End of Year Retail Sales--Shop, Baby Shop!

Have you been to the end of season sales? Oh my Hell there are some bargains to be found for sure! My favorite store, Victoria's Secret has a huge sale going on and I was able to pick up the most beautiful luxuries in there--made of dark pearl grey lace and silk with scallops of roses on the boarder. Everything in there was heavily discounted and the crowds were thick. The department stores had some good sales but, I couldn't really find anything that I wanted to part money for except for a Calvin Klien shirt. My favorite brand Lucky Jeans had no discounts what so ever! I love their shirts but, they are $75 a pop and I hate spending that much for a tee shirt!

Reuter's News is reporting that retail sales for the holiday season were the worse since 1970!
It's not just in the United States, European retailers are struggling as well. Britain retailers are reporting discounts as deep as 90% to attract shoppers.
The deepest discounts right now can be found in apparel and electronics.

Elle: "It's impossible to use a half-loop stitching on low-viscosity rayon. It would snag the fabric. And you didn't just get it in - I saw it in the June Vogue a year ago. So if you're trying to sell it to me for full price, you've picked the wrong girl."
Legally Blond

The Money Behind Reality Shows

I have always loved Reality shows. I admit that I'm a voyeuristic junkie when it comes to watching people open their lives, happiness, cat-fighting, back stabbing, plotting, pushing people over balconies, fighting for cash, and grief to us from TV land. I have always wondered what the attraction was to participating on a reality show and expose yourself to a gazillion viewers like that. I admit, if I could stand to go hungry without slipping into a coma I would be the first to sign up for Survivor and I would be chowing down on water buffalo gonads with the best of them! The newest season takes place in Brazil this time! I would probably end up ditching them for the beaches of Rio though! You know that the winners make a butt-load of money but, what about the other contestants--do they make anything? What about the Network hosting the show, what's in it for them?

For the producers and networks the answer is obvious, they make way more money producing reality shows than the do with sitcoms or dramas and they are cheaper to produce as well!
These shows provide a strong rating and bring in gob's of money from advertisers. Coupled with the fact that those participating on the show don't require the same amount of pay as regular actors and actresses and producing the shows are relatively cheap, it makes for a profitable formula.

Don't you wonder how much that those are in the shows make?
In an MSNBC article The Cost Of Going On A Realty Show states that, "Some shows, particularly those without game elements, offer stipends to compensate their cast members. "Real World" roommates are paid small stipends for their "story rights"; the exact total isn't disclosed, but executive producer Jonathan Murray told USA TODAY, "I used to say it was enough to buy a used car. Now it's probably not quite as big a used car."One thing's clear, though: You should want to be on a reality series for the experience, because participation in a series definitely does not come with a guarantee of fame and fortune. "

According to In Touch the stars of MTV's The Hills make between $35,000 to $75,000 per episode. Spencer and Heidie each pull in $65,000 an episode for the drama that they provide.

If you have ever thought of trying out for a reality show they have casting calls for so many reality programs. Here's a link for a listing:
http://www.realitywanted.com/calls/search/sort/dateupdated/order/desc/page/100
I perused through the pages and picked my favorites.

• T.V. Made Me Do It: Are you a TV-inspired wild animal or reptile trainer? Now Casting. Were you inspired by a show on Discovery Channel, Animal Planet or National Geographic to work with venomous snakes, wild bears,… (no liability there!)


• Wife Swap Casting Beautiful Families:Do you have a family full of models? Is looking good the top priority in your family? Are designer clothes a must? If you answered yes - then I want you! The premise of Wife Swap is that one…Start: 09/23/2008 End: 01/29/2009


• I Survived a Japanese Game show: Think you have what it takes to compete and win in TOKYO on ABC's hit show "I Survived a Japanese Game show"?? Do you have the drive and craze to become the next Majide Champion and win $250,000??…Start: 12/01/2008 End: 01/25/2009


• Producers of SUPERNANNY looking for rebellious Teens for New Show!:Must be 18 or older. The producers of SUPERNANNY and U.S. cable hits It’s Me Or The Dog (Animal Planet) are now searching for rebellious teenagers for a brand new series from the United Kingdom. …Start: 12/15/2008 End: 02/27/2009 (I have several volunteer teen boys that would like to up against the SUPPERNANNY!)
  

Ponzi Schemes and Other Scams

Ponzi Schemes

A Ponzi scheme is essentially a scheme were you are offered much better returns than you could gain through traditional investments. There are so many different forms of investment vehicles these days that it's difficult to keep up with the vernacular of puts and calls and derivatives. With a Ponzi scheme, Instead of investing the victims money the operator uses the money to pay the previous investor or victim. Usually the scheme falls apart when new investors can't be found to pay the investors on the bottom or when the operator runs off with everyones money.

How do you keep from being a victim of a Ponzi scheme?

• Be careful about who you invest your money with. make sure that the investment firm has a long established track record that you can trust.


• Don't invest in any type of investment that you full don't understand! Don't rely on others to explain what the investment is about.

Jury Duty Scam

One scam that is going around is a Jury Duty where a clerk of the court calls you and tells you that you have been selected for jury duty and they then ask you for name, social security number and then a credit card number. If you refuse they threaten you with fines!

Multilevel Marketing and Pyramid Scams

The scam artist will try to gain your trust. He might be a friendly widower. Then all of a sudden he will start pressuring you into some business deal where you would invest $1,500 dollars and you could make loads of money in return. He might even have some glossy pamphlets that look professional. This happened with my mom one day. The conversation went like this:

Con man: "If you invest $1,500 you could make thousands in return! just get other investors enrolled in the program and they will pay you back and thousands besides."

My mom: "Isn't this just a pyramid scheme?"

"Oh no--that would be illegal. Just invest $1,000."
"I'm not giving you a $1,000!"
"Just five hundred then...you can write me a check."

So then, to get rid of the guy, my mom says,"My daughter Penny handles all of my business and finances." So she gives him my name, phone number and address! So, I have that to look foreword to--a call or visit from Ralph--you would think that being a con-man and all he would change his name to Alfonse or Jonathon or something wholly more attractive and affluent sounding. I am looking foreword to it...almost salivating at the thought...oh yeah...it's on Ralph!, it's on like Donkey Kong!

Multi level marketing is in many business opportunities a legitimate form of selling products. The difference between a legitimate multi level marketing business and that of a pyramid scam is easy to spot.

1. The legitimate multi level marketing company places an emphasis on selling a product


2. pyramid scams places an emphasis on recruiting people or asking for investments


3. In some cases like gifting clubs they will ask for donations where you in turn will recruit people below you to ask for donations or investments. The gifting clubs will sometimes use religious "feel good" terms or names like Renewal Celebrations or Jacobs ladder and might come as a special invitation from a church member.
   

A pyramid scheme is set up so that there is a hierarchy where people are recruited below those who have been previously recruited. Those who have been recruited make payments to the people above them in the hope of making their money back by recruiting others and gaining payment from them. In pyramids, most of the sales are made to the recruits and not the general public. The nutritional supplements or what ever they have going only serves as way to make the scheme look legitimate.

How do you avoid being scammed?

1. Never feel pressured into joining a multi level marketing group.
   


2. Never feel pressured into signing or investing in something that you aren't sure of.
   


3. Take the time to investigate any business opportunity.
   Check the business out on the Better Business Bureau website at http://welcome.bbb.org/


4. Never make investments at the swap meet!
   


5. Always keep in mind, that it's a felony in the United States to participate in a pyramid scheme and is punishable by fines and time in jail. People participating in the scam are viewed as engaging in illegal activities rather than being a victim.
   

Resources: FBI and The Better Business Bureau

Text Messaging Hot or Not?

One of our favorite skateboard shops is Five-O Skate Shop on 17th street out in Idaho Falls, Idaho. Last year the owner started a campaign where my son entered a number that they handed out on business cards into his cell phone. When ever they have a skateboard competition or a good sale or promotion going on they send out mass text messages to the cell phones and we are instantly included. We frequent Five-O because we feel so connected to them. That's not only "hot" but, smart!

Right now Five-O is having a sale for the Holiday Season where all of last years snowboarding clothing is 40% off! Sweet deal! I just picked up a new Volcom Jacket that I love! They also carry a good selection of snowboards and equipment.

There is a huge paradigm shift in advertising that is going high tech and mobile. Vendors can create promotions and ads or coupons that go directly to the those customers that they know with certainty will have a need or strong desire for their product or service. 58 million people in the U.S. viewed an ad on their mobile phones in Feb, 2008 alone! This text messaging not only targets directly those that have a high chance of interest but, it also makes the customer feel valued-like a friend.

The response rate for text advertisement is at about 6% to 8% verses 2% using traditional means. This form of advertising effectively reaches the %1 base that you're after rather than chasing the 99% that won't actually care about it.
The way it works is that a customer sends a text message or enters a number in their cell and that cell phone number is added to a database. A restaurant or bar can make an immediate decision about that nights special or say they want to promote a band that will be playing that night and the advertisement is sent to every one on the database list. A cell phone user can opt out of the system if they wish by sending in a text request .

Web based coupons is another "hot" trend where a customer using a smart phone or computer can look up coupons for whatever product or service and the customer can then download it to his or her cell and present that coupon to the vendor.
Another "hot trend" in text advertising is the QR code. The QR code or Quick Response code created by the Japanese corporation Denso-Wave is a matrix code like the bar code that you're familiar with but, it holds a hundred times more data on 1/10 of the space. A cell phone user can take a picture of the QR code with a picture phone on an advertisement, business card or whatever and the equipped cell phone will interpret the data embedded in that code hyperlinking it for promotions or information. This is pretty "hot" in Japan right now but, hasn't made it's way to the U.S. yet. I'm sure it will eventually.

Kip singing to Lafawduh:
"Why do you love me? Why do you need me? Always and forever...we met in a chat room, now our love can fully bloom....sure the world wide web is great but, you make me salivate...I love technology but, not as much as you you see... I still love technology....Always and forever...."
from the movie Napolean Dynomite.

Which Countries Will Choke and Which will Come out Smelling Like A Rose

As the world grapples for financial stability, the questions that I keep coming back to is how bad will it get and who will come out clean? It looks like trouble and the stench of doom will follow well into the next year with GDP struggling at under 1%. From first light I would think that China and some of the emerging countries would be doing better. They normally fair better when the U.S. starts to Falter--This is true in some cases and not so true in others. China is still good but, seeing a slowdown in it's own economy. The emerging countries which depend on borrowing are also being hit pretty hard by the financial crises.

Europe is going to see a recession that will be deeper and longer than that in the United States. Similar to what happened in the States, European Banks porked themselves by over lending to the overheated housing markets and by taking excessive risks with derivatives.

China will come out stronger than most with two trillion dollars in bank reserves that it can utilise to make it through the crises. South Korea, Mexico, Russia and India are in a stronger position to weather the storm as well and have little need for external borrowing. These are the countries that will grow at a faster clip than developed countries. Russia which has no dependence on foreign oil will become a stronger player on the world market place.

The world will see an overall decline but the emerging countries will still fair better than the developed countries. The Gross Domestic Product (GDP) of these emerging countries will decline from 8% in 2008 and is estimated to come in at 6% for 2009. Even with this decline the emerging countries will continue to outpace developed countries which will decline in GDP growth from under 2% to less than 1%. This data comes from the World Monetary Fund.

How Long will It Take Your Investments to Recover?

Right now when I look at my investment portfolio I totally start to hyperventilate and have to reach for a paper sack! I try to calm myself by reading analyst reports and knowing that eventually the markets will recover and come back to where they once were.

How long does it take to see some return to normalcy? In an average bear market you should see about a 25 to 30% rise in the Dow Jones with in the first year after the bottom hits. In normal market conditions it can take up to four years to reach the high that was once enjoyed.


This Bear market has been different than those in the past. The rapid dissemination of information has caused information and rumors to get to investors at a much more rapid pace than in the past causing more volatile swings in the markets.


At least this week I haven't had to reach for a paper sack!

"Magic 8Ball Will The Stock Market Rebound Soon...."

I admit that I occasionally shake the Magic 8 ball like a teenager but, when it comes to investing I like to rely on charts and tried and true methods of determining the outcome and direction that the market will take.

In my opinion, we are in the late stages of a bear market. I'm starting to see a sharp increase in Utilities, Oil, and energy these three being the biggest movers. Also an increase in Real Estate Investment Trusts (REITS). Not surprising is a downward trend in Retail, Auto, and Leisure Products. These are all indications of a late bear stage in the cycle and the bottom of a trough.

Another good indicator of a stock market trend is to look at a moving average of the Dow Jones and check the price and volume. Over the past year the Dow declined steadily with it's sharpest drop occurring in the last week of September and the first week of October. The Volume during these two weeks nearly doubled as investors scrambled to pull out of the markets and stuff what was left of their holdings into safe keeping. The heaviest volume was trading at 2,344,911,100 compared to 778,840,100 in the first week of September. Over the past week the market has been trending up in light volume of 472,561,500 as investors are looking at bargain sale prices and are coming back into play.

"Magic 8 ball does my true love, love me back....Oh sorry," Does this all mean we are ready for a bull run? Maybe, keep an eye on the Dow Jones average. look for a sharp increase in Volume and Price change. I think it could still be choppy for a while yet but, I'm looking for the bull to be let out of the pen in the not too distant future.

Keeping your home from foreclosure

WASHINGTON (MarketWatch) -- The Treasury and the Federal Deposit Insurance Corp. are working with the Federal Reserve and Fannie Mae to prevent millions of home foreclosures, Treasury Secretary Henry Paulson said Tuesday in an exclusive interview on "Charlie Rose" on PBS airing Tuesday night, according to a transcript of the interview. Paulson said the Treasury is readying plans to buy troubled mortgage assets from banks and other investors. "There is clearly more that can be done, needs to be done," he said. "We are looking in the millions. And we need to do everything we can to minimize that," Paulson said. The actions by the FDIC to guarantee bank debts are already working, he said. "The credit freeze is beginning to melt."

If you have fallen behind on your mortgage payments or if you have started to receive delinquency notices in the mail don't panic! There are people who want to help you and you do have options available to keep your home from going into foreclosure. Also, be aware that there are people who want to help themselves and they will try to take advantage of your situation. It's their intention to try to take your money or your home. The best way for you to get your finances under control is to create a budget.

1. Take a good look at your expenses and see what areas you can cut back on and if there are expenses you can cut out all together--even if it's just for a few months to get you through.


2. Make your house payment the most important payment. Pay that every month before every thing else.If you feel that you are getting into trouble and delinquency notices are coming in the mail, contact your lender immediately and see if you can work something out.

Don't feel like you have to take care of the problem by yourself or that the situation is hopeless. Your lender does not want to foreclose on your home, it will cost them too much money to do that. They would rather find an option that works out for both of you. Here are some options that you have:

• The insurer can pay the amount that you are behind on in exchange for a promissory note from you and you pay him back over time.
  Ask to have the loan changed to reduce the interest rate or extend the term of the loan and add the missed payments to the existing balance.


• Pay the entire amount that is over due.
  Convert an adjustable rate mortgage to a fixed rate mortgage.


• Forbearance agreements --payments are temporarily delayed.
  The FHA Secure Plan--If you are delinquent because of an interest rate reset you can refinance into an FHA-insured mortgage through The Federal Housing Administration (FHA) To check out information on the FHA refinancing guidelines:
  http://fha.com/
  

Also be aware that there are foreclosure scams that are manifesting themselves like greedy specters. The most common ones are people offering to help you negotiate with your lender for a huge amount of money or they offer to make your payments and you can stay in your house until you can buy the home back from them. What you don't realise is that they are taking possession of your home with the equity that you have in it and sure you get to stay in your home but, your paying rent now! The scam artist owns your home and the equity. Don't feel pressured into signing any agreements without a lawyer looking it over. There are legitimate housing councilors that will help you.You can contact a councilor at the Department of Housing and Urban Development :http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfmAs always, check out a company for complaints before you do business with them at The Better Business Business Bureau at:http://www.bbb.org/

The Federal Deposit Insurance Corporation (FDIC) is reporting a higher number of unprofitable banks and problem bank and savings institutions than in the past two years. Much of the problem stems from charge offs to industrial borrowers, bad mortgage loans, and home equity lines of credit.While the number of problem banks is not out of line if compared to historical data from the past five years, what is troubling is the sharp increase in home repossession and foreclosures and the impact that this can have on the banking industry. In a Fox news report on February 26, 2008 titled, Homes Facing Foreclosure jump 57% in January, the reporter stated that In January they witnessed a 90% spike in the number of homes going back to the bank. Homeowners can't meet their payment requirements and the homes can't even be resold at auctions. If your bank does happen to fail, what happens to your deposits and investments?If your bank does fail it will most likely be acquired by another bank or the FDIC will intervene.
The FDIC will insure up to $100,000 for checking accounts, savings accounts, certificates of deposits and IRA retirement accounts at Federally insured institutions.
The FDIC does not insure mutual funds, annuities, stocks, bonds, life insurance policies or the contents of safe deposit boxes.
The Securities Investor Protection Corporation does insure and replaces missing stocks of up to $500,000 if a bank fails.
Treasury bills, notes, and bonds are still safely owned by the investor. The holder can request a document showing ownership from the bank acquiring the failed bank or from the FDIC if the failed bank is not acquired by another institution. You can then take this proof of ownership to the nearest Federal Reserve Bank to redeem your T-bill.
The contents of your safe deposit box are not insured by the FDIC. If you are concerned about theft or fire you can obtain insurance through your home owners insurance. If your bank does fail the bank acquiring your bank will take over the offices and safety deposit boxes. If there is no acquiring bank ,the FDIC will notify safe deposit box owners to come pick up the contents of their boxes.
Credit Unions are insured by the National Credit Union Administration for deposits of up to $100,000 at Federally insured institutions.
If you would like to make sure that your bank or savings institution is Federally insured you can do so at the Federal Deposit Insurance Corporation.
Bank Find- http://www2.fdic.gov/idasp/main
References:

Should You Buy Back Into the Market?

I admit, to jump back into the market today you would have to seriously "grow a pair" as big as an elephant! There is still more room for the market to drop apparently another 9,000 points! Logically, if you are a wise investor you can start to see the opportunities that are unfolding before you. There are bargains that you can buy into for a pretty sweet deal and you should consider picking them up while they are so low. Consider buying for a long term horizon.

The Stock Market is a leading indicator of the economy in that it precedes the economy by about three to four months. Analysts believe that we will see a decline in the Gross Domestic Product (GDP)for at least two quarters. Technically this spells out, can you say it as a whisper,--Recession. The definition of an economic depression is if it prolongs into years rather than just a few quarters.

So, should you start buying again? You should start to see the market bottom out and heading back up within the next couple of weeks to a month, so if you want go out and grab some bargains do your research and make sure that the stock is sound and that there is solid management and good prospects behind it. Be proud of your cojones amigos!

Checking Your Risk Aversion While Investing

I love those investment commercials with the baby making the trades. I first watched one of those ads during the Super Bowl with the baby making trades and saving his money to buy a clown and then he goes,"but, I underestimated the creepiness factor!"
When you first start out creating a new investment portfolio some good questions to ask your self aren't what's happening in the markets today and where is the next big move coming from? Don't get me wrong, these are always questions that are on my mind,especially lately, but when first starting off you need to take a good hard look at who you are as an investor. You need to determine:

• How risk averse you are--or how much risk are you willing or can you comfortably take on?
• Asset allocation
• Your age
• Other factors such as family obligations and your personal circumstances and goals.
  

Investors have different tolerance levels when it comes to risk. Some are Vegas gambling churners, who like to get in and get out buying low and selling high with out a care in the world as to market corrections or severe tumbles. Other Investors just want to hold on to their money and play it safe. Other factors should be evaluated in determining how risk averse you are or in many cases should be: your age is a factor and which stage of life that you are in--if you lost a great deal of money in a correction how would that affect you and your family? If you have children, that should be a factor.
Taking your age into consideration is important. If you are young--in your early twenties or thirties with out a family you can afford to take on more risk because you will have the ability to earn the money back over your lifetime if you experience a severe market down turn (make sure that you keep a cash stash for emergencies as well.) If you are on the other side of the coin and retirement is in the not too distant future, you will need to manage your portfolio to avoid risk and move into tax savings and income earning investments.
It could also be a goal trying to safe money for college expenses. If you are trying to save money for college and your children are getting closer to the age where they will be going, you will need to place the money in safe investments like long term CDs or Treasury bonds,that sort of thing.
If you feel that you have a great deal of risk aversion but, you would like to get a more of a return on your investment than what your savings account at the bank has to offer, check out CDs, Treasuries bonds, and Municipal bonds. With Municipal bonds check to make sure that they have aaa rating. Use a mix of 30% stocks, 60% bonds and 10% cash
If you are a conservative investor but, you would like to see growth use a mix of 60% stocks, 30%bonds, and 10% cash.
If you are an aggressive risk taker use a mix of 60% stocks, and 40% bonds
If you would like to take your age into consideration a general rule of thumb is that you take 100-your age and that's the percentage of stocks you should keep, with the rest divided among cash and bonds.
If you don't have an investment broker picked out be careful about who you choose. It's your money and you want keep it safe--you don't want to run into problems down the road. Personally I like to invest with investment companies that have a proven track record of excellent customer care and investment management. I was conducting some investment research in the Library and I came across this one statement that with one of the new online companies, that their investors were fleeing in mass! I probably shouldn't tell you this because that baby is going to come after me in the middle of the night like the Seed of Chucky from those Child's Play horror movies!

How To Make It Through The Financial Crises

"In the long run, Americans have good reason to be confident in our economic strength. America has the most talented, productive, and entrepreneurial workers in the world. This country is the best country in the world to invest and do business in. Consumers around the world continue to seek out American products as evidenced by record-high exports. We have a flexible and resilient system that absorbs challenges and makes corrections and bounces back." President George W. Bush, September 19, 2008--White House Press release.

In the long run according to President Bush, we should be okay. So, what is happening now and where is the best place to invest right now to make it through the financial crises that we are in?
Do you remember back in January when there was a huge problem with sub prime mortgages and things seemed to be falling apart then? Well guess what? They have! To some extent, that is.

A sub prime mortgage loan is a loan made to a high risk individual. When this was going on investors were buying homes as speculative investments and getting these sub prime loans to finance the houses thinking that they would sell them later on. When housing prices fell in many locations around the country these high risk loan holders just walked away and these homes went into foreclosure. The majority of average home owners are paying their mortgages and paying back their debt however. The sub prime lending problem has shot through the veins of the financial system to the point where we are now in crises mode and it is difficult for individuals as well as business to obtain credit. What the government plans to do is to buy up all of the toxic mortgages and try to stabilize the financial markets.

Over the next few months and into the next year, the economy will continue to be weak and turbulent. There is talk about stagflation where you will see both high interest rates and high inflation--that's not a good thing.

The best place to invest your money is in non-cyclical. Think about things that people have to have in their lives like Grocery, Pharmaceutical, and Utility stocks. If you are not comfortable about investing in stocks or bonds right now, consider a short term Certificate of Deposit or a good Money Market account. Try to pay down your debt so that you have a credit cushion and try to build a cash emergency fund of three months worth of expenses in case you get laid off.

Are You Throwing a Clone of Bessie On The Barbie?

While doing some research this morning, I came across a Reuters article about cloned meat and dairy products coming to a store shelf near you! I am a huge beef eater. My favorite foods are Barbied steak (not to be confused with Barbie dolls) and prime rib. I love a T-bone steak that's about an inch thick marinated in red wine and garlic. Would I eat it if it were a cloned animal? eeeeew--don't think so. I know intellectually that a cloned animal is probably no different than a traditionally raised animal and the Food and Drug Administration is saying that cloned animals are just as safe and they have even approved the clones for sale. How do they know that it's safe? They reviewed available scientific reports. Cloned cattle, pork, and goats all got the executioners green light to be sold in the meat and dairy section. For me it's the Frankenstein image---that and the memory of mad cow disease (not that it's related-- I just have a wee bit of a trust issue there.)

It will be a while before they sell Bessie1 and Bessie2 because of the costly nature of cloning and weeding out the extra legs that are produced (just kidding).

60% of people surveyed have said that would not eat cloned meat because of religious, ethical or squeamish reasons and many food manufacturers such as Kraft and Tyson have said that won't use cloned meat or dairy in their products not because of health concerns but, because of the public perception and non-acceptance of the practice.

I wonder if they will try to clone and pass of a race horse? I think that the Jockey Club would have an issue with that!

The cattle in the picture are Idaho free range cattle and not cloned.

Dollar Cost Averaging---Is It A Good Idea?

The concept of dollar cost averaging is that you take an amount of money say $200 and invest it at the same time every month or every quarter, what ever! You just invest the same amount at the same interval. When the market is low you pick up more shares of a particular stock or mutual fund. Over a long period of time like several years this technique helps to reduce market risk and effectively helps you to save and invest. If you invest in a mutual fund this will also help you to reduce the risk of a particular company as well.

If you have a gigantic amount of money to invest like an inheritance, I would invest the whole enchilada at once rather than eek it out over time using the dollar cost method. I think that a sound portfolio over the same period of time would give you a better return. I mean, I would never let a large chunk sit in a savings account slacking off like a loser when it can be working for me! A good mix for a portfolio is to take 100 and subtract your age--put this percentage into stocks, take %10 and keep it in cash and put the rest in a bond fund or Treasury bonds, or corporate bonds.

If you are struggling to save and invest I would go with the dollar cost averaging technique. You can set up a good stock mutual fund for about $2500 and add the $200 at the same day of each month. You can have the amount automatically transferred into your investment account.

If investing is new to you, select a brokerage house that has a good reputation and that has been around for a long period of time. My favorite is Fidelity Investments. They have excellent customer service and management.

The Merger of XM and Sirius Radio

Fox news is reporting that the chairman of the Federal Communications Commission, Kevin Martin is recommending the approval of the $5 billion merger of the two satellite radio companies XM and Sirius. Mr. Martin agreed to the merger after the two companies provided concessions that would benefit consumers. The provisions offer:

• Turning over 24 channels to non-commercial and minority programming


• "Open radio" standard to create competition among satellite radio manufacturers


• A three year price freeze on services for consumers and an "a la cart menu" system to choose from.

The merger was approved by the Justice department in March and has had an expensive and intense war leveled against it from the National Association of Broadcasters, land based radio groups, and consumer groups who fear a monopoly.

Torinos Cheesecakes & Tortes

My mom came up with her idea for a small business about a year ago selling flavored cheesecake. It took her a little over a year to develop the cheesecake recipes, get all of her licences and food handling training, and find a commercial kitchen that she could rent to bake the many different flavors of cheesecake. Together we created a website for Torinos Cheesecakes and Tortes --being a creative person she designed the logo. We finally opened the online cheesecake store this week.

I was talking to her recently about the many different cheesecake flavors and she mentioned offhand that she can make a great many of flavored cheesecakes safe for diabetics or glucose intolerant diets and you can't taste the difference! I have a serious problem with my blood sugar and keeping it in control and I love it when I come across something that I can eat, that tastes good and won't throw me into a coma at the end of the day! She said she is going to work on a list of cheesecakes that she can make safe for glucose intolerant diets and we will add it to her web store. I think I will request a Macaroon toasted coconut cheesecake or a Marco De Plaza Mocha--you know just to taste test.

The picture is of my friendly neighborhood moose cow. She is still a baby--less then a year old. She doesn't look too healthy, you could count every rib but, then again we had a harsh winter this year.

On Wolves and Men

It is finally starting to look like Spring here. The wild flowers are starting to pop up among the sage brush in the hills where I go out to run in the morning and occasionally I will see a herd of antelope out there. The cows have their calves in the pasture in front of my house and here and there you can see new born foals laying along side of their mamas. I had a young moose cow run down the road in front of my house a couple of days ago!

I read a report in the paper a bit ago about a young rancher that lives down south of Yellowstone Park and he said he had a pack of wolves come on to his ranch up by his house and into his corrals and started after his horses. He shot and killed two wolves to protect his horses and his family! legally, he has the right to do this but, he said he is getting it pretty hard from the pro wolf folks. According to the Idaho Fish and Game report for April 2008, the number of livestock kills aren't high but, they look like they are doubling every year and becoming a problem. Between the end of March and the end of April 2008, twenty wolves were killed either by ranchers for livestock(3),USDA Wildlife services for depredation of livestock(12), illegal kills(2) or vehicles(2). With that many wolves being killed due to depredation on private ranches I think it's starting to look a wee bit like Jurassic Park here!

I'm not an anti-wolf person, I had two wolf buddies for a long time until they died of old age and cancer. I think they are beautiful beings full of intelligence and wonder but, I know them well enough that I wouldn't want to come face to face with a wild pack out in the woods either!

I understand that the rangers up in Yellowstone are using rubber bullets to deter the wolves. Some of the wolves are losing their fear of humans and have been getting to close to them on the roads. If you ever visit Yellowstone remember to stay in your car when you are around dangerous animals and keep plenty of distance between you and the animals. One time I was up there and a man and his children were out of their car standing about ten feet away from a pair of grizzly cubs taking a picture and eating ice cream cones(I'm not joking!) The mother couldn't have been far away so, I started yelling at him to get his kids in the car and protect them! They didn't speak English so, they just looked at me like I was a crazy person. The ranger came by shortly after and put them back in their car.

I found a great map of Idaho that shows where the wolves are hanging their hats. I'm out closest to the copper basin pack. I have heard them early in the morning while walking out there but, haven't seen any yet. http://fishandgame.idaho.gov/cms/wildlife/wolves/state/07_activity_map.pdf

A while back I wrote a post Called The lovers and Haters of Wolves. If you would like to read it you can at http://pennyrielly.blogspot.com/2008/04/Lover_and_haters_of_wolves.html/ The post was about a website called http://saveourelk.org/

This website is kind of an anti-wolf pro--maybe--pro elk hunter or elk lover site, I can't tell which. They do come out and say that the wolves are decimating the elk herds in Idaho and back up their reports with rather graphic photos. I believe that elk is the favorite diet of wolves so the site doesn't phase me too much.

I recently had a comment from Onward about that post that read;

"and, according to Joy Gold of the Smithsonian Institutes's Zoology Department there's not a significant difference between the wolves reintroduced into Idaho and the non-viable population and the remnant that was there."

I don't know about that. It seems to me that the population is increasing significantly and depredation of livestock is becoming a problem. I think to a pack of wolves--that slow moving animals in a corral or range is probably the equivalent of the drive thru at Mcydees!

I looked Ms. Gold up on the net and I think she must be an extraordinary person. She seems to have a strong interest in the same animals that I love especially whales and dolphins.

Also, my favorite skate shop Five-O is hosting a skateboard contest. It will be a giant game of Sk8 in their parking lot this Saturday on May 17 at 7pm-ish. If you like to skateboard and you are in the Idaho Falls,Idaho area, stop by it's always a fun time.

I always appreciate and welcome all comments. Check out the wolf map though, It's totally fascinating!

The Many Splended Forms of Legal Business Ownership

When you have come to the conclusion to start your own business, one of the first decisions that you will need to make is how you will set it up as a legal entity. Whether you are thinking about a Sole Proprietorship, Partnership, Incorporating or forming a Legal Liability Company, there are considerations with each legal entity.

Sole proprietorship

This is probably the easiest form to set up. Sole proprietorship is good if you want to have complete control over your business. Legally, you and your business are the same entity. You own all of the assets and all of the revenue generated by it. You are however, completely liable for any debts or legal judgments against your business and it places your personal assets at risk as well. In addition, being a Sole Proprietorship could put you at a disadvantage if you need any financing.

Partnership

In this form of legal entity two or more people share in the ownership of the business. As a partner, you are jointly and individually responsible for the actions of your partner. Also you will have to share the profits with your partner. The good things about partnerships is that it might be easier to raise money and your partner might bring needed skills.

Incorporation

A corporation is legally, an entity all of it's own so, any debt or liability is tied to the business itself and not the original owner. With this form of business you will have to give up control--the shareholders own the business and will elect a board of directors. A corporation can be taxed ,sued or enter into a legal agreement. It generally costs more to set up then other forms of ownership and will result in higher taxes. Also , it will be regulated by the state and will result in more paperwork. The good points of Incorporation is that shareholders have limited liability. Also you can raise capital by issuing shares of stock and if the original owner dies the corporation lives on.

The Limited Liability Company

With the Limited Liability Company the owners are members and the duration of the company is determined when the paperwork is filed. The LLC has the limited liability features of a corporation and it also has the tax efficiencies and flexibility of a partnership.

Starting Up A Small Business

So many great businesses have been started in the garages or kitchens of American Entrepreneurs. Hewlet-Packard developed their first computer in a garage. The same thing can be said about Google--although I understand there was a hot tub involved as well! What does a garage do to inspire so many entrepreneurs? Probably, just the large empty inexpensive space that can be filled with tables, boxes of wiring and junk and what ever. If you think you have the next greatest smoothie or cookie-- If you have a dream(usually it is more like an obsession) of starting your own business there are a few simple steps that you can take to get started.

• Write up a business plan detailing your venture, use this as a road map of how to go from start to success. It can be a simple plan of what you think you will need to get started and become competitive or it can be formal and detailed. You will also need a formal business plan if you think you will need financing.


• Check with your state to file an application for a business license.


• If you live in a state that has state income tax you will need to apply for an employee identification number (EIN).


• If you have any employees so far, then contact your state Department of Labor and file with them as well.


• Also you will need to find out if the name you have picked out for your business is already being used or a similar name is being used so that you don't get into trouble with trade mark infringement. You can do this through your Secretary of State Department.


• If you plan on making any food products you will need to check with your city's Department of Health for a food handling licence and find a commercial kitchen to work out of. You can look for a commercial kitchen through your Small Business Administration, Business Incubation Centers, and even your Parks Department.


• You can develop your recipes and ideas in your own kitchen--just go formal with a food handling licence when you plan to sell your food items.

As you plan your business keep in mind that it can take many months and in some cases years to make your dream into a profitable business. Make sure that you have a stream of income during that time while you are working on your new business. Also perseverance, hard work and believing in yourself and your idea are the keys to making it a reality. Never give up!

Should You Buy A Home Or Should You Keep On Renting?

If you currently don't own your own home you might be wondering.... should I take on a mortgage loan and buy a house or should I just keep renting?

To figure the question out of mortgage loan or rent, you need to do an analysis on the cash flows of buying a home and mortgage verses renting. Also you would need to determine the length of time that you plan to live in the home or area.

The cash outflows from renting would be:

1. A security deposit
2. Utilities
3. Monthly rent.

The cash inflows would be:

1. The deposit returned when you leave
2. Any monthly savings in the difference of a lower rent payment verses a home payment.

When buying a house the cash outflows include:

1. The down payment on the house
2. Points, closing costs
3. Mortgage payment
4. Property taxes
5. Insurance
6. Home maintenance costs
7. Utilities
8. If the house eventually sells for less than the purchase price.

The cash inflows :

1. Tax deductions for interest, points, and property taxes
2. Any rental income from the home
3. The appreciated value if the home sells for more than the purchase price.

Also consider the length of time that you plan to stay in the area. If you plan to stay for many years then buying a home might have an advantage--a fixed rate monthly mortgage payment will stay pretty much the same over the course of time that you spend there where your rent payment will increase to keep up with the rising rate of inflation and the supply and demand of apartments or rentals.

If you plan to stay a short period of time then renting might be a better option because of the cost of the down payment,points and fees associated with buying the home.

Stretching Your Retirement Buck--The Reverse Mortgage

As my mom spins into retirement she is on a never ending quest to increase her retirement income and make her life more enjoyable. At some point I suggested that she check out reverse mortgages and see if that would work out for her. She loved the idea and applied for the loan. She loves her home and it's in a good safe neighborhood so, she has no interest in selling her house and moving to use the equity. The reverse mortgage increased her income by over four hundred dollars a month and she has been delighted with the extra money.

Many people aren't aware of reverse mortgages. If you own your own home and have equity built up in it, you should consider a reverse mortgage to help generate extra income as you retire and make your life more comfortable.

You need to be 62 or older to obtain a reverse mortgage and how it works is that You obtain a loan based a percentage of the equity in your home. The lender will pay you monthly payments depending on the terms of the agreement usually until the day you die or until you move out of your home. In the end your home is sold to repay the loan--usually after you die, (grim huh?) If you decide to try out a reverse mortgage read the terms of the agreement carefully and ask any questions of the lender that you might have. It's something to think about anyway.

The Home Equity Line of Credit

If you have equity built up in your home consider applying for a home equity line of credit. Home equity, which is the difference between the market value of your home and the outstanding balance of your mortgage can be used as an asset to secure lines of credit. Is it a good idea to use the equity in your home to secure a loan?

The good points of using your home equity for a loan are:

1. Because it is a secured loan interest rates are lower than other forms of consumer credit
2. The interest paid on a home equity line of credit is tax deductible.
3. No repayment obligation exists until funds from the home equity line of credit have been accessed.

The drawback of using the equity of your home to secure a home equity line of credit or a second mortgage is that if you can't repay the loan you will be forced to sell your home to pay the debt. In some areas where home values have dropped you could find yourself owing more then the home is worth. If you wind up in this situation the home will be sold and the original home lender will be paid off but the remaining balance of your home equity loan will still be owed by you.

The lovers and Haters of Wolves.

The first light of the day is starting to break and I am on my second cup of coffee--I love Starbucks Kenya coffee. A huge owl is sitting on my roof outside and his song is the only sound I can hear. It is a peaceful and relaxing calm. Ill try not to be too superstitious about it. The last time I had an owl stop by I had a death in the family.

A friend of mine asked me to look at a website called Save Our Elk and I have been checking it out this morning. http://saveourelk.com/

It looks basically like an anti-wolf pro-hunter website with rather graphic pictures of elk that have been killed by wolf packs. The website didn't excite me too much after all the elk is the natural prey of the wolf but, looking at the pictures the wolves do look like vicious and wanton killers. I would hate to see this devastation in livestock herds or my own pets or children. When it comes to protection, my son's BB-gun just isn't going to cut it, I can tell. The website talks about the decimation of the elk herds and how the wolves will kill just for sport. Looking at the website you can understand why ranchers, hunters, and the people living in this area would be concerned about the growing wolf packs and the desire for an effective management program.

Just so you know from the get-go I have always loved wolves. They are one of my favorite animals and I know quite a bit about them. Several years ago when the government decided to reintroduce Canadian Grey Wolves into Idaho it worried me considerably. As desolate and wild as Idaho still is, it isn't desolate enough for packs of wolves to populate at the rapid pace that is now occurring. A wolf can travel 60 miles in one day bringing him into populated areas or ranch lands.

A rancher friend of mine called me last night and told me that they are branding this afternoon. I was invited out to a ranch last fall and watched them brand the calves. It's a way of life that is far removed from the urban sprawl and super centers. The range land was beautiful and undeveloped with rivers,cottonwood trees turning yellow leaves and sagebrush every where with elk and deer herds sharing the land. It was dry and dusty but sunny and crisp--a typical fall afternoon. They drove me out to the corral in their pick-up--thank God they didn't ask me to bring my own horse! She is a big Thoroughbred and has out grown her horse trailer and I have never replaced it. They herded the calves into a corral and the cowboys and cowgirls roped the calf, branded it, and then castrated it all with in a five minute period and then the calf trotted out.

Multi Level Marketing Opportunities and Pyramid Schemes.

My mother maintains a vendor booth at an indoor swap meet and farmers market in her city. She is keeping it mainly to promote her cheesecake business by handing out samples and business cards. She also likes to go to meet new people and has made friends there.

She called the other day and was a little vexed about a man that befriended her there. She said he was really charming and before long had pulled up a chair inside of her booth and had just kind of moved in-- talking about how he was recently widowed, etc, etc. Then all of a sudden he started pressuring her into some business deal where she would invest $1,500 dollars and she could make loads of money in return. He handed her some glossy pamphlets that looked professional. My mom responded to his gesture with, "aren't you just running a pyramid scam?"

"Oh no--that would be illegal. Just invest $1,000."

"I'm not giving you a $1,000!"

"Just five hundred then...you can write me a check."

So then, to get rid of the guy, my mom says,"My daughter Penny handles all of my business and finances." So she gives him my name, phone number and address! So, I have that to look foreword to--a call or visit from Ralph--you would think that being a con-man and all he would change his name to Alfonse or Jonathon or something wholly more attractive and affluent sounding. I am looking foreword to it...almost salivating at the thought...oh yeah...it's on Ralph!, it's on like Donkey Kong!

Multi level marketing is in many business opportunities a legitimate form of selling products. The difference between a legitimate multi level marketing business and that of a pyramid scam is easy to spot. The legitimate multi level marketing company places an emphasis on selling a product where the pyramid scam places an emphasis on recruiting people or asking for investments and in some cases like gifting clubs they will ask for donations where you in turn will recruit people below you to ask for donations or investments. The gifting clubs will sometimes use religious "feel good" terms or names like Renewal Celebrations or Jacobs ladder and might come as a special invitation from a church member.

A pyramid scheme is set up so that there is a hierarchy where people are recruited below those who have been previously recruited. Those who have been recruited make payments to the people above them in the hope of making their money back by recruiting others and gaining payment from them. In pyramids, most of the sales are made to the recruits and not the general public. The nutritional supplements or what ever they have going only serves as way to make the scheme look legitimate.

1. Never feel pressured into joining a multi level marketing group.
2. Never feel pressured into signing or investing in something that you aren't sure of.
3. Take the time to investigate any business opportunity.
4. Check the business out on the Better Business Bureau website at http://welcome.bbb.org/
5. Never make investments at the swap meet!

Always keep in mind, that it's a felony in the United States to participate in a pyramid scheme and is punishable by fines and time in jail. People participating in the scam are viewed as engaging in illegal activities rather than being a victim.

Satellite Radio as an Investment

Long ago and oh so far away

I fell in love with you before the second show

your guitar, it sounds so sweet and clear

but your not really here

it's just the radio.......

I heard a remake of this classic beat Superstar by The Carpenters not too long ago on my favorite XM satellite channel Ethel. It had a new edgy techno feel that was both hauntingly beautiful and familiar. I started to blink away tears when I heard it. On Ethel I know that I can find the edgy and the alternative that my heart craves. It's music like this that keeps me tuned into my XM channels, that, the superior sound and the lack of commercials (on 69 0f the 170 channels). Really, It was love at first sound! To me it's worth the annual subscription price of $143.00.

"If you love it so much, why don't you marry it?"

"O.K., I will."

I decided to look into Satellite Radio as a stock pick and was slightly shocked at what I found. The analysts opinions on XM Satellite Radio Holdings, symbol XMSR, were all over the place with most of them being in a neutral position not really recommending it but, not actually dissing it either. Today, they are leaning toward a buy position.

There is a friendly merger between Sirius Satellite and XM satellite that has been going on for over a year and it has been held up by the Department of Justice and the Federal Communications Commission. They need to approve the merger. The Federal agencies have a fear that combining the two companies will create a monopoly in the medium and hurt competition for consumers. I don't believe so. You can easily switch over to FM/AM, your CD player, your Ipod, your DVD player etc,etc...... I am optimistic that it will go through eventually. In my opinion, they need to merge for both to survive and thrive at all.

In the event of a merger you want to look at the company that is being bought, this is the stock that will rise--if it's a good fit and can benefit the company acquiring it. In this case XM is the one being bought.

I took a look at the financial statements and ratios of both companies and understand why the analyst opinions are so varied. Presently XMSR stock is at $11.35 a share with a beta of 1.2 which makes the stock slightly riskier than most. It has increasing annual Revenue which is good but, their Expenses are so high that it entirely wipes their Net Income. It might just be the nature of the satellite radio medium though--Sirius had similar results. XM has no P/E ratio or dividend, which isn't uncommon for a fairly young company. I would classify it as a highly speculative stock investment.

I ended up picking up fifteen shares of XM but, they say that love is blind.

O.K. so, I did marry it but, there was a shotgun involved and I might get an annulment by the end of the year--but, at least I was wearing underwear!

http://xmradio.com/

Hostile Takeover Attempts "I'm Going to Disneyland!"

I think it's a good idea to own stock in the Walt Disney Company if you have children in your household. It teaches them how a corporation is run, how to read the financial statements, how to invest their money, and learn about new movies and rides that are coming out before the general public does. Kids can easily identify with the movies, T.V. and theme parks that are run by Disney.

I remember sitting in the theater when the first Pirates of The Carribean movie came out. When it was over, my oldest son who was eight or nine at the time turned to me and goes, "we are going to make so much money off of this!" Here, I was just thinking about where I could put a tattoo of Captain Jack's name on my body! Anyone who can take a drunk, slightly effeminate pirate with bad teeth and make him that appealing deserves an Acadamy Award!

Growing up my parents kept stock in Disney and we would go to the annual stockholders meeting at the Anaheim Convention Center. This is how I became interested in Corporate Finance and Investments. Children were welcome to stand up and ask questions of the Board of Directors or make suggestions. At the time they would always show a movie that was "in the works" and give shareholders free passes to Disneyland across the road there. They don't do this anymore, I think the shareholder's meeting is in New Mexico this year--I'm sure Alburquerque will be just as much fun as going to Disneyland.

One year at the annual shareholders meeting for the Disney Company, A group of Corporate Raiders had been buying up shares of the company and tried to take it over. The word was that they were going to buy up Disney and then dismantle it, selling off it's various attributes. At that time The Walt Disney Company lacked vision and innovation in it's leadership, especially in it's movie making capacity. It became a target for a hostile takeover attempt.

When a company wants to grow either in a new direction or expand in the same capacity it will look to a another company that has the attributes that are desirable for it's expansion and try to buy it. The buyer can go directly to the management and make an offer or it can bypass the management and make a tender offer to it's shareholders. This becomes a hostile takeover attempt. They will make a statement offering to buy each share of stock for a certain amount of money--usually a great deal more than it's worth. The aquisition company will attempt to buy up as much of the target company's stock as to have a controlling share of the company and take it over.

Can the target company prevent a hostile takeover from occuring? If a company is the target of an aquisition there are measures that they can take to prevent the action.

• Pac-Man: This is where the targeted company turns around and attacks the company by buying up it's shares in an attempt to take control of the attacking company.


• The White knight: At the request of the company being targeted for takeover another company can come in and buy up shares at a higher value than the aquisition company coming to the rescue of the target company.


• Poison Pill: The target can issue stock to it's investors (except the aquiring firm) at a discount so that there are more shares that are out there for the aquiring firm to have to purchase making the buyout more expensive.


• Golden Parachute: This is a provision where the aquiring firm will have to pay the management of the target company large sums of money if a takeover happens.


• Suicide Pill: The target company will ruin the company rather than let it be bought out.
  

At the end of the day The Bass Brother from Texas came in to Disney and bought a controling interest saving Disney from a hostile takeover. The new management team of Micheal Eisner, Jeffery Katzenberg, and Frank Wells was introduced. Over the following years the company was revitalized with the new leadership and vision.

Should You Invest In a Franchise?

My brother-in-law came to the United States from Damascus, Syria. There, as a young man in his early twenties he was trained and worked as a Chef in the Sheraton Hotel in Damascus . It was his American dream to come to the United States and open a restaurant of his own. After many years of saving, he and my sister had the money to invest. They chose to go with a franchise instead of creating a resturaunt of their own. With a franchise they would be able to have a turnkey business that has been established in the area and receive support and training. Most importantly, with a franchise they would have brand recognition and customers that were familiar with the restaurant. They chose an upscale hamburger franchise in Southern Californa. They met and liked the owners and talked with other franchisees in the franchise network so they would know what to expect. They were able to watch the restaurant being built from raw land and into a brand new establishment with a fabulous kitchen! They have been very successful and happy with their decision.

A franchise will typically offer the prospective franchisee:

• An established business name, trademark, customer recognition


• Business support (business plans, help with location, training)


• Help with financing


• Proven track record


• Product

The downside of opening a franchise over an independent small business:

• Monthly franchise fees of around 6% to 10% of gross sales


• Loss of freedom in product or services


• Reliance on the performance of other franchisees in the system.


• The franchise can terminate your agreement at the end of your contract term.


• You are leasing the trademark name you do not own it.

If you are considering investing in a franchise:

• Evaluate the amount of money you have to invest in the venture.


• Go to Franchise trade shows and talk to the various franchisors and determine what kind of work you would like to do.


• Have the franchisor back up any financial claims with tangible written documentation. The Federal Trade Commision requires all franchisors to provide prospective franchisees with a complete disclosure statement so that the franchisee can make an informed decision.


• Look at franchises that have been in existence for a long period of time--they have a higher rate of success and profitability.


• Talk to other franchisees in the franchise system to find out what you can expect in terms of operation and profit.


• Look at the annual sales and make sure they are increasing and not declining. Do the same with net profit.


• Don't rush into anything. If you feel pressured --walk away.

Check any prospective franchise opportunity for complaints with the Better Business Bureau at

http://welcome.bbb.org/

If you would like any further information to evaluate if a franchise is right for you, The Small Business Administration is an excellent place to start. They have great resources and people trained in helping you to start up a small business including financing options and research materials.

http://www.sba.gov/

Roaming Wolves

The snow is up to my thighs now and it's getting hard to go out and feed my horse. A herd of deer have been coming into the yard at night and eating my pine trees and sharing with my mare from her manger. It is unbelievably cold here! It was -16f when I took my son to school this morning. He has been home from school for over a week now because of the bitter cold and snow. I am waiting for the school to call and cancel again today and have me go pick him up. I home school my youngest son so, he never gets snow days. I pulled him out of his elementary school about a year ago and I will probably home school him for another year. Yesterday most of the roads were closed around Idaho because of unsafe driving conditions and we just hung out and played Rock Band and watched DVDs. I am good at drums and singing but, I get kicked off stage if I try to play guitar.

Our friend Zane called. I have known him since he was five and we have seen each other through some hard times. He has a good heart. My son has two friends that I love and adore. One has moved away to go and live with his dad. I don't get to see him too much any more and I miss him terribly. It broke my heart completely when he moved. It's hard to feel that he has moved on and has another life without me being a big part of it. I don't know, I think that you love and become attached to people but, I always seem to lose those that I love the most in life.

Zane comes from a ranching family in the area and even though he is young, he works at his ranch and has many of the responsibilities of an adult. He does this and juggles basketball and school as well. He has the most beautiful mare named Peyton--after his favorite quarterback. She's a brown and white Paint with blue eyes. He bought her as a yearling and he and his dad broke her( I don't think that's the right term anymore, it would be more like "gentled" her to ride.) He loves working out there on the ranch with his dad and always mentions it. I think it would be a great life if you didn't have to go out in sub-zero weather to work. He said that he has a new calf he is nursing. The mother abandoned it and he is taking care of it.

We talked about a report of wolves in the area and debated about whether they were actually out there. There is supposedly two wolves running together behind my house. His ranch runs behind our property through the woods and along the river. The ranchers are calving right now so they don't want wolves roaming in the area. Neither of us have heard any wolves at night so, he thinks they are just coyotes.

Take Control of Your Financial Life! Create a Budget.

The single best way to take control of your financial life is to create a budget.

1. Creating a budget helps you to see exactly where your sources of income are coming from and where your money is being spent.


2. With a budget you will be able to see where expenses can be reduced to help you save money.


3. With a good budget you will be able to plan and make decisions about future expenditures and achieve financial goals.

To create a budget, gather data on your income and expenses. Three months of data is a good place to start. You can get the data from your checkbook register or online bank statements.

1. Start with a list of monthly income using the data collected for three months. You can then project your income for the rest of the year. Your income should be about the same for the upcoming months--adjust it if there are any changes.
2. list income from salary and wages, interest, dividends, self-empoyment income, and any other fixed income such as alimony.
3. Calculate a monthly total for all income.

After you have computed your total monthly income you can calculate your monthly expenses:

1. List your fixed expenses that must be paid every month first like house payment or rent, taxes, insurance, car payment, credit card and debt payments.


2. List your variable expenses like groceries, utilities, clothing, entertainment, any upcoming vacations, and savings.


3. Project your expenses by adding up the first three months of say--groceries and divide by the number of months (3) to get an average.


4. Use this average as your projected grocery amount for the upcoming months.


5. Do this with all of your variable expenses.


6. Include any upcoming major expenses that you know of like vacations and insurance payments.


7. Calculate a monthly total for all of your expenses.Subtract your total monthly expenses from your total monthly income to get your net income.


8. Try to keep your budget simple.


9. Round off dollar amounts to a whole number.


10. Look at your variable expenses to see if there are some expenses that you can cut back on and put into savings.

I have created an example budget for you to look at--just click on the link below.

http://spreadsheets.google.com/ccc?key=pw8uKsSvPJgdeEv3ebaTlLA&hl=en&pli=1

Where Should I Put My Money Now? Investing In A Rotting Stock Market.

1. 
   
   Even if the economy slips into a recession or slows to a crawl, there are certain industries that statistically have proven themselves to weather the storm. Don't think about the profits that were made yesterday or last year, look forward and long term. The economy for the year 2008 is expected to slow down considerably but, it will also will also come back in 2009. As the economy shifts you can expect the stock market to precede this slow down by one to three months. By the middle of Summer you should see the stock market rebounding as investors anticipate a better economy.
   
   Historically there are investment areas that do well in a bear market. If you are concerned about the economy and your portfolio, here are the best industries to invest in right now that are the least vulnerable to a slow economy. Think Basic needs like retail food, tobacco, soft drink manufacturers, cosmetics, utilities, pharmaceuticals.

Also Consider investing in companies that are doing business with China and India. China and India still have the hottest economies on the planet and their growth is expected to continue at a very lively pace. GE and IBM have both brought in decent profits with their collaborations with Chinese businesses. Also software should do well this year.

Idaho Snowboarding: Maverick Snowboarding in Mackay, Idaho

Mackay, Idaho is an unpretentious little town nestled in the peaceful valley of the Lost River. The town was founded by ranching, agriculture and mining. The town has successfully preserved it's western image and is home to the "Wildest Rodeo" in Idaho. It's not uncommon to find a cattle drive going on while you are in town. It is also home to many deer, elk, moose, wolves, bears and cougars. In Mackay you won't find any upscale resorts or shops here but, you will find a wild untamed setting perfect for maverick snowboarding and the perfect starting point for unlimited and uncrowded snowmobiling and cross country skiing.

Mackay is located about an hour and a half drive from either Pocatello or Idaho Falls, ID. After the snow falls and winter settles in, the town of Mackay regularly plows the road that winds up into the mountain behind the town. About three miles above the town is an abandoned mine with buildings still standing from a century ago and a few mine shafts as well. Drive about two miles up the road and there is a small parking space. From here you can find many good maverick snowboarding spots, snowboard down the hill or start your snowmobiling adventure!

Off of Highway 93 at the Burnt Lemon turn left and drive through the main street towards the mountain. This road takes you up into the wilderness behind Mackay.

The people of Mackay are always happy to have you here and while you are in Mackay, stop into the Burnt Lemon or Ken's club for authentic western hospitality and great food!

Starting an online business: The Goddess of floating deserts

I have been working on a website for my mom's new Desert business using a company that is a whole service web provider with different web site templates to chose from and step by step guidelines for building an e-commerce store front. So far it is working out wonderfully. I really like using this type of web service. They even have shopping carts and payment set-up!It really is amazing to me! One thing though is that we want to include pictures of her products on the website and the task is proving to be a wee-bit difficult.

The first photo shoot didn't go very well. She had someone take pictures of her standing over a table with her deserts arranged and decorated beautifully on a table with her posing in the back of it with her hands stretched out like, "here are my deserts--help yourself". She looked great, her deserts looked great,the trouble was that in the photos you can see the corner of where the walls of the room join. I asked her if she could shoot another roll of film and put them on a CD for me to get rid of the glaring wall problem. So she took a pair of scissors and cut out the picture of herself--the same one with her arms outstreched--and the deserts and took it in and had a new picture created eliminating the wall corner dilemma. The only problem now is that she also eliminated the table and the bottom half of her torso! So now she looks like the Goddess of floating deserts!

I'm sure that we will get it right eventually.

Idaho ranch life in winter

I and my two sons were recently invited to visit a working cattle ranch nestled in the desolate and gorgeous back-country of southeastern, Idaho. The snow covered country is rugged and beautiful with rolling hills, rivers and cottonwood trees. It was freezing out but sunny and a bit windy. In this country you see very few houses and the ones you do see are log houses or made of hand made brick and hand hew basalt from over a century ago. The ranch that we visited was a generational ranch founded seven generations before. When they founded the ranch there were Native American tee-pees dotting the landscape.

The ranchers walked into the barn wearing chaps and warm clothing and brought three teams of black and white draft horses out and hitched them to two sleighs and a wagon. They loaded massive bales of hay on to the sleighs and we jumped on top of them and rode the horse drawn sleighs out to where the cows were in a herd out on the range. We passed by a small river and the rancher had placed wheat flour out to feed the wild turkeys to help them through the winter and we saw many ducks and an Osprey fishing out of the river. Elk and deer herds also make this ranch their home.

The land on this ranch has remained the same for over a hundred years. Here you won't find the urban sprawl of housing tracks and discount stores just the quite peaceful symbiotic preservation of the ranching way of life and the wild life that make this area their home.

We went out and tore off the massive flakes of hay and threw them to the cows. It was hard work but, OMG we had a good time doing it! After we fed we rode back and the cowboys made a campfire and we drank hot chocolate and ate dough-nuts.

I took the pictures over to show my mom and the second picture was the first one that she looked at and she goes,"why is this man wearing shorts in the middle of winter?" She thought he was wearing some bizarre hot pants and leg-warmer combo! She didn't realize that he had a pair of leather chaps over his Wranglers. Yes folks he's not only a rancher but a Chip-N-Dales dancer!