Mandy: June 2009

Tuesday, June 30, 2009

Assorted Links and the Tuesday 10

The Accidental Slumlord
A writer whose lives in Massachusetts buys a two-unit rental property in Pocatello, Idaho for $62,750 during the housing boom. Read what happens when he actually visits his house and deals with his tenants.

OptionsHouse Brokerage - $2.95 Stock Trades
Another new discount online brokerage with cheap trades, but actually won #1 in Trade Experience in recent Barron’s Broker Survey, beating out E-Trade. Offers flat-rate pricing at $2.95 for stock trades regardless of number of shares, and $9.95 flat for options (no per-contract fee). $1,000 to open, $100 balance needed to trade. Anyone try them?

New research sheds light on the habits of successful savers
Includes a lot of expected characteristics, but worth a skim to see how you compare.

AMC Theatres A.M. Cinema
“A.M.Cinema, a new program providing early-morning guests the opportunity to see first-run movies at the best ticket price of the day. The program invites moviegoers to visit their local AMC theatre before noon Fridays, Saturdays, Sundays and holidays to enjoy ticket prices of $4, $5 or $6 depending on the theatre and market.”

F*** my job, Selling Everything!
Found in the Best of Craigslist section. Have you ever had the urge to simply sell everything you own, cash out your investments, quit your job, and just travel the world until the money runs out? This guy did.

Credit Bailout: Issuers Slashing Card Balances
People are haggling directly with credit card companies to lower their amount owed. However, the articles neglects to go into detail about the impact on credit scores. I suspect that there will still be significant damage to your credit if you “settle” in this way.

Tuesday 10: Good stuff from other personal finance blogs

How much do people spend on clothes by Jim at FreeBy50
Emotional Barriers to Negotiating and Haggling by Flexo at Consumerism Commentary
My IRA asset allocation at GreenPandaTreehouse
Things You Own End Up Owning You by David at MyTwoDollars
On Spending Consciously by Patrick at Cash Money Life
Pay attention to your money by Single Ma at Fabulous Financials
Retired at 31: An Early Retirement Story by FrugalTrader at Million Dollar Journey
Tax Deductible Mortgages in Canada by Mr. Cheap at FourPillars
Mid Year Financial Checkup by Madison at MyDollarPlan
Fun Fund Sell-o-Meter by J at BudgetsAreSexy

Understanding Financial Statements

micamica

When looking over your investments, do you ever wonder how the value of the companies you’ve put your money in is determined? What factors decide how well a company is really doing? What’s the source of the company’s financing? Will it meet or exceed this quarter’s projections? While some consider the stock market to be little more than a house of cards, subject to the whims of individual investors, there are, in fact, some very real and measurable things that can help you to diagnose the financial health of a company.

Take a statement

It’s not an interrogation but you’ll want to ask the hard questions before you invest. Only by examining and drawing conclusions from a financial statement, will you truly know how well a company is doing. At first glance, you will see that a financial statement is made up of three main sections, the balance sheet, the income statement and the cash flow statement. Each statement depicts a different aspect of the overall financial picture of a business. The balance sheet details companies’ current assets such as cash and prepaid expenses. It shows the financial position at a particular date. This statement tells you what the current liabilities or existing debt the company has, that has to be paid within that year. Examples of debt include accounts payable, salaries payable or income taxes payable. The amount of current assets over current liabilities determines the amount of working capital or leftover cash the company has to cover other operating expense s. Whether or not there is enough money left over after the current debt is paid off, tells you whether the company is on solid financial ground or might be headed for destruction.

The income statement is a summary of the profits a business has earned for a specified period of time. This is where you would see the amount of revenue or profits obtained for a companies’ products or services and the expenses incurred for salaries, supplies or income taxes. The difference between the revenue and expenses gives you the net income, which when compared over a period of say two years shows you how the net income is rising or falling, a fairly good indicator of how profitable the business is. Basically, this statement tells you if the company has revenue coming in.

The cash flow statement is particularly important when considering new ventures such as an internet startup. The ability to balance cash flow now is a sign that the business has a long and profitable future ahead of it. This reports the cash going out and coming in from operating, investing and financing activities. In this statement, changes in the net cash flow indicate the company’s ability to meet its debt obligations and pay dividends, how much external financing the company is using and its ability to generate cash flow in the future. Operating cash flow can be described as the cash effects from revenue and expense transactions. Investing cash activities comes from the purchasing and selling of properties or assets and financing cash activities shows how owners of the company have used loans from creditors to finance their business.

Know the facts

Investing should never be based on emotion. While you might be tempted to invest in a company because you like its products or because you’ve just read a favorable article about it in a magazine or newspaper, you should make sure you’ve done your research before ponying up your hard earned cash. Think of the financial statement as a kind of scorecard that helps you determine which company is the one you should invest in. What you’ll find is a hard look at the financial structure of a business that shows you what it’s really made of. Ask yourself a few questions and see if the statements help answer them. Does the revenue exceed expenses in the income statement? Does the amount of assets exceed liabilities on the balance sheet?

Notes often accompany financial statements. Read these notes carefully as they disclose information that can help you interpret the financial information on the statements. The notes reveal any changes that could have an impact on the company’s finances. It can provide some startling insights such as what type of debt the company purchased, for how long and for what purpose. For example, the notes might state that company A entered into a two year term note of which the proceeds were used to purchase the company’s out of state manufacturing facility and headquarters. Essentially, the notes are a complement to the statement providing more details. If you’re a shareholder, it’s your company. So you’ll want to make sure you know as much as you can about it.

Obama to Challenge 22nd Amendment, Become King

It could happen

As most voting Americans who use secured loans and cash loans are aware, a president can currently serve no more than two consecutive four-year terms in office. In extreme circumstances (such as the death or removal of the president), the limit is raised to 10 years for the successor. This is mandated by the 22nd Amendment to the United States Constitution, and was put in place not long after Franklin Delano Roosevelt’s time in office ended. Roosevelt actually died in office. The Amendment was proposed on March 21, 1947 and eventually ratified on February 26, 1951.

Why was the 22nd Amendment introduced? Congress was concerned that without term limits, the president would have the power to become a dictator. Thomas Jefferson foresaw this problem in 1807, and he warned that presidents not bound by term limits could use their popularity and power to become kings. In his words to the U.S. legislature at the time,

If some termination to the services of the chief magistrate be not fixed by the Constitution or supplied in practice, his office, nominally for years, will in fact become for life; and history shows how easily that degenerates into an inheritance.

Now, we have a new cult of personality in America in the leadership of Barack Obama. And we also have a movement underway in Congress that could seek to repeal the 22nd Amendment and make Obama the king of America.

He claims he isn’t…

World Net Daily (WND) reports that while President Obama supports the idea of term limits. This comes straight from the mouth of his chief spokesman, Robert Gibbs. Les Kinsolving of WND asked this question at a recent White House press briefing: ... click here to read the rest of the article titled "Obama to Challenge 22nd Amendment, Become King"

King Of Pop Had A Mountain Of Debt

Michael Jackson may have had as much debt as he did fame. It’s estimated the pop star’s debts amount to close to half a billion dollars. Money Coach Alvin Hall offers insights how Jackson may have taken himself so deep into the red and what regular Americans can learn from the mistakes of the mega-rich.

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Negative Credit Affects Auto Insurance Rates

Credit Checks for Auto Insurance?

You read that right—if you want to get the lowest auto insurance rates, you need to find a credit repair service to help you repair your credit. As odd as it may sound, auto insurance companies run credit checks on you now, on the theory that if you have less than stellar credit, you will be a more than average insurance risk. Meaning: they think that if you don't take care of your credit, you will not be a careful driver. This may be an unfair assessment, but that is their policy.

Is That Fair?

Unfortunately, it is completely legal to check your credit history while going over your application for auto insurance. While they look over your age, driving record, and health history, they can also look over your credit history. One of the reasons behind this is that if your credit history is bad, you will be more likely to file a claim. Some sources say that they can look up your credit history without your permission, while other sources say that you must sign an authorization form. Which is correct? Well unfortunately, both are right due to the Federal Fair Credit Reporting Act that states that they may, "…adopt reasonable procedures for meeting the needs for commerce, personal, insurance, and other information…" http://www.ftc.gov. So, either way, know that your credit history will affect how much you will end up paying for auto insurance premiums, even though all other factors, such as your driving history, are up to par. What do you need to do to get a better rate then? ... click here to read the rest of the article titled "Negative Credit Affects Auto Insurance Rates"

Best Duct Tape Prom Dress Will Win Scholarship

Pick your favorite duct tape prom dress

Yep, it's all duct tape.

Everyone has seen or heard of the duct tape prom dress and tuxedo combo, but did you know that a duct tape prom dress can win the student who made it a scholarship?

In fact, each year Duck brand duct tape chooses a couple to win $3,000 scholarships, and the company gives the school $3,000 as well. This year there are 330 entries, and you can vote for your favorite.

Scholarship money

Most students use low cost loans to get through college, but there are a lot of scholarships out there to help out as well. The duct tape prom dress and tuxedo contest will help six high school students pay for college.

The winners of the duct tape prom dress/tux contest get $3,000 each toward their college tuition. Second-place winners get $2,000 and third place get $1,000. The contest winners’ schools get the same amount in each case that the winners get.

Too late for your duct tape prom dress

If you haven’t already entered the contest, unfortunately it is too late for this year. However, voting is open until Thursday, so you could help a couple of lucky high school students win the scholarships.

Clearly, Duck brand duct tape has turned this contest into a gold mine. The contest has been around since 2001. Entries are judged on several criteria, and a small percentage of the entrants’ scores is based on the quantity of duct tape used.

No laughing matter

The duct tape prom dresses and tuxedos in this contest are extremely elaborate. If you go to the contest web site, you can check out all of this year’s entries as well as the entries from years past. ... click here to read the rest of the article titled "Best Duct Tape Prom Dress Will Win Scholarship"

How to Be a Millionaire

How to be a millionaire? You may be a bum wishing to have a million bucks, or you may be an aspiring young professional who wants to know if you are on the right path. Below are seven ways people become millionaires. Some are by pure luck but there’s no need to worry as others are based much less on chance and more on planning and wits. With some effort, you can have a big fat bank account one day too.

lottery First and the easiest, Win the Lottery - Without a doubt, this is the quickest way to become a millionaire. I was in Vegas the other day, and there are a ton of ways to strike it big as well. The problem? Your chances are one in a billion. Good luck and start rolling the dice!

Be Innovative - Most people believe that the easy inventions are already out in the marketplace but yet, new gadgets come out every day. Ideas are everywhere, so get your thinking caps going. If you aren’t the thinking type, you can always…

Learn from Madoff - Of course, you will also be on the front page of every newspaper and be in jail for 150 years but at least your wife can enjoy a good life with money you stole from other people.

If you take this path btw, let me know so I can report you before you start.

Corporate Slave - Okay, this is the first way to be a millionaire while avoiding the headlines. Many high paid professionals end up with significant wealth built up. Of course, they get beaten up at work daily as they climb the corporate ladder and then pay obscene amounts of government taxes afterward, but hey - nothing is going to stop you from becoming a millionaire right?

Forget Million, I was Born a Billionaire - Parents are rich aint’ a crime right? Even if you aren’t born that way, you might get a second chance. Get adopted!

Marry Rich - If you go to any bars or restaurants that are within close proximity to high end neighborhoods, you will see many very attractive ladies at the bar. There are some fairy tales alright, but most die trying.

Save Your Ass Off Millionaire - You can keep trying, but this is exactly how most of us will become a millionaire. It’s not glamorous like winning the nodel prize but no one will bother you (that’s a good thing when you are wealthy) because no one will ever know you are rich either.

Since this is actually the most probable way of becoming a millionaire, I’ve outlined a few steps you can take.

Stop Watching TV
But everyone watches TV! Yes, couch potato the third, that’s why so few ever become millionaires. While you are watching TV, your competition, the more successful and the people you envy are all making money. Stop watching TV. In fact, cancel it if you always give in.
Generate Some Income
- Working smarter and harder at work - If you have to choose between the two, please err on the side of being smart. Be friendly and helpful to coworkers, know when you should work hard and when to say no to distractions.
- Getting a Side Job - If you are earning less than $40,000 and trying to feed a family of four, you could probably write a book on money saving advice. Stop reading up on frugal living and write about it instead! Start your own business and earn more money!

All the rubbish about a penny saved equal two pennies earned is incredibly true because pondering about that all day will save you exactly two pennies. If you ever want to save enough money to make your family proud, start earning some to begin with. This includes:

Save Some Dough
Alright, what I said in step one was misleading (it wouldn’t be the first time so stop complaining). After you have decent income coming in every month, you need to save at least some of it. How much? It all depends on how fast you want to become a millionaire. There’s no right or wrong answer. No pain, no gain my friend.
Extra: What a tip? Start by resisting the temptation to improve your standard of living too quickly. It’s fun when you start going to fancier restaurants and living in bigger houses but there’s no going back (or at least without major pain). You can always go later. There’s really no rush.
Investing It in Diversified Index Funds
I keep telling everyone that I’m becoming an index fund convert. No, I’m not those that liked index funds from the get go or someone who lost a bunch of money in the stock market betting on individual securities. In fact, I made a small fortune in the stock market. However, it was risky, tiring, frustrating and stressful. I wanted a life. If you really want to be a millionaire, stick with index funds. You don’t need the crap and you don’t want to buy tissues after you bought Bear Sterns based on rumors that it was good value.

You are probably thinking right now - Tell me something I don’t know. Well, if you know everything already, why aren’t you a millionaire? Don’t be a smart bum that knows everything. Be a millionaire that got started reading and applying every common sense advice ever written.

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Related Articles at Personal Finance Blog by Money Ning:

Monday, June 29, 2009

Billy Mays' Cause of Death: Hypertensive Heart Disease

http://www.latimes.com/news/nationworld/nation/la-na-mays-autopsy30-2009jun30,0,3463271.story

UPDATE: it was heart disease

Sadly, America lost a big-voiced original pitchman this past weekend when Billy Mays passed away. Now it has been revealed that heart disease was the culprit. Not OxyClean, not payday loans or fast cash and definitely not foul play.

Michael Muskal reports for the Los Angeles Times that the man who “elevated the art of the television sales spiel to a fevered pitch,” died due to hypertensive heart disease. It was a heart attack, Hillsborough County, Florida Medical Examiner Vernard Adams determined.

A killer that stalks many

The preliminary results of Billy Mays’ autopsy indicate that hypertensive heart disease symptoms such as shortness of breath, nausea, bloating and difficulty sleeping flat in his bed could have all been likely signs that something was going wrong. Remember, however, that the results so far are only preliminary. Much like in the autopsy of Michael Jackson (where results were leaked), the final results will take a few weeks. So we won’t know for sure exactly what it was that killed Billy Mays, although the preliminary findings may very well be accurate. Toxicology and tissue tests results will be analyzed in due time, once the results are clear. ... click here to read the rest of the article titled "Billy Mays' Cause of Death: Hypertensive Heart Disease"

Bernie Madoff Sentencing and War Criminals Who Stand Free

He shielded others from prosecution

Sure, Bernie Madoff has been sentenced to the maximum of 150 years in jail. It’s a life sentence, I get it.

Sure, the presiding judge said he “needed to send a message to potential imitators and to victims who demanded harsh punishment.”

But Bernie Madoff did not act alone in his titanic Ponzi scheme that defrauded investors of $50 billion. Where are the others? The prosecution has failed to make the connections, and Madoff certainly wasn’t going to squeal. As you can see from the photo, he’s a man of dignity and principle. While some victims of the scam may find occasional relief from unsecured loans for quick cash, the vast majority will wonder why money man can work the system to such an extent that justice is (ultimately) perverted.

We cannot simply “move forward,” Mr. Obama

Common Cause President Bob Edgar writes in an editorial for the Huffington Post entitled “Free Bernie Madoff” that we as a nation must reconsider President Obama’s message that “We need to look forward as opposed to looking backwards.” I believe that statement is Obama’s attempt at encouraging America not to become bogged down in endless bickering over Guantanamo, Abu-Ghraib and torture memos. Yet it sets a frightening precedent. The guilty must be held accountable; this we must never forget. ... click here to read the rest of the article titled "Bernie Madoff Sentencing and War Criminals Who Stand Free"

Ruth Madoff: Shocked and Outraged

Ruth Madoff, wife to Bernie Madoff, claims she feels just as shocked and outraged by his crimes as the victims. It’s hard to give Ruth Madoff much credibility as she held over $80 million in assets, but in fairness she is doing something that would give her more than a modicum of accreditation. Ruth Madoff has agreed to give up over $80 million in assets, keeping only $2.5 million in cash of the family fortune including all real estate, and finally broke her media blackout to express her anguish and pain of the lie kept from her by the man she loved. Ruth Madoff won’t go to prison or need short term loans, but she’s doing the right thing.

Less of Everything

Time is everything, and there's less of it all the time. Everyone seems to agree that the older you get, the faster time goes. It's not that I work too much or am too tied to a mundane job. I've always worked full time. I've always worked 40 hours a week, not more and not less. But I no longer get everything done. And I'm always racing against time. There used to be plenty of time for everything. But there's not enough of it any more. So where does it go?

I was talking about this to a friend this morning and she told me that a friend of hers theorizes that each time the earth revolves around the sun, it moves a little more quickly. That could be; who can say? I do think there's a element of truth in it; that is, I think there's something physical going on. It may be something in the external world, or it may be internal.

I'm convinced that the sensation that time goes more quickly as you get older is more than just the way we think about it. I realize that I move more slowly than I used to, that I have less energy than I used to, and that it takes longer to do some things than it used to. But I don't think that's the whole story. Time is a construct, a convention. But we've lived with it for so long that we can't imagine life without it. Time has become everything. It may only be a construct, but it's all we have. Even if you take a new-age slant on the issue and say that the past and the future don't matter and that the Now is everything, the Now is a point on a continuum of time and time is still the center of everything.

I think human beings have some kind of inner mechanism – some sort of physical or physiological clock that has evolved as a result of living so long with the construct of time. And I think that somehow, out inner time mechanism gets wound tighter as we get older so that the way we experience time changes. I don't think it's just the way we think about time, I think it's physically real. I don't think we just get used to time as we get older. I think time actually goes faster. I think something physical changes as we get older and causes our experience of time to change.

BET Awards 2009 | Only Janet Can Clean Up This Mess

Hip-Hop is dying

When it comes to quality music, who are you going to take: the O’Jays or Ne-Yo? Michael Jackson or Lil’ Wayne? Perhaps the younger performers I use as examples here have the common sense and humility to admit that they could only hope to aspire to the example to the example those greater entertainers have set. But considering how empty-headed the music of Ne-Yo and Lil’ Wayne is (no funk, no soul, doesn’t make me want to move, intellectually offensive, wouldn’t sell me a cash advance if I were a Madoff victim), I have serious doubts as to whether they can see beyond the overblown pigs’ trough of their own hype.

Even Jamie Foxx, who should stick to comedy and biopics, fancies himself worthy of dressing like the departed Michael Jackson and moonwalking as a “tribute” during the 2009 BET Awards. The Jamie Foxx moonwalk is yet another tacky and tasteless testament to the lack of imagination on the part of television networks. I’m curious as to whether he was cajoled into doing that, or whether it was his own idea. Either way, everyone loses. Cash loans for a critical thinking class would be in his future, but I’m sure he thinks he’s too cool (and rich) for school.

And the fans back me up

Check out some of the user comments left on Entertainment Weekly’s live blog of the 2009 BET Awards. Nearly all of them are critical of the entire event. “Boring” and “tacky” are just two of the words used to describe a listless show that was punctuated only by a touching tribute Janet Jackson gave for her departed brother Michael (see video below). ... click here to read the rest of the article titled "BET Awards 2009 | Only Janet Can Clean Up This Mess"

Smart Phones Make Comparison Shopping A Snap

Bargain hunting has never been easier. Several smart phone applications allow users to type in a model or scan the bar code of a product, then search for a cheaper price online. That is forcing some bricks-and-mortar retailers to change the way they do business.

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Sunday, June 28, 2009

The GRS Garden Project: June 2009 Update

Every month, my wife and I track how much time and money we spend growing food. This is the report for June 2009. (Here are the results for 2008.)

It’s the beginning of summer, and that means our garden is lush and green and growing. It also means there’s nothing exciting to write about. We’ve begun to harvest a couple of things, but mostly our chores have become routine. We weed and fertilize while we wait for the crops to ripen.

One problem we’ve encountered this year is weeds. There are always some weeds to be pulled, but as many GRS readers warned, spreading horse manure on our vegetable garden caused more weeds to sprout. Kris is the weed-puller (and plant-fertilizer), so she puts the most hours into the garden. She spent four hours working on food crops this month, while I spent three, all of which were harvest-related.

Harvest
As our harvests begin, I want to remind you of our methodology. For the purposes of this project, we're using "best match" pricing. Based on GRS reader suggestions, we're obtaining typical pricing from our local farmers market. In some cases, we use pricing from a local organic produce stand. In all cases, we're trying to be fair, but this is more art than science.

Also, last year we established through repeated measurements that a pint of berries weighs roughly 300 grams. I’ll use this approximation frequently throughout the summer.

Those ground rules established, here’s our harvest for the month of June:

13.55 pounds (6.151 kg or about 20.5 pints) strawberries @ $2.99 per pint = $61.30
5.17 pounds (2.344 kg) snow peas @ $2.99/pound = $15.45
0.31 pounds (0.139 kg) raspberries $3.49/pint = $1.62

Our harvest this month was worth a total of $78.37. In June 2008, we harvested $50.83 worth of food. That’s a 54% increase in the value of our crops!

To be honest, though, we’re tempted to pull out the raspberries. They’re difficult to harvest (hidden behind a wall of thorns), and the fruit they produce is pitiful. I’ll bet that for $5, we can find a better variety.

Summary
And so the profit portion of our project has begun! July, August, September, and October will be even more productive as we begin to pick our caneberries, our tree fruit, and, especially, our tomatoes.

For now, here’s the monthly summary for June, including comparison data from 2008.

Month	Time	Cost	Harvest	Month	Time	Cost	Harvest
Jan 09	3.0 hrs	$131.15	—	Jan 08	4.0 hrs	$27.30	—
Feb 09	12.0 hrs	$36.67	$10.00	Feb 08	2.5 hrs	—	—
Mar 09	4.0 hrs	$1.00	$5.00	Mar 08	3.5 hrs	$130.00	—
Apr 09	3.0 hrs	—	—	Apr 08	5.5 hrs	$28.51	—
May 09	15.0 hrs	$98.55	$5.97	May 08	5.5 hrs	$110.89	—
Jun 09	7.0 hrs	—	$78.37	Jun 08	7.0 hrs	$0.79	$50.83
Total 09	39.0 hrs	$267.37	$99.34	Total 08	28.0 hrs	$297.49	$50.83

As always, we’ve been supplementing our own produce with food picked elsewhere. Last weekend, our friend Jolie joined us for a trip to the strawberry patch. Kris and I picked 24 pounds of berries (about two flats), for which we paid just over $20.

On Friday, our neighbor came over to let us know that her cherries were ready to harvest. We’ve decided not to preserve any cherries this year, but we picked about 10 pounds just for snacking.

Share your progress! I’d love to hear about other people’s gardens. Especially if this is your first time growing your own food, please chime in with what you’re doing and what you’re learning.

Final word
This garden project is not a formal experiment. Kris and I are long-time hobby gardeners, and we have set ways that we do things. This year, we’re trying to incorporate some new ideas from GRS readers, but most of the time we’ll do things the way we have for nearly 15 years.

We’re not trying to be 100% organic (though we are mostly organic through our normal practices). Nor are we trying to be 100% frugal. Instead, we’re trying to see just what our garden costs and produces based on our normal habits. We hope the results of this experiment will help us find new ways to economize and to improve our crops.

You can read about my goals for this series in The year-long GRS project: How much does a garden really save?

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Related Articles at Get Rich Slowly:

Friday, June 26, 2009

UPDATE: María Belén Chapur Pictures Found... ?

Must… have… pictures…

Perhaps, perhaps, perhaps. Or quizás, quizás, quizás, if you prefer. That’s what bloggers out there who think they’ve found the genuine article María Belén Chapur pictures should be thinking, because nobody knows for sure whether images of the mistress of South Carolina Governor Mark Sanford are out there. Here are the full E-mails he sent her. This is as close as the paparazzi have been able to come so far. Once verified current photos are located, money is definitely going to change hands somewhere.

Why has it been so difficult to find photos of “Maria,” as she is apparently known in Argentine media? As the Wall Street Journal speculates, it is a difficult undertaking to obtain pictures of political mistresses and love children because politicians in mid-scandal don’t have the facility to negotiate publication deals the way stars like Jennifer Lopez and Angelina Jolie do with the tabloids. The stars can negotiate their own deals (we aren’t talking online loan or payday cash loan money, here), thus maintaining some semblance of control. But scandalous politicians are generally trying to stay away from the limelight and retain their seat of power, so the attempts at secrecy are understandable. ... click here to read the rest of the article titled "UPDATE: María Belén Chapur Pictures Found... ?"

Death of Tippy Tom

Tippy Tom, the homeless man who was a regular feature on the controversial syndicated radio talk show Opie and Anthony has passed away. Not much is known about Tippy Tom, except that he had been far more health conscious and fairly successful in a business he owned before his homelessness, and that he was roughly around 45 years old. He reportedly died during a fall. He had been experiencing deteriorating health and had battled alcoholism, but was brought to public attention by the show’s stars. Worrying about unsecured loans and bills seems pithy when compared to worrying about whether it will be too cold to survive the night or where your next meal will be.

iPhone 3GS Accident Insurance Makes Sense

Smashing sleek smartphones is bad

The iPhone is all the rage these days. It’s that cool multifunction device driven by the most powerful smart phone advertising campaign on the market. Sure there are Android phones, Blackberries, Palm Pre, Treo and the like, but you can’t tell me that the first high-tech phone that comes to the minds of most people ISN’T the iPhone. Now that the iPhone 3GS has hit stores, the fever rages on.

What do you get with any iPhone? I am a happy owner, so I’ll tell you that the merger of cell phone, handheld E-mail/Internet device, iPod, gaming system and personal assistant is an unbeatable combination. It also looks cool, which for better or worse is a strong selling point. I don’t exactly care for AT&T, but I understood and agreed to swallow the evil when I entered into my contract. I haven’t needed a payday loan or quick cash to help me pay the bill, but only because I’m budgeting well.

Yet there is an even deeper evil buried with the iPhone that I thankfully have not experienced and hope that I never will. According to Jason Kincaid of TechCrunch, that piece of hardware is an “accident magnet.”

Like a “Slip n’ Slide”

The iPhone 3GS, 3G or first generation 2G can easily slip out of your hands and onto the ground. The slick design looks sexy, but it doesn’t exactly provide a lot of safe gripping surface. If you go with a protective case (I do), you protect the unit but sacrifice the sleek curves that have made it the phone to die for. Many people don’t want to let go of those looks, so accidents do happen.

Kincaid reports that SquareTrade has released study results that indicate that over 20 percent of iPhones have suffered damage in the past 22 months. Most often, it is a cracked screen. From a manufacturing standpoint, the iPhone fares better than its smart phone competitors. Compared with the iPhone malfunction rate of 9.9 percent over the past 22 months, Blackberry had a 15.3 failure chance and Treo had a whopping 19.9 percent. And with each iPhone generation, internal failure has decreased.

But those dropsies are fatal

When the iPhone meets the pavement, it doesn’t usually fare well. Two-thirds of all dead phones resulted from drops per SquareTrade’s findings. Of those, 25 percent came from water damage (dropping the phone into a toilet or pool). In total, at least 80 percent of iPhone failure is due to accidental mishandling, per the study.

I’ve already discussed why the iPhone is accident-prone. It’s a slippery fish. About half of the surface area is the glass screen, which you don’t exactly want to squeeze tight. Thus, it could be said that this is a design flaw in the product. Is this intentional? In my opinion, it certainly is. The automobile industry designed the parts in their vehicles to break down over time so that you’d have to replace them (and eventually, buy a new car). The same principle holds true with any other kind of product. It drives revenue.

And AT&T doesn’t help matters

Their replacement programs are expensive. Depending upon where you look, replacement screens can be had for as little as $50 to $80, but it can be as much as $200. It pays to shop around. AT&T charges you based upon how much time you have left until you’re eligible for an upgrade, but this isn’t unique to them. That carriers subsidize the cost of the phone as part of a contract is great… until you want or need an early replacement!

Kincaid clues us in to a great resource if you’re looking for a warranty for your iPhone. SquareTrade has an inside track on the data for their studies because they are actually in the business of selling these warranties. But you could also say that they’d be biased toward selling their product to iPhone users. SquareTrade’s charges around $77 for two years, says Kincaid. This includes accident coverage. I’m betting on my protective case as insurance, but if you’re less daring than I am, this could be a great deal to protect your investment. Otherwise, you’re going to need a payday loan for quick cash when an elephant sits on your iPhone 3GS.

Farrah and Michael Die, Ark of the Covenant Revealed

Breaking the seventh seal

In a single day, America lost two titanic pop culture icons in Farrah Fawcett and Michael Jackson. For one, release came after a painful, protracted battle with cancer. For the other, death came without warning in the form of cardiac arrest. For both the deceased, friends, family and legions of fans worldwide have taken time to remember the legends - and the private people who lived them. Such ultra-celebrities have scant room for private lives. If they needed unsecured loans for fast cash, everyone would know.

Even bishops in Ethiopia know something is up. That must be why they’ve chosen now of all times to reveal the Ark of the Covenant to the rest of the world.

“…dogs and cats, living together…”

Hillel Fendel reports for Israel National News that an Ethiopian church leader claims the Ark of the Covenant has been concealed within his church in the city of Axum for centuries. Rumors of it being located in the city have circulated for some time, but this is the first time there has been talk of someone revealing it there. Copies of the vessel have been found in many other Ethiopian churches.

Abuna Pauolos, the Patriarch of the Ethiopian Orthodox Church, paid a recent visit to Rome and Pope Benedict XVI. While in Rome, Pauolos made his announcement to news media. He announced his full intentions at a press conference this morning in Rome. ... click here to read the rest of the article titled "Farrah and Michael Die, Ark of the Covenant Revealed"

Farrah and Michael Die, Ark of the Covenant Revealed

Breaking the seventh seal

Even bishops in Ethiopia know something is up. That must be why they’ve chosen now of all times to reveal the Ark of the Covenant to the rest of the world.

“…dogs and cats, living together…”

The Problem With Market Timing

I’m in the process of consolidating all of my investment accounts at Fidelity. This isn’t because I think Fidelity is “the best”, but because I think they’re good and they’re certainly convenient. There’s a Fidelity “investor center” not far from my home. (In other words: I’m not endorsing Fidelity; I’m merely following my own advice to pick a good option instead of spending forever looking for the best.)

As I gather my various accounts under one roof, I’m also trying to set investment goals and to implement an asset allocation based on these goals. As I do this, though, I’m struggling with some emotional stuff. I’ve found that it’s one thing to write about smart investing, but it’s another thing to actually do it.

I’ve just learned a real-life lesson about market timing, for example. In general, short-term market timing doesn’t work — especially for amateur investors. If I asked you to tell me whether the stock market (or an individual stock) will rise or fall next Monday, you’d only be guessing. Investors shouldn’t make decisions based on guesses. Or wishful thinking.

Let me give you an example. I recently decided to sell a large stake in an S&P 500 index fund. In order to get my asset allocation correct, I wanted to transfer the money to bonds. But when it actually came time to sell the mutual fund, I couldn’t pull the trigger.

“What if it goes up?” I kept thinking. The market has been climbing over the past few months, and the fund was up 35% since March. 35%!! That’s a pretty good increase, but I wanted more. “Maybe I should wait until the market goes up another three or four percent,” I thought.

I held the index fund for an extra day. Then two. Then three. Each day, the market went down — and my fund followed with it.

“Ouch,” I thought. “I should have sold!” My fund had dropped 5% from the day I first decided to make the move. ”I guess I’d better just sell. Now I’m losing money that I could have safely on the bond side of my portfolio.”

So I sold.

That was early this week. As soon as I sold, the the market began to rise again. Up half a percent on one day, and the next, and then two percent yesterday.

“Holy cats!” I thought. “It’s up three percent since I sold it. I should have held on!”

This, my friends, is the problem with market timing. You can’t know what the market is going to do from day-to-day. Over the long term, the stock market has returned an average of about 10% per year. But that’s the long term. Over shorter spans, the market is volatile. It swings up and down. Over a period of days, its movements are basically random, unpredictable.

I made the decision to sell on June 12th, but I didn’t pull the trigger until June 22nd. In those ten days, my fund lost over 5% of its value. Now, in the three days since I’ve sold the fund, it’s risen 3%. Obviously, I managed to just about nail a worst-case scenario.

Market timing doesn’t always yield such poor results. But, in general, you’re better off basing decisions on your long-term goals and the market’s broad performance instead of trying to guess what your stock or mutual fund will do tomorrow.

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Related Articles at Get Rich Slowly:

Forgetfulness is the Mother of Invention

Today (and every day now) I'm wearing the best, most functional belt I've ever owned. It's a piece of thin black nylon webbing with a locking gripper buckle. It used to be a tent strap. Now it's a fashion accessory.

A couple of months ago I went to the Sunbanks Rhythm and Blues Festival at Banks Lake near Electric City, Washington. It's a four-day camping and blues event, and it takes me days to pack for it. I have to remember all the camping gear, food for four days, plus everything I need to dance blues and Argentine tango 10 hours a day. That means that even though I'm living in a tent, I need a lot of clothes, and I need exactly the right clothes.

After I unpacked everything and got the tent all set up, I changed into my first set of dance clothes. My heart was racing with excitement, but it just about stopped when I realized I hadn't brought a belt. Not one. Belts that work for dancing are hard to find, and really, I don't have any that are ideal. But I meant to bring the best things I have, which is a cotton web number with a metal slip buckle. Problem is, the slip buckle slips and I'm constantly having to adjust it. But it's the best thing I've ever found for the purpose of dance and as cheesy as it is, it cost $30 at The Gap. And it does keep my pants up, which is pretty important for dancing.

There was no where I could go to buy a belt. I thought about approaching my camper-neighbors to borrow something. I thought about cutting something up to make a belt. In my mind I was sorting through every scrap of stuff in the trunk and under the seats of my car. And then I saw the tail end of one of the black nylon-webbing straps that go around the nylon bag that holds the rolled up tent. I picked it up, slipped it through my belt loops, threaded it through the gripper buckle, and tucked the extra length into the front pocket of my pants. It was perfect. A little long, but perfect. Once I decided it was really going to work, I got out my knife and cut off the extra length and melted the frayed end with a cigarette lighter. I've been wearing it pretty much every day since!

I've spent plenty of money on belts. This is the best one I've ever had. I'm going to REI soon to get utility strap webbing in every available color. They have the buckles there, too. I estimate that each belt will cost about $1.50. It will take me longer to set up the sewing machine, remember how to thread it, and brush up on how to use it, than it will to make the belts.

Friends are so important

I don't know what I would do without mine. I would probably go crazy under all the pressure of being at home alone with my family. I would go crazy. Every so often I need to have a night out with my friends just to have a chance to breathe. There are actually tests that have shown that depression can be cured through friendships. People who only spend time with their family can suffer from depression severely. They can have that depression cured by having a friend they call at least once a week. I thought that was interesting. I believe that it is true.

Thursday, June 25, 2009

If I were a bird I would fly around all the time

It would be sweet to have gigantic wings. I would fly all over the world. It would be cool to be able to fly south every winter. I would get to see so many places. I wonder if it ever gets exhausting for birds to fly. I bet it does. Even though we walk all the time it gets exhausting to keep walking everywhere. I bet that makes it exhausting to fly everywhere. I bet that birds aren't lazy like some humans and stay in their nests all day long. Even though they get exhausted they probably don't just sit around still. They have stuff to do and places to see.

I really love music

I am not one that has their whole life revolved around it though. Some people have this idea that they have to be fully enveloped in something. They have to put all their mind and energy into one thing. I used to do it too when I was younger. People will put everything they have into their job or a hobby. I don't think it is healthy to do that. I think that people should have moderation in all things. They should be able to balance between music, a job, a hobby, and their families. It would make their lives a little better and solve relationship problems they might have.

Shaker Heights Yearbook Cover | Will it Cost Taxpayers Money?

Personal Money Store Videos on Youtube

A big controversy over the Shaker Heights yearbook cover has erupted and spread like an internet wildfire. At first glance, one might not see why the Raider Nation yearbook cover is causing such a stir. The yearbook cover says Raider Nation across the top and the rest of the cover is filled with what Michael McIntyre describes as a creative interpretation of a crowd of Red Raider mascots drawn by an artistically gifted student. So whats the problem with the Shaker Heights yearbook cover?

For more information on this article and others like it, please click on the following link:Personal Money Store: Shaker Heights Yearbook Cover

I bought a new entertainment center yesterday

I made a deal with myself that I could buy a new one once I had lost twenty pounds. I had to work really hard to lose the weight and save up the money at the same time. I took time to lose all the weight because I really wanted the new entertainment system. If I could lose thirty pounds I was allowed to get a big screen TV as well. It ended up being a really good goal for me. It motivated me to do the exercise and eat healthier. Now I am healthier overall. It definitely became a good thing for me.

Shaq Challenges Hong Man Choi to Big Money MMA Brawl

Personal Money Store Videos on Youtube

According to Bleacher Report, ONeal has been training in MMA for years and has used his finely honed knowledge to spot a flaw in the combat style of Hong Man Choi. Apparently akin to Bruce Lees near-telepathic ability to read the movements of opponents split seconds before they make them, ONeal feels confident he can defeat the dangerous Korean kickboxer.

For more information on this article and others like it, please click on the following link:Personal Money Store: Shaq Challenges Hong Man Choi

Daily Links: Money and Power Edition

It’s been a long time since I pimped my fitness blog, Get Fit Slowly. To be honest, I haven’t been writing there very much. I’ve been busy with this site. But I’m sort of proud and amused by the righteous indignation I mustered in my latest post: “Walk off 15 lbs by July 4!”. It’s been a long time since something got me that worked up.

In the world of personal finance, here are some of my favorite recent articles from around the web:

First, Trent at The Simple Dollar posted an interesting article yesterday about the relationship between money and power. One of Trent’s readers writes that people don’t want to be rich so they can buy stuff; they want to be rich so they can have power. “Money does not result in influence and respect — instead, influence and respect often lead to money,” Trent argues. “Built respect and influence first.” I agree with him, but I don’t think that addresses the question. There’s a difference between “respect and influence” and power. I’ve seen that money can and does buy power, even if it doesn’t buy respect.

At U.S. News & World Report, Kimberly Palmer recently interviewed Suze Orman about the economic crisis. Orman makes some interesting points. Here’s one exchange:

Palmer: Do you think young people have it worse than any other generation, with their higher unemployment rate, high debt levels, and weak job market for graduates?

Orman: Right now, they have it so great it’s not even funny. If the economy kept running the way it was, you guys would have been broke for the rest of your life. Real estate was going up and up. You would never have qualified for real estate, and companies were shipping jobs offshore. So where were you going to get a job? The price of tuition was so high [that graduates] owed $150,000 in student loans. The price of milk and other prices were so off the charts. What were you people going to do? The stock market was at 14,000, so every time you put money into your 401(k), you bought [fewer and fewer] shares.

Finally, NCN over at No Credit Needed has some advice on breaking bad habits. He has a list of things to try if you find that you make a lot of impulse purchase. Solid advice.

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Tuesday, June 30, 2009

It could happen

He claims he isn’t…

Credit Checks for Auto Insurance?

Is That Fair?

Pick your favorite duct tape prom dress

Scholarship money

Too late for your duct tape prom dress

No laughing matter

Monday, June 29, 2009

UPDATE: it was heart disease

A killer that stalks many

He shielded others from prosecution

We cannot simply “move forward,” Mr. Obama

Hip-Hop is dying

And the fans back me up

Sunday, June 28, 2009

Friday, June 26, 2009

Must… have… pictures…

Smashing sleek smartphones is bad

Like a “Slip n’ Slide”

But those dropsies are fatal

And AT&T doesn’t help matters

Related Video:

Breaking the seventh seal

“…dogs and cats, living together…”

Breaking the seventh seal

“…dogs and cats, living together…”

Thursday, June 25, 2009