Links to Carnivals from November 23 - 29, 2010

Here are the links to the Carnivals in which My Wealth Builder participated from November 23 - 29, 2010:

The Wealth Builder Carnival #16

Carnival of Financial Planning #167

For some interesting articles from the blogosphere, check out these Carnivals and give the hosts some recognition for their hard work.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial or wealth building advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

The Wealth Builder Carnival #17

Welcome to seventeenth edition of The Wealth Builder Carnival. The purpose of this carnival is to collect articles from the blogosphere on building, preserving and keeping enough wealth for a comfortable retirement. For reference, I have tried to keep the carnival content tightly focused on wealth building and did not include submissions that were off topic.

For reading convenience, I have listed the posts with brief summaries, often by the author, and organized them into seven categories: Earning, Investing, Insuring and Protecting, Living Frugally, Retiring, Saving and Taxes.

And now onto the Carnival:

Insuring and Protecting

Protecting Your Wealth – Insure Against the Risk of Financial Disaster - "Insurance is an excellent way to protect against major negative events and the potential resulting financial disaster"

Investing

Higher Tax Rates And Performance Of Dividend Payers Versus Non Payers - "Tax rates in the U.S. are set to increase if Congress fails to act before year end. Higher taxes on dividends does not necessarily translate into the stocks of dividend payers underperforming the non payers. Allianz reviewed tax rates from 1972 to the present, identified nine distinct time 'regimes', and found dividend-paying stocks outperformed nondividend-paying stocks in all but one period: 1987 (see chart in article.)"

23 Dividend Stocks Paying More Cash - "When selecting income investments, the three most important questions to answer are : 1.) Is the investment increasing its dividend each year, 2.) Is the increase likely to continue into the future and 3.) Are you being compensated for the risk you are taking? When you answer yes to all three of the questions, you just might have found an excellent income investment."

The Dark Side of Real Estate Investing - "We often hear great success stories from successful real estate investors. However, we seldom hear from those individuals who failed as real estate investors and lost money as well. Real Estate investing can be a great way to create wealth, however, it can be a sure fire way to lose a lot of money fast! Find out some of the mistakes that differentiate the super successful investors from the not-so-lucky investors."

The Warren Buffetts Next Door - "Can you really beat the market simply by taking the time and effort to educate yourself on investing? A new book says you can -- and uses ten people who have done just that as support."

Discussing the investment case for Kinross Gold (K:TSX) with Bruce Campbell of Campbell & Lee Investment Management - "While many have argued that gold will continue to outperform going forward, there are equally as many who argue against an investment in gold , including the Oracle of Omaha. While there are valid points on either side of the argument it is you who has to judge on which side of the debate you fall. Having said that, if you happen to fall on the side that calls for an investment in gold, you’ll likely enjoy the following interview."

Choosing the Best CD for You - "A certificate of deposit can be a low risk part of any portfolio."

Living Frugally

10 Inexpensive Christmas Gifts Under $10 - "These inexpensive gifts would make great stocking stuffers."

How To Teach Your Kids To Budget - "How would you teach your kids how to budget? Do you think it's important?"

Retiring

When Should You Start Receiving Social Security Benefits? - "Choosing to delay receiving Social Security Benefits can increase the amount you receive. These tips can help you maximize your Social Security Benefits."

Saving

Health Savings Account Contribution Limits & Benefits - "Here are some considerations you should take into account before setting up a Health Savings Account. Is this tax-advantaged account worth having?"

Taxes

2010 Tax Brackets: What Is My Tax Bracket? - "Details about the current and historic U.S. federal income tax brackets."

That concludes this edition. Submit your blog article to the next edition of The Wealth Builder Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: the wealth builder carnival, blog carnival.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial, earning, insuring, investing, living, retiring, saving, tax, or wealth building advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

Making Progress an Hour at a Time

Over the past month, I've been trying to make progress against several large projects. The problem is that each project needs about 20 to 30 hours to complete and I usually don't have the motivation to do the project continuously for several days. My solution has been to work on the project each day for about an hour. My rationale is that I can work on anything for an hour.

This strategy has helped me make significant progress against a some of my projects. Here are the types of projects in which I found the strategy worked best.

Work is naturally spread out over time. The leaves in our yard fall over a two month period. I used to prefer waiting a week or two before starting to rake the leaves. That way I could minimize the number of times I needed to work on an area. This year, I decided to work on the leaves for about an hour each day. Often that meant working on only a limited section of the yard each time. However, by doing this, raking leaves never seemed to be a daunting task and noticeable progress was made each day.

Minimal set time. Several of our gardening projects require nearly zero set up time to do the work: trimming, fertilizing, weeding, and ground cover edging. I can work on these projects an hour at a time, fill up a garbage can, and make noticeable progress.

Reducing clutter in my home office and filing important records also falls into this category.

Annual routine tasks. Rather than wait until tax time to gather records and record the information, I've been taking about 1/2 hour a week to file records and put the information in a spreadsheet. While I will still need about 5-10 hours to complete my tax return, I won't need to spend 25-30 hours preparing.

Of course, this approach won't work for all my projects, especially those that require significant set up or clean up time. For example, when home or yard maintenance projects require an extension ladder, multiple tools, significant clean up or an additional helper, I prefer to work several hours at a time to minimize the proportion of preparation time.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

Composting All of our Leaves

Typically, we rake up 45 to 50 bags of leaves every fall. In most years, we put the bags of leaves out with our garbage. Last year, we decided to compost about half the leaves and saved some bags. However,since I wasn't composting correctly,barely any of the leaves had broken down by September of this year. After checking the Internet, I realized my mistake was trying to compost 100% leaves. A proper compost needed a higher level nitrogen source which grass clippings can provide at approximately at a 1:2-3 ratio of grass:leaves. Once I corrected the ratios, I was able to reduce about 20 bags of leaves to a small compost pile of 1/2 cubic yard (about the volume of two 45 gallon leaf bags).

Based on this experience, I believe we will be able to compost all of our leaves this year. We have started a compost pile with 1/3 of the collected leaves and grass clippings from October mowings. Since the internal temperature of the pile has reached 130 degrees, the composting process has already started. We have stored the remaining 2/3 of the leaves and will either add them as the compost pile reduces or save them for the spring when there are more grass clipping.

Hopefully, this process will work and enable us to compost all of our leaves on a annual basis.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial or gardening advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

Inflation's Back

Secret Walmart Survey Shows Inflation Already Here at CNBC.com reports that a pricing survey shows an annualized inflation rate of 4% for the goods evaluated. This survey is probably no surprise to the average American who purchases these items.

After absorbing increases the past two years, it seems more manufacturers are willing to pass along raw material cost increases to consumers. I've already seen price increases for several items I regularly purchase.


Interestingly, the CPI index and bond interest rates still show little to no sign of inflation. Hopefully, the return of inflation seen at Walmart will soon be reflected in those areas soon.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.


Copyright © 2010 Achievement Catalyst, LLC

Memories of Stuffing

When I was a child, I loved eating stuffing but it always seemed to run out too soon. Since my mom cooked stuffing by putting it inside a turkey, my solution was to ask for a bigger turkey. My parents humored me and kept getting a bigger turkey each year. One year they bought a 23 pound turkey and it barely fit into our oven. We ate turkey leftovers for quite a long time that year :-)

It wasn't until I in college that I realized that stuffing could also be prepared without putting into the turkey. Thus, the amount of stuffing was no longer limited by the size of the turkey. Large amounts of stuffing could be baked alongside the turkey to ensure I had sufficient stuffing for several days after Thanksgiving.

Finally, after starting my first job, a friend invited me to spend Thanksgiving with his family since I wasn't able to go home. They had one of the best stuffings I ever ate. The secret ingredient was sausage, and sausage stuffings are still my favorite.

Stuffing continues to be one of my favorite foods and I look forward to enjoying stuffing as part of the Thanksgiving meal.

Happy Thanksgiving!

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial or Thanksgiving menu advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

Timeless Articles from the Archives #15

It's been over four years since I started My Wealth Builder. As I think about topics to write , I often remember, "I've written about that before," and decide to find a new topic. However, since many principles of personal finance are timeless, I want to include them in a recent post on My Wealth Builder. Therefore, I have started a series called "Timeless Articles from the Archives" that will highlight posts from the same week in 2006-2009.

2006

How Much to Save for Your Child's College Education - For us, our calculated value is about $10,000 per year.

Developing My Will to Avoid Debt - Here is the mind hack I use.

Paying Off a Home Mortgage Earlier - This was my analysis of the reduction time versus the increase in monthly payment.

Adoptions – Tax Credits and Income Exclusions - Adoption can expensive and tax credits can help reduce the cost.

My Top Ten Financial Reasons to Be Thankful - From Thanksgiving 2006.

2007

Capitalizing On The Internet Revolution - The agricultural, the industrial and now the Internet Revolution.

Avoiding Wash Sales While Taking Losses For Stock Investments - The IRS won't let investors buy stock within 30 days of selling the same stock for a loss. Here's how I avoid the issue.

Giving Thanks To My Parents - I'm glad I able to say "thanks" to my parents.

Our Journey To Financial Freedom #8 - My Personal Finance Mind Tricks - The eighth in the financial freedom series.

2008

Inflation or Deflation - What's Next? - I decided to buy TIPS as a hedge against inflation

2009

What We Learned from the Financial Crisis - The financial crisis of 2008 to 2009 has helped us clarify our thinking on our retirement investments.

Not Aging Gracefully - Getting old definitely isn't for wimps :-)

I Believe these Events are Inevitable - Out of four predictions, one has happened and the other three are still possible.

Why I Don't Shop on Black Friday - Nor will I shop on Thanksgiving day in 2010.

To me, the content of these posts are still relevant today and were worth reading again.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial, investing, tax, parenting or saving advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

Links to Carnivals from November 16 - 22, 2010

Here are the links to the Carnivals in which My Wealth Builder participated from November 16 - 22, 2010:

The Wealth Builder Carnival #15

Carnival of Financial Planning #166

Carnival of Wealth #13

For some interesting articles from the blogosphere, check out these Carnivals and give the hosts some recognition for their hard work.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial or wealth building advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

The Wealth Builder Carnival #16

Welcome to sixteenth edition of The Wealth Builder Carnival. The purpose of this carnival is to collect articles from the blogosphere on building, preserving and keeping enough wealth for a comfortable retirement. For reference, I have tried to keep the carnival content tightly focused on wealth building and did not include submissions that were off topic.

For reading convenience, I have listed the posts with brief summaries, often by the author, and organized them into seven categories: Earning, Investing, Insuring and Protecting, Living Frugally, Retiring, Saving and Taxes.

And now onto the Carnival:

Earning

The Problem with Corporate Sales Training - "Why every sales person should be themselves and throw away their boring scripts. It is time to change"

Career Insurance: Insuring Your Most Valuable Asset -"As with anything valuable, you need to take steps to protect your career. That's why financial websites recommend life, health, and disability insurance -- to protect/replace the value of your career in case you die, get sick, or are physically unable to work. Having some form of these insurances is generally wise for almost every worker. But there's another form of insurance that's equally essential. This insurance is free, but it will take some work and planning. I call it "Career Insurance". This Career Insurance is not a product you can buy, but a series of actions you can proactively take to minimize the chance that your career will take a major hit."

Should You Take on Personal Debt to Fund Your Business? - "While tapping into ones personal assets may seem like the quickest and best way to fund your business, there may be many potential nightmares down the road."

Insuring and Protecting

Tools - FireSafe Your Personal Finance Documents! - "It's a nice idea to keep our important personal finance stuff in such a way that we can grab hold of it and leave at a moment's notice. In case we cannot do so, it'd be great to have a back-up at a safe place with an easy access in case of natural calamities or unforeseen disasters ...."

The 12 Cyber-Scams of Christmas - "Why give others potential access to your wealth when you don't have to?"

7 little-known facts everyone should learn before buying car insurance - "Here are 7 little-known facts that could save you money in purchasing your car insurance."

The Question to Ask when Choosing Term Life Insurance: What Are You Protecting? - "We recently began working with a financial planner, and as part of our complete financial planning, looked at term life insurance options. I’m putting this article about term life insurance under “Building Wealth” and “Master Your Money” but it can easily fall under the “Retirement Planning” and “Wealth/Life Balance” categories."

5 Credit Card Protections You Might Have - "Many of our credit card companies offer us protections and if don’t know about it we might just be missing out."

Investing

How to Buy ETFs - "To buy and sell ETFs, you first need a brokerage account."

Discussing Investing In Income Producing Assets Like Bonds And Dividend Stocks with Benoit Poliquin, CFA of Pallas Athena - "Discussing income investing using preferred shares and dividend stocks."

13 Dividend Stocks Providing A Growing Income - "How much money will you need for retirement? This a very difficult question to answer. There are many factors and assumptions that go into estimating the income that will be needed in retirement. However, one certainty is that if you only invest in fixed income instruments, you will need more than if your investments provide you a growing income."

International Bond ETFs and Funds: Should You Own Them? - "Does it make sense for U.S. investors to own international bond ETFs or funds?"

How to Use the Dividend Growth Rate to Select Income Stocks - "Collecting dividend payments from stocks is an excellent way to help prepare for retirement as well as supplement your current income. Savvy investors have been buying up the top dividend stocks for years, slowly building a solid and long lasting income stream. So how do these successful investors know which dividend paying stocks to pick? It is surely not by chasing the highest yields."

Forex Trading 101: Major Currency Pairs, Most Traded Currencies, & More -"While not the way to invest for retirement, Forex trading can be a way to invest for the high-risk portion of your portfolio. This is a brief intro to Forex trading."

How to Invest - "A blog post that offers suggestions on how to find sound investments that accrue interest over the rate of inflation."

Living Frugally

Top 8 Most Wanted Gifts This Christmas And How To Get Them At a Discount -"A nice round up of the top 8 Christmas gifts for 2010 and how to get them at a discount."

Stop! You're Poisoning Yourself - "If we don’t curb our spending on the toys rather than the 'value-adds' we will come to financial ruin."

5 Credit Card Spending Tips for the Holidays -"These five tips can help people who tend to accidentally overspend while shopping avoid racking up credit card debt during the holidays."

12 Inexpensive Christmas Gifts Under $20 - "Some great, inexpensive Christmas gift ideas!"

Black Friday 2010 Deals: Walmart - "Walmart has posted it’s Black Friday 2010 Ads and circular! There are so many items that have deep discounts! I have posted the full Walmart Black Friday circular so you can develop your shopping strategy!"

Retiring

Tax Efficient Investing For Retirement - "Investing for retirement with an eye on tax efficiency."

Choosing Between an IRA and a Roth IRA - "Getting the best investment return and the best tax outcome for your retirement account requires knowing how to fund your traditional IRA and your Roth IRA."

Saving

What that dollar in your pocket isn’t worth - "Measuring yesterday’s devalued dollar against today’s is one thing. Measuring it against gold is something different."

Building Wealth on $1 Per Day - New Calculations - "Here's one reason to start saving early and often."

Taxes

4 Things Everyone Should Know About Inheritance Tax - "Guide to inheritance tax, how it works and what tax allowances you can claim"

Flexible and Health Savings Account Changes for 2011 – Over the Counter Medicine Reimbursement - "Do you use a flexible spending or health savings account? If so you need to know about how over-the-counter drugs are being treated in your plan next year."


That concludes this edition. Submit your blog article to the next edition of The Wealth Builder Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: the wealth builder carnival, blog carnival.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial, earning, insuring, investing, living, retiring, saving, tax, or wealth building advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

Using Covered Calls

When the stock market is volatile, I like to sell covered calls as part of my trading strategy. For reference, selling a call obligates me to sell the underlying stock at a specific (strike) price. The buyer of the call purchases the right to buy the underlying security at a specific (strike) price. When a call is covered, the seller owns the underlying stock.

Covered calls provide me the following benefits:

A premium over the sale price. For example, if a stock is at $55, I can sell a $60 call for a $1 premium. If the stock is at $60 or higher at the call expiration date, I will receive $60 for the stock. Total sales price equals $60 strike price plus $1 premium or $61.

Earnings during a sideways trend. Using the same example, if the stock is under $60 on the expiration date, I keep the stock and the $1 premium for the call. Thus, I earned $1 while waiting for the stock to reach $60.

Insurance against a decline. For example, if a stock is at $55, I can sell a $45 call for $10.50. If the stock closes above $45, the totals sales price will be $55.50 ($45 strike price plus $10.50 call premium). If the stock falls below $45, I keep the stock and the $10.50 premium.

To get these benefits, there is an opportunity cost for using covered calls. I forgo any gains above the strike price since I am obligated to sell at the strike price. For example, if I sell a $60 call and the stock advances to $80, I am still obligated to sell at $60 and, therefore, do not get the $20 gain above $60.

Hence, I prefer to use covered calls at short term highs when a stock is in a sideways trading channel. Thus, when the stock pulls back, I keep the call premium, wait for the stock to rally, and start the cycle again.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC