scfr's Personal Finance Blog

For reasons I spelled out on the Forums and won't repeat here, I have decided to step away from Saving Advice.

It's sad because this site has really meant a lot to me. This is a place where we can do what we usually can't do IRL ... talk without reservation about money! I was so happy when I found this site, because at last I had found a place where I could talk with like-minded folks about one of my passions: personal finance!

You all have come to mean a lot to me over the past 4-1/2 years. I have been taught, challenged, encouraged, and inspired by many of you. Thank you!!!

Keeping this blog has helped keep me on the track toward financial freedom. I'm really going to miss it ... as I will miss reading your blogs.

I wish all of you nothing but the best.

1. Tax-Deferred Retirement Savings: Finally moved from Wellsley Income to a mix of Target Retirement 2005 & Target Retirement 2010 (all Vanguard funds). It means I am now invested a bit more conservatively but more diversified, and expenses are a bit lower. Had been considering a move for months. I tend to chew on "big" decisions for what to some must seem like way too long time (plus I take the time to actually read the prospectuses), but once I make a decision I usually take action right away. I made my decision over the weekend and did my Exchange Order online, so the exchange was done yesterday. DH decided not to make a change for now, so we now have a little bit of a friendly competition going to see whose funds do better!

2. Work: The organization I volunteer with wants to hire me. If all works out, I would work for the non-profit part-time and continue working with my current employer part-time from home. If it doesn't work out it's OK because I'll just keep doing what I'm doing right now.

3. Mattress Cover: When I took our mattress cover off to wash it, the zipper "broke" (the pull tab came all the way off). I am NOT a seamstress. I have an old Singer, and I can sew more or less a straight line when I need to, but I rarely sew. I'm also not clever at all when it comes to mechanical things. But other than the zipper the mattress cover is in perfectly good shape, so I knew I had to try to figure out how to fix it. It took over an hour, it was not easy for me, and at one point I had to recruit DH for an extra pair of hands, but I did it! It's now fixed! It looks a little funny because I had to do something to make sure the zipper pull wouldn't come off again, so once I got the zipper teeth put back together and the tab back on, I pinned teeny safety pins at the ends, one on each side. It may not be pretty, but it works! Didn't have to buy a new one ... didn't have to take it to a repair shop ... Don't have to leave it unzipped (losing the anti-allergen effectiveness). It's ridiculous how proud I felt for being able to fix that zipper. DH was really happy too and gave me a big high-five. (He never would have been able to figure out how to fix it. I don't think he has ever held a needle in his hand.) It may be of interest to my fellow frugalites that the teeny safety pins I used came from sewing kits that I got in hotel rooms back in the day when I used to travel for business.

4. Groupon: I signed up for Groupon months ago (last summer I think) but just recently made my first purchase. It was for $14 at the restaurant Which Wich and it cost $7. I redeemed it today for DH & I ... 2 sandwiches & a large shake that came to exactly the face value of $14 (yes, I planned my order so I wouldn't go over the $14). Usually the Groupons are for things we don't buy (spa treatments, expensive restaurants, etc) and while they do offer golf packages regularly they aren't that good of a deal so DH has passed on all of them. While we were happy with today's deal, I'm not sure if it's worth the time of getting a daily Email when there are so few offerings that we would use. Anyone else had better luck with Groupon?

In May I wrote about Shape-Ups shoes and how I thought they were intriguing but couldn't see spending $100 on a pair of sneakers.

http://scfr.savingadvice.com/2010/05/09/sneakers-on-the-grou...

At that time, I never saw them on sale. Well, now they are being sold at reduced prices. DH & I hit Dillard's New Year's Day sale and actually saw a couple styles being sold for as low as $40. That is the least expensive I have seen. Dillard's did not have my exact size, and I decided that if I was going to spend that much for a pair of shoes (I think $40 is still on the high side) they had better fit perfectly, so did not buy them.

Now Costco is selling them. $53 for women's & $47 for men's. All sizes and several styles available.

Doesn't that always seem to be the case? When something first comes on the market that you think is neat, if you just wait, the price almost always comes down (sometimes by quite a bit).

One of DH's customers came to stay with us for a few days. He also brought along one of his friends. We did as we always do when we have house guests, spiffying up the guest bath & 2 guest rooms (we have one formal guest room but also have a "flex room" that can be made in to a guest room when we need it), purchasing refreshments, booking tee times, washing the car, etc.

In DH's culture it is customary for house guests to give their hosts very nice gifts. Especially business associates, because they know that by staying at someone's house they are saving on the cost of a hotel, not to mention bar tabs & restaurants. We have received some very nice gifts over the years ... unfortunately, some are expensive but useless ones that we have ended up regifting or selling. Well, this particular customer of DH's is a doll who believes in giving his hosts something they really want, so he brought just a token gift (some food from DH's host country) and then kept his eye out to see what we really wanted.

Our house guests wanted to go shopping at Costco ... As you may be able to guess by now, "Mr. S" saw DH & I eyeing the Shape Ups and discussing them (we were both seriously considering buying them but weren't 100% sure since the price is still very high compared to what we usually pay), and announced that he wanted his gift to us to be one pair for each of us for our hospitality! Yipee! I now have the pair of Shape-Ups I wanted, plus DH has a pair, and we didn't spend a dime.

The 2 guests also each bought a pair for themselves, and Mr. S bought a pair as a gift for his wife.

Estimated tax payment was dropped in the mail yesterday evening for pickup today. (Dear IRS: You're welcome! Dear Fellow US Citizens & Residents: You're welcome, and thank you to all of you who pay your legally required taxes!)

Annual property taxes will go out next week (tho not due til the end of the month, unlike federal taxes they have to be RECEIVED by the due date).

Car registration for our new car also gets paid this month. This one is relatively small, but it adds to the feeling that we are rendering an awful lot unto Caeser this month.

Right now the stores are selling all kinds of organizational gear. But really, you can have perfectly organized finances while spending no money at all (or very very little). You can probably make do with things you already have on hand. The following are what work for me.

1. Filing System:
David Bach's filing system is the very best one IMHO. I've been using it for about 10 years, after trying several others that just didn't work. Bach's system is pure elegance: easy, compact, it really works, and it's a cinch to keep up. You can find his system in some of his books or at:
http://www.oprah.com/money/David-Bachs-File-Folder-System

I use a plastic Rubbermaid tote that was very inexpensive & is 100% portable. If you don't have a tote or small file cabinet, hanging files, and manilla tab folders you'll need to buy them, but they'll be worth the expenditure.

2. Calendar:
A calendar is essential to staying on top of your finances. This is where I record when I need to make payments (especially the irregular ones like estimated taxes and property taxes), when CDs or other long-term financial assets mature, and anything else that affects our finances.

For example, we get a 10% discount on our car insurance because my husband & I have both completed an on-line defensive course (2 cars = both of us have to do the course). The course certificate is good for 3 years. My husband's certificate expires later this month, and the date is on my calendar so that I can remind him to re-take the course. The insurance company won't remind us; we have to keep track of this sort of thing ourselves.

I use a free calendar that one of my husband's business suppliers gives us.

3. Special Box For Important Little Things That I Don't Want to Lose: In this box I put coupons, gift cards, safe deposit box keys, master key for car with keyless system, extra cash, and passport. I keep the box in a spot where I can always get my hands on it. Any little old freebie box will do.

P.S. - Now if I could just figure out a way to organize my photographs as well as I have organized my finances!

Yesterday I did a post about calculating our year-end net worth, and decided to do a followup about why & how I do net worth statements.

As CB in the City said in his/her comment, a net worth statement is a great way to get a big picture look at how you are doing financially. Since I am prone to getting bogged down in details, it's essential for me to take a step back now & then to take a broad view of our finances.

Doing our net worth statement naturally leads to discussions between DH & I about whether or not we want to keep a particular account, re-allocate our investments, etc.

Another reason I like to do a net worth statement that I have never heard financial pundits mention is that for us it is part of our estate plan. When we created our estate documents, I sent a "Letter of Instructions" to my sister/executor that listed all of our major assets. But I made it clear to her that our accounts were always changing (everyone opens & closes accounts, but because DH & I are interest rate chasers, I think we do it more than average people) and told her that if DH & were to die in a simultaneous catastrophe (car accident for example), she should use our net worth statement as a map to locate all of our accounts. I wrote down very specific instructions about where to find the statement, and I always keep it in the same spot.

I used to calculate our net worth monthly, but came to realize that quarterly was plenty. Most useful for us is comparing where we are now to where we were one year ago. We have a spike in income that occurs approximately the same time each year (DH's business has a big seasonal peak), and our biggest expenses occur at the same time each year (paying our quarterly estimated taxes, and paying our annual property tax bill in one shot since we don't have a mortgage). So, comparing to a year ago gives us the most clear-eyed picture of how we are really doing.

As far as what to include in your net worth statement, there are legitimate differences of opinion. My terminology may not be "proper," but I do a 2-part net worth statement. Part 1 is what I call "financial assets": Cash, refundable deposits, bank accounts (including business account), investment accounts (including Treasury Direct), HSA, and tax-deferred retirement accounts. Part 2 is what I call "non-financial assets": For us, this is just our house & vehicles. Other things that some people might include here are: investment properties, art, antiques, collectibles, jewelry. I've decided not to include any of these because what we have is of minimal value and frankly I don't want the hassle of assigning values.

Deciding how to value the "non-financial assets" is a challenge to say the least. Everyone will have to decide for themselves how to do this. I check the KBB Private Party Value of our vehicles occasionally. For our house, I wanted to get as realistic as possible a picture of what we would NET if we were to sell our house, so I started with the purchase price MINUS 8% (to allow for the costs of selling a house, number one cost being real estate commissions) and then I adjust by the CPI-U (because I believe we bought at a non-bubble price and I think it's reasonable to think that over the long run real estate will keep pace with inflation). Remember that we paid cash, so we have 100% equity in our home. If home values in our area were to spike upwards, I would NOT adjust our home value upwards, but if they were to take a big drop, then I would check comparable sales prices and reduce the value of our home accordingly. As I said, my goal in assigning a value to our home is to be realistic, not overly-optimistic. It's not necessarily the "right" way but it's what we are comfortable doing.

When I do my year to year comparison, I'm looking at the TOTAL (Part 1 + Part 2). My DH tends to ignore Part 2 and just look at Part 1 (the financial assets).

I jumped the gun a little bit and went ahead and calculated our year-end net worth. These numbers could change (and our Vanguard account balances almost certainly will), but based on end-of-business yesterday's numbers our net worth increased 12.4% in 2010.

I'm perfectly satisfied with this number.

The value of our tax-deferred retirement accounts increased, the value of our home increased a teeny bit, and we had that tiny capital gain from our almost laughable stock trade. But the lion's share of the increase is from new savings (income exceeding expenses). In my personal experience, there really is no financial advice better than the old adage "spend less than you earn."

The one thing that had a negative impact on our bottom line was buying a new car in January. No regrets at all; I'd buy that car again in a heartbeat, and I know we got the best deal possible on the car. But it did effect our bottom line negatively because the current KBB is less than what we paid, and we lost some passive (interest) income by buying the car.

Yesterday DH & I went out to lunch and then to the Radio City Christmas Spectacular (featuring the Rockettes). It was really a fun show! We both had a great time. Even tho DH & I don't usually exchange Christmas gifts, we agreed the big day out would be our gift to each other. We spent $79 total (lunch, parking, and 2 tickets) and it was worth every penny!

Hope you all are enjoying your Christmas.

Almost 2 years ago we opened a Schwab account. Since then, we've made a grand total of two stock trades (or four, depending on how you count them ... Twice we bought shares in a company, and then sold it).

Today I called & liquidated the account because my poor DH just couldn't stomach it. After we bought the stock, he'd sit there and watch the price constantly, and even after we sold it he would sit there and STILL watch the price, second-guessing the decision to sell.

Poor guy was a nervous wreck. It just wasn't worth it.

Once he practically screamed at me "How can you be so calm about this???" Well, the answer is that even if we had lost every penny we had put in to the stock we still would have been fine. It wasn't like we had bet the farm. And I knew that my getting excited about it wasn't going to change the price of the stock one bit.

When we sold the last stock, I told him that we either had to: 1) choose some dividend-paying stocks to buy & hold, or 2) cease buying individual stocks forever. He chose option 2. As soon as our last sale had settled, I made the phone call to Schwab and a check is on the way. The check will go in to our savings account, and we will continue with our plain-vanilla investments.

P.S. Since inquiring minds will want to know, no, we didn't lose money. (We made a little in fact.) That's not why we liquidated the account. It was purely for my DH's mental health.

OK baselle, since you asked:

Did something recently that I never thought I would do ... I purchased a Series EE Savings Bond in my Treasury Direct account. Until recently, I've been able to find better options for cash not needed in the short term (such as CDs or High-Yielding MMAs). And although I own TIPS and used to buy Treasury Notes, it has been quite awhile since I bought a Treasury since, to be blunt, the yields suck. And Series EE Bonds always seemed to be just about the worst.

That was then. Welcome to 2010, and the age of ever-shrinking yields on bank accounts.

Last month I was looking for a place to park a bit of cash that I knew we would not need until our retirement years. (Our IRAs would have been my first choice, but they had been maxed out.)

After scouring rates on CDs and MMAs, I was getting frustrated at the low rates I was finding. Not expecting much, but figuring I had nothing to lose, I decided to poke around on the Treasury Direct site.

Found out that Series EE Bonds Savings Bonds purchased through Oct 31 are earning 1.4% interest. Not so good. For some reason I kept reading & I learned some interesting tidbits:

- A Series EE Bond earns interest for 30 years
- You have to hold the bond for at least 1 year
- After 1 year, you can cash out the bond any time
- If you cash it out before you have had it for 5 years, you will pay a penalty of 3 months' interest
- That means that if you hold the bond for 5 years, you can cash it out any time after that for no penalty
- THIS IS WHERE IT GETS INTERESTING: Your bond is guaranteed to double in value in 20 years! (I had to double-read that part to make sure my eyes weren't playing tricks on me.) Based on my calculation, that means that if I hold the bond for 20 years, the US Treasury will add enough value to the bond so that my interest earned equivalent will be 3.5%.
- TO MAKE IT EVEN MORE ATTRACTIVE: Interest income on federal taxes is deferred until the bond is redeemed. (I think state income tax is also deferred, but I'm in a no income tax state so didn't verify that.)

What this means for me is that I'm guaranteed 1.4% (tax deferred) holding the bond for 5 years, and 3.5% (tax deferred) if I hold the bond for 20 years. In 5 years, I'll see where interest rates are and decide if I want to cash the bond in and move the money or continue to hold it.

If anyone else is interested, I recommend going directly to the source and confirming all information on the US Treasury's web page: www.treasurydirect.gov

And if you have children & are saving for their college education, be sure to read about the tax advantages to using Series EE Savings Bonds to pay for their education. (If I had a newborn & knew I could earn 3.5% for 20 years, probably tax-free, I'd be buying an EE Bond!)

I haven't sat back to see where we were on our journey to Balance Sheet Affluent (formula is there on my sidebar if you're interested) for quite awhile. Today I had a "sit back and look at the big picture" afternoon and decided to do an update. We're at 1.72 times expected net worth, which means we are solidly on track (actually, a bit ahead of schedule right now).

I guess we'll just keep plodding along, doing what we have been doing: working, spending sensibly, saving, and investing conservatively.

In the folder where I track our net worth and our journey to BA, I have a sheet of paper with the following words in big bold letters. These are what Dr. Stanley (author of "The Millionaire Mind") says are common characteristics of those who are Balance Sheet Affluent:
Integrity
Discipline
Social Skills
Supportive Spouse
Hard Work

P.S. - I bought my first Series EE Savings Bond recently! I will blog about that next.

P.P.S. - Way off topic, but has anyone heard from Brooklyn Girl? I wonder & worry how she is doing.

About 7 years ago the office where I worked was closed, and I found myself unemployed for the first time since I was 14 years old. I immediately started looking for a new job, and started collecting unemployment benefits. Didn't have much luck at first, but then I found a job that I knew I could be hired for. It was a company looking for a large number of temporary workers. The commute would be long, and the pay would be less than what my UI benefits were, but it never crossed my mind not to take the job. I would be able to extend the length of time I could collect unemployment (in case I did not find a permanent job), it would be an interesting experience doing something new, it would keep me "out there" in the work force. Also, call me old fashioned but I could not imagine not working if I had the opportunity.

I got the job. During the long commutes, I did quite a bit of soul searching, thinking about what I wanted out of life. By the time the temp work ended, I had decided to start my own business. Never went back on unemployment, and ended up taking only a fraction of the benefits I could have received.

So, you might be thinking that taking the job that paid less than unemployment "cost" me a lot, right?

Well, almost 3 years ago we moved to Austin where that same company I had temped for has a larger presence. Once again, I found myself looking for work and knew that working for this company was something I could do and would quickly be hired for, so I started temping for them again. I started getting more & more work, and I've now been offered a supervisory position.

If you are unemployed, if you have the opportunity to work somewhere but you think you may not want to do it because the pay is less than your unemployment benefit, please reconsider. You never know what is going to happen down the road. You never know when the experience you gain and the connections you make on that "low-paying" job are going to pay off.

Inspired to post this because of a current discussion on the forums and what is happening to my friend from work B.

B, who is in her late 60's, has been diagnosed with advanced lung cancer. (She is not a smoker if anyone is wondering. Whether she smoked in the past, I do not know.) They are using a combination of chemo & drugs not to "cure" her (that's not possible) but in the hopes of buying her another year or two with her husband of 40-plus years J. J has never had anything to do with the household finances. Never paid a bill, etc. He is now handling it, and it doing a great job. Thank goodness they had some "advance notice" so that she could teach him.

I understand that the hand off of financial duties is just about the least of their worries right now, but still, it is important. If you are the one in the household who handles the finances, if God forbid you dropped dead tomorrow, would your spouse or partner (or children or other family member if you are single) know what to do? If not, what do you need to do to teach them?

Tho I've not been around SA much lately, I am still actively involved in my household's personal finances on a daily basis.

I started this blog to chronicle our relocation to a lower cost part of the country (plus join the $20 Challenge), and now that we are firmly established in our adopted home of Austin, I just haven't been blogging as much.

In a nutshell, these are the major PF-related things that have been happening:

1. Wills Re-Done: Finalized (witnessed & notarized, including Affidavits, copy sent to Personal Representative) in early-March. I bought the NOLO book & used their software & created the Wills myself. I would have preferred to use an attorney (DH was not willing to pay the fees to have an attorney prepare our estate documents), but I am happy with NOLO and did the best job I could. The book was clearly written and I got quite a bit of helpful information from it. For me, the way the book was laid-out seemed very organized, and was a great way to think and work through the process. I recommend it for anyone else thinking of doing a DIY Will. I made an effort to keep things simple, in order to minimize the risk of making a mistake. For example, I decided not attempt to create a Trust myself. I also read up on Special Needs Trusts (I have a brother who is developmentally disabled who is a major part of my estate planning), but found out that he does not need one because he does not collect Social Security Disability Insurance.

2. Second Car Purchased: We finally bought a 2nd car. Paid cash. New car. We have owned both new & used, and I believe both are reasonable ways to go (I'm not a believer in "one size fits all" when it comes to PF). Based on how we have owned previous cars and how we feel about cars, I realize that for DH & I, Jonathan Pond's motto of "buy used if you love cars, buy new if you hate cars" is the way to go. In other words, if you are a "car person" and like to change cars frequently, go for used cars. But if you are NOT a car person (like DH & I), keep your cars forever, and do not necessarily like the car-buying process (but put a lot of time & research & mental anguish in to the decision-making), then buy new. Only once did we buy and sell a car within a short period of time, and that was a special scenario. Other than that, we have owned our cars for very long periods of time (our current "first car" is a 1999 model that we bought new, has almost 150K miles and we expect it to last for at least another 50K). We bought a Prius, at the height of the "anti-Prius hysteria." We had looked at the Prius for a couple years, but felt they were overpriced. For a very brief period Toyota offered a $1K Customer Loyalty rebate (if you blinked you missed it), and one dealer in our area offered previously-unheard-of discounts on a couple stock vehicles. On top of that, I was getting ready to restart my full-time seasonal job & we had been sharing one car for several years, so while it definitely wasn't "the best car deal ever" it was enough of a deal and the timing was perfect so we jumped off the fence and wrote a check (plus $5K on the Am-Ex ... for the points ... paid off when the bill came in). Boy that dealership was dead at that time; the salesman said we were his only sale that month.

3. Still Studying the Possibility of Buying a Vacation Rental + Looking at a Self-Directed IRA: At the turn of the new year, I had looked in to buying a 2nd home in our area to use as a vacation rental, then put it on hold because the real estate market in was firming up (didn't think we could get a very good deal). But now that the New Homebuyer's Tax Credit has expired, I think there may be another dip, so we continue to keep a close eye on the market. I am reading "How to Rent Vacation Properties By Owner" by Christine Hrib Karpinski, and that got me thinking about establishing a Self-Directed IRA. I had been wondering if an IRA could own an investment property, and it turns out that a Self-Directed IRA can. Also, I have been perturbed thinking that I could not own individual Treasuries in an IRA (can't see paying a fee to a mutual fund company to buy something I can buy myself through my Treasury Direct, but a Self-Directed IRA may be a way to do just that. These are my current "Big PF projects" ... learning more about vacation properties & self-directed IRAs.

4. Sneakers On the Ground: For some reason, I often ponder "big PF questions" while out walking the dog. On one walk recently, I was thinking about our investment style. While our MF investments are very conservative, we have made bold & risky moves such as DH quitting his job & starting his own business, me starting a small business, relocating to a lower cost part of the country, and now thinking about buying an investment property. I don't think you can categorize us as "risk-takers" or "conservative." I think the military expression about "Boots on the Ground" is fitting ... We like to be very hands-on, looking & observing & participating in what we are investing in; we willing to take risks as long as we have quite a bit of control over those risks and know exactly what is going on.

5. And Speaking of Sneakers: OK, this is not a "major PF thing" by a long stretch, but I did want to point out that everyone, no matter how firmly they have their personal finances under control, struggles with temptation. While it was definitely NOT the case in my younger years, I do feel that my DH & I do a pretty good job overall of managing our finances. But the "consumer bug" still bites from time to time. It's a constant job to keep things in balance. Right now I am hearing the siren song from those "Shapeup" sneakers by Skeechers. Just love the idea of getting extra toning (and maybe some health benefits) while walking just by wearing a certain pair of sneakers! But the rational side of my brain can't see spending $100 for them. So I've decided that if I ever see a pair for $50, I will buy them. I'm hoping they will come out with some awful color scheme that no one wants and they will put them on clearance (I won't care about the color), or maybe it's just a matter of waiting for the market to become more saturated. I will allow myself to indulge in a pair, but only if the price comes down by half.

Hope everyone here has been doing well ... I have stopped by to read folks blogs from time to time, but feel I am out of touch.

My clothes washer is washing our sheets right now. DH's pillowcase had a small blood stain on it. Before starting the wash I treated the stain as I have for 99.9% of my adult life: I measured my regular laundry detergent in to the cup, got the stained area wet (use COLD water for blood), poured a little bit of detergent on the stain, rubbed the fabric together with my hands, did a quick rinse (again use COLD water), repeated these steps one more time, and the stain was gone.

I have owned one bottle of special stain treatment stuff in my life. I bought it during an especially busy time in my life, thinking it would make doing laundry a bit easier. It didn't. In fact the case could be made that using my tried-and-true method is faster since I don't have to take a special bottle down from the cupboard, open it, close it, and put it back (and remember to buy it when it runs low).

And while I haven't done an ounce-for-ounce comparison, I KNOW that using plan old laundry detergent is cheaper than using a specialized product.

This post is not just about treating laundry stains. It's about questioning whether you really need a specialized product that a manufacturer has done a great job selling you on, or whether an everyday (less expensive) product would work just as well. For the newly-frugal, as you go about your daily routine today, why not ask yourself: "Do I really need this product? Does it really make my life easier and save me enough time to make it worth the extra cost? Or is there another less-expensive product that I already own that could work just as easily and well?"

The revolving door at "chateau scfr" continues to spin.

My mom came & stayed with us for 8 days. She loved Austin and the house, and I really enjoyed showing her the sights. Went to the LBJ Museum, day trip to Fredericksburg, Umlauf Sculpture Gardens, day trip to San Anotonio, and AMOA Laguna Gloria. We dined on gorditos at Haberno Cafe, noshed on German food in Fredericksburg, and chowed down Texas BBQ at the Salt Lick.

In between DH's family's stay & mom's visit, 2 of DH's business clients came for short stays. (And there are more coming soon!)

Oh the joys of having a new home in a city people are curious about ...

A tiny bit of financial news: I finally sold my "junk" gold, a very thin broken necklace & a man's pinkie ring that for some inexplicable reason DH's mother had given me several years ago (it was used) and I don't wear. Got $200. But I also decided to use the same jeweler the replace a clasp on a broken necklace I found on the sidewalk; that cost me $30, so I really only netted $170 + a necklace. The necklace is a silver one from Tiffany, worth approx $300 from what I can see on-line, and I like it, so decided to fix it up and keep it. Lest you worry about my integrity, I DID post a notice about finding the necklace on our HOA's web site, and left it up there for 2 months waiting for the owner to claim it. They never did.

Can NOT believe it's been a month since I last posted. Here's a bit of what I've been up to and some news.

- This year the non-profit I volunteer with did giftwrapping as a fundraiser for the first time. I suggested we do it, and I was in charge. We held 2 public events at malls plus I did private wrapping in my home as well. It was a success not only in terms of money raised but also increasing our visibility in the community. We're going to expand our efforts next year. I have already started preparinging for 2010 ... I hit Target & Sam's Club early on the 26th to stock up on lots of holiday wrap on clearance for next year.

This year was the first time EVER I have gotten up early to shop the day after Christmas sales.

- Not only did I get giftwrapping supplies, I also bought holiday decorations for our house. We sold almost all of our holiday decorations before we moved to Texas. Being in a new house, it was REALLY hard not to buy things before Christmas to decorate, but with much encouragement from DH I sat on my hands until the 26th. I'm not one who goes crazy decorating, but I do like to do a bit to make the place look festive. I spent $54 on decorations plus $5 for a red tablecloth that I can use not only at Christmas. I went ahead and put up the indoor decorations so we can enjoy them until New Year's!

- My fall veggie garden was a total failure! Only the chives grew to where we could eat them, and even they were just a tiny handful. Bah. So glad I did not dig up part of the yard to make it! I still have seeds so I will try again in the spring, but I will not buy any soil ... I will try to improve my herb-growing techniques since that is the one area where I did have a little success, but the okra/green onions/lettuce I'll just plant them in the ground in various places around the garden beds and if nothing makes it I will just chalk it up as a learning experience. (A friend here who is an avid gardener refers to the dirt in new developments as the "red dirt of death" ... sounds like a great excuse for my failure ... I'll take it.)

- In other financial news, we have started toying around with the idea of buying a 2nd house as an investment property (vacation rental). It's a scary-exciting thing to think about. We're still in the "thinking" (not doing) stage.

- Our vulture instincts must be alive & well because we are suddenly thinking of making our 2nd car (which we have continued to shop for but have yet to pull the trigger on) a Saab. It's not a make that was even on our radar several months ago, but now that they are on "about-to-be-defunct clearance" we thought they were worth at least taking a look at.

- The Treasury has another round of auctions next week, but I think we're going to stay on the sidelines.

Here's an interesting (tho slightly depressing) link for you fellow savers:

http://www.nytimes.com/2009/12/26/your-money/26rates.html?sc...

Hope everyone is enjoying the holiday season!

We received some foreign currency during the overseas family's visit. Given how weak the US Dollar is right now, we decided to exchange it right away rather than hold on to it.

Figuring out where we could get the best exchange rate was my PF job of the day. I started calling around as soon as the banks opened. Even tho' they charged a $5 transaction fee for non-customers, Wells Fargo turned out to offer the best deal for us. Drove to WF, did the exchange to US$, then drove to my bank to make my deposit.

Mission accomplished.

Tomorrow's financial task? Scheduling on-line bill payments. Whee.

The big group of house guests (DH's extended family from overseas who were here for 22 days) left this morning ... I have a whole 9 days before our next house guest arrives! Will post details later, but everything went great. Right now I'm just going to try to get caught up on some of your blogs.

Happy Thanksgiving!

Credit cards' days seem to be numbered ...
How will consumers pay in the future?

Will we go back to writing checks? If so, maybe I should buy stock in Deluxe or Current!

I'll bet, tho, that some new form of payment will emerge ... Wish I could be the one to invent it!

(Sorry I've not been around. Thanks for checking in Lux. Very busy getting ready for waves of houseguests ... has involved a fair amount of spending on pillows, air mattresses, etc.)

http://online.wsj.com/article/SB1000142405274870447150457444...

Financial Integrity, scfr style ...

Started my own little personal boycott.
No more Miramax Films movies for me. I'm also boycotting the films of the directors mentioned in this article, and will boycott the films of any other directors who sign this petition as I learn about them. I just went through my Netflix Queue and hit the delete button as needed.
I know my boycott won't matter one little bit to these guys (I get DVDs from the library & my 2-a-month Netflix subscription and I go to the movie theater only once or twice a year), but if I am to spend my money in a way that is consistent with my values, I can't allow a single penny of mine to go to them.

Since when is raping a 13 year old child excusable? When I think of myself at 13 (the farthest I had "gone" with a boy was holding hands while skating around the roller rink) it makes me feel ill to think about what that poor child endured. That anyone would come to Polanski's defense by minimizing the seriousness of the crimes and suggesting that he be given a pass because he is an "artiste" is just disturbing.

Why am I not boycotting the actors and anyone else who signs the petition? Well, with all due respect to any actors who might read this, I accept that some people are more naive and swayed by what others around them are doing. But these directors are SMART GUYS ... They should know better!

I have not yet decided how long my boycott will last. Ideally it will be for as long as Polanski's jail term would have been had he not slithered away on his belly.

P.S. - Maybe I'll replace the movies I deleted with Chris Rock films:
http://www.wgem.com/Global/story.asp?S=11258100

Yesterday I got my eyes examined & ordered 2 new pairs of glasses. I got the 2nd pair for when I'm using the computer. It has been suggested in the past that I get a 2nd pair, but this go round the eye doc just flatout said that I need a 2nd pair and explained that my focusing muscles are getting weaker (probably due to a combination of getting older plus my current job involves heavy computer use of things that are often hard to read). This doc just does exams and writes prescriptions (which he wrote out for 2 pair); he does not sell glasses, so does not have a financial incentive to get me to buy 2 pair.

This was my first exam and new glasses since we opened our HSA.

I paid for the exam & the glasses with my HSA. Checked the IRS regs (Pub 502 which defines reasonable medical expenses for deductions and that covers what can be paid for using an HSA) and as is often the case, the rules are open to interpretation.

This is what it says about eyeglasses:
"You can include in medical expenses amounts you pay for
eyeglasses and contact lenses needed for medical reasons.
You can also include fees paid for eye examinations."

So, it's very clear that the eye exam could be paid for with the HSA. But the glasses? What exactly do they mean when they say "needed for medical reasons"? Are they just trying to exclude contacts that people wear purely for cosmetic purposes? Or is their a higher standard?

I'm extremely nearsighted with astigmatism. I know that if I don't wear bifocals my eyesight will continue to get worse. I know that without my glasses I cannot drive a car, nor move around much without the risk of serious injury. (My own hand does not come in to complete focus until it is 4 inches from my face. So without my glasses I would be tripping over or running in to things and injuring myself.) Does this qualify as "medical reasons"? I certainly think so. But would an IRS audtitor agree? If they asked if my glasses were medically necessary, I suppose I'd just ask them to try mine on and tell me what THEY think.

1. Estate Documents: Decided to go for a DIY simple will instead of a trust. I think a trust would be better, but I don't have the confidence to do one on my own. After reading as many reviews as I could find, decided to use NOLO. Ordered their Simple Will book plus CD, and their book on Special Needs Trusts plus CD (because of my brother's situation). I decided against the on-line version since I'll need to do 2 wills (one for each of us), and I know I'll be redoing them in the future, so might as well have the disc I can use over & over again without having to pay over and over. DH has already conveniently forgotten his promise to let me hire an attorney when we turn 50. Sigh. Also, I want to read up (especially on the Special Needs Trust) before I get started.

2. Roth Conversion: We have looked at the idea of converting our IRAs to Roths upside down and sideways and have decided that it's not the right decision for us. We will NOT be converting. Since running the numbers involves making lots of assumptions, I could be wrong, but based on what I know for sure right now and our best guess of what the future will hold, it doesn't make sense for us. Everything we are reading is saying "convert, convert, convert" so I guess we are going against the grain yet again by not converting.

3. Readjusted Tax-Def Retirement Plans: I have mentioned before that we got a bit aggressive with DH's 2008 tax year contribution to his tax-deferred retirement plan, due to the "clearance price" on stocks, putting 100% of it in the Vanguard S&P 500 Index Fund. Last night we moved almost everything in both of our tax-def plans to the Vanguard Wellesley Income Fund. It has a target allocation of 35% stocks (tho currently it's 39%) and 65% bonds. The only portion of our plans that did not go in to Wellesley is a piece that we have to keep separate for tax/recordkeeping reasons that is still in the STAR Fund. DH actually wanted to go to 100% bonds, but I completely disagreed, so we went with Wellesley. This represents a pretty significant shift for us (according to Morningstar X-Ray, we were at 51% stocks before the shift), and I think it marks the beginning of our pre-retirement retreat from stocks. Right or wrong decision? Who knows? Time will tell. But a lot of thought went in to it, and again, as unconventional as it may be, it seems like the right move for us.

Saturday I spent all day at a volunteer event ... hard work but also social & rewarding & fun.

Sunday DH & I went to Asia Cafe where we spent $17 total (including tax) on a great Szechuan Chinese lunch. It's counter service so there is no tipping. The food is great; best Chinese we've had here in Austin. I highly recommend it to any Austinites who might stumble upon this blog.

After that we went to the Pioneer Farm Museum. Austin was having a 1-day event where admission at many museums around town was free. (Regular admission at that museum is $8.) The museum itself was really interesting, but what I enjoyed the most was how it prompted DH to start reminiscing about summers he spent as a child on his grandmother's farm ... using the outhouse, traveling down an unpaved road, feeding chickens & hogs, etc. It's not something he has talked much about, and I enjoyed hearing those memories. His grandmother was a tough & wonderful woman that he loved dearly.

In the evening I crashed & watched High Fidelity on DVD from the library.

There was a fair amount of driving around, and of course the cost of the lunch, but all in all it was a fairly frugal weekend for a whole lot of fun.

As mentioned in my last post, on Thursday we met with an estate planning attorney. DH & I talked about it a bit on Friday, mostly me asking if he wanted to proceed and him saying "maybe later ...I want to think about it a bit more." On Saturday I came to the conclusion that DH was never going to go for the high lawyer fee, that he was going to keep saying "later" indefinitely, and that could mean our documents not getting redone. As much as I really want to get some professional, proper documents in place, I also know that if I push DH all I'm going to get is push-back. (Same thing would happen if he tried to push me in to a major financial decision against my will ... we are both pretty strong and kind of stubborn that way ... it really bugs me when I hear people say things like "my way or the highway" when it comes to financial decision-making in a marriage ... but, I digress.)

So, I came up with a major compromise that I'm not thrilled about but that I know will at least mean getting new documents in place.

I asked DH if he would agree to let a top-notch estate planning attorney of my choice do our estate documents, regardless of the price, when we turn 50, if I do the documents myself now using Legal Zoom or DIY software. His eyes lit up like Christmas morning and he readily agreed. I think I'm going to have him put it in writing ... He has been known to conveniently "forget" promises made years prior.

Now I need to decide which program to use, and more importantly I need to decide if I want to do a DIY revocable living trust (the thought is intimidating, but maybe I just need more knowledge) or if I want to stick with a simple will for the time being.

Today DH & I had a consultation with an attorney who specializes in estate plans. Tho it's been almost 2 years since we moved to Texas, I wanted to wait until after we had purchased a house to re-do our estate documents. DH is a bit flabbergasted at the cost (we really should go for a trust this time instead of a simple and less expensive will) and may need a bit of time to get used to the idea of the cost before we proceed. But I really don't want us to delay too long ... Such an important part of our overall financial plan.

Yesterday morning, while I was running the good ol' Epi Slim over my face (those of you who will recall my angst about a facial waxing may be interested to learn I have adopted a DIY approach), I started thinking about the upcoming lawyer appointment.

Thoughts started to wander: estate planning ... facial hair removal ... I sure am getting older! The instant that thought started to turn into a whine, my thoughts jumped to my friend from college, SB.

SB turned 21 over winter break of his junior year. He went out drinking to celebrate, crashed his car and died.

Hard to believe that was over half a lifetime ago.

Hard to believe it's already been 8 years since 9/11/01.

I will take getting older and all that comes along with it thankfully.

For all the parents, homeschoolers, teachers, and adults who like to color, this is a pretty cool site:

http://www.coloringcastle.com/

(I discovered it when putting together "informational packets" for our 7 relatives who will be visiting from overseas. I wanted simple & clear maps of the USA & Texas, so they could get a sense of where Austin is. The maps on this site fit the bill exactly.)

I've mentioned that my in-laws were planning to come for a visit. FIL just got the go-ahead from his doctor, so it's official, they are coming in November.

I think I mentioned that a few aunties & uncles decided to tag along, so we were expecting a group of 4-5.

Last night DH told me that another couple relatives decided to tag along as well, so now we're up to 6-7 visitors ... for 3 weeks!

The good news? This will be FUN! The more the merrier. I am so glad that they are seizing the day and making the trip. This will be the last trip overseas for FIL, and the other relatives would never come alone, so I think they realized that it's now or never. These are all senior citizens, and for several of them it will be their first (and quite possibly last) trip out of their country.

The bad news? I am not equipped for a household of 9 adults. I am going to have to buy things I had not planned on buying, such as another air mattress, bedding, towels, slippers, eating utensils, etc. And renting a passenger van is the only option with that many people and all of their luggage and only 1 driver (DH while I'm at work) ... that's not cheap (I called several places today to get an idea of price ... we're talking $2K plus tax not to mention the gas). I had budgeted $4K for this visit (DH will be visiting various cities around the country with them so we will have those expenses in addition to housing & feeding & transporting), but clearly that is not going to be enough.

You'd better believe I will be keeping an eye out starting now for bargains and stocking up on "essentials" such as TP, etc. If we're going to be spending over $2K just on transportation alone, we better save a couple bucks anywhere we can.

While the thought of having 7 international visitors staying in my house on top of working is a bit overwhelming, I must remind myself that the most important thing is to give these family members a wonderful stay that will provide them with happy memories for the rest of their lives.

Breathe ... plan ... breathe ... plan ... breathe ... work the plan ...

It fell to earth, and I DO know where!
(Apologies to Henry Wadsworth Longfellow)

5 years ago DH wanted to source some new product for his business. I researched companies and recommended he buy from "Company XYZ" (which he did, and he still does business with them). 3 years ago "Company XYZ" sales rep "Mr. Jones" flew to Seattle for a meeting with my husband. On his return flight, "Mr. Jones" met flight attendant "Ms. Smith."

Today we received a very special piece of mail:

"The honour of your presence is requested at the marriage of 'Ms. Smith' and 'Mr. Jones' ... "

Tho' we had no way of knowing it at the time, it looks like Cupid lent one of his arrows to DH & I.

My "workouts" this weekend included...

1. Watering my little veggie garden
2. Giving my dog a bath
3. Walks with above-mentioned clean dog
4. A bit of routine housework and laundry
5. Cleaning out all the window tracks (The grimy parts that are under the bottoms of the windows ... they are partially exposed to the outside & get filthy ... you have to lift the windows to clean them. I don't know if "tracks" is the proper name or not.) Gosh - we have a LOT of windows!
6. Sanding & painting 2 old dressers (this included carrying them out to the garage, and moving a bunch of bricks around that I used to anchor the newspaper I used to protect the garage floor. That was followed by over 3 hours hours of bending & squatting & scrubbing & rollering & brushing. Carrying them back in to the house, re-stacking the bricks, and cleaning up will be my "workout" in a couple days (I will let them dry much longer than necessary before I dare to put them back on the carpet.)

Who needs the gym when you have a house, a yard, and a dog?

When I was in my 20's, I would have done the above and then gone out dancing! But now ... well, I'll admit I'm tired & sore (it was re-furbing the dressers that did it) and I think I'll just crash on the couch this evening with a movie (I have "Wall-E" from Netflix).