The Shop Cop - Jennifer Litwin

MY SUMMER SPENT TRAVELING, ON THE REQUEST OF MY KIDS

Because I’ve spent the past many years traveling for work, I haven’t had much time or desire for leisurely travel.  And traveling with little kids wasn’t always the easiest.  But this past summer was different.  My son, Edward, told me last year that he wanted to travel, to see the world.  Planning the trips wasn’t easy, as I wasn’t sure which hotels to stay in, which places offered the best values, and best times and ways to book our trips.

RECENT TRIP TO THE REGENCY HOTEL IN NY WAS AN EYE OPENER

My brother and sister-in-law recently took my nephew, Justin, to NY for a weekend.  They were so proud of the amazing rate they were able to get through Orbitz.  For somewhere in the low $200′s, they were able to get a room at one of my favorite hotels, the Loew’s Regency in NY.  I couldn’t believe the rate–a rate that I hadn’t been able to secure in years, since right after 9/11.

THE ARTIFICIALLY LOW HOTEL RATE QUOTED BY ORBITZ

Orbitz said in fine print that upgrades may be available upon arrival, but that they couldn’t guarantee the room you get when you book through them.  Unfortunately, when my brother, sister-in-law and nephew got to the famed Regency Hotel, they discovered they would be sleeping in a room with 2 twin beds—something unacceptable for the 3 of them.  So they went to the front desk, spoke with a reservations clerk and were able to upgrade to a room with 2 doubles—for an extra $100, of course.

PROBLEMS WITH ORBITZ, EXPEDIA, PRICELINE AND OTHER ONLINE TRAVEL COMPANIES

We’ve all had the same complaints when booking trips with the online travel companies, as Consumer Affairs reports:

1) The rate you are promised promises you nothing—wait til you see your room.  No online or in-person guarantees of a room type or that your view won’t be the parking lot!

2) When you need to change your travel plans, good luck finding someone who picks up the phone to help you.

3) Changing your travel plans will require you to spend a hefty change fee, with no added benefits.

4) With online travel agencies you won’t usually be allowed to take advantage of all the freebies, miles, rewards and other ways the travel industry is extending to nearly every human being on Earth right now.

5) Travel websites are hard to use and are inefficient when you need to change your plans.

CONSIDER USING A WORLD-CLASS TRAVEL AGENT

I recently asked my friend, Erin, how she always plans the best trips, and how she keeps her kids so happy on vacation, even when traveling great distances.  Erin was excited to share her little travel secret with me.  As Erin travels all over the world to spend time with her husband and children, as her husband travels a lot for work, she has found that having the right travel agent is key to happy travels.  Erin referred me Paul Klein Travel, in Chicago, a corporate travel agency, where I turned over my business and headaches.  Through using Paul Klein Travel, I have been able to secure the best seats, best rooms, best hotels, best upgrades and packages, and yes, best prices.  I have tried to comparison shop the trips I have taken using Paul Klein, in almost 100% of the cases, Paul Klein Travel has beat everyone.

CORPORATE TRAVEL AGENTS’ VOLUME BUSINESS GOOD NEWS FOR VACATIONING FAMILIES

The beauty of traveling with a corporate travel agency is that you can book great vacations at well-known hotel chains and resorts, and take advantage of the corporate travel agency’s great rates.  Paul Klein, as it turns out, is one of only 80 travel agencies that “partners” with hotel chains like the Four Seasons and Ritz-Carlton, among many other great chains–chains that are often expensive and have little in the way of a rewards program.  Through Paul Klein, we were able to stay in some great spots and take advantage of the opportunities to see different places we may not otherwise know about.

BENEFITS OF USING A CORPORATE TRAVEL AGENT–WHAT YOU SHOULD ASK FOR

1) Alerts if prices drop or are about to go up so you can secure the best air/hotel packages

2) Resort credits that average between $100-300 per trip—credits that may include meals or spa packages; even high tea and room service breakfasts—free with your travel agent relationship.

3) Instant phone calls made to the manager of a hotel to request a room change or upgrade on your behalf–something you may not be able to secure on your own.

Recently, I did a segment for Twin Cities Live about melting your gold and selling it because you could get more money for gold than a few years ago. Recessions work that way. Gold holds its value during a recession. But someone whose parent had recently died asked me if now was also a good time to sell an old wedding band, made up of several diamonds.  Her jeweler suggested making an eternity ring, or using the small diamonds to make something for her daughters.

BAD NEWS: PRICES FOR DIAMONDS IN 2010 HAVE GONE UP

If you own diamonds and want to sell them right now the good news is you will be able to sell them for a little more than you could have in 2009, by about 5%.  The reason is because manufacturers of diamonds are slowing production of their supply, which is causing prices to go up.  It is unclear how long this upward trend will continue, but since January prices have been going up a little each month.

SHOULD YOU BUY DIAMONDS NOW?

There is no question that in the past three years diamond prices plummeted 30%.  That is the question of the day.  The diamond industry now has a set price marker, called the IDEX.  This pricing index should be a good judge of what a diamond should sell for.

FIND OUT THE VALUE OF THE DIAMONDS

1. Go to your local jeweler for an appraisal
2. Compare venues across the board to see where you may be able to get the highest price (auction, jeweler, web)
3. Consider buying inexpensive little diamond(s) and turning them into something else for your children.  The prices have not gone up steadily for a few years, and you may want to hold out.

EXPENSES YOU MAY HAVE TO BUDGET FOR THAT YOU MAY NOT HAVE ANTICIPATED

Driving down your block do you say to yourself, “I can buy two of my houses now that I could only buy one of before”, having seen the real estate market tank to its lowest level in decades?  You may be missing the entire picture.  True, you may have initially bought your first home as an investment, but now the complications in the market, due to lack of financing options, rising interest rates and an unstable job market have made buying two houses virtually impossible for the average American.

RISING COSTS OF HOME OWNERSHIP

• Property Taxes on the Rise: Counties are hurting, financially, so they are eager to raise property taxes.  Here’s the catch-22: if you want to refinance to get a better rate you will have to have an appraisal.  But if you then try to appeal your property taxes you will probably be forced to show proof of any home appraisal performed within the past three years.
• Utilities More Expensive and Continually Going Up: It is becoming more expensive to use regular water, electricity, cable and gas.   Most of these bills won’t come down unless you drastically change your lifestyle.
• Closing Costs Have Gone Up: In general, closing costs are going up, so refinancing will have an added cost, maybe not anticipated.
• More Difficult to Get a 2nd Mortgage Now: Banks are less willing to take on risks now, even with their best customers.  If you can’t squeeze into one mortgage, skip the next purchase.
• Furnishing a House is No Small Task: The cost of manufacturing furniture has risen in the past few years, and shipping prices have gone up.  Though there are more quality resources available to the public, prices of interior home construction and furnishings is on the rise.  The most expensive part of home ownership right now is inside the home.  The repairs, and if you have an old house, the modernizing that needs to get done every few years.

BANK REFINANCING RATES THE BEST IN 50 YEARS

That’s what you see over and over in the press.  True.  Yes, the cash-strapped can win big when refinancing right now, saving money over the life of your mortgage, or so we’ve been led to believe.  But wait.  There’s a catch.  In effect in most states now:

APPEALING YOUR REAL ESTATE TAXES WILL NOW REQUIRE YOU TO GET AN APPRAISAL, OR TO SHOW ANY APPRAISAL YOU HAVE GOTTEN IN THE PAST THREE YEARS

Wow.  So if you have had your home appraised for refinancing purposes, that appraisal will come in most likely at much more than what you paid for your house possibly years ago.  Your higher appraised home will hurt your ability to now get your real estate taxes lowered, ever.  Especially if you get all the way to your appeals court.  The counties will do anything to get revenue and property taxes are one of the best ways to recover the financial losses over the past few years.

HOME APPRAISALS MEAN A HUGE GAMBLE IF YOU WANT TO EVER TRY TO APPEAL YOUR ALREADY HIGH PROPERTY TAXES

Counties across America are getting smarter.  They are coming down hard on people who claim they are overpaying for taxes relative to their neighbors.  Too many people are hiring too many lawyers and the courts are overflowing with real estate tax appeal cases.  With states and counties feeling cash-strapped, they are looking for any way to collect more taxes.  Your county knows that if you are required to submit your appraisals done within the past three years you will be less likely to try to get your real estate taxes lowered.

Something important to consider when deciding whether or not to refinance.  Don’t learn after the fact.

HOW THE CREDIT CARD ACT OF 2009 AFFECTS YOUR KIDS AND CHARGING

In February, the Credit Card Act of 2009 went into effect to limit a credit card’s ability to charge high interest rates and service fees.  Kids and especially kids in college were trapped with high balances and high interest rates.  Kids and credit cards have always been a risk to credit card companies, and to their parents, of course.

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Let’s face it—we don’t all have lucrative college savings accounts.  If you can’t absorb the cost of going to a physical university right now, you may be looking at your online options for the best value.  Though online education may cost less than an a physical university or college you have to understand what you are getting for your money and how your degree will be perceived.

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VOICE AMERICA RADIO

EPISODE TITLE: “Economy Update: Planning for Retirement”

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.

1. Consumer spending is on the rise, though still slow
2. Condo sales in February jumped an impressive 11%
3. Home prices in the West this past month dropped 30%, the highest drop in the country
4. New home sales rose almost 5%.  The largest number of existing home sales was in the Northeast, a jump of about 15%
5. Median price down 18% in the country from last February.