Archive for November, 2009
THE BEST DEALS AND WAYS TO PAY FOR THEM WITHOUT GOING BROKE
Retailers are preparing themselves for cautious spending this holiday season, and are stocking their stores with lower inventory this year. Here’s what you need to know about Black Friday and the remainder of the holiday season.
HOTTEST TRENDS THIS YEAR
- Time-saving necessities like small ticket, $20 gadgets and accessories (Target kitchen accessories under $10)
- Packaged, large quantity toys great value (Wal-Mart has 100 toys for $100, like Barbies and action toys)
- Video games, Wii, Nintendo $20 off at K-Mart—this will hurt the big electronic store sales at places like Best Buy, who are not offering these discounts on such popular items; big box discount stores competing with electronic stores because people are still spending on the electronic games for their children
- Luring repeat shoppers, stores are offering gift cards (Toys R Us offering $10 gift cards if you spend $75 or more, Target $10 off $100 on future purchases, JC Penney)
- Clothing deals will be on necessities, rather than on luxuries–Old Navy discounting winter coats (as inexpensive as $15), jeans ($10 for kids), fleece sweatshirts ($5)
Continue reading »
VOICE AMERICA RADIO
EPISODE DESCRIPTION:
The economic events of the past year have changed the way we think about our retirement money–how we plan to save it and what to do if we lose it. Included in this discussion are what kinds of options are currently available for safe investing, 401Ks and investing for those in different age brackets. Joining me to discuss these topics are David McPherson, financial planner and ABCNews.com personal finance columnist, and Jean Chatzky, author of “The Difference: How Anyone Can Prosper In Even The Toughest Times,” and The Today Show financial editor. Please tune in.
WHAT YOU NEED TO KNOW IF YOU ARE BUYING OR SELLING A HOME
Refinancing your home: consider only if you can save 2 percentage points on what you are currently paying. Consider closing costs and points you will have to pay. Closing costs can be as high as 3% of the loan amount, on fixed mortgages.
The longer you stay in your house, the quicker you are to break even if you decide to refinance your mortgage.
ACCORDING TO THE LATEST STATS PROVIDED BY THE MORTGAGE BANKERS ASSOCIATION:
Overall, the real estate market is stabilizing. This past month, existing home sales showed the biggest percentage increase since July 2003.
- Consumer spending is on the rise, though still slow
- Condo sales in February jumped an impressive 11%
- Home prices in the West this past month dropped 30%, the highest drop in the country
- New home sales rose almost 5%. The largest number of existing home sales was in the Northeast, a jump of about 15%
- Median price down 18% in the country from last February.
SAVING MONEY ON EVERYTHING WE BUY
Comparison shopping is hard in this economy, as retailers beef up their efforts to hide true savings. You need to be smarter, take charge and respond quickly to the rapidly changing retail environment.
IMMEDIATE SAVINGS ON THE EVERYDAY THINGS WE LOVE
Don’t feel like you have to give up “getting” the things you love to get, especially for kids.
CLOTHES, BOOKS, VIDEO GAMES:
We will always want to keep our wardrobes fresh and our kids occupied with the things they love. And you can’t get everything at the libraries. Some favorite sites:
- Swaptree.com: simply borrow books, over 8,000 videos, music, video games (400+), and offer your own inventory to borrow. Only cost is shipping and something to swap. Great site for kids.
- Swapstyle.com: over 30,000 members and 7,000 clothing items is easy when you trade clothes for free! Only cost is shipping. Keep your wardrobe fresh, but don’t count on getting exactly what you are looking for—hit or miss.
EATING OUT:
Even though the economy is not good we still want and need to eat out. Socialization and saving time is a big part of our lives, and an important way to relax and unwind.
- Restaurant.com: On this site, you buy a coupon for say, $10 and then save $25 in the restaurant. This is an incentive for you to actually go to the restaurant within a short period of time. There are about 50 restaurants in the Minneapolis area, for example. Promotions all the time for $0 coupons for say, $25 off at your favorite restaurants. Wide range of restaurant prices. Site has saved restaurant-goers $75 million.
- Momsview.com: Coupons for chain and fast food restaurants that you can print right off computer. Many say chains are more expensive than local eateries, but with this site you can really save a bundle. Coupons expire quickly, so check frequently. Hundreds of choices in all major cities.
Continue reading »
Earning some extra cash after the holidays is a must for many of us, either because our financial situation isn’t looking very good or because we have to pay off the creditors for the gifts we bought during the holiday season. Here are some ways to earn quick cash right from your own home!
SELL YOUR GOLD
We all have jewelry we don’t really wear anymore. Maybe you should consider selling the gold ones. The price of gold, unlike other commodities, has gone up dramatically in the past few years. There are 2 ways to determine value when selling gold:
- How much does the gold weigh?
- How intricate is the design, and how old/rare is the piece?
HOW TO SELL GOLD:
- Try an auction house first, and set a reserve so you don’t sell below market value. If a piece is valuable, try a large national auction house such as Sotheby’s and let them walk you through the process of selling . . . easy to do.
- Get an independent appraisal from a reputable jeweler so you know how much gold you have and any other qualities that might make it sellable.
WATCH OUT:
Don’t run to the nearest retailer or pawn shop to make a quick sale. You will be getting a wholesale price, at best. Beware of posting gold on eBay or other websites that sell a huge variety of things from sellers we don’t know, at random prices. Realize that most buyers today care more about weight than about age or intricacy of pattern. Most buyers of real gold want to see it or know that the seller is reputable. Best bet: a local auction house. For example, for Minnesota: Luther Auction House in St. Paul. (612-424-4654, 2556 7th Avenue East, St. Paul, MN 55109). Local auction houses have traffic and buyers willing to buy.
Continue reading »
As featured in BNet Business Network.
Holiday season shopping is underway, and with all the deals and “steals” how can you be the smartest shopper in this down economy? This season is expected to be the worst in 20 years. Some of the biggest trends this season, good and bad include:
- Increase in Online Shopping: Online shopping is expected to rise 33% this season, due to time and shipping savings this season. Online retailers are making it easier to shop for and return items purchased online by offering free shipping, easy returns and customer reviews. Rise in matching prices online. Online sales will decrease because returns are expected to be high. Watch out for privacy policies and sharing your personal information online.
- Decrease in Credit Card Spending: Store and bank credit cards are lowering credit card limits. Department stores like Nordstrom and Target are expecting to do a bigger credit card business due to penalties, limits and interest rates being charged by banks, but overall, spending on cards will be less. $30 fees will be charged if you go over the limit, in many cases.
- Stricter Return Policies: Keep your receipts and gift receipt, but ask about quick sale adjustments in advance of the holidays to get the best overall prices. Without a gift receipt most stores are giving refunds only to the gift giver.
Continue reading »
The recession has hurt many retailers, of course. But are you willing to do what it takes to strike the best deal possible for yourself and family? With inflation figures up, what are retailers willing to do in the way of lowering prices? Did you know that 90% of you who haggle will get a discounted price? That figure is staggering. Stores like Macy’s, Target, and Room & Board are stepping up to the plate to catch every possible shopper. How can you make sure you are leaving no stones unturned when shopping for
anything right now?
HERE’S HOW TO SUCCESSFULLY HAGGLE IN THIS MARKET:
MOST IMPORTANTLY:
- KEEP ON TOP OF CURRENT PRICES AND SAVE YOUR RECEIPT! If you pay full price on ANYTHING, find out when the item will go on sale, keep your receipt and check to see if you can get that price difference if you return the item to the store. If you don’t get the lower price you could say “I feel tricked because the price was X yesterday,…and you won’t give me the sale price!” Department stores like Macy’s will discount if they have a loyal customer who complains about the recent price drop soon after the purchase. Continue reading »
As featured on ABC7 Chicago.
As the mortgage market and economy continues to be weak, there is an increase in the number of mortgage fraud cases reported, and a 48% jump in foreclosures last month, alone.
Illinois Attorney General, Lisa Madigan, just filed a lawsuit against Countrywide, the nation’s largest mortgage lender, for issuing and marketing risky and expensive loans. We have some tips on how to avoid getting into this situation and what to do if you find yourself a victim of mortgage fraud.
HOW DID WE GET TO THIS POINT?
- Lenders qualifying people who didn’t have the income to buy the home, but encouraging them to inflate their income on their application.
- ARMs became popular as “affordability products”– get borrowers in at a low rate but soon after, bump up the rate by several percentage points-resulting in increased foreclosure rates. Borrowers fooled by low teaser rate.
- At Countrywide and other mortgage companies, Madigan is claiming, the lender often didn’t tell borrowers the loan’s true costs, risk and affordability factors. Told borrowers, simply, “there are no closing costs.” This was misleading to the borrower.
- Loan officer’s compensation at many of these places was tied to the volume of loans sold–the goal being to sell as many mortgages as possible within a short period of time. The belief is that employers encouraged employees to sell risky mortgages to unsuspecting victims.
SPOTTING MORTGAGE FRAUD
- Lender encourages you to provide false info about your income, assets or employment. You may sense that the lender just wants you to buy that home that you love, but can’t afford.
- Mortgage broker/lender encourages you to work with his or her appraiser, inflating the home’s value.
- Interest rate is 2-10% higher than market rates.
- True closing costs are hidden, but lender tells you that you won’t be able to get a mortgage elsewhere.
Continue reading »
With the economy being tight right now we need to save money anywhere we can. These are some of my favorite values right now.
- Best in kids’ furnishings/dorm room necessities: Wal-Mart: $30-40 bedding. Free shipping to your local store. Satin, very soft bedding, luscious colors and highly functional accessories.
- Best value in fixing up your outdoor furniture: Chaircarepatio.com. No matter what kind of furniture you have outdoors, it gets weathered and awful-looking after a few seasons. You can get replacement straps and slings in hundreds of colors for only a few dollars each, along with easy-to-use directions and hardware tools. I love this place based in Dallas.
- Best website for saving money on your prescriptions: I-saverx.net. Up to 80% savings on basic prescriptions! Must become a member (free), and savings on shipping, too. Also check your own insurance company! Insurance companies often team up with private online pharmaceutical companies or state-run agencies that sell medications. Make sure they are certified and, in fact, take prescriptions! Also, Walgreens and CVS have websites that list the drugs they offer for less—maybe generic, as well as $30-50 discount cards just for “joining”. They also provide a list of meds offered for your pets! Continue reading »
With the real estate market being in a slump right now, buyers can take such advantage of their strong bargaining position! Trusting the broker can be the hardest part of buying a house. Being a prepared home shopper can be the best bargaining tool you have.
The most important thing you need to do as a buyer is hire a highly skilled inspector. Most homeowners in the state of Illinois require you to have an inspection within 10 days of signing the contract. This doesn’t give you a lot of time to find an inspector.
COMMON MISSTATEMENTS MADE BY REAL ESTATE BROKERS:
- “The mechanicals have all been recently replaced”,
- “This item was just repaired”,
- “The house is environmentally safe.”
Continue reading »