Money Matters

The worst thing about this whole mess is that the ones who played major roles in getting us into it (besides ourselves, that is - individuals still chose to take the risky loans) have been the ones who are supposed to solve the problem! That's ludicrous. And that covers the executive branch, Congress, the Fed and others. Talk about the inmates running the prison. How many people tasked with addressing this crisis didn't even pay their own taxes?!! If it wasn't so deadly serious it would be funny.

Hi, guys. I've always saved a percentage of my income. I've been self employed for decades so a 6 month buffer was the goal. This worked well until I had a medical setback. I recovered well enough but the meds gave me wild mood swings, happy one minute and looking for something to kill the next. My work suffered, income dropped. Lots of old clients went elsewhere.
I know how it is to feel blue, Harper.
Fortunately I reached retirement age before I went bankrupt AND Massachusetts offered a low cost health plan. My health insurance was eating a third of my income, draining my savings before I signed up. Not every medical practitioner accepts the state plan but enough do, I just have to look around.
Example: A tooth extraction. Not accepted = $325, accepted = $145 out of pocket.
My retirement fund is my home. When I can no longer keep up I'll go for a Rex Agreement not a Reverse Mortgage.
Now for the reason I came here, lol.
Victor, was it you who told me about Zazzle a couple years ago? Well it's taken a long time for it to work but I'm finally making money on Z. Sales are picking up exponentially with the number of items I offer. I work at home at my leisure. A sale of 125 grocery bags yesterday kicked my store into high gear. I'm jumping for joy, pumped and ready to push harder.
I'll continue painting as long as I can while Zazzle slowly takes over.
Andy P

Great to hear, Andy!!! Yes, that was me. I knew about it from the DG t-shirts. Happy to have helped. So are you not doing painting at all anymore??

Yes Victor, I'm still doing interior painting. I no longer do murals, faux finishes and wall papering is dead. I don't advertise any more, there are lower height restrictions and my service area is closer to home.
As of 2010, Fantasy Finishes painting is under the table, shhhh. I'm 64 yo in fair health, time to slow down and enjoy what's left before it's too late.
Running an on-line business works fine until I earn enough to declare it as income, maybe next year. Nobody gets rich on Z but the monthly check helps.

I applaud your decision, Andy. Never know what life holds for you, as I have found out too often recently. Many young friends and family passing away.

How about a kink to your Zazzle store? Maybe you'll get some takers here.

.

This message was edited Mar 4, 2010 12:35 AM

You're stuttering, Jen.

Hi Andy! Great news on the Zazzle sales.

Got the hiccups, Jen?

Talking about the way the economy is designed to promote selling products reminded me of this video I saw, called The Story of Stuff. http://www.storyofstuff.com/

That was crazy

Kind of ridiculous that 70% of the economy is consumer spending, yet the 'experts' say we spend too much and save too little. Pull back a bit on the spending and we're in a recession. Duh!

Victor, here's a kink ~ do a search for Pariseau's Market. It's also on my profile page.There's a pic of Sarah and me for Jen, too.
Harper, love the Conspicuous Consumption link.
Getting back to the theme of this thread. How many of you have a Will?
A small job this week included repainting a kids bathroom I did about 8 years ago. It's beige now. Kinda sad to see this one go.
Andy P

Wow - as part of its austerity plan to deal with its crisis, Greece upped its VAT tax to 21%!! Ouch. California should watch carefully.

Very cool bathroom, Andy. Yes, sorry to see it go.

No, I don't have a will. DH doesn't either. I'm uncomfortable about it, too. Gotta get that done.

Very nice, Andy!

Yes, that is the one thing we still need to do! Not avoiding it or anything - just haven't done it. You should do a healthcare proxy too - very important.

What's a healthcare proxy?

Spells out your wishes in the event of serious or terminal illness and designates a person to carry it out - like the executor of your will.

Here's the NY one, Harp:

http://www.health.state.ny.us/professionals/patients/health_care_proxy/intro.htm

Oh, okay. Do we have to have our lawyers write these up for us?

It's late tonight and I want to go to bed now, but while we're talking about money matters, I need a new car, but won't be able to afford one for a few more years. I want to figure out what my best avenue would be to keep this one going. I need a new driveway too. It looks like a pothole mess. The people who laid the asphalt did it straight over the soil with no prep. It's as lumpy as lumpy gets! Oy, the worries go on. I have no health care either...

No - you write it yourself.

Sorry your asphalt wasn't laid right. ^_^

i used to have a will, health care proxy, and power of attorney before i got married again. need to go and get them done again have been thinking about it for a while - also not a bad idea to have a trust done. i the mean time it all goes to the better half which it would anyway. anything i leave to my kids will be given in increments until i satisfied they would not blow it all on $500 shoes, sunglasses, and other crap no one needs.

DH & I made a will as soon as we had our son---wanted to spell out who would have him in the case of disaster. Good luck with the retirement, Andy! You'll have more time to spend with Sarah. Harper, sorry about the drive----I'd love to put pavers in mine, but not unless I win the Lotto.

Ouch! I said when the Euro was first introduced that I did not think it would survive a real crisis. We may find out soon.

http://www.guardian.co.uk/business/2010/mar/05/bild-open-letter-greece-papandreou/print

No, no will, heathcare proxy forms at any hospital when you check in or just visit, just me and DW and she is #2 on all my financial matters and vice- versa, no complications to worry about. ...She promised to drop a $20 in the coffin in case I need some ready cash, I'm good to go! Yipee!!... (lol!)


This message was edited Mar 5, 2010 11:26 PM

I just handled a financial advisor. I give up trying to figure it out myself - I make all the wrong moves. Investing in cats is just not paying any dividends! (I'm smiling because crying wastes water.)

just do not let an "advisor" talk you into an annuity - they make 6% of what ever you put in - you could just invest it yourself and move it around as you like - with an annuity you are looked in with penalties if you want to get out - any adviser that suggests an annuity should be asked what the commission is - they are thieves!!

Ok, I received a check from my mom's life insurance. What should I do with it???

if you have no credit card balance or no immediate needs - invest it.

Assuming it's less than a couple of million, put it in the bank and sit on it for awhile, take your time, talk to hubby, think things out first. Open a new bank acct with it if ness and put it 'on ice' until you decide what to do...

i agree with watercan - put it in a money market fund - do not accept the check book - and think things through before deciding what to do.

Boy talk about those checks, I had an acct with Chase a few years ago and they sent checks every month! Very annoying! I used to shred them all the time! I closed out that acct and trans the balance to another bank which doesn't do that lol!

wha - This adviser comes very highly recommended and I am paying for his services on a retainer and HAVE to meet with him 4 times a year - his requirement. I have two roll-over IRAs that really need to be producing something and I can't do it myself. I have more than I thought when I got the balances - but after I pay taxes on what I take out as income in the future - there really isn't enough. But then - is there ever enough? Sigh. Thank goodness I can grow some of my own food.

Flowerjen, Pay down your mortgage if you have one. Pay off credit cards, too.
Andy P

My own approach to unexpected money is to look at three possibilities - spending on something necessary or that will add value to the home, etc., pay down debt, or invest.

If you have credit card debt or any high interest debt - that comes first. That should be a no-brainer. If your mortgage interest rate is high, consider using some of the money to pay for refinancing. Otherwise, consider paying down some of the balance. It's always a balancing act to choose between investing vs. paying down debt. If you are reasonably confident that a certain investment will return a good rate, then you should consider it. Investments are tough right now, though you do have a longer horizon because of your age. You definitely should put some away for the kids' college funds.

Easiest solution is to just give it to me. ^_^

Cat - I hope he does not work on commission.

If it's a significant amount, park it in a tax-free money market while you decide.

WC-considerably less than a couple mil.... lol
We have no credit card balances or car payments, we don't have high interest on our mortgage and it's not alot (by todays standards)we already pay extra payments on it.

Part of it I wanted to maybe buy some furniture or save it for our bathroom remodel???

Bathroom remodels can be pricey, I know this lady who just spent 30k doing a bathroom, lots of custom tile work w/ those special inlaid glass custom tiles, the tub, the sink, counter, all lots of 'mula'! lol!

Wow that's a lot of $ for a bathroom.

I think 15 or so is more typical. But they are $. Kitchens and baths.

I can see 30K for a kitchen, but then again, not really, cause hubby would do most of the work and we belong to Direct Buy(I'm sure you've seen the ads)

Yeah! My SIL is a member of Direct buy! When DW and I were looking for a house one of the ones we saw just had a 40k kitchen done, it looked like a library with all the wood! lol!
(I told the guy not to show me anymore houses with 40k kitchens lol!)