Archive for May, 2010

Credit Score and Credit History Basics

When it comes to staying on top of your finances there are few things that can have such a lasting impact as your credit history. Many people have heard the terms “credit report” and “credit score” before, but not everyone knows exactly what each means, and few are privy to the important details that make [...]

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Credit Score and Credit History Basics

Got Airline Miles? Maximize Their Value with these 8 Tips

[The following is a post from a friend of mine James Williams. Whilst waiting out a bad economy after college graduation, James worked at a major Atlanta-based airline. The brief stint gave him deep insights into the airline industry and he serves as a guide for family and friends wondering through the wilderness of [...]

Related posts:

  1. Thoughts on Airline Ticket Pricing For those thinking that I fell off a cliff and…
  2. Problems With American Airlines Credit Card This post is going to be bit of rant, due…
  3. Save Money On Airfare Yesterday, I mentioned how the wife and I recently traveled…
  4. Last-Minute, Frugal, Mother’s Day Tips Earlier this week I ran a contest asking readers for…
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Best Jobs for College Graduates

A lot of the best jobs for college graduates are in one of two fields, information technology or health care.  Forbes just published a list of the best jobs based on how much demand there will be in the years ahead and technology and health care related jobs were by far the most promising for college [...]

Comparing Different Types of Treasury Securities

This is the first article in a series focusing on bonds. I’ll start by discussing four different types of bonds: Series EE, Series I, Treasury Bonds (T-Bond), and Treasury Inflation Protected Securities (TIPS). Future articles in this series will be focused on Series I Bonds and how to purchase and redeem them.

With the stock market swinging up and down like the pendulum of a grandfather clock, treasury securities (bonds) have become quite the hot topic. One may not become rich from purchasing them (though it depends on how much is purchased, and how long until maturity), but bonds have many great characteristics that make them a part of any sound investment portfolio.

Just a few of these characteristics include the guarantee of the US Government that you will not lose your principal money, exemption from state and local income taxes (federal taxes must be paid unless you cash in the savings bonds to pay for college), low incremental investing to get started, and being able to confidently purchase them directly, thus cutting out the middle man and saving on fees.

Series EE

  • Maturity Date: 30 years
  • Minimum Holding Period: You must keep this bond for at least 1 year
  • How are you Paid: Both interest and principal are paid in one lump sum when you redeem
  • How is Interest Accrued: Interest accrues monthly, and is compounded semi-annually
  • Interest Rate: Fixed from the day you purchase it

Series I Bond

  • Maturity Date: 30 years
  • Minimum Holding Period: You must keep this bond for at least 1 year
  • How You are Paid: Both interest and principal are paid in one lump sum when you redeem
  • How Interest is Accrued: Interest accrues monthly, and is compounded semi-annually
  • Interest Rate: Fixed rate from the day that you purchase until maturity, plus an inflation rate premium that changes every six months in May and November (your yield will be these two rates added together)

T-Bond

  • Maturity Date: 30 years
  • Minimum Holding Period: None
  • How You are Paid: Every six months you receive interest money; when you redeem you will be paid the face value
  • How interest is Accrued: Every six months interest earned will be paid to you
  • Interest Rate: Fixed rate from the day that you purchase until maturity

TIPS

  • Maturity Date: 5 year, 10 year, or 30 years
  • Minimum Holding Period: None
  • How You are Paid: Every six months you receive interest money applied to the adjusted principal; when you redeem you will be paid the adjusted face value or original face value, whichever is greater (principal changes in accordance with monthly changes to the Consumer Price Index to account for inflation and deflation)
  • How Interest is Accrued: Every six months interest earned will be paid to you
  • Interest Rate: Fixed rate from the day that you purchase until maturity

As you can see, each of these bonds offers their own assets to your portfolio. For more information on any of these, and also on Treasury Bills and Treasury Notes, please see TreasuryDirect.

In the next article of this series, I will discuss the Series I Bond in more detail, as well as take you through the process of how to purchase them.

Written by Amanda


Click here to leave a comment on this article.

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Zecco Launches Zap Trade

Since I became a customer of Zecco Trading three years ago in 2007, I have seen Zecco made many changes, to both its website and the products it offers. For most of the time, however, I wasn’t that impressed by the change, until I saw its latest invention, Zap Trade, which I think is probably [...]

Original Post on The Sun’s Financial Diary

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Zecco Launches Zap Trade

Residential vs. Commercial Real Estate Investment Comparison

This is a column by our resident real estate expert Rachelle.
I actually live and work in the Toronto area, in Ontario and this post is about different kinds of properties you can invest in and the benefits and pitfalls of developing a portfolio of properties that is not residential.
Law
Residential Property
The law in Ontario for residential [...]

letter from a thief

Hello,
I wanted to see how you were doing these days.  I know you never expected to receive a letter from me, but I’ve often wondered what my crimes against you did to your life.  I think you should know they weren’t crimes of passion:  I planned every minute.  I tricked you, I forced you, I [...]

letter from a thief is an original article from the website brip blap.

How to Cook Cheap Meals

With the way the economy is going, everyone is looking to come up with ways to save money every month. Grocery bills are no exception. The rising cost of groceries is forcing people to come up with cheap meal plans for their families. This can often times prove to be a difficult task, but there [...]

Post by Frugal Dad

Passive Investing vs Active Investing: Strategies For The Stock Investor

For experienced and first time investors alike, the plethora of investment vehicles and options can be overwhelming. It seems that on a nearly daily basis, some new innovation with unlimited promise and appeal sprouts through the already crowded investment landscape. Like many things, however, it behooves us to keep our investment styles simple. Believe [...]

Passive Investing vs Active Investing: Strategies For The Stock Investor

Poll: Where Do You Turn for Financial Advice

Where do you turn for financial advice? These days you have a lot of options. The traditional media feeds us money advice 24/7, there are hundreds of personal finance blogs such as this one offering tips and commentary, you still have friends and family to turn to, or maybe you don’t want to be bothered [...]

About the Author: Jeremy is a retirement planning specialist and founder of Generation X Finance and the guide to Financial Planning at About.com. To learn more, follow Jeremy on Twitter.

Poll: Where Do You Turn for Financial Advice

Have You Tried Peapod Groceries?

We used Peapod online shopping and delivery for our groceries for the first time this week.

The Peapod delivery concept is pretty simple. You create your shopping order online at Peapod, select a delivery time, and they deliver your groceries to your door.

Sounds great, right? Let’s take a closer look at the Peapod delivery service.

My Peapod Review

Overall, I was impressed with our first order. The Peapod delivery man was prompt and very friendly. He took the time to explain how everything worked and chatted with us about the Peapod service.

Peapod sent along a welcome gift with lots of fresh fruit, so we could try various produce. Everything was fresh, including the bananas, which are always terrible at Costco and our local grocery store.

I was happy with the overall cost, which I saved money on for our first order, but I’m going to have to try it some more to see if the entire order price, with the cost of delivery and tip, can consistently beat our local options.

Peapod Price Comparison

The Peapod sale prices were pretty comparable to our local sales. I went through a few months of old receipts to compare best prices and didn’t find much difference.

The difficult prices to compare were for fruit and vegetables. Our grocery store prices produce by the pound, whereas Peapod prices by the item, so I’ll have to keep an eye on that category for awhile.

Peapod Fees

Since the sale prices were in line, the break even point is going to be based on the delivery and tip. Here are the Peapod delivery fees:

  • Spend over $100.00, the delivery charge is $6.95.
  • Between $75.00 & $100.00: $7.95
  • Orders less than $75.00: $9.95

There was also a fuel charge of $0.58, and we tipped the delivery man $10, (which I have no idea if that is reasonable or not, as we’ve discussed before, how much should you really tip?)

Peapod Discounts

To offset the fees, you can take advantage of various Peapod discount codes. We were able to cover all the fees with the following Peapod coupons:

  • Peapod promotional code. Peapod offers a promotional code for $10 off for first time shoppers.
  • Facebook. The Peapod Facebook site has Peapod coupons (like the recent $5 off $20).
  • Delivery Discounts. Selecting an expanded delivery time is $2 off each order.
  • Payment Discounts. Pay by check and get $1 off each order (although it may be better to use a cash rewards credit card).
  • Free delivery. After your first order, they give you a Peapod coupon for free delivery for the next 60 days.

How to Save Money with Peapod Groceries

After you factor in all the fees and take advantage of the Peapod promotions, I did find some additional ways to make Peapod delivery worthwhile:

  • Sort by Unit Price: My favorite item is the sort by unit price. Always get the cheapest item without having to look at everything in the store.
  • Any Coupons: The Peapod grocery delivery man told me that they will accept any kind of coupons, including Target or our local grocery store, etc. I haven’t been a big fan of couponing since I swore off super couponing, but if I can look for the coupons after I place my order, there is much more appeal.
  • Upromise: Peapod also gives you credit for your Upromise account.
  • Avoid impulse shopping. There’s no need to play the supermarket mind game where you have to walk to every corner of the store to cover bread, milk, meat, and produce and pick up miscellaneous things that catch your eye while you walk by.
  • Running Total. While I was shopping, I saw that my total was nearing $120. However, our weekly budget is $100, so I was able to review my list and remove some items I didn’t think we really needed. Try doing that at a grocery store! This was huge for me, because we all know that groceries are where our money seems to leak out of our budget.
  • Referral program. You can refer your friends to Peapod and you both get $10 off.
  • VIPea loyalty program. If you use Peapod frequently, you can also qualify for their VIP program. I’m not completely sure what this entails, but I’ll ask our driver next time. I’ve heard you can earn free delivery coupons with the VIP program.

My Favorite Peapod Perks

  • Smart Shopping. For future orders, you can pull up a list of all the previous items you purchased that are currently on sale. So each week, it should go faster.
  • Nutrition. They have filters for food allergies, healthy foods, and weight watchers, so you can sort by price and keep an eye on the nutrition. My biggest concern when shopping by price, is compromising nutrition, so it’s nice to be able to easily do both.
  • Cooled Delivery Bins. The delivery man let me know that we can call him if we won’t be home, and he’ll just leave our groceries in coolers on our porch, which is fantastic!
  • Change Your Order. If you’re like me, you get home, and realize you forgot something at the store! The best part about Peapod, is that you can log in up until 11pm the night before delivery and change your order! You can add, delete, or change. My husband also liked this option, so he could add in some munchies after I placed our order!

Peapod Overall

Did I mention, I didn’t have to drag 3 small kids to the grocery store? That right there was probably worth it!

Overall, I was really pleased with the Peapod service. If you’re willing to put in a little legwork, it looks like you can make the prices comparable to local options. I’ll have to work on comparing the prices to buying in bulk.

Since we’re going on vacation next week, I’m going to try it again, and schedule a delivery for the day we get home. That will be fantastic, because there’s nothing I hate more than getting home from a long trip, and having to run to the grocery store to restock the fridge!

Have you tried Peapod? What did you think?

Written by Madison


Click here to leave a comment on this article.

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College Graduates & Credit Scores

Getting insurance after college was yesterday’s topic, along with a few tips on managing your credit after graduation.
I had a few follow up questions come in about credit reports and credit scores so today I’ll talk more about how your credit can affect your life after college and what you can do about it.
Renting an [...]

Savvy Online Shopping Strategies

Make no doubt about it, hitting the mouse instead of the pavement can be an easy and effective way to not only save money, but gain convenience as well. As with anything else, though, there are “do’s” and “don’ts” and “hits” and “misses” when it comes to making sure your online shopping adventures are as [...]

Original Post on The Sun’s Financial Diary

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Savvy Online Shopping Strategies

Using Put Options to Protect Your Portfolio

As options are a fairly sophisticated method of investing/speculating, I rarely write about them as I’m a big believer in sticking with the basics.  However, with the expectation of some sort of market correction between now and October 2010, I’ve had thoughts on ways to hedge a portfolio to reduce the potential for loss.
One way [...]

How Nintendo Wii Sports & Wii Fit Cut Down on Gym Membership Costs

What are some cheap ways to exercise?
I’d like a way to keep fit and burn calories so I could drop a bit of weight and to stay healthy. So I thought about joining a gym. The only problem is that I typically become pretty self conscious when exercising in a public space. Plus, there [...]

How Nintendo Wii Sports & Wii Fit Cut Down on Gym Membership Costs

Media Center Workout (and Personal Finance Links)

This weekend I got the media server that I recently talked about online. The timing was pretty good. Due to the Celtics and Red Sox putting a hurt on the Magic and Yankess respectively last Tuesday, I had missed the beginning of Glee. I had grudgely mentioned that I watch the show [...]

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How to Find a Summer Intern Job in Recession

Jobs have become very hard to come by for nearly everybody in this very tough economy. While things may be better now than 12 months ago, the nation’s unemployment rate is still hovering around 10%  and more people are out of work right now than ever before in this generation. With everything in the business [...]

Original Post on The Sun’s Financial Diary

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How to Find a Summer Intern Job in Recession

3 Ways to Use Life Insurance During Life

One of the main tenants of financial planning is minimizing risk. Having an emergency fund is one way of doing this, as are health insurance and disability insurance. But perhaps the biggest way of minimizing financial risk for your loved ones is life insurance.

Life insurance is an absolute must for anyone with dependents, as well as for anyone with large debts (such as a mortgage) that exceed personal assets. Life insurance provides your family with a means of paying off your debts and replacing your income, if only temporarily, in the event of your untimely death.

At some point, though, your family may end up in a situation where they don’t really need the money after death – maybe you’ve paid off all your debts and left healthy savings/retirement accounts for your heirs.

Alternatively, you might need the money while you’re still living to pay for long term care or other large, unexpected expenses. Or, you might just find that your current policy is not the best for you, so you want to get out before you sink anymore money into it. In some cases, using life insurance while you are still living is both possible AND the best financial choice for you and your family.

Surrender Your Life Insurance Policy

Perhaps the most straightforward way of tapping life insurance during life is by surrendering the policy. This simply means that you inform the insurer that you no longer wish to pay the premiums (if you are still paying) and/or that you wish to “cash out” of the policy now.

This option is available on life insurance with cash value – most permanent insurance policies – you will simply receive the cash value component of the policy. Be aware that the cash value will be far less than the face value of the policy (the amount your family would receive at death). In some cases, it will actually be less than the amount you paid in premiums, particularly if the policy is fairly new. You will owe taxes on the proceeds to the extent your receipts exceed the premiums you paid in. Surrendering your cash value life insurance policy is probably the best option if you want to get out of a policy you feel is no longer beneficial to your family – you can cut your losses and move on.

Life Insurance Settlement

If the surrender value of your policy is lower than you’d like, or surrendering is not an option (as in the case of term policies), you may instead consider a life insurance settlement. Life insurance settlements are essentially selling your policy to an investment company. The company will pay a certain amount to you while you are alive, continue paying premiums as long as they are owed, and then receive the face value when the insured dies. Once again, you will not receive anywhere near the face value of the policy, but you may end up receiving more than the surrender value that the policy. As with a surrender, you will owe taxes on the proceeds of the sale to the extent they exceed your premiums.

Life Insurance Viatical Settlements

Viatical settlements are similar to life settlements, but they are designed for a certain type of insured, and specifically defined and governed by the IRS. A life insurance viatical settlement happens when the insured is terminally ill (expected to die within 24 months) or chronically ill (unable to perform certain activities of daily living). Viatical settlement payments involving the terminally ill are not taxable. Payments for policies covering the chronically ill are not taxable as long as the proceeds are used for the care of the insured. Viatical settlements may be good if a terminally ill person is not leaving behind beneficiaries or debts and wants to use the money to either enjoy the last few months or life or pay for final expenses.

Things to Consider

First and foremost, you should not use your life insurance policy during life unless a) you absolutely have to or b) your family absolutely does not need the proceeds after death. It may be tempting to cash out to take nice vacation or pay off debts, but you could leave your family in a huge lurch later on. That being said, if you are facing large medical bills, long-term care expenses, or other unexpected situations, you may not have a choice. If you think life insurance settlement is for you, talk to an estate planning attorney and accountant before making a decision. Remember that you will have tax consequences that your family would otherwise avoid (life insurance proceeds at death are usually tax-free).

Finally, realize that for most people, cashing in a life insurance policy should be a last resort. If you are young and healthy, take plans to save and invest now, so that you don’t find yourself facing this decision later!

Written by Jill


Click here to leave a comment on this article.

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College Graduate Insurance & Credit Tips

As a recent college graduate, things like health insurance and your credit score are topics you’ll have to start figuring out now that you’re venturing out on your own.
Health Insurance for College Graduates
The good news is that finding temporary health insurance for college graduates may not be as urgent as it once was.  One [...]

Preparing for Your First Post-Grad Interview: The Importance of Being Well-Read

(Steve’s note:  This is a guest post; I thought I would point it out since the references to Russia might make it sound like me!)
Funny story: Less than a year before I graduated from my alma mater, I studied abroad in Russia for a semester, and encountered some–needless to say– bizarre experiences. One that stands [...]

Preparing for Your First Post-Grad Interview: The Importance of Being Well-Read is an original article from the website brip blap.

How to Buy a Foreclosed Home

I have always had a general interest in real estate, which is a little strange, since until just recently I leased or rented homes, or shared one with a family member. Buying our first home was confusing enough as a first-time home buyer, but considering how to buy a foreclosed home as an investor seems [...]

Post by Frugal Dad

Public Savings Bank Secured Card Review

If you want to make online purchases or find that it’s a hassle to carry a lot of cash around for your purchases, then a credit card can be a useful financial tool. However, if your credit history is sparse or you’re trying to recover from bad credit, you may find it difficult to [...]

Public Savings Bank Secured Card Review

summer colds, and links

I don’t know if there is anything more pathetic than a kid with a summer cold.  While the sun shines and the grass gleams, my two kids are hacking and coughing and drifting listlessly around the house with a nasty virus.  Both have had fairly high fevers which makes taking them out in the hot [...]

summer colds, and links is an original article from the website brip blap.

Where to Find the Best Interest Rates on Savings

I am not much of a “rate chaser.” However, because I lean towards a fairly conservative investment strategy (growing even more conservative thanks to recent volatility), I keep an eye on interest rates for savings account, CDs, etc. Looking for the best interest rates on savings these days does not normally yield anything worth writing [...]

Post by Frugal Dad

ShareBuilder Stock Market Investing Survey

ShareBuilder, an online discount brokerage, ran a survey of investors at the beginning of this year to find out how the volatile stock market had effected their perception of investing. The criteria that ShareBuilder used was:

“investors between the ages of 21 – 65 who have an investment account that enables them to buy stocks, funds and other [...]

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