Archives for December 2006

Median Housing Price to Income Ratios For Various Cities

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

A good source for population, housing, and economic data for your area is FactFinder.Census.gov. From the 2005 data provided, I decided to compare the median value of housing to the median household incomes for various cities (with a West Coast bias). I then calculated the ratio of housing price to income and plotted them:

altext

Here’s the actual data:
[Read more…]

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Update to My Rough Guide To Money and Investing

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

I just made an update to My Rough Guide to Money and Investing, a loose framework of some of my more general money-management tips. Hopefully this is more organized and easier for everyone to digest than trying to dig through the archives.

So you can keep up with future updates more easily, I’ve also placed it in my “Popular Posts” section on the top right of every blog page. It’s replaced my $20 Emigrant Direct Savings Signup Bonus, although that’s still going strong.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


$250 Bonus for American Express Business Card

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

The American Express Platinum Business Premium Cash Rebate Card is again offering a $250 statement credit (update: removed) after your first purchase, with no annual fee. If you got in on this last time like I did, you may not be able to get it again unless you have a 2nd business – “You may be permitted to have more than one American Express? Business Card account; however, you are eligible to receive only one promotional $250 statement credit per unique business.”

See other similar $100+ bonuses here.

Added: I just saw this if you click on “Special Offer” in the upper-left – “Note: Only business owners who received this offer via Inc. Magazine qualify to apply for a Card through this website.” I don’t remember seeing that last time, so watch out.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


December 2006 Investment Portfolio Snapshot

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Now how about a snapshot of our investments, as of the end of the day 12/15. Remarkably, our investments have increased $4,911 (7.3%) since my last update in October. Another example of how I can’t predict the stock market. We’re already done contributing to our Roth IRAs and 401ks this year, so we haven’t made any new deposits. Everything has been going into the house down payment fund.

I did realize that I’m not including my Bridgeway investments in my net worth calculations. This is because Bridgeway does not work with Yodlee, and I never remember to log into their website. Oops!

Retirement Portfolio
Fund $ %
FSTMX – Fidelity Total Stock Market Index Fund $11,058 15%
VIVAX – Vanguard [Large-Cap] Value Index $13,775 20%
VISVX – V. Small-Cap Value Index $13,748 19%
VGSIX – V. REIT Index $8,813 12%
VTRIX – V. International Value $7,821 11%
VEIEX – V. Emerging Markets Stock Index $7,500 10%
VFICX – V. Int-Term Investment-Grade Bond $7,596 10%
BRSIX – Bridgeway Ultra-Small Market $2,056 3%
Cash – Unreinvested Dividends
Total $72,367

[Read more…]

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Specific Mutual Fund Investment Ideas For Beginners

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

(Note: This is an older post from my archives, and was last revised in 2007, so some things may be out of date. Please check out my investing guide for more recent material.)

Although I get asked regularly to do so, I’m always wary of making specific investment advice . I’m haven’t passed any securities exams, and I have no financial letters after my name like CFA, CFP, CIC, or ChFC. I’m just a SRDO – Some Random Dude Online.

At the same time, I also appreciate the fact that people like to hear some specific suggestions in order to jumpstart their own research. It’s like being told “go buy a good used car” versus “check out the 2002-2004 Honda Civic (7th Generation, but not the 1st year) with less than 60,000 miles on it.” It’s not the perfect answer for everyone, and you may not even buy that car, but it gives you something to work with.

With that in mind, this is what I would tell my sister to invest. Not you, because I don’t know you. 🙂 She’s in her early 20s, recently out of college, working in her first professional job, and trying to balance renting in a big city, being young and trendy, paying back student loans, and oh yeah! – also retirement. She’s busy, doesn’t feel like reading the books I recommend just yet, but has some extra money now to put away for the future. So what does big bro tell her?

Get investing! You need to do this now so you can:

  1. Reduce your risk in the long run
  2. Get used to the ups and downs of the stock market (so you don’t just bail out later).

Option 1: No Money Down?
Set Up An Automatic Transfer at TIAA-CREF or T. Rowe Price

If she’s doesn’t have much to start with but is willing to set aside $50 every month, you can open an account at T. Rowe Price or TIAA-CREF with no initial investment minimum. If you’re in your 20s, look at the T. Rowe Price Retirement 2045 fund (TRRKX) or TIAA-CREF Lifecycle 2040 (TCLOX). Both seem to be solid companies with good customer service. They will get you “in the game”, are very low-maintenance, and will leave you with plenty of time to refine your tastes afterwards.

The good thing about starting low is you’ll get gradual exposure to the volatility of the market. In the beginning, it took me a while to get used to the fact that my balance could easily be much lower than it was yesterday. That can be very disconcerting for those only used to bank accounts.

Option 2: Think Long Term
Open Up An Account at Vanguard

I make no secret that I really like Vanguard. They have reliably low expenses, are fair and upfront about their fees and how they are compensated, and they are client-owned. Although they may have some higher fees in the beginning, I believe that over the long run their low expenses and indexing-expertise will result in superior performance. This is a company that I can see sticking with for the next 50+ years. So here’s one strategy using Vanguard for any account size:

Less Than $1000 – If she has less than $1,000, I’d tell her to just stick it in a high-yield savings account. Set up some automatic transfers from her checking account after each paycheck, and start building that up until you have…

$1000-$3,000 – Here, the only fund that’s available is the Vanguard STAR Fund (VGSTX). You can open up with $1,000 to start and add in $100 more at a time. It’s an okay fund, currently with 63% stocks, 25% bonds, and 12% cash. The point isn’t to get the perfect asset allocation right away, it’s to get get started. Again, see the two main goals above.

$3,000+ – When you get to this amount, exchange your shares into the Vanguard Target Retirement 2045 Fund (VTIVX). Since it’s in an IRA, there are no tax consequences or paperwork to worry about. See my post comparing Vanguard and T. Rowe Price Target funds for why I like it the best.

For all Vanguard IRAs, there is a fee of $10 a year for each fund account with a balance of less than $5,000 (waived with high overall balances). Use the $10 as a specific savings goal – “I will eat out one less time this week, saving $10”. Then write Vanguard a check for the $10 separately, so it’s not taken out of your Roth IRA balance. You want all that money compounding away! These fees are now waived with e-statements!

With all of these options, it is always a good idea to set up automatic transfers to avoid the “I forgot again because I was busy” factor. Also, feel free to call any of these companies on the phone. You should get a helpful human quickly, I always do with Vanguard.

Anyways, I hope these suggestions provide some good starting points for your own research. I sure hope my sister listens to me! As always, comments are welcome.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Bank of America $250 Best Mortgage Value Guarantee

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

I was chatting with my local Bank of America banker about mortgages, and she mentioned that they have a Best Mortgage Value Guarantee where if you apply for a mortgage with them, but end up going with another lender, they will give you a check for $250. So if you’re shopping for mortgages, it can’t hurt to include them in your search.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


StartSampling: Get Free Product Samples

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

I got some reader requests for more Bored Money entries. Remember, this category is for stuff that I feel has a relatively low reward-to-effort ratio. This usually includes things that involve taking surveys or that involve smaller or non-guaranteed payouts, as compared to the fatter rewards like $100 signup bonuses or free iPods that I put in the Deals & Offers posts. They also tend to be things that are always available. In other words, you can save them until you’re bored!

Coincidentally, I just got another e-mail from StartSampling.com. As the name suggests, you give them some of your demographic information and they match you up with manufacturers that are looking for feedback on their products. You pick what you like, and it gets sent to you free in the mail. I’ve gotten things from food to soap to various coupons (nothing worth over $10). I just picked up a sample of Swiffer dusters. Just stick to the “Select Samples” area and avoid everything else. The “Tryer Miles” points system is largely useless, as there is nothing to redeem them for.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Why Your CLUE Report Is Important

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Follow-up: Not being a homeowner, I may not have adequately expressed the importance of knowing what’s on your free CLUE report. For a better explanation, see this MSN article titled “Insurers keep a secret history of your home“. If they decide your house is high-risk, even if you don’t file a claim, finding homeowners insurance may become next to impossible. This is also something to be wary of when buying a house. Link via Consumerist.

Don’t tell your insurer about problems unless you’re sure you’ll file a claim. This last piece of advice is unfortunate, because insurers and insurance agents can be a decent source of counsel on whether it’s worth filing a claim. Since any damage you report could get passed on to the CLUE database, however, it’s smart now to err on the side of caution.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Free iPod Shuffle For Trading At HedgeStreet.com

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

(This offer expired at the end of 2006.)

Hedgestreet Logoaltext

Is it just me or are iPods quickly taking over the world? A new trading site, Hedgestreet.com, is offering a free 1 GB iPod Shuffle for opening an account, funding with at least $100, and making one trade. No trading fees for the first 30 days. You can start trading immediately when you open the account. However, this is because you cannot take out your money for 30 days after deposit.
[Read more…]

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


What Do You Want Me To Write About?

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

I’d like to know what topics that you’d like to learn more about, whether it is something personal related to me, or a financial topic in general. Please go ahead and leave an anonymous comment in this post (type in anything for name and e-mail). I won’t publish them, it’ll just be between you and me. I can’t make any promises, but I will take each suggestion into consideration. Thanks!

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Get Your Free Credit and Insurance Reports Before Year’s End

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Before we get really close to the end of the year and things start getting frantic, I just wanted to remind everyone to get all the free stuff that the government promised you via the FACT Act:

Free Credit Reports from all three bureaus at AnnualCreditReport.com. I’ve already gotten all of mine. I put in a request to fix a minor error my address, but I don’t think I ever got a reply. Grrr. I’ll have to try again.

Free CLUE Insurance Report at ChoiceTrust. This shows your previous auto and home insurance claim history. More details here. Mine was thankfully mistake-free.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.


Death and Taxes: A Visual Guide to the Federal Budget

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone.

Ever wondered where your taxes went? Who has the time to actually read our $2.8 trillion budget? Well, now there’s an easier way: the incredibly high-res Visual Guide to the Federal Budget. From the site:

Knowledge of how your taxes are spent is essential to being a responsible citizen. If people actually knew what their thousands of dollars of income taxes paid for, there would be rioting in the streets, or at least some more accountability in Congress.

My Money Blog has partnered with CardRatings and may receive a commission from card issuers. Some or all of the card offers that appear on this site are from advertisers and may impact how and where card products appear on the site. MyMoneyBlog.com does not include all card companies or all available card offers. All opinions expressed are the author’s alone, and has not been provided nor approved by any of the companies mentioned.

MyMoneyBlog.com is also a member of the Amazon Associate Program, and if you click through to Amazon and make a purchase, I may earn a small commission. Thank you for your support.