MoneyLife – Help, Hope & Insight

Money market funds acting to boost yields

Kiplinger's Personal Finance Magazine notes that with interest rates near record lows, money market funds are employing several techniques to increase yields.

With yields on short-term Treasury bills stuck near 0%,
money-market funds that hold these securities are struggling to keep
their returns positive, after fees.

Some funds are investing in longer-term securities, which extends the
average maturity of the fund and garners a little extra yield without
compromising safety.

[Some have] closed to new investors or limited deposits.... It's easier
to maintain yield without dealing with heavy cash flows in and out of
the fund.

The article also says about 60% of money-market funds are waiving a portion of their fees and that others may soon follow.

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This post is used with permission of Sound Mind Investing, America's best-selling Christian financial newsletter. SMI, published by investment advisor Austin Pryor, has been Crown's primary investing resource for nearly 20 years. More than 14,000 families rely monthly on SMI's step-by-step investment advice. Visit Sound Mind Investing to learn more.

3 Tax Tips

Did you know the U.S. tax code is over 7,000 pages long?  No wonder filling out a return is so difficult.  To help out, here are 3 tax tips that can save you money on your 2008 return, thanks to Bankrate.com.

1. The Rebate Recovery Credit.  Last year, the feds distributed millions of tax rebates that can also be used on your 2008 return by claiming this credit.  This could save up to $600 for single taxpayers, $1,200 for married couples filing jointly if you didn’t receive the rebate last year.
2. The First-time Homebuyer Credit.  Some first-time homebuyers can claim a credit of 10% of the purchase price, up to a maximum of $7,500. You may qualify if you haven’t owned a home in the three years prior to closing.
3. The Standard Property Tax Deduction.  First time homebuyers—who for whatever reason don’t itemize—can add up to $500 for single homeowners, double that for joint filers—to the standard deduction.  It’s only for your primary residence and only if you paid property taxes.

Have you filed your 2008 taxes yet?  Just be glad you're not a major corporate like General Electric.  GE's tax return runs over 24,000 pages, equal to a stack of paer over 8 feet tall!

We'd love to hear about your tax filing experience this year.  Please comment below.

After the Interview...

Getting a job interview in a down economy is tough to do, so make the most of each and every one. Here are 3 great tips from CareerBuilder.com to keep you on that hiring manager's radar screen:

1. Make notes. Go to a quiet place Immediately after the interview and write down everything you remember from the interview. If the interviewer mentioned a recent project or upcoming event, make note of it. Also record any personal information you picked up about the interviewer, likes and dislikes, etc.


2. Send thank you notes. Shoot a “same day” email thank you to the interviewer and then follow up with a handwritten note within a couple of days. Include tidbits of information that you recorded immediately after the interview.


3. Follow through on referrals. If the interviewer recommends that you look up other people or organizations—do it. This helps you expand your networking contacts and gives you something to talk about if you’re called back for a second interview.

Are you job hunting? We'd love to hear how it's going. Just click the comment link and let us know what the job market's like in your area!

Still missing some tax statements?

If you're still waiting for tax information from your broker or fund company, here's why: A new law has changed the deadline from Jan. 31 to Feb. 15, giving brokerage firms and mutual fund companies an extra 15 days to send the information to you. (Actually it's 17 days this year.)

The IRS says the change is for your benefit:

Many investors will receive their year-end tax statements later than in past years, but these forms are likely to be more accurate, according to the Internal Revenue Service.

A new law, enacted last fall, changed the deadline from Jan. 31 to Feb. 15, when [companies] must furnish year-end Forms 1099-B to their customers. Where a broker furnishes these forms by mail, this means that the forms must be mailed, not received by that date.

Because Feb. 15 falls on Sunday in 2009, and Monday, Feb. 16, is a federal holiday, the deadline is Feb. 17 this year.

In addition... for calendar-year 2008 reporting, the Feb. 17 deadline also applies to other tax information that brokers report to their customers, including such items as interest and dividends, on a combined year-end statement.

This change is designed to make it easier for brokers to provide investors with accurate year-end statements on stock sales and other transactions. Inaccurate year-end statements that have to be corrected later often force investors to file amended individual returns....

The long-standing Jan. 31 deadline for providing other year-end forms remains unchanged. However, because Jan. 31 falls on Saturday, employers, banks and other businesses have until Monday, Feb. 2 to mail or otherwise make available various 2008 year-end tax statements. This includes forms in the W-2, 1098 and 1099 series.

Bottom line: You should receive any missing statements this week or next.

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This post is used with permission of Sound Mind Investing, America's best-selling Christian financial newsletter. SMI, published by investment advisor Austin Pryor, has been Crown's primary investing resource for nearly 20 years. More than 14,000 families rely monthly on SMI's step-by-step investment advice. Visit Sound Mind Investing to learn more.

Not so fast!

We all want to cut unnecessary spending now that we're in a recession, but you need to be careful not to make cuts that will end up costing you more later.  Bankrate.com advises not to cut these from your budget:

1. Car maintenance. Don’t put off changing your oil to save 20 or 30 bucks. It’ll cost you big time "down the road" in reduced engine life. Don’t forget to rotate your tires, either, or you’ll increase tread wear and end up buying new tires sooner than necessary.
   
2. Prescription drugs. If you have a chronic condition that doesn’t produce daily symptoms, like high blood pressure, you might be tempted to put off re-filling your prescription. Don’t! You could set yourself up for huge medical expenses later on—or worse—endangering your life.
   
3. Homeowner’s insurance. With home values tanking over the last year, you can reduce coverage on your home and possessions, right?—wrong! The cost of materials needed to rebuild in case of a disaster have not fallen. Make sure you have full replacement coverage in case of a disaster.

Agree or disagree?  We'd love to hear your comments!

Who's Hiring?

Everybody's downsizing, right?  Not so, according to CNNMoney.  Here are a few companies that are adding to their payrolls, even as the recession deepens:

• T-Mobile plans to add 2,000 jobs across the country in retail and customer service.
• Safeguard Properties - This company manages foreclosed properties, unfortunately, a growth industry right now. 
• Banfield - A chain of veterinary hospitals that plans to hire 800 vets and 2,000 other office support personnel.
• Microsoft
• Google
• Walgreens
• Adecco
• Borders Books

Let us know if you find any other companies that are hiring!

Get Out There!

If you are, or know, a student who's attending college at a distant location, here are some great web sites that offer travel discounts:

• StudentUniverse.com provides deals on air fares.


• STATravel.com has discount rates on air fare, hostel accomodations and rail fares.


• CampusVisit.com caters to the rail crowd.

Just because the economy has money tight everywhere, students shouldn't have to give up visiting friends and family.  Hope this helps!

Shrinking Houses?

The near-collapse of the housing industry in the last year has had a big impact on the kinds of houses builders are putting up these days, according to SmartMoney. Most of the changes are good. Here are some interesting points:

• After a decade of the average new house increasing in size, it’s begun to go down, dropping from around 2600 square feet in 2007 to around 2400 square feet in 2008.
  
• Buyers want smaller houses. According to recent survey by the National Association of Home Builders, Americans would prefer homes around 2,350, which is still smaller than the average size home under construction.
  
• Almost 90 percent of builders surveyed said they plan to build both smaller and cheaper houses in the future. A wise move, since mortgage money will be a lot more difficult to come by in the years ahead.

Buying a house is one of the biggest and most important financial decisions you’ll ever make. You want to do it right the first time. We’ve got a lot of information to help you make a wise decision, according to God’s timeless financial principles. To find out more, click here.

Are you planning on buying a home in 2009? We'd love to hear about it and whether you're having trouble securing a mortgage with the current conditions. Please comment below!

Cutting Prescription Costs

A Kaiser Family Foundation survey shows that 27% of us save money by not filling prescriptions after visiting the doctor.  Being frugal is great, but not if it's hazardous to your health.

SmartMoney has a great article detailing ways to save money on prescription drugs.  Here are a few:

1. Check store promotions. Several of the large grocery chains offer free generic antiobiotics. Some stores offer one month supplies of common drugs for $4, or a 3-month supply for $10.


2. Buy in bulk. This is great if you take medicine for chronic conditions. Many mail order houses now sell 3-month prescriptions for what you’d pay for 2 months worth of medicine at the drug store.


3. Split pills. Ask your doctor to write the prescription for double the dosage you would normally need, then simply cut the pills in half. Most drug stores sell little gadgets that neatly chop pills right down the middle. One drawback: you can’t do this with capsules and time-release medicines. Also, if you’re on an insurance plan, check first to see if pill-splitting is allowed

Do you have any budget stretching ideas? We'd love to hear 'em!

Protect Your Job

The December jobless numbers are out and they’re not good. Preliminary estimates indicate that nearly 700,000 people lost their jobs last month.

With news like that, you want to do everything you can to hang on to your job. Here are 3 tips to help increase your chances of getting a paycheck in the rocky months ahead, from Fortune Magazine.

1. Set work goals. Establish what you want to accomplish over the next several months, and share those goals with your boss. It’s vital information he needs in case your department’s in the crosshairs for downsizing.


2. Stay positive. Don’t let anxiety affect your interactions with the boss or other employees. Talking too much about layoffs could become a self-fulfilling prophesy.


3. Get with the program.  Make sure your duties are in sync with the company’s larger goals—which usually involve making a profit. Do whatever you can to increase your company’s revenues or cut costs.

Do you have a suggestion for making your job more secure? We'd love to hear about it. Please add your comment below!