Record Of Special Events: August 2009

Monday, August 10, 2009

Jeff Varner | Who is This Guy Filling in for Regis?

“Jeff and Kelly” show creates questions

As Regis Philbin continues his vacay, the carousel of guest hosts continues to revolve. I particularly enjoyed the day Anderson Cooper filled in for him.

Today Jeff Varner substituted as the “Regis” part of “Regis and Kelly,” and that left America to wonder … who is Jeff Varner?

Jeff Varner has survived worse

OK, so not everyone is wondering who Jeff Varner is. Followers of the CBS series “Survivor” know who he is. Jeff Varner was a contestant on “Survivor: The Australian Outback.” Now, just for the sake of full disclosure, I have never watched “Survivor,” the Australian version or otherwise, and I am getting my information about his reality show contestant persona from Wikipedia.

From what I’ve read, he sounds like kind of a cool dude. Apparently he sold pictures from a coloring book that his fellow survivors had colored and signed on eBay — to raise money for charity. That’s pretty great for a guy who could probably use the money himself. I mean, he’s a journalist. Trust me, that’s not a very high-paying profession. I’m sure many journalists have needed a payday loan a time or two.

However, another contestant also said that he liked “tormenting” the opposition. Again, this is all hearsay coming from me so I don’t really know what that’s referring to.

The illustrious career of Jeff Varner

Jeff Varner’s stint on “Survivor” was not his last time on television. After the show he put his journalism degree to good use and became a TV news anchor. He started out as an entertainment reporter for KCBS in Los Angeles, then moved on to E! News Live, then to a position as field correspondent and host for TV Guide while working for Fox 8 WGHP in North Carolina on the weekends. … click here to read the rest of the article titled “Jeff Varner | Who is This Guy Filling in for Regis?“

Facebook Sells, Set Up Your Network Now

First things first: Get Facebook friends

I am sure everyone has noticed all of the Facebook profiles popping up that are solely for the purpose of selling something. As you can probably imagine, people see through those pretty quickly. When a company poses as a person and tries to get Twitter followers and Facebook friends it doesn’t work out very well.

The point is, if you wait until you’ve got something to sell or a business to promote to make friends, it’s not going to work out very well. However, everyone always wants to help out their friends. If you are one of those people who is holding out on getting a Facebook account, you might want to reconsider.

Friends help out friends

I am not saying that you should get on Facebook and make friends with people just so you can sell something someday. What I am saying is that social networks make life — and business — a lot easier. So after you set up your vast Facebook network, make sure you jump on opportunities to help out your friends when they could use a little free marketing. For instance, I have linked to my articles about payday loans on Facebook, and my friends posted the links on their pages, too.

Facebook is a great way to get the word out about things. If you really love a business or service, chances are you’ll tell your friends about it. Furthermore, if you come up with a business or service, people who are friends with you are more likely to use it. At the very least, your friends would be happy to tell their friends about your business.

Take the power back

Another thing Facebook does in the marketing world is give more power to customers. If someone has 300 friends on Facebook and tells all of them that they hate a certain tire place or coffee shop, it could hurt that business. Especially because people tend to live in the same area as their friends, if a local joint gives bad service to someone who has a popular Facebook profile, they could be in trouble. … click here to read the rest of the article titled “Facebook Sells, Set Up Your Network Now“

Whole Foods Sheds Pricey Image to Survive Recession

If you’re looking for green shoots, stop by the Whole Foods in Paramus, N.J. Wander in past the multihued display of locally grown flowers into the oasis of produce for which the upscale grocer is known: twenty-some types of leafy greens and pristine arrangements of flawless fruit, from rolling m…

Bad Credit Can Prevent You From Getting a Job

What a catch-22: Another Hurdle for the Jobless: Credit Inquiries

Digging out of debt keeps getting harder for the unemployed as more companies use detailed credit checks to screen job prospects.

Out of work since December, Juan Ochoa was delighted when a staffing firm recently responded to his posting on Hotjobs.com with an opening for a data entry clerk. Before he could do much more, though, the firm checked his credit history.

The interest vanished. There were too many collections claims against him, the firm said.

One one level, I can understand the reasoning behind credit checks for employment. If someone makes a mess of their finances, they might make a mess of their job too. But a credit report can’t always tell the full story and it ends up reducing a job candidate to a stereotype. A company might just as easily screen out former football players because they might be “dumb jocks,” or people who like knitting because they might be more likely to get carpal tunnel syndrome.

How is someone supposed to get out of debt if companies won’t hire them because they have debt? But it’s certainly another strong incentive to stay out of debt in the first place…

Rental Property vs REIT

Off and on, I’ve been thinking about buying a rental property but for some strange reason, the idea of Real Estate Investment Trusts (REIT) never crossed my radar. Over the weekend, a conversation with a former coworker sparked my interest in this sector again, and this time, I decided to compare a rental property with REIT. After a bit of research, let me share with you what I learned.

First, The Real Estate Conversation

Over the past year, one of my co-worker bought an income property for $140,000. According to him, he is getting $1,500+ in rent a month and after calculating all the association, property taxes and such, he is getting a 9% return on investment. With a strong cash flow like that, he can afford to wait until prices of housing finally go back to a normal upward trajectory, which is rather impressive. (now you know why I was interested…)

But REITs seem to be a good alternative too. With a bit of digging, I found was that investing in a REIT is similar to investing in an individual stock in that the performance (and risks) are very dependent on the company that owns the actual properties. Therefore, investing in a particular REIT meant that I had to keep up with research and make sure I’m not investing in a dud. That’s too much work, so I turned to ETFs. Luckily, Vanguard has a pretty attractive ETF in this area – Vanguard REIT ETF (VNQ).

At first glance, VNQ’s 4.8% yield is not as attractive as a 9% return, but 9% comes with more hassle and risks. They include:

Possible Tenant Troubles – They may call you for something that needs to be fixed, which costs you time and money.
Tenant Payment Issues – If the tenant decides to live there rent free, it takes months to properly evict them.
Tenant Changeover – Every time the original tenant moves out, you have to pay for cleaning, possible remodeling as well as the down time of having no tenants for a while.
General Maintenance of the Properties – Houses need fixing as they age, and everything is a cost.
Soft Costs – Cell phone costs for talking to the tenants, gas to go check out and manage the properties are all costs that add up over time.

On the other hand, REITs offer:

Liquidity – The ETF can be bought or sold at any time.
Compound Interests – Dividends are distributed quarterly and if you reinvest it back into the ETF, the returns are higher than the stated 4.8%
Historically, the yield is higher than 4.8%, but with a sagging economy, vacancies are high. Over the long term, this yield should increase faster than the rent that my coworker is getting.
Small Barrier of Entry – The reason why my friend is able to buy these condos at such a low price is because he is paying cash. How many of us really have $140,000 lying around? With VNQ, you can start with $50.

Other Factors to Consider

Taxation – In general, dividends from REITs are taxable as ordinary income. Since this is the same as the income generated from an income property, it becomes a wash. However, REITs sell buildings from time to time, forcing investors to take capital gains, which can erode some gains. With REITs, you can put it in retirement accounts to shelter the income from taxes while it’s not possible (at least from what I’ve read so far) to do so with a real property.
Appreciation – Rental properties obviously can gain in value, and so will REITs. I consider this a wash because I, or anyone else for that matter, cannot accurately predict which investment is going to appreciate more in the future.

Since I’m striving towards passive income, a REIT ETF seems like the way to go, especially if I’m thinking long term and planning to make investments in my retirement accounts.

What do you think? Do you own either of these and have some suggestions for a novice like me? Anything else you want to add about these?

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Related Articles at Personal Finance Blog by Money Ning:

Sunday, August 9, 2009

Reader Success Story: Debt Free on $2,000 a Month

We interrupt this series of Staff Writer auditions to bring you a brief success story from a Get Rich Slowly reader. I receive several of these a month (often several a week), and sometimes wish that I had a place to share them all. Instead, I just make the time to share a handful every year.

This morning, Jay wrote to share his own tale of dedication:

Hey JD! I am very excited to tell you that I have paid off just over $12,000 in the last 11 months (I only make about $2,000/month) and am now debt free!

Thank you for your tips on saving and making the best choices! Once the psychology of my money problems got worked out, it became easy and even FUN paying my debts off ahead of schedule!

I've also started contributing to my company's pension plan (they match my contribution up to 5% of my gross pay) and even started building my emergency fund past the $500 I had set aside.

Thanks for what you do here to help so many people like me change their thinking and start making better choices!

What I usually tell these folks is: “Thanks for writing. I love hearing success stories like this. Your kind words and your inspiring story are what make writing Get Rich Slowly all worthwhile.” And it’s true.

Actually, now that I think about it, maybe it would be possible to erect a “Success Stories” page where I could collect these stories (or at least those that people gave me permission to share). Hm. I’ll have to think about that.

Anyhow, I hope that you are well on your way to meeting your financial goals. And I hope that you’re enjoying the posts from the prospective Staff Writers. I thought these auditions would make it easier for me to choose whom to bring on board, but so far that’s just not the case. I still love all seven!

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Related Articles at Get Rich Slowly:

Podcast 16: Jeff Rose, Certified Financial Planner (CFP), and Jeff Bartlett, Consumer Reports Autos

In this episode of the Consumerism Commentary Podcast Tom Dziubek speaks with Jeff Rose, Certified Financial Planner^™ about financial planning. Jeff talks about different professional designations for financial planners and what it takes to become certified. He shares with Consumerism Commentary Podcast listeners some of the trends he sees with his clients, advice that could benefit everyone.

Tom also interviews Jeff Bartlett, online editor for autos at Consumer Reports, about how the magazine tests and evaluates cars. Jeff also shares suggestions for shoppers who are currently in the market for a safe, reliable car, either new or used, and offers tips for negotiating with car salespeople.

To listen, use the player above (Adobe Flash required), download the podcast here, subscribe to the podcast RSS feed, or use the iTunes link. Note: open links in a new window (Ctrl-click or Command-click) to avoid interrupting the podcast.

[00:00] Introduction from Flexo and an announcement about Money Quantum
[00:58] Interview with Jeff Rose, Certified Financial Planner
– [01:12] Difference between Financial Planners and Financial Advisers
– [01:57] The CFP and other designations
– [04:50] Jeff’s website, Good Financial Cents
– [06:36] Changes in saving habits since the beginning of the recession
– [08:10] Tom asks Jeff for free 401(k) advice
[13:02] Interview with Jeff Bartlett, Autos Deputy Editor for Consumer Reports
– [13:15] Auto testing methodology at Consumer Reports
– [15:05] How Consumer Reports handles reliability reports from customers
– [17:02] Consumer Reports’ perceived bias towards foreign cars
– [19:20] Qualifications for the Cash for Clunkers program
– [21:17] Possibility of Cash for Clunkers hurting domestic car sales
– [22:12] American cars that have made the best strides in fuel efficiency
– [22:46] Best buys for new cars
– [23:58] Negotiating with car salesmen
– [26:37] Best choices for used cars
[28:58] End

We always welcome feedback from listeners. If you have any comments for this episode or for any other, or if you have suggestions for future episodes, please leave us comments here or email us at podcast at this domain name.

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Podcast 16: Jeff Rose, Certified Financial Planner (CFP), and Jeff Bartlett, Consumer Reports Autos

Friday, August 7, 2009

Jeff Varner | Who is This Guy Filling in for Regis?

“Jeff and Kelly” show creates questions

Jeff Varner

As Regis Philbin continues his vacay, the carousel of guest hosts continues to revolve. I particularly enjoyed the day Anderson Cooper filled in for him.

Today Jeff Varner substituted as the “Regis” part of “Regis and Kelly,” and that left America to wonder … who is Jeff Varner?

Jeff Varner has survived worse

Cash For Clunkers Gets $2 Billion Green Light

If you’re in the market for a car, get to buying!

Cash For Clunkers has been extended (Photo: blogs.southtownstar.com)

Did you actually think that a Senate with a Democratic super majority would allow one of President Obama’s pet projects to die? Did you believe that the shot in the arm for automobile dealerships would be allowed to fade away? Did you think for one second that Americans would stop buying things they probably can’t afford?

Of course not. And that’s why Cash For Clunkers has been extended, to the tune of $2 billion taxpayer dollars. That will mean more payday loans with no faxing and short term loans for down payments, so it helps Personal Money Store, too.

Stimulate the economy, Mr. Obama!

Deb Price reports for The Detroit News that the Senate voted 60-37 and President Obama signed the bill this morning to turn the taxation switch and slam $2 billion more through the Cash For Clunkers program. By current estimate, this should keep the program going through at least Labor Day and fund about another 500,000 vehicle trade-ins. However, this will be the last time, say supporters of the measure. We’ll see about that last one.

“Now, more American consumers will have the chance to purchase newer, more fuel efficient cars and the American economy will continue to get a much-needed boost,” said the president. “Businesses across the country — from small auto dealerships and suppliers to large auto manufacturers — are putting people back to work as a result of this program.” ... click here to read the rest of the article titled "Cash For Clunkers Gets $2 Billion Green Light"

Cash for Clunkers: The Revenge

The “Cash for Clunkers” program that we told you about on June 19 has received a shot in the arm in almost-last-minute actions by the House and Senate. They approved an addition $2 billion to continue the unexpectedly popular rebate program through Labor Day.

Opponents of the program feel like:

Richard Shelby, the top Republican on the Senate Banking Committee, said the program “has squeezed months of normal activity” into a short period of time.

But NPR’s Planet Money pointed us to at least one couple who wouldn’t have bought a new car if it weren’t for the program.

And though rebates are reportedly difficult to process, dealers and automakers love the program:

“There is no question that ‘cash for clunkers’ has succeeded,” said Dave McCurdy, chief executive of the Alliance of Automobile Manufacturers, the chief trade group for General Motors Co, Chrysler LLC, Ford Motor Co, Toyota Motor Corp and other big carmakers.

Have you participated? If so, were you going to buy a new car, anyway?

The Consumerism Commentary Podcast is in full swing with new episodes every Sunday. Listen and subscribe now!

Cash for Clunkers: The Revenge