http://www.moneyhowto.com/ ru MoneyHowTo.com Global Investors Community. Making Money Instructions DataLife Engine http://www.moneyhowto.com/2008/07/04/how_the_rich_spend_their_free_time_stressed_and_busy.html http://www.moneyhowto.com/2008/07/04/how_the_rich_spend_their_free_time_stressed_and_busy.html Leisure class gives way to workaholic elite scrambling to maintain their place in life

Being rich used to get you into the leisure class. Money meant freedom -- from work, money worries, household chores and screaming kids (via boarding school).

Now, however, the wealthy seem to be as besieged as ever. The leisure class has given way to what I call the workaholic wealthy -- an elite of BlackBerry-crazed, network-obsessed, peripatetic travelers who have to keep scrambling to maintain their place in life.

According to research by Daniel Kahneman, the Nobel Prize-winning behavioral economist, quoted in an article in the Washington Post, "being wealthy is often a powerful predictor that people spend less time doing pleasurable things and more time doing compulsory things and feeling stressed."

People who make less than $20,000 a year, for instance, spent more than a third of their time in passive leisure, like kicking back and watching TV. By contrast, those making more than $100,000 a year (I would call them affluent, not wealthy), spent less than a fifth of their time in passive leisure. "The richest people spent nearly twice as much time as the poorest people in leisure activities that were structured and often stressful -- shopping, child care and exercise."

In short, stereotypes about the leisure class no longer hold true. "In reality," Mr. Kahneman and his colleagues wrote in a paper they published in the journal Science, "they should think of spending a lot]]> gdz Fri, 04 Jul 2008 04:59:29 -0500 http://www.moneyhowto.com/2008/05/22/build_wealth_by_breaking_8_rules.html http://www.moneyhowto.com/2008/05/22/build_wealth_by_breaking_8_rules.html Being "upside down" is usually a negative term when applied to financial matters, but multimillionaire Robert Shemin believes that sort of thinking is ... well ... upside down.

Shemin, author of "How Come That Idiot's Rich and I'm Not?" feels there are two positions when it comes to wealth: right side up and broke, or upside down and rich. Shemin prefers upside down. The best way to build and maintain wealth, maintains Shemin -- once considered the "least likely to succeed"-- is by breaking the rules you think and hear about when building wealth.

Following are eight rules worth breaking -- in upside-down order -- and what Shemin and other financial gurus have to say about them.

Diverging from the traditional mind-set may put you on the right course to riches.

8. Before investing, learn enough so that you're not going to make any mistakes
The problem here: Fear causes inaction, Shemin says. "Everything in life has a risk and a cost for doing it, and a risk and a cost for not doing it. Rich idiots focus on the risk of not doing something." In his experience, most people don't get started on stock market or real estate investing, or in estate planning, because they're so scared of making mistakes, they're overwhelmed.

"Of course you should expect to make mistakes when you start investing (or any time)," agrees Ramit Sethi. "But if you start with small amounts, any mistakes won't hurt you too bad. Plus, any mistakes can]]> gdz Thu, 22 May 2008 18:29:58 -0500 http://www.moneyhowto.com/2008/05/07/12_investment_mistakes_couples_make.html http://www.moneyhowto.com/2008/05/07/12_investment_mistakes_couples_make.html If two heads are better than one, do couples have an advantage when it comes to investing?

The reality is that it's difficult enough for two people to share a closet, much less money styles, financial priorities and investing strategies.

As a result, there are a number of couple-related investing errors that planners and attorneys see again and again.

1. Too many accounts
With a lot of couples, investment accounts are spread over a number of banks, brokerage houses and financial institutions.

Result: "It's a little out of control," says Karen Altfest, vice president of New York-based L.J. Altfest & Co. "It's too much for most people to handle."

Andrew Tignanelli, CPA, CFP and president of Financial Consulate Inc., in Baltimore, sees this often when only one spouse is managing the investments. "What happens to your spouse if you're not around, and you have money in seven or eight places?" he says.

When he poses that question to couples, either the light finally dawns or one spouse produces a notebook with directions on where all the money is located, he says.

Still, for a partner who is not used to dealing with investments, going on a financial scavenger hunt is]]> gdz Wed, 07 May 2008 18:51:57 -0500 http://www.moneyhowto.com/2008/05/01/shift_your_savings_strategy_for_inflation.html http://www.moneyhowto.com/2008/05/01/shift_your_savings_strategy_for_inflation.html If prices keep rising, you may need to think differently about a few things. Have you seen the price of milk lately? It's up 13% since last year.

The pain isn't only at the supermarket, however. Hospital costs are up 8%; gas, 33%; and prices overall climbed 4% (vs. less than 3% annually over the past decade). Plus, with the Fed pumping money into the economy, the price pinch probably isn't improving soon.

No wonder inflation ranked as the No. 1 financial worry in a recent CNN/Money poll. While we're nowhere near the 1970s - yet - it's a good time to review how inflation changes the rules.

Rule 1: You can lose by saving

A one-year CD now pays 1.97% a year on average. At 4% inflation, you lose 2% a year before taxes. Best strategy: Shop for top savings rates. Keep bond and CD maturities short.

Rule 2: Stuff beats paper assets...on paper

When inflation is high, tangible goods - gold, oil, gems, art, wheat, even canned tuna - tend to have an edge over securities, especially bonds.

Reason: Because of their rarity, beauty or usefulness, these items have an intrinsic worth that doesn't]]> gdz Thu, 01 May 2008 18:41:40 -0500 http://www.moneyhowto.com/2008/04/23/5_steps_you_can_take_to_make_your_salary_soar.html http://www.moneyhowto.com/2008/04/23/5_steps_you_can_take_to_make_your_salary_soar.html It could be that managers and workers have a different take on what it means to be a top performer, and so they disagree on who should get the corporate spoils.

Most workers think that if they know what their job is and do it well, hitting all their goals on time and within budget, then they're doing a good job and deserve to have raises and bonuses heaped upon them. That would be true in a pure meritocracy. But in the real world, the politics of compensation are not that simple. Here are five keys to increasing your salary and benefits:

1. The boss's priorities rule

From the boss's perch, the biggest raises and plumpest perks go to the people he values the most and doesn't want to lose. These are the people who help him to get things done, meet his goals, and generally look good. In short, your performance and the raise it garners are less about you and all about him.

This is why leadership expert Rebecca Shambaugh, author of It's Not the Glass Ceiling, It's the Sticky Floor, says that your campaign for a bigger raise starts with finding out what your boss values. Talk to him about it both formally and informally. And talk to people who know the important things happening at your company and your boss's role in them.

"Executives value people who fit in well with them and with the team, who understand the culture and can help them get the results they want," she says. "So find out what's on the top of your boss's mind, and]]> gdz Wed, 23 Apr 2008 18:32:55 -0500 http://www.moneyhowto.com/2008/04/09/5_questions_to_ask_before_renovating_a_home.html http://www.moneyhowto.com/2008/04/09/5_questions_to_ask_before_renovating_a_home.html Spending on remodeling is expected to reach $316 billion this year alone and the number is still climbing, according to the Home Improvement Research Institute. So make sure you know exactly how big a renovation you can afford and whether it justifies the time you intend to spend in your revamped home.

The Nest, a home-improvement Web site, says before making any big changes to your home you should ask yourself these big questions:

1. How long do I plan to stay in my house after the renovations? The longer you plan to live there, the more creative you can be. But if you're planning on selling the house in the next five years, keep potential buyers in mind with your choices. In the latter case, for instance, go with neutral colors in the kitchen and bathroom, and consider maple cabinets. Some people hate oak, others hate cherry, but the majority can live with maple.

2. Am I doing just cosmetic fixes or am I ready for an all-out overhaul? It's OK to make small changes one at a time, but think long-term about the next step. For example, if you're buying a new sink, buy one with enough holes on the deck for the faucet, sprayer and soap dispenser you might want to add on later. (Cutting more holes into stainless steel or porcelain after the sink is installed is an onerous job you don't want to get stuck with.) And if you know you're going to buy new cabinets later, don't replace the countertop with expensive granite now. The chances of reusing it are very slim -- either it breaks]]> gdz Wed, 09 Apr 2008 18:53:04 -0500 http://www.moneyhowto.com/2008/04/08/a_todo_list_for_april_tax_filers.html http://www.moneyhowto.com/2008/04/08/a_todo_list_for_april_tax_filers.html Payment strategies, last-minute tax shelter, and more

Are you a procrastinator? If you live in Chicago, New York or Houston, chances are you'll be among the millions who file a tax return in the few days before April 15, according to TurboTax's annual ranking of the top 10 procrastinating cities in the U.S. Los Angeles didn't quite make it, coming in at No. 12.

Since you're making a concerted effort not to be one of the last to file, let's see what you can do to make your tax experience a bit easier this month.

Give Up and Move On

You're having a hard time getting all the information you need. Partnerships and pass-through entities which have your money are late sending K-1s to you. Forms 1099 you received were wrong or you're still missing some. Same with some straggling W-2s.

Chill out, and file an extension. Use Form 4868 to get an automatic six-month extension to file your tax return.

Use Form 7004 to get an automatic six-month extension to file your partnership (Form 1065), gift tax]]> gdz Tue, 08 Apr 2008 18:36:48 -0500 http://www.moneyhowto.com/2008/03/28/ten_money_lessons_from_march_madness.html http://www.moneyhowto.com/2008/03/28/ten_money_lessons_from_march_madness.html Betting isn't the only money issue surrounding March Madness, the NCAA Division 1 Men's Basketball Championship.

The traits of the tournament's best teams can make your personal finances worthy of winning a trophy.

Here are lessons about money you can learn from watching the games:

1. Good Coaching Creates Success

The teams that make it to the tournament have talent, but they also have good coaching. The coaches are able to get the most out of the talent and make them better as a team than they are as individual players. They also instill goals and a winning attitude in the players to achieve the most that they can.

You should also have a personal finance coach, whether that be someone actively helping you out or an author that motivates you to do the right things to get your finances in order through books and other media.

There are many to choose from, but having someone to coach you along the way will make the financial]]> gdz Fri, 28 Mar 2008 18:39:17 -0500 http://www.moneyhowto.com/2008/03/28/3_good_reasons_to_feel_fiscally_optimistic_right_now.html http://www.moneyhowto.com/2008/03/28/3_good_reasons_to_feel_fiscally_optimistic_right_now.html Consumer confidence plunged to a five-year low Tuesday as tight credit markets, rising prices and worsening job prospects weigh on American consumers. But Gerri Willis is here to give us reasons for optimism.

1. Low mortgage rates

This is good news for homeowners who want to refinance into a fixed rate loan.

Today, the traditional 30-year mortgage rate is less than 6%, according to the Mortgage Bankers Association. And if you have an adjustable-rate mortgage, Fed rate cuts will make your adjustment less painful.

If you have a home equity line of credit, you will also see your interest rate decline. A majority of HELOCs are tied to the prime rate. And those rates have fallen as the fed cuts rates.

And there's also good news out there if you are in the market for a jumbo loan. Traditionally, rates on jumbo loans - mortgages up to $417,000 - were high because Fannie Mae and Freddie Mac couldn't purchase loans over that amount.

But thanks to the economic stimulus package that passed in congress, that limit is raised to $729,000]]> gdz Fri, 28 Mar 2008 18:28:35 -0500 http://www.moneyhowto.com/2008/03/24/its_spring__time_to_clean_up_your_financial_house.html http://www.moneyhowto.com/2008/03/24/its_spring__time_to_clean_up_your_financial_house.html Spring has sprung, an old children's poem goes, which means many people are knee-deep in spring cleaning -- scrubbing floors, clearing out the garage and tossing all the clutter that's gathered over the winter months.

It's also an ideal time to consider sprucing up your financial life.

It's not just about tossing out old paperwork; it's about doing the regular maintenance to ensure that you're getting the most out of every dollar. A regular checkup can help you get -- and stay -- on track with your finances.

Spring is an ideal time to schedule in a few hours for your financial review. Clearing out the financial clutter won't just make your life simpler; it could save you some serious cash. Here are five good areas to get started.

Banking

● What to do: Consolidate accounts, streamline with online statements and bill pay, toss old statements and checks.

● Time involved: A solid hour will get the ball rolling, but you may need to follow up during the next few]]> gdz Mon, 24 Mar 2008 19:19:41 -0500 http://www.moneyhowto.com/2008/03/22/build_your_dream_house_now__costs_are_down.html http://www.moneyhowto.com/2008/03/22/build_your_dream_house_now__costs_are_down.html With home values tumbling and the mortgage market still in crisis, you'd think that Billie and Rodney Wylde would shelve their plans to build their North Carolina dream home - at least until the market stabilizes.

Not a chance. The thirtysomethings are set to pour the foundation on a 2,100-square-foot farmhouse with a wraparound porch in East Bend, a few miles from where they currently live. Estimated construction cost: $140,000.

The couple hope to be able to move in as soon as November. "All the media talk about is this crisis," says Billie, an elementary school guidance counselor. "But it's actually a very good time to build."

She's right. Behind the dark clouds hanging over the housing market is a very compelling silver lining: The cost of building the home of your dreams is coming down. "If one or two years ago it cost you $300,000 to build a custom home, today it should cost tens of thousands of dollars less," says Jim Haughey, chief economist at Reed Construction Data.

Why? With new-home demand drying up, the price of some construction materials has started to sink like a poorly laid foundation. Framing lumber is now 18% cheaper than it was 18 months ago, while drywall is selling for 40% less.

And because overextended developers picked up too much land during the bubble - and are motivated to]]> gdz Sat, 22 Mar 2008 14:00:05 -0500 http://www.moneyhowto.com/2008/03/20/is_your_nest_egg_up_to_par_with_the_truly_wealthy.html http://www.moneyhowto.com/2008/03/20/is_your_nest_egg_up_to_par_with_the_truly_wealthy.html How much of a nest egg do you need to join the true elite?

The tool-and-die man figured he was retiring rich. After selling an Arizona business that he'd built up over 30 years, he retreated to a 30-acre spread on the coast of Oregon and handed a $10 million investment portfolio to a big, New York-based private-banking outfit. The bank, however, seemed less than impressed. Over three years, he says, he received nary a phone call from the reps in the local office. "There was no 'How are you doing?' or 'Maybe you should buy this' or 'How about some concert tickets in Portland?' There was nothing at all." The retiree eventually reached an inescapable conclusion: "I was considered insignificant."

Yes, it takes more than $10 million to be seen as rich these days. It takes more like $25 million. Not only is that the minimum for the red-carpet treatment at a growing number of banks, it is also, in the view of many experts, the sum needed for a truly cushy retirement, one free of financial worry.

"With $25 million, you can fund college and grad school for the kids, take care of your own parents, travel, start a backyard vineyard and, well, "do whatever you want," says Maria Elena Lagomasino, of GenSpring, which helps some 600 wealthy families manage their money. After all, if you simply stashed]]> gdz Thu, 20 Mar 2008 18:57:32 -0500 http://www.moneyhowto.com/2008/03/18/want_to_earn_6.26_on_your_savings_account_itvs_possible.html http://www.moneyhowto.com/2008/03/18/want_to_earn_6.26_on_your_savings_account_itvs_possible.html With the Federal Reserve cutting rates six times since September, the days of tidily earning 5% on your cash appear to be a thing of the past. Since last June, yields on online savings accounts at HSBC and Emigrant Direct have dropped from just over 5% (among the highest yields at the time) to 3.55% and 3.3%, respectively. The returns on high-yield savings and money-market accounts are even more meager — averaging just 2.64%, according to Bankrate.com.

But there's a small segment of the banking world that is bucking this low-yield trend. Some little-known community banks and credit unions are offering accounts that carry yields as high as 6.26%. Better yet, these so-called reward checking accounts (they're also referred to as maximum earnings accounts) have no monthly fees, and deposits are insured by the FDIC or its credit union counterpart, the NCUA. In order to earn these higher annual returns, however, account holders must meet certain criteria each month, such as paying bills and banking online, using direct deposit and making a set number of debit card transactions.

These banks aren't just being generous — reward checking and maximum earning accounts are one way that the smaller banks are trying to weather the current economic downturn, explains Aaron McPherson, a practice director at Financial Insights, a financial services market researcher. Not only does the bank attract new deposits at a time when many consumers are draining their accounts to settle debts, but it]]> gdz Tue, 18 Mar 2008 18:48:20 -0500 http://www.moneyhowto.com/2008/03/12/ten_smart_ways_to_spend_your_tax_refund.html http://www.moneyhowto.com/2008/03/12/ten_smart_ways_to_spend_your_tax_refund.html Tax-filing season is in full swing, with millions of filers already sending in their forms -- primarily because they are expecting a refund from the Internal Revenue Service.

Regardless of whether your cash back from Uncle Sam is a few hundred dollars or several thousand dollars, any amount of money can go a long way if you think before you spend. Try one of these money-smart suggestions:

1. Pay down credit card debt.
OK, so this doesn't sound as appealing as a new flat-screen TV. But if you can knock out -- or knock down -- the balance of even one high-interest credit card, you're making money. Think of all the interest you won't be paying.

2. Open an IRA.
Or, if you already have one, use your refund toward your annual contribution. Been putting this move off until you had "a little extra money?" Today's your lucky day. Any amount "will compound nicely," says Chris Farrell, author of "Right on the Money."

3. Take stock.
Historically, stocks have produced nice returns, and even a few hundred dollars can get your nest egg off to a nice start.

"The biggest mistake people make is thinking (what they have) is too small an amount to invest," says Ric Edelman, author of "Ordinary People, Extraordinary Wealth." "Rich people start off as poor people. The]]> gdz Wed, 12 Mar 2008 19:05:48 -0500 http://www.moneyhowto.com/2008/03/10/could_you_lose_your_insurance_in_an_hour_of_need.html http://www.moneyhowto.com/2008/03/10/could_you_lose_your_insurance_in_an_hour_of_need.html A series of troubling developments in California's individual health insurance market is bringing national attention to the problem of patients having their coverage taken away when they need it most.

Last month, an arbitration judge ordered California-based health insurer Health Net Inc. to pay $9 million to a cancer patient whose individual coverage was canceled during her chemotherapy treatments in 2004. The judge ordered Health Net to repay $129,000 worth of Patsy Bates' unpaid medical bills and awarded the 52-year-old hairdresser $8.4 million in punitive damages and $750,000 for emotional distress.

It's not just Health Net that's attracting scrutiny. Blue Cross of California, a unit of WellPoint, the nation's largest private health insurer, drew fire recently for sending letters to doctors asking them to verify patients' accounts of their health histories in their applications after the company already had approved their policies. Blue Cross has since stopped the letter campaign.

California's Department of Managed Health Care, which regulates the state's HMO plans, has been investigating consumer complaints about unfair rescissions since 2006. The agency has fined both Blue Cross and Health Net and is in the process of reviewing the practices of other companies that sell individual policies in the state, spokeswoman Lynne Randolph said.

"We don't think it is only happening in California...but California's farther ahead in terms of enforcement,"]]> gdz Mon, 10 Mar 2008 20:13:07 -0500