July 31, 2007

The Three Best 529 Plans

Last week I asked for opinions on the best 529 plans. In short, we’re looking for a plan, and we’re not enamored with our in-state option. As it turns out, I was mistaken when I said that we exceed the income limits for deducting contributions from our state taxes. Upon further investigation, it seems that they’ve changed the law, and they do allow for a deduction regardless of income, but you can only deduct $2000 in contributions per year on a single tax return.

In short, this means that my wife and I would be limited to a combined annual deduction of $2000 even if we set up separate plans for all four boys. On top of thiswe’re not crazy about the investment options, and we’re also planning on saving a lot more than $2k/year. Sure, we could do $2k in state to get the deduction and then focus our efforts elsewhere, but I’m not sure that it’s worth the trouble of keeping track of yet another account. Thus, we’re looking for an out-of-state plan to hold most, if not all, of our contributions. [more]

July 30, 2007

Social Networking and Identity Theft

Guess what? Social networking sites increase your risk of identity theft, or so says Neil Munroe of Equifax. According to Munroe:

“The problem is that people don’t realize the significance of the kind of information they are putting out on the Web and who may be accessing it. More and more consumers are signing up to these sites every day and chances are they’ll put on their date of birth, location, e-mail, job and marital status.”

He went on to say that:

“Nearly all of us can search for a name of an old friend and find all their personal details online without them even knowing. Unfortunately, the fact is that not everybody is searching for a friend.”

Equifax is thus advising consumers to limit the amount of information they make available online, especially when it comes to things commonly used for identity verification, such as birth date, mother’s maiden name (who would ever put this online?), names of kids and pets, etc. They are also advising people to make their profiles private, such that only close friends can view the information.

I guess anonymity has it’s privileges, doesn’t it?

[Source: Reuters UK]

July 29, 2007

The Best of June 2007

I’m a bit behind here, but June was another great month at FiveCentNickel, thanks in large part to contributions from readers such as yourself, as well as those of the guest bloggers that wrote articles in my stead. I just wanted to take a moment to thank those of you who stop by and comment. If you like what you see here, keep in mind that you can have the full-text of everything that I write delivered to you via RSS or e-mail (details). Here are my favorite posts from the month of June:

» Cash Out Roth IRA to Pay Off House?
» Why Avoid the 0% Balance Transfer Game?
» Avoiding the Gift Tax via Direct Tuition or Medical Payments
» Eco-Friendly Energy Savings
» Q&A: Earnest Money
» Google Currency Converter, Revisited
» How Movie Theaters Make Money
» My First Experience With the New Bank of America ATMs
» State and Federal Income Tax Arbitrage
» How to Link Additional Accounts to Emigrant Direct
» Send Money Via PayPal Using Your Cell Phone
» Ten Tips for a Successful Moving Sale
» Going Too Far in the Name of Saving Money
» $250 from American Express Gold Rewards Card
» The U-Turn: How My Debt Reduction Journey Began (written by NCN)
» Five Reasons you Should Care About your Credit (FICO) Score
» The Limits of Frugality (written by Lazy Man)

And here are our favorites from Raising4Boys (subscribe):

» Update: An Insolent Child
» A Single Letter Can Mean So Much…
» Gameboy Games and Washing Machines
» A Private Matter (Beware: Bathroom Humor Ahead)
» Nervous Tics in a Nine Year Old Boy
» Circumcision Becoming Less Common in the United States
» Are School Events Scheduled for Non-Working Parents? (written by They Call Me Mommy)
» How to Stop (or Soothe) Sibling Rivalry Before You Go Insane (written by Kathy)
» Is Adoption for You? Costs, Choices and Decisions (written by Clever Dude)
» Raising Boys vs. Girls? A Systematic Approach to Deciding the Easiest (written by J2R)

July 28, 2007

From the Archives (July 22nd - July 28th)

Here are some of my favorite FiveCentNickel (subscribe) posts from a year ago this week:

» Earn Interest on Your PayPal Balance
» Reducing Our Electrical Usage, Update #2
» Emigrant Direct’s Online Incompetence
» $100 for a Last Will and Trust?
» Refrigerators, Usable Space, and the Art of Overstatement

And here’s what was going on two years ago:

» Yes, Virginia, There is a Two Dollar Bill
» Appeal Your Health Insurance Denials

Finally, this is what was happening over at Raising4Boys (subscribe) last year:

» Cool Summer Activities
» Fun With Dry Ice
» Dinnertime Conversation

July 27, 2007

Weekly Roundup - You Can’t Go Home Again Edition

This weekend we’re heading back to our old stomping grounds to visit the friends and former neighbors that we left behind when we moved last year. It’ll be strange to spend a weekend in our old neighborhood, and even more strange to see other people living in our old house. While we’re doing that, you should be reading these fine pieces of personal finance penmanship… [more]

Amazon Harry Potter Promo Code Arrived

Just a quick note to let you know that we received our $5 promo code for pre-ordering Harry Potter and the Deathly Hallows. Details on how to use the code can be found here.

Here’s the message:

Dear Amazon.com Customer

Because you pre-ordered an eligible edition of “Harry Potter and the Deathly Hallows,” here is your $5 promotional certificate from Amazon.com. The certificate is good during the month of August toward the purchase of $20 or more of merchandise sold by Amazon.com. See complete details, including how to apply your promotional code during checkout.

Here is your promotional code:

XXXX-XXXXXX-XXXXXX

Thanks again for helping us make “Harry Potter and the Deathly Hallows” the biggest pre-order event in the history of Amazon.com!

If you’re expecting a promo code and haven’t received it yet, you might want to check your spam folder.

July 26, 2007

J.K. Rowling, Harry Potter, and Consumer Domination

Check this out… J.K. Rowling owns 8 of the top 14 spots in this week’s best-seller list with her seven Harry Potter titles, including Deathly Hallows and the $65 Deathly Hallows “deluxe” edition in slots #1 and #3, respectivey. Here’s how it breaks down:

1. Harry Potter and the Deathly Hallows
2. Harry Potter and the Half-Blood Prince
3. Harry Potter and the Deathly Hallows, Deluxe Edition
4. Harry Potter and the Sorcerer’s Stone
6. Harry Potter and the Order of the Phoenix
9. Harry Potter and the Chamber of Secrets
13. Harry Potter and the Prisoner of Azkaban
14. Harry Potter and the Goblet of Fire

Guesstimating an average price of $20 per copy (list price was $34.99, but it was available from many merchants for substantially less) the 8.3 million copies of Deathly Hallows that sold in the first 24 hours translates into $166 million in sales. In one day. Amazing.

So… Did you buy yourself a copy? We did. We pre-ordered from Amazon and had it delivered to our door on release day. In the days since, my wife and I have spent the evening curled up on the couch with kids taking turns reading chapters aloud.

July 25, 2007

GM Touts Reduced Fuel Consumption

General Motors recently announced that they expect a 40% mileage boost for city driving for the hybrid versions of their big SUVs. Sounds great, but guess what? This would bring their city mpg estimates of the Chevy Tahoe and GMC Yukon up to just 19 or 20 miles per gallon (these same vehicles will get a projected 20-21 mpg in highway driving).

While other brands are boasting 50-80% gains for their largest SUVs, GM doesn’t want to sacrifice towing capacity or off-road performance. Thus, they’re using a conventional four wheel drive system with low-range gears that will give soccer moms across the country the ability to tow up to 6200 pounds as well as the freedom to drive in mud or sand.

The downside for GM is that they’re projecting a lost on the sale of each hybrid, with the hybrid hardware adding $10,000 to the cost of each vehicle produced. While they’ll almost certainly add some of that back to the sticker price, they won’t be able to tack it all on and still sell vehicles. If these new hybrids catch on, however, GM will be able to push down the component costs and (hopefully) turn a profit.

My take: While I’m a huge fan of energy conservation, I hardly think that hybrid mega-SUVs are the way to do it. It’s better than nothing, but simply buying a smaller car would do way more to reduce your fuel consumption. Yes, I realize that there are circumstances in which such vehicles are necessary, but the vast majority of people don’t really need a monstrous vehicle. Okay, I’ll get of my soapbox now.

[Source: USA Today]

July 24, 2007

The Very Best 529 Plans?

We’re in the market for the “best” 529 plan available. I’ll preface this by saying that I’m partial to Vanguard, and primarily looking at fees and investment options — I prefer making my own investment decisions on something like this as opposed to going with an age-based option. I’m also interested in identifying plans with high maximum contribution limits. I should also note that our state does have a plan with state tax benefits, but we exceed the income limits for deducting even a small portion of our contributions. Beyond that, the plan isn’t all that good, so I’m looking elsewhere. [more]

How do you Keep Track of your Finances?

A week ago, I dug into our Quicken archives and charted the growth of our net worth over the past ten years. It was a pretty enightening exercise, and it was made possible by that fact that I’ve meticulously tracked our finances in Quicken since the beginning of 1997. Doing this got me to wondering about how others track their finances, which brings me to a question…

Do you keep track your finances in detail? If so, how do you do it? A dedicated software package such as Quicken, MS Money, or MoneyDance? An online service of some sort? Maybe a spreadsheet? Or perhaps you use (gasp!) paper and pencil?