Besides, just because prices are low does not mean that you can afford them. Never buy something early "Because it's a great deal". Only buy when you are ready, then look for a good deal.
Kind of beside the point of these bonuses in particular, but the fact is that Incentive plans always go awry. As soon as you tie your bonus to a metric that's supposed to measure performance you're going to get people doing the wrong thing--in particular, doing whatever it takes to get the bonus instead of what needs to be done.
If you have a pile of money, you don't have an either/or situation. Take a few k and travel a bit. Don't have that baby until you are ready to be seriously tied down for the next several years, but do save up for the little blighter. Home ownership is overrated -- it's as expensive as renting, you have little flexibility, plus you have to do all the maintenance. But still, owning your own home is the American Compulsion, so continue to save for that as well. And give yourself a few k to play with in the market. You will make some money, lose some money, and be well entertained without suffering horrendous losses.
Actually, I agree 100% with all the letter rankings you gave to each of the possible scenarios. this is absolutely the best time to buy a home and i'd hate to see you miss that opportunity if you delayed a few years and then home prices began rising again.
First, I always donate to the local anti-cruelty society. That's where almost all of my donation money goes because I feel it's better to make one bigger contribution to an organization than lots of smaller ones elsewhere. They gave me my adorable cat, and I constantly see articles of them crusading against puppy mills, dogfighting, and adopting out wonderful pets.
Second, do Girl Scout cookies count? I know plenty of older troops would love donations to keep doing what they're doing.
Finally - Brigid, what city is your Emergency Fund in? I would love to learn more about it.
People seem to be missing the bigger issue. The tax code is now being used to punish people without giving them the benefit of a fair trial. The bonuses may be considered by some as unethical, I'm not going to waste time debating that. Has the law, as it is currently written, been broken? I don't see indictments, trials or convictions. We just skipped the whole process and went straight to punishment. There are AIG employees receiving death threats and having their homes swarmed by angry protesters. Many of them were not the recipients of any bonuses. A Federally funded organization (i.e. supported by YOUR tax money) is providing tour buses to these people's homes, doing every thing it can to throw more fuel into this fire. Not to mention that it was CONGRESS who authorized these bonuses, as a provision of the bail-out funds for the company.
Where is the public outrage against congress? Why aren't their homes being stormed by angry mobs? We didn't vote for any AIG members, but the elected officials who continue to be the beneficiaries of your tax money have betrayed to you. If you're against the bonuses, they have played an equal part in robbing you. We're throwing away the constitution to squelch an emotional need to act, even when the full facts aren't available to the public.
The Constitution is NOT a series of laws the government came up with to govern us. Rather it is the restrictions WE as citizens have put on that government to ensure our freedom. It is the line they can not cross. A line that is being pushed further and further back at our expense. We as a people have the right and the responsibility to assemble and speak out against a government who crosses that line. That right exists in writing because of the implied responsibility. We have the right to bear arms, as we are expected to take up those arms against such injustice and remove any power that threatens our freedoms.
The current government is dividing us. Republican vs Democrat. Liberal vs Conservative. Rich vs Working class. Sides are chosen and we're pitted against each other. Then they throw us some little shred of controversy and lets us squabble over it while they continue to seize power, safely hidden by the meaningless distractions they've created. AIG is done, these executives, be they right or wrong, pose no further threat to us. And still the angry mob gathers outside their homes. Congress will ensure there's always another scandal and they'll spend billions of dollars of your money to distract us. Anything they can do to keep the torches and pitchforks off of their own lawns, the threatening letters out of their mail, anything to avoid accountability for their actions.
Without freedom, there is no prosparity, economic or otherwise. We're losing our country because people are so easily lead into the fits of outrage. They'll piss away 230 years of hard work that went into building the country, just so they can feel better seeing one group punished. Are you a Republican or a Democrat? Union member no non-union? Upper-class income, middle-class, or welfare or disability recipient? Are you fresh out of college looking to enter the workforce, or are you trying to keep the job you've had for 25+ years? What is your race? Religion? Odds are YOU are a part of at least a dozen groups that someone lobbying Washington has a problem with. This time it was executives, but sooner or later the focus will change. We're all the target eventually. Maybe some are deserving targets, others may not be. But when your time comes, right or wrong is rarely a factor. What's important is the conduct of those who point their finger at you. Will you be able to demand legal representation, or will an angry mob just arrive on your doorstep? If we continue to set such a dangerous precedent and allow this conduct now, it's only a matter of time until it's used against you group.
I would spend the money to mail out millions of copies of the US constitution. The government will make their end on the deal in the form of postage, and a few people might actually wake up and realize what's happening here.
I'll tip my hat to that organization. Both my husband and my father are active in that organization. They have been all over the country assisting with base needs for those after a disaster. So much work still to be done in areas hit hardest by Katrina, last year's tornadoes, and current flooding situations. The focus has always been on helping -- no strings attached!
At a time when 5% of the people control 85% of the wealth, (and of course power too), it's probably the right thing to try... to scratch back at least a little of what we've lost.
It just puts a sickening feeling into the psyche, to realize what has happened with the concentration of wealth that has now brought our nation to near ruin. Even worse, to see that the people who, without conscience, greedily changed the rules and now, have ensured a dynastic machine that is no longer subject to moral laws.
As to the overall breadth of the fiscal problems, I believe we've only scratched the surface. My own list of the "undiscovered" losses includes:
Public and Private Pension Funds (Broken PBGF)
Endowment Funds
Insurance company assets
And most importantly the CAFR's from over 80,000 municipalities which list an asset total which is unknown, but estimated to be over sixty trillion dollars. If, as we might expect, the losses that exist in the bank/broker financial sector are also reflected in the Municipal Reports, then the state of our economy is even worse than the Federal Government estimates.
Each time we look at a "worst case scenario", up pops another, even "worser" problem.
Stepping back to reflect on the "new" Public/Private attempt to liquify the market, it looks to me as if we're just building another "bubble".
We are pretty strapped right now, but donate in a different way. Most recently, we donated a weekend of our time to be on the staff at a local Camp Erin, which is a child bereavement camp. We really got alot out of the experience, and I think that the kids that were there did as well. It was a bit tough to learn about some of their losses though.
Having more cash around then you know what to do with is one heck of a great problem, so kudos for getting "stuck" in such a predicament. My vote, especially if you've got enough for 20% down on the home price you're thinking of, is do a little of the things you're thinking about. Money isn't just for saving. You've got to live a little. If you have a dream of going to Argentina, Alaska or wherever and you can afford it without jeopardizing your home ownership plans, do it. In this economy, you're likely to score some great deals (we just got non-stop air tickets to the Caribbean from New England for less than $300) and you'll have a memory for the rest of your life. Trust me, it'll come in useful during those 3AM feedings and diaper changes.
During these difficult economic times, library funding is being reduced, branches closed and hours cut back. All this right at the time where people need them most. After all,where else can you get free stuff, help doing resumes and folks to entertain your kids?
Consider donating to your local branch, or volunteer.
I am 53 and fortunate enugh to have traveled some. I have been to Canada, Mexico and Uzbekistan. Physical problems are now cropping up and my list of things I would have love to see before dying is way too long.
Life is so short and the previous post about "maybe we will be attacked" etc is absurd.
Oh how I wish I had seen every country on this planet!!
The most sound financial advice you can get for your cash is here: www.daveramsey.com
Just follow his "baby steps" and get out of debt, then save your cash for 100% down on your house. That'll keep you feeling secure for decades to come.
I love ING Direct and use it for savings and checking. I really really really really wish they would work with mint.com but worse things have happened. My birthday was in January and I do not remember getting an e-mail from them, I probably just missed it.
I tried the coupon and I keep getting "The entered coupon is for ING DIRECT customers.Please enter your Customer Number below." even with my customer number entered below. Oh well, wishful thinking.
I really like it that you included local charities as a category. My city is fortunate to have an Emergency Fund, funded entirely by donations, to help local residents in need. I work for the mayor, and administering the fund is part of my regular duties (i.e. there is no overhead). Because the only restriction is that the recipient must be a resident of our city, the fund is flexible enough to help those who may not fit the usual categories—which is happening more and more often lately. We also have two other funds that are administered by our local Red Cross, and I work closely with that fund administrator to make sure we are using the money efficiently. Our goal is always to get the family back on their feet and into a sustainable situation so they won't be back the next month.
If you would like to make a large donation to a single cause, you might investigate whether your city has such a fund and if not, offer to start it. None of our neighboring cities have funds like this, and it breaks my heart to refuse aid to someone because of where they live (although legally, I have no choice).
One immediate benefit to the fund is that most of the landlords around here only have one or two rental units, and they use the rent to pay the mortgage, so by making sure that rents are paid in full, we are helping keep the landlords in good financial health as well.
Besides, just because prices are low does not mean that you can afford them. Never buy something early "Because it's a great deal". Only buy when you are ready, then look for a good deal.
Thanks,
Nate
Hi there,
Anyway, Hope all of people purchase the music and other products with real money if they real like them. And hope the products do entertain you.
Here comes nice music, Hope you'd like it:
http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewAlbum?id=306471500...
Kind of beside the point of these bonuses in particular, but the fact is that Incentive plans always go awry. As soon as you tie your bonus to a metric that's supposed to measure performance you're going to get people doing the wrong thing--in particular, doing whatever it takes to get the bonus instead of what needs to be done.
Please Read "The Intelligent Investor" Benjamin Graham / Commented by Warren Buffet.
He talks about a 25% Stock / 75% Bonds -> 75% stock / 25% bonds.
One of the best books to read if your thinking of investing. (Be VERY careful about this recent 20% move up.)
You might consider Learning "Active Speculation" along the lines of your "F" plan with a very small sum.
(I'v been studying the markets some 6 months now, and opened a 500$ account to trade.)
Checkout EvilSpeculator and SlopeOfHope
(I'm playing High-Risk / High-Reward (Options), that's why the 500$ account works. THIS IS NOT FOR YOU! )
If you have a pile of money, you don't have an either/or situation. Take a few k and travel a bit. Don't have that baby until you are ready to be seriously tied down for the next several years, but do save up for the little blighter. Home ownership is overrated -- it's as expensive as renting, you have little flexibility, plus you have to do all the maintenance. But still, owning your own home is the American Compulsion, so continue to save for that as well. And give yourself a few k to play with in the market. You will make some money, lose some money, and be well entertained without suffering horrendous losses.
Actually, I agree 100% with all the letter rankings you gave to each of the possible scenarios. this is absolutely the best time to buy a home and i'd hate to see you miss that opportunity if you delayed a few years and then home prices began rising again.
That being said, travel is awfully alluring.
Good luck!
Hello!
First, I always donate to the local anti-cruelty society. That's where almost all of my donation money goes because I feel it's better to make one bigger contribution to an organization than lots of smaller ones elsewhere. They gave me my adorable cat, and I constantly see articles of them crusading against puppy mills, dogfighting, and adopting out wonderful pets.
Second, do Girl Scout cookies count? I know plenty of older troops would love donations to keep doing what they're doing.
Finally - Brigid, what city is your Emergency Fund in? I would love to learn more about it.
"I have ever deemed it more honorable and more profitable, too, to set a good example than to follow a bad one."
-- Thomas Jefferson
People seem to be missing the bigger issue. The tax code is now being used to punish people without giving them the benefit of a fair trial. The bonuses may be considered by some as unethical, I'm not going to waste time debating that. Has the law, as it is currently written, been broken? I don't see indictments, trials or convictions. We just skipped the whole process and went straight to punishment. There are AIG employees receiving death threats and having their homes swarmed by angry protesters. Many of them were not the recipients of any bonuses. A Federally funded organization (i.e. supported by YOUR tax money) is providing tour buses to these people's homes, doing every thing it can to throw more fuel into this fire. Not to mention that it was CONGRESS who authorized these bonuses, as a provision of the bail-out funds for the company.
Where is the public outrage against congress? Why aren't their homes being stormed by angry mobs? We didn't vote for any AIG members, but the elected officials who continue to be the beneficiaries of your tax money have betrayed to you. If you're against the bonuses, they have played an equal part in robbing you. We're throwing away the constitution to squelch an emotional need to act, even when the full facts aren't available to the public.
The Constitution is NOT a series of laws the government came up with to govern us. Rather it is the restrictions WE as citizens have put on that government to ensure our freedom. It is the line they can not cross. A line that is being pushed further and further back at our expense. We as a people have the right and the responsibility to assemble and speak out against a government who crosses that line. That right exists in writing because of the implied responsibility. We have the right to bear arms, as we are expected to take up those arms against such injustice and remove any power that threatens our freedoms.
The current government is dividing us. Republican vs Democrat. Liberal vs Conservative. Rich vs Working class. Sides are chosen and we're pitted against each other. Then they throw us some little shred of controversy and lets us squabble over it while they continue to seize power, safely hidden by the meaningless distractions they've created. AIG is done, these executives, be they right or wrong, pose no further threat to us. And still the angry mob gathers outside their homes. Congress will ensure there's always another scandal and they'll spend billions of dollars of your money to distract us. Anything they can do to keep the torches and pitchforks off of their own lawns, the threatening letters out of their mail, anything to avoid accountability for their actions.
Without freedom, there is no prosparity, economic or otherwise. We're losing our country because people are so easily lead into the fits of outrage. They'll piss away 230 years of hard work that went into building the country, just so they can feel better seeing one group punished. Are you a Republican or a Democrat? Union member no non-union? Upper-class income, middle-class, or welfare or disability recipient? Are you fresh out of college looking to enter the workforce, or are you trying to keep the job you've had for 25+ years? What is your race? Religion? Odds are YOU are a part of at least a dozen groups that someone lobbying Washington has a problem with. This time it was executives, but sooner or later the focus will change. We're all the target eventually. Maybe some are deserving targets, others may not be. But when your time comes, right or wrong is rarely a factor. What's important is the conduct of those who point their finger at you. Will you be able to demand legal representation, or will an angry mob just arrive on your doorstep? If we continue to set such a dangerous precedent and allow this conduct now, it's only a matter of time until it's used against you group.
I would spend the money to mail out millions of copies of the US constitution. The government will make their end on the deal in the form of postage, and a few people might actually wake up and realize what's happening here.
I'll tip my hat to that organization. Both my husband and my father are active in that organization. They have been all over the country assisting with base needs for those after a disaster. So much work still to be done in areas hit hardest by Katrina, last year's tornadoes, and current flooding situations. The focus has always been on helping -- no strings attached!
Linsey Knerl
At a time when 5% of the people control 85% of the wealth, (and of course power too), it's probably the right thing to try... to scratch back at least a little of what we've lost.
It just puts a sickening feeling into the psyche, to realize what has happened with the concentration of wealth that has now brought our nation to near ruin. Even worse, to see that the people who, without conscience, greedily changed the rules and now, have ensured a dynastic machine that is no longer subject to moral laws.
As to the overall breadth of the fiscal problems, I believe we've only scratched the surface. My own list of the "undiscovered" losses includes:
Public and Private Pension Funds (Broken PBGF)
Endowment Funds
Insurance company assets
And most importantly the CAFR's from over 80,000 municipalities which list an asset total which is unknown, but estimated to be over sixty trillion dollars. If, as we might expect, the losses that exist in the bank/broker financial sector are also reflected in the Municipal Reports, then the state of our economy is even worse than the Federal Government estimates.
Each time we look at a "worst case scenario", up pops another, even "worser" problem.
Stepping back to reflect on the "new" Public/Private attempt to liquify the market, it looks to me as if we're just building another "bubble".
We are pretty strapped right now, but donate in a different way. Most recently, we donated a weekend of our time to be on the staff at a local Camp Erin, which is a child bereavement camp. We really got alot out of the experience, and I think that the kids that were there did as well. It was a bit tough to learn about some of their losses though.
Having more cash around then you know what to do with is one heck of a great problem, so kudos for getting "stuck" in such a predicament. My vote, especially if you've got enough for 20% down on the home price you're thinking of, is do a little of the things you're thinking about. Money isn't just for saving. You've got to live a little. If you have a dream of going to Argentina, Alaska or wherever and you can afford it without jeopardizing your home ownership plans, do it. In this economy, you're likely to score some great deals (we just got non-stop air tickets to the Caribbean from New England for less than $300) and you'll have a memory for the rest of your life. Trust me, it'll come in useful during those 3AM feedings and diaper changes.
During these difficult economic times, library funding is being reduced, branches closed and hours cut back. All this right at the time where people need them most. After all,where else can you get free stuff, help doing resumes and folks to entertain your kids?
Consider donating to your local branch, or volunteer.
I am 53 and fortunate enugh to have traveled some. I have been to Canada, Mexico and Uzbekistan. Physical problems are now cropping up and my list of things I would have love to see before dying is way too long.
Life is so short and the previous post about "maybe we will be attacked" etc is absurd.
Oh how I wish I had seen every country on this planet!!
The most sound financial advice you can get for your cash is here: www.daveramsey.com
Just follow his "baby steps" and get out of debt, then save your cash for 100% down on your house. That'll keep you feeling secure for decades to come.
Should be a Dem Donkey up there with all the AIG ties to Dodd, Obama and such. Not that the Elephant shouldn't be there either (McCain etc. AIG cash).
Small operating expense, big humanitarian relief.
Great list on the other nine Kudos!
Whatcha think about #10 Catherine?
These guys have some nerve-- they should all be drawn and quartered . . .
As for the charities, these guys should never have gotten the money in the first place!
They see you have some money saved and they decided to tempt the consumer in you to part with it! The American Way in action! Unbelievable!
If you are looking to buy a home soon-- find a a high interest money market account and park it.
Also, look to see if you are bleeding cash through a hih rate loan or credit card and resolve the leak-- otherwise go back to recommendation #1.
Good luck.
I love ING Direct and use it for savings and checking. I really really really really wish they would work with mint.com but worse things have happened. My birthday was in January and I do not remember getting an e-mail from them, I probably just missed it.
I tried the coupon and I keep getting "The entered coupon is for ING DIRECT customers.Please enter your Customer Number below." even with my customer number entered below. Oh well, wishful thinking.
Cheers!
I really like it that you included local charities as a category. My city is fortunate to have an Emergency Fund, funded entirely by donations, to help local residents in need. I work for the mayor, and administering the fund is part of my regular duties (i.e. there is no overhead). Because the only restriction is that the recipient must be a resident of our city, the fund is flexible enough to help those who may not fit the usual categories—which is happening more and more often lately. We also have two other funds that are administered by our local Red Cross, and I work closely with that fund administrator to make sure we are using the money efficiently. Our goal is always to get the family back on their feet and into a sustainable situation so they won't be back the next month.
If you would like to make a large donation to a single cause, you might investigate whether your city has such a fund and if not, offer to start it. None of our neighboring cities have funds like this, and it breaks my heart to refuse aid to someone because of where they live (although legally, I have no choice).
One immediate benefit to the fund is that most of the landlords around here only have one or two rental units, and they use the rent to pay the mortgage, so by making sure that rents are paid in full, we are helping keep the landlords in good financial health as well.
I wonder if some charities will refuse the money.