Mandy: July 2009

Friday, July 31, 2009

Handerpants and Other Ridiculous Things to Spend Money On

Handerpants? HANDERPANTS?!

Yes, today has been a day of learning about “exciting” new products. I regularly advocate on this blog that people don’t use their payday loans for trivial expenses, and I am dedicating this blog post to pointing out things that no one needs, ever.

Why am I writing about handerpants, the magical underwear for your hands, and other things that you should not waste your money on? Well, because I think it’s funny. I can’t even believe that handerpants are real.

Watch the handerpants video

Of course, handerpants aren’t meant to be the next life-changing product. They are made by a novelty company, Archie McPhee & Co, which also sells candy floss, flavored mints and bacon soap. UTalk writes:

This infomercial is almost too good to be true. The ad lists all hands from all walks of life that will actually get use of out this new fashion accessory such as architects, night bloggers, old people, gastroenterologists, construction workers, chefs, Twitterers, Ninja's with delicate hands and magicians!

Don’t worry, I won’t leave you hanging. You can watch the Handerpants commercial right here:

The punch line, for me, is that these things cost $12, and people actually do buy them. ... click here to read the rest of the article titled "Handerpants and Other Ridiculous Things to Spend Money On"

UCLA Undie Run Canceled Due to Safety Concerns

Covering up the student body

(Photo: flickr.com)

Sometimes, you just need a holiday. A time to get away. For people struggling to make their budget stretch, that could mean short term loans and no fax payday loans. For college students, than can mean blowing off steam after a tough semester. Since 2002 at UCLA, there has been a tradition the last week of a semester that students participate in what has been called the “Undie Run.” As the name indicates, there’s running involved, but mostly it’s an excuse to wear only your underwear in public amidst a sea of like-minded compatriots.

But a no-fun college administration has stepped in and thrown a wet blanket over the proceedings. The UCLA Undie Run has been canceled due to “safety concerns.” Young men and women will have to put their T-shirts back on. Oh wait… the wet blanket is soaking through the T-shirts. The young ladies are drenched! Houston, we have a problem…

They did it all for the nooky

The UCLA Daily Bruin reports that the final-week tradition has been “canceled following campus administrators’ safety concerns,” as well as security issues. Apparently it gets a bit too far out of hand. Either that, or the administrators are too self-conscious to join in the fun and want to suppress it all. ... click here to read the rest of the article titled "UCLA Undie Run Canceled Due to Safety Concerns"

Omer Bhatti Pics Have People Speculating About Michael Jackson

Omer Bhatti says he’s not Michael Jackson’s son

Despite the fact that Omer Bhatti has told media that he is not Michael Jackson’s love child, people want to see Omer Bhatti pics to decide for themselves whether the late pop star was his biological father.

The Omer Bhatti pics to the right show him as a child, walking with Michael Jackson, and in a recent photo. The newly hyped speculation has come up because Joe Jackson has been saying that Omer Bhatti is Michael Jackson’s love child.

Omer Bhatti pics will not solve mystery

So people think that looking at Omer Bhatti pics will solve the mystery of whether he is Michael Jackson’s love child? Well it’s common knowledge that Michael Jackson doesn’t even look like Michael Jackson. Finding out the truth about Omer Bhatti’s father is going to take a lot longer than getting payday loans with no faxing.

It’s impossible to know what Michael Jackson would have really looked like if he hadn’t gotten so many plastic surgeries. So people are looking to Omer Bhatti pics and comparing them to pictures of Blanket, Michael Jackson’s one child who allegedly has Michael’s DNA.

Test time

Another tactic that some media are taking is comparing old pictures, well, I mean young pictures, of Michael Jackson to Omer Bhatti pics. That gives a better idea about similarities in their appearances, but it still doesn’t tell us anything about this “Omer Bhatti is Michael Jackson’s love child” rumor. ... click here to read the rest of the article titled "Omer Bhatti Pics Have People Speculating About Michael Jackson"

How to Create the Ultimate Certificate of Deposit (CD) Ladder

If you are disappointed with the low interest yields offered by even the highest-yield savings and money market accounts, but you don’t want to tie your short-term cash in a riskier investment, consider certificates of deposit (CDs). CDs, however, generally carry penalties if you withdraw your cash before they mature. In other words, you invest in a CD designated with a length of time that represents when you would like your money, plus interest, back. But if you need to liquidate the CD, a bank may take away some or all of the interest that has accrued since the time of the deposit.

A certificate of deposit is considered a “deposit account” just like a savings account or money market account. You are allowed to earn interest, and if the bank enrolls in the program, your cash will be protected by the FDIC up to the limits allowed by law.

There is a way to structure your certificates of deposit in a form that reduces the risk of losing a large portion of your interest, and it is called a CD ladder. At staggered intervals, you buy CDs with staggered maturity dates until you only need to buy CDs with the longest maturity date. The result is every few months, a CD matures and you can roll the cash into a new CD or use the cash for your short-term expense needs.

The process consists of two phases. For this example, we’ll use the latest rates from Ally Bank which does not have a minimum balance requirement.

Setting up the ladder

These are the CD products and interest rates we will be dealing with:

Duration	Rate
3 Month	1.10%
6 Month	1.60%
9 Month	1.55%
12 Month	2.00%
2 Year	2.25%
3 Year	2.70%
4 Year	2.85%
5 Year	3.25%

We can use this combination of maturities to create a ladder that provides us with a roll-over, or a chance to withdraw part of the cash, every three months. During Phase 1, this will require a combination, but by Phase 2, all CDs will be of the 5-year maturity, which usually offers the highest interest rates. Remember that five years is as long as you want to go; any money that you won’t need for more than five years can stand to be in a slightly riskier investment.

Assume that we have $10,000 that we’d like to begin rolling into certificates of deposit. Since the longest we want to go is five years, we can split this evenly over time at $2,000 per year. Our shortest maturity is three months, so we can tackle this in terms of $500 a quarter.

In the first phase, start on day zero by buying CDs in the following pattern:

$500 in the 3 month CD
$500 in the 6 month CD
$500 in the 9 month CD
$2,000 in the 12 month CD
$2,000 in the 2 year CD
$2,000 in the 3 year CD
$2,000 in the 4 year CD
$500 in the 5 year CD

At the end of the each of the first three quarters, withdraw each quarter’s $500 plus interest and use the funds to buy new 5 year CDs. For the sake of the example, we’ll withdraw the interest and place it in another bank account to use as income. To make more of your money, “reinvest” your interest each quarter.

Watch out for automatic renewal. At Ally Bank, CDs are automatically renewed for the same duration when they mature. During this stage, you will need to be proactive to withdraw the funds at maturity and use them to buy the next appropriate CD.

After one year of doing the above, this is what we have:

$2,000 maturing today (original 12 month CD)
$2,000 maturing in one year (original 2 year CD)
$2,000 maturing in two years
$2,000 maturing in three years
$500 maturing in four years
$500 maturing in four years, three months
$500 maturing in four years, six months
$500 maturing in four years, nine months

With the $2,000 maturing today, buy:

$500 in the 3 month CD
$500 in the 6 month CD
$500 in the 9 month CD
$500 in the 5 year CD

Do the same with the $2,000 that matures each year until you have 20 CDs, each maturing every quarter for the next five years. Once this process is complete, you can allow the automatic renewals to take effect except for when you need to withdraw your money.

Drawbacks of the CD ladder

You may notice that, as long as rates for long-term CDs remain higher than short-term CDs as they do most of the time, this method results in earning less than simply investing your entire $10,000 in a 5 year CD. But the CD ladder provides you some protection against losing interest if you need to withdraw your funds early. At Ally Bank, the penalty is not significant. This bank will charge you the amount of three months’ interest if you withdraw a CD with a maturity of 12 months or less or 6 months’ interest if you withdraw a CD with a maturity of longer than 12 months.

Another possibility to consider is that you might earn more interest in a high-yield savings account than you would in a short term CD. Ally Bank’s Online Savings Account earns 1.75% right now, making it more attractive than the 3, 6, and 9 month CDs. When this is the case, use a specially designated savings account rather than the short term CDs.

We could have made this process easier by setting up a ladder that results in a turnover of $2,000 once a year rather than $5,000 every quarter. This method allows you to decrease the possibility of losing interest because you will always be able to access a portion of your investment within three months. In combination with a savings account, which is liquid at all times, you can earn consistently higher interest rates with less risk than using five-year CDs that mature only once a year.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

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How to Create the Ultimate Certificate of Deposit (CD) Ladder

Goldstar: Half-Off Local Events In 8 Major Cities

Feeling the recession, but still want to get out of the house? You might consider signing up for Goldstar, which helps you to “Go out more”. They offer half-price tickets on plays, concerts, sporting events, and museum exhibits.

So far, it includes events in these areas: Los Angeles, San Francisco, Chicago, D.C. Metro, New York, Boston, San Diego, and Las Vegas. Events are summarized into weekly e-mails, and there is also a social networking component where they collect a lot of individual reviews of each event.

For example, if you live in the SF Bay Area, you could ride an all-day Golden Gate Bay Cruise this weekend for $11, see the Giants play baseball tonight for just $5, watch professional beach volleyball for $5, or even watch bassist Charlie Haden at Yoshi’s Jazz Club for free.

They do tack on a service fee for each ticket, which varies but is at least disclosed relatively early. I saw from $2 to $6 per ticket. For each new friend you refer that joins Goldstar, you get $1 credit towards service fees.

Thursday, July 30, 2009

White House Reviewing 'Cash For Clunkers' Program

AP sources: Govt to suspend ‘cash for clunkers’

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My Favorite Quote from “Magic on Night River”

My favorite quote from the story "Magic on Night River" was "Grandfather had no need of cords to hold his birds. They were held to him by something stronger." It shows that Yoshi's grandfather had formed a special bond between himself and his birds. He no longer needed the ropes to keep them from flying away. Because he was so kind to them, they didn't feel like they were prisoners. They didn’t have to worry about how they were going to be treated when they came back because they already knew, and they came back because they knew that they would be treated with love and that they would always have their freedom.

Taking Notes

During History class, I've learned that if I take notes on the material while the teacher is talking, I have an easier time remembering what was taught and it's easier to do my homework. This goes for every other class too. In cooking class, it's easier to follow the directions if you know what the directions are. In science class, when experiments are being done, you get better results when you follow the instructions and listen to the teacher to know what to do. In German class it's really important to pay attention. Learning a new language is challenging, and if you listen in class, you learn a lot more, plus it makes the homework much easier.

I’ve never really been a very fast reader

My oldest sister calls me a "Molasses Jar" because, compared to her, I read really slowly. Sometimes I can't seem to find any time at all to read, so that slows me down even more when I'm reading a book. I know I don't read as fast as some people, but I still have fun and really enjoy reading. When I read a book, I usually like to be as comfortable as possible. My favorite place to read is on the couch with a nice warm blanket and sometimes some quiet background music. I also like to read in my bed, but that's usually only late at night right before I go to sleep.

Jack Wilson

Jack Wilson will be trading in whatever weather they get in Pittsburgh, and trading it for rain. Jack Wilson, along with Ian Snell, have been traded by the Pittsburgh Pirates to the Seattle Mariners. Wilson ironically had lambasted the Pirates for their habit of trading notable players, and now has had the same done to him. The short stop has been invaluable on defense, and dangerous on offense, leading the National League in triples hit in 2004, and in double plays by short stops in all MLB. It’s a good move for Seattle, who will likely put Jack Wilson to good use, as a great fielder and hitter is a player worth giving a cash advance for.

Erin Andrews 911 Call | On the Verge of a Nervous Breakdown

The Erin Andrews parade continues

Give me a break... please! (Photo: chuvachienes.com)

Did you hear the Erin Andrews 911 call? Paparazzi have made her a prisoner in her own home, through no fault of her own. She deserves to be let off this train so she can live her life and resume her career in peace. She is good at what she does and has not done anything to invite the kind of attention the illicit peephole video has brought her. Who knows… if she has to stay away from work and continue to hide from drooling mouth breathers, she may soon need short term loans and no fax payday loans. Of course she could apply here if she did… I’m just saying.

But what is she going to do in the meantime? There are still lunatics out there who think that Erin Andrews staged the peephole video as a publicity stunt, which is ludicrous. Listen to the 911 call (video below); read the transcript here. This woman is frayed beyond belief and wants things to go back to normal, or as normal as they get for an incredibly attractive woman working in a high-profile job in view of millions of men (a small portion of them perverts).

Defending Erin Andrews

That’s exactly what author “Sooze” does on the blog Babes Love Baseball. She brings our attention to an op-ed piece by Tyler Ohmann, the sports editor for the University Chronicle for St. Cloud State University in Minnesota. I don’t know what they’re teaching up there, but gender sensitivity and the common sense found in a caribou don’t appear to be in the curriculum. He claims Erin Andrews orchestrated the video: ... click here to read the rest of the article titled "Erin Andrews 911 Call | On the Verge of a Nervous Breakdown"

Anderson Cooper, Bachelorette Bring Humor to 'Regis and Kelly'

Bachelorette makes Anderson Cooper queasy

Anderson Cooper is the man.

As if “Regis and Kelly” didn’t get enough attention as it is, throw in Anderson Cooper and a dash of snark, and you’ve got yourself a viral video.

Anderson Cooper filled in for Regis yesterday when The Bachelorette herself came on the show. The ensuing interview was pretty entertaining. At one point Anderson Cooper said to the Bachelorette: “I think I just threw up in my mouth.” Hilarious!

‘Bachelorette’ is a cash cow

In my opinion, “The Bachelorette” and all shows of its ilk are nothing but moneymaking schemes. I guarantee you ABC doesn’t care a lick about whether Jillian and Ed live happily ever after. All of those “finding the one” shows are nothing but cash advances to the networks. Or maybe I am projecting my own feelings there.

Anyway, I commend Anderson Cooper for calling out the classlessness that “The Bachelorette” represents. He asked her how many men she slept with on the show. The “Regis and Kelly” studio audience was aghast.

Oh, now all of a sudden it’s none of our business?

After Anderson Cooper asked Bachelorette “How many did you actually sleep with?” the audience broke into “shocked” noises followed by cheers. If you watch the YouTube version, you can see Anderson Cooper mocking the Bachelorette and the audience, saying “Oh! I’m shocked!” ... click here to read the rest of the article titled "Anderson Cooper, Bachelorette Bring Humor to 'Regis and Kelly'"

Failing Forward: Transforming Mistakes into Success

Sometimes the best personal finance books aren’t about personal finance.

In June 2006, for example, I shared a brief review of Steven Pressfield’s The War of Art. Ostensibly this book is about creativity and overcoming procrastination, but I found its lessons valuable for pursuing my financial goals. Last year I read Mastery by George Leonard. On the surface, this book has nothing to do with money, yet it’s one of the best books about money I’ve ever read.

John C. Maxwell’s Failing Forward is another of this ilk. It’s not meant to be a personal finance book, yet I’m willing to bet that more of you can improve your financial lives by reading it than by reading The Automatic Millionaire or Personal Finance for Dummies (though these are both fine books). Why? Because books like Failing Forward apply to your entire life rather than just one part of it.

Failing forward
I clearly remember a period during the late 1990s during which I felt like a failure. I felt washed up. I felt like I was sleepwalking through life, accumulating debt, eating too much, working in a job I hated. Every time I ate a hamburger or bought something on credit — or worse, bought a hamburger on credit — I felt this failure meant that I was a failure.

But what I eventually learned was that failing at one thing is not failing at all things. And, in fact, failure is a necessary part of growth. Life is filled with trial and error. In order to walk the path to success, you need to make some wrong turns along the way.

What I learned, to use John C. Maxwell’s terminology, was to “fail forward”, to use each mistake to make myself better. He writes:

One of the greatest problems people have with failure is that they are too quick to judge isolated situations in their lives and label them as failures. Instead, they need to keep the bigger picture in mind. [A successful baseball player] doesn’t look at an out that he makes and think of failure. He sees it within the context of the bigger picture. His perspective leads to perseverance. His perseverance brings longevity. And his longevity gives him opportunities for success.

There’s a reason that one of Get Rich Slowly’s core tenets is: Failure is okay. As I was paying off my debt, I made lots of mistakes. I still do. When I bought my Mini Cooper, for example, I didn’t do everything I could have done to get the best deal possible. That’s okay. I try not to let mistakes drag me down. Instead of focusing on the things I did wrong during that transaction, I remember that in the Big Picture, I’m doing awesome. And I’ll try to use my mistakes to do better next time.

Seven ways to fail forward
In Failing Forward, Maxwell writes that there are seven key abilities that allow successful people to fail forward instead of taking each setback personally. Successful people:

Reject rejection. Successful people don’t blame themselves when they fail. They take responsibility for each setback, but they don’t take the failure personally.
View failure as temporary. “People who personalize failure see a problem as a hole they’re permanently stuck in,” writes Maxwell. “But achievers see any predicament as temporary.”
View each failure as an isolated incident. Successful people don’t define themselves by individual failures. They recognize that each setback is a small part of the whole.
Have realistic expectations. This one is huge. Too many people start big projects — such as paying off their debt — with the unrealistic expectation that they’ll see immediate results. Success takes time. When you pursue anything worthwhile, there are going to be bumps along the way. And remember: The perfect is the enemy of the good.
Focus on strengths. This was one of the biggest lessons I took away from Tim Ferriss’ The 4-Hour Workweek. When I interviewed Ferriss last year, I asked him to expand on this idea. He told me: “Focus on leveraging and amplifying your strengths, which allows you to multiply your results. Fix any fatal weaknesses to the extent that they prevent you from reaching your goals, but perfection isn't the path to your objectives; finding ways to cater to your strengths is.”
Vary approaches. “Achievers are willing to vary their approaches to problems,” Maxwell writes. “That’s important in every walk of life, not just business.” If one approach doesn’t work for you, if it brings repeated failure, then try something else. Maxwell is saying that to fail forward, you must do what works for you, not necessarily what works for other people.
Bounce back. Finally, successful people are resilient. They don’t let one error keep them down. They learn from their mistakes and move on.

These seven points form a firm foundation for dealing with failure in all parts of life, including personal finance. As you pay off your debt, as you learn to invest, as you cut your spending, remember that some failure is inevitable. But you are not your mistakes. Own them, learn from them, and move on. Continue to pursue your goals.

Stepping stones to success
Maxwell peppers his book with anecdotes from celebrities, entrepreneurs, and famous people like Edison and Mozart. He uses their stories to illustrate how successful people don’t let failure trap them; they “fail forward” instead. He also cites scientific research and shares stories from his own life.

Failing Forward is a motivational book, one that helped me break out of a funk and put me in the right frame of mind. Reading this helped me realize — again — that failure isn’t an end. It is, as Maxwell notes, just a stepping stone to success.

I don't like to sleep in

Whenever I sleep in too late it feels like I’ve wasted half the day away. There’s so much that I need to do each day that if I sleep until mid-morning, there’s not enough time to do it all. Plus, when I wake up later in the day, it takes me longer to get ready for the day. It’s a strange phenomenon. So I like to wake up at nice early hour of the day and that way I can get a whole lot more done than I ever could if I slept in until noon.

Tennis is a very fun game to play

I just learned how to play last summer and I’m excited to get back to playing this summer. There is a lot of technique that goes into playing well. You have to get the serve in or you can’t even play at all. It’s best to use your hips on the serve. That way you can get a lot of power and force into it with the torque from your body. One of the hardest things to do is a backhand shot. This is when you turn your racket so the back of your hand is facing the opponent and the racket is on the opposite side from where it usually is. It’s a hard shot because you’re using different muscles than what you’re used to. But with practice, you can become a good player and master all the tough shots.

Elephants walk rather slowly most of the time

Or maybe it just seems like they’re moving slowly because they’re so big. Since their legs are much longer than a human’s, they have more range in the distance they can move with one step. Suppose they make the same angle with their leg as we do with ours. That would mean that with each step they take, they can travel much further than we can with one of our steps. This is because as you draw lines out from any angle, the further out you go, the further apart they get.

Wednesday, July 29, 2009

Going Camping

Next week I have to go camping with my daughter and all of her friends. It is going to be fun. It might be a little bit exhausting trying to keep up with a whole bunch of teenage girls. My spouse and I decided to be the parents to go to keep our daughter from sneaking out to see boys rather than going camping as she said she was. They also wanted to have some boys come with them. We decided that we would be better off making sure our daughter was on the other side of the camp than the boys by just being there. It is a lot easier to control when you are there to watch what is happening. It should be fun.

The other day I was taking this road trip to this lake

While we were driving, we drove past this train that had these propeller type things on it. I thought it was awesome. Apparently they were what they used to make the pin wheel things that make more energy. I had no idea they were that big. I only ever saw them from a distance so I of course thought that they were smaller. It makes a lot of sense that they would be that big. I guess I wasn't thinking about it enough or something to that extent. I can't wait till the next time I see them and I can observe hoe large they are again

Short hair is good to have in the summertime

Long hair also has its benefits though. Short hair is more comfortable during the summer because there's nothing hanging over your neck (if it's that short), so your neck doesn't get as hot and sweaty as it would if it had a layer of hair covering it up. But this exposes it to the sun a lot more, and that's why it is sometimes better to have long hair–to protect your neck from sunburn. Of course, that problem can be easily taken care of if you just wear sunscreen on your neck. There are benefits of having short hair and having long hair, but I would rather have short hair.

Crazy Projects

My family always does crazy projects during the summer, and sometimes not even during the summer. Summer is normally when they happen though because everyone isn't in school and there's time during the week to get a lot done. This summer we are re-shingling our roof. One summer we painted the whole outside of our house, and one time we painted the whole inside of our house. A couple years ago we replaced all of our windows. That project lasted a really long time. We started it, got most of the windows replaced, and then school started. We did a few here and there, but then it was wintertime. So we had to wait for the spring before we could do anymore. So the few windows we had left to install sat in the garage, waiting for their day to be useful. Once spring came, we put in the last few windows and we were finally done. One summer, we decided to remodel our bathrooms. We put in some green tile and put up a few cute decorations in one bathroom. In ano! ther we stenciled quotes on the wall. I wonder what the next big project will be after our roof, and when it's going to be.

Madonna's Biceps | Photoshopped, or Exercise Til U Die?

She is frightening - is she a golem?

(Photo: James Devaney/Wine Image)

Is she trying to turn herself into a living golem through Kabbalistic ritual? Or are these photos altered via Photoshop? Whatever the case, the photos of Madonna’s biceps that are currently circulating are frightening. If she needs shakes to build her arms a bit, payday loans and short term loans are available here.

But here’s the program she’s been following, courtesy of personal trainer Tracy Anderson. Ashley Pearson reports for the London Daily Mail that it is a grueling routine that only those dedicated to exercise should even attempt. Or perhaps a golem.

Please don’t slay me in my sleep, clay monster!

Pearson assumed it would be something like lots of yoga, cardio and muscle work. However, it’s “one hour of cardiovascular exercise and an hour of Pilates-style muscle toning.” The cardio is in the form of dance aerobics, which makes sense for an entertainer like Madonna. It wasn’t so arm-intensive, however. As is common with Pilates, only small arm weights are used.

So where do the freakish arms come from?

Well, apparently Madonna spends 30 minutes working on arms each day. It relies primarily upon isometric exercises, and Pearson describes it as “strenuous, and very painful - even after five minutes. And it does build muscle.” ... click here to read the rest of the article titled "Madonna's Biceps | Photoshopped, or Exercise Til U Die?"

Michael Vick being reinstated into the NFL

I listen to sports radio almost every day, primarily because I like to keep up with what’s happening during the baseball season and it passes the time as a drive from one place to the next. Most of the time, my views on the issues that affect the sporting world are not terribly far we’ve moved from the position that my favorite sportscasters tend to take. Mind you, I’m an original, but it’s perfectly fine to agree with a well-reasoned position.

However, when it comes to Michael Vick being reinstated into the NFL, it is outrageous to me that sportscasters on ESPN radio are talking about Michael Vick and salivating over what team might take a chance on this scatter armed, scatterbrained excuse for a quarterback. Two years ago, before Michael Vick served his time in prison for running a dogfighting ring, he was a great athlete. He has never been an intelligent athlete, but his gifts were plain to see. But now that he’s been in prison, does any team seriously expect that he will be able to just walk onto the playing field and compete at a professional level? That notion is ridiculous.

What bothers me comes in multiple parts: 1) That he got out of a federal prison in less than two years, 2) That NFL commissioner Roger Goodell has decided it it sends an appropriate message to reinstate an animal murderer into the league, 3) that any team would take a chance on a player who hasn’t played in two years and could easily be a public relations quagmire and clubhouse cancer. Michael Vick expects the star treatment, and I’m not certain that two years of hard time will have brought him the humility he needs. Remember, this is not Michael Vick’s first criminal offense. As I recall, he has been brought up on both drug and gun charges. I believe that the Commissioner’s decision already warrants a vote of no confidence in his leadership ability. If a team signs Michael Vick, they deserve to be boycotted in all of their sponsors deserve the same treatment.

I have never been a fan of Michael Vick. Aside from his ability to run and elude tacklers, he has ultimately been a liability to his team because he doesn’t know where his throws are going and is jazzy freelancing off the playbook may actually be a sign that he is unable to learn more complicated place of the National Football League. I don’t care what color he is, black, brown, beige, white, or polkadotted, if he is either unable or unwilling to better himself as a player, I’m not interested in spending a dime of my hard-earned money supporting him. Throw in the fact that he was responsible for the cruel deaths of scores of dogs (living beings), and I’m about to write football off entirely (or at least the NFL) until teams take a unified stand against allowing someone like this to represent their league and be a role model for children. Michael Vick should still be in prison.

Beware claims of magical DNP weight loss

"Illegally Thin" makes wild claims

News of yet another supposed miracle weight-loss drug is sweeping the nation. The drug is called DNP or Dinitrophenol. The book “Illegally Thin,” published in March, talks about DNP weight loss in detail.

The author, who goes by the pen name Random Knight, says the government has been keeping the DNP weight loss drug from us. It also calls the DNP “the perfect fat reduction drug" and that it could end the problem of obesity in America.

Wacky weight loss

Just as people want to find the quickest payday loans, they want to find the quickest way to lose weight. “Illegally Thin” claims users can lose up to a pound per day on this drug. It also claims that numerous clinical trials have proved this drug is perfectly safe.

I find these claims to be hard to believe, especially when paired together. I checked out more about "Illegally Thin," and the clinical trials that the author researches were completed in the 1930s.

And the crowd goes wild

Since this morning, the price of the book “Illegally Thin” has more than doubled at Amazon.com. This morning the book cost $19.95. Now, Amazon says it has only two copies. Both are used copies, one for $45 and one for $51.

So, clearly people are taking the bait. Despite countless drugs proving time and time again that there is no safe, fast, effortless solution to weight loss, “Illegally Thin” is selling like hotcakes.

If you are one of those people who simply must know whether the government really is “unjustly” keeping a totally safe, “perfect fat reduction drug” from us, at least don’t spend $50 on a copy from Amazon. You can still buy the book directly through its official website, www.illegallythin.com, for $19.95.

Anything is possible

I suppose I could be wrong, and this could, in fact, be the miracle drug that “could quickly, safely and easily rid the world of all problems related to excess body fat,” as the book’s website claims.

I’m not arguing with the idea that it’s possible that the government has banned something without proper cause. However, I’m always a little hesitant to believe government conspiracy theories, just because everyone has one, but very few ever turn out to be proven. I am, however, going on record as saying that I do not believe it is possible to safely lose a pound of fat every day. I also don’t believe that it’s possible to lose weight without changing diet or exercise habits.

Healthy weight loss

I am not saying that eating healthy and exercising regularly is the only way to lose weight. It’s true, if you stop eating you will lose weight, regardless of how much you exercise. It is also true that you can eat fatty, sugary, unhealthy foods and still lose weight because of a rigorous exercise schedule.

However, neither of these is good for your body in the long run. “Illegally Thin” claims that it can prove that DNP weight loss is perfectly safe. It doesn’t say anything about it being “healthy,” mind you. I found out that the reason DNP originally was banned in the United States was because users ran the risk of developing fatal fevers. The drug converts energy into heat, causing a rise in body temperature.

When it comes to investing, the way to make the most money the fastest is always the riskiest. Of course, you have more of a chance of losing big that way. With weight loss, the fastest way is also the riskiest. Don’t gamble with your health.

Police crack down on payday loan store thieves

Suspected robbers caught in Spokane

Payday loan store robberies are common. However, catching thieves who rob payday loan stores is not. Apparently, though, the city of Spokane, Washington, has become a little better at catching them, thanks to a string of robberies in the city earlier this year.

July 27, Spokane police caught and arrested two men suspected of robbing a payday loan store about 4:15 PM. Police have now identified the two men whom they believe robbed the Check Into Cash store at gunpoint.

Suspected thieves identified

July 28, Nathan J. Molina, 21, and Daniel I. Neace, 19, will appear in court on charges of first-degree robbery. Police say they arrested the two men after they responded to a call from a Spokane Check Into Cash store.

Molina and Neace were found a few blocks away from the store. Police found them with the help of one of their trusty service dogs. The stolen cash was recovered as was the gun they suspect was used during the robbery.

Past payday loan store robberies

Spokane is no stranger to robberies at payday loan stores. In January, one couple was suspected of committing four, possibly five, different robberies within the city. The couple was also accused of robbing pharmacies and stealing OxyContin.

Because of stakeouts at the pharmacies, the couple was caught. Although that was back in January, it appears payday loan stores in the area have not forgotten the lessons they learned during that time. A story from personal Money store, written shortly after the couple was caught in February says:

Extra security helps

The Check into Cash location in Spokane was able to thwart an attempted robbery by increasing security measures. The stores began keeping their doors locked and requiring customers to show ID before entering the store. One night a man wearing a black ski mask attempted to enter the building, but he ran away after he realized the building was locked.

More security measures

In June, a silent alarm at a payday loan store aided cops in arresting a robber who not only brandished a handgun at a California payday loan store, but took a hostage as well. Because of the silent alarm, the cops arrived before the robber was able to split. Although they had to chase them for a while, they did eventually catch and arrested him.

Police response time is crucial in catching suspected robbers, and silent alarms can greatly aid in this. In the event that police cannot respond quickly enough, security cameras can help identify robbers after the fact.

Protecting employees

Of course, the most important thing to consider when it comes to safety is protecting the people who work in the stores. I have only read of one death that occurred during a payday loan store robbery. An employee who was working alone was shot.

Making sure that more than one person is working inside the store at a time is absolutely crucial to protecting employees. Because there were no witnesses, the gunman involved in the fatal payday loan store robbery was never caught.

It’s getting better

Since I started reporting on payday loan store robberies at the beginning of this year, robberies have held steady, but arrests have become more common. It’s encouraging to see that payday loan store owners are doing a better job of protecting their capital and their employees and police are doing a better job of responding and tracking down robbers.

Spokane isn’t the only city in which a payday loan store robber has been thwarted. Employees and owners of payday loan stores should see this as a positive, hopeful sign that it is possible to defend your store against thieves.

Mary Jo Buttafuoco promotes her book

Making money from tragedy

It’s hard to say how many people have profited off of the whole Joey Buttafuoco, Mary Jo Buttafuoco, Amy Fisher debacle. After all, there have been three made-for-TV movies documenting the once football star and his love triangle with his wife and a teenager. I’d like to see the type of short term personal loan a budding filmmaker takes out to produce “The Amy Fisher Story.”

Of course, the love triangle turned into a lot more when Amy Fisher shot Mary Jo Buttafuoco in the face in 1992. For a long time, Mary Jo Buttafuoco stood by her man. She says she believed him when he said he had nothing to do with Amy Fisher’s actions. However, Mary Jo finally left Joey Buttafuoco in 2003.

Buttafuoco goes on Good Morning America

This morning on Good Morning America, Mary Jo Buttafuoco talked about her recently published book “Getting it Through My Thick Skull.” Mary Jo says she wrote the book because after so many years of marriage, after finally getting out of it and after a discussion with her son, Mary Jo Buttafuoco realized that her ex-husband was a sociopath.

She says she came to this realization after her son Paul called Joey a sociopath. She says she wrote it off at first, but then she decided to look up the definition of "sociopathic tendencies" on the Internet. She says the list of characteristics fit Joey to a T.

Details on the book

The full title of Mary Jo Buttafuoco’s book is “Getting it through My Thick Skull: Why I Stayed, What I Learned, and What Millions of People Involved with Sociopaths Need to Know.” Excerpts of her book on the Internet make it clear that her main goal in writing this book was to protect other people who might be in danger of making the same mistake she did.

She also admits that she wasted many years on her relationship with Joey. She says she stayed so long because of the kids, especially to help them whether the media storm that happened after Amy Fisher shot her in the face. Here is an excerpt from her book that was posted on ABC News:

Joey Buttafuoco is a sociopath. There, I said it. Sad but true. The man who stole my heart in high school—whose large, hardworking Italian family embraced me, who constantly professed undying love and devotion, with whom I shared a million happy, fun times—is a sociopath. I loved my husband with all my heart, raised two great children with him, and fully expected that we would grow old together in our beautiful waterfront home on Long Island, surrounded by family and close friends. I stood steadfast next to this man, ferociously defending him for years after the infamous shooting by Amy Fisher turned our last name into a worldwide punch line. This same man is also the walking, talking dictionary definition of a clinical sociopath. This was a recent, life-changing realization for me—and goes a long way toward answering the one question that seems to fascinate the public more than any other: Why did she stay for so long? It’s clear to me now: I was in thrall for! almost thirty years to a sociopath.

Ironically enough, it was our son, Paul, who brought this inescapable truth to my attention. Two years ago, on Father’s Day 2007, my son and I were discussing Joey’s latest embarrassing stunt—a highly publicized, entirely fake “reunion” between him and Amy Fisher, in which they held hands, kissed for the cameras, and claimed they were “getting back together.” Joey and I were no longer married, but his actions continued to affect us all. I could only shake my head and wonder, as I had countless times over the years, When is he going to grow up? Why is he making such a fool of himself? When will he ever get it?

“Never,” Paul said flatly. “He’s never going to get it. He’s a sociopath.”

My first reaction was denial. “Sociopath” is a scary-sounding word. I thought a sociopath was a crazy person, a nut job, someone who couldn’t function in society, or a charming but cold-blooded killer. The word has been used so often to casually describe extreme cases—like O. J. Simpson, Scott Peterson, and Ted Bundy—that the true nature and scope of its meaning eluded me. But Paul’s calm certainty and the discussion that followed nagged at me long after we moved on to other topics. The word reverberated in the back of my mind for the rest of the day. Late that night, when all our company had gone home, I went to my computer and Googled the words “sociopath traits.”

Otty Sanchez

Otty Sanchez is going to go down in history as one of the sickest people perhaps ever on record. Police were called to her residence, where her 13 week old infant was discovered dead at the scene. San Antonio police have also revealed that the body had been mutilated, and partially eaten. Police from San Antonio, Texas, are still trying to discover why, but she has had a history of mental illness. Mo matter the frustration parents feel with their children, infanticide is among the most unspeakable taboos. Another high profile case was that of Andrea Yates, who is currently in a state mental institution. No amount of cash advances could make one fathom how Otty Sanchez could do that.

Trustee Sues Madoff's Wife For Nearly $45M

Trustee Irving H. Picard spelled out his claims in a lawsuit against Ruth Madoff in U.S. Bankruptcy Court in Manhattan. He said Madoff for decades lived “a life or splendor” using money that belonged to customers of her husband’s investment firm.

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Gates 911 Call

The aftermath of the arrest of Henry Louis Gates, Jr. saw some very negative fallout and accusations of racism, and there were repeated requests to hear the Gates 911 Call. The Gates 9/11 call has been released, and there isn’t mention of the race in the call. Gates was trying to get into his own home after returning from a trip, and the door was jammed. In the process of trying to gain access, police were called thinking it was a burglary. Gates apparently became hostile to officers, and was booked for that reason, charges having later been dropped. No suits have been filed, but no one needs payday loans to get the Gates 911 Call transcripts.

Helping Out in a Health Crisis

Sometimes I look at the past year and wonder if all the good luck I’ve had in life is turning out to be a loan that’s been called in by the bank. Nothing bad has happened to me personally other than losing some money in the stock market, but I feel like misfortune has been getting closer to me, in the form of bad things happening to my friends and family. In addition to my father’s brain tumor and friends losing their jobs and getting divorced, I’ve had a cousin and a friend diagnosed with very serious cancers. Things were very scary for a while with both of them. Now, miraculously, things are looking pretty good. But none of this came without a cost, both emotional and financial.

Both my friend and my cousin have health insurance, one through an employer and one privately purchased as she is self-employed. But that didn’t mean their treatments were affordable. In one case, there was chemo and radiation and major surgery. In the other, there were chemo treatments, a special diet, and a lot of long-distance drives to doctors. Both had to take time off work, unpaid in at least one case. Both of these people have spouses, but neither were making much money. Both couples also had another dependent, either a child or an aging parent. What all this comes down to was that even with insurance, the illness put them in debt.

But here’s the upside to this depressing story: people helped. Both my cousin and my friend knew people who organized fund-raising events for them. They were each fortunate enough to have a lot of family and friends who could donate their talents or their services or their products or convince others to do so. In each case, a whole community came together and donated money and showed their support and love in a truly special way. They raised thousands of dollars, but it ended up being about more than just the money, somehow.

All this reminded me of an article I bookmarked months ago: Helping Out With Cash: A Delicate Art (which was an follow up to an earlier article Not Laid Off? How to Aid the Less Fortunate. Both of these articles give some excellent suggestions on how to handle the delicate issue of offering help to someone who may need it, but feel awkward about asking for it or accepting it. It’s a more and more common issue these days. I just hope my usual sphere of good fortune will return and no one else I know will need this kind of assistance!

Tuesday, July 28, 2009

Rental Property vs. REZ Residential Index ETF

Many people see owning a rental property as a ticket to prosperity. But wouldn’t it be nice if you could simply own an interest in a rental property, but not have any of the accompanying hassles? I’m far from an expert in this field, but let’s take a look at an REIT that invest in residential real estate.

What is an REIT?
REIT stands for Real Estate Investment Trust. From the National Association of REITs website:

A REIT is a company that owns, and in most cases, operates income-producing real estate such as apartments, shopping centers, offices, hotels and warehouses. Some REITs also engage in financing real estate. The shares of many REITs are freely traded, usually on a major stock exchange.

To qualify as a REIT, a company must distribute at least 90 percent of its taxable income to its shareholders annually. A company that qualifies as a REIT is permitted to deduct dividends paid to its shareholders from its corporate taxable income. As a result, most REITs remit at least 100 percent of their taxable income to their shareholders and therefore owe no corporate tax.

Since all the REIT income usually “passes through” straight to the shareholders, you are getting relatively direct exposure to real estate. You’re not investing in raw materials, a homebuilder, or some other derivative.

REZ Residential ETF
The iShares FTSE NAREIT Residential Plus Capped Index Fund (ticker REZ) is an ETF that tracks the FTSE NAREIT All Residential Capped Index. Here is the breakdown by industry breakdown and also the top 10 holdings.

As you can see, this is not the same as owning a single-family house, or even a bunch of single family houses. The fund holds interests in apartment complexes, healthcare facilities such as seniors housing communities and skilled nursing facilities, and also self-storage companies. For example, you can search online through the apartment complexes owned by Equity Apartments.

The annual expense ratio for REZ is 0.48%, which is on top of the built-in costs spent by each individual REIT. iShares also has ETFs focused on the different sectors such as Retail (retail stores, shopping malls) and Office/Industrial (office and industrial buildings).

ETF Advantages
One obvious advantage of owning an ETF instead of a single rental property is simplicity. You don’t have to spend time and effort dealing with finding tenants, maintenance issues, or problems with local government. You don’t have to search for properties to buy, negotiate prices, or obtain financing. You also don’t have to ever worry about keeping up cashflow, as there are no mortgage payment due each month.

Then there’s liquidity. If you need to sell, REZ has decent share volume so you can just type in a sell order and you’re done. You pretty much know the market price at all times.

Which One Is Better?
Here’s the tough question. Which will have the better return? With a single property, you are looking at monthly cashflow and property appreciation (plus possible tax benefits). With the ETF, you have your quarterly dividends and share price appreciation.

REZ currently has a current distribution rate of 5.11% based on its last quarterly dividend of 0.3003 cents per share, while the dividend yield listed on Yahoo! is 8.84% based on TTM (sum of all dividends paid out in the trailing twelve month period). According to the iShares page the Price/Earning ratio was 33 and the Price/Book ratio was 1.73 as 6/30/09.

The trailing 1-year total return of REZ is -39.64% according to Morningstar. (Too new for older numbers.) However, depending on how much your rental house was leveraged, many private investors could have done much worse. If you put $10,000 down on a $100,000 house and the house dropped just 5% in value, you would have essentially lost 50% of your $10,000 as well. I’m not sure what the total leverage of the REITs in this ETF are.

Also, we have to go back to the fact that this REIT doesn’t hold a bunch of detached single-family houses. Healthcare facilities seem like they would be a good source of income in a growing field. However, they could also be susceptible to political changes in Medicare rules.

I think its safe to say that any individual property could do worse or better than REZ. Perhaps a better question is how much you value diversification. Instead of putting your money into one property in one area, with an ETF you are instead owning a slice of thousands of different properties across the country. If you have high confidence in your abilities to select and manage a single property, that might be the better way to go.

Cash For Clunkers Program 2009 | Over Before You Know It?

If you can afford it in the first place

Does this qualify as "drivable?" (Photo: blog.glodb.com)

Don’t get me wrong, I’m all for the idea of the Cash For Clunkers Program 2009. However, I simply don’t see it being sufficient to help many of the consumers that have been holding on to older, less fuel efficient vehicles. There’s typically a reason they hold on to their old cars, people: they can’t afford new ones. If you think $3,500 (only some receive the federal maximum of $4,500) is enough to make expensive new fuel efficient cars affordable, you haven’t been car shopping lately. A payday loan or cash advance may help with a down payment, but what can you do about the monthly payments?

Nevertheless, Americans still appear eager to buy cars they can’t afford. Good work, Cash For Clunkers program 2009!

A clunker of a program

Brent Snavely reports for the Detroit Free Press that Cash for Clunkers has increased the overall excitement about car buying, if the crowds in showrooms are any indication. Sure, there are questions about how long this ride will last and whether the program is too complicated for its own good. Plus, it’s uncertain so far just how many new car sales have come from the Cash for Clunkers program 2009.

One of the things we know from the 136-page outline of the plan is that the program will last until November 1 or until the $1 billion Congress allotted the Cash for Clunkers program 2009 disappears. There are also very specific regulations for dealers in terms of how they must disable the engines of old vehicles, but the dealers are still hopeful that the program’s overall impact will be to boost sagging sales. ... click here to read the rest of the article titled "Cash For Clunkers Program 2009 | Over Before You Know It?"

Jamba Juice Buy One Get One Free Coupon

Jamba Juice just sent me this buy 1 get 1 free coupon. Expires 8/9. Good for those overheating states right now! Yes, it is overpriced fruit.

Transitional Care Cuts Hospital Re-Entry Rates, Costs

A study published earlier this year finds 1 out of 5 older patients who are discharged from a hospital will return within a month, costing Medicare about $17 billion a year. A program in Philadelphia assigns nurses to follow up with discharged patients in order to prevent readmission.

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Monday, July 27, 2009

JK Wedding Video Approaches 10,000 Views

This is a test

Bikini-Clad Morgan Haley Arrested For Carjacking, Assault

Hot time, summer in the city

Morgan Haley, aka Bikini Bandit (Photo: commercialappeal.com)

It takes enterprise to make it in the world today. With such a tight economy, whatever you can bring to the table that sets you apart from the competition is necessary. People are more hesitant than ever to fork over their money freely, and as it is there are many who are looking to services like pay day loans and secured loans for assistance in making ends meet when calamity strikes.

Apparently, even people who have decided that obtaining material wealth via illegal means (which I definitely do not endorse) is a good course of action have taken to trying to stand apart from the maddening crowd. Morgan Haley attempted a carjacking with a natural weapon she must have figured would disarm drivers and help her keep her cool during the summer heat of Memphis, Tennessee. Her weapon was… a bikini.

But the driver was… a woman

It didn’t matter, however. Yolanda Jones reports for Commercialappeal.com that Morgan Haley, 24, has been arrested and taken to jail. Her bond was set at $6,000. Her crime consisted of forcing a female driver from her car, then she used that car to drive to an RV dealership, where she attempted a robbery of the business. The charges include carjacking charges and “two counts of assault by physical fear,” according to Jones. ... click here to read the rest of the article titled "Bikini-Clad Morgan Haley Arrested For Carjacking, Assault"

Mary Jo Buttafuoco Says Joey Had Sociopathic Tendencies

Mary Jo Buttafuoco promotes her book

Mary Jo Buttafuoco, image from The Hollywood Gossip online.

In an interview on “Good Morning America” today, Mary Jo Buttafuoco talked about her book, her ex-husband Joey Buttafuoco’s sociopathic tendencies and, of course, Amy Fisher. I predict it’s the first in a long string of interviews to promote her book.

Mary Jo Buttafuoco’s book, “Getting It Through My Thick Skull,” came out last week. Her purpose in writing the book, she says, is to share the sociopath definition and help others who may be involved with someone who has sociopathic tendencies.

Taking it in the skull

There’s no need to take out an installment loan to buy Mary Jo Buttafuoco’s book; it’s on sale at Amazon.com for $16.47. ABC News reports:

It’s Joey whom Buttafuoco takes aim at in her new book, “Getting It Through My Thick Skull.” The title, she said, came from the way her mother always referred to her “thick skull” when citing her stubborn nature, and a joke she made in the hospital about how her thick skull finally served a good purpose.

The full title of the book is “Getting It Through My Thick Skull: Why I Stayed, What I Learned, and What Millions of People Involved with Sociopaths Need to Know.” The sociopath she refers to, of course, is her ex-husband. Joey Buttafuoco says “he would prefer to be diagnosed as a sociopath by a doctor, rather than his ex-wife and felt ‘victimized’ by the accusation.” ... click here to read the rest of the article titled "Mary Jo Buttafuoco Says Joey Had Sociopathic Tendencies"

The Best Way to Make Extra Principal Payments on Your Mortgage?

If your like me you make extra principal payments to your mortgage.

My wife and I are currently focusing on prepaying one of our mortgages with the highest interest rate. The mortgage is a 30yr fixed @ 6.5% administered by Chase on House #2 (rental). We currently contribute an extra $75/mo for additional principal payments taken out with each monthly auto-debit mortgage payment on the mortgage as well as make additional separate principal payments periodically.

After a period of time I began to wonder how Chase calculates the monthly interest payment. No matter when I contributed a lump sum (of say $1,000) it seemed as though the amount interest calculated on the next monthly mortgage payment wasn’t changing as much when principal payments were made early in the month. I was expecting a sharper drop in the amount of interest paid if I made an extra principal payment at the beginning of the month versus the end of the month (ie. 30days of interest savings). I decided to dig into this a bit to see exactly how this was working.

First I started digging through my mortgage closing papers looking for an explanation of how the mortgage interest was calculated. I couldn’t find much other than interested appeared to be calculated monthly, not daily like I was expecting. That means the interest portion of my mortgage payment is calculated based on a balance once per month, not based on a daily balance apparently like my equity line.

So I tried to validate this with recent transactions on my mortgage. Here is a table of the transaction history on my House #2 Chase Mortgage:

Date	Description	Payment	Principal	Interest	Ending Loan Balance
7/7/2009	PRINCIPAL PAYMENT	$75.00	$75.00	$0.00	$89,534.21
7/7/2009	PAYMENT	$817.45	$171.04	$486.31	$89,609.21
6/26/2009	PRINCIPAL PAYMENT	$6,500.00	$6,500.00	$0.00	$89,780.25
6/2/2009	PRINCIPAL PAYMENT	$100.00	$100.00	$0.00	$96,280.25
6/1/2009	PRINCIPAL PAYMENT	$75.00	$75.00	$0.00	$96,380.25
6/1/2009	PAYMENT	$817.45	$134.16	$523.19	$96,455.25
5/27/2009	PRINCIPAL PAYMENT	$100.00	$100.00	$0.00	$96,589.41
5/1/2009	PRINCIPAL PAYMENT	$75.00	$75.00	$0.00	$96,689.41
5/1/2009	PAYMENT	$809.24	$132.49	$524.86	$96,764.41
4/27/2009	PRINCIPAL PAYMENT	$1,500.00	$1,500.00	$0.00	$96,896.90
4/17/2009	PRINCIPAL PAYMENT	$100.00	$100.00	$0.00	$98,396.90
4/1/2009	PRINCIPAL PAYMENT	$75.00	$75.00	$0.00	$98,496.90
4/1/2009	PAYMENT	$809.24	$122.75	$534.60	$98,571.90

So then I studied these Loan Balance after each transaction and calculated an interest payment based on that loan balance using a monthly interest calculation. Annual Interest Rate = 6.5% / 12 (monthly payments) = 0.54167% Monthly Interest Rate. The Calculate Monthly Interest Colum is equal to the ending loan balance x 0.54167%.

Date	Description	Payment	Interest	Loan Balance	Calculated Monthly Interest
7/7/2009	PRINCIPAL PAYMENT	$75.00	$0.00	$89,534.21	$484.98
7/7/2009	PAYMENT	$817.45	$486.31	$89,609.21	$485.39
6/26/2009	PRINCIPAL PAYMENT	$6,500.00	$0.00	$89,780.25	$486.31
6/2/2009	PRINCIPAL PAYMENT	$100.00	$0.00	$96,280.25	$521.52
6/1/2009	PRINCIPAL PAYMENT	$75.00	$0.00	$96,380.25	$522.06
6/1/2009	PAYMENT	$817.45	$523.19	$96,455.25	$522.47
5/27/2009	PRINCIPAL PAYMENT	$100.00	$0.00	$96,589.41	$523.20
5/1/2009	PRINCIPAL PAYMENT	$75.00	$0.00	$96,689.41	$523.74
5/1/2009	PAYMENT	$809.24	$524.86	$96,764.41	$524.14
4/27/2009	PRINCIPAL PAYMENT	$1,500.00	$0.00	$96,896.90	$524.86
4/17/2009	PRINCIPAL PAYMENT	$100.00	$0.00	$98,396.90	$532.99
4/1/2009	PRINCIPAL PAYMENT	$75.00	$0.00	$98,496.90	$533.53
4/1/2009	PAYMENT	$809.24	$534.60	$98,571.90	$533.93

Its readily apparent that the monthly interest calculated is based on the ending balance of after the last transaction of the month before the mortgage payment is applied. I have seen no evidence of adjustments made to the loan balance for principal payments that are applied anytime before the time that the interest is calcaulated. Perhaps these adjustments are made at the time of payoff.

This means a couple things to me:
1) Im wasting a month’s worth of interest on that additional monthly principal payments I am making with my mortgage payment. Rather that contributing the extra $75 principal with my mortgage payment I should be making that payment right before the next mortgage payment and earning interest on that money somewhere else for the month.
2) For seperate additional principal payments I see no advantage of sending in a principal payment before the last possible day of the month - might as well earn interest elsewhere because the mortgage company treats them the same regardless of whether they are received on the 1st or the 30th of the same month.

Banker Says – Carry Debt to Improve Credit Score

Even a banker’s advice could be totally wrong.

I can’t believe what I heard, but a banker told me that carry a credit card balance can improve my credit score. In fact, there are many people who give the same advice – don’t pay your credit card balance in full to raise your score. So today, let’s clear up all the smoke. Pay off your credit card balance regardless of what people say. Let me explain why.

It’s true that having a balance and showing that you can pay it off can increase your credit score, but you can have the same effect even if you pay off the balance in full every month. Below is an illustration of a typical credit card usage pattern:

July 1 – Groceries for $29, Balance Owed is $29
July 4 – Lunch for $11, Balance at $40
July 8 – Statement Comes with Balance of $40, Due July 20
July 12 – Dinner for $69, Balance at $109
July 18 – Gas for $38, Balance at $147
July 20 – Pay $40 for Amount Due, Balance at $107

As you can clearly see, this person’s balance was almost never at $0. Therefore, it would show that there is a balance no matter when the credit card company decides to report your amount owed to the credit agencies. In fact, paying off your balance in full will likely decrease your overall debt to credit ratio, raising your score.

Two caveats though:

You Have to Use Your Credit Card – Part of your credit score is based on the fact that you show ability and commitment in paying off your debt on time. If you never use your card and your debt is always nothing, your score will suffer as a result.
Pay it Off in Full After the Statement Comes – Some people like to pay the balance off the night they make a purchase. These people will almost always show a balance of $0, and credit agencies will never know that you have the ability to pay off balances because you never have any to begin with. Credit agencies calculate your score based only on the information available on your credit report. If there are no records, there is no way they will know that you can potentially pay off loans even your cash position makes Bill Gates jealous.

While carrying a credit card balance may make sense when you first listen to the advice, it clearly isn’t logical when you sit down and think about it. Actually, I will still recommend paying your balances off even if paying in full affects your score negatively because it’s the only responsible way to manage your finances.

Stop listening to the wrong advice (no matter where they work at) and pay off your balance in full to the best of your ability.

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