MoneyJibe Blog

We Deserve It Dividend Email

2008-10-06T23:03:00.000-07:00

An email is making the rounds right now titled "We Deserve It Dividend" that proposes that rather than bailout financial institutions, the money should be divided among all U.S. residents of legal age. It states that if the $85 billion proposed bailout of AIG were divided among approximately 200 million adult Americans, we'd each get $425,000 and could pay off our mortgage, pay off college loans, buy a new car, and so on, crisis solved.

Problem is, the math is wrong.

First of all, according to the U.S. census bureau, the current U.S. population is estimated at 305 million, not 301 million. Check out the Census Bureau's United States Population Clock web page for details.

Secondly, if you divided $85 billion ($85,000,000,000) by 200 million (200,000,000) we would get $425 each, not $425,000.

While I'm sure nobody would turn down the $425, I'm not sure what kind of house one could buy with it! And this wouldn't solve the problem of injecting new money into the financial system so new loans can be made.

Funny how emails can get passed on like that without someone turning on a calculator!

Save Money With InStyle Fragrances

2008-10-04T11:15:00.001-07:00

A while ago my wife bought me the Instyle Fragrance named "An Impression of Eternity". InStyle fragrances are impressions of the world's most popular fragrances, cost about one third the price, and are available online and at local Walgreens stores.

She was shopping at our local Walgreens store and ran across the InStyle fragrances. She said this particular one smelled just like Eternity to her and cost a lot less, so she thought I should try it. I was skeptical at first, but I've been using it for months now and I can't tell the difference at all between the InStyle fragrance and Eternity for Men. The InStyle fragrance smells just like Eternity and lasts a long time. I have the 3.4 oz cologne spray, which is currently priced at $11.99 plus tax. What a deal, considering the same amount of Eternity would set me back about $36!

One can save $24 buying an InStyle fragrance, and as I detail here, saving $24 is equal to earning $36. According to the U.S. Bureau of Labor Statistics, the current average hourly wage in the U.S. is about $18, so saving money buying one InStyle fragrance is equal to working about 2 hours!

InStyle impressions available for women include White Diamonds, Opium, Obsession, White Linen, Tommy Girl, Acqua Di Gio, J Lo Glow, Angel, Chanel #5, Beautiful, Eternity, Pleasures, Dolce & Gabbana Light Blue, and Sarah Jessica Parker Lovely.

InStyle impressions for men include Polo, Polo Blue, Eternity for Men, Cool Water, Drakkar Noir, Aqua Di Gio, and CK One.

You can check out the Instyle Fragrance website for more information and to see the list of available fragrances, and you can buy them at your local Walgreens store or online at this InStyle Fragrance Search Results page at Walgreens.com. If you order online you'll pay sales tax and a small shipping charge (the charge for shipping most orders weighing 10 pounds or less to the 48 contiguous states is $5.49).

Give InStyle impressions a try and let me know what you think! Is this a good way to save money and get more bang for your hard-earned buck?

Top 50 Online Retailers

2008-10-03T20:05:00.000-07:00

Stores magazine recently released a list of the Favorite 50 Online Retailers shoppers like most. Researchers asked over 8,000 consumers two questions:

1. What website do you shop at most often for apparel items?
2. What website do you shop at most often for non-apparel items?

No website names were suggested, and the top 50 list was created based on the number of times each retailer was mentioned. The top 10 were as follows:

1. Amazon.com
2. eBay.com
3. Walmart.com
4. BestBuy.com
5. JCPenney.com
6. Target.com
7. Google.com
8. Overstock.com
9. Kohls.com
10. Sears.com

This ranking aligns with our web stats, as we currently provide coupons for Amazon.com and Overstock.com and our Amazon.com Coupons page gets the most traffic by far, followed by our Overstock.com Coupons page.

You can read the full article on the Online Retailers Shoppers Like Most and see the full list of the Top 50 Online Retailers.

Happy Shopping!

New Overstock.com Real Estate Search

2008-10-02T21:15:00.000-07:00

Overstock.com sent me an email today informing me about their new Real Estate Search, so I checked it out.

There are currently 3.7 million properties listed, and one can search by zip code and type of property such as Classifieds, Distressed, Foreclosures, For Sale By Owner (FSBO), Timeshares, Auctions, Online Auctions and Rentals.

I typed in my zip code and it displayed a results page that contained several ways to refine my search, plus this very interesting graph showing the price distribution of homes in my area:

At the top left of the graph there's a button where one can search the actual database that realtors use, which is the Multiple Listing Service (MLS) database. Upon clicking this button I was taken to a page with 605 home listings, mostly for residential, single-family homes but with a few land only properties, as well as some multi-unit and commercial listings.

Below the graph was a listing of matching properties, some of which were flagged with an "O-Hot Value" label, indicating the property may be a better relative value in the local market.

After test driving the site and performing a few searches, I have to say the website is very easy to use. Check out the new Overstock.com Real Estate Search and see what you think!

Why Are We In This Financial Crisis?

2008-09-29T08:41:00.001-07:00

A lot of people in the U.S. are asking "Why are we in this financial crisis?" What led to it, how do we get out of it, and how can we prevent it from happening again in the future?

People want someone to explain the current financial crisis and its cause--who, or what, is behind the crisis, and the impacts of the credit crisis on financial institutions.

In President Bush's speech to the nation on the current crisis he stated "We're in the midst of a serious financial crisis, and the federal government is responding with decisive action." As of the date of this article, the government had yet to agree on how to address the crisis. Text of President Bush's speech on economic crisis.

In response to the current financial crisis in the U.S., The Washington Post recently asked a dozen experts for the one book they'd recommend to understand the crisis, and the human nature behind it. Here's how they explained their project:

"We asked a number of smart people--inside and outside the worlds of economics and finance--to scan their bookshelves for answers. Though there is no single book that can sum up and explain the current conditions, we asked each of our contributors for one book they would recommend to their neighbor, their daughter, their aunt, their barber, priest, rabbi or best friend to help them gain some perspective on these volatile times. We imposed only one rule: You cannot recommend a book you wrote or edited. After that, no rules. It could be a macro-economics text, a popular history or a novel. If there is one unifying theme that runs through these 14 selections, it is this: Bubbles come and go, economic theories rise and fall, fortunes are made and lost. But human nature remains unchanged, from the time of Herodotus to Homer Simpson."

The experts include the following:

Peter R. Orszag, Director, Congressional Budget Office

Robert E. Rubin, Director, Citigroup; former U.S. Treasury secretary (1995-99)

Jagdish Baghwati, Professor of economics and law, Columbia University; senior fellow, Council on Foreign Relations

Sheila Bair, Chairman, Federal Deposit Insurance Corporation

N. Gregory Mankiw, Robert M. Beren professor of economics, Harvard University

Steve Case, Chairman of Revolution LLC and the Case Foundation, co-founder of America Online, former chairman of AOL Time Warner

Franklin D. Raines, Vice chairman, Revolution Health Group; retired chairman and chief executive, Fannie Mae

John Allen Paulos, Mathematics professor, Temple University, author of A Mathematician Plays the Stock Market (2003)

Nell Minow, Editor, the Corporate Library, provider of corporate governance research and analysis

Henry Louis "Skip" Gates Jr., Director of the W.E.B. Du Bois Institute for African and African American Research at Harvard University, author and co-founder of TheRoot.com, owned by The Washington Post Co.

Douglas A. Irwin, Professor of economics, Dartmouth College; author of Free Trade Under Fire (2002)

Mark Cuban, Dallas Mavericks owner; chairman of HDNet; founder of Broadcast.com, sold to Yahoo for $6 billion in 1999

Why are we in this financial crisis? You can see all 12 recommendations here, as well as the reasoning behind each selection:

Making Sense of the Crisis: What to Read on the Economy from The Washington Post

Beware of Foreclosure Fraud Schemes

2008-09-22T20:38:00.000-07:00

I read a disturbing article today about people being taken advantage of with all kinds of foreclosure fraud schemes of one sort or another. The article is on msnbc.com and is titled Millions At Risk Of Foreclosure Fraud.

A lot of people commented on the article that people should always read what they sign before they sign it, but I’d like to know what percentage of people actually read every bit of every document they sign when they close on a house. In discussions with friends and family I haven’t come across a single person who’s done this, and I would guess it’s no more than a few percent at most. So there’s obviously a problem with the process if just a handful of people are reading every word of what they’re signing when hundreds of thousands of dollars are at stake!

Yes, we should all read every document we sign, but that’s almost impossible with the stack of paperwork one has to sign to purchase a home. We need to encourage our elected officials to sponsor and promote legislation that simplifies the paperwork and makes the documentation much easier to understand at a glance so the average person knows exactly what they are agreeing to. If the paperwork were easier to understand then there would be a lot fewer people signing and legally committing to things they don’t understand or don’t agree with.

Ever since we bought our first home a few years ago I’ve thought that mortgage documents should be made less burdensome and more understandable. I believe home purchase documentation should include a single summary sheet of paper that contains the numbers and answers to the following questions: What is the term of the loan? What is the interest rate? What is the monthly payment? Are there pre-payment penalties? Can the payment amount ever change?

It’s an unfortunate reality that laws in the United States allow individuals to take on far more debt and financial risk than most other industrialized nations, so someone needs to take a look at our laws and fix them. The idea that our laws provide no protection for someone who is encouraged to get into a variable rate loan they can barely afford while interest rates are near 40-year lows, or allows people to tap into all their home equity after a 50%-60% run-up in housing values over just a few years’ time is beyond me.

If you or someone you know is facing foreclosure, expect people to come out of nowhere with promises to save the property, renegotiate the loan, etc. Protect yourself and get a real estate attorney to review any documents before you sign. One key thing to keep in mind is that when you sign the title of your home over to anyone else for any reason, you are in effect selling them your home.

Until changes are made to our laws, people need to understand that the best thing to do before entering into any type of legal agreement involving real estate is to invest a couple hundred bucks and have a real estate attorney review the documents before they sign. Doing so could save many headaches, sleepless nights, and untold thousands of dollars!

Save Money on Groceries With SisterSavings.Net

2008-09-20T13:17:00.000-07:00

I just have to tell you about an amazing website I found out about recently.

The website is SisterSavings.Net. Each week they compile local grocery store sales information for the Phoenix, Arizona area and Utah, and put it into Excel and PDF format and post it to their website.

As of this blog entry, the Phoenix, Arizona grocery stores they provide weekly sales information for include Albertson's, Bashas, Fry's, Safeway, Sprouts and Food City, and the Utah grocery stores include Harmon's, Albertson's, Macey's, Reams and Smith's.

It only takes a few minutes to review the files they provide each week to get the scoop on local grocery store sales, and the savings can be quite substantial.

The website also provides help with menu ideas, long-term storage, recipes and more ways to save money.

Check them out today and save more money on groceries!

Save Money on Pet Boarding at Bark Avenue Pet Resort in Mesa, AZ

2008-08-03T15:32:00.000-07:00

We went on vacation recently and boarded our dog at the Bark Avenue Pet Resort in Mesa, Arizona. This is the second time we've used Bark Avenue to board our dog, and we're very happy with their friendly and professional attitude and quality of service. Bark Avenue Pet Resort is a great facility that offers quality one on one play time with your pet.

Bark Avenue offers 30 minute swimming sessions, 20 minute one on one pet and play sessions, and more. And if your pet needs medication or vitamins while there, it only costs $2 per administration, which is less than what we've paid at other pet resorts or dog boarding kennels in the Phoenix, Arizona area.

Be sure to use the Pet Boarding Coupons on their website to save money. They currently offer 7 coupons online. Right now you can get 1 free night with a 7 night stay, or half off a bath and brush with a 5 day stay, and there are other coupons as well. We have a large lab/shepherd mix dog (75 lb.) and used the 1 free night with 7 night stay coupon and saved $30 off our total bill.

In addition to dog boarding they also offer cat boarding, bird boarding, doggy daycare and grooming services. If you need to board your dog, cat, bird or exotic pet and live in the Mesa, AZ area I highly recommend Bark Avenue Pet Resort. Be sure to use their online coupons to save money!

Coupon for Aquarium of the Pacific in Long Beach, CA

2008-07-17T18:34:00.000-07:00

Today we visited the Aquarium of the Pacific in Long Beach, CA and used a coupon to get in for half price. You can easily find printable coupons for the Long Beach Aquarium of the Pacific that save you $3 off up to 4 admissions. Fortunately, we had the Entertainment Coupon Book Orange County edition, which had a coupon for buy one admission and get one free and was good for up to 4 admissions, which saved us $20.95. Parking cost $7 for the day.

The reviews I read for the aquarium online were pretty accurate--expect lots of kids and strollers, and many people in general. We went at about 1:30 pm and it was pretty packed, but the crowds had largely thinned out by 4 pm. Overall it was a very worthwhile visit.

The jellyfish aquariums were some of the most impressive exhibits I've seen--seeing the different species of jellies up close from just inches away was amazing. Being able to touch the small rays and sharks was awesome as well. I also had no idea that some species of sharks don't give live birth but actually lay egg pods. Several were on display in aquariums that were due to hatch in July and August.

If you visit the Long Beach Aquarium of the Pacific be sure to at least use an online printable coupon to save $3 off the admission price, or better yet, save the entire price of up to 2 admissions by using the Entertainment Book Orange County edition!

Buy One Get One Free Coupon For Ripleys Believe It Or Not

2008-07-16T16:53:00.000-07:00

Today we visited the Ripley's Believe It Or Not Museum in Buena Park, California. We used a coupon from the Entertainment Book Orange County edition that was good for a free admission when you buy one.

The normal adult admission price was $13.95 so we saved $13.95 today. The museum took about an hour and a half to go through, and there are many interesting and bizarre exhibits from around the world.

If you're in the Orange County area looking for something interesting to do and you have an Entertainment Book Orange County edition, consider visiting the Ripley's Believe It Or Not! Museum for a taste of the unusual!

50% Off Coupon For Bogart's Coffee House

2008-07-15T17:37:00.000-07:00

We used a coupon from the Orange County Entertainment Book to get 50% off coffee drinks at Bogart's Coffee House in downtown Seal Beach, California.

Bogart's is located right off the Pier in Seal Beach, CA and makes fresh espresso drinks, lattes, and more. The atmosphere at Bogart's is friendy and laid back, and if you have some time to kill they even have board games you can play for free while you hang out there.

The coupon provided 50% savings up to $5. We used it for two coffee drinks and saved about $4 total. If you like coffee drinks and have an Entertainment Book Orange County edition, be sure to stop in at Bogart's and get a cup of coffee for 50% off!

Saved $5 Off $50 at Ralph's Grocery Store in California

2008-07-14T20:30:00.000-07:00

Today we used a coupon from the Entertainment Book Orange County edition to save $5 off $50 in groceries at the Ralph's grocery store in Long Beach, California. We bought some consumables and picnic goods including water, iced tea and snacks.

Ralph's also has a rewards program called Ralph's Club. We bought $78 in groceries and received 163 points, so it looks like you get about 2 points for every dollar you spend. You get $5 back for every 500 points you earn, so being a member of Ralph's Club seems to save you an additional 2% on your grocery purchases.

The Entertainment Book Orange County edition saved us $5 at Ralph's on things we were going to buy anyway. In addition to the $5 off $50 coupon, there were multiple $5 off $75 coupons in the book for Ralph's. If you shop at Ralph's and have an Orange County Entertainment Book, be sure to use the coupons to save $5 when you shop at Ralph's!

Target Weekly Ad Saves You Money

2008-07-08T21:18:00.000-07:00

Check out the Target Weekly Ad each week to save money on things you buy every day.

With gas prices so high, being frugal and finding savings in other areas is more and more important. We often shop at Target for savings on things we buy every day, and this week thru July 12 Target has pet products on sale including pet food, Fresh Step cat litter, and more.

A 23 lb. container of Fresh Step is normally up to $15 at pet specialty stores, and is regularly $11.79 at Target, but this week they have a bonus container with 5 free extra lbs. (28 lbs. total) on sale for only $9.99. Including 8.05% AZ sales tax, instead of paying 56 cents per pound at Target, with this deal it's only 39 cents per pound, for savings of a whopping 29%!

They also put common household products on sale each week. Right now they have Colgate toothpaste on sale for $2.50, and 12-pk Coke products on sale for 5 for $15.

If you have a Target store near you, be sure to check out the Target Weekly Ad online to save money on things you need to buy each week!

Free Starbucks Coffee And Free Wi-Fi

2008-07-04T17:16:00.001-07:00

Get a Starbucks Card and sign up for Starbucks Rewards online by Jul 14, 2008 and get free refills on brewed coffee, free beverage customization, a free Starbucks drink with the purchase of whole bean coffee, and two hours of free Wi-Fi access every day. Two free hours of complementary Wi-Fi is provided by AT&T at over 7,000 Starbucks locations nationwide.

Just buy a Starbucks Card and sign up online by either creating or using your existing Starbucks.com Account. Sign up with your Starbucks Card and accept the AT&T User Agreement no later than July 14, 2008.

You'll be able to access complimentary Wi-Fi as long as you have a Starbucks Card that was purchased, used, or reloaded in the past 30 days.

Get your free Starbucks coffee and free Wi-Fi access today!

IKEA Summer Sale

2008-07-03T21:35:00.000-07:00

The IKEA Summer Sale is on right now at many locations around the country including the IKEA Tempe, AZ store. You can get savings of 20% - 60% on select items across the store through Sunday July 6.

IKEA is well known for their modern and inexpensive furniture, kitchen storage systems, appliances, sofas, beds, mattresses, tables, chairs and decorations.

You can even go on line and check stock availability to find out if a particular product is in stock at your local IKEA store before you go shopping. Stock levels at IKEA change rapidly, so it's always best to check as close to the time of your visit as possible.

Check out the IKEA home page for details on which locations are participating in the Summer Sale and let us know if you find some super buys!

Tree Trimming & Tree Removal in Mesa, AZ

2008-06-25T22:08:00.000-07:00

If you're looking for a Certified Arborist to perform tree trimming or tree removal and you live in Mesa, AZ or the greater Phoenix East Valley in Arizona, I recommend you get a free estimate from Arboreal Tree Experts.

Arboreal recently trimmed two mesquite trees on our property and they did an excellent job. The crew arrived on time, answered all my questions, did a great job trimming the trees and cleaned up the site, leaving the property just like they found it.

Nathan Charlton, a Certified Arborist with the ISA (International Society of Arboriculture), actually performed the pruning cuts. The large Mesquite tree in our back yard, which is about 40-50 feet tall, was overhanging a neighbor's pool, so leaves and seed pods were falling down into the pool and clogging the pool filter. Nathan climbed up into the tree about 30-40 feet and carefully cut the branches one at a time, working his way around the tree and asking me whether I was OK with certain branches being cut.

I was impressed with Nathan's attention to detail and concern for the tree's health, aesthetics, how much of the tree should be pruned at one time, and also my own preferences regarding which branches were cut and which were left in place.

A couple of years ago we hired Arboreal to prune a couple of trees and remove one that was leaning against a block wall after some strong winds from a storm had pushed it over. They pruned the trees and thinned them out to make them more balanced and be able to weather strong winds better. They also removed the tree that was leaning, and ground the stump so it wouldn't grow back.

Arboreal Tree Experts perform quality Tree Trimming and Tree Removal services in Mesa, Arizona and the Phoenix East Valley area.

If you live in the east valley of the Phoenix, AZ metro area and you're looking for a quality tree service company, I highly recommend Nathan Charlton and Arboreal Tree Experts for any tree trimming, pruning, or tree removal work you need done.

411 Directory Info FREE From Google

2008-05-16T22:12:00.000-07:00

Get 411 directory information 100% FREE from Google!

Just dial 1-800-GOOG-411 (1-800-466-4411) from any phone. Voice prompts will guide you. State the location and then either the business name or type. Once you find the directory listing you're looking for you can even connect to them for FREE. If you call from a cell phone you can also get a free SMS sent to you that includes the phone number, and if you so desire, a link to a map for the business.

The service is currently available in English in the U.S., for U.S. business listings.

For all the details including an informative video, check out the Google 411 website.

Get 411 directory information for local businesses FREE from Google!

New Stock Positions

2008-04-29T22:33:00.000-07:00

Today I bought Southwest Airlines (LUV) and Corning, Inc. (GLW).

The management team at Southwest continues to impress me. Southwest is the only airline making money right now, due in large part to their ability to hedge against future fuel costs in the derivatives markets. I read this week that they're buying fuel for only $2.01 per gallon right now. The Wikipedia article on Southwest Airlines has more details on their fuel hedging strategy.

I also bought Corning, Inc. after reading about their latest quarterly revenue tripling due to LCD TV panel growth. Their factories are currently running at capacity, and they stated that "demand for liquid crystal display televisions and computer monitors are unhurt by the U.S. economic slowdown".

I also took a look but decided to hold off on adding to my position in MEMC Electronic Materials Inc. (WFR) today. Although I still like the stock, it looked set to close below its 200 day moving average today on almost double its average daily volume. I want to be sure it's able to hold above its 200 day moving average before committing any more money to it.

Have you bought any stocks lately? Which ones, and why?

Professional Real Estate Agent in Phoenix Arizona

2008-04-18T19:48:00.000-07:00

If you're looking for a professional real estate agent in the Phoenix, Arizona metropolitan area I highly recommend Gary Basden. Gary has over 30 years of real estate experience, he's extremely knowledgeable and works very hard for his clients. He also happens to be my father's cousin, so that worked out great when we needed to buy a home a few years ago!

We bought our first home back in 2003 and Gary helped us every step of the way. We got a great education on the whole process, and he always looked out for our best interests. The following year we recommended Gary to some close friends of ours who were looking to buy a house, and he helped them find their first home as well. In our experience, he truly cares about his clients.

Home prices and interest rates are the lowest they've been in years. If you're looking to buy or sell real estate in the Phoenix, Arizona area then I highly recommend you get in contact with Gary Basden and see if it might make sense to engage him as your agent. When you contact him, tell him Mark sent you!

Gary Basden - Phoenix, Arizona Real Estate Professional

Google First Quarter 2008 Results Up 30 Percent

2008-04-18T07:55:00.000-07:00

Google reported earnings yesterday and surprised analysts with a 30% increase in earnings over the same quarter last year. Contributing to this result were lower than expected taxes and strong ad revenues being generated outside the U.S.

This is the 12th quarter out of 15 since Google went public that its performance has exceeded analyst expectations. So is it time to buy some shares?

Evidently some institutional investors think so. The stock is already up 20% today in the first hour of trading with nearly 10 million shares traded--25% more volume than an average day.

As companies get larger it becomes more and more difficult to sustain double-digit earnings growth, so it will be interesting to see how Google does over the next few years. So far, their business model has paid their investors handsomely.

Anyone out there buying Google today, or better yet, did you own it yesterday?

How To Make Money In Stocks

2008-04-17T20:37:00.000-07:00

Yesterday I posted an article that mentioned Investor's Business Daily. Their website is a great resource to help you spot market leaders and identify buy and sell points.

One of the first books I read on investing was written by the founder of Investor's Business Daily, William J. O'Neill, and is titled How To Make Money In Stocks: A Winning System in Good Times or Bad.

To date the book has sold over a million copies and is now in its 3rd edition. In the book, you'll find Bill's CANSLIM system outlined, with an entire chapter dedicated to each letter:

C = Current Quarterly Earnings per Share: The Higher The Better
A = Annual Earnings Increases: Look for Significant Growth
N = New Products, New Management, New Highs: Buying at the Right Time
S = Supply and Demand: Shares Outstanding Plus Big Volume Demand
L = Leader or Laggard: Which is Your Stock?
I = Institutional Sponsorship: Follow the Leaders
M = Market Direction: How to Determine It

You'll also read about the nineteen common mistakes investors make, when to sell to cut your losses, and when to sell to capture your gains. How To Make Money In Stocks contains proven techniques on how to build a profitable portfolio and should be a part of every investor's library.

When The Stock Market Has A Strong Up Day

2008-04-16T21:41:00.000-07:00

Today was a strong up day in the stock market with the S&P 500 advancing 2.27%, the Nasdaq up 2.80% and the Dow up 2.08%. It was indeed a great day to be invested in index funds and stocks that are outperforming the broader market.

When the stock market has a strong up day like today you can learn a lot about which sectors and individual stocks are relatively strong, because they will generally outpace the broader market. This is due to institutional investors buying a lot of shares to either open or add to existing positions, bidding the share prices up in the process.

Three out of four stocks follow the direction of the broader market, whether up or down.

If you invest in individual stocks, on a strong up day like today take a look at how your basket of individual stocks have performed compared to the market's advance. Did any outpace the broader market advance? You may want to add to these positions. Are there stocks that are clearly lagging, or did some even close down in price on a day like today? These may be candidates you want to trim from your portfolio in exchange for stronger performers.

A great free online resource to help with such decisions is Investor's Business Daily, which lists stocks each day that have moved Up and Down in price with greater than average volume. This type of price/volume action represents institutional money that you don't want to be betting against.

When the stock market has a strong up day it's a great time to identify leaders and laggards!

How To Invest In A Recession

2008-04-12T20:24:00.000-07:00

Many friends and family members have been asking me lately how to invest in a recession, so I've put together these thoughts and recommendations:

The market's long term direction is UP. Populations grow over time and people always have to eat, wear clothes, have a place to live, and so on. Demand on goods and services increases as time marches on and over the long term the economy expands.

Patience is not only a virtue, it's a requirement. Housing recessions typically work themselves out after about 5 years, but who knows when this one will end. If you need to re-allocate your existing investments in order to reduce your exposure to volatile sectors of the market and obtain the correct balance for your age and the years left until retirement, do it. Then be patient while the market works itself out.

Max out your 401(k) contributions so you buy more stock as the market declines. Come to think of it, you should always max out your 401(k), but if you aren't contributing the maximum you can right now, now is a good time to increase it. In any case, invest in a good target date retirement fund if you have such a choice available to you. If not you can always allocate a percentage to stocks according to your age and time until retirement--a good rule of thumb is take 100 minus your age and allocate this percent to stocks, 10% to cash or money market funds and the rest to bond funds. Most financial advisors these days recommend you put 10% of your portfolio into international funds. I'm about 40 so here's how it breaks down for me:

100 - 40 = 60% stocks (50% S&P 500 + 10% International)
30% bond funds
10% cash or money market

Diversify, diversify, diversify. Put the majority of the money you invest in stocks into index funds (such as an S&P 500 index fund) or Exchange Traded Funds (ETFs), which are traded just like a stock but represent a basket of stocks just like a mutual fund. If you absolutely must buy individual stocks, put no more than 5% into each one.

The market won't stay down. People who buy stocks all throughout this downturn will make out like bandits over the following years. While it's true that stock markets go down faster than they go up, they simply go down less often. It's the shock of watching the market drop that's emotionally difficult for us, but it's the nature of the beast.

Focus on other activities besides babysitting your portfolio. It's spring and there are much more interesting things to do right now. Get out and enjoy the weather, plant something in your yard if you have one, visit friends and family, take walks. Life is short so enjoy today while you have it. Is worrying about the market or the economy the best thing you could be doing right now with your time? Not likely.

And my final thought...remember that dot com bubble back in 2000? The market WILL come back, higher than ever. Thing is, we just don't know when.

Do you have any thoughts on how to invest in a recession? Sound off and let me know what you think!

What Can We Do About Gas Prices?

2008-04-11T20:23:00.000-07:00

With the price of oil going through the roof, what can we do about gas prices?

We may not be able to do much about gas prices, but we can definitely do something about how much gas we use. Here are some things you can do to save money on gas:

1. Keep your tires properly inflated. Check the tire pressure each time you fill up for gas. Doing so is safer and gives you better control of your vehicle, saves wear and tear on your tires so they last longer, and saves you about 3% on gas.

2. Locate a gas station with cheap prices that is on your daily commute route or near where you live and fill up there. Where I live in Phoenix, Arizona prices vary about 5% between discount gas stations and name brand stations.

3. Remove items you don’t need to have with you from your vehicle. Hauling that extra weight around will cost more gas.

4. Use synthetic motor oil. This can save you up to 5% on gas.

5. Drive more moderately--reduce rapid acceleration and braking.

6. Drive during non-rush hours when there's less traffic. You’ll save money on gas and your commute will take less time, too.

7. If your job allows it, telecommute to work one or more days a week.

8. Give your car a tune up if it's due for one. A tuned engine uses less gas.

9. Keep your air filter clean, or replace it if needed.

10. Pay for gas with a credit card that gives you cash back. Chase, Discover, and American Express all have cards that pay you cash back on your gas purchases (and you can earn up to 5% cash back depending on the card you use).

11. Buy gas at warehouse stores like Costco or Sam's Club. This will typically save you 2%-3% on gas.

12. Whenever possible, plan your driving to be efficient and run several errands at once.

13. Avoid drive-thrus and wasting gas while your car is idling. Park your car outside and walk in for transactions at the bank, fast food restaurants, etc.

14. Walk, ride a bicycle or carpool whenever you can, or take public transportation.

What can we do about gas prices? Make sure we get the most bang for our hard-earned buck!

Got another tip? Tell us about it!

FREE Coupons for Tom's BBQ in Phoenix Arizona

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If you live in the Phoenix Arizona metro area and you like Chicago Style BBQ sandwiches, Vienna beef hot dogs, rib tips, beef brisket and more then be sure to check out my favorite Arizona barbeque restaurant: Tom's BBQ - Chicago Style.

Tom's is a nice little casual Arizona barbeque restaurant with two locations in Mesa and one in Tempe. At Tom's you'll get a great meal and it won't cost you a lot of money. They serve traditional barbeque items including a pulled pork sandwich (their best seller), chopped beef or chicken, hand carved beef brisket, and more. If you're into spicy, you might want to give their Spicy Hot Link sandwich a try. Side items include home cut fries, coleslaw, potato salad, macaroni salad, BBQ beans, corn cobbettes and more. If you need some great barbecue for a party or special function they also provide catering (here's their catering menu).

They're open for lunch and dinner every day of the week and their restaurants have a fun, casual atmosphere. Join their e-Club and you can save money by getting coupons and special offers emailed to you each month.

Tom's motto is “More meat falls off our sandwiches than most put on theirs", and from my experience it holds true.

Be sure to check out Tom's BBQ - Chicago Style and get a taste of why it's my favorite Arizona barbeque restaurant!