My Favorite Business Rewards Credit Cards

I’ve written about my favorite rewards cards already, but someone asked about my favorite business cards. On top of the extra rewards, I like these because they can also help you track and separate your business expenses. Remember, individuals can also sign up for business cards under their own name.

Overall Favorite
The American Express SimplyCash Business Card is a good balance of solid rewards and easy redemption. You get 5% cash back on gas, office supplies, and your wireless telephone bill - and 1% back on everything else. The cash back is automatically credited to your next month’s statement, no waiting or having to call in. No cap on rewards; no annual fee.

For lots of small home-based businesses like mine, this works out great since gas/office supplies/cell phone expenses are already a big chunk of our overall spending. Even if you are only going to deduct as business expenses a portion of your gas or wireless charges, I’d just put it on this card and separate it out later. In addition, there is 0% APR on purchases for up to 12 months.

Big Spenders ($2,500+ per month)
On the other hand, many people have businesses where you either have to constantly buy a lot of raw materials and goods to resell (including many eBay sellers), or you’re just starting out and are buying a lot of furniture and equipment.

The Chase Business Cash Rewards Card has a tiered cash back system that offers the following overall cash back percentages based on your spending per month:

Read the rest of this entry…

Posted in Credit Cards, Deals & Offers, General | 22 Comments »

PayPal Promotion: $15 Off Any $30 Purchase

PayPal is offering a $15 rebate on any single purchase of $30 or more between February 8 and March 31. Valid anywhere PayPal is accepted in the U.S. and Canada, including eBay. You must register your primary e-mail here first.

I always buy my dog’s flea medication from eBay anyways (cheapest price I could find), so it works out great for me. Thanks Tom for the tip.

Added: The page has changed since I first posted this. It appears now to be only open for certain people. For a while, it was available to everyone and even on the front page of PayPal. Bummer.

Posted in Deals & Offers | 33 Comments »

Fidelity MyPlan: Should Good Savers Invest Less Aggressively?

Fidelity has a new tool called the myPlan retirement calculator. It’s very soothing and is only 5 questions long, why not give it a whirl? What I like about it is that it doesn’t just deal with average numbers. People like to use round numbers like 8% annually and pretend like they are a sure thing, but the fact is with some bad timing we could end up doing a lot worse.

Using some rough numbers from our own situation - age 28, $100k income, $100k saved so far, $2,500 saved monthly, Aggressive Growth investment style, we get the following result:

Not bad, right? If the market performs on average, we will easily exceed what we need to retire on. (Yes, the numbers are huge!) If the market performs poorly however, we’ll be significantly short. Now, what if we change the investment style from Aggressive to Conservative?
Read the rest of this entry…

Posted in Investing, Retirement | 26 Comments »

Free 24 Minutes of Skype for Chinese New Year

Right now Skype is giving out 24 free minutes of calling in celebration of Chinese New Year. Yes, it’s only worth 50 cents. But I’d pick up two quarters off the street any day. Kung Hei Fat Choi!

Posted in Deals & Offers | 3 Comments »

February 2007 Investment Portfolio Snapshot

It’s time for another bi-monthly update on my investment portfolio.

Thoughts
Another two months with little activity in my low-maintenance portfolio. I don’t get the joy of reading about my fund picks in magazines, but I don’t worry about choosing the wrong one either.

I am still ironing out a slightly tweaked asset allocation, one that has a more balanced domestic/international distribution and something I hopefully won’t mess with again for a long time. I’m reviewing the model portfolio comparisons and the books they came from, including Ferri’s new book All About Index Funds.

You can see some older posts on how this portfolio came to be here, as well as my previous portfolio snapshots here.

Posted in Investing, Retirement | 25 Comments »

4 More Ways To Get A Free Credit Report

I think the media in general has been pretty successful about promoting AnnualCreditReport.com, the official government-mandated source of free credit reports. I checked all mine last March. But what happens when it hasn’t been 12 months yet but you need to check again? Do you try one of those free trial gimmicks and remember to cancel in time?

Not so fast! There are several more ways to get a free credit report without having to use up all your freebies:

1. You were denied credit, insurance, or a job due to information on your credit report. A notice stating which credit bureau supplied the report should be included in your letter of denial. You then have 60 days to request a free copy of your report from them.
2. You are unemployed. You’re also entitled to one free report a year if you?re unemployed and plan to look for a job within 60 days.
3. You are on welfare.
4. Your believe yourself to be a victim of identity theft. Perhaps you recently found a suspicious transaction, or lost your wallet. Have you shopped at TJ Maxx or Marshall’s since 2003? Place a fraud alert on your file, and then ask for a free copy of your credit report.

Here are the numbers you’ll need:

* Equifax: 800-685-1111; Fraud Dept. 800-525-6285
* Experian: 888-397-3742 (same for Fraud Dept.)
* Trans Union: 800-916-8800; Fraud Dept. 800-680-7289

This is all taken from the Federal Trade Commission, so you can reference that if they try to argue with you.

Posted in Deals & Offers, Frugal Living | 34 Comments »

Emigrant Direct Signup Bonus Update - December Payouts

Bonuses for my Emigrant Direct Signup Promotion went out today for those that sent me their final form in December. Emigrant Direct offers a savings account paying 5.05% APY with no minimum balance. If you’re interested, be sure to get another $10-$20 out of it.

Posted in Banking, Deals & Offers | 2 Comments »

February 2007 Financial Status / Net Worth Update

About My Credit Card Debt
Newer readers may be alarmed by my high levels of credit card debt. In short, I’m borrowing money for free and keeping it in safe investments while earning me interest. Along with other things, this helps me earn extra side income of thousands of dollars a year. Recently I put up a detailed series of posts on this 0% game. So please, don’t worry!

Summary
While we are still recovering from the hit when we converted our Traditional IRA to a Roth IRA, this month was one of our strongest yet. First, the stock market continued upwards and our portfolio followed passively. Second, my wife got a healthy bonus from her job in January. Third, I renewed some advertising contracts on this site. Fourth, we had less unexpected expenses stemming from personal events than in previous months.

We are now at $42,992 in net cash and $50,335 in total non-retirement assets. Our mid-term goal of $100,000 for a house-downpayment is still in reach, especially with recent developments… The job search is going well and it looks like one of us (hint: not me) will be getting a big raise soon. This has been in the works actually for a while, but we had a few worried moments here and there. Now all the pressure is on me!

You can see all my previous net worth updates here.

Posted in Goals | 22 Comments »

Our Savings Rate Is (Still) Negative: Should We Worry?

A few days ago, the US Department of Commerce released¹ that the nation’s savings rate for 2006 was negative 1%. This means as a whole we spent more than we earned after-taxes, again. (It was also negative for 2005). Much is being made about how this is the lowest savings rate since the Great Depression, when there was a negative 1.5 percent rate in 1933. Should we be worried? Is the sky falling?

What’s the recent trend?

I wonder what the margin of error is on this data. Looking at this graph, it seems like perhaps something happened about a year and a half ago? But then I found it goes back a lot further than that. This chart starts from the 1960s²:

To help better understand the numbers, you have to go into the definitions a little bit. The personal savings rate ignores the capital gains in our investments like stocks and bonds, and also tangible assets like cars and real estate. In fact, our overall net worth is not doing that bad and actually increased over last year. The graph above tracks this by dividing household total wealth by disposable personal income (DPI). There are a few ways the experts try to explain this:
Read the rest of this entry…

Posted in Frugal Living, General | 27 Comments »

Free Samples From Wal-Mart

Manufacturers often give away free samples of their new products that will soon be on Wal-mart shelves. Even if you don’t shop there, you can sign up for those free samples here.

Currently available:
- Dove shampoo for color-treated hair
- Digestive Advantage for lactose intolerance
- Sunsilk shampoo
- Viactiv calcium and vitamin supplements

My favorites are the free razors. You know how they add a blade every few months. (Next up… the Gillette Ocho!) For some reason I’ve been seeing a lot of free shampoo recently. Did anyone else get a big box of Pantene from MySurvey?

Posted in Bored Money, Frugal Living | 2 Comments »

Are Online Savings Accounts Becoming A Commodity?

As online savings accounts get more and more popular, I get the feeling that they are becoming a mature product, almost a commodity. Sure, there will still be the occasional promotions, but for the most part all of the banks now are hovering around the same interest rate (currently ~5% APY). I believe that the banks simply don’t have the ability to go that much higher and remain profitable.

Exhibit A: E-Loan Savings, which burst on the scene with a 5.5% APY rate, is now back down to 5.25% after only a few months. GMAC Bank is down to 5% APY. Both are tightly connected with streamlined internet mortgage lenders. If they can’t go higher, who can?

Exhibit B: HSBC Direct is currently offering a nice 6% APY rate on new money, but it’s temporary and will revert back to 5.05% in May.

Once every account starts paying around the same rate, they’ll will have to start competing more on customer service and convenience. People want easy online transfers between their accounts, ATM access, and a reliable and user-friendly website. Most people also value the ability to stay with their current bank.

Exhibit C: I am increasingly using my Washington Mutual 5% APY savings account (my review) because I can deposit checks and withdraw cash directly to and from the account from a local ATM, and also initiate external online transfers. If I need to write a check or make a bill payment, I just move over some money instantly to their free checking account (with 1 free overdraft as a backup). In the meantime, all but a few hundred dollars are always earning 5%.

I expect other banks with a large physical presence to follow suit, but notice that they will be only targeting internet-savvy folks who are aware of all the options! Checking accounts paying zero interest are their bread and butter, and they don’t want to make it easy on everyone to switch. WaMu’s account is only available online. (Even for their own employees! I asked.) Citibank has their e-Savings Account paying 4.75% APY, which also must be opened online. Bank of America recently rolled out an online-only 5-month CD paying 4.50% APY ($5,000 min).

Posted in Banking | 32 Comments »

Starting Your Own Portfolio Out With Limited Funds

All of these suggested portfolios were developed by smart people who did their homework. But none of them are the same! This is because every single one also made compromises based on their interpretation of current research, simplicity, availability of suitable investments, costs, and also to some measure their overall predictions of the future. We have to do the same thing on our end.

For example, many people are starting with smaller amounts. Some of these model portfolios have 8 funds or more! Just by the fund minimums alone, you’d be looking at a minimum balance of $24,000 or so. And even then, you’d be looking a various low balance and maintenance fees. So what do you to minimize fees? Here are a few ideas:

1) Buy an all-in-one fund, and split it up later. Since many fund companies have all-in-one target-dated funds, you can simply buy one of these until you have enough to split into other funds. Here are some specific fund suggestions, starting at only $50 per month. The fund’s asset allocation may not be exactly what you want, but it will be well-diversified, and still much better than other high-cost alternatives. Here’s what the Vanguard Target 2045 Fund looks like:

I built up about $50,000 in Vanguard Target funds (VTIVX and VTTHX) before splitting it up into 8 funds last year. Since they were held in IRAs/401ks, I didn’t have to worry about any tax consequences. This choice is my favorite because it’s the most simple - just buy the same fund for a few years!
Read the rest of this entry…

Posted in Investing, Retirement | 3 Comments »

Model Portfolio #6: Merriman’s FundAdvice

(This is the sixth in my series of Model Portfolio Comparisons.)

Paul Merriman also runs his own money management firm. He also writes at FundAdvice.com, which has a lot of interesting articles about investing in no-load mutual funds, with and without market timing. Here is the breakdown of their “Vanguard balanced buy-and-hold portfolio”.

Asset Allocation For 60% Stocks/40% Bonds
6% S&P 500
6% US Large Value
6% US Small
6% US Small Value
6% REIT
12% International Developed (Pacific + Europe)
12% Int’l Value
6% Emerging Markets
20% Intermediate Term Bonds
12% Short Term Bonds
8% Inflation-Protected Securities (TIPS)

They have other suggested buy-and-hold portfolios for different brokerages, which vary slightly but are still very similar. I find it interesting that the stock portion is perfectly 50/50 domestic/international.

Posted in Investing, Real Estate | 11 Comments »

Your Job Search Expenses May Be Tax-Deductible

Since we’re looking for jobs right now, I wanted to find any way to save some money in that department. It turns out that many job-search expenses may be tax-deductible, but as you might expect from the IRS, there are plenty of hoops to jump through:

• You have to be looking for a new job in your present occupation, even if you don’t ever get one.
• There cannot be a “substantial break” between the ending of your last job and your looking for a new one. Vague? Yep.
• You cannot be looking for a job for the first time. Sorry, recent graduates.
• Job search expenses are lumped in with many other “miscellaneous deductions”, such as the home-office deduction, union dues, work-related education expenses, bad business debt, tax prep fees. These are only deductible from your income if you itemize deductions and only to the extent that taken together they exceed 2% of your adjusted gross income.
• If you get reimbursed for any your expenses, then it’s not deductible.

What might qualify as an expense?

1. Employment and outplacement agency fees. I wouldn’t pay too much of these, but they can be deducted.
2. Resume preparation costs.. You can deduct amounts you spend for preparing and mailing copies of your resume to prospective employers. These include paper, postage, envelopes, and printing/copying costs.
3. Travel and transportation expenses. If you travel to an area and, while there, you look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area if the trip is “primarily” to look for a new job. Airfare is what we’d really like to deduct. It will be tough for us though, as we may stay a few extra days to visit friends, thus possibly violating the “primarily” clause.
4. Phone and fax expenses. Long distance phone calls and faxes to prospective employers are also deductible.

This is all taken from the notoriously vague IRS Publication 529 - Miscellaneous Deductions. Look under Unreimbursed Employee Expenses > Job Search Expenses. Keeping great records for everything is key. If you have an accountant, be sure to ask them how to best take advantage of this area.

Posted in Taxes | 5 Comments »

IRS Calculator To Help Determine Sales Tax Deduction

If you itemize deductions and live in a state with sales tax, give the IRS Sales Tax Deduction Calculator a spin.

Taxpayers who itemize deductions on Schedule A of the Form 1040 in 2006 have the option of deducting the amount of state and local sales taxes paid instead of deducting their state and local income taxes paid. Taxpayers cannot take a deduction for both sales and income taxes.

Residents of states with no income tax should definitely look into this. If you have made some large purchases this past year, it may also be worth the effort to dig up those receipts. Via Consumerist.

Posted in Taxes, Tools & Calculators | 1 Comment »