I’ve said it before, and I will say it again: dear media, please quit obsessing with the credit score. Last week’s episode of the NPR program Marketplace Money was about credit and credit scores. One of the stories was The power of FICO. It featured Pete Deibel of Winter Park, FL (emphasis added by me): […]
Latest Blog Posts
Waiting For a No Cost Mortgage Refinance
Ever since late last year, there have been numerous news reports about the mortgage rate going to 4.5% or the mortgage rate reaching historical lows. The headlines read Treasury mulls plan to lower mortgage rates to 4.5% (CNN, 12/4/2008), Mortgage Rates Fall to Another Record Low (Fox, 4/2/2009), and so on. Then how come I […]
Upselling at the Post Office
I went to the post office to mail my tax returns yesterday. While the postal clerk was placing the certified mail stickers and printing the receipt, I noticed a printout under the glass on the counter. The title the page said FY 2009 Mystery Shop Script. It’s the instructions to the clerks for what they […]
What Exactly Do You Do with Something That Could Be the Deal of a Lifetime?
Although it’s April Fool’s Day, this post is not a joke. My favorite mutual fund company Vanguard started a blog at vanguardblog.com. A team of five investment and communication professionals write for the blog. I have high hopes for it but I wish it were better. In one article, Forecasts and second marriages, Craig Stock […]
Just Say No to Fee Surcharges
I was short on cash last week. There’s an ATM here in my office building. It’s from a credit union near us. Several times a year, I see this credit union promoting their services at a table near the cafeteria. Credit unions have a reputation for being “the good guys.” They are said to play […]
Sunk Cost and Getting Your Money’s Worth
I went skiing last Saturday. The condition wasn’t great. It was windy and cold. I knew that before I went, because I read the weather forecast. I went only because I bought a season pass last year before the season started. If I didn’t have the season pass and a friend offered me a free […]
A Low Stock Price Is Neither Cheap Nor Less Valuable
I heard a comment on a New York Times Weekend Business podcast saying that a share of GM stock can’t buy a gallon of gas for a Chevy and a share of GE stock can’t buy two energy-efficient compact fluorescent bulbs (as of a week and half ago before the bounce back). While true, I […]
Bartering and Taxes
While catching up on old news, I heard a story about bartering on the Marketplace Money podcast. It’s called a Time Bank. Basically you do something for someone else and earn some Time Dollars. Then you use your Time Dollars for services you want from another person. It’s an indirect bartering system because direct bartering […]
Retirement Plans Galore: 401(a), 401(k), 403(b), 457, SEP, SIMPLE
A reader sent me an e-mail some time ago about the interplay between a 401(a) plan and a Roth solo 401(k) plan. You probably heard of 401(k), 403(b), and 457 plans. The names of these plans come from the section numbers in the tax code which specify the rules for these plans. 401(k) plans are […]
Tax Deductions: Above-the-Line, Standard, Itemized, and Miscellaneous
I wrote about tax credits last week. This time let’s look at tax deductions. First a recap of the difference between a tax credit and a tax deduction: A tax credit directly reduces your tax dollar for dollar. If you are supposed to pay $5,000 in tax, a $500 tax credit reduces your tax to […]