldn't do the job. 

Knowing how to fix a bike or to make cheese can be tangible skills that free you from dependence on others. If you learn how to darn a hole, like I did this weekend, you won't have to toss all your sweaters once they develop holes in the elbows (I must be using my mouse too aggressively, or something).

And that way, when the flood comes, or the dystopian future with the crazed killer robots, you'll know how to take care of yourself.

Posted by Liz Kay at 12:22 PM | Permalink | Comments (1)
Categories: Cheap/Frugal, Greenies
        

Bing is Microsoft's new search engine, challenging the Google behemoth.

Bing 411 (1-800-246-4411) is another free directory assistance service like some of the ones we told you about last year.

LifeHacker took Bing 411 on a test drive and found it offered two key benefits over 1-800-Goog-411:

1. Fancy turn-by-turn directions from your current location. Yay! Now anyone can take advantage of this, even without a smart phone.

2. Expanded weather forecasts, compared to Google's service.

Posted by Liz Kay at 10:59 AM | Permalink | Comments (1)
Categories: Cellular/Landline/Voice over Internet, Computers, Consumer Web Site of the Week
        

Cheap vacation idea for the outdoorsy set: Visit the Grand Canyon National Park or one of more than 100 other national parks and monuments for free.

The Interior Department says it will waive entrance fees — some as high as $25 — for three weekends this summer. The free weekends are June 20-21 (Father’s Day Weekend) July 18-19 and August 15-16.

National parks and monuments in Maryland that will be waiving fees are: Antietam National Battlefield, Assateague Island National Seashore, Chesapeake and Ohio Canal National Historic Park, Fort McHenry and Historic Shrine National Monument, Fort Washington Park and Harpers Ferry National Historical Park (The Interior Department lists that last one in both Maryland and West Virginia. That’s some big park.)

Some of the vendors at the parks are also offering discounts during those weekends.

Even if those weekends don’t work out for you, there are more than a hundred other national parks and monuments that already don’t charge an entrance fee.

Happy camping!

 (Picture of horse being attacked by bugs was taken by Casey.)

Posted by Eileen Ambrose at 8:01 AM | Permalink | Comments (2)
Categories: Cheap/Frugal
        

We've told you before about disciplined doctors and medical professionals that have been sanctioned. But did you know veterinarians are also subject to similar oversight?

The State Board of Veterinary Medical Examiners, part of the Maryland Department of Agriculture, has revoked the license of Dr. Gary W. Dehne. The small-animal vet made home visits to patients in the Bethesda/Chevy Chase area of Montgomery County.

He is accused of ... 

... not delivering results of a blood test to the cat's owner, not responding to requests for a refund and not responding to the board when it investigated the issue.

The owner filed a complaint in 2007 and he faced formal disciplinary charges in December. Last month, he was deemed to be in violation for failing to conform to standards of care and treatment, not keeping adequate records and other problems.

Pet owners can also file a complaint about a Maryland veterinarian at the state veterinary board's Web site. You can also find lists of Maryland registered veterinarians.

Here's a good tip from the frequently asked questions list on its Web site: you don't have to buy your pet's medications from your vet. According to the board, veterinarians must provide a prescription for drugs if he or she was willing to dispense that drug for your pet.

(photo: Kenneth K. Lam/Baltimore Sun; edited by Liz Kay)

Posted by Liz Kay at 12:13 PM | Permalink | Comments (0)
        

Jim Dupree of the IRS answers readers' questions on the first-time homebuyer credit: 

 Q. Do you have to repay the $8,000 first-time homebuyer credit if it does not remain as your primary residence for 3 years? (Example, primary residence for 2 years and then used as rental property)?

A. If, within 36 months of the date of purchase, the property is no longer used as your principal residence; you are required to repay the credit. Repayment of the full amount of the credit is due at that time the income tax return for the year the home ceased to be your principal residence is due. The full amount of the credit is reflected as additional tax on that year’s tax return. IRS Form 5405, "First Time Homebuyer Credit, "and its instructions will be revised for tax year 2009 to include information about repayment of the credit.

Q. I was separated 3 years ago and signed house over to husband. Can I qualify as a first-time home buyer?

A. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. If your spouse has not owned a main home in the last three years, then you may claim the credit.

Q. My fiance and I have purchased a home. Both of us are on the loan and deed. I owned a home two years ago, but he never has. Would he qualify for the $8,000?

A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If your fiancé, a first-time homebuyer, buys a house and then later that year marries you, not a first-time homebuyer, the credit is allowable to him. Your fiancé may take the maximum credit.

Q. I have never owned a home and am looking to buy in 2009. My husband was separated from his ex-wife in 2002 and left their principal residence at that time. However, their divorce was not final and his name taken off of their house until 2007. Do we quality for the tax credit?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since your husband had ownership interest in a principal residence within the prior three years, neither of you may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. You would not be able to take the credit even if you filed on a separate return.

Q. My dad quit claimed his home to me and my mom in August of 2005. In August of 2006, I quit claimed the home to my mom because I got married. My husband and I just purchased a home in May 2009. My husband is a first-time home buyer but I’m not clear if I am. Would we qualify for the $8,000 credit?

A. No you won’t. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase.

Q. I have owned a house for 15 years. I am about to co-sign for my daughter to buy her first home. I guess she would qualify for the first home buyer’s credit. But when I am filing the 2009 taxes for myself, how do I report the new house to the IRS. Or should my daughter only report it?

A. Since you are not a first-time homebuyer, you cannot claim any portion of the credit, but your daughter may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as her primary residence.

UPDATE: Got more questions about the $8,000 first-time homebuyer credit? E-mail them to Eileen.ambrose@baltsun.com before Tuesday, Sept. 8, 2009 and then tune in at noon on Sept. 8 for her live chat with IRS spokesman Jim Dupree to get the answers.  

Posted by Eileen Ambrose at 11:51 AM | Permalink | Comments (1)
Categories: Taxes
        

Are you invested in a target-date retirement fund in your 401(k)? How has that worked out for you in this bear market?

I’m interested in interviewing workers in these funds for an upcoming article. Send me an email at eileen.ambrose@baltsun.com if you’d like to talk.

Target-date funds are supposed to be a no-brainer way to invest for retirement, although many people — particularly older workers — got burned after their funds plummeted along with the stock market. Some workers hadn’t realized how heavily the funds were invested in stock.

Target date funds are the subject of an upcoming hearing with the U.S. Department of Labor’s Employee Benefits Security Administration and the Securities and Exchange Commission on June 18. You can listen to a Webcast at the EBSA’s Web site.

Posted by Eileen Ambrose at 10:59 AM | Permalink | Comments (0)
Categories: Personal finance
        

Free doughnuts in honor of National Doughnut Day on Friday, June 6!

UPDATED: Get a free Fractured Prune doughnut  (Ocean City Sand variety) on Friday, June 6. The York Road location will have buy one, get one free doughnuts. (Thanks to Matthew for the heads up.)

Get a free Krispy Kreme doughnut at participating locations, and get a free Dunkin Donuts doughnut with purchase of a beverage. Thanks to Sun business reporter Andrea Walker for the tip.

National Doughnut Day has some historical significance ...

... It honors the Salvation Army volunteers who cooked for soldiers in World War II, according to holidayinsights.com. Sometimes they would fry doughnuts in their helmets, the explanation states.

Haven't had enough sweet treats? Then get some free ice cream at Friendly's, where they are giving away a free Friendly's ice cream cone or cup from noon to 5 p.m. Saturday, June 6.

UPDATED again: Don't miss more free treats, including a free Orange Julius smoothie coupon!

(photo: Elizabeth Malby/Baltimore Sun)

Posted by Liz Kay at 9:02 AM | Permalink | Comments (2)
Categories: Cheap/Frugal, Food
        

The Pension Benefit Guaranty Corp. says despite GM’s bankruptcy filing, the automaker’s two pension plans for hourly and salaried workers will remain under GM sponsorship. (That’s good news considering if the PBGC assumed control, workers and retirees might get less than promised by the company.)

The PBGC said the goal of GM and the union iss to keep the two pensions under a new corporate entity that will be created from the sale of some of GM’s assets.

GM workers and retirees should contact GM’s benefit center at 800-489-4646 if they have questions.

Posted by Eileen Ambrose at 2:06 PM | Permalink | Comments (1)
Categories: Personal finance
        

Folks, I'm still out of town, but don't miss Hanah Cho's excellent article in Sunday's paper describing how to buy foreclosed houses in Maryland. You might enjoy lower prices, but you'll certainly work hard for the savings.

However, given the pressure on the market, you might discover that buying houses in the traditional way might just be the more inexpensive route, especially given the length of time that might be required to buy a foreclosure.

Posted by Liz Kay at 9:09 AM | Permalink | Comments (3)
Categories: Cheap/Frugal, Home/Real Estate, How To