I write the words “I wish I had better news for you” almost every day.

They’re usually in an email to a consumer with a complaint and they’re preceded by a brief explanation that they don’t have a valid case against the company they’re complaining about.

Consumers usually think it means I’m telling them, “No – I can’t help you.” But it’s actually much worse than that: it means the case is unsolvable.

Unsolvable cases – not to be confused with cases I refuse to mediate – come in all forms.

This morning I wrote “I wish I had better news” to someone who wanted a refund from a business that had declared bankruptcy in 2010 and no longer existed, after telling him I couldn’t help him get his money back.

Yesterday, I sent the message to someone who was treated rudely by a customer service agent (how do you compensate someone for rudeness?). And the day before, I said it to someone whose credit expired, in accordance with the terms and conditions of his purchase.

I hate having to say it, by the way. That’s why I’m writing this story.

Here are my four favorite “lost” causes and how to avoid becoming one.

The bankrupt business.

When a company is struggling to survive, it may have a last-minute fire sale to drum up business. Tempting? Sure, but watch out. If that company folds, you may find yourself holding a service that’s worthless or a product that isn’t covered.

But you can avoid this lost cause by doing business with a company that is healthy and protecting your purchases by making them with a credit card, which can sometimes retrieve the money you thought you’d lost.

The slight.

In this “always-on” society, the idea of good customer service often takes a back seat to profits. So when readers complain to me about bad service, I’m sympathetic. But to what are you entitled when your server sneers at you or your mechanic tells you “your car will be done when it’s done?”

Nothing, actually.

You are entitled to take your business elsewhere, to a company that values it and wouldn’t dream of letting one of its employees sneer or snub you. Sadly, that’s the only solution I can recommend.

The onerous terms.

If you’re a regular reader of my posts on this site, then you know that companies try to slip some of the most outrageous contracts under your nose (and sometimes they don’t even let you read them). All the more reason to pay attention to the terms and make sure you know what they are before making your purchase. Once you’ve plunked down your credit card, it’s too late – you’ve agreed to the terms and the company policy governing it, whether you like it or not.

My advice? If you don’t like what you read, move on and find a business that offers a fair contract.

The rules you should have known (but didn’t).

I get a fair number of questions about travel visas and passport requirements. These rules can be complex, but one thing never changes: meeting them is your responsibility before you get on a plane or board a ship. I’ve seen many cases of people buying a product or service without being aware of all the rules, even though they should have.

You are unlikely to persuade a business to drop the sales tax on an item or let you board a flight without the right visa. I can’t persuade them to, either. Know the rules before you make your purchase.

The world is filled with lost causes, and every time I have to tell a consumer that theirs is one, it pains me. But these simple steps can help you avoid the worst of them.

Christopher Elliott is a consumer advocate who blogs about getting better customer service at On Your Side. Connect with him on Twitter and Facebook or send him your questions by email.

 

These days we hear every conceivable argument about why the bull market will die, or stop, or correct, and by how much, how fast, etc. Among the many triggers discussed, there are EU elections, job creation angst, social media bubbles, fiscal cliffs, solar flares, lunar cycles, lycanthropy (after all, we have seen a record number of investors morphing into bears since ’08), and yes, the specter of the all-powerful price at the pump.

In all seriousness, I’ve talked about the negativity bubble a number of times, and in my view, it’s still thriving.

What we don’t really hear, or hear a lot less of, is what will keep the bull running. Hosts of experts will talk endlessly about earnings growth (yes, guilty as charged, I use that myself), but I don’t see a lot of clear, cohesive work on the macro factors that will drive the need to produce, expand, grow, and compete. I also don’t see market pundits blending those factors into a matrix that compares all the choices in the investment landscape.

I do this every day, so let me share some key variable/themes and how they interplay. When (not if) the bull continues, you’ll have this partial list of key reasons:

Competitive Innovation

To me, this is the ultimate driver of wealth creation and the biggest factor in determining long-term growth of corporate cash flows. What have companies like Caterpillar (CAT), 3M (MMM), Apple (AAPL), IBM (IBM), Google (GOOG), McDonald’s (MCD), and Coca-Cola (KO) done in the last five, 10, and 30 years or more? They’ve assessed, invented, developed, produced, and, ultimately, competed.

US GDP

Last year, I called for a GDP re-acceleration (Q4 delivered 2.8% and Q1 at 2.5%) while ECRI was calling for another recession. Also, early and through the first half of Q1, most economists were in the 1.3-2.0% range. As the quarter progressed, estimates progressively edged higher. While the economy will likely remain lumpy, we are nowhere near those double-dip fears common during mid-last year’s EU scare fest.

Another theme of mine, the “jobs tsunami thesis,” has also been bumpy since early 2011, but it’s still working better than the clarion calls for near-zero job growth. Further, the PMI, LEI, ISM, and Regional Fed surveys increase the odds that economic activity in future quarters will stay in a 2-3% range, rather than the zero line or below.

Very Low Rates

Simply put, the current Fed and global central banks are holding interest rates at levels well below what would normally be considered highly stimulative. Rates could rise 200 bps, and still be at levels where prior Fed easing cycles have stopped at the lows. In my view, this is vastly under-appreciated. Moreover, very little credence is given to the duration of these low rates. This duration effect produces a compounding factor for future stimulus.

Realignment of Consumer Savings Vs. Debt Load

I believe one of the most significant long-term benefits of the real estate bubble popping could be the significant rise in the savings rate. If this holds, the future consumer will continue to shift from spending irrationally to saving rationally. This will pay huge dividends for long-term future consumption, as it amplifies the future wealth effect.

Europe Is in a Recession, So What?

OK, so the EU (or most of it) is in a recession. The key question is: how severe is this recession and how much does it impact the US? However, the net effect of the EU economy on US GDP looks to be materially overstated by many.

First, there’s the simple fact that economic activity in the EU region is already at a lower base. Second, the effect or impact of Europe’s problems on the US GDP is often overstated. A recession in the EU of negative 2.5% would reduce the US GDP “measure” by 0.1%. For example, US GDP of 3.0% would drop to 2.9%. An even steeper decline of 5% in economic activity (which would be massive off the current base) would drop the rate to roughly 2.8%.

(It’s worth noting that at a 7% growth rate, China creates the GDP equivalent of Greece (annual output) in 11 weeks.)

At the end of the day, the raw impact of an EU recession is minor. The only significant factor to consider is whether another dramatic shock in the EU will set off another global banking contagion. While we can’t say this is ever off the table, I think two factors reduce a contagion likelihood. The first would be the aging of the bad debts and losses already taken since 2008; the second is the LTRO (or Long Term Refinancing Operation) and its ability to help EU area banks increase earnings, thus allowing for more retirements of bad debt.

Valuation Expansion

US markets are poised for meaningful valuation expansion. This will be magnified in the growth stock universe, where valuations have essentially dropped to traditional value stock comparables. For some more quick math, if US earnings (on SPX) are $105 and stocks trade at a multi-decade average (50 years) P/E of 14, the value of the index would be 1470.

Now, let’s say the growth stocks trade at a more traditional, but low, PE of, say, 18 (well below the growth that many companies are producing), and the value stocks remain at 14 times. In that case, the index PE would rise to 16. Sixteen times $105 equals 1680.

Bottom line, we haven’t entered the bottom of this range yet. And I don’t think it will stop at the 1470 level.

Competition for Investment Dollars

Let’s look at today’s landscape. Fed funds rate near zero, thus money markets pay nothing. Ten-year Treasuries are at and below 2%. Solid corporations are at 3%. The bull has been running with the ancient metal of kings on his back for between 10-15 years. That high price of gold has to be weighing on him.

We can’t all buy farmland. We can’t all buy five to 10 houses, or more, and turn them into rental properties. We can’t all own and maintain apartment complexes. And none of those higher dollar (and maintenance) alternatives offer day-to-day liquidity.

Therefore, considering all the investment alternatives, stocks are looking more attractive versus all other reasonable investment alternatives.

“7 Reasons Why the Bull Market Will Resume” was written by Sean Udall and provided by Minyanville.com. 

Like most people, you don’t like to pay too much. To that end, you’re into buying things second-hand, from clothing to cars. But be careful: not everything is something you should buy second hand. In some cases, you’re merely getting a bad deal. In other cases, you’re actually putting your family in danger. Here are some things that even the most conscious penny pincher should never buy used.

Baby Furniture

It’s great to get your baby’s clothes from a second-hand store. Especially since babies outgrow clothing so quickly, you’re going to save a ton of money. But there are some things you should never buy your newborn second-hand. Cribs are the most dangerous thing to buy used, but, in general, don’t get any baby furniture second-hand. You can never tell what’s safe and what has been the subject of a recall since it was first manufactured.

Ditto on car seats, which are literally stamped with an expiration date, as technology is constantly improving and safety regulations change. It can also be impossible to tell if the car seat was involved in an auto accident. If that is the case, the car seat cannot be used again- they are only designed to protect children from a single accident. Stay on the safe side and purchase your car seat brand new.

Computers and Consumer Electronics

Consumer electronics can add up quickly, but that doesn’t mean you should go trolling Craigslist for your iPhone. The reason being many of the great deals in classified ads aren’t great deals at all — they’re hot merchandise. The Internet is increasingly becoming a place to sell stolen goods and consumer electronics are some of the biggest offenders.

The worst part is, if you buy a stolen computer and it gets tracked to you, you’ll likely lose your computer and get nothing in return. In a nightmare scenario, you can actually be charged with a crime. Even if you do buy a computer that doesn’t have a sketchy history, it might be damaged in ways that aren’t easy for you to see. Better to avoid the situation completely by buying refurbished computers, not previously owned ones.

Bedding

America’s city dwellers know all about the silent epidemic: bedbugs. Once they come into your home, you’re going to have one heck of a time getting rid of them. You might as well start considering them your new roommates and asking them to chip in on the electricity bill. Help keep these little bloodsuckers out of your personal space by never buying used bedding or mattresses. You might balk at the price tag of a new mattress, but it’s significantly cheaper and less stressful to just buy one new, rather than trying rid your home of bedbugs. Be careful about any couches or upholstery you buy for the same reason.

Helmets

Never buy any kind of helmet second-hand. The reason being, helmets are designed to protect your head from a hard crash. Note that we said “a” hard crash. That’s because, just like a child’s car seat, helmets are only designed to protect your head from a single impact. Once they’ve taken that, they might be better than nothing, but not much. Whether you’re buying for a bicycle or a motorcycle, don’t skimp. Get something new and the finest quality your money can buy.

Makeup

Buying second-hand makeup is a great way to get yourself sick. You might save a few pennies, but you’ll probably quickly spend the money on cold sore treatments and visits to the doctor for pink eye. Used makeup, and the cases it comes in, are often breeding grounds for infectious disease and bacteria. If you want to save on cosmetics, consider making your own instead of buying them new. You can also check out MintLife’s list of the 10 best drug store beauty buys.

Vacuum Cleaners

Think about how much abuse a vacuum cleaner takes in an average year. You put it to work on the regular, probably without a great deal of thought about how you’re treating it. Vacuum cleaners, even good ones, have come down in price to the point where it’s cheaper to buy a new one than it is to repair an old one. Don’t bother saving a few bucks here.

Nicholas Pell is a freelance writer based out of Hollywood, CA. He buys just about everything used. 

Lazy days of summer? Hardly. All that nice weather means there are plenty of barbecues, picnics, and other parties to attend and host.

That busy social calendar, in turn, can mean elevated food costs. An American Express survey from 2011 found that 64% of consumers planned a blowout summer celebration, spending $422 on food and drink for 17 guests. Three-quarters of hosts say they plan to ask guests to chip in by bringing a dish, too.

But you don’t need to limit your menu to crudités or bring chips-n-dip to every event to stick to a budget. With a little creativity and a few recipe tweaks, you can whip up summer favorites for less. Here are a few tricks to save, followed by a handful of budget party recipes:

Grow your own herbs.

Spending a few bucks on small pots of herbs for the garden is cheaper than paying $3 for a bunch of fresh basil to make Caprese salad, or $2 for mint for Juleps. “You might get up to 10 times as much in yield from a plant, and still pay roughly the same price,” says Kendal Perez, deals expert for FreeShipping.org. Perez’s cheap go-to: caprese salad, using homegrown basil, cheap tomatoes from the farmer’s market, and mozzarella bought in bulk from a warehouse club.

Pull together cheap cocktails.

Use what you’ve got, rather than buying more booze. Chances are, you have the makings for an inexpensive sangria or punch. Even flat soda from a previous party works, says a spokeswoman for DIY site The Poor Porker. To make a “Pepper-Razz” cocktail, muddle six raspberries in a shaker, add two ounces white rum, and four ounces flat Dr. Pepper soda. Add ice and shake. Strain into a martini glass and serve with a fresh raspberry garnish.

Stock up early.

“Pick up essentials such as barbecue sauce, ice cream, and hot dogs in May, which is typically when sales are best,” says Steven Zussino, the president of Grocery Alerts (www.groceryalerts.ca). It’s also a good time to pick up charcoal for the grill. You’ll save 15% to 20% compared with other summer offers.

Use marinades.

They’re inexpensive and give a boost of flavor to of meat and veggies. You can get by with cheaper, tougher cuts — the marinade will tenderize them — instead of pricier steaks. Chef Brack May at Cowbell in New Orleans (www.cowbell-nola.com/), marinates skirt steak in a little olive oil, fresh lime juice, and pureed roasted jalapenos.

Add in salad.

You can get creative with in-season produce. Chef May pairs that skirt steak with a salad made from a quarter of a watermelon (chopped), four cups of tomatoes, a half-cup julienned red onion, a half-cup chopped cilantro, and two Serrano chilis. Combine with a quarter-cup each of lime juice and olive oil, two tablespoons chopped basil, two tablespoons honey, and a pinch of cumin.

Or get creative and incorporate cheap nutritional powerhouses, like beans and potatoes. “Sub in rice for pasta in all your favorite pasta salads,” says Janet Groene, of “Camp and RV Cook” (www.campandrvcook.blogspot.com). It’s cheaper and more nutritious.

Frugal Foodie is a journalist based in New York City who spends her days writing about personal finance and obsessing about what she’ll have for dinner. Chat with her on Twitter through @MintFoodie. 

Investing directly in a movie could be a perilous endeavor. Scouting the right talent, managing production costs, and finding the right distributor are but a few of the hurdles that investors share as the production moves forward to fruition or perdition. The hardest to gauge is the personal whim of the moviegoer. Taste is fickle. A story with a broad appeal in one decade could fall flat in the next. If a movie does well, it may open the possibilities of a franchise; if it flops, it could claim numerous casualties, from studios to the careers of actors.

Considerations Before Investing

Good investors use due diligence. So it is with investing in movies. The private equity/hedge fund vehicle appears to be the most common means for direct investment. Unsophisticated investors need not apply. The risks of such an enterprise can be substantial and are better suited for the family office or pension client.

Due diligence throughout is critical. Offering documents must accord with applicable securities law. What is the producer’s reputation? Experience? Backing one with nary a track record is akin to investing in a mutual fund with rookie portfolio managers. What is the film’s potential market? Blockbusters tend to have a broad appeal; foreign films and documentaries, black and white and silent films have less appeal. Notable exceptions would be Spike Lee’s “She’s Gotta Have It” and the recently feted best picture, “The Artist.”

What if the film has no A-list talent? That could be a problem, though sometimes the film itself is the talent. Name recognition could vary, too, depending on where the film is targeting its release. Learn about the director’s vision- an outsized ego can prove fatal.  Are the interests of the filmmaker properly aligned with the distributor and investors, or does much of the revenue inure to the benefit of the filmmaker? Is the investment a fair arrangement?

Where the Money Goes

Typically, revenues are first used to repay investors all of their investment and debts incurred. The process is akin to a return of basis or of the investment. Next would be profit sharing, or the return on the investment. Often, the split is even between the producer and investors. The film’s stars, writers, and director are paid from the producer’s profits. Any investment proposals should be in writing and contain an arbitration clause for a more cost-effective dispute resolution. Filmmakers would do well to have such a clause when dealing with financially stronger distributors in order to protect the former’s interests.

The producer should have secured a completion bond which is a surety bond that kicks in to pay for cost overruns rather than having the investors shoulder the burden. Different fundraising options should be considered, depending upon the script and budget. Tax incentives properly pursued are another revenue generator, so long as the incentive tail does not wag the movie dog. The filmmaker should escrow funds during the fundraising stage of the film. This helps to ensure transparency and accountability. If insufficient funds are raised, then they should be returned to investors. All of these considerations point to the need for any investor to work with a professional with experience in the film industry.

The Way Forward

As an asset class, film would appear to be uncorrelated to the other types of investments and somewhat recession-resistant, as people still go to the movies or rent them. Slate financing is the hedge funds’ approach to risk management and return generation. This approach simply entails investment in a portfolio of films, rather than a single production. Through diversification comes a more proper balance of risk and return. What films are included in the portfolio may be a function of how the fund’s co-financing efforts with the production and distribution company work through the film studios. Part of the challenge is untangling opaque financial accounts through due diligence in the quest for greater transparency.

The movie industry plays in the form of common shares, and is available to individual investors, who need to understand where in the chain of production the companies lie and to what risks those companies are subjected to. For example, is the investment in a studio like Lionsgate (which nearly doubled its share price since the beginning of 2012) or distribution like Netflix or Coinstar?

The Bottom Line

Have movies been commoditized? Consider how easy it is to access a favorite movie. The theater is but the first of several distribution channels which include cable television, Internet, and rental outlets. Ready availability of content has stolen a march on the movie theater experience and created more revenue streams and greater profitability. Perhaps it is for this reason that the Academy Awards this year focused on the lost grandeur of the Golden Age of film.

“How to Invest In Movies” was written by Marc L. Ross and provided by Investopedia.com. 

On Thursday I attended the first-ever White House Summit on Financial Capability and Empowerment. This event was designed by the Obama administration to advance financial knowledge in this country—particularly among the young, who were well represented in a room normally filled with Important People in suits and ties. Government officials, employers, community leaders, NFL stars, and school kids all spent a few hours talking about what they’re doing—and what more can be done—to help people take control of their financial futures.

I was especially proud when Cecilia Munoz, the director of the White House’s Domestic Policy Council, announced the launch of Money as You Grow. This online, interactive tool, which I spent more than a year working on as a member of the President’s Advisory Council on Financial Capability and have mentioned on this blog a few times, gives families a way to teach kids, from ages three to 23 and beyond, the simple, essential money lessons they need to know as they grow.

Inheriting a Daunting Financial Landscape

Now is the moment to start teaching young Americans the ins and outs of personal finance. With higher than average unemployment rates and ballooning student loan debt (the total just reached the $1 trillion mark!), young people inhabit a daunting financial landscape. Yet recent surveys show that many of them can’t answer even basic questions about interest, insurance, and how to comparison shop. (For the record: Older adults don’t fare much better on financial literacy tests.)

Nearly a quarter of young adults do not have bank accounts, which means their money isn’t insured by the FDIC and they may be using payday lenders and other high-cost alternatives to perform basic services like cashing paychecks. Roughly two million college students who qualify for Pell Grants miss out because they don’t apply. College students who leave school with debt owe, on average, around $25,000 in loans!

Teaching Adults to Be Financial Role Models

Research shows what many of us could already guess: The number one influence on young people’s financial behavior is their parents. This is where Money as You Grow comes in. With its down-to-earth language and sound, clear principles, Money as You Grow gives adults the tools to be the best role models and teachers they can be. It draws on nearly every important curriculum, standard, and study that aims to educate children about money and distills the “greatest hits,” if you will, into 20 age-appropriate lessons and corresponding activities designed to influence kids’ financial behavior.

The lessons cover everything from basic realities (“you need money to buy things”) to new realities (“it can be costly and dangerous to share information online”), driving home important lessons about saving, credit, paying for college, and investing (it’s never too early to start!). You can see it for yourself at MoneyAsYouGrow.org.

Parents Learning Along Side Their Children

Not long ago, one of my sons, still in grade school, asked my husband and me what compound interest was. After we got over our astonishment, I was able to tell him (check out Lesson #11 on MoneyAsYouGrow.org for a quick explanation), but not every parent is a financial journalist. (And even I need to brush up on some this stuff from time to time.) In fact, one of the best things about Money as You Grow and another project I was recently involved in, Sesame Workshop’s For Me, For You, For Later, is that parents learn along with the kids.

Several government and nonprofit organizations including the USDA, American Library Association, and the National PTA have already partnered with the President’s Advisory Council on Financial Capability to build awareness about Money as You Grow. The best part is that it’s catching on with parents—especially moms—who are pinning it like crazy on Pinterest. In the week before it was officially unveiled at the summit, more than 100,000 people visited MoneyAsYouGrow.org! The goal: to reach more than 100 million families by year’s end.

Financial Empowerment = Economic Strength

At the summit, Gene Sperling, director of the National Economic Council and someone whose advice I’ve come to value a great deal, remarked that after the recession from which we are still healing, we don’t need more evidence that financially empowering people is a national economic imperative. Money as You Grow, he said, “is thoughtful, simple, and common sense,” and can put people on the right path, just as driver’s ed teaches kids the rules of the road before they get behind the wheel of their own car.

As a mother of three, I want Money as You Grow to be part of a broad movement to send kids out into our increasingly complex financial world ready to thrive. Together, we can do this!

© 2012 Beth Kobliner, All Rights Reserved

Beth Kobliner is a personal finance commentator and journalist, the author of the New York Times bestseller “Get a Financial Life: Personal Finance in Your Twenties and Thirties,” and a member of the President’s Advisory Council on Financial Capability. Visit her at bethkobliner.com, follow her on Twitter, and like her on Facebook.

 

Remember the Roth IRA Movement day two months ago? Along with a couple hundred other personal finance writers, I tried to twist your arm into opening a Roth IRA, the most flexible retirement account in America.

I explained that the Roth IRA lets you contribute after-tax dollars and withdraw them tax-free during retirement and that everyone with an income under $125,000 (single) or $183,000 (joint) can contribute to one.

Oh, and I also mentioned that a Roth IRA can double as an emergency fund.

You could hear the tsk-tsk noises far and wide. Encouraging people to raid their retirement accounts for a garden-variety emergency? Investing your emergency money in the stock market? Irresponsible!

Well, I stand by my advice. For many people, but not everybody, a Roth IRA can make a great backup emergency fund, or even your entire emergency fund. Would it work for you? Read on.

But first, let’s excuse a couple of people who should NOT use their Roth IRA as an emergency fund:

• If you make too much to contribute to a Roth IRA, forget it.
• If you make enough to contribute $5,000 in retirement savings to your Roth and still have plenty left over to put in an emergency savings account, do so.

Robots vs. humans

If you’ve ever gotten into credit card debt, you know that there’s an endless debate about how to repay it: start with the highest-interest debt, which results in the lowest overall interest payments? Or use Dave Ramsey’s “debt snowball method” and start with the smallest balance, which keeps you motivated by serving up small wins near the beginning of the process?

Using a Roth IRA as an emergency fund raises the same issues: mathematically, there’s no question that it makes sense. But once you add real people with their human foibles into the equation, it gets murkier.

The reason we’re talking about this at all is that the Roth IRA has a unique feature among retirement accounts: you can withdraw contributions tax-free and without penalties at any time. If I put $50 into my Roth IRA, I can withdraw that $50 at any time in the future, even if I’m nowhere near retirement. If I earn interest (or dividends, or capital gains) on the money, I can’t withdraw that interest without a penalty, only the amount I contributed.

With this in mind, let’s walk through a simple example of someone tapping their RothIRA for an emergency.

Let’s say I just got my first job, and I can save $4,000 per year outside my 401(k). I put $4,000 in my Roth IRA. Then I have a $1,000 emergency. I’m left with $3,000 in my Roth.

Here’s where the fingers start wagging. As Bankrate.com put it, “When you withdraw money from your Roth, you lose the benefit of having the money grow tax-free over many years.”

This is true, but irrelevant, because you also lose the benefit of tax-free growth if you never put the money in the Roth in the first place. Think of it this way: every dollar you save is more valuable in a Roth (because it grows tax-free) than in a regular savings account. Anytime you fail to use your whole $5,000 of annual Roth contributions, you’re paying unnecessary taxes.

The humans strike back

That’s all fine for the robots who never misbehave financially. The humans would like to point out that taking money out of your retirement accounts before retirement is a bad habit and if you’re doing it for every two-bit emergency, you’re going to wind up in retirement with $125 in your Roth IRA.

“I don’t think that we can make an argument against a wise utilization of an account simply because of fear of exceptions,” says Tim Maurer, a Certified Financial Planner with the Financial Consulate near Baltimore.

Maurer doesn’t advise using a Roth IRA as your only emergency fund, but for a young saver, considering the Roth IRA as a backup emergency fund can actually reinforce good behavior. “They can be slightly more aggressive with their retirement savings,” he says, “recognizing that if they absolutely had to go get a little bit, they could.”

In other words, knowing that you could raid that Roth IRA without penalty if you really had to means you can be aggressive about filling it up, even if it means taking longer to build that legendary “six months of expenses” emergency fund.

Another notch in the “pro” column: typically, when you take a withdrawal from your Roth IRA, even if you’re withdrawing contributions without penalty, your bank or brokerage will give you a stern warning, something like, “Are you SURE you want to do this? I’m going to have to tell the IRS about it, you know.” It’s enough to make you think hard about whether you’re spending on a real emergency. Regular savings accounts aren’t so naggy.

Stocking up on savings

Now, what about that last objection? A young person’s Roth IRA is typically filled with stock market investments. You wouldn’t invest your emergency fund in stocks, because it might be a fraction of its former self in the midst of an emergency. (Especially since emergencies like unemployment or loss of health insurance tend to coincide with recessions, which tend to coincide with stock market plunges.)

Well, there’s no law that says you have to invest your Roth IRA in stocks. You can build an emergency fund inside your Roth IRA using a short-term bond fund or CDs with minimal withdrawal penalty. You can even put a plain-old online savings account inside your Roth IRA.

No, none of these investments offers much in the way of interest. But they pay even less interest outside your Roth, because outside a Roth, the interest is taxable. Once you’ve built up a solid emergency fund, inside or outside your Roth, then you can add risky investments to your portfolio.

Basically, here’s what I’m saying: if you’re responsible and a good saver but are not yet in a position to save more than $5,000 outside your 401(k), you should take full advantage of Uncle Sam’s tax-free box called the Roth IRA. If you’re irresponsible and a bad saver, you’re going to have trouble building an emergency fund and retirement savings no matter what box you use.

Tim Maurer disagrees, and he’s a professional advisor, so I’m going to give him the last word and then let you weigh in in the comments.

“Habits that you start early have a tendency to be more difficult to break,” says Maurer. “If you gave someone that 100% freedom—you’re young, you’ve only got $5,000 in discretionary dollars, let’s just hope you don’t have any emergencies—and just throw it all in the Roth…it may be more difficult for them at any point in time to say, oh, well, now let’s set aside five, ten,  or $15,000 to purely have for emergencies.”

Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.

Do you want to try online dating? Before you use your heart, use your head. I recently went online to review three top sites – here’s the straight scoop on what you pay and what you get.

Remember when Meg Ryan met Tom Hanks in an AOL chat room? In the 1998 hit movie You’ve Got Mail, they fell in love online and the rest is romantic comedy history.

Today, online love is big business. In 2009, 22 percent of heterosexual couples and 61 percent of same-sex couples met online, according to CNN.

As a single woman myself, I decided to try three of the biggest and best-known services – but to find a bargain, not a mate. I wanted to find out which online matchmaker offers the most bang for the buck (no pun intended.) After a month of dutiful searching, here’s what I found:

eHarmony

Cost: Ranges from $19.95 per month to $59.95 per month.

Background: eHarmony claims it’s responsible for 5 percent of U.S. marriages, but the lengthy application process was responsible for giving me a headache. To sign up for eHarmony, you answer a series of basic questions, followed by a lengthy questionnaire eHarmony uses to develop your “personality profile”  The questionnaire consists of 307 multiple-choice and fill-in-the-blank questions in total. I spent more than two hours rating my intelligence, love of video games, and frugality on a scale of 1 to 5.

My biggest gripe with eHarmony is the cost. You get a discount if you sign up for a year: $19.95 a month for a basic plan, billed in three installments. Shorter contracts are billed much higher…

• 12 months – $19.95 per month
• Six months – $29.95 per month
• Three months – $39.95 per month
• One month – $59.95

To add insult to injury, you’ll have to stay on top of your account unless you want to get charged again. From eHarmony: “In order to ensure uninterrupted service, all eHarmony subscriptions will be automatically renewed 24 hours before they expire.”

After you get through the grueling sign-up process, eHarmony is a decent site, but I didn’t find many matches. Searching only returned 65 profiles within my age group and personality type – in the entire country. Other age groups returned more matches, especially 35 to 45.

Conclusion: If you’re older than I am, and don’t mind high fees and long questionnaires, this might be for you.

Match.com

Cost: Free to browse, up to $34.99 per month for full access.

Background: Match.com also has a lengthy application process, but unlike eHarmony, the majority of the questions are basic interests and lifestyle choices. So instead of grading my charitable nature on a scale of 1 to 5, I spent half an hour listing movies I liked and coming up with my personal motto. (I chose, “It never got weird enough for me.”)

You can sign up, create a profile, and receive messages for free. But if you want to respond to messages and have full access to the site, you need to order a basic subscription. If you want all the perks, you’ll have to sign up for a “value plan.” The prices look like this…

Basic plans:

• One month – $34.99
• Three months – $19.99 per month
• Six months – $16.99 per month

Best value plans:

• Three months – $22.99 per month
• Six months – $19.99 per month

I chose the free subscription. My friend chose a basic plan. The only difference I noticed: She was able to send messages to other members first, while I had to wait for members to contact me before I could respond. The “value plan” gives you a highlighted profile and your profile will be one of the first emailed to new members. But that wasn’t worth the extra cost, in my opinion. I did find an even distribution of age groups on Match.com.

Conclusion: You get what you pay for, and free means waiting for someone to find you. So a basic plan is probably worth it.

OkCupid

Cost: Free for most services, $9.95 a month for a few advanced features.

Background: With OkCupid, starting your profile requires answering only a few questions, and photos are optional. I signed up in 10 minutes. But if you want an accurate match, you can answer any number of user-submitted questions – and there are hundreds of them to choose from. My friend has answered 1,301 questions, and there are still more to go. OkCupid compares your answers with the other user’s answers and gives you a “match percentage” based on the number of similar answers.

OkCupid isn’t the easiest site to navigate. But it does have one thing going for it – you can use any feature on the site or the app for free, although that means dealing with ads and tracked viewing. OkCupid‘s privacy policy explains they “track your use of our site” and “the information we obtain in this manner enables us to customize the services we offer our website visitors to deliver targeted advertisements.” But for $9.95 a month, you can browse anonymously and ad-free. I didn’t pay for that – wasn’t worth it to me.

Overall, I like OkCupid. I did get more “OMG! Ur hawt!” messages on OkCupid than I did on Match.com or eHarmony, which implies a younger audience. And what can you really expect from a free dating site? I did, however, have a few decent conversations.

Conclusion: If you’re just testing the whole online dating thing, start with OkCupid. You’ll get a feel for browsing through thousands of profiles and sending messages – and you may actually meet someone.

My results

While I didn’t have a You’ve Got Mail moment, I did make a few new friends. And that was worth signing up for, especially free. What would I pay for meeting the love of my life? It’s hard to say. But, for me, it’s not yet worth an outrageous monthly fee on the off chance it happens.

“Online Dating: How to Find Love AND a Bargain” was written by Angela Colley and provided by MoneyTalksNews.com.

Last week, the Columbus Dispatch published the findings of a yearlong investigation into the credit reporting system. The findings, as you can imagine, didn’t paint a flattering picture of the credit reporting system or the credit reporting agencies. And while consumer advocates and credit industry representatives will probably never agree on whether or not the system is broken, both sides do have valid points.

The True Error Rate is Still Unknown

There have been two recognized studies that purport to quantify the number and severity of errors in consumer credit reports. One was performed by the consumer advocacy group, PIRG in 2004. The second was performed by an industry-funded group called PERC in 2011. I wrote about both studies for Mint, here.

PIRG suggests that roughly 8 in 10 credit reports contain errors, while PERC’s study suggests that less than 1% of credit reports contain material errors. The study results are so far apart that they almost suggest that neither is fully accurate and the true error rate lies somewhere in the middle. Finally, each of these groups clearly has a constituency to represent, which has to call into question the methods and results.

There still isn’t a definitive study on credit report accuracy that you or I should consider to be 100% bi-partisan (consumer vs. industry). As such, we have no clue how many credit reports contain errors. I can tell you this: the credit reporting agencies receive tens of thousands of consumer disputes every single day.

Mixed and Confused Credit Reports

One of the scenarios profiled by the Columbus Dispatch study was the issue of how the credit bureaus match public record data (liens, judgments, and bankruptcies) with consumer credit files and how those records can sometimes end up on the wrong consumer’s credit report.

Your credit report is not a readymade file just waiting for someone to pull it. Instead, it is compiled from scratch every time a company asks for your credit report. The compiling of data is done using sophisticated matching logic, which attempts to collect any credit, collection, and public record data the credit bureaus feel belongs to the subject consumer. Once the credit report is compiled, it can be scored and then delivered to a lender.

There are a variety of items that can be used to match data with a consumer including address, name, Social Security number, and date of birth. The problem is that court records mask your Social Security number from being publically available and some states require the same with date of birth. So, you’re left depending on name and address to determine on whose credit report to place a lien, bankruptcy, or judgment. If your name and address are identical to that belonging to someone else, it can result in a mixed or confused credit file. Think of a father and son who share the same name and live, or have lived, at the same address.

There’s also the issue of human error when filing public records or legal actions. I served as an expert witness in a case where a consumer filed bankruptcy but his bankruptcy attorney transposed two of the numbers in his Social Security Number. The record of the filing showed up on another consumer’s credit report who was the owner of the incorrectly filed Social Security number. It wasn’t the credit bureaus fault and it wasn’t a courthouse filing error. It was the bankruptcy attorney’s error.

The System Isn’t Perfect, But It’s Far From Broken

FICO recently published data showing that 53.2% of the population has a FICO score above 700. That’s over 106,000,000 consumers. And while those consumers may not love credit reporting, they’re certainly not complaining loudly about their credit scores.

Here’s my “20+ years of experience” take on the system:

• Do credit report errors happen?
• Do consumers have to go through the headache of getting errors corrected?
• Do some consumer find it impossible to get errors corrected?
• Do some consumers end up suing to have errors corrected?

The answer is certainly “yes” to each of those questions.

• Are many consumer disputes frivolous, meaning they’re trying to get accurate but negative data removed from their credit reports.
• Are your credit reports accurate the majority of the time?
• Are most disputes satisfactorily rectified within a few weeks from the consumer’s dispute?
• Are many credit report errors “cosmetic”, meaning they have no influence on your credit scores or credit application decisions or rates?

The answer is certainly “yes” to each of those questions as well.

Is the credit reporting system imperfect? Yes. Is it broken? No.

John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and a contributor for the National Foundation for Credit Counseling. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. The opinions expressed in his articles are his and not of Mint.com or Intuit. Follow John on Twitter.

 

While finances might not be everyone’s favorite dinnertime conversation, parents who teach their children about money give them a head start on the road to financial success.

Whether your version of teaching children about money is giving them an allowance to budget, opening a savings account, or simply talking about how much things cost, opening their young eyes to the world of personal finance gives them a toolset they will use for life.

Based off a survey by T. Rowe Price, this infographic explores how often parents are talking to their kids about money, as well as which personal finance topics children are most interested in learning about.

Click “launch infographic” for an expanded view of Money Talks: Are Parents Open With Their Kids About Financial Matters?

If you are like the majority of Americans, you’re probably a little freaked out about the prospect of shelling out upwards of $4 per gallon at the gas pump this summer. Throw in the steep costs of other car-related expenses, such as insurance, repairs, maintenance, registration and parking, and it’s safe to say that having a car is hard on the pocketbook.

Put Your Idle Ride to Work

But for the 63 percent of us who say that the rising cost of gas have caused them some degree of financial hardship, help is on the way—car owners can now make hundreds of dollars per month on average by renting their idle ride to others around them through a peer-to-peer car sharing marketplaces. And since the average car sits idle 90 percent of the time, it’s really like turning your set of wheels into your own personal ATM, but with a lot more horsepower.

Thrifty car owners can recoup some of the costs of owning a vehicle—at the very least—and in many cases actually make a profit, depending on the location and availability of the car.

How Peer-to-Peer Car Sharing Works

The way peer-to-peer car sharing works is simple—owners with a vehicle that is not being used at times can register their car in an online marketplace, where approved drivers can rent them at hourly, daily and even weekly rates. Owners pick the times their car is available and set their own price. Only pre-approved drivers can rent cars, and every time the vehicle is rented, it is covered by the company’s insurance policy.

While on the subject of insurance, it should be stressed just how safe these marketplaces are. Not only are owners protected by an insurance policy during the duration of the rental, but car-sharing companies typically run driving record checks and have fraud detection measures in place to make sure that the person renting your car is who they say they are and is a good driver.

Plus, two-way rating systems are in place where owners and renters are graded by their peers, adding another layer of checks, making sure that only the best owners and renters participate in these marketplaces.

 Selling Vs. Renting

Many folks are finding that peer-to-peer car sharing is actually proving to be a bit of a financial windfall.

Many owners of the only national car-sharing service, RelayRides, for example, are pleasantly surprised by just how much they can earn through the service. RelayRides member Curtis Chong has made over $5,300 since enrolling his 2006 Honda Civic in RelayRides about nine months ago. “Kelley Blue Book had my Civic listed for about $4,800,” said Chong. “Renting my car to RelayRides members has earned me over $5,300, which basically means I get a free car.”

A good number of people with unwanted cars are also finding that they can actually make more money over time putting their vehicles in a peer-to-peer marketplace than they would by just selling their used car for a one-time lump sum.  Not only can you make more money than you would by selling, but you will be able to hang on to your old ride for the occasional road trip down memory lane!

Others who find themselves with an extra set of wheels because a son or daughter has gone away to college, or because a spouse is leaving home for a lengthy business trip, find that peer-to-peer car sharing is the perfect way to make extra money.

Making Green Off Going Green

Getting involved in a peer-to-peer car sharing marketplace has other great benefits as well. For example, peer-to-peer car sharing has amazing environmental, land use and transportation benefits, including lowering the number of vehicles on the road, reducing both traffic and vehicle emissions of greenhouse gases.

Sound good to you? Start making cash from your car by signing up for a car-sharing service, such as at www.relayrides.com now.

Shelby Clark is the founder of RelayRides—the world’s first online marketplace that allows you to rent cars from people near you across the United States. Car owners earn on average $250 per month from their idle vehicles, and renters can barrow for as little at $5 per hour. Learn more about how folks are saving and earning money and get regular updates on RelayRides at our blog: http://blog.relayrides.com/

 

 

 

 

 

It’s not for everyone, but some Americans prefer to live abroad, particularly as they reach retirement age. Retiring abroad can be a way to live in luxury on a budget, making it perfect for those on fixed incomes.

However, not all international destinations are created equally. If you’re looking to live in the lap of luxury on a modest income, these are the places you should be house hunting.

Non-Economic Considerations

Before choosing a country overseas to make your home, you need to consider factors other than the exchange rate. When selecting the right place for you think about culture, language, crime rates and political stability. Remember that you’re going to live there, possibly for years. This means a lot more planning goes in than simply having a vacation.

Ecuador

You might not be thinking “Ecuador” when looking for a retirement home, but you might want to. Not only is the cost of living low (common in Latin America), real estate is also very reasonably priced (more exotic).

International Living reports that a couple with a spartan lifestyle can get by on about $800, while those looking to live in the lap of luxury will be hard pressed to spend more than $1500. It’s easy to get by on nothing by the Queen’s English and there are a number of benefits for retired people, such as discounted utilities, transportation and entry to artistic and cultural events.

Mexico

South of the border is another place you likely hadn’t thought of retiring, but consider the following: Not only is real estate cheap, the weather is great and there’s a huge expatriate community. The largest is around Lake Chapala, where there are over 80 interest groups for expats living in Mexico.

Perhaps the best part? You can just drive there. Load up your minivan, get yourself a place with hired help who speaks English and start living the good life.

Malaysia

Malaysia isn’t just a place where you can retire on the cheap. The big cities also have all the amenities that Americans need when they decide to retire abroad.

Good cell phone coverage? Check. High-speed Internet? Of course. Quality, easily traversed roads? Yep.

Perhaps most attractive of all, Malaysia can be an easy place for Westerners to integrate. Malaysians are eager to practice their English, and American film is quite popular over there. The government has a program called My Second Home designed to encourage foreigners to retire in Malaysia, so take advantage.

New Zealand

Looking for a place to retire where you don’t have to learn a new language or try and decipher what people speaking English as a second language are trying to say? New Zealand might just be the place for you.

If you’ve ever seen Lord of the Rings you know just how beautiful New Zealand can be. The land of the Kiwis also appeals to the active health nut. It’s also one of the least-polluted countries in the world.

Got money to throw around? Split your time between the U.S. and New Zealand — it’s winter here when it’s summer there and vice versa.

Spain

Spain was the only country in Europe to be identified as a top place for expat retirees by International Living. Not only is it inexpensive, it also offers much in the way of cultural and artistic pursuits for the retired person looking to stay active. Art and architecture are literally everywhere, and you can score a top-notch, three-course meal for the cost of a $20 bill.

One word of caution: The European debt crisis could easily make this one of the worst places for expats to live. For the time being, however, you can get great food and a taste of international culture on a shoe string budget.

Logistics

Getting you, your family, and your stuff abroad can be a challenge. However, with the cost of living as cheap as they are in the above-listed countries, you might find it more prudent to sell the farm lock, stock and barrel, purchasing new stuff when you get to your destination. Always investigate local emigration and visa laws to ensure that your stay is fully legal.

Then enjoy the benefits of living somewhere that the dollar is still strong.

Nicholas Pell is a freelance writer based out of Hollywood, CA. He occasionally fantasizes about running away to Argentina for early retirement.

Imagine if the phrase “Everything old is new again” applied to technology — that consumers suddenly grew bored with intuitive design and began to hunger for, say, the touch of a bulky button or the sound of a dial-up modem. Well, as it turns out, gadget manufacturers have found a niche market in tech nostalgia.

56K Modem Simulators

Maybe it’s just me but the screeches, pops, and hisses of the Internet connecting of yore isn’t the stuff of wistful memories. They’re the tech equivalent of nails scraping on a chalkboard. I don’t fondly recall the carpal-tunnel-inducing exercise of clicking the “Connect” button over and over while competing with other users for server space. Of course, once you actually made it onto the World Wide Web, you barely had time to type in your Lycos search before the overloaded call center booted you right off.

But for those who find the silence of broadband and Wi-Fi deafening, those old ’90s sounds are still just a click away. Free-Loops.com offers a free Wav file download of the dial-up sound effect and Lazylaces brought an old US Robotics modem back to life – complete with blinking lights.

iRetrophone

Hands-free, schmands free. Wireless, schmireless. Sleek, schm — well, you get the idea.

If you need an excuse for keeping that vintage telephone table or are just looking for a decent bicep workout, an Etsy store called Freeland Studios has you covered. The iRetrofone is a 1950s-style telephone base, hand-sculpted in heavy-duty, half-inch thick urethane resin that acts not only as a docking and synching station for the iPhone, but an actual conduit for communication.

Pyle-Home Phonograph/Radio/Cassette/MP3 Player

Really? No eight-track player? This everything-but-the-kitchen-sink music system packs a century’s worth of music technology into one unit. The talking machine-esque Victrola design with classic horn is beyond retro. It’s barely 20th century.

But the Pyle Audio machine, sold on Amazon, is more than just an anachronistic novelty item. The USB port allows for the conversion of analog formats to digital files. You know, just like Edison would’ve done.

Crosley Duet Alarm Clock Radio

The only company to make this list that manufactured the original product it’s meant to replicate is Crosley. The vintage features of this Duet AM/FM clock radio, including the rounded shape, analog tuning dial, and clock face, are all inspired by the Crosley radio designs from the 1940s. The portable music player plug-in and patented AroundSound are postwar updates.

Powel Crosley, who founded the company in 1920 after being astounded by the $130 going rate for radio receivers, would be pleased to know his prices have stayed low. The $35 price tag he attached to his own meticulously-crafted mass-marketed radios back then would cost $377 in today’s dollars. Crosley’s current asking price for the Duet is $150.

iCade 8-Bitty Game Controller

Retro arcade gamers, rejoice. While there are any number of old school emulators out there allowing users to relive their Atari, NES, and Commodore 64 days, with today’s touch pads, few give the true button mashing experience.

Enter iCade 8-Bitty, the wireless game controller that gives Android, iPhone, and iPad owners a chance to experience the sore, calloused thumbs of their youth. Unlike the smudge-streaked screens of modern-era phones, the iCade 8-Bitty implements the old school directional pad (D-Pad) and four-button array that will Up, Up, Down, Down, Left, Right, Left, Right, B, A. Start up your nostalgia.

USB Typewriter

For a writer, there’s something incredibly romantic about composing a work of art on a typewriter. Just ask Woody Allen, who, for the last half century, hasn’t written a word on anything but the same trusty Olympia portable.

So authors and screenwriters must be gushing over the invention of antique typewriter collector Jack Zylkin, called the USB Typewriter. This “groundbreaking advancement in the field of obsolescence” is the perfect marriage of old school aesthetics and modern functionality.

The typewriter plugs into the USB port on desktop and laptop Macs and PCs (and tablets) and serves as the device’s keyboard. This allows users to experience the satisfying clickety-clack staccato of typewriter keys without the need for Wite-Out or correction tape.

Instagram

The app tribute to the Kodak Instamatic and Polaroid cameras that puts our pics through retro filters before allowing us to share them online, has recently been snapped up by Facebook. At the hefty sum of $1 billion, Instagram and its dozen or so employees is the single biggest acquisition of any app.

“7 Gadgets Retrofitted for the Future” was provided by Minyanville.com. 

Fees are an unfortunate reality of being a 21st century consumer. But most extras and surcharges are prominently disclosed, giving you the opportunity to avoid them.

Unless they’re hidden, of course. Some businesses depend not just on fees, but on concealed fees, to turn a profit. That’s unethical — and it should be illegal — but it is actually rewarded by shareholders and laissez-faire regulators.

So it’s up to watchdogs like me to warn you. Here’s where I get the most complaints about hidden fees and what you can do when you uncover them. I refer to it as the ABCs: airlines, banks and credit cards.

Airlines.

America’s airline industry used to offer you a straight-up proposition: you buy a ticket and in exchange, you get a comfortable seat, a meal, and the ability to check at least one bag. But in order to ensure their continued profitability, air carriers quietly removed each of those items from the ticket. No more guaranteed seat assignment, meal, or checked suitcase. That “service” costs extra on many airlines.

Oh, and those fees were (at least until the government stepped in) barely disclosed, resulting in billions of dollars of revenue every year. Many fees are still hidden.

Tip: Certain domestic carriers like JetBlue and Southwest do not charge many of these fees.

Banks.

When it comes to hidden fees, the banking sector is one of the most aggressive industries. With new surcharges that ding you for keeping a low balance and even for depositing large coins (no joke) its creativity knows no bounds.

A recent survey by Javelin Strategy and Research suggested that 11 percent of customers who switched banks were upset about the preponderance of these fees, which are often so poorly disclosed that customers don’t know about them until they’re on their monthly statement.

Banks depend on these little charges to pad their earnings and they walk a fine line between offending customers and earning revenue. Some do better than others. As a general rule, credit unions offer the least fees and the most service.

Credit cards.

If you have any doubt that credit cards are some of the biggest offenders when it comes to hidden fees, just read your credit card agreement. If you can find it. The agreement is constantly changing and although the company issuing the card is required by law to notify you of any new terms, its disclosure is terrible.

The fine print is rendered in 7-point type, which no human is capable of reading. Credit card fees are amazingly creative. Perhaps the worst one I come across with any regularity is the foreign transaction fee, which applies to any transaction with an international company, even if it takes place in the United States and is in dollars – no currency exchange is required.

No one finds out about this fee until it’s too late, typically. Although, some credit cards, such as Capitol One, don’t charge this kind of fee.

To be sure, the ABCs of hidden fees are just a small segment of the surcharge universe. But it is the most visible part and unless smart consumers know how to deal with these businesses – and discourage the practice of shrouding surcharges in fine print or deep within their websites by staying away from the worst offenders – others are sure to follow.

Christopher Elliott is a consumer advocate who blogs about getting better customer service at On Your Side. Connect with him on Twitter and Facebook or send him your questions by email.

 

When it comes to financial wisdom, few people merit as much attention as Warren Buffett. The man renowned as the “Sage of Omaha” built a billion-dollar empire from scratch, all the while maintaining modest spending habits that are the envy of every frugal people everywhere. Liz Claman of the Fox Business Network spoke with Buffett recently, andd shares some of his wisdom with MintLife:

1. When you’re looking to buy a stock, never EVER overpay for it no matter how much you want it. Look at the price-to-earnings ratio, how solid the management is, how much cash the company brings in from its operations and then make sure the price isn’t elevated beyond what’s reasonable. This takes discipline, but you’ll find that Buffett is the most disciplined investor on the planet. He sticks to his rules and never strays. And one of his favorite rules is, “Buy good stuff at cheap prices!”

2. Look for the ugly ducklings that you know will eventually turn into beautiful stock swans. He once said to me, “Liz, you never want to buy the quarterback who just won the Superbowl. He’s too expensive. You want to buy the guy in the hospital bed with his leg in a sling because you know he’s cheaper, and the odds are, he’ll get better and blossom.”

3. Be fearful when others are greedy, and greedy when others are fearful.  It’s his way of saying, “Do not follow the herd. Be the contrarian. It’ll serve you well.”  When the herd was running toward dot-com stocks in 1999 and paying ridiculous prices for companies that showed no profit, he remained disciplined (see #1) and stayed away. That way when the herd shifted direction, he didn’t get trampled.  It works in the reverse as well.  When everyone was running away from stocks during the financial crisis, he was elbow deep, buying up the names he’d wanted for so long but were too expensive.  Suddenly they were ‘on sale’ and he had lots of dry powder to dive in.  

4. Learn how to communicate.  It shocks a lot of people to know that Buffett was incredibly shy and lacked all confidence even through his twenties.  He finally forced himself to take the Dale Carnegie course, “How to Win Friends and Influence People”, because he realized the only way he’d be truly successful in life— even with his natural ability to allocate financial assets— was if he could communicate to potential investors.  It took him quite some time to get up the courage to finally enroll in the course but it’s the only document he has framed and up on the wall in his inner office. Not his diplomas, not any awards, just the “Warren Buffett successfully completed Dale Carnegie’s course.”  There’s something very poignant to me about that.

Liz Claman is an anchor at the Fox Business Network.

My virtual mailbag has been pretty full lately with a variety of questions relating to how much to spend to look good. There’s no easy answer, since every budget is different and everyone’s perceptions vary.

So what might cost a lot to me might be a steal to you- and vice versa. There are some basic truisms though- if it’s important to you, if it makes you feel great, if you pine for it days after leaving it in the store- it’s probably worth spending on.

The following two questions are actually composites of about a dozen questions asking the same thing in different ways.

No Neon, Please

Dear MintStyle: I prefer saving to spending, but would also like to invest in a few key pieces of clothing to spruce up my wardrobe. Can you tell me what’s going to always be a classic, what’s worth investing in, and what I can skip? I don’t want to groan when I spot these pieces in my closet in a few years.

Signed, No Neon Please

Dear No Neon: A fashion forward friend has a treasured collection of photographs of Jacqueline Kennedy Onassis. The photos show the former first lady at various times in her life, clad in a variety of polyester draped nightmares that make her look less “Jackie O” and more “Jackie Oh No!”

In other words, even this classic fashion icon had less than perfect moments, though for her at least they were few and far between.

It’s hard to predict what will always a constant classic, though there are some guidelines worth following. Trends rarely stand the test of time. So if it’s aggressively different, showy, sparkly or exaggerated, it’s an unlikely investment piece.

Instead, try to find and then invest in the styles that suit your shape and flatter you most. Build a wardrobe around those classic shapes, styles and colors. While there are some items that are considered perennial favorites- a well cut trench coat comes to mind- it’s frequently the tailoring, cut, sizing and draping that make it worth digging out of your closet year after year.

What usually makes a classic a classic is the sense of timelessness- so a pair of ballet flats paired with black tailored trousers and a crisp white man’s shirt, might have looked as equally chic in the last mid-century as they do right now. Less classic would be the linebacker shoulder pads and fussy bowed blouses of the ‘80s.

As technology in all things from fabric to production change, so do details, accessories and even stitching change. Which means that while vintage clothing can look chic or dramatic decades later, it has to have classic style and tailoring elements to stand the test of time.

Some classic wardrobe staples include:

• A go anywhere shift dress that can be dressed up or down
• A little black dress (or a more modern color choice- deep plum, navy, burgundy, grey, or brown)
• A great jacket, coat, raincoat, cardigan, or cover up
• A pair of sling backs or peep toe pumps for special occasions
• A pencil skirt

Again, hard to recommend the ultimate classics list since so much depends on finances, lifestyle, geography, age, and taste. A good rule of thumb is: if you find yourself always on the hunt for it or tend to replace it regularly, try buying two at a time and alternating or spending slightly more the next time around to ensure you keep it for the long haul.

Full-Figured Fashionista

Dear MintStyle: I watch what I eat, am active, and try to live a healthy life but am still considerably less than svelte. I am learning to accept my own body, but have the hardest time finding affordable stylish and cute clothing that flatters me instead of making me feel unattractive. Any advice for choosing styles that suit me?

Signed, Full-Figured Fashionista

Dear Full-Figured: At the risk of repeating myself, sometimes it isn’t what’s in fashion that makes you look or feel good- it’s what flatters your shape and makes you feel great. There are those that laud First Lady Michelle Obama’s creative way of wearing belts- high on the waist to flatter her most narrow parts. There are other fashion critics who wonder why she insists on wearing a belt at all, instead of choosing accessories and styles that better suit her overall shape.

There’s no one right body type or we’d all have it. Along the same vein, there’s no one cute look or stylish look or way to wear what’s in. The best approach is to find the styles that flatter you most and/or conceal your less lovely bits and then stock up on them as they’re available.

It’s worth a splurge if it makes you look and feel great. And when weeding through your closet if something makes you feel less than lovely, it’s time to recycle, repurpose or donate it.

Life is too short to wear clothing that makes you feel anything but fabulous. What’s in style isn’t always what’s right for you no matter which designer declares it the must have item.

Rachel Weingarten is a style expert, marketing strategist & personal branding consultant for CEOs, politicians and celebrities and the creator of MintStyle. She is the award-winning author of Career and Corporate Cool and Hello Gorgeous! Beauty Products in America ‘40s-‘60s. Rachel writes for top media outlets including CNN, Fortune, Forbes Life, MSN, USA Today, Yahoo Finance and many others. She is a regularly featured expert on TV shows including Good Morning America and The Today Show. Visit her online at http://racheletc.com or on Twitter @rachelcw Write to her with your burning style questions at mintstylerachel@gmail.com.

 

 

 

 

 

 

When traditional methods used to stimulate the economy don’t work, what do governments do?

Quantitive easing, defined as “a government monetary policy occasionally used to increase the money supply by buying government securities or other securities from the market,” is often used to increase the money supply and promote lending and liquidity. Fan or foe, it’s an unconventional monetary policy used during deep recessions.

Click on “launch infographic” to explore the what, when, how, and why behind this controversial technique.

It’s hard not to want to go all-out for Mother’s Day. After all, doesn’t Mom deserve the best?

More than half of consumers plan to take their mothers out for a special meal for Mother’s Day, reports the National Retail Federation. The average tab: $51.18. That’s about a third of the entire amount most consumers plan to spend in celebration. But consumers on a budget might want to consider making a special brunch or breakfast in bed.

It’s easy to come up with recipes that cost just a few dollars, feed the whole family and are simple enough to prepare without Mom’s kitchen supervision. That leaves you with more cash for a nice card, flowers or some other token.

Try these six cheap recipes from chefs, bloggers and other experts that fit the bill. And don’t forget to do the dishes! 

Ham and Cheese Breakfast Bake

Pamela Braun of MyMansBelly.com has come up what she says is the perfect Mother’s Day recipe. “For starters, it tastes really good,” she says of the ham and cheese bake. It’s also simple enough that the kids can help, versatile enough to allow flexibility with the ingredients, and leftovers even work for dinner. “Just serve it with a salad,” she says.

Peanut Butter-Banana Pancakes

“Don’t forget the honey butter — it really makes this recipe sing,” says Lee Zalben, founder and president of Peanut Butter & Co. Make it beforehand by combining two tablespoons honey and a half-stick of butter in a bowl. Mix well and refrigerate until ready to serve.

In a large bowl, sift together one and a quarter-cups flour, two teaspoons baking powder, and a half-teaspoon salt. In a blender, combine one and a half-cups milk, one large egg, one tablespoon sugar, a quarter-cup peanut butter, and one ripe, chopped banana. Pulse until smooth.

Add the mixture to the dry ingredients and use a fork to mix just until the dry ingredients are well moistened. Heat a large griddle over medium heat and add one to two teaspoons of butter.

When the butter has melted, ladle the batter onto the griddle, using about ¼ cup batter for each pancake. Cook until golden brown on both sides, about two to three minutes per side. Continue to add more butter in between each round of batter. Serve hot pancakes with the honey butter.

Maria’s Strapatsada

Maria Zoitas, creator of the “Maria’s Homemade” line at New York’s Westside Market, suggests this savory take. “It’s inexpensive, easy to make, and won’t be messy when mom is enjoying her breakfast-in-bed,” she says.

Peel five Idaho potatoes and cut them into small wedges. Fry the wedges in a half-cup olive oil until golden brown. Mix in a half-pound cubed Feta cheese and cook on medium heat until melted. Add three eggs and cook until the eggs are scrambled.

Bananas Foster Waffles

Appliance maker Krups sent over this breakfast recipe. To make: Preheat a waffle iron. Beat two eggs in large bowl with a hand beater until fluffy. Beat in two cups flour, one and three-quarters cups milk, a half-cup vegetable oil, one tablespoon brown sugar, four teaspoons baking powder, a quarter-teaspoon salt, and a half-teaspoon vanilla, mix just until smooth.

Spray the preheated waffle iron with non-stick cooking spray. Pour the mix onto the hot waffle iron and cook until golden brown.

Meanwhile, in a large skillet, combine a half-cup dark corn syrup, a half-cup light brown sugar, a cup maple syrup, and a cup of coarsely chopped pecans. Bring to a boil over medium-high heat. Reduce heat and simmer for 2 minutes. Add six sliced ripe bananas and a teaspoon of rum extract.

Coat the fruit with the syrup mixture and simmer for one minute. Spoon over waffles. Serve immediately.
 

Spring Vegetable Frittata

“Frittatas are the perfect brunch dish; they can be served warm from the oven or at room temperature,” says home cook Corey Nascenzi, who has created recipes for several PBS kids’ shows.

To make a spring vegetable frittata, preheat the oven to 325 degrees. Chop or rip stale bread into bite-sized chunks, until you have enough to fill a half-cup. Place in bowl. Pour a half-cup milk over bread and set to soak.

Meanwhile, shred two medium zucchini. In an oven-safe skillet, sauté the zucchini with a tablespoon olive oil for five to six minutes, stirring frequently. Crack and beat eight eggs in a large bowl. Add three-quarter cup ricotta, the bread mixture, a teaspoon fresh thyme, and salt and pepper to taste.

Pour the egg mixture over the sautéed zucchini. Cook on the stovetop until the bottom sets and then bake for 25 minutes.

Nutella French-Toast Bake

“This is one of my favorite recipes,” says Charlene Corn of  CharsKitchen.blogspot.com. “It’s delicious and pretty easy.” She suggests letting the kids prepare the sandwiches or dunk them into the custard.

To prepare, whisk together six eggs, two cups milk or cream, and a teaspoon vanilla extract until somewhat frothy and set aside. Butter a 9×13 inch baking dish. Pour a half-cup maple syrup on bottom.

Smear five slices of sandwich bread generously with Nutella and top with another slice each to make five sandwiches. (Mix Nutella with cream cheese, if desired.) Cut each diagonally into quarters. Soak each quarter in custard for one to two minutes, flipping to coat evenly.

Transfer to the prepared baking dish. Pour the rest of the custard over the top and dot the top with butter. Refrigerate overnight. Bake at 365 for 35 to 40 minutes.

Frugal Foodie is a journalist based in New York City who spends her days writing about personal finance and obsessing about what she’ll have for dinner. Chat with her on Twitter through @MintFoodie.

“Keep it simple, stupid.” It’s familiar—and good!—advice, whether you’re designing a rocket or just fixing dinner. But when it comes to money, we often try to outsmart the system. Our most basic mistake: signing up for endless discount emails, “points” programs, and frequent-buying plans.

The psychology of a “sale.”

Research shows that when we think we’re getting a good deal, we’re actually likely to spend more than we intended to, so that “sale” turns into an unexpected expense. One new survey found that 66% of shoppers who bought items that weren’t on their list were driven by a sale or promotion. Another study found that shoppers at outlet malls spend 79% more per visit than people at regular malls. Some deal!

Racking up points or debt?

I’m not immune to that tendency, even though I should know better. Recently, my daughter won an award at school and needed an appropriate dress to wear on the big occasion. Shopping is not one of my talents, but we headed out to a nearby department store, an hour before closing time. We made some good selections, including a dress she could wear for years to come. But the experience at the cash register—I should say “check-out counter” since no one uses cash anymore!—stopped me cold.

“Would you like to sign up for our no-fee, no-obligation points club?” the saleswoman purred. “Just fill out this form, and you’ll get points toward spending.” It did sound appealing. I had to quickly remind myself it was just one more way to spend on stuff I didn’t need. And those deals are never as good as they seem. They’re always accompanied by ridiculous fine print: “After 50 million points you get a $5 gift certificate that you can use only to buy men’s cologne.” Or whatever.

Thanks, but no thanks.

That moment of temptation got me thinking. I hate the punch-card from my local coffee shop because every time I get coffee and forget the card, I feel guilty. I hate frequent flier miles because most of the time when you want to fly, you can’t fully redeem them—and I’ve never been able to figure out how to use the extra mileage to upgrade to business class.

And leave me alone about the 10% discount I’d get if I signed up for the store credit card. I don’t want another card! I’ll just forget about it about it and it will end up hurting my credit report. Or worse, I’ll use it, forget to pay the bill one time, and watch my credit score plummet. (Yes, a single late payment can do that kind of damage!) Then I’ll end up being charged a much higher interest rate on any other loan I need.

So I say “no thanks” to the pharmacy binge-buying club, the department store discount card, and the buy-100-get-1-free coffee card. I hardly can get my child to swim practice on time, remember to buy a birthday present for the next kiddie party, and make sure my daughter has sneakers for gym class. I’ve hit mileage malaise, frequent flier fatigue, and plan ol’ discount overload. I’m going to keep it simple, stupid. At least until the next big sale!

Tips for keeping shopping simple and smart.

Want to give it a whirl? Here are my tips for keeping it simple:

• Skip those deal-of-the-day discount emails. Groupon and other sites like it only tempt you to buy stuff you don’t need.

• Have just two credit cards. It’s easy to sign up for appealing new cards (miles! discounts!), but you simply don’t need any more than two. If you’re shopping for a new card, do so purposefully; you can compare low-interest rate credit cards and balance transfers at Mint.com.

• Resist store cards. Even if the discounts are tempting, department store credit cards often carry interest rates of 25% or more, according to Consumer Reports—much higher than the average 17% rate (and you can often find one that’s even lower).

• Make a list and stick with it. The surest way to avoid being sucked in by sales? Figure out exactly what you need before you leave the house. Half off a $20 tank-top you don’t need is still $10 gone from your wallet.

What are your tricks for keeping it simple?

© 2012 Beth Kobliner, All Rights Reserved

Beth Kobliner is a personal finance commentator and journalist, the author of the New York Times bestseller “Get a Financial Life: Personal Finance in Your Twenties and Thirties,” and a member of the President’s Advisory Council on Financial Capability. Visit her at bethkobliner.com, follow her on Twitter, and like her on Facebook.

 

According to the National Retail Federation consumer spending survey conducted by BIGinsight, the average person celebrating Mother’s Day is expected to spend about $152 on it this year. Before you book a mom’s day brunch or send flowers (again), make this the year you get creative and explore these memorable—yet affordable—gift options that mom is sure to love.

For the Spa Mom

Instead of sending mom for the predictable pedicure, give her indulgence at home and show your appreciation for her in thoughtful details. Start with a “mom relaxation basket,” stocked with a bottle of her favorite bubbly or wine. (For deals on quality wines with minor label mishaps, check out “The Accidental Wine Company.”

Select a mix of fragranced bath products from Joyful Bath Co, which offers 100% natural, handmade bath bars and salts starting at just $5, and a free printable “bath mixology guide” that mom can use to custom-design her own aromatic bath.

Make mom a bath soundtrack with a relaxation playlist you create with her favorite tunes she can listen to while taking a soak. Stack current issues of her favorite magazines and a couple of juicy novels she’s been dying to read and top off her experience with personalized bath towel or bath robe. Towels4U on Etsy has custom options starting at $16.99!

For the Foodie Mom

With BakeSpace.com’s Cookbook Café free app available on iTunes, you can make a personalized cookbook for mom with her favorite recipes, as well as some new options. To get the whole family involved in the creation, simply add the “family cookbook link” to Facebook.

If mom would appreciate some pointers from a professional, Cloud 9 Living offers a variety of food tours, cooking classes, and wine and beer experiences in 43 different regions, starting at just $55.

For the gift that gives all season, buy her her a share in a local community supported agriculture group, which will provide an assortment of in-season, locally grown produce each month. Check out LocalHarvest.org for local produce, as well as high-quality olive oils, nuts, dried fruits, herbs and other goodies from producers in other areas of the country not found at her local market.

For the Empty Nester Mom

If you’ve recently left for college, moved into your own place, or started a family of your own, mom may feel like her house is in need of some new energy. Through Remote Stylist, you can give her access to a home designer who will guide her through the entire process via phone, email or Skype.

Using the “Style File,” mom will answer a series of questions about the look she’s trying to achieve, importance on budget, speed, volume of ideas, and personal design preferences. With the help of her assigned stylist, she can redesign the space and choose from a selection of below retail furniture for home delivery.

Though you may want to join forces with other family members to cover furniture costs, it’s a great way to alleviate her from remodel burdens and support her during a time of transition.

For the Fit Mom

Whether you’re a son or daughter, Mother’s Day is prime time to get moving with mom, especially if she’s passionate about wellness. If she loves to dance, look into classes like “Zumba” or “Barre.” If she’s interested in the mind-body connection, attend a yoga class together (look for classes described as “hatha,” “yin” or “restorative,” if you’re both beginners).

Though the trip to a fitness studio will run you about $30 for an hour-long class, it’s a conduit to creating a shared and memorable experience with your mother. If she’s an athlete at heart, register as a team for a local event in the area and vow to train and complete it together. For a list of event ideas, check out Active.com

For the Mom Who Has Everything

Self-described as the “world’s largest marketplace for small services, starting at $5,” the creative possibilities on Fiverr are endless, unique—and cheap! For just $5 (paid via Paypal), you can have a family picture transformed into a portrait, order a personalized song written and performed (by video) just for her, or give her a comic-book style caricature complete with her favorite “motto.”

For the Mom You’d Like to Reconnect With

Sometimes life gets in the way and kids lose their ability to bond with mom like they did in days past. If you’re craving an opportunity to reconnect with your mother this year, “Between Me And You” journals ($14.95) offer thought-provoking, light-hearted, and sometimes humorous questions that recapture memories between kids, parents, and other family members.

In addition to being great conversation starters and a way to express emotions that can’t always be verbalized, mom will have a handwritten keepsake that she can cherish.

Stephanie Taylor Christensen is a former financial services marketer based in Columbus, OH. The founder of Wellness On Less, she also writes on small business, consumer interest, wellness, career and personal finance topics.