baltimoresun.com

November 13, 2009

Getting the best deal for your gold

Selling goldThe price of gold is rising quickly. For those with gold jewelry they no longer wear or those who are sitting on gold coins, it may be tempting to sell the items, particularly with the holidays approaching.

We're writing about how to get the best deal for your gold and want to talk to consumers who have sold theirs. Send an e-mail to eileen.ambrose@baltsun.com if you're interested in being interviewed for the article.

(photo: Brian Vander Brug/Los Angeles Times)

Posted by Eileen Ambrose at 12:30 PM | | Comments (2)
Categories: Personal finance
        

Fed Adds Protection Against High Overdraft Fees

Starting next year, banks will no longer be able to charge consumers overdraft fees on ATM and debit-card transactions, unless the customer agrees in advance to an overdraft protection program, according to a final ruling announced by the Federal Reserve Thursday.

Consumers have long complained of being automatically enrolled in overdraft protection programs and then being hit with high fees for small transactions using an ATM or debit card.

The new rule takes effect in July.

Consumers who choose to opt in for overdraft protection must be given a notice that explains the service and fees. Those who don’t sign up must receive the same account terms and features that banks provide to consumers who do opt in, regulators said.

Some consumer advocates, though, complain that the new rule doesn’t go far enough to protect consumers.

Posted by Eileen Ambrose at 9:42 AM | | Comments (2)
Categories: Personal finance
        

November 5, 2009

Free financial advice on the Your Money Bus: Cheap Trick Thursday

Your Money BusJust a reminder: don't forget to take advantage of the chance to get some free financial advice from the Your Money Bus tour this week!

Eileen Ambrose already told us about the Your Money Bus events scheduled in Baltimore on Thursday, but in case you missed it, here's a recap:

From 10 a.m. to 4:30 p.m. today, bring your financial questions to Baltimore's City Hall to get answers from financial advisers.

But if you're already booked or can't get downtown, there's still a chance to meet with these folks Friday ... 

Continue reading "Free financial advice on the Your Money Bus: Cheap Trick Thursday" »

Posted by Liz Kay at 9:24 AM | | Comments (0)
Categories: Cheap/Frugal, Personal finance
        

November 3, 2009

Join Discussion about Credit Cards Today

Today at noon we'll have a live chat with Curtis Arnold, founder of CardRatings.com.

He can answer your questions about trends in the industry, why card issuers are playing tough, and what card opportunities there are out there for you.

Chat starts at noon here. Submit questions or comments then, or post them in advance here. See ya then.

Posted by Eileen Ambrose at 10:09 AM | | Comments (1)
Categories: Personal finance
        

November 2, 2009

Free Financial Advice Thursday

Your Money Bus tour will arrive in Baltimore Thursday.

The bus - sponsored by Kiplingers, a trade group for fee-only financial adviser and others investment companies - is on its second year of traveling coast-to-coast to dispense free financial advice.

The tour arrives this week in Baltimore and will give advice to consumers at 100 N. Holiday St., from 10 a.m. to 4:30 p.m.

TD Ameritrade is part of the tour and will offer a calculator for those who want to decide whether or not to convert a 401(k) or traditional IRA into a Roth IRA next year when the rules on conversion change.

Posted by Eileen Ambrose at 1:54 PM | | Comments (0)
Categories: Personal finance
        

October 30, 2009

What's up with Credit Cards?

Join us the first Tuesday of November — Nov. 3 — for a live chat with Curtis Arnold, founder of CardRatings.com.

He can answer questions on your cardholder rights and trends in the credit card industry. Like, what’s up with Citibank canceling gas cards without warning or Bank of America charging "unprofitable" customers annual fees or card issuers jacking up interest rates?

The discussion starts at noon on the blog. You can also submit questions or comments in advance by posting on the blog or sending an e-mail to me at eileen.ambrose@baltsun.com.
Posted by Eileen Ambrose at 3:25 PM | | Comments (0)
Categories: Personal finance
        

October 29, 2009

Credit card woes? Let's talk

Join us Tuesday - November 3 - for a live chat with credit card expert Curtis Arnold, founder of CardRatings.com.

Arnold will take questions about your credit card rights, credit scores, best cards out there or anything else you want to discuss.

The chat begins here at noon. You can submit comments or questions in advance by either posting them on the blog or sending an email to me at eileen.ambrose@baltsun.com.

See ya Tuesday. 

Posted by Eileen Ambrose at 11:33 AM | | Comments (0)
Categories: Personal finance
        

October 8, 2009

Free financial education: Cheap Trick Thursday

Eileen's live chat this week covered free online games that teach financial literacy to people of all ages.

If you're looking for a more traditional means to learn the foundations of personal finance, however, you won't have to shell out a lot of money to do it. 

Maryland Cooperative ExtensionAs recommended in a recent Marketplace Money show, your local cooperative extension can be a great resource for financial basics.

The Maryland Cooperative Extension, for example, offers free financial education materials available on its Web site, including "Managing Money in Tough Times" and "Prescription for Financial Wellness" --- a course meant to be tackled in four 2-hour sessions.

One helpful article for city workers who *won't* be working during Friday: Facing a Furlough? Develop a Plan

There's also ...

Continue reading "Free financial education: Cheap Trick Thursday" »

Posted by Liz Kay at 9:15 AM | | Comments (0)
Categories: Cheap/Frugal, Personal finance
        

October 6, 2009

Live Chat: Eileen Ambrose and online finance games

Posted by Eileen Ambrose at 11:39 AM | | Comments (0)
Categories: Personal finance
        

Finance made fun through online games

Join us today at noon for a live chat with Nick Maynard, one of the creators of the online personal finance game, Celebrity Calamity.

The goal of this game, as well as others, is to teach personal finance in a fun way.

Try one or more of the games: Celebrity Calamity, The Great Piggy Bank Adventure, Moneytopia and Stagecoach Island.

Then join our chat to discuss what you think of the games or to ask Maynard any questions.

 

Posted by Eileen Ambrose at 10:07 AM | | Comments (0)
Categories: Personal finance
        

October 3, 2009

Play these online games...let us know what you think

My Sunday story will be about how some groups are trying to reach children and young adults with financial education through online games.

Test these games out: Celebrity Calamity, The Great Piggy Bank Adventure, Moneytopia and Stagecoach Island.

Then let us know what you think. Is this a good way to teach finances? Did you learn anything? Are the games fun or not?

Also, join us Tuesday for a live chat with Nick Maynard, director of innovation with Doorways to Dreams, the creator of Celebrity Calamity. The chat starts online here at noon, Oct. 6th.

Posted by Eileen Ambrose at 9:20 AM | | Comments (0)
Categories: Personal finance
        

September 29, 2009

Live Chat: Eileen Ambrose and financial planner Jim Ludwick answer your questions

Posted by Eileen Ambrose at 11:16 AM | | Comments (0)
Categories: Personal finance
        

September 28, 2009

Getting your 401(k) back on track and other money issues

What to rebuild your retirement account or college fund, but not sure how?

Ask the expert Tuesday at noon during our live online chat with financial planner Jim Ludwick. Ludwick will take readers' questions on all sorts of financial topics for a half hour.

You can submit questions during the chat, or submit them early to eileen.ambrose@baltsun.com and Ludwick will answer them during the chat.

Posted by Eileen Ambrose at 9:06 AM | | Comments (0)
Categories: Personal finance
        

Readers complain of overdraft fees

My column Sunday about overdraft fees generated some “I’ve-been-there” comments as well as some advice from readers:

Rick writes:

“We too have been ripped off by MT&T bank. About five years ago we were charged $125.00 for less than $10.00 in charges. We refused to pay the fee’s thus resulting in being banned from their bank under my name and reported to the credit people and just last Friday my wife was charged an overdraft fee of $35.00 for being short a grand total of $0.38 cents.

“When my wife called about the fee, she was told that even though her pay was being deposited on Thursday night, her on star account had withdrawn $20.00 before her check had been processed, thus creating the overdraft fee. They did offer to take $8.00 off and to call back Monday to see if the fee can be waived. These practices are unacceptable and should be against the law.”

Connie writes:

“Amen to your column Sunday. That happened to me once a couple years ago, and I was sick as I listened on the phone to all the penalties being rattled off by the automatic bank teller. What’s more, the bank chose not to process a deposit that would have kept the overdraft from happening. I think I recall calling to complain and being told that was the way they did things.”

Joseph offered this tip:

“I bank with Bank of America and for years had overdraft protection through a personal line of credit which executed a loan into my checking account in the event of an overdraft. Then I learned that my savings account could be used to avoid overdraft fees and the interest on the automatic loans. Now if my account balance is low, money is automatically transferred from savings to checking and no overdraft occurs. No fees...no interest!”

Posted by Eileen Ambrose at 8:04 AM | | Comments (2)
Categories: Personal finance
        

September 25, 2009

Got a financial question? Ask the pro

What can you do to jumpstart your 401(k)? Do you have enough insurance? Is a Roth or traditional IRA best for you?

Ask these or any financial question you want and our Tuesday live chat guest financial planner Jim Ludwick will try to answer them. The chat starts here at noon. Submit your questions early to eileen.ambrose@baltsun.com

Posted by Eileen Ambrose at 9:17 AM | | Comments (0)
Categories: Personal finance
        

September 24, 2009

Financial planner answers your money questions

Got questions about how to manage your money, where to invest or how to recoup those college funds lost in last year’s market? Bring them on.

On Tuesday — Sept. 29 — our live chat guest will be financial planner Jim Ludwick, of MainStreet Financial Planning in Odenton. He can answer these and many other questions.

You can join the chat on the blog at noon Tuesday, or submit your questions in advance to eileen.ambrose@baltsun.com and we’ll get Jim working on them right away.

Posted by Eileen Ambrose at 10:07 AM | | Comments (2)
Categories: Personal finance
        

September 21, 2009

Live Chat: Eileen Ambrose discusses health care and reform with Hopkins professor

Posted by Eileen Ambrose at 10:31 AM | | Comments (1)
Categories: Personal finance
        

Join Health Care and Reform Discussion at Noon

Join us today at noon for a discussion on health care and reforms with Lisa Dubay, an assistant professor at the Johns Hopkins Bloomberg School of Public Health.

You can submit questions in advance to me at eileen.ambrose@baltsun.com.

See ya at noon.

Posted by Eileen Ambrose at 10:24 AM | | Comments (0)
Categories: Personal finance
        

September 15, 2009

Live Chat with Eileen Ambrose and T. Rowe Price financial planner

Posted by Eileen Ambrose at 11:28 AM | | Comments (0)
Categories: Personal finance
        

September 14, 2009

Where to invest your money now

Lehman Brothers collapsed a year ago tomorrow, sending the stock market on a free-fall that lasted months and wiped out retirement and college accounts. Is the worse over? Where can you find investments that are relatively safe but give you some return? Or, what investment moves should you make going forward?

Get the answers to these and any other questions you have during Tuesday’s – Sept 15 — live chat with T. Rowe Price financial planner Stuart Ritter. The chat starts at noon.

You can also submit questions in advance for Stuart by sending them to me at eileen.ambrose@baltsun.com

Posted by Eileen Ambrose at 11:28 AM | | Comments (2)
Categories: Personal finance
        

September 13, 2009

Bring On Your Financial Questions

Tuesday's live chat guest is Stuart Ritter, a financial planner with T. Rowe Price Associates in Baltimore. Ritter will be able to answer your questions about saving for college, retirement or any other topics you want to discuss.

The chat starts here at noon on Sept. 15. You can submit you questions to Stuart then, or send them along in advance to me at eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 4:01 PM | | Comments (2)
Categories: Personal finance
        

September 10, 2009

T. Rowe Price's Stuart Ritter answers your investment questions

A year ago, we saw the government’s take over of Fannie Mae and Freddie Mac, the bailout of insurance giant AIG, the collapse of Lehman Brothers and the oldest money market fund “breaking the buck.” On the heels of all that, the stock market plunged and billions in retirement assets disappeared.

The market has improved, although the economy is still struggling and the unemployment rate is expected to continue to rise. As investors, though, what lessons can we take away from all this?

That’s the subject of Tuesday’s live chat with guest Stuart Ritter, a financial planner with T. Rowe Price Associates. Ritter will tackle questions on investment moves to take going forward, as well as any other money related queries you have.

Join us at noon Tuesday, Sept. 15, or submit your questions in advance to eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 10:51 AM | | Comments (0)
Categories: Personal finance
        

September 9, 2009

Home Loan Modification Update

More troubled homeowners are getting the chance to modify their mortgages under a new federal program, while some loan servicers are seeing more borrowers fall behind on payments, according to Treasury Department figures released Wednesday.

The Home Affordable Modification Program allows qualified borrowers to change the terms of their loans so they can afford payments and stay in their home Through the end of August, 360,165 borrowers had started trial modifications, where they must make on-time payments for a few months before granted a permanent modification. That’s 124,878 more than at the end of July.

Bank of America, which acquired troubled mortgage giant Countrywide last year, is the largest servicer in the program. It had 835,680 borrowers at least 60 days behind on their payments at the end of August, or 39,213 more than a month earlier.

Posted by Eileen Ambrose at 6:00 PM | | Comments (2)
Categories: Personal finance
        

Financial seminar for Montgomery County residents

Our Montgomery County readers may want to check out the free personal finance event “Master Your Money...Before Someone Else Does.”

The event, sponsored by the Montgomery County Coalition for Financial Literacy runs from noon to 3 p.m. on Sunday, Sept. 20, at the Downtown Silver Spring Plaza at Georgia Ave. and Ellsworth Ave.

More than 20 exhibitors will be on hand to pass out information on a variety of financial topics, such as credit reports, investments, spending plans and credit counseling.

Posted by Eileen Ambrose at 1:29 PM | | Comments (0)
Categories: Personal finance
        

September 8, 2009

Live Chat: Eileen Ambrose on First-Time Homebuyer Credit

Posted by Eileen Ambrose at 11:40 AM | | Comments (2)
Categories: Personal finance
        

September 1, 2009

Live Chat: Eileen Ambrose on Federal Mortgage Help

The guests for this chat are three officials from the St. Ambrose Housing Aid Center, the oldest housing nonprofit in Baltimore. Lisa R. Evans, the deputy director, will answer your questions with the help of counselors Bryan Sheldon and Cara Stretch.

Lisa has been a housing professional for more than 30 years in the public and private sectors. She now oversees a staff of 40 at St. Ambrose, which provides housing counseling, property management, legal services, foreclosure prevention counseling and other services.

Bryan is a Foreclosure Prevention Housing Counselor.

Cara is a Foreclosure Prevention Housing Counselor.

Posted by Eileen Ambrose at 11:34 AM | | Comments (0)
Categories: Personal finance
        

August 27, 2009

If you were Michael Vick's financial adviser

According to InvestmentNews, a judge in Virginia ordered Michael Vick to hire a financial planner to manage his earnings as a requirement to exit bankruptcy.

The football quarterback, who recently served time for his role in dog fighting ring, signed a one-year contract with the Eagles worth $1.6 million. He owed creditors $20 million.

InvestmentNews says, “A payment plan outlined before Vick's signing with the Eagles would give creditors 10 percent of the first $750,000 a year Vick earns. He would be allowed to keep one house in Virginia, a luxury SUV and other possessions under the plan.”

As a football fan, Linthicum financial planner John Bacci says he would like the job. Athletes don’t make the best clients, though.

“I have had a couple of athlete clients. It’s almost impossible to convince them that they are mortal let alone that their careers will last a very short period of time,” Bacci says.

His financial advice to Vick would be to set up a traditional pension, funding it with $150,000 a year for several years. That’s assuming his contract is renewed.

If that money is salted away and invested, Vick could end up modestly rich and his future taken care of, Bacci says.

What’s your financial advice to Vick?

Posted by Eileen Ambrose at 4:54 PM | | Comments (2)
Categories: Personal finance
        

August 26, 2009

Modifying a Home Mortgage

Are you looking to modify your home mortgage so you can afford to keep up the payments or have you already had your loan modified?

I'm writing an article about the government's Home Affordable Modification Program and want to talk to borrowers who have participated in it or trying to use it.

If you want to talk, write me at eileen.ambrose@baltsun.com

Posted by Eileen Ambrose at 8:03 AM | | Comments (2)
Categories: Personal finance
        

August 18, 2009

Eileen Ambrose: Live Chat with SBA's Stephen Umberger

Posted by Eileen Ambrose at 11:29 AM | | Comments (1)
Categories: Personal finance
        

August 17, 2009

Need a small business loan? Here's the guy to ask

Stop by our live chat at noon on Tuesday with Stephen D. Umberger, director of the U.S. Small Business Administration's Baltimore district office.

Umberger will answer questions about the interest-free loans under the new America's Recovery Capital program as well as other resources for small businesses.

You can also submit questions early to eileen.ambrose@baltsun.com.

See ya Tuesday.

Posted by Eileen Ambrose at 12:29 PM | | Comments (1)
Categories: Personal finance
        

August 14, 2009

Need an interest-free small business loan? Talk to the expert

Tuesday’s guest for our live online chat is Stephen D. Umberger, district director of the Baltimore District Office for the U.S. Small Business Administration.

Umberger will discuss interest-free loans available under the America’s Recovery Capital program or any other issues you wish to discuss about small business. The chat starts at noon, or you can submit questions early to eileen.ambrose@baltsun.com

Posted by Eileen Ambrose at 12:21 PM | | Comments (2)
Categories: Personal finance
        

Dave Ramsey's "Financial Peace" course

Lots of people swear by Dave Ramsey, author of The Total Money Makeover, and his approach to solving debt problems by paying it off and avoiding it at all costs.

Check out recent interviews with Ramsey at Marketplace.org, where he discusses some of his unorthodox recommendations, including paying off one's smallest debts first (called "snowballing") and

You could learn more about the system by enrolling in the Financial Peace University course offered at Oakwood Wesleyan Church in Glen Burnie.

The 13-week course starts at 6 p.m. Sunday, September 13 and continues on Sunday nights. Participants will learn about budgeting, saving and communicating about money from DVD seminars as well as small group interaction.

The course materials cost $100, and a free preview of the course will be offered on Sunday, August 30.

Looking for a less expensive way to find out more about some of his ideas? Both the Enoch Pratt Free Library and the Anne Arundel County Library have copies of his books.

What do you think about Dave Ramsey's approach? Let us know if you swear by his debt-avoidance methods or if you think there are better approaches to getting control of your finances.

Posted by Liz Kay at 9:01 AM | | Comments (1)
Categories: Personal finance
        

August 12, 2009

Forgiving student loans to boost the economy

Would forgiving student loan be good for the economy?

Some groups think so. A campaign is underway to get student loans forgiven so grads can afford to spend their money on other things. Proponents say this would immediately stimulate the economy.

But would it?

Mark Kantrowitz, publisher of FinAid.org, crunched some numbers. Kantrowitz says there is $730 billion in outstanding student loans — $598 billion in federal loans; $132 billion in private loans. But to have an immediate impact on the economy, Kantrowitz notes, you have to consider only loans that are in repayment because that’s money now going to loans and not other consumer spending.

But a little less than 4 percent of outstanding debt — or $28.8 billion a year —is now being repaid, Kantrowitz says.

“So assuming that the borrowers would spend this windfall instead of saving it or using it to pay down other debt, this proposal would involve the government spending $730 billion now in order to increase consumer spending by $28 billion,” Kantrowitz writes. “Since less than 4% of the cost of this proposal would be spent by consumers in the first year, it will clearly not have the “immediate stimulating effect” claimed by the proposal’s proponents.”

Kantrowitz adds: “Forgiving all debt provides a financial windfall to borrowers who are capable of making their monthly loan payments, such as wealthy doctors and lawyers, and not just to borrowers who are experiencing financial difficulty. There are more effective and better-targeted ways of spending taxpayer money.”

He suggests, for instance, increasing Pell grants to needy students or repealing the law that prevents private student loans being discharged in bankruptcy.

 What do you think? OK, Charles sent me an email that votes for "yes" aren't registering. Could it be our polling software has some strong feelings on loan forgiveness? Anyway, I'm going to try to post the poll again and see if we have better luck. And thanks, Charles, for giving us the heads up.

Posted by Eileen Ambrose at 9:04 AM | | Comments (47)
Categories: Personal finance
        

August 11, 2009

Live Chat with Eileen Ambrose and Financial Planner Christopher Brown

Posted by Eileen Ambrose at 11:22 AM | | Comments (0)
Categories: Personal finance
        

August 10, 2009

Financial questions? Get answers here

Join us Tuesday at noon for a live chat with Rockville financial planner Christopher Brown.

We can discuss advance directives or any other financial question you have. Chat runs for a half hour.

And if you can't make it, we can take your questions ahead of time at eileen.ambrose@baltsun.com and answer them during the chat. A transcript will be posted for viewing later.

Posted by Eileen Ambrose at 5:17 PM | | Comments (0)
Categories: Personal finance
        

August 9, 2009

Get answers to your finance questions

Tuesday's Live Chat features guest financial planner Christopher Brown, who will answer any questions you have money management.

Stop by for the chat on the blog at noon, or submit your questions for Brown early at eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 9:12 AM | | Comments (0)
Categories: Personal finance
        

August 7, 2009

Get Your Financial Questions Answered by Money Expert

The topic of Tuesday's Consuming Interests Live Chat will be living wills - the document you need if you want to tell your doctors and loved ones what sort of treatment you want in case you are ever incapacitated. Remember Terri Schiavo?

But if you have other financial questions on your mind, financial planner Christopher Brown will be a guest on the live chat to answer them for you.

You can pose your questions on the noon chat or submit them early and we'll post the answers during the half-hour program. Submit questions ahead of time to eileen.ambrose@baltsun.com

Posted by Eileen Ambrose at 10:52 AM | | Comments (1)
Categories: Personal finance
        

August 4, 2009

Live Chat on Personal Finance

Today we held a Live Chat with financial planner Barry Glassman. Unfortunately, a few technical difficulties caused some answers and questions to get mixed up.

Here's a transcript of questions and their answers - in the right order.

We plan another Live Chat on Tuesday, featuring an expert on living wills and a financial planner who can address a broad range of topics. You can send in your questions early to eileen.ambrose@baltsun.com or pose your questions live.

Today's live chat:

[Comment from Linda] I am retired on disability at 55 however I have a deferred compensation plan which I left - would it be best when I get close to 59 to transfer it to an IRA so I wouldn't be taxed.

Barry Glassman: Linda, I suggest that you talk to your benefits department to confirm that it is possible to roll your deferred compensation plan into your IRA. If you have a federal deferred compensation plan (section 457 plan) then you are able to roll the proceeds to an IRA. However, it seems that you should have more options than to take it all as income or roll it to an IRA. Depending on your cash flow situation, I would suggest exploring the option receiving deferred compensation in a series of payments. -----

[Comment From Gary ] I am a 44-year old State of Maryland employee. The State 401(k) offers sixteen "Funding Options" in seven categories -- fixed income, bonds, balanced, large cap, mid cap, small cap, and international. I would like to know which would be the best choice for me, but the information provided in the packet is not very helpful. I would appreciate any suggestions on where to go for information and advice to enable me to make the right choice. Thanks. Barry

Glassman: Gary, Unfortunately, the materials offered by 401k plan sponsors are often insufficient. I suggest doing some research on either each fund company’s website or at Morningstar.com. You may be surprised at the sheer amount of details available.

[Comment From C] My company only contributes 2% (no match, just get 2% no matter what) to my 401k. Is it better to contribute on top of that 2% to my 401k, OR put money in my Roth IRA? If I contribute to my 401k, I don't have much left to add to my Roth, and vice versa, if I max out my Roth, don' t have much more I can put in the 401k. Thanks Barry!

Barry Glassman: C, I agree with the thought of making a 401k contribution up to the matching limit. After that, it becomes unique to your own situation. I have a bias toward Roth 401k for younger people, but keep in mind that you will need the funds to pay the tax on the contributions come tax time.

[Comment From SporkSpork] Hypothetical situation: a family member writes you a very large check ... or several checks that total more than $13,000. Do you owe taxes on the gift? Does it matter what you use it for --- to buy a car, down payment on a house? And how would any govt. agency --- the IRS, the DEA, the CIA, I don't know --- even find out you got this money, in the first place? Does my bank report deposits of a certain size to the feds? I swear I'm not laundering money, but I've never seen this many zeros in my bank account before.

Barry Glassman: SporkSpork, If a family member gave you a gift of more than $13,000 there are a few options and many caveats. First, the onus of gift tax would be placed on the person giving the gift. If the dollar amount is larger than $13,000, the gift may be split with a spouse as well. So if your married aunt and uncle gave you $20,000 (you lucky…), they may be able to avoid gift tax. I suggest that you or your family members speak with a CPA, as there are other special situations, such as gifts to and from non-citizens.

[Comment From Carl] I am very fortunate in this economy to be getting a substantial raise at the end of August. My income is going from $48,000 a year to $70,000. That is the good news. The bad news is that I have $4,164 in credit card debt at 0% interest for another 1.5 years. I also have an automobile loan for $12,054 at 8%. The auto is worth $8,500. I also have $35,758 in student loans that are in in-school deferment while I study to get my Masters degree. My Masters program is being covered by my employer, so all the loan money was taken out for my bachelor's. Currently, I am renting an apartment with a roommate and my share is $600.00 a month plus half the utilities. I have about $5,200 in my 401K, and about $1,500 in the bank.

[Comment From Carl] I would like to buy a condo in a year, but I feel like my debt should be my first priority. My question is now that I will have a bigger income, how would you approach my finances?

Barry Glassman: In reference to Carl's question: The fact that your employer is not only giving you a 45% raise, but is also covering your Master’s degree costs, is not good news, it’s great news! Balance in paying down past debt, saving into a 401(k), and saving for a home is something that many people juggle. Over the next year, I suggest that you focus on two actions - reducing your debt and building a cash reserve. You should target the debt with the highest interest rate first. Your cash reserve can also be used for a down payment, however, I encourage you to build this cushion before seriously considering purchasing a home.

[Comment From Barry ] I'm 63, retired and collecting a small pension and social security. My wife is 54 and just took a buyout to retire early. As of 6/12/09, she is no longer accruing pension credits and neither she nor her former employer are contributing to the 401k. My question is can we both contribute the maximum $6,000 this year to tax deductable IRA's?

Barry Glassman: Barry, Your contribution depends on your total gross income for 2009. I have spent five minutes debating this with my staff in the office. Visit http://www.irs.gov/pub/irs-pdf/p590.pdf, page 15 & 16, to see the income phaseout limits for IRA contributions.

[Comment From C ] Wait, I'm confused; Since I put money into a Roth has already been taxed, why would I have to pay tax on them again? Barry Glassman: C: You would not have to pay tax again, but if you put $ in a Roth, this money is being taxed in the year of the contribution. You will need to pay this to Uncle Sam in the year in which it was contributed.

[Comment From Laura] Our daughter is going to attend a private university and one of the payment options is tuition stabilization. The offer is to incoming freshman only and guarantees no additional increases in tuition. Also if for any reason at all your child does not continue at the university you are fully refunded. Sounds like a win win. What do you think?

Barry Glassman: Laura, It does sound like a win-win, which is why it concerns me. Usually this type of plan is a lump sum payment due upon your student’s entry into the university. The lump sum is calculated by adding the 8 semesters of tuition together and possibly putting adding a premium (defined as the additional cost per semester to not have future increases). My first piece of advice is to read the refund policy very carefully. If your daughter finishes one semester early, are you refunded the same amount, or lesser amount, than you would have in semester one? You must also ask yourself a few questions – is the premium (or piece of mind knowing tuition costs won’t rise) worth the lost earning potential on the money that you would use for years 2, 3 and 4? If you believe that tuition will increase at a faster pace than you might earn on your money market or CDs, then it may be prudent. You also want to be sure you won’t need access to these dollars in case of an emergency.

[Comment From Nancy] What's your advice for people who are considering an investment in the stock market for the first time? How can they avoid the mistakes that have hurt so many during this recession?

Barry Glassman: Nancy, Educate yourself. Don’t laugh, but I really like the book, Personal Finance for Dummies. You can tear off the cover and put on War and Peace so you can read it on the Metro.

[Comment from George] In my 401(k), I am investing new money at a 60-40 equity-bond mix. Because of the stock market down turn, the overall percentages at one point was 50-50 but now is 55-45 given gains over the past 3-4 months. Should I rebalance or just let the annual new money contributions bring the account back in line over time? If I should rebalance, how often should I do so keeping in mind that there are administrative costs in doing so?

Barry Glassman: George, First, I believe in quarterly rebalancing. It institutes a buy-low/sell-high strategy and brings risk back to its intended level. As an example, in the late 90s, if you would have let your stock allocation rise, you would have been overallocated at the peak in 2000 and underallocated at the bottom in 2003. Same is true for the recent ups and downs of the markets. However, you should always be sure the allocation is appropriate for your current circumstances.

[Comment From George] I read Carl's question and Mr. Glassman's response about the importance of paying down higher interest rate debt while building a cash reserve when saving for a home. However, I have a substantial amount ($200k) of student loan debt at a decent interest rate (3%). From a bank's perspective, would this amount of debt be held against a borrower, even if they had a 20% downpayment saved in cash?

Barry Glassman: George, The bank will certainly consider this debt when underwriting your loan, but the huge down payment, a high credit score, and consistent employment income may help alleviate the bank’s concern.

Posted by Eileen Ambrose at 1:35 PM | | Comments (1)
Categories: Personal finance
        

Eileen Ambrose: Live Chat with Financial Planner


Posted by Eileen Ambrose at 11:25 AM | | Comments (0)
Categories: Personal finance
        

August 3, 2009

Cash for Clunkers: Love It or Hate It?

Former Federal Reserve Chairman Alan Greenspan seems to like it; Sen. John McCain promises to do what he can to stop it.

What has put the two on opposite sides: the Cash for Clunkers program.

In case you’ve been spelunking for a month, this is the program where the government will give you $3,500 or $4,500 toward the purchase of a new fuel efficient vehicle if you scrap your old polluter.

The program had so many takers in the first week it kicked off, that money ran out and the House approved $2 billion in additional cash for the program.

Now, it’s up to the Senate. Former Republican presidential nominee McCain says he’ll filibuster to prevent the Senate from approving extra funds. But Greenspan yesterday says the program’s popularity is a positive sign of economic recovery. What do you think? Take the poll.

Meanwhile, here’s what reader Gary Dziwulski said after seeing our story on Saturday about the House coming to the rescue of the program. Dziwulski wrote in an email:

"I would like to respond to your article titled "House Votes More Money for "Clunkers" dated August 1st 2009 and would like to point out some editorial bias and wrong information about the money that was approved for the "Cash for Clunkers" program.

“First, the article starts off by misleading and misinforming readers of what "funding" was approved. Why do all Liberals say "Government Funding" when they should be saying "Your TAX DOLLARS are being used and given away" so the auto industry, auto dealers, and the UAW can get another BAILOUT courtesy of the TAXPAYER.

“Second, the notion of TAXPAYER MONEY being thrown around and spent like a drunken sailor should be addressed instead of promoting the virtues of Government HANDOUTS, BAILOUTS, and SELLOUTS. The American TAXPAYERS are in no mood to hear about how much more BILLIONS and BILLIONS are given away just so GM, FORD, CHRYSLER are "ENRICHED" with MY TAXDOLLARS.

“In the future, you need to be more informed about who’s money it is and not get so caught up in the Liberal bias of the Sunpaper’s usual rhetoric so in can pander to the Uneducated masses that read it.”

Posted by Eileen Ambrose at 9:29 AM | | Comments (5)
Categories: Personal finance
        

Get Answers to Your Money Questions

Tomorrow at noon we'll have another live chat here at Consuming Interests. This week's guest is financial planner Barry Glassman, who is prepared to answer any financial question you throw at him.

You can attend the chat by visiting this blog on Tuesday. Or, if you can't make it, send in your query beforehand, and we'll make sure Glassman gets it.

The transcript of the live chat will be posted on the blog for you to check out his answers.

Posted by Eileen Ambrose at 7:15 AM | | Comments (0)
Categories: Personal finance
        

August 2, 2009

Get Your Financial Questions Answered by Money Expert

Financial planner Barry Glassman will be our live chat guest Tuesday at noon. He'll answer any money questions you have here on the blog.

Take advantage of Glassman's expertise by attending the chat then. Or, if you can't make it, send in a question beforehand and we'll ask him for you. You can view the answer later on the blog. You can post a question below or send it to eileen.ambrose@baltsun.com

Posted by Eileen Ambrose at 1:15 PM | | Comments (0)
Categories: Personal finance
        

July 31, 2009

Financial planner to answer readers' money questions

Tuesday at noon we will have our weekly Live Chat on personal finance. This week's guest is financial guru Barry Glassman.

He'll take whatever money questions you have. If you can't make the chat, submit your question to me in advance at eileen.ambrose@baltsun.com. I'll make sure Barry gets them, and you can read his responses later on the blog.

Posted by Eileen Ambrose at 11:52 AM | | Comments (0)
Categories: Personal finance
        

July 29, 2009

Avoiding fees while paying with plastic overseas

Awhile ago, Mary E. wrote in about a foreign conversion fee she had to pay when she made a purchase in U.S. dollars in Switzerland using her Capital One credit card. But the reason she used that card is Capital One doesn’t charge a conversion fee.

Mary was confused, and I was a bit, too.

But Pam Girardo, a spokeswoman with Capital One, cleared up the confusion.

Girardo explains:

“International merchants offer cardholders the ability to pay in their home currency or the currency of the country. If a cardholder chooses to have the purchase converted to their home currency at the point of sale, the merchant/their bank charge a currency conversion fee (separate from the Bank that issued the credit card). This is what happened to the person in your blog (our cardholder). If the cardholder chooses the currency of the country, the typical currency conversion fees from the issuing bank are charged. Our cardholder would not have been charged a fee if they paid in the currency of the country they were in – Swiss Francs with their Capital One card (since as you know, we do not charge foreign exchange fees).”

Aha! Thanks for the explanation. So folks if you are traveling abroad, you might want to pull out the Capital One card and make purchases in the currency of the country you are in.

Posted by Eileen Ambrose at 7:47 AM | | Comments (0)
Categories: Personal finance
        

July 28, 2009

Eileen Ambrose Live Chat: Bankruptcy

Posted by Eileen Ambrose at 11:39 AM | | Comments (1)
Categories: Personal finance
        

July 27, 2009

Bankruptcy help: Consumer Sundays

The Debtors Assistance Project is a bankruptcy assistance program that emerged to address a huge contradiction: people consider bankruptcy if they owe creditors lots of money, but can't afford the legal advice to steer them through a process that has grown more complicated (and thus expensive).

The Sun's personal finance columnist Eileen Ambrose talks in her column Sunday about the growing number of DIY bankruptcy filers working without a lawyer, known in legalese as filing "pro se". 

She talked to Jeff Sirody, a lawyer who volunteers with the Debtors Assistance Project, giving free bankruptcy advice in 30-minute sessions scheduled through the program. The bankruptcy court in Maryland also offers these tips for people filing for bankruptcy on their own.

Got some bankruptcy questions? Sirody will be Eileen's guest for her live chat at noon Tuesday about filing for bankruptcy. E-mail your queries to her at eileen.ambrose@baltsun.com beforehand, then tune in at noon to get the answers from the legal expert. 

Can't make that time? You can still send your questions and check back later for the transcript.

Posted by Liz Kay at 9:04 AM | | Comments (0)
Categories: Debt, Personal finance
        

July 24, 2009

Bankruptcy questions? Ask an expert

This economy is no joke. If you're straining financially due to debt caused by medical bills, a job loss or other dilemmas, perhaps you've considered filing for bankruptcy.

Got questions about how it works: what debt would be covered, or how your credit history might be affected?

Send them to Sun personal finance columnist Eileen Ambrose at eileen.ambrose@baltsun.com. She is hosting a live chat at noon Tuesday with Jeff Sirody, a bankruptcy lawyer in Pikesville.

Sirody will be available for the half-hour to answer any questions you have about the process, benefits and drawbacks.

UPDATE: And don't forget, Eileen will take questions on other personal finance topics as well. 

Posted by Liz Kay at 11:25 AM | | Comments (4)
Categories: Budgeting, Debt, Personal finance
        

July 22, 2009

Got Bankruptcy Questions? Get Answers

On Tuesday at noon, we will have a live chat on this blog about bankruptcy.

Jeff Sirody, a bankruptcy lawyer in Pikesville, will be our live chat guest and be available for the half-hour to answer any questions you have.

If you can't make the chat, submit your questions beforehand to eileen.ambrose@baltsun.com, and I'll forward them to Jeff.

Posted by Eileen Ambrose at 8:49 AM | | Comments (1)
Categories: Personal finance
        

July 17, 2009

Live Chat: What to do if you don't have fall tuition

Hey, gang, I'm hosting a nother live chat at noon Tuesday. The topic: What are your options if you don't have the means to pay college tuition bills coming due for the fall semester.

As always, the chat will entertain any other financial questions you may have.

And, you can always submit questions beforehand by sending them to me at eileen.ambrose@baltsun.com Talk to you Tuesday!

Posted by Eileen Ambrose at 1:30 PM | | Comments (0)
Categories: Personal finance
        

July 10, 2009

Live Chat: What you can learn about estate planning from Michael Jackson

Hey gang, on Tuesday at noon I'm having another live chat on the blog. The topic is estate planning lessons you can take away from Michael Jackson. Yes, there are some.

But the chat is open to other personal finance questions, too.

You can post your questions then, or if you like, submit them here beforehand and we'll put them up on Tuesday.

Posted by Eileen Ambrose at 11:56 AM | | Comments (0)
Categories: Personal finance
        

July 9, 2009

Calling all twentysomething-thirtysomething investors

I'm writing an article about investing in a bear market, and am looking to speaking to those in their 20s and 30s about whether they have cut back on investing or are putting even more money in the market because they have years for stocks to turn around.

Send me an email if you'd like to talk at eileen.ambrose@baltsun.com. Thanks.

Posted by Eileen Ambrose at 3:08 PM | | Comments (1)
Categories: Personal finance
        

Fear, terror and economic anxiety

fear about economy

(art by Regina Boyce)

Last night I had a fascinating discussion with attendees of a community conversation organized by Art On Purpose, a local arts organization.

The group had held art workshops at several library branches exploring themes from Edgar Allan Poe’s work, including love and loss, madness and obsession, and fear and terror.

Several Baltimore residents created pieces addressing fear about the economy, and so for last night’s talk at the Waverly branch library, we dug deeper into what money provides and what folks were doing differently in the face of economic uncertainty.


We talked about priorities, and I offered up my frugal philosophy for life: how money gives us choices, whether it’s the kind of food we eat, the place we live and the health care we can enjoy. It’s better to start saving early, because you can’t take a loan for retirement.


Several attendees talked about the struggle to budget, how jarring it can be to suddenly become aware of how little money remains after addressing fixed expenses such as rent and utilities.


Another guest spoke about blowing up fixed expenses such as utilities altogether and going entirely without gas and electricity for most of last summer.


An experiment like that would certainly make you appreciate the simpler things. Another guest shared a story about a group of pre-teen girls who put aside their fancy video cell phones for more than hour to play with an old-fashioned deck of cards.

What are you doing differently because of the recession/economy, whether it's finding more economical entertainment, or cutting back on extras and rethinking eessentials?

You can see more art from the Art On Purpose workshops at other branch libraries this month as well as at the Baltimore Museum of Art this fall. The events are free and open to the public.

 

Posted by Liz Kay at 1:06 PM | | Comments (1)
Categories: Cheap/Frugal, Personal finance
        

July 6, 2009

A few more details on Cash for Clunkers

More details are being trickled out on the Cash for Clunkers program that’s expected to get up in running on or before July 24.

Government officials say dealers can expect to be reimbursed in about 10 days after a consumer buys a car and trades in the clunker.

They also elaborated more on fraud issues, asking consumers to report suspected fraud at (866)-CAR-7891 or TTY at (800)-424-9153.

The government site at www.cars.gov adds:

 “You may also call the Hotline of the Office of the Inspector General (OIG) at the U.S. Department of Transportation. The OIG Hotline is an important tool that is used to facilitate the reporting of allegations of fraud, waste, abuse, or mismanagement in the Department's programs or operations, including the CARS program. Allegations of fraud may be reported by DOT employees, grantees, contractors or the general public. The Hotline is set-up to receive allegations in variety of forms, including by email (hotline@oig.dot.gov), regular mail (DOT Inspector General, P.O. Box 708, Fredericksburg, VA 22404), fax (540-373-2090) or a toll free number (1-800-424-9071). OIG's Hotline is open 24 hours a day, seven days a week and is operated by a third party contractor.”

Posted by Eileen Ambrose at 4:04 PM | | Comments (4)
Categories: Personal finance
        

Finding a trustworthy financial advisor: Consumer Sundays

 

 

Hopefully the last time you saw your financial adviser, he wasn't in handcuffs, answering to federal investigators about Ponzi schemes he funded with your retirement money.

So how do you ensure that your broker or adviser isn't doing something shady with your cash? Personal finance columnist Eileen Ambrose offered some tips for making sure your financial advisor is no Madoff in her Sunday column.

The simplest way to protect your money stems from an old adage: 

Continue reading "Finding a trustworthy financial advisor: Consumer Sundays" »

Posted by Liz Kay at 10:53 AM | | Comments (0)
Categories: Personal finance, Retirement
        

July 2, 2009

Live chat on Bernie Madoff and other things on your mind

Hey, gang, I’m having a live chat on noon Tuesday at this site to discuss finding a trustworthy financial adviser after the Bernie Madoff scandal.

Or, we can discuss anything else on your mind.

Tune in at noon for the half-hour chat. You can also submit questions in advance and we’ll address those on Tuesday.

Cheers, and Happy Fourth.  Eileen

Posted by Eileen Ambrose at 1:50 PM | | Comments (2)
Categories: Personal finance
        

June 25, 2009

Mid-year financial resolutions: Cheap Trick Thursday

 

saving money
The first six months of 2009 are almost gone. How has it been for you, financially? Wherever you are, July 1 would be a good time to take stock of your situation as well as resume your work toward your goals (if necessary).

 

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 ...

Continue reading "Mid-year financial resolutions: Cheap Trick Thursday" »

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

June 22, 2009

Financial intimacy is the new intimacy

retirement planningLet'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.

And, surely, it's got to become easier over time.

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

Here's one unusual recommendation:  


Continue reading "Financial intimacy is the new intimacy" »

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

When couples don't talk

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 | | Comments (0)
Categories: Personal finance
        

June 11, 2009

Couples and Retirement

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 | | Comments (0)
Categories: Personal finance
        

June 9, 2009

Hey, kids, can you spare a dime?

Robbing the piggy bankKids, 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 | | Comments (2)
Categories: Personal finance
        

June 8, 2009

Target-date funds & Lake Montebello restrooms: Consumer Sundays

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.

Now, over in Watchdog this week, we address a pressing problem ...

Continue reading "Target-date funds & Lake Montebello restrooms: Consumer Sundays" »

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

June 2, 2009

Target Date Funds: Right On or Off Base?

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 | | Comments (0)
Categories: Personal finance
        

June 1, 2009

The fate of General Motor's pensions

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 | | Comments (1)
Categories: Personal finance
        

April 29, 2009

Obama and the stock market

Interesting factoid from the people at the Wilshire 5000 index:

Since President Obama's swearing in Jan. 20th, the Wilshire index gained 7.9 percent. That's better than the first 100-day return of all recent presidents except for one: George H.W. Bush.

The scorecard for the first 100 days:

Ronald Reagan first term 4.0%

Reagan's second term  3.8%

George H. W. Bush 9.1%

Bill Clinton first term 1.2%

Clinton's second term 0.5%

George W. Bush -2.3%

Bush's second term -1.2%

Barack Obama through April 28   7.9%

Posted by Eileen Ambrose at 3:09 PM | | Comments (2)
Categories: Personal finance
        

April 28, 2009

Financial advice for the Class of 2009

Stuart Ritter teaches college students at Johns Hopkins University about personal finance. (His day job is being a financial planner with T. Rowe Price Associates.)

Most of his students are college seniors. Ritter says he wants seniors to leave the class knowing how to prioritize and think long term.

"Up until now, their lives are broken up in three month chunks. Now they have to make decisions for literally decades in the future," Ritter says.

Their lifestyle decisions, such as the kind of car they drive will or participate in an employer’s retirement plan, will have an impact on how much they can save for a house or even when they eventually will retire, he says.

Ritter sends his students off with a list of tips. It's good advice to anyone trying to get finances in order. We post them here:

Budgeting

1) Be patient. Biggest mistake is trying to replicate in a few years the lifestyle it took your parents decades to achieve.

2) Match your income to the three kinds of expenses: Fixed, Flexible, Unexpected

 Fixed are decided when you make one big decision (live alone or with roommates)

 

Continue reading "Financial advice for the Class of 2009" »

Posted by Eileen Ambrose at 11:59 AM | | Comments (0)
Categories: Personal finance
        

April 17, 2009

Heads up: free BJ's trial membership, financial workshop for women

Here's a tip from Multimedia Editor Mary, via ABC News: BJ's Wholesale is offering a free 60-day BJ's trial membership, valid through July 6. Normally the membership fee is $45.

Feel free to print it out and take it to customer service, but remember our warnings about  warehouse store shopping. Tightwad Tod at Consumer Reports broke down the pros and cons of a BJ's membership for us, because BJ's claims to sell more items in reasonably sized packages. They also accept manufacturer's coupons, as loyal commenter Holly has reminded us.

And ladies, there's a good opportunity Saturday to get some financial advice ...

Continue reading "Heads up: free BJ's trial membership, financial workshop for women" »

Posted by Liz Kay at 11:21 AM | | Comments (0)
Categories: Cheap/Frugal, Personal finance
        

April 9, 2009

Negotiate in 3 unexpected places: Cheap Trick Thursday

Put your haggling skills to work in these three situations and you might get what you need for a lot less.

What's the key to negotiating? Be nice, respectful and realistic, said one business owner in a Marketplace Money story about bargaining in retail stores:

She says start by asking if there's any flexibility on the price. And don't forget to smile and maintain eye contact as you wheel and deal.

But where is it wise to negotiate a price? Americans are accustomed to haggling when it's clear there's a commission involved, such as on a new car or furniture. But what about ...

Continue reading "Negotiate in 3 unexpected places: Cheap Trick Thursday" »

Posted by Liz Kay at 7:41 AM | | Comments (3)
Categories: Banks, Budgeting, Cheap/Frugal, Healthcare, Personal finance, Shopping
        

March 23, 2009

Financial aid woes: Consumer Sundays

financial aidFinancial aid departments are inundated with requests for additional assistance from families reeling from problems in the woeful economy, Eileen Ambrose writes.

The tragic stories about lost jobs, foreclosed home and other financial issues just keep coming in, according to staff at the University of Maryland, Towson University and others. 

How do you ensure that your questions --- and requests for additional aid --- will be honored? 

Continue reading "Financial aid woes: Consumer Sundays" »

Posted by Liz Kay at 11:20 AM | | Comments (0)
Categories: Budgeting, Cheap/Frugal, College/Financial aid, Personal finance
        

March 20, 2009

What will you do with your Making Work Pay credit?

You should be receiving extra dollars in your paycheck soon, if you haven't already seen an increase.

What are your plans for it?

I'm writing an article about what you can do with your extra $15 or so per paycheck and am looking to talk to readers about their plans.

One of my colleagues, for example, increased his 401(k) contribution by 1 percentage point. That's not going to stimulate the economy, but will be beneficial to him.

Let me know if you're interested in talking. Post a response here, or write to me at eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 3:33 PM | | Comments (1)
Categories: Personal finance
        

Can you break $100? Do you even want to?

If you want to spend less, carry big bills. That’s the latest research from the University of Maryland’s Robert H. Smith School of Business.

Researchers say if you carry a $20 bill, you’re less likely to give into temptation and spend it, than if you had a wad of 20 singles. And people who had to save $100 were more likely to choose a Ben Franklin bill than five 20s.

“In the face of the temptation to spend, you’ll be more reluctant to break that hundred-dollar bill so you’ll end up saving it,” says Joydeep Srivastava, associate professor of marketing and co-author of the research in a prepared statement.

But, of course, it’s not as easy as that. Once you break a big bill, you’re less likely to pay attention to your spending, the researchers found.

“You’re more likely to throw self-restraint to the wind once you’ve released the impulse to buy,” Srivastava says.

Previous research by the Maryland associate professor showed we spend more using credit cards and gift cards than when paying with cash.

Bottom line for wannabe savers: “Leave both your credit cards and small bills at home,” Srivastava says.

Posted by Eileen Ambrose at 12:05 PM | | Comments (0)
Categories: Personal finance
        

March 19, 2009

Check it out: Free Tax Help, Free Financial Help

Mark March 21 on your calendar. That’s when Marylanders can get lots of free help with their taxes and finances.

The Baltimore CASH (Creating Assets, Savings and Hope) Campaign is hosting “Money Power Day” which will feature financial workshops, free tax preparation for those earning less than $42,000 and more than 40 exhibitors offering on-site education and financial services.

You also will be able to get your free credit report and one-on-one credit counseling.

Got sensitive papers you need to throw out but worry about identity theft? You will be able to shred you papers at the Shred-It Truck. Dogwood Cafe will offer demonstrations on healthy cooking on a budget. And there are workshops for teens, as well as a raffle for a laptop computer.

The event will be held from 9 a.m. to 2 p.m. at the Baltimore Polytechnic Institute at 1400 Cold Spring Lane in Baltimore.

Get there by 9:30 a.m. and you will hear “inspiring speeches” by Representatives Elijah Cummings, John Sarbanes and others, the group promises.

Also on Saturday, the IRS is offering free tax preparation at seven Taxpayer Assistance Centers in Maryland for those eligible for the Earned Income Tax Credit or those with incomes under $42,000. On top of that, the IRS promises to resolve tax issues, answer tax law questions, accept payments, establish payment agreements for those who can’t pay their taxes and work with those having a hard time paying. The tax centers will be open from 9 a.m. to 2 p.m. at these locations:

190 Admiral Cochran Drive, Annapolis

31 Hopkins Plaza, Baltimore

1260 Maryland Ave, Hagerstown

8401 Corporate Dr., Landover

14701 National Highway, Suite 4, LaVale

212 W. Main St., Salisbury

11510 Georgia Ave., Wheaton

 

Posted by Eileen Ambrose at 6:54 AM | | Comments (1)
Categories: Personal finance
        

March 18, 2009

Postive peer pressure?

Can peer pressure be positive?

ING thinks so. The financial institution has launched INGCompareMe. This allows you to plug in some details about yourself and compare how you rate among others on saving, spending, investing, debt and other areas of finance.

“For example, if investors determine they’ve saved less in their workplace retirement plans than their counterparts, it may inspire them to save more,” says ING in a prepared statement. “If they come out ahead of the curve, it may encourage them to continue their good habits.” (Or, it could make them slack off.)

ING collected data on 5,000 adults who contributed to retirement plans at work for the basis of the new tool. The information will be expanded and updated as time goes on.

Check it out, and let us know what you think.

Posted by Eileen Ambrose at 12:03 PM | | Comments (0)
Categories: Personal finance
        

March 16, 2009

Calculate your life expectancy

Talk to financial planners, and they will often tell you that people underestimate how long they will live.

That means they likely underestimate how much money they will need to save for retirement.

Northwestern Mutual has come out with a lifespan calculator to help you estimate how long you are likely to live based on your eating, driving, exercise and other health habits.

Calculators such as this one are sort of fun, and it could be an eye-opener for those who have no idea of how long they could live.

Northwestern Mutual calculates your life expectancy in about a dozen questions. (My age: 90)

Check out other sites like such as Dr. Thomas Perls’ Livingto100 calculator and the David Demko’s Death Calculator.

Posted by Eileen Ambrose at 12:32 PM | | Comments (2)
Categories: Personal finance
        

Consumer Sundays: Moneybloggers and storm inlet grates

bargaineeringMeet Jim Wang. You've read the Columbia resident's comments here at Consuming Interests, and we've certainly cited Jim's blog bargaineering.com along with his peers in the personal finance blogging world, including J.D. Roth from Get Rich Slowly and Trent from The Simple Dollar.

Read Eileen Ambrose's Sunday column to find out how these personal finance bloggers shared their experiences getting themselves out of the red... and have earned some green in the process.

As for Watchdog ...

Continue reading "Consumer Sundays: Moneybloggers and storm inlet grates" »

Posted by Liz Kay at 6:19 AM | | Comments (0)
Categories: Budgeting, Personal finance, Watchdog
        

March 13, 2009

Blogging for fun and profit & open storm drains: Consumer Sundays

Tons of people blog, but some people save you money while doing it.  

Eileen Ambrose talked with three personal finance bloggers who have cultivated an audience by sharing great advice about their own experiences digging out of debt. Now, they're helping others change their own financial outlook for the better --- and bringing in bucks while doing it.

Check out Eileen's Sunday column to find out how they corrected some big money mistakes.

As for Watchdog ...

Continue reading "Blogging for fun and profit & open storm drains: Consumer Sundays" »

Posted by Liz Kay at 2:16 PM | | Comments (0)
Categories: Personal finance, Watchdog
        

March 6, 2009

Consumer Sundays: how do people develop frugal habits, and reserved handicapped spaces

 

Excellent Eileen tackles an intriguing topic on Sunday: why some people are savers despite modest incomes, while others can't save a penny even on healthy salaries.

I'm not sure whether nature or nurture has a bigger impact on developing a frugal philosophy. However, you often hear stories about how living through the Great Depression, when people had to quit high school because they couldn't afford the socks (check out episode 3). It made people appreciate what they had and taught them not to waste anything. They fixed broken things and reused everything before recycling was trendy.

Anyone believe the current economic climate will help people form frugal habits they will practice for a lifetime? Check out what Eileen thinks on Sunday.

And as for Watchdog, we see how long it takes for someone trying to be a good neighbor to succeed in his quest to remove a handicapped parking space that his family no longer needs.

This week we're ending on a public service announcement:

Continue reading "Consumer Sundays: how do people develop frugal habits, and reserved handicapped spaces" »

Posted by Liz Kay at 4:27 PM | | Comments (0)
Categories: Budgeting, Cheap/Frugal, Personal finance, Shopping, Watchdog
        

February 17, 2009

Experian and FICO break-up

Here's an article from Newsday's Patricia Kitchen on changes in FICO scores:

As of Saturday, one of the three major credit reporting bureaus -- Experian -- will no longer allow consumers direct access to their FICO credit scores, this at a time when money is tight and lenders are putting even more stock in those scores.

Experian’s move “is a huge problem” for consumers, said John Ulzheimer, president of consumer education at Credit .com, an education site. “Experian is taking us in the wrong direction. ... We don’t need less access. We need more access.”

The scores are based on data in consumers’ credit reports. Consumers are advised to compare data in their reports from the three bureaus, and if there are no major discrepancies, then it’s likely the variation between credit scores will be minimal, Ulzheimer said.

The FICO score “is by far the most popular available for lenders to evaluate credit histories,” said Gerri Detweiler, credit adviser with Credit.com. The other two major reporting bureaus, TransUnion and Equifax, will still allow consumers to purchase their FICO scores.

While consumers are entitled by law to see credit reports for free at least once a year, that is not the case with credit scores. Experian’s move was based on a disagreement over terms with Minneapolis-based Fair Isaac, which developed the FICO scoring method, said a spokeswoman.

But lenders look at many other scores besides FICO, said Peg Smith, executive vice president for California-based Experian.

The office of New York State Attorney General Andrew Cuomo said it will look into the matter.

FICO scores from the three bureaus often vary by 10 to 20 points, said Steven A. Precht, director of housing counseling at SafeGuard Credit Counseling Services Inc. in Hauppauge. To discover and correct problems, it’s more important than ever for consumers to monitor data in their credit reports, especially Experian’s, said Carolyn McCormack, director of education at SafeGuard. To access credit reports, see annualcreditreport.com.

Posted by Eileen Ambrose at 1:31 PM | | Comments (4)
Categories: Personal finance
        

February 11, 2009

Brother, can you spare a dime?

Have you loaned money to a friend or relative? Was it a good experience or one you are still regretting?

I'm writing a column for Sunday about lending money to those near and dear and would like to talk to those with some experience for the article.

If you're interested, send me an email at eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 7:14 AM | | Comments (0)
Categories: Personal finance
        

January 30, 2009

Get your financial questions answered

Got a personal finance question? Like, what do I do now with half my savings wiped out?

You can get an answer from a pro today at an event sponsored by the National Association of Personal Financial Advisers and Kiplinger’s Personal Finance magazine.

Financial advisers around the country will be taking consumers’ calls today from 9 a.m. to 6 p.m. Eastern Time. To ask a question, call toll-free 888-919-2345.

Or, you can go online at Kiplinger’s site to participate in an online discussion with an adviser.

Posted by Eileen Ambrose at 7:36 AM | | Comments (0)
Categories: Personal finance
        

January 26, 2009

Consumer Sunday: power of attorney and BGE's tree-trimming schedules

Power of attorney is an important responsibility, so choose wisely, Eileen warned us this week.

According to Eileen's column yesterday,

... the power of attorney gives your "agent," the person acting on your behalf, broad authority over your finances with little or no monitoring.

Few protections exist, unfortunately, to keep the person you've selected from paying their own bills with your savings if you're unable to make those decisions yourself.

AARP is lobbying to have a Uniform Power of Attorney Act to try to keep folks from taking advantage, but until then, consider requiring the agent to share financial records with someone else, to ensure that no hanky-panky happens.

And over in Watchdog World, we addressed a pretty common reader complaint ... 

Continue reading "Consumer Sunday: power of attorney and BGE's tree-trimming schedules" »

Posted by Liz Kay at 8:55 AM | | Comments (0)
Categories: Personal finance, Retirement
        

December 19, 2008

Consumer Sundays: what happens to your 401 (k) and pension if your employer goes bankrupt?

So, hypothetically speaking, you work for a business that has recently declared bankruptcy or otherwise goes kaput.

Unfortunately, given the downward trajectory of our markets lately, this is a reality that affects more and more people every day.

Read Eileen's column Sunday to learn the fate of your 401 (k), pension and other accounts that are tied up with the company's messy finances.

And over in Watchdog ...

Continue reading "Consumer Sundays: what happens to your 401 (k) and pension if your employer goes bankrupt?" »

Posted by Liz Kay at 4:40 PM | | Comments (0)
Categories: Budgeting, Economy, Personal finance, Retirement, Watchdog
        

December 12, 2008

More weeks of unemployment benefits

Have your unemployment benefits run out yet you still haven’t found work?

The Maryland Department of Labor, Licensing and Regulation has some good news. The agency today says it’s sending letters to those eligible for an extra seven weeks of benefits, thanks to some emergency action by Congress.

The typical unemployment benefit runs 26 weeks. Congress extended that last summer by 13 weeks. And more recently, lawmakers tacked on an extra seven weeks in emergency relief legislation.

The first week for these extended benefits is the week ending Nov. 29th. State agency officials ask that you don’t call the claims center before you receive word that you are eligible.

If you quit your job, rather than being laid off, you are not eligible for benefits.

Posted by Eileen Ambrose at 12:02 PM | | Comments (0)
Categories: Personal finance
        

November 28, 2008

Consumer Sundays: Thanks and Goodbye

BearWavingGoodbye.jpg

Well kids, here goes my last Consumer Sundays post. I just handed in my paperwork at HR, got my boxes packed and am wrapping things up now on this here blog.

Tune in Sunday to find out why Eileen says, in her personal finance column, it's OK to embrace your inner tightwad in these hard economic times.

Liz's Watchdog column tackles a bus that doesn't stop at an unmarked bus stop in Canton.

And me? Well, just for giggles, I looked up the oldest article written by me that I could find in the Sun's archives. Here it is, a story that ran on 3B of the old Maryland section, when I was an intern in 1991:

Catrice Green, a student at Rosemont Elementary School, thought it was just great being a part of a stripe in the American flag."I feel like I am a star," said Shanee Monroe, a senior at City College and president of the student council who was one of the flag's stars. "To be any part of this celebration for the flag is a lifelong experience."

 

    An estimated 3,400 elementary and high school students agreed yesterday that being a part of a human flag was exciting, fun and quite a privilege.

 

Continue reading "Consumer Sundays: Thanks and Goodbye" »

November 12, 2008

In tough economy, what goes first? Eating out or Pay TV?

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The other day, we were talking about Starbuck's abysmal earnings report and how it really might be true that consumers are taking seriously that advice about how cutting one cup of coffee from your daily expenses will help you save lots in the long run.

Reader Don said he's been limiting the number of nights he goes out every week. Vegas Charlie said he and his friends are hanging around at home more. And the wonderful aeb says that packing lunches, bringing coffee from home has done wonders for the budget, although reining in shopping hasn't been quite so easy.

Continue reading "In tough economy, what goes first? Eating out or Pay TV?" »

Posted by Dan Thanh Dang at 2:50 PM | | Comments (11)
Categories: Budgeting, Cheap/Frugal, Debt, Economy, Personal finance
        

November 3, 2008

Consumer Sundays: Green says go, Social Security Numbers and Open Enrollment

1017573_green_light.jpgHappy Monday, everyone. I don't know about you, but I'm sick of candy already. I was visiting my Mom's and they had all of 9 trick or treaters so they were letting the kids grab handfuls from the candy bowl.

(ahem) I might have snuck a couple Junior Mints and M&Ms into my purse.

Anyhow, so did anyone going to the Waverly Farmer's Market notice how long that light is at Barclay Street? Well, thanks to Liz, the Department of Transportation has a fix set for the end of this month that will make those long car lines leaving the market go away faster. I feel like I need to go around the city and write down all the traffic signals that make me crazy because they're either way too long or way too short. 

There's one near Hopkins Hospital that is an accident waiting to happen since people run the left turn signal ALL the time. 

But I'm going to save my traffic light rant for another time. I don't want to start our Monday ranting... unless you feel like ranting?

Besides, I can't get to uppity since I have a confession to make about Social Security Number requests. I have to tell you that as much as I rail against companies that demand your SSN during a transactiion, I caved recently when I tried to renew my Verizon Wireless contract. The guy at Best Buy said he couldn't sign me up without it and I was pressed for time so instead of standing my ground and saying, "NO," I asked him if I could type it in myself... I hang my head in shame. 

Continue reading "Consumer Sundays: Green says go, Social Security Numbers and Open Enrollment" »

October 31, 2008

Consumer Sundays: traffic lights, American Express and open enrollment

redtrafficlight.jpgJust a taste of what you'll have to look forward to this weekend....

Find out which traffic signal in town was driving people nuts at a local farmer's market in Liz's Watchdog column.

Find out in my Consuming Interests column how American Express drove me nuts when I called them to help with a customer's complaint about a request for his Social Security Number.

Find out what Eileen says you can expect in open enrollment this month so healthcare surprises don't drive you nuts this year.

Tune in Sundays!

 

 (www.freefoto.com)

Posted by Dan Thanh Dang at 1:00 PM | | Comments (0)
Categories: Complaints, Credit cards, Healthcare, Personal finance, Watchdog
        

October 28, 2008

How to Avoid Credit Repair Scams

How can you avoid turning credit repair into credit despair? Here are a few suggestions from the Federal Trade Commission:

Avoid any company that wants you to pay for credit repair services before they provide any services. It is against the law.

Avoid any credit repair company that will not tell you your legal rights and what you can do, yourself, for free.

Avoid any credit repair company that tells you not to contact a credit reporting company directly.

Avoid any credit repair company that advises you to dispute all of the information in your credit report.

Avoid any company that suggests creating a 'new' credit identity - and then, a new credit report - by applying for an Employer Identification Number to use instead of your Social Security number. That is against the law. If you follow illegal advice and commit fraud, you also may be subject to prosecution.

Be safe out there.

FTC Crackdown on 36 Credit "Repair" Companies

sweep.jpg Ever wonder if those TV ads claiming to help you repair your credit are legit?

Here's what the Federal Trade Commission and 24 state agencies said:

"Companies that promise they are able to scrub your credit reports of accurate, negative information for a fee are lying - plain and simple," said Lydia Parnes, Director of the FTC's Bureau of Consumer Protection. "Under federal law, accurate, negative information can be reported for up to seven years, and some bankruptcies can be reported for up to 10 years."

Earlier this month, the FTC and the state agencies launched "Operation Clean Sweep" to go after 33 operations that deceptively claimed they can remove negative information from consumers' credit reports, even if that information is accurate and timely. The FTC sought to halt the companies' allegedly unlawful business practices, prohibit further violations, and make them pay consumer redress and give up their ill-gotten gains. The FTC said it received thousands of complaints from consumers. Keep reading for the list of companies that they took action against.

Continue reading "FTC Crackdown on 36 Credit "Repair" Companies" »

October 27, 2008

Consumer Sundays: Finance and Kids & You vs. U-Haul

Fuel%2520Gauge.jpg Welcome back, welcome back! Hope everyone had a good weekend.

So did you catch my column yesterday on U-Haul's gas policy? If you're using an eyeball test on a gas gauge, which in my experience with cars (my dad was a mechanic) become increasingly unreliable with age, how accurate can that be? I wonder who ends up shorted more often? U-Haul or their customers?

The only sure thing I learned from Lauren Klemm's experience is that you should never drop off a rental without someone there to check it in or else you're at risk of finding some surprise charges on your card.

I'd advise bringing a camera with you, too, so you can document the condition of the rental before you pick it up and the condition of the rental afterward... As a precaution, I'd say you should probably start taking a photo of the gas gauge, too, especially if you're renting from U-Haul.

Continue reading "Consumer Sundays: Finance and Kids & You vs. U-Haul" »

Posted by Dan Thanh Dang at 7:02 AM | | Comments (0)
Categories: Complaints, Consumer protection, Personal finance, Rent
        

October 24, 2008

Consumer Sundays: Noxious Gas Policies and Teaching Kids about Finances

uhaul_cargovan_big.gifI do love Fridays... almost as much as I love the end of Thursdays. Why? Because getting through Thursdays (which is deadline day for the print part of my column) is like defusing a ticking time bomb. I never know if I'm going to finish the job or if I'm going to explode into bits before it gets done.

So the end of the day Thursday is euphoric.

Anyhoo, all the wind-up is just to prepare you for Consumer Sunday! Here's a question I have for you: If the needle on a gas gauge points to the letter "F" and no one is around to see it, does it mean the gas tank is full?

For the answer, tune in to Consuming Interests, the column, on Sunday.

Continue reading "Consumer Sundays: Noxious Gas Policies and Teaching Kids about Finances" »

Posted by Dan Thanh Dang at 4:00 PM | | Comments (0)
Categories: Complaints, Personal finance, Rent, Watchdog
        

October 20, 2008

Consumer Sundays: Calm heads prevail in hard economic times

franklindr%2CjpgDid anyone notice that there was a running theme in the Consumer Sunday columns this past weekend? All the issues we covered called for patience and calm heads to get through trying times or problems. 

An unreliable street light in Roland Park was finally shining all night long in Liz's Watchdog column after what residents said was a long wait. After more than a year locked in dispute, a homeowner and a paving company decided to put the past in the past and try resolving their issues again without getting the state involved.

Eileen advised parents to stop wringing your hands over your 401K plans for a minute and take a good look at those 529 college savings plans you started for that college bound kid in your house. The stock market is likely putting a hurt on those 529s, too, but as Eileen told you, you can move that money to a different investment plan or you can put new contributions in a more conservative plan going forward. Has anyone already started doing this or are you going to?

Continue reading "Consumer Sundays: Calm heads prevail in hard economic times" »

Posted by Dan Thanh Dang at 7:02 AM | | Comments (2)
Categories: Complaints, Economy, Personal finance, Watchdog
        

October 17, 2008

Consumer Sundays: Calming a nation, stock market, traffic lights and contractors

Happy Friday, people! This week just felt like it was never going to end, huh? We've had lots to do, though, preparing columns and stories for you dear readers this weekend. We've also been busy hammering away here on the blog. Did you check out our redesigned blog with our happy little family of four? Groovy, yes?

fdr.jpg 

First up on Sunday... If you're still feeling a little dizzy and sick to your stomach over the stock market roller coaster ride we've been riding, what better time, then, to hear some sage words of reassurance? Americans living through the Great Depression had Franklin Roosevelt and his Fireside Chats to get them through the Great Depression. Read some of the words that calmed a nation in Money & Life on Sunday.

Eileen doesn't just stop there. She also tells you how the downturn in the stock market has hit college savings plans. Find out what you should do if your balance is down and your child is heaed to school in a year or two. 

Continue reading "Consumer Sundays: Calming a nation, stock market, traffic lights and contractors" »

Posted by Dan Thanh Dang at 3:12 PM | | Comments (0)
Categories: Complaints, Consumer protection, Economy, Personal finance, Watchdog
        

October 10, 2008

Consumer Sundays: Free money, the Fed bailout and you, Watchdog updates

Great googly moogly! Thank goodness it's finally Friday.
 
What a week we've had filled with technological innovation, devastating market losses, worried consumers and investors around the world, and lots of talk about state cutbacks here at home to education, healthcare and public safety (although, i gotta say, I'm not crazy about solving our money woes through slots).
 
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It's enough to send you over the edge, isn't it? But that would be most tragic, not just because you'd be dead, but also because you'd miss all the great consumer stories we've got waiting for you on Sunday. (heheh. I kid, you silly monkeys.)
 
In Consuming Interests, the column on Sunday not the blog, I'll tell you how free money offers and my favorite type of mail is connected.

Continue reading "Consumer Sundays: Free money, the Fed bailout and you, Watchdog updates" »

Posted by Dan Thanh Dang at 3:00 PM | | Comments (0)
Categories: Complaints, Consumer protection, Personal finance, Watchdog
        

October 6, 2008

Consumer Sundays: credit cards and abandoned cars

debitcredit.jpg

Happy Monday dear readers.

How many of you out there realized there is a difference between using your credit card and debit card at gas stations, hotels and car rental agencies?

Better yet, do you think I was too tough on the Zulichs? Every parent wants to help their children, though, right? Do you think Elizabeth could have eventually resolved this on her own or do you think it was only resolved because of Dad?

Are you like me? Worried that too many people aren't financially literate?

With today's financial crisis and move toward tightening credit policies, being financially illiterate could really hurt you.  As Eileen told you in her Sunday column, the current credit crunch isn't just affecting auto loans and mortgages, it's also affecting credit cards now, too.

Continue reading "Consumer Sundays: credit cards and abandoned cars" »

Posted by Dan Thanh Dang at 7:08 AM | | Comments (1)
Categories: Cars, Complaints, Credit cards, Personal finance, Watchdog
        

October 3, 2008

Your Money Bus: Knight Kiplinger on the Financial Crisis

A report from Gus at the Inner Harbor earlier today:

I spoke with Knight Kiplinger, editor in chief of Kiplinger's personal finance magazine, earlier today in downtown Baltimore. He was in town with the "Your Money Bus" -- a roving coach that's going to be touring 60 cities this year, with volunteer financial advisors giving free advice to people. (Kiplinger's magazine is one of the sponsors.)

He had some interesting observations about the current crisis and how it might affect Baltimore. Watch the video of my interview with him.


(ed note: And, if you have a blog, feel free to grab the video's "embed" code and display it to your readers, too. -- DD)
Posted by Dan Thanh Dang at 5:22 PM | | Comments (1)
Categories: Economy, Investments, Personal finance
        

Consumer Sundays: beach getaways, credit and abandoned SUVs

If I told you I'm working on a story about young love, debit card rules, a beach getaway, enormous security holds and an angry Papa Bear, would you want to hear more?

If the answer is yes, please check out my Consuming Interests column on Sunday.

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La Liz tells you the story behind the abandoned SUV that was found with its front fender wrapped around a tree on a grassy median in Park Circle two months ago. If you were wondering about it, too, check out her Watchdog column on Sunday.

Are you breathing a sigh of relief now that the House has passed the financial rescue plan? We're not out of the woods yet.

Continue reading "Consumer Sundays: beach getaways, credit and abandoned SUVs" »

Posted by Dan Thanh Dang at 3:35 PM | | Comments (0)
Categories: Complaints, Personal finance, Watchdog
        

October 1, 2008

Your Money Bus Tour coming to Baltimore


Are you looking for advice on how to lower your debt and increase your savings?


On Friday, Your Money Bus is coming to Baltimore's Inner Harbor, offering fee-only financial advisors who will be holding free advice events and symposiums where you can learn how to get your financial life in order.


Continue reading "Your Money Bus Tour coming to Baltimore" »

Posted by Dan Thanh Dang at 2:07 PM | | Comments (0)
Categories: Budgeting, College/Financial aid, Debt, Economy, Personal finance
        

September 12, 2008

FTC and debt settlers

The debt settlement industry is about to get a much-needed spotlight on it.

The Federal Trade Commission later this month is holding a conference on debt settlement to learn more about this fast-growing industry.

Debt settlers advertise heavily online, promising to settle your debt for as little as 50 cents on the dollar. But there’s a lot they don’t tell you, like you can end up worse than before.

A few years ago, there were about 300 companies offering debt settlement; now there are at least 1,000, says Peggy Twohig, with the FTC’s division of financial practices.

Calling them all companies may be generous. Twohig says a “telephone and Internet site is all you need in this industry.”

Twohig was in Baltimore this week to speak at National Foundation for Credit Counseling conference.

Twohig says she’s not suggesting all debt settlers are bad players, but the enforcement actions the FTC has taken against debt settlers reveals some disturbing practices.

For instance, she says, some debt settlers tell consumers to stop repaying debts and ignore their creditors. That doesn’t stop interest and late fees from piling up, nor does it keep creditors at bay. There’s “no mention of fees or the negative consequences of stopping to pay creditors," she says.

 Many times consumers get frustrated and drop out of the program, yet they still owe the ballooning debt, Twohig says.

NFCC members are credit counselors who offer debt management programs, where counselors work with creditors and consumers on a repayment plan. Consumers end up repaying their debt, but usually get a break on interest and late fees.

Credit counselors are no fans of debt settlers. One complained to Twohig that debt settlers from across the country call consumers in her state in violation of state law. “There’s no regulation of these groups,” she complained.

Another asked if the FTC would be interested in receiving case studies of consumers’ experiences with debt settlers. "Everyone in this room could just swamp you," he said.

Posted by Eileen Ambrose at 11:16 AM | | Comments (0)
Categories: Personal finance
        

September 10, 2008

AmeriDebt's Restitution

Alas, the trials of the print journalism. In today’s story about AmeriDebt, the last line — and important one — was cut.

The article says consumers burned by the defunct credit counselor’s shady business practices will soon start getting checks sent to them in the mail. It’s part of settlement between AmeriDebt’s founder Andris Pukke and the Federal Trade Commission that sued AmeriDebt and Pukke for deceptive business practices about five years ago.

About 460,000 consumers will receive checks totaling around $20 million. That’s an average of $43, but you might get more or less depending on the amount of fees you paid to AmeriDebt or one of its affiliated credit counseling agencies.

Pukke, who didn't admit wrongdoing, agreed to return up to $35 million for restitution. The FTC decided not to wait for all the money to come in before distributing checks to consumers.

The FTC advises consumers to be on the lookout for the checks in the next week and make sure they cash them.

The deleted last line of the article noted that this is that another restitution check could be in the offing if more money is collected from Pukke. Or, if many consumers don’t cash this check — which happens often when restitution is made — that money will go back into the pot and be redistributed to consumers.

Eric Friedman, director of Montgomery County’s Office of Consumer Protection, was an early critic of AmeriDebt. He says the fact that consumers are getting any money back is better news than usual in such cases.

“A lot of times, consumer protection agencies file a big lawsuit for a lot of money and you rarely see payback,” he says. Often the offending company either goes out of business and has no cash to make restitution or the case is settled for little money and consumers get little in return, he says.

If you get one of these AmeriDebt checks, let us know how much an