The Shop Cop » Economy

Have You Picked the Wrong Travel Company? Reap Big Rewards with a Corporate Travel Agent Right Now to Take Advantage of Luxury Trip Deals

admin — Tue, 11 Oct 2011 20:08:30 +0000

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.

As Gold and Diamond Prices Continue to Rise Consider Shopping at an Auction or You Are Likely to Overpay

admin — Tue, 11 Oct 2011 19:38:37 +0000

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

Go to your local jeweler for an appraisal
Compare venues across the board to see where you may be able to get the highest price (auction, jeweler, web)
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.

Avoiding a Second Mortgage Could be Wise For Some Time to Come

admin — Tue, 11 Oct 2011 15:13:03 +0000

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.

Under the Influence of the Mortgage Experts? Know the Facts about Mortgage Shopping Before Shopping Homes

admin — Sat, 02 Jul 2011 18:14:03 +0000

If you are shopping for a mortgage now, you have probably discovered that getting a mortgage just isn’t as easy as you thought it might be.

TRENDS IN THE MORTGAGE MARKET:

Both the 15-(5.42%) and 30-(5.88%)-year fixed rates have gone down by about ½% point in 1 year.
The mortgage crisis began in 2007, as people failed to pay their loans. This quarter, alone, 900,000 homes are going through the foreclosure process, and home values are the lowest they have been since 2001.
Loss of jobs—in March, alone, the economy lost 80,000 jobs.
If you had an ARM (Adjustable Rate Mortgage), you paid a low introductory rate, but rates have soared after 2-3 years, making it harder to pay your mortgage. EX: If you have a $200,000 mortgage and your introductory ARM was at 4% at closing, it might be 7.5% now, after the adjustment period. This costs you almost $400 more per month.

IF YOU APPLY FOR A MORTGAGE NOW:

Banks will charge higher fees, even if rates are lower than they used to be, to cover their possible losses, making it more expensive for you to qualify for a mortgage and afford the loan.
2nd Home market is even worse than the first home market. Particularly in places like Florida and California, home values have gone down by 25%.
Refinancing: Difficult to do because refinancing fees have gone up–closing costs are higher, and prepayment penalties are higher, costing between 1-3% of loan’s value.

ADVICE IF YOU WANT A MORTGAGE:

Appraisals coming in at lower values—you need to find an appraiser who can really show the value of all the gems in your house.
Shop for your mortgage within a 30-day period. Otherwise, your credit rating might drop…too much activity shopping for a mortgage in more than a 30-day period can actually hurt your credit score (a great credit score is over 700).
If you can swing putting more money down, you save in 2 ways:
1. get a lower interest rate, and
2. avoid having to buy Private Mortgage Insurance (PMI).
Avoid buying houses in neighborhoods that have taken an extraordinarily long time to sell houses, especially if you think you may move within a few years.
In this market, try to close when it is most convenient to you, not the seller, especially if you need to first close on the sale of your own house.
Consider using a home equity line for your first home mortgage to help pay for your 2nd mortgage if it is hard to get a good deal on a second mortgage.

WATCH OUT!

Do some comparison shopping online before shopping through a broker/lender. Pricing can be more competitive online. Pricing less up-to-the-minute if not from the internet. Internet pricing is more black and white. People with weaker credit scores have a harder time getting a mortgage online. (Eloan and Amerisave are two reputable sites). Know what features you want before shopping online.
Mortgage brokers charge fees (either fully disclosed or not) that lenders don’t charge. Buyers pay these fees.
If you shop different lenders on different days, you will get different prices.
Give the lender as little information as possible about the home you are buying when price shopping—anything you say may hurt your price.
Get a written confirmation of a price “lock.”

Considering Appealing Your Hefty Property Tax Bill? Newly Changed Rules May Require You to Show Any Recent Refinancing Appraisal as Proof that You Are Overpaying for Your Taxes

admin — Fri, 17 Sep 2010 17:46:22 +0000

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.

Kids and Credit Cards: Reign in the Spending Now Before It’s Too Late

admin — Wed, 14 Apr 2010 14:49:33 +0000

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.

KIDS UNDER 21 NOW NEED CO-SIGNERS

To limit risk to credit card companies kids will now need a co-signer, thankfully. Colleges are not allowed to provide credit card stands with nice-looking gifts given to students who fill out credit card applications. Many children will be tied to their parents, financially, until after college or grad school, so teaching financial responsibility now will save problems later on in life, when debt typically goes up. Credit card companies have historically sought to entice kids with credit cards from a young age, when they can start a pattern of charging.

KIDS NEED CREDIT CARD SPENDING RULES

Some parents are imposing strict rules about when a child can use the credit card. A good rule of thumb for charging on the credit card is that anything over $50 must be approved by the parents. Kids need to walk through the credit scoring process, and understand how having a credit card will both help and hurt their credit scores, even years down the line. John Whitcomb, a Medical Doctor, and author of “Capitate Your Kids” recommends not only imposing spending limits, but also spending limits in different categories, like clothing and living expenses; and not using the card as a loan to repay later. Half of all college students have real credit card debt; the average is more than $3,000.

CREDIT CARDS THAT OFFER GOOD BENEFITS FOR STUDENTS

Though I am not saying I recommend giving kids credit cards, when used properly there are some good options. Citi mtvU Platinum Select Visa Card for College Students gives points back when you pay on time and don’t go over your credit card limit. Good grades will earn you 2,000 points twice a year. Points are redeemable for gift cards, travel and electronics. There is no annual fee. These benefits are not only enticing to a college student; they are also a good offer these days.

PREPAID CREDIT CARDS

Similar to gift cards, you pay for a prepaid credit card up front. The child can spend only up to the limit of the card. Cards can be issued in the child’s name and money can be deposited into the account. These cards are used like a Visa or Mastercard. Prepaid cards are safer than cash because if the card is lost the account can be frozen. There are no high interest rates or late fees with prepaid credit cards. The one downside of getting a prepaid credit card is the activation fee you might be charged at the onset. Also, if you use the card at the ATM you will be charged a fee, which will lower your available balance. Good prepaid credit cards right now are the UPside Visa Prepaid Card and Current by Discover, which allows parents to restrict certain kinds of spending on the cards.

Prepaid cards are personally my favorite “credit card” option for kids, and I feel they are ultimately safer for kids, especially kids with large spending habits. The up to $50 a year can be a high price to pay in maintenance fees, but the fees are well worth the price tag if it reigns in spending.

VIRTUAL SPENDING AND KWEDIT

I read an interesting article recently in the New York Times about our young kids and virtual spending. Virtual spending is a $1 billion industry. The beauty with many virtual businesses is that these companies are really not selling anything of value. Kids get hooked on Internet games, as with Kwedit, and can pay their bills for their virtual purchases at any 7-Eleven, using cash; 7-Eleven then notifies Kwedit that the child paid for their purchase. Kids don’t need any parental control in order to spend in this way. Scary.

Image: FreeDigitalPhotos.net

Worry About Paying for College? Online Colleges Offer a Possible Alternative to Traditional Colleges, or Not

admin — Tue, 13 Apr 2010 21:26:27 +0000

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.

WHAT IS AN ONLINE SCHOOL?

Online education is the fastest growing medium for education in America. Over 5 million students now go to school online. Online schools are great for working students, who need flexible hours, and for students who are parents. Many online schools you haven’t even heard of. I recently met a man who teaches in the Business School at American Intercontinental University. He told me that the tuition is about $15,000 a year. I was shocked to discover the tuition was so high. The “professor” told me that State universities don’t cost that much more than the online universities these days.

Online universities have been able to attract not only college-age kids, but also adults in their mid-20′s to mid-40′s, who need additional education to pursue their career advancements or switch careers, altogether. Many online schools feature degrees in education and business, but they really cover the gamut now. The teachers are required to have the same degrees as with a regular college or university.

ASTOUNDING MARKET SHARE OF ONLINE COLLEGES VS. TRADITIONAL ONES

According to Sloan Consortium and Babson Survey Research Group, in a survey taken recently, almost 5 million students are enrolled in an online course, and the percentage increases are much greater with online education than with regular universities. The online education industry is a multi-billion dollar industry, and growing in vast numbers. Today, 11% of online students are full-time, and that number is expected to increase to 20% by 2014. Masters programs are the most popular form of online education, as adults can more easily juggle their careers, education and home life.

ONLINE EDUCATION SCAMS

Watch out for degree mills. Online schools can be a fishy business to comparison shop. It is much harder to determine an online school’s academic reputation than a regular university or college. Here is what to watch out for:

Many online schools have very similar names to well-known colleges and universities
The number of courses needed for a degree should be identical for both an online university and a physical university
Some online universities make it difficult for an employer to understand the curriculum completed by the student; fake degrees are criminal
“Fake” colleges and universities have earned hundreds of millions of dollars in offering fake diplomas
If a school offers you credits based on “life experiences” it is possible the school is a scam
Get a hard copy of the school’s brochure and read it with a fine-tooth comb to check for anything that doesn’t sound right
Ask to speak with the financial aid office–any real university will have one; otherwise, it may not be accredited
Scam colleges often use a registered web site that hides the actual registrant
Watch out for bogus tests you have to take that count towards your degree
Make sure there is an actual telephone number with someone who actually answers the phone

Image: FreeDigitalPhotos.net

The Economy: How to Plan Now for Retirement

admin — Tue, 17 Nov 2009 19:18:26 +0000

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.

Recent Real Estate Figures and What it Means to You if You are Getting Nervous About Selling Your House

admin — Tue, 17 Nov 2009 19:17:41 +0000

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 Household Necessities

admin — Tue, 17 Nov 2009 19:16:56 +0000

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.

EATING IN–COUPONS ON GROCERIES:

Frugalliving.about.com: For moms who are feeling the money crunch but still want to feed their kids healthy food, and even baby food–I like this site because this is where all of the organic food companies either have links to their coupon pages or you can sign up for alerts to special sales.
Thecouponmom.com: The savings are real. $5 off Huggies, $1.50 off any Dove body wash, etc. Must register and print coupons, but easy to use and updated all the time.

Beware of buying in bulk: At Bulkfoods.com, the savings, when divided by the pound, isn’t great. Same with wholesale clubs and membership fees. Not worth it to give these companies your money, when you need to hold onto every nickel right now. Studies have proven that more than 15% of the food we buy goes to WASTE. Not worth it. Local grocery stores offer better discounts, in general, than chain stores with “discount” cards, which serve more as a marketing tool for those stores.

BEWARE OF ONLINE “SAVINGS”

Don’t Entirely Trust Web Quotes: Now, more than ever, watch out for websites which sell your personal information, sell your monthly subscriptions or other things, and harass you with constant emails.

Sites to be wary of—Not my favorites: Gamefly.com (like Netflix: once they charge you, they always charge you, cheapflights.com (flights are at the worst time of day and you invariably have a layover), Kidsmealdeals.com, where there are very few restaurants posted with discounts for kids. Site not well set up yet. Progressive car insurance (wants to sell you progressive, or sell you payment plans which are more expensive).

FREEBIES: WORTH THE TROUBLE AND EFFORT?

Companies are spending more than $75,000 on projects to test consumer reactions to a variety of products. We make an impact on our favorite kinds of products. And our feedback matters in the success of their products. Companies know we will spread the word if we like their products. 10,000 volunteers to test products generates 600,000 people learning about those products, according to Bzz Agent.

What you get as a volunteer: Typically, 5-6 items that you will be testing. Could add up to around $20 in freebies.

BZZ AGENT

Products typically tested: food and cosmetics. Saving you money on your favorite parties, word of mouth marketers hope you and your friends, and their friends, etc., will buy products.

How it works: Bzzagent sends you products (like Max Factor, Cetaphyl, Sonic Care, Glad Press-N-Seal, etc., usually not big ticket items) whenever there is a need to address a group of people like yourself, young moms, recent grads, people living in large urban areas, etc. Companies know we influence buying decisions and they want our feedback. 500,000 people have volunteered to try products and give their feedback. In return, they get to keep a few of those products. Campaigns typically 8-10 weeks.

Rules to know when word-of-mouth marketing:

You won’t get paid for your opinion
Everyone testing the product is informed about the test
Disclose the good and bad feedback

SHE SPEAKS

She Speaks is an organization that sends you products, like food or cosmetics so that you will share them in a party-like setting. This is also an excellent word-of-mouth campaign. Not as effective results or as large a volunteer base as Bzz Agent.

WORD-OF-MOUTH ETHICS:

Word-of-Mouth Marketing Association (WOMMA) will guide you about engaging in one of these campaigns. Complaints should go to the Attorney General of your state if you feel you were misled in any way.