October 31, 2007
It’s that time of year again… Time for benefits open enrollment…
I was just looking through our options, and it appears that we’ll be sitting tight with our current options this year. The biggest change is that we’ll be paying 14.5% more for health insurance this year (and so will my employer). The good news is that our dental coverage will cost the same, and my group life insurance is going down slightly.
Also note that employee retirement contribution limits are staying the same this year, so there won’t be any big changes in that area.
The only thing that we actually have to do is to set up our flexible spending account (which has to be done every year). In 2007, we set aside $1,200 and have essentially maxed that out. In truth, we’re well beyond this amount, but I’ve been lazy about submitting receipts. I haven’t yet decided how much to set aside for 2008. Since we’re not expecting any overly-large expenditures in terms of health care (no more braces until at least 2009), I’ll probably opt for the same amount this year.
October 29, 2007
A reader named Tom recently wrote in with the following question:
I have been looking online for 2008 403(b) contribution limits and can’t find the info. Can you tell me what the 2008 403(b) contribution limits are? Or where I can find them?
After a bit of digging, I was able to find the answer… Unfortunately, according to a recent press release from the IRS, the limit on elective deferrals will remain unchanged for 2008 at $15,500/year. This applies to things like 401(k), 403(b) and 457(b) plans.
The good news is that aggregate limit (employer + employee contributions), which is specific by Section 415(c)(1)(A) of the Internal Revenue Code, is increasing from $45,000/year to $46,000/year (this is the so-called 415(c) limit). So there’s a bit of extra breathing room for retirement contributions, but only if your combined employee/employer contributions are bumping up against the limit.
October 28, 2007
I noted the other day that we’ve hit a bump in the road with our home renovation — our windows arrived, but they were the wrong ones. They all had the wrong glass, which can easily be swapped out later, but some of them were also the wrong size. This means that they can’t close in the exterior, which means that they can’t tear into the walls to make the connection from the existing part of the house to the addition.
Unfortunately, we heard from our contractor last night that the right windows won’t be delivered until Wednesday. The good news is that he’s just going to install the windows that are the right size, and then nail up plywood over the opening for the windows that we’re waiting on. So… They’ll be able to forge ahead tomorrow and hopefully get things back on track. They’ll swap the glass and also pull the plywood and install the remaining windows when the right stuff comes in.
And now… Here are some of the articles that caught my eye over the past week. [more]
October 26, 2007
This past week didn’t see much progress on our home renovation. Both the addition and workshop are roofed, sheathed, wrapped, and partially sided. Our new deck is also in (and it’s fantastic), but… Not much has happened over the past week or so because the new windows were delayed. The good news is that the windows showed up just after lunch today, and the contractor will have his guys out here tomorrow (Saturday) to get things rolling again.
The other bit of news is that the county property tax assessor stopped by. We’re nowhere near done, but he was able to take measurements, which is basically all he needs to do his job. As it turns out, our county just hired a couple of new assessors whose sole job is to canvas the county looking for unpermitted work — i.e., garages, workshops, etc. that were built with pulling a permit, such that they’re not on the tax rolls.
Fortunately, we’ve already received our property tax statement for this year, so we won’t be on the hook for the additional taxes until next year.
Edit: Ugh. The windows that showed up weren’t the right ones. Looks like it’s more hurry up and wait for us…
October 25, 2007
We’ve recently been totally slammed schedule-wise… We’re coaching three soccer teams (fortunately only three of our four boys are playing age), my workload has ratcheted up about ten notches, we’ve had sick kids, which means doctor’s appointments, a backlog of homework, etc. Oh, and we’re in the midst of a relatively major home renovation.
All of this, combined with a recent comment from a reader named Floyd, got me to thinking about the relationship between free time and spending vs. saving money. In response to a post on debt reduction strategies, Floyd stated that:
“When you’re busy, you save money.”
Really? Let’s think about that for a minute… If you’re wildly overscheduled, you might not have time to incur entertainment expenses, engage in frivolous shopping, etc. But… Perhaps you’re more likely to rely on costly convenience items to get you through the day, wind up paying late fees for things you forgot to return (or pay) on time, etc.
So, dear readers, which is it? Does a hyper-busy life save money? Or do you actually end up spending more when you’re busy than when you have time on your hands? While the answer will probably depend on why you are busy (maybe you’re out there making more money?) and how truly busy you are, I’d still love to hear your thoughts.
October 24, 2007
I just ran across this little tidbit and thought I’d share it with you:
“If you want to feel rich, just count the things you have that money can’t buy.”
October 23, 2007
Here’s one more reason to take care of you almighty credit score, courtesy of a reader named ‘kitty‘, who left the following comment* on my recent post about avoiding utility deposits with good credit:
When you open an online savings account they check your credit score. If they don’t like it or cannot find it, they can deny you one. FNBO Direct refused my friend’s request to open an account because they couldn’t match her name to her credit score. She had just married and changed her name… But instead of asking her, they just told her “Your credit score is bad” (actually, it was excellent, but the name mismatch somehow got translated into bad score by their program). She had a similar problem in a brick and mortar bank when she tried to open a CD, but the bank let her show them her marriage certificate. When she called FNBO direct they didn’t care, they just said - your credit is bad.
In fact, online banks aren’t the only ones that run your credit when opening an account. Brick and mortar banks have been known to do this as well. As for why a missing credit score would be interpreted as bad… If they’re concerned enough to check, then they’ll assume the worst unless they can find evidence to the contrary (i.e., guilty until proven innocent).
See also: Five Reasons You Should Care About Your Credit (FICO) Score
*(Edited slightly for clarity/style.)
October 22, 2007
I’ve written previously about reasons you should care about your FICO credit score. While the five reasons that I listed are quite important, a commenter chimed in with one that I left out.
Having a good credit score has enabled me to avoid deposits on many accounts, mainly utilities when I’ve moved. This was particularly helpful when paying a collective $400-500 in security deposits would have been a hardship.
This is a great point, and one that is often overlooked. Whenever you move and set up utilities, you face the possibility of having to come up with a bunch of cash for utility deposits. But if you have a history of paying your bills on time, you can often get around this requirement.
October 21, 2007
