Covered Calls: Below is my covered call screen for technology stocks that will yield over 5% return for a Covered Call for March 2012 expiration.
Down 2.5 pounds in 4 days. Weight Watchers is working. I have been getting my cardio work outs in at my gym. I have been a member of Bally's Fitness for over 20 years. I hadn't been to Bally's in a while since I had my hip replacement back in October. Anyway, I go to Bally's and it turns out that they have been bought by LA Fitness. This is a good thing the LA Fitness clubs are all over the place and they are awesome.
Ok back to Weight Watchers, I have been doing good counting my points every day. Below is a list of the food that I ate today and the estimated points. Remember I get 29 points a day.
Breakfast
1 piece high fiber toast and peanut butter - 2 pts
2 oz of orange juice - 2 pts
3 prunes - 1 pt
1 cup bran flakes and 2% milk - 2 pts
Coffee with Equal and 2 % milk
Lunch
Turkey sandwich with cheese mayo and mustard - 5 pts (They key to sandwiches is picking a high fiber bread, my bread is huge and it is only 1 point per slice)
Apple - 1 pt
Banana - 2 pts
Split pea soup - 3 pts (I was upset when I found out the points on this, it was good but the points were to high, I can eat a hold can of Progresso Lite soup and it is only 1 pt for the can)
Fiber 1 bar - 2 pts
Weight Watchers Yogurt - 1 pt
Water
Dinner
5 oz of beef tips and gravy and 1 slice of bread - 6 pts (I estimated the meat points)
Veggies - 1 pt
Water
I still had 2 points left at the end of the day.
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my son really likes it as well. However, I have found two alternatives that smell just as good and are cheaper. The first one is the new (I think it is new) bar soap from Dove. To me the Dove Men + Care Deep Clean Body and Face Bar
smells just like Axe Shower Gel and last a long time and is earth friendly. Additionally, it is a Dove product so it doesn't dry out your skin. I also like the Suave For Men Body Wash
. Most of the time you can buy it for around $2 per bottle.
and lube up your garage door parts on a regular basis. One you will save on repairs and two the garage door is a lot quieter. The part that I ended up needing was just a little Genie door coupling and clip which is officially called the Genie 19863R Screw Drive Clip and Collar Screw Connectors
. It was only $5.95 so it ended up being an inexpensive repair.
How to calculate net worth, how do you compare to others
20 Ways to Save More Money
on 20 ways to save. Below is the article along with my comments.
I found and interesting article in the New Your Times called Tapping Into Homes Can Be Pitfall for the Elderly here is what the article said along with my comments.
Erika Baker was 67 years old, divorced and worried about her job when a saleswoman showed up at her door in late 2006. A reverse mortgage, the saleswoman explained, would give Ms. Baker instant access to hundreds of thousands of dollars tied up in the value of her home. Such a loan, typically available only to homeowners in their 60s and older, would not have to be repaid until Ms. Baker moved out, the saleswoman said. And if she never moved, the loan would be settled by selling her house after she died. “Your Home Pays You Cash!” read a brochure the saleswoman left behind.
I guess the first red flag is don't believe any sales person that shows up at your door. Also another caution is if this is your first offer as in any transaction such as a purchase or and investment you should get at least 2 and hopefully 3 offers.
Ms. Baker, who lives just outside San Diego, jumped at the offer, borrowing a little more than $200,000 through a company called Senior American Funding. Then the problems began. The saleswoman pressured her to put the proceeds of the loan into complex investments that put her money out of reach, Ms. Baker said. She received only about $33,000 in cash, far less than she needed for her final years. “I thought this was a safe way to make sure I’d never run out of money,” Ms. Baker said. “Then everything became so confusing. No matter where I turned for help, it seemed like things got worse.”
At this point the second red flag should have been waving frantically. She needed money not new investments. This started to smell like a scam very quickly.
As the United States has become an older nation, reverse mortgages have grown into a $20-billion-a-year industry, with elderly homeowners taking out more than 132,000 such loans in 2007, an increase of more than 270 percent from two years earlier. In surveys, many borrowers say reverse mortgages have improved their lives and provided money they needed for retirement.
For most people their home is their largest asset. I don't like to call it and investment because if you sell it you need to find somewhere else to live. However, it is worth something. However, most of us, especially with the recent ups and downs in the real estate business will not be able to depend on our home for a significant portion of our retirement.
But hundreds of people who have sought reverse mortgages — in lawsuits, surveys and conversations with elder-care advocates — have complained about high-pressure or unethical sales tactics they say steered them toward loans with very high fees. Some say they were tricked into putting proceeds of their loans into unprofitable investments, while sales agents pocketed rich commissions.
I feel sorry for people in these situations. You would think they would have an adult child or a friend that could review the contract with them to help them determine what they were getting it. In this case they should have consulted a real estate attorney to review the contract. I have trouble understanding terms and conditions and I would have hired and attorney for a few hundred dollars to review the contract and tell me what I am getting into.
“Every scam artist is getting into this business,” said Prescott Cole, an elder-care advocate who has worked with numerous reverse mortgage borrowers. “Because reverse mortgages are so complicated and give you money up front, years can pass before a senior realizes they’ve lost everything.”
Again focus on the term So complicated. That sounds like you so need a lawyer. Getting a lawyer involved first would have prevented the need for one later when you have to sue the company that offered you the reverse mortgage.
Reverse mortgage lenders and brokers dispute those accusations, noting that the loans are heavily regulated and have helped hundreds of thousands of people. “For a lot of elderly people, their only real asset is their house,” said Peter Bell, president of the National Reverse Mortgage Lenders Association, a trade group. “A reverse mortgage is one of the few ways someone can access wealth that’s otherwise out of reach, while still living in their house for as long as they want.”
They could also sell their house to an investor and rent it back from him. They could outright sell the house and move into an nice senior community. Lots of options you would hope. Again where is the family to help out with these decisions?
However, some borrowers find their wealth is still out of grasp, even after they have sought a reverse mortgage. For example, Senior American Funding, the company that sold Ms. Baker her loan, has been sued three times in the last 13 months by clients who said they were misled. (Two of those cases were settled out of court for undisclosed sums. The third, filed by Ms. Baker in California state court last month, is pending.) The company, which is licensed in 16 states, has originated mortgages worth more than $100 million since 2004. “We never pressure clients,” said one of the company’s founders, Matthew Copley. “We just try to make sure they know about their options.”
I don't know if I believe this, "we have never pressured clients".
However, a former sales agent, Hani Shenoda, and an agent who still works at the company who spoke on the condition of anonymity because of fear of retribution, said in interviews that managers at Senior American Funding encouraged them to pressure older homeowners into unwise loans and investments. The company disputes that assertion. On Tuesday, after being contacted by a reporter, Senior American Funding announced it would no longer sell combinations of loans and investments like the one Ms. Baker had bought. “When we make mistakes, we address them as responsibly as we can,” Mr. Copley added. Ms. Baker owned a home worth about $600,000 but was living paycheck to paycheck, teaching child-rearing skills to low-income mothers for about $400 a week, when she was told in 2006 that her job was ending.
We you see here is a problem right off the bat, a $600,000 home. Holy moly! The taxes alone on the house has to be more that she is bringing home with her $400 a week job. She should have sold the house long ago. What ever time in her life when she was able to afford that house is gone.
Months earlier, she had received a mailing from Senior American Funding, one of the hundreds of reverse mortgage companies that have emerged in the last several years. She scheduled an appointment with a saleswoman named Laurie Spencer. (Ms. Spencer no longer works at Senior American Funding, according to the company, and could not be located.) “This saleswoman was so friendly and personable,” Ms. Baker said. “It was like God had sent me a friend to tell me how to survive.” In the kitchen of the home, where Ms. Baker displays watercolors of dolphins and flowers she has painted, the saleswoman recommended a loan of $218,900, with a variable interest rate initially set at 6.57 percent.
Again what was the house worth? $600K and they were recommending $218K. I don't like the math.
Because reverse mortgages do not require borrowers to make immediate repayments, the interest charges are added to the debt every day, and the total amount owed grows over time. The saleswoman did not explain that within 10 years, Ms. Baker’s $218,900 loan could grow to as much as $400,000, Ms. Baker said. That debt would be paid by selling the house when she moved out or died.
The saleswoman also did not emphasize the high fees, Ms. Baker said. The loan’s fees cost her $17,100 — almost 8 percent of the total loan — which was paid out of the proceeds as soon as the loan closed.
To ensure that borrowers know such details, the federal government requires them to speak to an independent adviser before closing a reverse mortgage. “We make potential borrowers talk to a counselor to make sure they understand what they are doing,” said Renée Shadel, an investigator with the Washington state attorney general’s office. “These can be great loans for some people, but only if they understand them.”
But critics say these counseling sessions are often brief and unhelpful. Some elderly borrowers, for instance, said their sessions lasted only 10 minutes, rather than the 60 to 90 minutes most counselors say they need to explain the loans. Critics say some sessions are so brief because reverse mortgage companies are paying for the advice. One of the largest reverse mortgage counseling companies, Money Management International, often asks lenders to pay for providing advice to the lender’s clients, according to a company spokeswoman. Money Management International, which is a nonprofit company, received $900,000 from reverse lenders last year. By regulation, counselors may not charge clients, though they are allowed to seek support from lenders.
“Anytime anyone gives a counselor a donation, they expect a quid pro quo,” said Buz Zeman, a reverse mortgage counselor with Housing Options Provided for the Elderly, a nonprofit group financed by government grants. “The point of counseling is to make people consider other options. That’s difficult if you feel like your next paycheck relies on convincing someone to get the loan.”
A spokeswoman for Money Management International says it seeks payments from lenders because government grants do not cover costs. The group’s counselors educate clients only about how loans work and do not recommend whether to proceed, she said, adding that the average time a counselor spends with a client is 58 minutes.
“There is no quid pro quo relationship with lenders,” a Money Management International spokeswoman, Catherine Williams, said in an e-mail message, adding that clients receive the same advice whether a lender pays for the session or not. “Funding is not tied to the outcome of any case.”
Even when lenders do not pay for counseling, it can still prove unhelpful. Ms. Baker’s counseling session, which was provided by an agency that does not accept money from lenders, lasted only about a half hour, and she walked away from the conversation still confused, she said.
Then the saleswoman persuaded her to sign the loan forms.
After the reverse mortgage closed, Ms. Baker used the proceeds to pay off a $68,000 traditional mortgage on her home, and she put about $33,000 into various savings accounts.
The remaining $100,000 was used to purchase, at the saleswoman’s urging, two deferred annuities — complex contracts that offer monthly income in exchange for a large lump-sum payment. Those annuities prohibited Ms. Baker from gaining access to most of her funds for seven years unless she paid a stiff penalty.
Moreover, the annuities were likely to cost her money rather than pay her. Annuities are so complex that it is impossible to forecast precisely how much Ms. Baker will receive from them. However, based on recent payout data for similar products, she will probably earn about $520 a month from her annuities for the rest of her life. Ms. Baker’s mortgage debt is increasing by about $600 a month as the interest compounds on the money she used to purchase those annuities.
If Ms. Baker collected monthly income from her annuities for 10 years, she could receive $62,400. However, the debt she would owe over that period would likely increase by $79,000 to $300,000, depending on how her loan’s interest rate changed.
“Buying an annuity with the proceeds of a reverse mortgage is incredibly dangerous,” said Mr. Cole, a critic of reverse mortgages. Indeed, the practice is so troublesome that many annuity companies and states either tightly regulate or forbid it. The salespeople at Senior American Funding were richly rewarded for their sales: the company received about $8,750 in commissions from Ms. Baker’s annuities, and $7,200 for processing her reverse mortgage.
Last month, Ms. Baker sued Senior American Funding, accusing it of fraud and elder abuse.
Mr. Copley, the Senior American Funding co-founder, defended the company’s actions and said Ms. Baker consented to every transaction. However, Mr. Copley conceded that Ms. Baker was given documents with inaccurate numbers and that sales agents, including him, at the time did not fully understand the products they were selling her. “If we made mistakes, I’m sorry,” he said.
Other lenders have also been accused of pushing older homeowners into unwise deals.
A survey released last year by AARP, formerly known as the American Association of Retired Persons, of more than 1,500 reverse mortgage borrowers found that almost one in 10 were urged to buy other financial products, like annuities.
Lawsuits against reverse mortgage companies, including the nation’s largest, Financial Freedom Senior Funding, contend that those firms helped pressure older Americans into bad investments. In court filings, companies have denied those claims. “Financial Freedom is not involved in selling annuities, does not recommend annuities, and won’t even allow borrowers to use reverse mortgage proceeds to buy an annuity at closing,” said Joel Schiffman, the company’s general counsel. “We only pursue a reverse mortgage when it is in a senior’s best interest.”
Some regulators and lawmakers, however, have said that more safeguards are needed, including giving borrowers more information about alternatives to reverse mortgages, disclosing fees more clearly and providing more government money to counselors, so that they do not seek payments from lenders.
New laws governing reverse mortgages are under consideration in Congress, though lobbyists for some lenders are mounting strong opposition, Congressional staff members say.
For Ms. Baker, now 68, such safeguards would come too late. She says she wakes up in the night, terrified there will not be enough money for food, gas or anything else. To cut her grocery bill, she stopped buying meat and fresh vegetables. “Before, at least I knew my house was safe, and that no one would take that away from me,” she said. “Now, I don’t know if there is anything I can count on.”
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Did you rack up a big credit card debt in college? You have to remember that it takes a long time to Remove Negative Items from your Credit Report! One of my roommates had $5000 in credit card debt. Of course he also wore polo shirts
Did you know if you have $7000 in credit card debt at 25% interest rate you end up having an interest charge of $1750 per year! That $145 per month just in interest that doesn't even count the principle payments.
A few guidelines to remember and these don't just apply to college students.
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Related articles:
Thanks for visiting and feel free to leave a comment or idea. By the way I am running a little survey to get my readers opinion on what items I should write more about so please take the survey, it is over on the left hand side of the page. Also for related articles check out the tags below. You might find something usefull. If you enjoyed this post please Subscribe to Strategies for Life.
The second thing that I noticed was a lot more Starbucks coffee shops. And just like their counter parts in the U.S. they were packed. I always like to joke that Starbucks needs watercooled cash registers because they never stop ringing the cash register. I say Starbucks in China, Tokyo, in the train stations, heck they even have one in the Nissan Tech Center lobby in Japan. Amazing!
I picked up the book The Smartest Guys in the Room which is about the Rise and Fall of Enron. It is a fasinating book. It is really sort of amazing to me how many crooks they had in the company and the overall level of disfunctionality inside the company. It is very easy to read and super interesting. I highly recommend it.