My Economic Stimulus

MES News: 2nd stimulus package?

2008-10-20T11:42:00.004-04:00

Months after saying no to a second economic stimulus package, Fed Chairman Ben Bernanke is now saying yes. With a twist, according to this Wall Street Journal article. Not as intoxicating as vodka with a twist, but this is still interesting news.

Is it wrong that I'm salivating about a second $600 check? Does it show desperation? Never fear, I will keep paying Powerball. But facts are facts: Powerball gave me $8 this year, mostly thanks to two times I got the Powerball number and nothing else. The government gave me $600! (Should I be given another $600 check since I saved it and turned it into $400, according to this morning's trading?)

Of course, the story doesn't say $600 yet or any other figure for that matter. Just stuff about encouraging spending among the masses while helping the credit and housing markets. Hope I don't have to wait until next year's tax rebate check to find out more.

MES To Do List: Take the emotion out of this painful game

2008-10-10T12:27:00.007-04:00

Between playing Word Twist on Facebook and checking the status of My Economic Stimulus Portfolio on Yahoo!, my right wrist is really starting to throb. The pain starts in the knuckle of my middle finger and darts back to my wrist.

A self-imposed break from Word Twist has helped. But I can't stop checking for numbers in the green on my personalized My Yahoo! page. Not even on weekends when -- duh! -- the markets are closed. Sad to admit, but last Sunday I was actually looking forward to the workweek because the markets reopen Monday morning.

Just checked my stocks again. (There were 2 "in the green" when I began this post and now there is only 1). Slowly, the pain trickles up my forearm. By the end of the day, my shoulders will hurt too. Not sure if that's due to the obsessive clicking or daily stress and my office chair that is set too high for my desk.

Thankfully I also clicked on this Kiplinger.com article about how to keep your sanity and emotions in check as the greens fade to red. Its message is in the same vein as advice I've received lately. If I take the emotion out of investing, that will alleviate the pain.

The article offers a good exercise to chart your stocks. If I simply write down my high and low thresholds for each stock, that will help me determine when to sell and when to stock up. Whether it's a diet or a to do list, putting "something" in writing has helped me stay on track toward my goals. To accomplish two goals with one cliche, writing things down has helped me put my money where my mouth is.

My Economic Stimulus Portfolio Update: Fully INvested

2008-10-08T15:19:00.010-04:00

The $600 that prompted My Economic Stimulus is finally fully invested.

Here's My Economic Stimulus Portfolio Update: I spent the last $30 earlier this week on a low-priced stock. Can't beat $1.75 a pop. Hope it was worth it. Of course in this market, what was low-priced on Monday is even lower on Wednesday. Such is life right now.

I'm not going to worry about it for 2 reasons:

The market swings in cycles. What goes up, must come down. What goes down, must go up. Unless, of course, you're stepping off a building. No worries for me -- I live in a raised ranch and have no access to the roof.
The experts say there's no tried and true method for timing the market. Sure, everybody gets lucky sometimes. And even though my Dad reminds me, "It's better to be lucky than good," he and I both know the lucky gene belongs to my brother, John, not me. Good thing too since John, not me, fell off a second-story porch once. (My falls are usually from 5 feet, 5 inches or less.)

I plan to post My Economic Stimulus Update weekly. Here's what I picked for my portfolio, why and the "what now":

EFJI - This is my most recent buy. The company develops secure communications for first responders and just got a $48 million contract from the Navy.
GLW - I blogged about Corning recently after receiving a tender offer from a company wanting to unburden my portfolio. But at the price I bought, selling wasn't worth it. Since then, the price dipped. I bought a second batch. It dipped again. Yikes. But the big reasons I got into it (twice) are its corner on the LCD market the fact that its software was being used to help build greener cars, not because I have a stockpile of Corning glassware in my cabinets. People aren't buying flat panel TVs as much right now. Hopefully that will change around Super Bowl time ... maybe even if our house too.
DLIA - Delia's was my pride and joy, mostly because it made me look like I could time the market. I researched it, followed the charts, and then bought it at 1.82. It shot up a few days later and hovered around $3 for a while. It was tempting to sell and make about $30. I held onto it. Now, like other retailers, the price has dipped. I'm hopeful it will rise again soon.
MAR - Bought this because Smart Money Magazine rated it as a long-term gem. Still remains to be seen, thus the long-term tag. In this market, less people are traveling and staying in nice hotels. I'm considering a Super 8 for this weekend.
ANSS - This was my first buy. It's a software company in Pittsburgh that helps a lot of big name companies get better products to market faster. Though it's slipped a bit since June, this stock is on a lot of Strong Buy lists.

All told, my $600 is worth about $387. It's less than a $171 loss (or dip) if you consider the $7 per trade I have paid to Scottrade to get this thing stimulated.

Warren's Words of Wisdom

2008-09-25T13:08:00.003-04:00

I've been googling my face off the last few days for investing advice in times like these. There are so many opinions out there, mostly telling people not to sell because getting out is not the answer. I wonder if that's what AIG shareholders thought two weeks ago.

I get it! Sheesh. I'm in and I'm staying in.

Anyway, I found an article today on Yahoo with some more advice that that alerted me to a gem of a quote from Warren Buffett. The article is part of a Yahoo series called Beginning Investing. The next quote for the quote book I've kept since college is:
"Only when the tide goes out do you discover who's been swimming naked."

I wonder if that's what AIG shareholders thought two weeks ago.

Anyway, articles about the federal bailout plan's pros and cons are pretty dry and confusing. I think I'll go read more Warren Buffettisms instead.

Buying Stocks on Sale

2008-09-18T16:02:00.003-04:00

The market is down. Again. The fever I felt the last few weeks when watching my cheap-o stock climb almost a full dollar a share to $2.75 is gone. (That diamond in the rough is hovering around $2.20 today so it's not that bad.)

I keep hearing on the morning TV news shows that financial analysts now play the role of shrinks. Their best advice for their clients is to do the opposite of "Don't just stand there -- do something!" I've been interpreting this as don't sell, sell, sell and do buy, buy, buy.

That's because the talking heads are encouraging us to think of the this down market as a special sale. And who doesn't love a bargain?

Since I do love a bargain, I bought more Corning (GLW) stock today. I bought 10 shares last month when the share price was close to $20. Then it fell a bit. Then the tender offer came, then it fell some more. Then it dipped below $15!!! Despite another $7 trade fee to Scottrade, I bought more of the same because I believe in the company, I believe it's on sale and I believe the shrinks when they say what goes down, must come up.

Could it be happening already? Here's today's news of a stock surge. It would be nice but I keep reminding myself, I'm in it for the long haul.

Could

Tender (Offer) Moments

2008-09-03T13:24:00.003-04:00

I got an email from Scottrade this morning about a tender offer from TRC Capital Corporation. TRC wants to take my 10 shares of Corning stock (GLW) off my hands for $20.50 a pop. While the offer per share is higher than today's opening price of 17.75, I wasn't sure what to do. What the heck is a tender offer anyway?

So I phoned Scottrade. I explained to "Scotty" why I was calling and immediately launched into my trademark list of questions. Most important of which was ... is this a wise move for me?

I'm not sure how much he could tell me or wanted to tell me since I'm a teeny-weenie fish among Corning's owners. But he provided me with a sounding board for my ideas and helped me determine my answer.

There are few key ideas at play here. Firstly a tender offer sounds sweet, but in my case, is not sweet enough. A tender offer is a third party's solicitation to purchase a substantial percentage of a company's shares, according to the SEC. The biggest issue for me? I only bought the stock last week at 20.19. So the 20.50 offer would give me 31 cents a share. That's 3.10 minus the $7 commission I paid to buy the stock in the first place and a $25 reorganization fee I would owe Scottrade to transfer it to TRC Capital. My goal is to make money, not give it back.

I decided to leave a tender moment alone and said no. The basic math is enough to see why. I also googled TRC and found a few interesting articles, mostly from the companies imploring stockholders to resist TRC's "tender" moments. I read this one: Corning Recommends Rejection of below-Market Mini-Tender Offer by TRC Capital Corporation. Gannett said something similar in May. (Gannett's stock is 18.04 today compared toTRC's offer of 29.45. Yikes!)

The bottom line is this: I bought GLW last week because of what I read in the June issue of Money Magazine. Corning is big into LCDs, which are used in everything from electronics to cars (trying to overlook the news today that this sector is bloated and will stall in Q3) and makes emission-control systems for trucks -- an issue that gets air time daily as we try to walk the talk of our environmental consciousness. I'm into Corning (and My Economic Stimulus) for the long haul. I'm not sure how long that is ... but I'm certain it's longer than one week.

Join the Savings Revolution

2008-09-02T13:25:00.006-04:00

Here's a tidbit in the September issue of my Smart Money Magazine listed under the title, Juicing the Economy:

"Americans are so often chastised for not saving enough, but the rebate checks recently pushed the national savings rate to 5 percent. If it stayed this high, it would be the highest percentage of saved income since the late 1990s."

That's kinda cool. I've never been part of a revolution before.

If you recall earlier this year when the big wigs announced the stimulus package, they implored us to spend, spend, spend. Instead, I banked my $600 and started My Economic Stimulus.

Have you started saving more this year than ever before? If so, post a comment to this blog entry so we all can benefit from your experience!

Everyone Needs a Vacation

2008-08-29T20:47:00.006-04:00

Everyone needs a vacation. And while I didn't take a 2-month vacation, I took that long of a hiatus from blogging. Can't believe I haven't checked in since June 30! Anyway, I'm back.

The good news is My Economic Stimulus did not take a vacation. Thanks to the TD Ameritrade Save Yourself Plan I set up in March, I am socking away cash monthly, earning interest and working may way toward my $100 bonus. My account will top $350 this month thanks to $50 automatically monthly deposits I set up. The interest is low -- 2% I think -- so the bonus is the gravy on the french fries. And all I have to do to get that bonus is keep up the monthly contribution.

What about the $600 that started this experiment? After sitting safely in the Scottrade account while I procrastinated, I bought my first two shares in June. My first purchase? A software company. I've made a few more moves since then. (Details in a future post.) Let me just say that watching the stocks go up (and down) is fun, especially when the 20 shares of a cheap-o stock I bought went up 30-something percent today! How could I have not played this game for so long?

Who foots this bill?

2008-06-30T11:48:00.002-04:00

As I've noted a few times in My Economic Stimulus, the IRS is quite busy fixing mistakes that sprung from the Economic Stimulus Plan of 2008.

Hard to believe there have been so many issues. Here's the latest about taxpayers who received their stimulus money, but not their kids' $300. An additional 230,000 checks will be mailed in July. So let me do some quick figuring: 230,000 multiplied by the now 42 cents for a first-class stamp. Wait, the IRS probably qualifies for bulk-rate postage. Well, to quote Mike Rowe on the episode of Dirty Jobs I watched last night, "that's a lot."

Of course, I really shouldn't give the IRS a hard time. First of all, I already got my $600. Second, I too manage projects and know that even the easy ones (wait, especially the easy ones!) have screw ups.

Hoping to put together a pie chart showing the balance of $600 after I've invested some of it. More info to come ...

Stimulus checks diverted -- on purpose!

2008-06-25T17:18:00.003-04:00

Nearly $2 million worth of economic stimulus checks have been diverted, and this time, it's no mistake.

According to this USA Today story, the U.S. Treasury Department intercepted a whole lot of checks from folks who haven't paid child support, student loans and overdue taxes. The money is going to agencies (and eventually individuals) who have no doubt gone too long without the money they are due.

Taxpayers who didn't get a their checks are being notified in letters, the article states. Of course, they still get to keep livin' the life of a deadbeat parent or overdue-bill havin' U.S. citizen.

Yet another reminder to keep my economic stimulus going and get my finances in order. I don't want someone else to get to do it for me.

Blogging as therapy

2008-06-24T22:53:00.003-04:00

Found a little tidbit about blogging itself in this week's Newsweek. So this financial experiment is actually therapy? Perhaps.

Here's a few blogs I started tracking recently:

49ccscooterdude.com - a commuting adventure
This might hurt

Verified (and funded)

2008-06-23T14:07:00.004-04:00

No clown blowing up balloons behind me. No BlackBerry blowing up. No talking baby. God, I love those eTrade commercials!

But after a series of steps, Scottrade greenlighted the investing part of my economic stimulus. The verification process, done through Scottrade's tool called MoneyDirect, deposited two odd amounts into my bank account.
I confirmed the amounts.
Scottrade validated me. (Scottrade is taking back the amounts now as its last step of the verification process. Not that I could have done much with the pennies since both amounts totaled less than a buck.)

After that, funding the account took what seemed like maybe 2 minutes. Three tops. Lesson here: Scottrade don't mess around when it's time for me to give them my money. My $600 is in Scottrade's hands now.

All I have to do is a pick some stocks and I'll officially be IN. Maybe then I'll get my own clown.

P.S. Speaking of babies, my friend Delphine welcomed a baby boy named Rocco on Saturday. She and her husband Norm are already grooming him to be the Mets' first Belgian-Italian shortstop.

Verificiation before validation

2008-06-20T12:04:00.004-04:00

Scottrade needs to verify my regular bank account that I plan to use to fund my Scottrade account. Upon verification, the investing part of my economic stimulus will finally be realized. And then I will feel validated!

No biggie. TD Ameritrade did the same thing when I opened my Save Yourself account.

But Scottrade gives you the option to let Scottrade go into my bank account with my password and verify the routing #/me immediately. This stopped me in my tracks.

WHAT?

With all the warnings to NEVER give out passwords, I did not feel comfortable with this. TD Ameritrade didn't need a password. Why does Scottrade? So I called Scottrade for the umpteenth time. Mike from the McMurray, Pa., office told me about the alternate verification method which only needs the routing and account numbers. This could take 2-3 days. My security is worth that much.

See, it pays to ask a few (thousand) follow-up questions.

Over-stimulated

2008-06-16T11:13:00.005-04:00

Twice is nice, but hardly worth the price.

Some folks have received more than one stimulus check! Not me. Maybe the government REALLY, REALLY thinks those people are such good shoppers and rewarded them with another $600 to further stimulate the economy.

Whatever the case, experts also say not to cash both since the IRS will discover its mistake sooner or later. This, and the issue of people receiving other peoples' checks, is sure to keep the IRS troubleshooters in business.

P.S. Still working on the kinks with Scottrade. My account is up and running. Just working on funding it. A good tip for folks doing the same? Sign up for paperless balance alerts and trade confirmations. Otherwise, this broker will charge you $1 and $2 a pop!

It's in the mail

2008-06-03T23:40:00.003-04:00

I finally mailed my application to Scottrade for an online account.

That's right -- mailed. As in USPS. Snail mail. The Slowskys.

In this day and age when applying online, emailing info and faxing documentation are the status quo, none of these options worked. Is this a sign? Seriously! There was a security issue online. I answered an open-ended question incorrectly about my monthly mortgage payment. Scottrade sent me the application in the mail instead.

I procrastinated a bit. Scottrade obviously was in no rush to get my account up and running. So I wasn't either. But you better believe I've already receive 2 more marketing pieces in the mail. I'm on the company's list already and I'm not even a satisfied client!

Filled out the application Friday night while waiting for Outback's Carside To Go service. The application was super easy and fast. Plus, it did not require the details that hosed me on the online application.

I went to fax it on Monday. The fax would not go through. The previous fax NOT having a thing to do with my economic stimulus? No problem. The Scottrade stuff? No can do. Not after 3 tries. Apparently, I'm not the only one who thinks fax machines suck.

So I dipped into my savings to pay for stamps and mailed the mother. Now I sit and wait to see if I'm accepted much like a college ap. If they take too long, I'll be hooking up with eTrade or TD Ameritrade toute de suite.

It's Showtime, Baby!

2008-05-23T23:16:00.005-04:00

Nothing says wild and crazy fun on a Friday night like downing another IC Light while watching a documentary on Showtime. But that's me tonight. At least, I'm still awake. Everyone else has been snoring since 10:30 p.m!

Anyway, I'm watching Maxed Out: Hard Times, Easy Credit and the Era of Predatory Lenders. The film was made by James Scurlock in 2006, not to be confused with Morgan Spurlock. Spurlock made the thought-provoking flick, Super Size Me in 2004. Back to Maxed Out. It has its fair share of politicians squirming, regular people suffering from regular problems and basically everyone you're supposed to trust -- looking distrustful. Seriously, no one is safe. Suze Orman just got ripped for being in bed with FICO! Not that I've bought her FICO Kit. Yet. Or registered for it. Yet. Frankly, I'm not even sure after reading most of her book, Women and Money, if I already own rights to the kit just by buying her book. She promotes the hell out of FICO so much, I have started to tune out. And if you've read any of Suze's books, you know a bad FICO score will have you spewing F-words all the livelong day.

Maxed Out reminds me how great marketing makes you spend and spend even if it means spending money on things that are supposed to show you how to stop spending. Kind of defeats the purpose of a mission like my economic stimulus. A great reminder, too, to stop and smell the roses every once in a while, consider the source like my Mom always told me to do and then consider other sources to help round out your full story.

Tips

2008-05-19T07:10:00.003-04:00

After the story about the IRS mailing stimulus checks to incorrect recipients, I've been on the lookout for one of those recipients. No one I know. At least, no one is fessin' up. And as much as I've sung the praises of direct deposit, apparently mistakes have cropped up there too.

Anyway, if you receive someone else's $600, please report it to the IRS (paper check) or your bank (if it was already directly deposited). Do it.

If you're still waiting for your dough, you're probably going to be told one of the following:
1. The checks are on their way and will continue to be disbursed until at least July, depending on when you filed.
2. Go here.
3. Call the Refund Hotline at 800-829-1954

IRS screws up

2008-05-15T15:51:00.003-04:00

I screwed up this morning and forgot my yogurt and banana on the kitchen counter when I left the house. Fortunately, I remembered while pulling out of the drive. Quick fix: Ran back into the house (in heels) to get my snacks and sped off to work.

At least my screwup didn't tick off 15,000 people. That's how many "poor" folks' $600 checks were mailed to the wrong address. Yet another reason to do direct deposit!

My economic stimulus is still ongoing thanks to the TD Ameritrade savings account I set up earlier this year. Stalled a little on the investment front with Scottrade, though. Something in my online application hit a snag. Kind of ticked me off. To boot, after I input my personal data online, there was no email from Scottrade telling me not to fret and that they would be in touch.

I did get a call on Monday from Scottrade inviting me into its nearest office. So much for quick, online service. The broker also sent me a package in the mail, including the application. So much going on these days I haven't had time to fill out and submit it. Hopefully this weekend.

While Scottrade gave me the cold shoulder, at least Suze Orman checked in on me. Yes, it was an auto-generated email. She congratulated me on setting my savings on autopilot and reminded me: "You're on the path to saving yourself!"

Pulling the trigger

2008-05-04T11:00:00.004-04:00

Procrastination strikes again ... but this time it works in favor of my economic stimulus. I'm not procrastinating investing. Just cleaning the house. Not one of my favorite activities! Friends and family can attest.

I figure that if I pull the trigger on an online brokerage FIRST, I can gain work-free interest WHILE I dust, sweep and scrub next. I went back to my previous posts about the brokers I researched and also to the recesses of my memory.

TD Ameritrade stuck out. Probably because it was so easy to sign up for the Suze Orman Save Yourself Account. An blurb in Newsweek listed this helpful link for finding the best online broker for me. Just answer 3 questions:

1. What's your total portfolio value? My $600 puts me well under $25K.
2. How many trades will you make per quarter (I answered this a few different ways to see how it would affect the monthly costs ... the default 5, 10, 200.)
3. How many average shares will you buy per trade? (This depends on stock price of course, but I figured 5-10.)

The numbers are in: Scottrade is for me. $7 per trade can't be beat.

TIP: Double check the costs per trade and the costs per quarter.

Now is the time for REAL action ... I hope to pull the trigger on a stock purchase by the next posting.

The Biscuit is in the Basket

2008-05-02T08:59:00.005-04:00

My stimulus check is here!! My stimulus check is here!

Just surfed to my online bank account for the 800th time this week. And there it was, much to my delight! The check is processing itself as I type.

So exciting! So thankful for direct deposit! So hard to believe some people STILL don't trust direct deposit (former employer of mine actually... ).

Got a busy weekend ahead. Between cleaning the house, attending a breakfast for my non-profit group, the Greater Pittsburgh Literacy Council, and hopefully attending a friend's Cinqo de Mayo party, I need time transfer the my economic stimulus $ to my online broker and get this show on the road. Fortunately thanks to online banking, this is totally doable!

Go check your account ... NOW!!

Shut up, Be Charitable!

2008-04-30T16:00:00.000-04:00

Still wondering what to do with your $600 while you're waiting for your $600?

This San Francisco Chronicle article illustrates the dilemma that Americans face this year: Spend the windfall on a frivolous item (treadmill anyone?) or put it toward survival (gas ... don't get me started!). Where does mattress fall in this spectrum?

Hmm ... never thought of donating it to charity. Other than my own investment project "charity" -- my economic stimulus.

Whatever you decide to do with your dough, keep this in mind: Treasury Secretary Henry Paulson says don't bet it on a second stimulus package. Don't blow it.

Bank of Wal-Mart

2008-04-29T23:24:00.005-04:00

Still no stimulus check yet.

I'm checking my online bank account every few hours. Two straight days of this behavior. Oh Economic Stimulus Package ... come out, come out wherever you are!

I filed my taxes early and opted for direct deposit of my tax rebate. So all systems are a go for the IRS to drop that bonus $600 rebate on me any second now. Seriously, paper checks go out May 9. Am I really going to have to wait until May 8? Have I mentioned I'm impatient?

And while I wait and wait, more retailers are coming out of the woodwork with tempting offers. Wal-Mart will cash my stimulus check for me free of charge. That's right, the $3 check-cashing fee will be waived even if I opt for cash and not the $600 on a Wal-Mart MoneyCard.

Too bad I nearly lost my mind on my last visit to Wal-Mart. Damn those Rollback prices! They are what's truly tempting! I saved some cash, true. But it wasn't worth the brain cells I lost after having to donate them to the cashier to get her to re-scan my coupon.

Now if Target offered to cash my check ...

Shopping Spree at the Gas Pump

2008-04-25T14:28:00.006-04:00

When I first learned about the Economic Stimulus Package and the government's desire for me revive the economy with my $600 cut, I thought that meant spend it on a luxury item I wouldn't ordinarily buy. At least, not without feeling guilty.

a big screen TV for Adam
a Louis Vuitton bag (or 2)
a long weekend at the spa with a girlfriend

I guess filling the old gas tank in the Pilot is my new luxury item. Not really the shopping spree every girl dreams of.

And not like I have a choice either. Girl's gotta get to work. Fortunately my new commute isn't bad but I do travel nearly 50 miles each day. With all this "Going Green" business, driving that much in my SUV gives me guilt of a different kind.

So basically my economic stimulus package is an excuse for me to earmark some money for my investing plan. Honestly, I don't need another purse. But I would like to think that I'm the one who benefits financially since I'm the doing all the work -- saving (not frivolously spending) the $.

Stimulus Checks May Arrive April 28

2008-04-25T07:17:00.009-04:00

Stimulus checks could be arriving almost a week earlier than originally planned. Maybe even Monday!

Originally, the U.S. Treasury stated in March that checks would first be mailed May 2. That March news alert lit a fire under my economic stimulus. Still not sure what I'm doing with my whopping $600 but this process has certainly made me craft investment plans. I hope to execute them soon. I've already started saving by opening my TD Ameritrade account. That's something I wouldn't have done had I not taken time to think about how to use the cash.

Checks will go out Monday, Tuesday and Wednesday next week, apparently because the IRS processed so many tax returns before the 4/15 deadline. You couldn't get your stimulus check unless you filed your taxes. I know we did ours early this year. If you did too, pat yourself on the back!

Even better news, if you elected direct deposit for your regular tax rebate, your stimulus check should arrive the same way -- quickly! Paper checks will be mailed May 9 per CNN.com. Mind you, it could still take up until June for everyone to get theirs.

What are you doing with yours?

More ways to blow your check!

2008-04-21T23:38:00.003-04:00

Sears will help grow your $600 ... and then bank it for you.

Who are ad wizards that came up with this one? The Sears "Stretch Your Stimulus Check" promo won't help my economic stimulus. But don' t let that stop you.

It takes more than a $60 incentive (10% of $600, right?) to get me to blow my check at Sears. Now Target ... that's another story!

Marketing the Economic Stimulus

2008-04-20T23:43:00.004-04:00

Restoration Hardware is getting in on the economic stimulus action! Click here for your own coupon. (Coupon code is HEMAP804).

Of course, I find it interesting that the voucher is worth $100 when I spend $750 (or more). Do the math. That means I'd end up spending $650 (or more) in order to use the coupon.

NO DEAL.

Reality check ... I've got only $600 to "spend" here! And the goal of my economic stimulus is to not spend, but rather invest so that one day I'll have more than just $600 to spend.

Let me know if you see any similar marketing gimmicks to this one from Restoration Hardware.

It's tax time! Duh.

2008-04-14T08:02:00.005-04:00

If you're anything like me, you'll spend a windfall 13 different ways before you ever get the cash. This is yet another reason for the My Economic Stimulus blog. Kind of like an online diary, the blog keeps me focused on my goal to invest my $600, save and earn more money.

My economic stimulus package (and yours too) are not here yet. And you won't get your $600 unless you file your 2007 federal taxes. Mine have been filed (right schmoops?). As I've been told before, the w-a-a-a-a-a-a-iting is the hardest part.

In case your the morning news programs didn't remind you enough today and you haven't seen the TV ad where the man asks a woman what time it is and she freaks out because she knows "It's tax time!," heed this reminder:

The deadline to file 2007 federal taxes is Tuesday, April 15. Get to steppin'!

Here's an article in today's Post-Gazette about that that made me laugh. While I usually do fall into the procrastinator category, we filed our this year's taxes the earliest ever (right schmoops?).

Gentle prodding from Newsweek/Newman

2008-04-08T12:52:00.010-04:00

My name is Christine, and I suffer from analysis paralysis ... when it comes to investing.

After a few days of itemizing new expenses and old ones that won't go away, I realized I had not been working toward the goal of my economic stimulus lately. Once again, that goal is to learn about investing with a small amount of money ($600), make a few mistakes and hopefully financial gains along the way.

I learned from an article in this week's Newsweek that I'm also battling loss aversion. That's what the behavioral economists say anyway. (BTW, is this a real profession? Or a made-up job a la sanitation engineer? Check these others out. I'm partial to fridge poetry arranger. Probably because I LOVE magnets!) To me, loss aversion means that my fear of losing my $600 does not equal my desire to double my $600, and thus, I don't take risks. The article also reminded me that I'm one of millions of financially illiterate Americans.

Funny because adult literacy is one of my causes du jour.

A good friend also reminded me of such this week with this question: What's the difference between Class A and Class B stocks? I wondered the same a few weeks ago and forgot to look it up so thanks for the prodding! Seriously.

A company usually breaks stocks into Class A and Class B categories to attract smaller investors. Those smaller investors pay less for a highly-desired stock but gain fewer voting rights than the other upper crust's stockholders.

According to this USA TODAY article, "The owners want to tap the public markets for capital without relinquishing control of the company."

Google and the Washington Post are among the many companies that do this. Each company decides which letter belongs to the upper crust. Google's Class B shares are owned by its big wigs. Class A shares are for folks like me. The famed Graham family owns Washington Post's A shares. Its class B shares are available to the general public. I'm told the ticker symbol will end in an A or B to indicate which Class the shares belong to. I can't seem to find an example right now.

Timothy Sykes ain't Foolin'

2008-04-01T11:47:00.003-04:00

A fan of My Economic Stimulus alerted me this morning to Timothy Sykes' dig on the crew at Motley Fool. Check it out.

April Fools?

2008-04-01T10:35:00.001-04:00

Just chose to check back in with Motley Fool to further my economic stimulus education and saw the following. Is this an April Fool's Day joke?

Therefore, it is with unparalleled enthusiasm that today we announce that for the next six months, The Motley Fool will not be covering the stock market or writing investment-related content of any kind.

Trust us. Now let's move on.
This may come as a surprise to many of you, but old-time Fools will recall that covering the stock market was 25% of our mission in the early days of The Motley Fool. When we started online at AOL in 1994, our investing forum was so popular, we launched content for the entertainment industry (Follywood), sports (FoolDome), and pop culture (Rogue).

Rest assured: We will approach these topics and others with the same zeal and passion that we have for investing. Let's face it, folks. Everyone needs a break now and then, and as Buffett says, "if you can't take six months off from the stock market to stop and smell the roses, you just ain't livin'."**

Motley Fool's Day

2008-03-30T21:14:00.005-04:00

I subscribed to the Motley Fool investing newsletter 10 years ago -- the last time I planned to buckle down and get serious about my financial future. The newsletters reliably arrived in my email account. But I rarely read them and never acted upon the advice they contained.

I wasn't ready. Obviously I am now.

In just the one month of blogging about my economic stimulus, I have done more to secure a smooth financial future than I did the last decade.

So just before I celebrate April Fool's Day, I decided to check in with my old friends at Motley Fool. In preparation for receiving my $600 disbursement, I'm looking everywhere on how to invest such a small amount of money. Almost everyone advises paying down credit cards and high-interest debt before they get to what I really want to know -- stocks.

The Fool article I found is titled How to Invest $20, $100, and $1,000 (and More). Suze Orman and Jim Cramer are great resources, but this is CLOSE TO EXACTLY what I have been seeking for a while now. Now I'm learning about index investing, Dividend Reinvestment Plans (DRPs and often called Drips), and Direct Stock Purchase Plans (DSPs). Drips and DSPs let you bypass brokers and commissions by buying stocks directly from companies.

For more information on Drips, check out this other Fool article. Looks like I've got more reading to do!

Lastly, Monday, March 31, is the LAST DAY to set up Suze's Save Yourself account at TD Ameritrade -- the savings account that gives you $100 at the end of March 2009 if you commit to socking away $50 for 12 straight months. I signed up on March 12, and I've already earned a little money. My $50 investment is now up to $50.07.

Steely Jim Cramer at Penn State

2008-03-26T23:39:00.004-04:00

I just watched the 11 p.m. rerun of Mad Money's visit to Penn State today. I hoped to learn a few things I could apply to my economic stimulus plan. I was stunned to hear Jim talk about a steel industry renaissance.

RENAISSANCE? If I had a nickel for every time I heard someone in Pittsburgh lament that life hasn't been the same since the steel industry died, I'd be blogging about investing more than $600!

And now you're telling me it's a viable stock?

Seriously. Why do kids leave the state immediately after graduation? Poor economy thanks to dying steel industry. Why is Ambridge like that? Dying steel town.

Apparently the weak U.S. dollar makes American steel companies more attractive to folks here and around the world. The companies Jim mentioned were Pittsburgh-based U.S. Steel (helps to have U.S. Steel CEO John Surma on the program; Surma is a Penn State product to boot.), AK Steel (corporate office is in Ohio) and Nucor (based in Charlotte, N.C. I was just there!). Incidentally, I do like how Nucor tabulates tons of recycled scrap this year on its site.

Those Penn Staters really knew their stuff about what to buy and sell. I was concerned when Jim pressed them, but the kids did all right talking up Nike and EXC with the exception of the girl who hearts Allergan. Allergan's products are Botox and the Lap Band. I won't rule out the Lap Band but I am soooo not a fan of injecting stuff into my face.

Also, I find Jim's antics mildly entertaining. But the Boo-yah! has got to go. It's sooooo dated! Stuart Scott called from the late 90s. I'm pretty sure he doesn't even want his catch phrase back. Here's the Mad Money Lightning Round OT from PSU.

Last 5 Days to Save!

2008-03-26T14:03:00.006-04:00

The headline of this post is a little something I learned from managing ads in Hecht's advertising department: Remind the customer how many days left in an event and use an exclamation point. (I remember being told that anything more than 5 days does not create a sense of urgency. Thanks LR and T.S.!)

Anyway, there's only 5 days left to sign up for the Suze Orman/TD Ameritrade Save Yourself program! Suze has a countdown on her website too. See my post earlier this month about the plan. Also, I called TD Ameritrade today and the rep confirmed I can use the account for stock trading as well as savings (and still get the $100 bonus at the end of a year of continuous electronic deposits) as long as I DON'T withdraw the $. Buying a stock through them qualifies the $ spent on that stock as part of my Ameritrade assets.

I'm looking forward to Jim Cramer's visit to Penn State tonight. I'll be there in spirit but watch it on CNBC. Word is the release form folks have to sign to get into the event are pretty extensive. In "Cramerica," no one is allowed to trade during the on-campus show.

WE ARE ... hosting Jim Cramer!

2008-03-25T15:23:00.008-04:00

Love him or have to jam plugs in your ears just to tolerate his high-energy antics, Jim Cramer is coming to town. The CNBC investing guru's campus tour docks at Penn State Wednesday, March 26.

That's only 2 1/2 hours from where I live in Pittsburgh. In case I can't make the drive, I hope to post a dispatch here on My Economic Stimulus from my self-proclaimed cub reporter who hopes to hear the squawking first hand. I'm sure he'll talk about what's hot and not these days but I wonder if he'll touch on how to invest a small windfall, like say, my $600.

The market seems to be a tricky place to work these days. And this guy oft gets criticized for inaccurate predictions. Or so Gawker.com reminded me just now. The fact is ... this guy has plenty of dough so he's being doing enough things right over the years to forgive his thoughts on Bear Stearns.

Maybe he's making all his cash from publishing. The guy has more than 10 books to his credit! His show has aired on CNBC for 3 years. And if he gives loud, crazy, arm-waving advice to Penn State's faithful Wednesday that's less than fruitful, there is this one caveat: He's a Harvard alum. If only he went to Penn State like me and my scribe or Brown like JoePa.

Inspiration for retirement

2008-03-24T23:52:00.006-04:00

I'm not ready to retire yet.

Wow. I had to reread that just now. Sounds crazy but it's true. I feel I have more to contribute to my world, my family and my savings account before hanging up my business casual duds for good.

So mini vacations like the one I just enjoyed in Charleston are quite frankly research for where I plan to retire in a couple decades. Or at least where I plan to purchase one of my many homes. That's why I photographed this trash can. Many cans like this one dotted the beach at Isle of Palms (east of Charleston) where we stayed. I hope to live somewhere someday that's so beautiful even the trash cans are this whimsical.

So how much $ do I need to retire so I'm not living out of this trash can? I know it's more than my $600. Yet another driving force behind my economic stimulus. Here's a quickie "simple" retirement calculator. Heed the warning to check with your accountant.

Can y'all keep a secret?

2008-03-23T23:44:00.017-04:00

Just got back from a fun, long weekend in the Carolinas. Can y'all keep a secret? Reading a how-to book about changing the way you manage your money WHILST ON VACATION is H-A-A-A-RD, y'all! Especially when there's no internet access.

Don't get me wrong, I had a lovely time with friends and family in Charlotte and Charleston, especially upon hearing Pittsburgh got snow this weekend. We toured the beaches at Isle of Palms, the bars and restaurants of Sullivan's Island and Charleston and the historic homes, churches and graveyards of Charleston. Also did a little geocaching and picture-taking. I'm posting a few shots here.

But on flights from Pittsburgh to Newark, the delay in Newark when Continental wouldn't let us board our flight to Charlotte that was still stalled at the gate and already had our bags (Thanks Continental! You're awesome.), the flight 3 hours later to Charlotte and then the flights home to Cleveland and Pittsburgh Sunday night, I read a lot of great ideas that I couldn't act upon. For those of us who suffer from analysis paralysis, it's a slippery slope.

I'm halfway through Suze Orman's Women and Money. Suze has inserted tips on these pages (noted with a pyramid) to check her website resources center for more info. She's done this for everything from figuring how much $ you save now will become a little and a lot more in 5, 10 and 20 years to calculating your FICO score. My what?

I plan to reread sections this week so my economic stimulus will be acted upon. I was just about to get into stocks and the diversification principle when my Continental Connection (30-seater if that) bounced down on the final runway 2 hours ago.

To break up the serious stuff, I also paged through the 3/24/08 Newsweek issue and found the article on Max Levchin very interesting. He's one of the minds behind PayPal. There's a shot of this guy with 2 dogs. To boot, the article mentions a fancy investing term, IPO. Check him out.

Bachelor #2 and then some

2008-03-18T23:31:00.013-04:00

Back on March 11, I mentioned the cost per trade of E*Trade (12.99 + 75 cents). Now it's time to interview the other bachelors.

This information is critical to my plan, which from the start has been to make purchasing stocks the biggest part of my economic stimulus. I need to be ready to jump into the stock market by the time my $600 arrives. To this end, I need to learn more about the other companies.

TD Ameritrade charges 9.99 per trade (no minimum balance)
Charles Schwab charges 12.95 per trade (for balance under $1 million. That's me!)
Zecco charges 4.95 per trade (for balance under $2,500)
Scottrade charges $7 per trade but is a bit confusing. (Good news is you only need $500 to start an account -- first company that states a minimum that low.)
Fidelity charges 19.95 per trade (can drop to 12.95 and $8 if assets top $25K)

Zecco's graphics look a bit like E*Trade. Instead of green, it uses pink. How pretty! Are they targeting women? Too bad it's not pink and green! I bet it's popular with the Lilly Pulitzer crowd! If those preppies have even heard of it. I must learn more!

Not sure I should even consider the cheapest trading company, let alone one I've never heard of. Who is Zecco?

*****

Also of note this week, if you signed up to get your 2007 tax return via direct deposit, you're likely to get your economic stimulus disbursement quicker. Check it out. Of course, we're still looking at a May delivery date.

When you're hot, you're ... on SNL

2008-03-17T21:42:00.013-04:00

When I bought a Honda Pilot, I saw Honda Pilots everywhere. Now that I'm seeking saving sages, Suze Orman is everwhere.

Saturday Night Live's Kristen Wiig did a solid impression of Suze over the weekend. I actually watched SNL live the very same day I was up at 7 a.m. and downtown by 8:30 a.m. to watch Pittsburgh's St. Patrick's Day parade. The nap, and NOT drinking my weight in Guinness, helped. Here are my two favorite lines:

1. If you don't hold on to the money you have now,

life is going to pull your pants down
and punch you in the money bags.

2. Sounds good so far but I think I'm about to smell

a big, financial garlic burp.

Check out the clip:
http://www.dailymotion.com/video/x4r4mf_snl-suze-orman-show_fun

I'm not one of Suze's soldiers yet but I am up to chapter 4 in her book, Women and Money. The first few chapters are pretty basic and honestly, tempting to skip. She explains that in order to save, you need to know what and who you're saving for. It's the typical self-help crap about taking yourself seriously and articulating your goals. She also encourages you to get to know your finances, even if you have a man around to do that now, you never know when you're the one left holding the money bags. Or getting kicked in them.

I've resisted skipping ahead to chapter 6, titled the Save Yourself Plan, thus far. So what the heck? I wrote down a few goals on a Post-It note. It's stuck somewhere in chapter 3. I don't feel like the goals are attainable yet with $600 but my economic stimulus has to start somewhere.

Also related to Suze, I got a package in the mail from TD Ameritrade today, congratulating me on opening my Save Yourself Account. I did this on Suze's advice. I received a nice little booklet that reviews everything I learned on the TD Ameritrade website when I signed up last week for the account to extend my economic stimulus into 2009. You still have time to sign up for the account that gives you $100 at the end of March 2009. Deadline is 3/31/08.

Too rich for my (dog's) blood?

2008-03-14T18:51:00.007-04:00

This is going to be harder than I thought.

I dorked out recently and subscribed to Smart Money Magazine. I did this for two reasons. First, I knew 2008 was the year of my economic stimulus and that I was going to actively invest. Second, I got an Amazon gift certificate from Cam (thanks Cammy!) and figured I already read people.com so much that I don't need to scan the rag in doctor's offices anymore.

There's an article in Smart Money's April issue titled Oasis of Growth that highlights a few good stocks to pick during a recession. The one that appealed to me most was Idexx Laboratories (IDXX). Like any animal lover, I would scrounge for loose change under sofa cushions everywhere to save my baby boy Sherman's life. (That's my "little" guy running with his cousin, Paulie.) Idexx is a medical equipment company that caters to vets (MRI equipment, blood work machines, etc.) and runs its own labs. The latter made me laugh because I run my own lab too (see picture!), albeit a black lab.

Anyway, the sad part? IDXX closed at $49.80 a share today. So with my $600, I could get a measly 12. Twelve shares is not the portfolio diversification I had in mind. Perhaps I should be a bit more frugal for starters.

The thing is I heard a while back that you should invest in something you care about. Not sure of this tidbit's source. Adam thinks it was Warren Buffett. I'm not up on my multi-billionaires so maybe. But I found something along that line from Peter Lynch as quoted in this Investopedia article:

"If you stay half-alert, you can pick
the spectacular performers right from
your place of business or out of the neighborhood
shopping mall, and long before Wall Street
discovers them."

Lynch's picks from the article are PepsiCo, Columbia and Whirlpool. Hey ... I have a Columbia fleece. Maybe I can get more out it than the warmth I count on in this cold house we're renting. Columbia fell 1.78 to 42.14 today ...

What's in your wallet (and where's it going next week)?

2008-03-12T21:40:00.009-04:00

While researching where to invest my economic stimulus dough (and not exercising today), I stumbled across this poll. You too can vote and see what other folks are doing with their $600 windfall. I'd love for you to comment on my blog about your own plans. Just click the comment link at the end of this post.

Also, even though this $600 is "free" money, I'm giving myself a backup plan. So to ensure I have another $600 to play with next year, I signed up for Suze Orman's Save Yourself Plan. I'm new to Suze's revolution and have yet to read any of her books. Last week, I heard her talk about the savings plan on what must have been the 13th hour of the Today Show that day. It's through TD Ameritrade. Which reminds me ... I need to check out TD Ameritrade's trading plan and compare it to E*TRADE. I'll try to post some quick thoughts tomorrow.

By the way, I highly recommend the savings plan if you can stand to monitor another electronic bank account. I set it up in about 10 minutes. If you open the account before 3/31/08, deposit the minimum of $50 and contribute at least $50 monthly through March 2009, you'll get the 2.75% interest PLUS $100 as long as you don't withdraw before 3/09. Yes, E*TRADE savings has a higher savings rate but nothing that compares to $100+ on a measly $6-hundo. Thanks Suze!

P.S. to Mom: No need to pick up Suze's latest book, Women and Money, for my half-birthday, which is Thursday. I bought it over the weekend.

E*TRADE (or Bachelor #1)

2008-03-11T00:20:00.011-04:00

I realize there are many ways to grow my $600. I've tried 401ks and Roth IRAs and ignored more ESOP opportunities than I care to admit. So to pick an investment tool and proceed with my economic stimulus, I turn to a BFF from a previous life, Mae West (pictured):

"When choosing between two evils, I always like to try the one I've never tried before."

To be honest, I always planned to buy stocks (and maybe bonds) with most of my windfall. Shortsighted maybe. But stocks are the sexier evil. And with all the hubbub about people losing $ on stocks these days, I'm hoping it's a buyer's market by now and whatever I pick grows my ca$h tout de suite. Even if I pick something stupid (er, poorly researched).

E*TRADE has 2 stock-trading options. And since my $600 is far less than the $50,000+ tier, the price per trade here is $12.99 + 75 cents.

More "shopping" for rates later this week. Shopping is fun! I think Mae would agree. I think she would approve of my research too ... that is what she meant by this gem, right?

"It's better to be looked over than be overlooked."

Here goes ...

2008-03-09T21:05:00.008-04:00

If life is what happens when you're making other plans, then this blog is what happens when those plans fall through.

And so begins my first blog entry.

I am a goal-oriented gal living north of Pittsburgh. Since I am still striving toward some 2007 goals, I started this blog to keep me on point for 2008. This blog will track what I do with my $600 portion of the Economic Stimulus Act of 2008. Rather than spending it all at once to stimulate the economy (Sorry George Bush!), I've got a better idea.

Treating this 6-hundo as a windfall, I'm going to investigate where and how to invest it and double my money. Aim higher? Triple it then. We'll see. It's been a while since I really paid attention to my finances. So first and foremost, I hope to learn about the ups and downs of the market, risk and patience.

Perfect timing too because the Economic Stimulus Payment Notice arrived on Saturday, March 8. The IRS is pleased to inform me my windfall is coming ... in May.