How Can I Erase Old Debts?

1.  Order a free copy of your credit report from annualcreditreport.com;

2.  DO NOT PAY FOR A COPY OF YOUR CREDIT REPORT;

3.  Review your credit report and look for contact information for collectors;

4.  Mail a letter (w/ proof of mailing) to each agency asking whether it has a record of the debt and how much you owe, and keep a copy;

5.  If the agency claims to have a debt, state that you want to verify that the debt is valid but do not discuss repayment (to do so would imply that you believe the debt is valid!);

6.  DOCUMENT EVERYTHING BY LOGGING DATES & KEEPING RECEIPTS FROM THE USPO;

7  If you hear back within 90 days and the debt is valid (ie verified), reply (ONLY BY MAIL) saying that you willing to pay 30 cents on the dollar for the original amount owed and not the amount owed after fees and penalties;

8.  Agencies will try and settle for 50 cents on the dollar

9.  REMEMBER THAT IF THE DEBT IS OLD, TEH AGENCY PROBABLY PAID JUST 10 CENTS ON TEH DOLLAR

10.  If you don't hear back within 90 days, and you have documented your correspondence, you can ask the 3 credit agencies (Equifax, Experian, and TransUnion) to remove the black marks from your report, 

Cramer: 20 Stocks for Life

Here is Jim Cramer's list of 20 great stocks with long-term potential:

1. Caterpillar (CAT)

2. Glodman Sachs (GS)

3. ConocoPhillips (COP)

4. XTO Energy (XTO)

5. Transocean (RIG)

6. Hologic (HOLX)

7. Inverness Medical Innovations (IMA)

8. CVS Caremark (CVS)

9. McDonald's (MCD)

10. Freeport-McMoRan (FCX)

11. Hewlett-Packard (HPQ)

12. Corning (GLW)

13. Google (GOOG)

14. International Game Technology (IGT)

15. Pepsi (PEP)

16. Procter & Gamble (PG)

17. New York Stock Exchange (NYX)

18. Union Pacific (UNP)

19. Boeing (BA)

20. Sears Holdings (SHLD)

Click here for a current update on how there stocks are trading. For more stock advice from the Mad Man himself, visit Thestreet.com

Jim Cramer: Six Steps to Smart Budgeting for Life

hen trying to get their finances in order, people commonly ask "How should I go about putting together a solid long-term budget?" According to Jim Cramer, there are six (6) steps to smart budgeting for life:

1. Learn from the past: Put together a comprehensive record of your past income and spending;

2. Judge your past: How much could you have saved?;

3. Create your short-term budget (ie 3 months and 6 months);

4. Create your long-term budget by incorporating your future expenses like buying a house;

5. Hold yourself accountable each month, which is the single most important thing you can do to plan for long-term wealth; and

6. If you fail, take drastic measures. For example, automate your savings or drastically cut expenses.

For more information read Jim Cramer's book "Stay Mad for Life" (Simon & Schuster 2007)

Jim Cramer: How To Stop Yourself From Becoming Poor

According to Jim Cramer, everyone must do the following three things to avoid becoming poor:

1. You absolutely must create a budget for yearly, monthly, and even daily expenses;

2. You must have health insurance; and

3. You cannot carry a balance on your credit card

For more information about Jim Cramer, visit The street.com.

Vacation For Rent By Owner

Thinking of buying a ski condo pr possibly renting one you already own?  If so, you need to consider a few BIG questions according to Christine Karpinski, author of "How to Rent Vacation Properties by Owner" (Kinney Pollack Press).

The first issue is location.  In a ski-condo market that means being on or near the slopes.  Also consider the extras (ie multiple bedrooms, hot tub, fireplace etc...).  According to Karpinski, the traveling public today wants more amenities like flat-screen TVs, hot tubs and big bathrooms.

The final big question is:  Who's going to be in charge of the rental process?  If your looking to do it through a property management service, it might be better to buy where there are managers on site with experience and history.  If you choose to do the renting yourself, you gain anywhere from 30 - 50% of what a property manager may charge.

Click here for more information (including useful links) about how to rent vacation properties from Ms. Karpinski or visit Homeaway.com.

Unexpected Wealth

The prospect of a new, expanded generation of unprepared heirs has spawned an entire industry of financial advisors and estate planners:

- Sudden Money Institute, who counsels those who stumbled abruptly into vast sums of money

- Family Wealth Alliance, which helps ultra-high-net-worth families find the right kinds of staffing;

- Relative Solutions, which helps heirs make sure their relationships don't destroy family-run businesses; and 

- Wealthbridge Partners for families whose net worths exceed $200 million

Rafting on the "Deliverance" River

Interested in whitewater rafting?  Although the Chattooga isn't the first river to have commercial rafting operations (see Green River, CO), it does have the aura of the ultimate rafting trip because of the influence of the movie "Deliverance."

Click here for more information about rafting down the Chattooga River, which starts in North Carolina and runs along the Georgia-South Carolina border.

See also the following New York Times article "Riding the Rapids on "Deliverance" River,"  which provides a background on how the 1972 Academy-award nominated film introduced millions of Americans to this stunning stretch of river. 

House-Hunting as Vacation

As the second-home market in Latin America has emerged, so has a cottage industry of tour operators eager to attract foreign buyers seeking vacation retreats and investment properties.  Part vacation, part real estate boot camp, the following agencies provide potential home buyers through the legal and financial particulars of overseas ownership:

- Tropical Pathways runs tours to Panama, Dominican Republic, Mexico and Honduras;

- International Living leads tours in Panama, Costa Rica and Nicaragua

- Simply San Miguel offers some 15 different vacation options for visitors to San Miguel de Allende in the Sierra Madres of Central Mexico, including a Real Estate Curios Tour

Topics addressed on the six-night trip - which costs $1,285 (double occupancy) with hotels, local transporatation and some meals - include health care and home insurance.  Tourgoers also meet architects and designers who can advise on how to comply with the local community's architectural guidelines.

IRAs: Do You Have to Invest in Stocks or Bonds Only?

No!  It may be surprising, but it's true: No law demands that retirement plans be invested in stocks, bonds or mutual funds.  In fact, the government allows investors to put the money in their I.R.A.'s and Roth I.R.A.'s into almost anything, be it condominiums or airplanes.  A growing number of Americans are doing just that, though so-called self-directed I.R.A.'s that steer clear of mainstream investments.

Most self-directed I.R.A.'s are invested in real estate.  Four of the largest custodians of self-directed I.R.A's are Fiserv, Sterling Trust, Equity Trust and Entrust.  Sterling Trust and Equity trust provide advice and processing checklist for those considering using their I.R.A. to hold debt-financed real estate, which is subject to a non-recourse promissory note.

Note:  The biggest risk of using a self-directed I.R.A. is breaking the law.  Generally speaking, I.R.A.'s cannot be used to invest in collectibles (stamps etc..) and life insurance.  And accountholders may not personally benefit from their investment in any way other than making legal withdrawals after the age of 59 1/2.  This means that you cannot live in a house you bought with your I.R.A., or put rental income anywhere but back into the I.R.A.  Finally, any transaction with a lineal family - like children, parents and grandparents - are prohibited.

Unified Court System E-Court Program for NY

The Unified Court System of New York has lunched a pilot E-Court program - WebCivil Local (www.nycourts.gov) - which allows internet access to the records of a limited number of courts.  So anyone who wants to check and see if any unquestionable lawsuits by credit card companies have been filed against you, I strongly suggest you click here.

Free Help for Starting a Business

More than 550,000 small businesses are launched each year. Unfortunately, a third of these start-ups fold withing two years. Rather than spend thousands for workshops to help improve your odds of success, you can get free advice from the following resources:

- The Small Business Administration, whose website provides information on how to market your business;

- Circle Lending: Circle lending handles services like electronic billing and payment processing on interpersonal loans fron family and friends, who most entrepreneurs turn to when looking for seed money; and

- Angel Capital Association: A professional association for angel investor groups, who are typically affluent people who fund early-stage start-ups in exchange for an equity stake.

5 Tips on Adversiting Basics

5 Tips on Advertising Basics

- Be consistent in your ad message and style including business cards, letterhead, envelopes, invoices, signs and banners.

- Newspapers, radio and TV stations are helpful in producing the advertising that you will be running with them.

- While word-of-mouth advertising has been around a long time, it usually falls short of being able to attract the number of customers needed to be successful in business.

- Promote benefits rather than features. A benefit is the emotional satisfaction your product or service provides, or a tangible performance characteristic.

- Know your competitors. Knowing everything about your competitors is just as important as knowing everything about your own business.

* From score.org, which is a network of more than 10,000 volunteers who mentor wannabe moguls in one-on one sessions.

NYT: A Little Guidance

Click here to read a New York Times article about the college admissions process, including the pros and cons of hiring a private counselor.

Top Ten Strengths and Experiences Colleges look for in High School Students

1. A rigorous high school curriculum that challenges the student and may include AP or IB classes.

2. Grades that represent strong effort and an upward trend. However, slightly lower grades in a rigorous program are preferred to all As in less challenging coursework.

3. Solid scores on standardized tests (SAT, ACT). These should be consistent with high school performance.

4. Passionate involvement in a few activities, demonstrating leadership and initiative. Depth, not breadth, of experience is most important.

5. Letters of recommendation from teachers and guidance counselor that give evidence of integrity, special skills, positive character traits, and an interest in learning.

6. Special talents or experiences that will contribute to an interesting and well-rounded student body.

7. A well-written essay that provides insight into the student’s unique personality, values and goals. The application essay should be thoughtful and highly personal. It should demonstrate careful and well-constructed writing.

8. Demonstrated enthusiasm, often exhibited by campus visits and an interview, showing an interest toward attending the college.

9. Out of school experiences, including work and community service that illustrate responsibility, dedication, and development of areas of interest.

10. Demonstrated intellectual curiosity through reading, school and leisure pursuits, and more.

This list is based on a 2006-2007 survey of Independent Educational Consultants Association (IECA) member consultants. For more information about IECA click here.

Looking for an Estate Planning Attorney?

"Only put off until tomorrow what you are willing to die having left undone."
-- Pablo Picasso

There is no reason why you should die without having planned your estate. Not only will it make life easier for those you'd leave behind, you will also save money by avaoiding costly litigation or estate tax. Covering the basics (i.e., Will, Trust and Health Care Proxy) shouldn't cost you more than $2,000.

The best way to find an attorney is to ask friends and colleagues for referrals. Otherwise click here.

For tips on didiving emotion-laden personal belongings check out the following website: Who Gets Grandma's Yellow Pie Plate.

America's Search Engine for Best Rates

Looking where to park your cash, and make real money?  Visit Bankingmyway.com in order to find the country's best rates on CDs, Money Market accounts, Mortgages, and Auto Loans.  In addition to following bank and credit yields, Bankingmyway.com also will help you manage your money and find a bank/ credit union in your state.

If you are looking for a credit union, also try ncua.gov or creditunion.coop.

New to Blu-ray

Blu-ray is the term for the next generation DVDs.  Blu-ray is a high-density optical disc format for the storage of digital information, including high-definition video.  A single layer blu-ray disc can hold over 25 GB of data, which is six (6) times the storage capacity of current DVDs.  For those of you who already have a high definition television, and are willing to invest in an HDMI cable, the picture could never look better!

For more information click here or to order Blu-ray movies go to Amazon.com

FAQs about Blu-ray:  click here.

Day Care Council of New York, Inc.

The Day Care Council for New York (DDC) is a non-profit organization offering child care information and professional development to the general public in the five boroughs of New York since 1952.  The DDC can offer free child care referral information on:

- The location of a licensed Child Care Center;

- Infant/ Toddler Programs;

- Nanny Services and Nursery Schools;

- After School Programs; 

- Summer Camps; and

- Head Start Programs 

For more information contact The Day Care Council of NY at the following address:

12 West 21st Sreet, 3rd Floor

New York, NY 10010

(212) 206-7818

www.dccnyinc.org

2008 HSA Contributions

According to information listed on the Treasury Departments website, 2008 Maximum HSA Contribution limits are as follows:

-  $2900 for individual, $5,800 for families;

The Minimum HDHP Deductible is $1,100 for individuals and $5,800 for families.  There is also a Post age 55 "Catch-Up" limit of $900.  Individuals with a $1,100 HDHP can contribute up to $2,900 to their HSA in 2008.

For more information about Health savings Accounts, please click here.  

What Would Babe Ruth's Salary Be Worth Today?

According to the website www.measuringworth.com, "Determining the relative value of an amount of money in one year compared to another is more complicated than it seems at first." In fact, there is no single "correct" measure, and economic historians use one or more different indicators depending on the context of the question.

Click here for a calculator that will provide six indicators for making such comparisons in US dollars between any two years from 1790 to 2005. They are the CPI, the GDP Deflator, the Consumer Bundle, the unskilled wage rate, the GDP per capita, and the GDP.

Should I Prepay My Mortgage or Invest?

Paying off your mortgage early is always tempting, especially when the stock market is volatile.  Paying off your mortgage (like any other loan) is an investment, and your return is essentially the interest rate on the loan.  If you have 25 years left on a 30 year mortgage with a fixed rate of 6.2% and you deduct the interest payments on your taxes, you'll earn 4.5% by prepaying the loan assuming you're in the 28% tax bracket.  If you invest your spare cash in stocks instead, you'll have to pay a 15% tax rate on your long-term capital gains and dividends.  So to beat the 4.5% return you'd get from prepaying your mortgage, you'd have to earn just 5.3% a year on your stocks before taxes.  The odds of you doing that over the 25 years remaining term of your mortgage are excellent:  Historically a portfolio of 80% stocks and 20% bonds has returned 7.5% a year after taxes. 

Tools:  To see how much interest you'd save by prepaying your mortgage, use the payoff calculator at Dinkytown.net.  To run the numbers on how much money you could end up with by investing, use the savings calculator at CNNMoney.com

The Bottom Line:  Investing Wins!