Marlo’s Money Advice

What are you doing to celebrate Earth Day?

I found a great website - Getting Ahead - with a fantastic Earth Week series:

http://www.gettingaheadblog.com

Please check it out !!

Do want to know exactly how much you will be receiving back from the IRS for your rebate?

The IRS has an online calculator where you can calculate your rebate. It is called the Economic Stimulus Payment Calculator.

Before You Start

• Have your 2007 Form 1040, Form 1040EZ, or Form 1040A available. You will be entering information from one of these forms.
• The result from this tool is just an estimate.
• Allow approximately 5-10 minutes to complete this tool.
• Please answer all questions on each page.

Remember the answer you get is only as accurate as the data you enter!

Just grab you taxes and plug in some number - very easy. Here is the link:

IRS Rebate Calculator

Do you need free information on how to write a Business Plan? Do you want access to a free Small Business Start-Up Guide? I have a free solution for you.

When I started a small consulting business, I needed guidance. I found the U.S Small Business Administration (SBA) to be a wonderful and free resource. The “free” part is especially important when you are starting out with little or no money. In addition, the SBA also offers low-cost services. (Click on the link to continue reading.)

SBA - Free resources for your small business on HubPages

My pets are my children. I love them more than life itself and would do anything to keep them safe, warm, well fed, loved, and happy.

Pet costs are over a $41 billion industry dollars per year. Times are tough for a lot of households right now, and the cost of goods is not getting any cheaper.

The focus on this article is on how to save you money for dog owners, without sacrificing your dog’s lifestyle.

Ways to save money

(1) Clip your dog’s nails

Many dogs hate having their nails clipped. If you start when they are puppies, they will be more accustomed to this, as opposed to starting this custom on an older dog. I suggest you have someone help you if the dog gets fidgety. Your helper can rub your doggie’s tummy or ears to relax them, take to them in loving tones, as you clip away. Remember not to cut into the dog’s “quick”. The quick is the blood vessel in pet dog (as well as cat) nail.

Your dog’s nail should be cut every 2-4 weeks.

Monthly savings: $15 a month.

(2) 3 year shots

Many vets now offer 3 year shots. The typical cost for a vet visit (exam and shots) could run upwards of $100, and more if you have a stool sample analyzed or heart work test. If you are really struggling financially, I suggested finding a vet that offer 3 years shots, to save yourself $200 (Year 1 - $100, Year 2 - $0.00, Year 3 - $0.00; start over again Year 4 - $100). You can save the extra money for a pet emergency, or other medical issue that may rise unexpectedly.

Bi-yearly savings: $200

(3) Groom your own dog

The cost of a grooming session for dogs can range anywhere from $20-$40 (or more). Dog shampoo cost $10 a bottle, and can last for up to a year. If you have a shower with a removable shower sprayer, you can bath Fido in the tub. Set aside some towels that are earmarked for you dog’s use.

Monthly savings: $30-40 a month.

(4) Brush your dog’s teeth

A visit to the vet for a teeth cleaning runs anywhere from $100-$300. If you get in the habit of brushing your dog’s teeth, and keeping plaque off, then you dog will not need a dental exam. Dental exams also require your dog to be anesthetized, which can be harmful if your dog has a heart condition. Many vets require blood work be done before anesthetization, which could increase the cost of the visit as well.

Dental cleaning savings: $100 - $300

(5) Ask for coupons

I personally use Natural Balance for my dogs, and the prices have been slowly creeping up. I called the company to ask for coupons, and they sent me an entire envelop full.

Savings: $1 - $10

(6) Find rabies clinics in your community

My town offers $10 rabies shot once per year. Adult dogs only need their rabies shots once every 3 years, a puppy needs their rabies shots at 5 months, one year later, then every 3 years (once the reach adult age). However, when it is time for their rabies shots, I find comfort knowing that the cost is only $20 for two dogs.

Rabies shot cost: $10 per dog (saves you a vet visit)

I hope these tips help you save money when caring for your dog. If you do not have pet insurance, it is always a great idea to have a little extra savings stashed away for a medical crisis. Hopefully, these tips afford you the opportunity to save. $$$

Investing your time to learn

We all spend time investing time into our relationships, our jobs, our hobbies – so why not spend time (and money) investing in our financial future. The ideas and tools I will be sharing with you will hopefully encourage you to make investing, or at the very least reading about investing, a hobby. Reading about money, finances, banking, and investing is one of my biggest passions and hobbies. If you start with the basics, then you might find this topic interesting as well.

It is not how much you save, but the disciplined approach you take. You can even start with $100. No amount is too small.

The Basics

Learning about investing seems so daunting to some. Since I have been around business-minded people my entire life, I find investing interesting and intriguing. However, some of my friends tell me it is daunting, and it is not interesting, and quite frankly, boring.

So I am going to focus on the basics to get you started, and hopefully you will be stimulated and excited to learn, and find this interesting too.

Recommended Website on Banking Rates

First of all, I recommend that you spend 10 minutes a day reading articles and websites on banking and investing. Here are my favorites:

Bankrate.com http://www.bankrate.com provides CD rates and mortgage loan rate quotes for home loans, mortgages, home equity loan, auto loans, and the best CD rates.

I check this site frequently for mortgage rates and CD rates, and then I know if my bank is offering me a good deal or not. I recommend this site for mortgage calculator, checking CD rates, and some of the articles are interesting to read. For better articles on banking and investing, I recommend Yahoo Finance.

Recommended Websites on Finance

Yahoo Finance http://finance.yahoo.com I have been using this site the longest, and like the clean, simple layout.

When you start to type in the company name to find the stock or mutual fund price, all companies will appear that are related to that phrase (ie, I typed in “Sun”, and 9 companies popped up, then you select your company - very simple).

You can track any stocks and mutual funds you want to follow. The articles are so helpful, and great to get you started, such as “Love Your Money and It Will Love You Back” and “Eight Sure-Fire Ways to Save Money” and “Fifteen Smart Money Moves for Tough Times”. Yahoo Finance truly speaks to the novice or average investor.

Google Finance http://finance.google.com/finance This site offers a broad range of information about stocks, mutual funds, public and private companies.

If you are strictly a Googler, then by all means, use this site. Google Finance focuses on stock and mutual funds prices, and related company articles.

Savings 101

Savings accounts are the best way to get started, and are liquid at any time. Even $20/week will equal $1040/year and if you do that consistently for 5 years, you will have $5,200, not too shabby.

With compounding interest at 3% (hopefully interest rates will go up again!):

1. Year 1 - $1,020 becomes $1050
2. Year 2 - $1,050 becomes $1,082
3. Year 3 - $1,082 becomes $1,114
4. Year 4 - $1,114 becomes $1,148
5. Year 5 - $1,148 becomes $1,182

Now that is $162 more than you started with!

I recommend looking for high interest savings account, or MMSA (Money Market Savings Accounts). This is a practical way to save, and is FDIC insured. Many banks offer high-interest on line savings account, such as HSBC, which is offering 3.55% - which is actually high right now.

Last year at this time, HSBC’s rate was 5.05%, but since the Fed lower the interest rate, all savings rates has decreased. Good for the borrowers, bad for the savers.

CDs - Certificates of deposits are excellent ways to lock your money up for a short or long period of time, and usually pays a higher interest rate than a savings account, but right now rates are lower too. However, if you can find a CD with a 3.5% rate (even for 6 months) versus the 1.5% you are earning in your savings account - go for it!

Mutual Funds

According to the U.S. Securities and Exchange Commission, a mutual fund is a professionally-managed firm of collective investments that pools money from many investors and invests it in bonds, short-term money market instruments, and/or other securities.

I highly recommend that you read the article http://www.sec.gov/answers/mutfund.htm, to get you started on overview and basics of mutual funds.

To start, go with a no-load (versus a fund with a sales charges or loads, like a Vanguard fund. You can call Vanguard at 877-662-7447 and only if you have a very little to invest, they will help get you started. Some funds need a $1,000 or $3,000 initial investment, but if you have less than that, you can start with $500, and add $100 a month until you reach the minimum.

Investing for Retirement

401K - If you have a company sponsored 401k, save as much as you can until you reach the company’s matching minimum. For example, if your company matches 2% of the first 10% you save, save 10% to get that FREE 2% (total savings: 12%).

401k Contribution Limit

• 2006: $15,000
• 2007: $15,500
• 2007: $15,500

No 401K - If you do not have a 401K (self employed, full-time mom, working part-time, company does not offer one), then I suggest you open a Roth IRA (Individual Retirement Account). You pay the taxes now (you buy the Roth IRA with after tax, take home money), and when you redeem the Roth IRA at the age 59-1/2, you pay no taxes on the earnings.

Vanguard can help get you started too!

Conclusion
I hope these basics helped you get excited about reading and researching savings methods and investments. If you have any questions or comments, please do not hesitate to post a comment.

Happy investing and saving!

* IRS Article Updated - March 10, 2008 *

The IRS has recently passed the 2008 Tax Rebate Plan, and is providing taxpayers a rebate, or “stimulus payment”, in mid-2008 based on 2007 income information. Additionally, certain eligibility requirements must be met.

The Best Source

I have been following the online articles and news regarding the 2008 Tax Rebate Plan. I have searched for updated information, then I went right to the source, the IRS’s website, and I found it the most accurate and informative.

Visit this page regularly for the latest updates:

• Read IRS Article here

According to this article, “The vast majority of Americans who qualify for the payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. The IRS will use information on the tax return to determine eligibility and calculate the amount of the stimulus payments.”

You must file your return by April 15, 2008, in order to start receiving your check in May 2008. If you file late, then you probably will not receive your check until December 2008.

Here are some examples from the IRS Frequently Asked Questions (FAQ) link:

Q: Who Will Get the Rebate?

A: Most single taxpayers will be eligible for a $600 rebate, and married couples who file jointly will be eligible for $1,200. Taxpayers with dependent children under age 17 will be eligible for an additional $300 per child. A typical family of four with two children would receive $1,800 ($1,200 married couple + $300 Child 1 + $300 Child 2).

Q: What If You Do Not Owe Income Tax in 2007?

A: Individuals must file a 2007 tax return to receive the stimulus rebate payment. Even if the person does not have a filing requirement and does not have a tax liability, they will still need to file a return so that the IRS will know that the person qualifies for the rebate.

Even if you didn’t owe any tax, you’re still eligible for a rebate of $300, or $600 for married couples, as long as you had at least $3,000 in earned income, Social Security benefits, veteran’s disability payments or a combination.

• So, make sure your retired relatives and friends file a return, even if it is just for information purposes.

Q: I normally don’t need to file a tax return. How do I know if I’m one of those people who may be eligible to receive an economic stimulus payment?

A: This group includes some recipients of Social Security, Railroad Retirement or veterans’ benefits as well as taxpayers who do not make enough money to normally have to file a 2007 tax return. For example, this can include low-income workers, those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits from the Department of Veterans Affairs in 2007. These people will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.”

Q: I know some people won’t get a stimulus payment. How do I know if I’m one of them?

A: You won’t get a stimulus payment in 2008, if any of the following apply to you:

• You don’t file a 2007 tax return.
• Your net income tax liability is zero and your qualifying income is less than $3,000. To determine your qualifying income, add together your wages, net self-employment income, nontaxable combat pay, Social Security benefits, certain Railroad Retirement benefits and certain veterans’ payments.
• You can be claimed as a dependent on someone else’s return. For example, this would include a child or student who can be claimed on a parent’s return.
• You do not have a valid Social Security Number.
• You are a nonresident alien.
• You file Form 1040NR or Form 1040NR-EZ, Form 1040PR or Form 1040SS for 2007.

Article Also Provides Stimulus Payment Examples

The eligibility for and amount of stimulus payments to taxpayers will vary according to their income and family situations. I would suggest you read the article and the various scenarios it provides to you.

• Married with Children
• Married without Qualifying Children
• Single (Head of Household) with Children
• Single without Qualifying Children

My Two Cents

Many critics have said this is a bad idea, and the US Government should put that money into educational programs, schools, and other programs. Damned if you do, and damned if you don’t.

I have spoken to people close to me and they are so excited about receiving the money. I ask everyone what they plan to do, and everyone has plans to spend it on a vacation, something for their house, or a paying off some debt.

My opinion is - thank you IRS, I will take the money. $$$

Are you having a billing issue? Do you need to talk to someone about your account? Amazon does not advertise their numbers on their website, so here it is:

• Amazon Customer Service Phone Number - 1 (866) 216-1072. International customers can reach them at 1-206-266-2992.
• Amazon Associates Phone Number - 1 (701) 787-9740

I have recently called both number and they work. I actually talked to live people!

Are you having a billing issue? Do you need to talk to someone about canceling your account?

Blockbuster online does not advertise this number on their website, so here it is:

1-866-692-2789

I was paying fees to have a Premier Account, but I was only getting paid from people with other PayPal Accounts, not credit cards. I paid all of these fees - what a waste of money!

This article will show you how to downgrade a Premier or Business account to a Personal PayPal account. PayPal makes is very hard for you to downgrade your account, so here are some tips on how to save money using PayPal.

There are 3 PayPal account options:

Personal

• If you are only accepting money from other people with PayPal accounts, I recommend this option (it is FREE to receive payments funded by PayPal Balance, PayPal Instant Transfer or PayPal eCheck). Personal accounts may not receive payments funded by credit card, debit card or Buyer Credit for eBay or eBay Express transactions without upgrading to Premier or Business accounts.

Premier

• Premier accounts include all the benefits of a Personal account [receive payments funded by PayPal Balance, PayPal Instant Transfer or PayPal eCheck (same as Personal)] and receive payments funded by Credit Card, Debit Card or Buyer Credit). You also have the ability to:
  • Accept all payment types for low fees
  • Set up your PayPal Shopping Cart
  • Access exclusive, professional customer service seven days a week
  • Be identified as a Premier account in your reputation pop-up box
  • Be featured in PayPal Shops, where over 150 million PayPal customers can make instant purchases from your website.

Business

• Business accounts include all the benefits of Premier accounts. In addition, you can:
  • Do business easily and affordably with our low-cost merchant account
  • Operate under your business name
  • Generate reports, financial statements and download settlement file
  • Use eBay Tools
  • Provide multiple employees with limited access to your account
  • Get paid from buyers without PayPal accounts

Downgrading an Account

There is no need to pay any fees unnecessarily. It is worth just having a Personal Account, and not pay any fees, if you are not accepting Debit or Credit Card Payments. Learn from my mistake!

There is no method to downgrade your account on the PayPal website. You need to follow these steps to request a downgrade from PayPal:

1. Login to your PayPal account
2. Click on ‘Contact Us’ at the bottom
3. Under ‘Help by Email’, click on ‘Contact Customer Service’
4. Under ‘1 - Choose a Topic’ – select ‘My Account’
5. Under ‘2 - Choose a Subtopic’ – select ‘Changing/Updating Account Information’
6. Under ‘3 - Summarize your question in one sentence’ – State “I want to downgrade my account from Premier to Personal.”

I hope this helps save you money when using PayPal.