January 2008


I just have to write a quick post about how proud I am of my husband! When I first met him, he had a credit score 597. In less than two years, we have turned than around into a nice shiny score of 732! That’s 135 point difference.

With time, some of his delinquent accounts have come off his record. He has been making steady on-time payments for the past 24 months, never late. I added him as an authorized user to some of my high credit limit cards. But what I excited me the most, as we were reviewing his credit report together, he said, ‘well with more of my debt paid off that means my debt-credit ratio has improved’. Ah, they can be taught!

It wasn’t until a recent episode of Suze Orman did I fully grasp the potential of IRA’s and the power of compound interest. When you sit down and work out the math it’s really quite amazing how simple steps we can take while we’re young, say, saving $100 a month, can turn into millions by the time we retire.

The Basics:

With Roth IRA’s you can deposit up to $4,000 per tax year. (5k starting in 2008 ) You don’t have to put in that much, it could be $25 a month or $100 a month, whatever you can afford. You put it in with after-tax dollars and it grows tax-free. So that when you pull the money out when you’re 59 1/2 (or later) you don’t owe capital gains taxes on all the interest you’ve earned. Any other regular investments you do have to pay taxes say, if you have stocks/investments outside of a Roth IRA account. (more…)

3 Major Tax Breaks announced for homeowners, and it’s about time!

1) PMI (Private Mortgage Insurance) is Tax Deductible

If you bought a house with less than 20% down, you’re required to pay PMI to protect the lender, since they went out on a limb to let you borrow the money. Typically, you pay $50-60 a month per every $100,000 of mortgage. If your income is under 100k, you are now able to deduct this amount from your taxable income. This PMI tax break was to expire in 2007 but has been extended until 2010.

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Part of the reason for my renewed interest in posting is that I received my Scottrade investment statements. I knew I should have been devoting an hour a week to company research, per Jim Cramer’s advice, but sadly, that also fell to the wayside while I was caught up in the joy of maintaining a home. Since my last post about my Coach (COH) stock investment, much has changed.

As I’ve shared before, I purchased COH at $43. I knew the stock market hadn’t been doing well since the sub-prime crisis however, my previous research about COH reassured me that Coach would be insulated from economic woes. Looks like we were all wrong. My latest statement indicated that COH has dropped 44% to $24!!! So I got back on the financial blogs, back on Google Finance and BloggingStocks.com

The articles I found were not pretty. Here’s some of the headlines flashing before my eyes:

October 23rd- Coach (COH) dives 10% on slack U.S. sales (more…)

Although I haven’t posted since October, this blog has still managed to draw about 20 views a week. So thank you to those finding my blog and I hope you enjoyed the articles, there are more to come. Being as advantageous as I was when I began this blog in September, I aimed to post each weekday. Now I’d like to resume the post, from its state of non-existence, to weekly posts.

As I stated on the About Me page, I completely dedicate myself to one task at a time. And recently, that clearly has been something other than blogging. For a past few months, apart from traveling to Europe, I have found myself wanting to be quite domesticated. However, I have a renewed motivation and will be getting back on track with a more reasonable posting goal. So stay tuned for interesting posts! I’m also leaning towards more financial posts than the health-related ones seen recently.

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