Archive - July 2012

1
Housing Has Not Bottomed. Three Things You Must Know.
2
Tips For Summer Jobs From The IRS
3
New Updates On Social Security
4
Pricing Luxury: What Should You Spend On A Hobby?
5
Nonworking Spouses Hurt By Credit Card Rule

Housing Has Not Bottomed. Three Things You Must Know.

David Wessel of Wall Street Journal wrote that housing had bottomed. He is wrong. The housing bulls base their claims on past high water mark metrics which are irrelevant because fundamental structural changes occurred to corrupt the value of those metrics.

During 1984-2009 borrowers used “Easy Qualifier” loans to qualify if they could not otherwise qualify for a loan. Those loans have been outlawed so much of the past data of consumer behavior is not relevant. This means that historical ratios like rent to price or rent to income have fundamentally changed and can’t be used to compare with the …

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Tips For Summer Jobs From The IRS

With summer in full swing, many young folks are working in temporary jobs for the summer.  There are a few things that you need to know about these temporary jobs that the IRS (and I!) would like you to know.  Recently the IRS produced their Summertime Tax Tip 2012-13, which provides important information for students working in summer jobs.  I have added an extra couple of tips after the original IRS text that may be useful to you as well.

The original text of the Tip is below:

A Lesson from the IRS for Students Starting a Summer Job

School’s …

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New Updates On Social Security

You should be aware of two recent developments for social security – one affecting workers and one retirees.

For retirees

On March 1, 2013, the U.S. Treasury Department will stop mailing paper benefit checks. After that date, all Social Security beneficiaries (as well as anyone receiving another type of federal benefit, such as Supplemental Security Income benefits, Railroad Board annuity payments, federal retirement benefits, or veterans benefits) will be required to receive their benefits electronically. The federal government estimates that switching to electronic payments will save taxpayers $1 billion over 10 years, and cut down on the risk of lost …

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Pricing Luxury: What Should You Spend On A Hobby?

How much should you pay for something that is purely a “want”, not a need? There are formulas for what house you can afford, how much of your budget should go to utilities, etc. but what if it’s something you just plain want?

Recently my sewing machine went kaput. Seventeen years ago it was top of the line, and since I’ve been sewing since I was 10, I figured I’d replace it with whatever was currently tops—I’ve earned it, no? When I was in my chocolate-chip-cookies-Mommy phase, I made all of dear daughter’s clothing for about her first five years

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Nonworking Spouses Hurt By Credit Card Rule

A long-standing advantage for couples that choose marriage is the combining of their assets, along with the financial history. For nonworking spouses, the ability to claim their combined financial account history was a benefit to their own personal credit history. The biggest perk associated with sharing the history of their credit accounts was, that lenders did not need to consider who earned the money when reviewing a credit application, the household income was enough. A stay-at-home spouse could open a credit card account in their own name without involving their mate, allowing for a degree of financial independence.

However, the …

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