Financial Coach Offers Solutions for Real People

– (June 2009) Robbing Peter to Pay Paul. Rubbing Two Nickels Together. Living Paycheck to Paycheck. Dorethia Conner has heard them all. Not just because of her more than five years experience teaching people about personal finance, but because at one time in her life she rehearsed and demonstrated them on a number of occasions. Conner, a single parent of two, found herself in a financial tailspin and knew that change was imminent but could not immediately find the help she needed. “No one taught me the ABC’s of finance. I had to wing it,”..........

Click Title for rest of the story or link below:

http://www.connercoaching.com/PressPage.pdf

http://www.dorethiaconner.com/ ~ info@connercoaching.com

Do You Have Time to Get Back in the Black? WSJ.com

by Dave Kansas ~ Wall Street Journal June 14, 2009

The past couple of years have proven tough for most retirement accounts. Diversification provided some respite, but, overall, most portfolios got mauled.

In recent months, the stock market has rebounded, but most of our nest eggs have still lost a lot of money since the market topped out in 2007. And all of us have lost a lot of time.
Alas, there's no such thing as a risk-free approach to rebuilding your nest egg. Super safe may feel nice, but it pays no returns over time. A few of us are in a position to live off a super-safe approach, but most of us are trying to figure out how to get back on track.

Figuring out how to deal with your retirement portfolio depends on where you are in your life. Time is perhaps the most important element in building or rebuilding a portfolio. That's one reason we're breaking down this nest-egg analysis into age groupings, aiming to give people some ideas that suit their current situation.

Click on title for complete story from The Wall Street Journal - Enjoy! - Dorethia

www.connercoaching.com

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800.962.2491

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Hard-to-Insure Find Novel Way to Get Coverage

By KELLY GREENE from The Wall Street Journal Wednesday May 27, 2009

People who have lost their employer-provided health insurance because of a layoff, early retirement or other reasons are turning to a little-known strategy to get coverage: forming a small business, or using an existing one, to buy a group policy.

The strategy is used by groups as small as one person, and is particularly useful for people with chronic health problems -- so-called pre-existing conditions -- that insurers refuse to cover or that result in steep premiums. Group health plans, under federal law, are required to cover such conditions, as long as the individual doesn't go uncovered for more than 63 days.

Click on title for complete story from The Wall Street Journal

New Credit Card Rules take Effect in 2010

by Dorethia Conner, Personal Finance Coach ~ http://www.dorethiaconner.com/

The Credit Cardholder's Bill of Rights has been passed and I for one am applauding. It is long overdue in an industry that has run rampant far too long. I'm not negating the importance of personal responsibility when handling credit, but do understand that the carefully crafted sales pitches can convince even the financially savvy at times.

I do not suggest using credit cards - for anything. With that said, I'm aware that 75% of Americans have credit cars and am glad there are some protections in place for them.

Credit card companies can no longer charge you to pay your bills by phone, online, or electronic transfer, nor can they raise interest rates for the first year. If a promotional rate was offered to attract consumers, they must offer that rate for at least 6 months. Any payments received over the minimum balance due will be applied to balances with the highest interest rates. Oh and no sudden increases in interest rates either, yes those little surprises have been done away with. Your interest rate can go up if you are 60 days past due on your bill.

The fine print must be made clearer, a kind of 'truth in lending' clause telling you how long it will take to pay off the credit card if only the minimum payment is made. This allows consumers to see on paper the cost of using their credit cards. Issuers must send bill 21 days before due date and card issuers will have to provide information on consumer credit counseling and debt management services.

There are also no more over the limit fees - I bet this has the card issuers cringing and rightly so. I'm not a fan of credit, but there have to be consequences for breaking the rules or more rules will be broken - right?

Anyone under 21 must have signature of parent or someone else who will be responsible for debt. (Okay, huh? Really bad idea - let's show them how to start their lives off in debt and burden their parents as well?)

So how will credit card companies offset some of the money they will lose as a result of the new rules? Well the annual fee to have a credit card will make a comeback and fewer promotional rates and reward programs will be offered. I'm sure we will see other changes as well before this law takes affect next February. Cash is still King in my book!

Do you have a friend, coworker or

family member that could benefit from

Financial Coaching?

Contact Dorethia:
info@connercoaching.com or 800.962.2491

Financial Coaching Available Nationwide!

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The Stimulus Plan in Plain English

Are you finding it difficult to make heads or tails of all this Stimulus Plan talk? Here is a simple explanation of what it means to you.

More Money in Your Paycheck

There has been a reduction in the amount withheld from your paycheck for Federal income taxes.

Individuals: $400/year if Adjusted Gross Income (AGI) is less than $75,000
Couples: $800/year if Adjusted Gross Income is less than $150,000
On average this amounts to about $13 additional in your paycheck each week.

Retiree Benefits

Do you collect...

Social Security?
Supplemental Security Income?
Veterans Disability?
Retirement Benefits?

You may qualify to receive an extra $250 check this summer.
Go to -http://www.socialsecurity.gov/payment


AMT Tax (Alternative Minimum Tax)

What exactly is the AMT? Click here for a detailed explanation http://www.fairmark.com/amt/amt101.htm

$500 increase in AMT exemptions for individuals with income less than $46,700 and $1,000 increase in AMT exemptions for couples with income less than $70,950.

With this change 26 million Americans won’t have to pay an AMT Tax this year!

New Vehicle Purchases

Car
Light Truck
Motor Cycle
Motor Home

Spend up to $49,500 and you can deduct State and Local Sales Taxes which in most states is 6% of the purchase price.

Who qualifies?
- Individuals who earn less than $125,000
- Couples who earn less than $250,000

You will qualify for the deduction whether you itemize or not.

(Okay, I’ve posted this for information’s sake, but the best way to buy a car for personal or business use is to buy used and pay cash)

Home Buyers

$8,000 credit for first time home buyers who purchase a home between January 1, 2009 and November 30, 2009.

Stipulations:
- The home must be your primary residence
- You must stay in the home 3 years
- If you fail to meet these requirements you will have to repay the money.

Did you buy a home between April 8, 2008 and December 31, 2008?

You may be able to qualify for 2008 earlier version of this credit. The 2008 credit maxes out at $7,500, however, and you have to repay the credit over 15 years - even if you stay in the home three or more years.
Check out this link for more info: http://www.federalhousingtaxcredit.com/home.html

Energy Efficient Home Improvements

Are you buying new windows this year or home insulation? The credit for energy efficient home improvements has been raised from $500 to $1,500.

The improvements include everything from new windows or water heater to a new central air-conditioning system for your home.

College Tuition

The Hope Credit: Increased to $2,500 (was $1,800)
Income Restrictions:
- Single: $80,000
- Couples: $160,000

The 529 College Savings Plan: The money in these accounts can now be used to purchase PCs/Laptops or Internet Access for students.

Unemployed?

If you were laid off between September 1, 2008 and December 31, 2009 and remain on your previous employer’s health insurance (COBRA benefits) – you will receive a 65% discount
on the premium for up to 9 months.

You also don’t have to pay taxes on the first $2,400 of unemployment benefits

Information on the 2008 Stimulus Payment:
If you didn’t file for the Economic Stimulus Payment for 2008 it may not be too late!

http://www.irs.gov/newsroom/article/0,,id=177937,00.html

Contact Dorethia:

www.connercoaching.com

800.962.2491

Homeownership...The American Dream? Not so fast...

A few weeks ago someone sent me an email advertising a mortgage for low income people available through the funds from the new stimulus package. The email stated that you only had to have an annual income of around $24,000 to qualify to buy your very own home!


Yes, only to wish you hadn't!! Why are we pushing low income people to buy a home? Even people with high incomes who also have high amounts of debt and poor spending habits should steer clear of home ownership.


It seems as if we haven't learned anything from the mortgage and economic meltdown. Because if we had we would be saying 'Hey, there's more to home ownership than simply paying the monthly note'.


Things like maintenance, repairs, taxes, and insurance. Not to mention your housing costs, whether it is rent/or mortgage, should not exceed 28 - 35% of your 'take home' pay. Some calculate gross pay, that's not realistic and 35% is on the high side, you still need to be able to save for life's incidentals...


I say rent, I don't care if it's you and 6 kids, cram into an apartment you can afford until your income goes up and you can buy a home on solid footing. Being uncomfortable is a lot better than being MISERABLE because you've bought a home you are struggling to pay the monthly expenses for! Ask the folks on either end of the income spectrum. We've all seen that regardless of how much money you make, if you over-extend yourself, you're still BROKE at the end of the day.


So don't let the ad campaigns get you again people. Do the math and make sure that home ownership fits in your budget - with room still left for saving. Make sure you can devote the TIME to caring for a house and don't be so caught up on 'owning a home'. As we can all see, the 'American Dream' has been uprooted....Create your own dream... hopefully it will include educating yourself and your family on effective money management as well as debt free living! - Dorethia

Use your tax return to invest in yourself!
Call today for discounted rates on
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Dental Credit Cards Drill A Hole in Some Wallets...

by Kelley Weiss from NPR.org

Weekend Edition Saturday, March 14, 2009
“People are being convinced to take on more credit than they can afford.”Elizabeth Landsberg, Western Center on Law and Poverty

It's hard to get credit these days, except when it comes to fixing your teeth. Across the country, dental credit cards are becoming more popular for those who don't have insurance or enough money to pay for a procedure. But a growing ......

Click Title for more of the story - Dorethia

My Two Cents: America is not learning from it's mistakes and consumers are still buying into the gimmicks and tricks of the credit industry. We've got to educate ourselves folks....

Bailouts, Buyouts, & Bellyups!!

Folks are whispering at the plant, holding meetings around the office water cooler. The corporation you work for is in the news...earnings down, layoffs inevitable - I HAVE A QUESTION....

Are you preparing for the Pink Slip?

It's not just a grapevine or rumor mill...this is the real deal - you may not have a job tomorrow. What are you doing so that the fall is not so hard? Did you receive a severance or buyout? Now is not the time for that Mega Entertainment Complex in your basement. Don't be among the folks who have gotten severance and buyout packages and foolishly blew through the money as if they had hit the $10m lottery. Now, they are suffering.

What to do if your company is threatening layoffs:

Stop spending (duh!) - I'm talking zero! No movies, no dinners out, no new clothes. Add all the money together from those little pleasures and SAVE it - you will be surprised at your progress.

Pay attention! - Read the paper, google your company and read all the news relating to the future of the company you work for.

Educate yourself on money management! - No more slacking! Balance your checkbook, be able to account for every dime you spend! Read, Read, Read about the areas you are weak in - master your money. (Ignore any comments that suggest going into debt for any reason)

Create a spending plan - (aka budget) Write it down!! (email me if you need a template) Also, list all your debts, know what you owe!

Look for a side gig! - Use a talent that can generate money without any major cash outlay. You could look for a job in fast food, Walmart, janitorial, - hey this is no time for pride issues.

Go to the Doctor - You, the kids, your spouse - dentist, family doctor, optometrist - get it all taken care of while you have a job!

Don't get discouraged by the numbers you see once you write out your budget, list your debts. Don't panic, everything can be worked out - it's NEVER the end of the world - no matter how bad the nightly news paints it!

Do begin to get your finances in order and stay away from any further debt.

-------------------------------------------------------------------------

Use your tax return to invest in yourself!

Call today for discounted rates on

Financial Coaching Sessions!!

800.962.2491

www.connercoaching.com

dorethia@connercoaching.com

What's in the Stimulus for YOU?

From The Wall Street Journal @ WSJ.COM
By ARDEN DALE, VICTORIA E. KNIGHT and JILIAN MINCER

Consumers get spending money and a helping hand with some key expenses under President Obama's stimulus plan.

By far the biggest tax piece in the plan is the Making Work Pay tax credit. It would put a bit of cash into pockets, probably by having employers withhold less tax. Each eligible worker would get 6.2% of earned income up to a maximum credit of $400 ($800 for two-earner couples). So folks would see an extra $12 to $20 per weekly paycheck, depending on whether the government pays it out over six months or more.

Many taxpayers will get the Making Work Pay credit, though it isn't open to anyone who earns more than $95,000 ($190,000 for couples). Its slow-drip approach is likely to stimulate spending, according to some tax experts. In hard times, people tend to stash a larger windfall in a savings account, says Roberton Williams, senior fellow at the Tax Policy Center, a joint venture of the Brookings Institution and the Urban Institute. An extra $20 each week, however, is more likely to get spent at the movies or on a piece of clothing.

First-time homebuyers also get a tax break under the plan.... Click title for rest of story -


~Dorethia
http://www.connercoaching.com
money management for real people!

Finish Your Business Plan in 3 Months!!!

Ahh, a business plan!!! Is the idea of tackling this task overwhelming in the midst of everything else on your 'To Do' list? Many entrepreneurs put it off, but the business plan is the foundation for your company. It is not just a document you need if you are approaching investors or banks for loans. Even if you are funding your business yourself you need a business plan!

You discover things about your methods, ideas, and industry when you have to put all your research and hard work down on paper. You can save yourself a lot of time and money when you have a written plan!!!

A Few Quick Tips!

1. Spend two weeks on each section: there are 10 - 12 sections in a business plan - two weeks on each section = 3 months.

2. Finish the sections that are the easiest for you first. If you already have an idea of your operations or company description -complete those and then tackle the areas you have to research.

3. Write the Executive Summary last as it 'summarizes' the detail of your plan.

The portions that may need a little more time is the research you will need to do for your Market Research, Industry and Competitive Analysis. But don't drag it out - set specific days and times to work on it and stick to your deadline!


Check It Out -

www.Score.org: Business planning and financial templates for startups and existing businesses

Score offers some one of the best templates I've found complete with explanations of each section - and they're free! No two-ton book to buy or carry around!!

Ramping Up Your Side Gig!!!

In times like these we cannot always wait for traditional means of earning an income only. Think of ways to earn money that maybe you wouldn't have considered before. What can you do that would not require a large cash outlay? For instance, a bucket, a mop, and some soap and you're ready to clean homes and offices.

Tap into your talents - what do you enjoy doing in your spare time? What are you good at that people praise you for? Maybe there's something you always wanted to do but never had the time. Now, may be the opportunity to make the time!

Handy around the house? There are plenty of women/seniors who could use someone to fix things up a little, clean out the garage, etc and would gladly pay.

Do you love children? Babysit for a family that works the night shift. The kids will be sleep for most of the time - parents pick them up as you are getting ready for your work day - easiest gig ever!

Do you have a way with words? You can write blogs, articles etc. for people who have great ideas but don't know how to articulate them.

Always loved English? (or Science or Math or Speech...you get the picture) Tutor a student who is struggling in that area.

Do you live in an apartment building or in a tight knit neighborhood? Offer to clean the inside of your neighbors cars weekly, do the outside as well if you can.

Are you a great cook or have a special family recipe? Make your goodies and sell to your coworkers, friends, etc.

Fitness as a hobby? Do you have some equipment at home or great workout techniques? You could charge $5 per person and let people you trust use your 'gym'

These are just a few ideas, there are endless opportunities unique to your situation!

TO DO:

1. Write down at least 10 talents/things you enjoy or can make money doing.



2. Which ones can you implement THIS WEEK? Develop a serious action plan to get started!!




Remember:

YOU decide the financial state of your household! Make it Happen!!!!

- Dorethia

Seven New Tax Breaks

By Andrea Coombes MarketWatch - Wall Street Journal

In all the hoopla surrounding the current stimulus package, it's easy to forget that other stimulus bill -- the one in 2008 that resulted in a good-sized check for many U.S. taxpayers. Forgetting about that earlier stimulus, and any of the other major tax changes in 2008, could mean missing out on some much-needed cash when you file your tax return this year.

There were six "pretty significant pieces of tax legislation" in 2008, said Mark Luscombe, a principal analyst with CCH Inc., a Riverwoods, Ill., tax publisher, including bills related to housing, farming, the military, pensions, and two on the economy.

Still, while all that tax tinkering affects most of us eventually, many of the changes last year were related to arcane rules -- and won't show up on our Form 1040s.....

Click title for more of the story - Dorethia

Citigroup Get's $50b Bailout, Buys $50m Jet

Bailout bank's new jet angers Levin

BY TODD SPANGLER • FREE PRESS WASHINGTON STAFF • January 27, 2009

WASHINGTON -- When Detroit's auto execs winged it to the capital to ask for government help, they got beat up like a has-been boxer. Is it Citgroup's turn in the ring?

Back in November the question was: How dare the automakers poor-mouth if they could still afford to fly around in private jets? General Motors and Chrysler had to give up their aircraft to get $17.4 billion in loans.

Citigroup, like some other beneficiaries of the $700-billion Wall Street rescue, got to keep its jets. Citi said Monday it was under contract to buy the jet, and was considering selling or leasing the aircraft.

Sen. Carl Levin demanded that incoming Treasury Secretary Tim Geither end "a ridiculous double standard."

What Are the Tax Credits for First Time Homebuyers?

From The Tax Dude - Neil Johnson

1. The tax credit is available for first-time home buyers only. Taxpayers who owned a main home at any time during the three years prior to the date of purchase are not eligible for the credit.

2. The maximum credit amount is $7,500. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 for either a single taxpayer or a married couple filing jointly. The limit is $3,750 for a married person filing a separate return. In most cases, the full credit will be available for homes costing $75,000 or more.

3. The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009. Only the purchase of a main home located in the United States qualifies. Vacation homes and rental property are not eligible. For a home that you construct, the purchase date is the first date you occupy the home.

4. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

5. The tax credit works like an interest-free loan and must be repaid over a 15-year period. For example, an eligible taxpayer who buys a home today and properly claims the maximum available credit of $7,500 on his or her 2008 federal income tax return must begin repaying the credit by including one-fifteenth of this amount, or $500, as an additional tax on his or her 2010 return.

Hopefully, this helps you understand the credit a little more. If you have any questions, please feel free to e-mail me directly.

Neil Johnson
The Tax Dude®
www.thetaxdude.com
taxdude@covad.net

$100 minus $95!!

A little boy wanted $100 badly and prayed for two weeks but nothing happened. Then he decided to write a letter to the Lord requesting the $100. When the postal authorities received the letter addressed to the Lord, USA, they decided to send it to the President.

The President was so impressed, touched, and amused that he instructed his secretary to send the little boy a $5.00 bill, as this would appear to be a lot of money to a little boy. The little boy was delighted with the $5.00, and sat down to write a thank-you note to the Lord.

It said: Dear Lord, Thank you very much for sending me the money. However, I noticed that for some reason you had to send it through Washington, DC and as usual, those jokers deducted $95.

McCotter Fights for the Auto Industry

http://www.youtube.com/watch?v=U7YBjjLKLd0
Click Here to Watch!!


The auto industry execs took a beating from Congress the other day so I was glad to find a seasoned voice to shed another light on the situation.

Now, don't get me wrong, I don't believe in throwing good money after bad and I'm not biased because I live in Detroit. I just find it ironic that the banks and insurance companies were practically thrown money with no rules or regulations whatsoever and the automotive industry is having to sign in blood and pinky swear.

The automotive execs should be held accountable, nonperformers should not receive massive bonuses and pay. They should restructure their business models and the unions should also join them in that restructuring. Once the LOAN is made, there should be clear cut repayment terms.

Now,they've gotten their beating and been sent to thier rooms, are we going to help them, which means helping American families or are we going to continue to play keepaway at those families' expense?

I thank Congressman McCotter for being the voice of reason in all this, please click link above to watch. - Dee

A young man was having some money problems, and needed $200 to get his car fixed and road-worthy again. But had run out of people to borrow from.

So, he calls his parents via the operator, and reverses the charge and says to his dad, "I need to borrow two hundred dollars."

At the other end, his father says, "Sorry, I can't hear you, son, I think there may be a bad line."

The boy shouts, "Two hundred. I need two hundred dollars!"
"Sorry, I still can't hear you clearly," says his father.

The operator cuts in, "Sorry to butt in, but I can hear him perfectly." The father says, "Oh, good. YOU send him the money!"

AIG To Get More Money?? You're Kidding Me Right??

U.S. Government Restructures AIG Bailout


NPR.org, November 10, 2008 ·

The government is providing new financial assistance to troubled insurance giant American International Group. It includes pouring $40 billion into the company in return for partial ownership. The Federal Reserve said Monday the government would...

Click Title For Complete Story..... - Dorethia

1 in 6 Homeowners 'Underwater' ........from WSJ

After a housing slump that has pushed values down 30% in some areas, roughly 12 million households owe more than their homes are worth.......

Click title for complete story...-Dorethia

Bookkeeping Tips for Small Businesses

Great tips found at www.onlineorganizing.com

Here's a little help for you fellow entrepreneurs out there! Click on the title for the article...Enjoy - Dorethia