Saturday, March 31, 2012

Where Can I Save My Cash?

Investors are holding more of their portfolio in cash amidst the global market turmoil. Meanwhile, interest rates on savings and checking accounts have decreased. Here are some of my novel, and not so novel places to get a higher return for holding cash. Read more HERE.
 
 
Disclaimer: All content is personal opinion and not a solicitation or recommendation to invest in any securities or services. Dalia is not affiliated with any financial company or broker dealer, as such she does not maintain her Series 7, 63, 86 and 87 securities licenses. She is also not an investment adviser, financial planner, CPA or tax attorney. Information provided is deemed to be accurate, but we do not assume any liability for services rendered or information provided.

Wednesday, March 28, 2012

Bank of America's Mortgage to Lease Program is a Win-Win

The Wall Street Journal recently reported that Bank of America has started a pilot program that offers an alternative to foreclosure. BofA will let owners who are facing foreclosure surrender their deed but stay in their homes by renting it directly from Bank of America at a market rate. Why I think this is a win-win.




Say No to Foods Laced with Cochineal, Carmine (Beetle Juice)!


Media frenzy has broken since Starbucks confirmed on March 26 what many suspected about its Strawberry Frappuccino. What makes this product, and hundreds of other common food items red, is beetle juice. Well, close enough. Natural red food coloring is most commonly derived from grinding and boiling up the exoskeleton of Cochineal beetles that are found mostly in Mexico and South America. In the food industry, cochineal coloring is referred to by more palatable names, mostly "carmine" and the euphemistic "crimson lake."

photo courtesy sxc.hu
Foods containing this natural food coloring cause an allergic reaction in some people. It is not suitable for vegetarians, vegans or Jews and Muslims who follow kosher or halal diets. Back in 1998, The Center for Science in Public Interest, a consumer advocacy group, urged the United States Federal Food and Drug Administration to improve labeling of or ban cochineal food. After a decade, in January 2009, FDA passed a new regulation requiring carmine and cochineal to be listed by name on the label for all food and cosmetic products in the statement of ingredients.

Starbucks' bug-infused Strawberry Frappuccino should not come as a surprise. Most red or pink foods such as yogurts, fruit juices, smoothies, candy or cake contain carmine or cochineal, meaning bug scales.

My former career involved working closely with processed food companies, so I have been following this topic closely. In my experience, food manufacturers like General Mills and Kellogg are generally unapologetic about using carmine, since cochineal dye has been used as a coloring agent since the 15th century and considered safe. Since beetle juice is cheaper than substitutes such as beet juice, and considered better than artificial red dyes since it is "naturally" derived, food and cosmetic companies use it widely.

Shortly after the FDA ruling was passed, all food manufacturers started disclosing carmine or cochineal in their list of ingredients. Since then, carmine has been the subject of documentaries on Science and Discovery channels. However, it bugs me that consumers are surprised when they read about beetle extract in their food products, such as Starbucks' Strawberry Frappuccino, clearly unaware they have been feeding the same to their kids for years. Clearly carmine or cochineal does not scream "extract from insect scale," which would make any food unappetizing. However, I am thankful ABC News, CBS News and others are bringing this weird ingredient onto the consumer's radar.

Since I am not Andrew Zimmern or Bear Grylls, I refuse to consume or pay for foods laced with bug scales. I assume most people would refuse as well when they find out the truth behind natural red food coloring found in almost all red, pink or purple food products. I have seen carmine listed in Yoplait, Trix and Dannon Strawberry yogurts and smoothies, packaged red velvet cake, ice creams, Ocean Spray ruby red grapefruit juice, and several colorful kids cereals that claim they are naturally colored. Of course, there are several products where carmine or cochineal is not listed, such as those that are not packaged. For example, almost all red velvet cakes that are naturally colored contain bug extract.

My refusal stems from the risk of potential allergies, and also from an aversion to eating bugs. And I believe when I am buying a strawberry sorbet that is not marketed as bug sorbet, I am being duped. I could settle for something that is less pink, but will not eat beetles simply because it is better for corporate margins. There are alternatives. For example, Stonyfield's strawberry yogurt, which typically costs $1.89 for 4 oz. compared to $0.99 for Yoplait, is colored with beet juice. Sure, the color is not as vivid, and the price is a premium, but it is something I am willing to pay for to avoid eating insect extract.

Note: Also published on Yahoo News and Yahoo Voices. Author retains copyright.

Tuesday, March 27, 2012

How a Smart Stategy Saved Our Easter Egg Hunt from Cancellation

USA Today recently published an article "Aggressive 'helicopter' parents force egg hunt cancellation." According to the article, Old Colorado City Association, organizers of an annual Easter egg hunt in Colorado Springs, Colorado attended by hundreds of children in the past years have canceled this year's event. The reason? Behavior of aggressive parents who swarmed into the tiny park last year, determined that their kids get an egg.


As in many public parks where egg hunts commonly take place, there was no place to hide the plastic eggs, which were filled with donated candy or coupons redeemable at nearby businesses. So thousands of eggs were placed in plain view on the grass. Even before the “Go,” parents jumped the ropes and egged their kids along. The egg hunt was over in seconds, to the consternation of egg-less tots and their parents.

Photo by Steve Walkowitz/HFA
I volunteer for a family focused not for profit in my hometown and an annual egg hunt is one of many events we organize for our neighborhood. We came fairly close to cancelling our own egg hunt. Each year, volunteers would scout business for candy donations. We would then buy hundreds of plastic eggs from Oriental Trading and other merchants, and spend hours getting them ready. As in the Colorado Springs case, we did our Egg Hunt in a public park, which did not have a place to hide eggs. We did egg hunts at 15 minute intervals for different age groups over a period of two hours. Yet, each race would be over in matter of seconds. A few happy kids, accompanied by aggressive “helicopter” parents, would emerge victorious, with their Easter baskets full. But most other kids, including those of all the volunteers who were busy managing the crowds from breaking into a stampede, would end up in tears because they got nothing. Ironically, soon after Easter, hundreds of these plastic eggs would end up in the garbage and as landfill.

In 2010, a local blogger, himself a non-parent, published a critical piece about our egg hunt. While our hard work and financial expense in organizing a fun community event went unacknowledged, the spotlight shone on how many angry parents and disappointed kids this supposedly fun event generated. We needed to change our strategy. Clearly buying more goody filled plastic eggs was not working, since we had been buying more every year. Our volunteer Theresa had an ephiphany... we decided to buy less!

Our Egg Hunt was transformed into a Spring Fling. We enlisted local high school students and a theater production company to design Easter and Spring themed props. We made nests, haystacks and other cardboard props to hide the eggs. We bought only 300 empty plastic eggs instead of hundreds more of the goody filled ones we bought in the past. The trick was the kids were free to do egg hunting at a leisurely pace, but then they needed to trade in the eggs to get their goody bag, which we filled with healthy snacks, arts and crafts, and coupons, some of which was donated by our generous sponsors. The number of eggs found suddenly didn't matter.

The 2011 egg hunt was a huge success. We didn't have to ration any eggs. We were able to reuse and recycle the plastic eggs for other participants, so we never ran out. Children who came empty handed were encouraged to try again. Parents, even “helicopter” ones did not impart the “winner takes all” attitude to their children. Instead, they were able to relax and enjoy taking lots of fun photos of their children enjoying this fun activity. Finally, the event was a greener, as we were able to keep most of the plastic eggs from ending up in landfill.

Sunday, March 25, 2012

How I Save Thousands of Dollars in Income, Sales and Property Taxes

We give up to half of our income in taxes such as federal income tax, state income tax, local income tax, sales tax, and property tax. I don't pay more taxes than I have to by following 5 easy steps. These help me save thousands of dollars I would otherwise be paying in taxes. Read more HERE...

Thursday, March 22, 2012

How I Am Preparing Myself and My Older Child for a Second Baby

A journal from Fall 2011...

This month, as I prepare to give birth a second time, things are different. There have been fewer surprises (and worries) during the pregnancy, and I feel more confident in my ability to take care of a newborn. The biggest challenge however is doing everything I did the first time around, while caring for a preschooler. Although, my son is fairly independent and a very loving child, he is very attached to me and likes to be the center of attention. Even though a baby sister will make him very happy, I expect the initial transition to be tough for him.

Photo courtesy: Stock.xchng

Many of my friends chose to have two children within a short amount of time--18 months to 3 years. I look up to them for ideas and inspiration on how to juggle two children, work, and adult life. Each has told me it is tough, and that I should prepare in advance, but expect most days not to go according to plan. Here are some things I am doing.

My biggest mistake the first time around was not seeking help. After caring for the baby (something every new mother learns on the job), pumping and feeding, and enduring sleepless nights, cooking and cleaning became extremely arduous. It also left little me-time and social time in the early months. Stubbornly, I maintained I could do it all, and felt miserable and alone in the process until my husband gifted me with a cleaning service. This time, I am open to ordering out more often, or calling a housekeeper weekly if the mess at home gets out of hand. And except for the harshest winter days, I will be out and about town more often.

Another thing I will try is getting my baby on a schedule. I was much more lax with my first child, who co-slept with us, fed on demand and did not sleep through the night until after he was a year old. Of course, neither did I. Although the baby will still feed around the clock in the early months, feeding on a 2-3 hour schedule initially, and 3-4 hour schedule afterwards is something I will attempt. I will also transition her from bassinet to crib, instead of bassinet to our bed to big kid bed, like I did with my son.

Last year, my son attended preschool part-time, this year I chose to enroll him in a full time option. I did this not just to get him out of the house, but because I did not want him to experience "mommy-sharing" or what might appear to him as much less attention. At four, he was also ready for more mental stimulation and social interaction, and I anticipated that I would not be able to keep up with him for an extended period of time while caring for a newborn.

As an older child myself, I am aware of the jealousy or resentment older siblings often times feel towards the younger sibling in the early months. Even though I dearly love my brother, I remember thinking of him being a nuisance and wanting to compete for my mother's attention. My tantrums were childish to say the least. There was one time I refused to drink milk out of a glass and wanted it out of a baby bottle instead. However, with my mother's support, I was quickly able to transition to an older sister who knew-it-all and who was always on the look-out for her kid brother. This is something I want to model in my son, and we have a name for my son's new role "Sister Protector," inspired by his hero Buzz Lightyear.

My son now believes he is more of a decision-maker when it comes to the new baby. He picked out a nickname for her. When we are shopping and I narrow down the choices on an item (say an outfit) for the baby, I let him choose. I also make sure he picks out a nominal gift for himself from her every time we shop for baby items. Since attention is what he will most likely be craving, I am stocking up on workbooks, board games and books that I plan on using during my special time with my son when he gets home from school.

Finally, we have been reading books on new siblings, some of which are listed below. My son's favorite is a rather silly one, where the protagonist finds out that his baby brother can only "sleep, drink, pee, poop and cry" but thinks he will have fun with him nevertheless.

In short, motherhood is always an adventure, whether it is the first time, or not. I don't plan on succeeding in it, I just hope to be pleasantly surprised, give and get joy from the experience, and take things in their stride.

Recommended reading (read to your older child):

A Baby for Max, by Kathryn Lasky and Maxwell Knight

Babies Don't Eat Pizza, by Diane Danzig and Debbie Tilley

Cornelius P. Mud, Are You Ready for Baby? by Barney Saltzberg

Franklin's Baby Sister, by Paulette Bourgeois

Hello Baby! by Lizzy Rockwell

I'm a Big Brother, by Joanna Cole and Rosalinda Knightley

I'm a Big Sister, by Joanna Cole and Rosalinda Knightley

Look at Me! by Rachel Fuller

My New Baby (New Baby Series), by Annie Kubler

On Mother's Lap, by Ann Herbert Scott and Glo Coalson

Our New Baby, by Dee Shulman

The New Baby, by Fred Rogers

The New Baby, by Mercer Mayer

There's Going to Be a Baby, by John Burningham

We Have a Baby, by Cathryn Falwel

What Shall We Do With the Boo-Hoo Baby? by Cressida Cowell and Ingrid Godon



Note: This article was previously published in Yahoo Voices and HFA Newsletter. Author retains copyrights.

Monday, March 19, 2012

Goodbye Income Tax Refund Anticipation Loans?

2012 will be the last year that any bank will provide refund anticipation loans (RALs) on behalf of national income tax preparation chains like Jackson Hewitt and Liberty. Despite heightened efforts to stamp RALs out, products such as these might continue to exploit the most vulnerable section of our society.  More HERE...

Friday, March 16, 2012

6 Ways I Save Up to 50% on Furniture

When it comes to buying furniture, sales and coupons at local furniture retailers should be the starting point. Here are six other ways I save on my furniture purchases. Read more HERE...











Tuesday, March 13, 2012

Financial Lessons From My Friends

From simple things like how to make my signature more secure, to more complicated investing and tax strategies, I have learned a lot of financial tricks and tips from my friends. Read more here...

Wednesday, March 7, 2012

Getting Money Back When a Retailer Declares Bankruptcy

Based on my experience, success in getting money back when seller declares bankruptcy depends on method of payment and speed of action. Read more here...

Monday, March 5, 2012

Assessing My Income Tax Audit Risk


Every year, I wonder if my income tax return will be selected for an audit by the IRS. I investigated what the odds of an IRS audit were. According to the files from the 2010 Data Book (most recent available), the IRS audited about 1.7 million income tax returns, which was only 0.9% of the 187 million filed. It seems filing early versus in April, or refund versus tax owed did not have a bearing on audit risk. Two items clearly increased the risk of audit.

Read more at Yahoo Finance: Assessing My Income Tax Audit Risk