Picking up Nickels

January 2012 Financial Asset Roundup

2012-01-11T13:41:00.003-05:00

Here are my current financial assets as of the market close on January 10th, 2012:

Asset	Dec 2011	Jan 2012	Change
Checking	728	289	-439
Money Market	40,865	58,347	17,482
Savings Bonds	52,421	52,536	115
Treasury Bills	0	0	0
CDs	88,269	66,940	-21,329
Brokerage	101,106	93,831	-7,275
401k	92,431	94,341	1,910
Roth IRA	47,447	54,184	6,737
SEP IRA	264,299	272,941	8,642
529 Savings	55,806	58,221	2,415

Total Assets	$743,372	$751,630	$8,258
			(1.11%)

The S&P 500 has been on a nice run since the last update, rising 4.50% (the highest level since July 2011) during that time:

(chart courtesy of msn.com)

With the S&P staying flat during 2011, I'm hoping that history will dictate that we're due for a strong run in 2012. On the jobs front, the unemployment rate for December continued the downward trend dropping to 8.5%, the lowest level since February 2009. Oil prices ticked up a bit to around $102 per barrel, with my gasoline purchases increasing by about 10¢ per gallon.

On the financial front, I am still mourning the passing of my 5 year Penfed CD @ 6.25% APY that I opened in January 2007. Boy, do I wish I hadn't been scared away by the one year early withdrawal penalty on the 7 year CDs back then. However, that blow is lessened somewhat with the recent announcement that the annual electronic savings bond purchase limits were raised to $10,000 per series at treasurydirect.gov. I plan on buying the maximum amount of electronic I Bonds later this month and will elect to receive any Federal tax refund I may be due via the paper I Bond "loophole" that still exists. In other financial moves, I ended up selling all of my Procter & Gamble (PG) stock in December and will be paying 0% Federal income tax on the long term capital gains as per the 15% tax bracket. Finally, I mailed in checks for 2011 Roth IRA contributions for both Mrs. Frugalson and myself last week. If and when she returns to the workforce after finishing graduate school in the spring, I can't help but wonder how long we have until we'll no longer be eligible to contribute to Roth IRAs. I hate to say it, but that's kind of a nice problem to have. :)

Other than that, I'm looking forward to the promise of a new year even as I start work on putting together the information for my 2011 business and personal tax returns. Hopefully the Mayans were wrong about that whole world ending thing in 2012...

Grocery price inflation update

2011-12-21T13:47:00.003-05:00

It has been exactly one year since my last grocery price inflation update.

Through November 2011 I have seen the largest growth rate in grocery spending (17.4%) that I have experienced since I actively changed my grocery shopping strategy to reduce costs more than eight years ago. In fact, once 2011 comes to an end I will likely come within a couple hundred dollars of the top dollar amount I have ever spent on groceries (roughly $7,200 in 2003).

At the root of my increased spending is an ongoing rise in food commodity prices. At the core, when the cost of things like livestock and crops rise significantly (along with the price of fuel used to transport the stuff), the impact on the consumer can be eye opening. One can only hope that cost increases will moderate somewhat, but the fact that prices have climbed so much during an extended economic downturn (when one would think demand would be reduced) is a bit of a concern.

Along with increasing prices, I've also experienced an ongoing drought of sales, promotions, high value coupons, and rebates that in the past have allowed me to purchase many items for pennies (or for free!). For example, this time of the year had typically been a great time to stock up on free top of the line razors and blades from the likes of Gillette and Schick (like this). Sadly, with Christmas four days away, I have yet to see a single free razor deal so far this holiday season. Heck, even less generous (but still worthwhile) discounts like the 10% bonus for buying gift cards at Shaw's Supermarkets were no longer offered in 2011.

In summary, I have closely watched my grocery spending for several years now and see nothing to indicate that double digit percentage grocery price increases (much like similar health insurance premium increases) will not continue for the foreseeable future.

December 2011 Financial Asset Roundup

2011-12-13T14:49:00.004-05:00

Here are my current financial assets as of the market close on December 12th, 2011:

Asset	Nov 2011	Dec 2011	Change
Checking	2,391	728	-1,663
Money Market	38,419	40,865	2,446
Savings Bonds	52,318	52,421	103
Treasury Bills	0	0	0
CDs	87,914	88,269	355
Brokerage	101,778	101,106	-672
401k	93,479	92,431	-1,048
Roth IRA	47,921	47,447	-474
SEP IRA	265,455	264,299	-1,156
529 Savings	55,544	55,806	262

Total Assets	$745,219	$743,372	-$1,847
			(-0.25%)

The S&P 500 has declined a bit since the last update, dropping 2.17% during that time:

(chart courtesy of msn.com)

On the jobs front, the unemployment rate for November dropped to 8.6%, a significant decline from the 9% rate from October. Oil prices have remained flat at around $98 per barrel, while I've seen my gasoline purchases decrease by about 16¢ per gallon.

On the financial front, I am sadly less than a month away from the end of my 5 year Penfed CD @ 6.25% APY that I opened in January 2007. With such unappealing CD options currently available, I have decided on allocating that cash among a mix of I Bonds, Roth IRA, and 529 Plan contributions throughout 2012. I will also be selling my Procter & Gamble (PG) stock this month to take advantage of the 0% tax on dividends and capital gains, although I seem to be holding out for a Santa Claus Rally that probably won't be arriving this year.

I'm also planning on providing an annual grocery price inflation update this month as I wrap things up for the close of the 2011 business year for my S Corporation and get prepped for what I hope will be another wonderful Christmas holiday with my family.

November 2011 Financial Asset Roundup

2011-11-11T15:38:00.002-05:00

Here are my current financial assets as of the market close on November 10th, 2011:

Asset	Oct 2011	Nov 2011	Change
Checking	456	2,391	1,935
Money Market	40,088	38,419	-1,669
Savings Bonds	52,224	52,318	94
Treasury Bills	0	0	0
CDs	87,554	87,914	360
Brokerage	99,478	101,778	2,300
401k	91,473	93,479	2,006
Roth IRA	46,600	47,921	1,321
SEP IRA	256,881	265,455	8,574
529 Savings	54,039	55,544	1,505

Total Assets	$728,793	$745,219	$16,426
			(2.25%)

The S&P 500 has once again shown some upside since the last update, rising 3.75% during that time:

(chart courtesy of msn.com)

On the jobs front, the unemployment rate for October dropped to 9.0% while initial unemployment claims also dropped to 7 month low. Oil prices have spiked a bit, rising from about $85 per barrel to almost $98 per barrel. We've also finally had some positive news about the European debt crisis as Greece and Italy have taken some steps toward addressing their debt issues.

On the financial front, I closed on a 15 year mortgage refinance @ 3.125% a couple of weeks ago with a small regional credit union. What I find particularly interesting is that we went from a 5.375% 30 year mortgage to a 3.125% 15 year mortgage and our monthly payment actually dropped by about $20! I'd also like to note that this was the best mortgage refinance experience I've ever had, with a 29 day turnaround from my initial application to closing and no requisite body cavity search because I happen to be self employed. I'm also planning to move a bit of my local cash that I currently have at Bank of America (the current home of my primary checking account) to the credit union since they have far better deposit rates and a branch that is a reasonable driving distance from home. While I certainly wouldn't mind completely freeing myself from BOA's clutches like the Bank Transfer Day crowd, they are worth sticking with for now just for their excellent bill pay service and many convenient locations (particularly the branch right next to my P.O. Box). While my new credit union has some decent rates and products, their web site and bill pay services are quite spartan and need a lot of improvement before I would consider using them as my primary checking account.

One upcoming financial event that I'm dreading is the death of the 5 year Penfed CD @ 6.25% APY that I opened in January 2007. It will be a major blow to lose that great rate and there just aren't many good places to put that cash these days. I'm leaning toward using the cash in a combination of 2011 Roth IRA contributions, an I Bond purchase, and a larger contribution to the young Frugalson's 529 college savings accounts. I suppose another opportunity may pop up between now and then, but I'm not holding my breath... :p

September CPI-U numbers released: October 2011 I Bonds are a strong buy

2011-10-19T08:46:00.005-04:00

The U.S. Bureau of Labor Statistics released the September 2011 Consumer Price Index (CPI-U) inflation data this morning, which increased by 0.15% last month.

As I have mentioned many times before, now is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for October 2011 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from March 2011 (223.467) and September 2011 (226.889) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for October 2011 issue I Bonds:

That would mean these bonds would earn a rate of 4.60% (using 0% fixed & 4.60% variable) for the first 6 months and 3.06% (combined 0% fixed & 3.06% variable) for the second 6 months. Even with a useless 0% fixed portion, this is a very strong investment when compared to the 1 year CD @ 1.36% APY currently being offered by DCU.

With the continuing uptick in inflation we're currently experiencing (including the first cost-of-living increase for Social Security recipients since 2009), buying October 2011 I Bonds ASAP is a no-brainer. With no large increase in the fixed portion expected in November and the discontinuation of the savings bond sales at financial institutions on 12/31/2011, now is the time to max out your paper and electronic I Bond purchases.

I'd also like to add one final piece of advice with regard to those planning on buying paper I Bonds at your local financial institution. I recently went to buy an I Bond for my niece at my local Bank of America branch and was surprised to learn that they have discontinued savings bond sales as of 10/1/11. If you are having a similar difficultly buying paper I Bonds locally, you have the option to purchase paper I Bonds by filling out the form at savingsbondsdirect.gov found here and mailing a copy of this form along with a check made out to the specified Federal Reserve bank.

My modest (yes, really!) health insurance premium increase

2011-10-17T13:39:00.003-04:00

Documenting large annual health insurance premium increases has been a rite of passage for me since I've started this blog. But lo and behold, I actually had a modest 2.1% price increase to maintain the current HMO coverage that I currently have with no plan downgrades or reduced benefits. In fact, this was the smallest price increase that I've endured without downgrading my healthcare plan (four times) since I started tracking this data in 2001.

Since 2001, my health insurance premiums have increased by 148% while the rate of inflation during that time is a much lower 28% (so says usinflationcalculator.com):

While I'm very pleased to have kept this profit eating monster at bay for a year, one thing I'm confused about is the reason behind this uncharacteristically low price increase. While I mentioned last year that I don't believe that President Obama's healthcare reform was the cause of large premium increases since costs started getting out of control long before he took office, I also don't believe that it caused this dramatic change in the typical price increases I've become accustomed to. And while this trend would greatly help our businesses and local/state/federal governments if it continues, I think the inevitable return to greater-than-inflation healthcare price increases will only hinder job growth, increase budget deficits, and add to the growing ranks of people without health insurance. Bah, humbug!

October 2011 Financial Asset Roundup

2011-10-11T15:07:00.002-04:00

Here are my current financial assets as of the market close on October 10th, 2011:

Asset	Sep 2011	Oct 2011	Change
Checking	2,405	456	-1,949
Money Market	33,124	40,088	6,964
Savings Bonds	47,154	52,224	5,070
Treasury Bills	0	0	0
CDs	99,784	87,554	-12,230
Brokerage	88,019	99,478	11,459
401k	89,544	91,473	1,929
Roth IRA	46,131	46,600	469
SEP IRA	253,194	256,881	3,687
529 Savings	52,904	54,039	1,135

Total Assets	$712,259	$728,793	$16,534
			(2.32%)

The S&P 500 volatility has continued since the last update, rising 3.52% during that time:

(chart courtesy of msn.com)

On the jobs front, the unemployment rate for September remained at 9.1% although hiring was stronger than expected. Oil prices have once again remained somewhat flat, falling slightly from about $86 per barrel to around $85 per barrel. And of course, financial uncertainty continues around the world with the European debt crisis and the "Occupy"protests across the country.

On the financial front, I had a 4 year Penfed CD @6.00% APY mature at the end of September and put $5k of that idle cash toward some Series I savings bonds at treasurydirect.gov. On a related note, we're also due to get the September 2011 Consumer Price Index (CPI-U) inflation data next week which should shed some light on Series I savings bond purchases starting in November. I've also been keeping an eye on the Procter & Gamble (PG) stock price, since I'll be looking to sell my position before the end of the year to take advantage of the 0% tax on dividends and capital gains.

On the borrowing front, I bit the bullet and am attempting to refinance my existing 30 year home mortgage to a 15 year @ 3.125% at a small regional credit union. The process has actually progressed pretty quickly, although I've come to find out that applying for the loan on the credit union web site has actually been less efficient and more convoluted than contacting their mortgage originator directly. Oh well, being self employed I was fully expecting a process akin to a full body cavity search anyway. :) Oh, and one more thing... I have taken the plunge and pre-ordered an iPhone 4s from Verizon to replace my ancient 4+ year old LG phone. It's probably a bit weird for someone with a technical background like mine to just be getting a smartphone now, but my dread of a higher phone bill has been offset by the increase in functionality and productivity that I'm hoping to gain.

September 2011 Financial Asset Roundup

2011-09-12T14:09:00.004-04:00

Here are my current financial assets as of the market close on September 9th, 2011:

Asset	Aug 2011	Sep 2011	Change
Checking	2,221	2,405	184
Money Market	33,108	33,124	16
Savings Bonds	47,098	47,154	56
Treasury Bills	0	0	0
CDs	99,358	99,784	426
Brokerage	92,534	88,019	-4,515
401k	88,600	89,544	944
Roth IRA	47,106	46,131	-975
SEP IRA	256,504	253,194	-3,310
529 Savings	52,925	52,904	-21

Total Assets	$719,454	$712,259	-$7,195
			(-1.00%)

The S&P 500 has remained volatile since the last update, dropping 1.56% during that time:

(chart courtesy of msn.com)

On the jobs front, the unemployment rate for August remained at 9.1% while the President is proposing a new plan to attempt to lower that number. Oil prices have remained somewhat flat, rising slightly from about $85 per barrel to around $86 per barrel. And somehow, all of our financial woes don't seem so terrible when compared to the memories stirred up by the 10th anniversary of the 9/11 terrorist attacks.

On the financial front, my 4 year Penfed CD @6.00% APY from September 2007 is due at the end of the month. I'll put $5k of that toward some Series I savings bonds at treasurydirect.gov, while a quite a bit more of that cash will be put toward paying the final tuition bill for Mrs. Frugalson's graduate school education (yay!) as well as the down payment for braces for the eldest of the Frugalson offspring (ouch!). Perhaps I'll take the left over cash and à la Trading Places, maybe I'll go to the movies... by myself. :D

And finally, a bit of thanks to Hurricane Irene for not flooding or causing our property a bunch of damage. Despite that, we were without power for 50+ hours and even that modest outage has motivated me to research a portable generator purchase. At least the next time we have an extended power outage, we will hopefully have running water and heat (for winter storms), and not have to throw away the contents of our fridge and basement freezer. Zut alors!

Come On Irene!

2011-08-27T14:42:00.003-04:00

We're currently on the hit list for Hurricane Irene, which is due to make landfall in New England sometime tomorrow morning. We're already getting hit with the outer bands of rain and I realized that I did not clean the gutters in the front of the house as I watched them get overwhelmed by the torrent of tropical H2O. :(

(map courtesy of National Hurricane Center)

I wish the best for the people south of us who will likely get the worst of it, and I'm hoping that we'll weather the storm with no floods, property damage, or extended power outages. Hopefully Irene will be as accommodating as Hurricane Earl was last year.

August 2011 Financial Asset Roundup

2011-08-12T13:46:00.003-04:00

Here are my current financial assets as of the market close on August 11th, 2011:

Asset	Jul 2011	Aug 2011	Change
Checking	1,779	2,221	442
Money Market	42,651	33,108	-9,543
Savings Bonds	37,051	47,098	10,047
Treasury Bills	0	0	0
CDs	98,944	99,358	414
Brokerage	106,900	92,534	-14,366
401k	102,095	88,600	-13,495
Roth IRA	52,121	47,106	-5,015
SEP IRA	257,164	256,504	-660
529 Savings	55,657	52,925	-2,732

Total Assets	$754,362	$719,454	-$34,908
			(-4.63%)

The S&P 500 has taken quite a beating since the last update, dropping 11.13% during that time:

(chart courtesy of etrade.com)

Despite the market volatility driven by the debt ceiling debacle and the follow-up S&P downgrade, the unemployment rate for July fell slightly to 9.1%. Oil prices have continued to decline along with the stock market, falling from about $94 per barrel to around $85 per barrel.

On the financial front, I have finally finished funding my 2010 SEP IRA contribution, which took some of the bite out of my financial asset losses since my last update. Also, in light of the announcement from the U.S. Treasury to kill off the sale of paper savings bonds at financial institutions starting in 2012, I decided to bite the bullet and pull the trigger on $10k worth of July 2011 issue Series I paper savings bonds ($5k with my ssn and $5k with Mrs. Frugalson's ssn) with the intention of following up with an electronic savings bond purchase next month. At this point, it makes plenty of sense to jump on any good deal for a place to put cash that you come across with the FOMC planning on keeping rates low for 2+ more years. :(

While there is not much to like with regard to personal finance these days, I was pleased to see the landscaper that fixed the $$$ flood damage in my yard last year drive by as I was writing this without stopping here. Thank goodness for small favors...

Wow, I have a five year old blog!

2011-08-10T13:09:00.004-04:00

As I've stealthily crept into year five with this blog, the financial world is going through yet another nosedive. And while the stock market has basically gained zero ground during that time, I've been fortunate enough to have my financial assets increase considerably during that period through a combination of frugality, saving, and investing:

(chart courtesy of msn.com)

Unfortunately, there isn't much good news to blog about when it comes to personal finances. Even the Federal Reserve seems to think we're years away from seeing the economy pick up some steam. Not very encouraging... :(

Update: The conspiracy to kill the U.S. savings bond

2011-07-14T13:42:00.003-04:00

Unfortunately, it is time to provide an update on my three year old rant about the death spiral of the U.S. savings bond.

Yesterday, the U.S. Treasury announced that as of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. Electronic savings bonds will be continue to be available at treasurydirect.gov ($5000 per individual per year), but annual contribution levels will basically be halved.

For now, there is still a loophole that will allow purchases of paper I bonds: Income tax returns can be used to purchase I bonds using IRS Form 8888. Is anyone willing to offer odds on how long it will take for the Treasury to make this purchase option disappear too? :(

July 2011 Financial Asset Roundup

2011-07-12T13:48:00.002-04:00

Here are my current financial assets as of the market close on July 11th, 2011:

Asset	Jun 2011	Jul 2011	Change
Checking	2,213	1,779	-434
Money Market	42,694	42,651	-43
Savings Bonds	36,991	37,051	60
Treasury Bills	0	0	0
CDs	98,537	98,944	407
Brokerage	103,145	106,900	3,755
401k	101,063	102,095	1,032
Roth IRA	51,296	52,121	825
SEP IRA	251,505	257,164	5,659
529 Savings	54,699	55,657	958

Total Assets	$742,143	$754,362	$12,219
			(1.65%)

The S&P 500 has recovered somewhat since the last update, up 2.37% during that time:

(chart courtesy of msn.com)

The unemployment rate for June rose for the third month in a row as it climbed to 9.2%. Rising unemployment, a struggling housing market, and the global sovereign debt crisis du jour don't bode well for the current "economic recovery". Oil prices have declined somewhat, falling from about $101 per barrel to around $94 per barrel despite the US and other countries releasing 60 million barrels of oil from strategic reserves.

On the financial front, my next domino to fall will be finally funding my 2010 SEP IRA contribution sometime in the next couple of weeks. I look forward to getting that milestone behind me.

Aside from that, it's hot and humid out there today and I need to find a cool and refreshing swimming pool with my name on it. :)

June 2011 Financial Asset Roundup

2011-06-10T13:37:00.003-04:00

Here are my current financial assets as of the market close on June 9th, 2011:

Asset	May 2011	Jun 2011	Change
Checking	1,500	2,213	713
Money Market	43,103	42,694	-409
Savings Bonds	36,931	36,991	60
Treasury Bills	0	0	0
CDs	98,121	98,537	416
Brokerage	112,724	103,145	-9,579
401k	105,621	101,063	-4,558
Roth IRA	53,350	51,296	-2,054
SEP IRA	260,926	251,505	-9,421
529 Savings	55,403	54,699	-704

Total Assets	$767,679	$742,143	-$25,536
			(-3.33%)

The S&P 500 has pulled back since the last update, falling 5.02% during that time:

(chart courtesy of msn.com)

The unemployment rate for May rose for the second month in a row as it climbed to 9.1%. Oil prices have continued a modest decline, falling from about $103 per barrel to around $101 per barrel. There hasn't been much positive economic news out there lately, and the spectre of the USA falling back into recession is starting to surface. This certainly has been a painful 3+ years, that's for sure...

On the financial front, I'm waiting for the death knell to sound for the 4 year Penfed CD @6.00% APY I opened in September 2007 (*sigh* It would have been smart to open a 7 year CD at that rate back then, wouldn't it?). I'll likely put most of that cash toward some I Bonds, but that's still a poor substitute for a 6% APY. :( I'll also likely fund my 2010 SEP IRA contribution sometime next month, which should at least boost asset levels a bit despite the decline in the stock market.

That being said, I've been pretty apathetic with regard to all things personal finance-related for quite some time now. Since the recession began in December 2007, I've watched my S Corp revenues drop, my health insurance premiums and food and fuel costs continue their ongoing inflationary gains, found few attractive risk free places to put cash to work, had costly flood damage to my property, listened to revolting partisan politics on all fronts, and dealt with what seems like countless other distressing situations. While my asset levels have recovered from the recession, I'm just not feeling a lot of enthusiasm for personal finance these days. I'm thankful to be working and able to save and invest and will continue to stay the course, but that doesn't mean I have to like it. :)

May 2011 Financial Asset Roundup

2011-05-11T10:26:00.003-04:00

Here are my current financial assets as of the market close on May 10th, 2011:

Asset	Apr 2011	May 2011	Change
Checking	6,175	1,500	-4,675
Money Market	42,528	43,103	575
Savings Bonds	36,868	36,931	63
Treasury Bills	0	0	0
CDs	97,720	98,121	401
Brokerage	107,553	112,724	5,171
401k	103,659	105,621	1,962
Roth IRA	52,229	53,350	1,121
SEP IRA	254,976	260,926	5,950
529 Savings	53,771	55,403	1,632

Total Assets	$755,479	$767,679	$12,200
			(1.61%)

The S&P 500 has continued to climb, rising 2.47% since the last update:

(chart courtesy of msn.com)

The unemployment rate for April rose for the first time in four months as it climbed to 9.0% despite a gain of 244,000 jobs. Oil prices have been volatile lately, but actually had a noticeable decline during that time, falling from about $110 per barrel to almost $103 per barrel. The biggest news of late was the death of terrorist leader Osama Bin Laden courtesy of a covert operation by the US military. My hope is that his death helps our military finish operations in Afghanistan and return home soon.

On the financial front, my asset levels have continued to climb and have surpassed my all time high from April. That is particularly noteworthy since I decided to use the cash from my 2010 personal tax return as an additional principal payment toward my home mortgage. Since there are few attractive places to stash a few bucks these days (I Bonds excepted), this is something I may periodically do as my various CDs mature over the next couple of years.

Otherwise, things are pretty quiet around here and I'm enjoying seeing the green of Spring when I look out the window instead of months worth of snow and ice. :)

March CPI-U numbers released: Pass on April 2011 issue I Bonds

2011-04-15T08:57:00.003-04:00

The U.S. Bureau of Labor Statistics released the March 2011 Consumer Price Index (CPI-U) inflation data this morning, which increased by 0.98% month over month.

As I have mentioned before, now (along with the release of the September CPI-U) is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for April 2011 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from September 2010 (218.439) and March 2011 (223.467) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for April 2011 issue I Bonds:

That means these bonds would earn a rate of 0.74% (using 0% fixed & 0.74 variable) for the first 6 months and 4.60% (using 0% fixed & 4.60% variable) for the second 6 months. Based on this, April 2011 issue I Bonds are once again a competitive investment when compared to something like the 12 month CD @ 1.75% APY currently being offered by Connexus Credit Union.

Despite the 2%+ overall rate that April 2011 I Bonds will have over the next 12 months, I will be passing on them. I think that the 0% fixed rate for the life of the bond combined with the 0.74% composite rate for the first six months make these a deal breaker. Even if the fixed portion of May 2011 issue I Bonds remains at 0%, I would rather take the 4.60% rate for the first six months and gamble that the composite rate for the second six months would be greater than 0.74%. On top of that, it's not even out of the question to hope for a non-zero fixed portion to appear next month. Personally, I plan on buying $10,000 ($5k paper & $5k electronic at treasurydirect.gov) worth of I Bonds in 2011 myself, but will likely wait until the September 2011 CPI-U numbers come out in October before pulling the trigger.

HBO & Cinemax Free Preview this weekend on DirecTV

2011-04-14T13:22:00.002-04:00

HBO and DirecTV are offering a Free Preview Weekend starting tomorrow, April 15th and ending on Monday, April 18th.

If you are a DirecTV customer like me, all programming on channels 501 - 517 will be free for the entire weekend, so fire up your DVR and get the most out of this promotion. Enjoy!

April 2011 Financial Asset Roundup

2011-04-12T15:11:00.002-04:00

Here are my current financial assets as of the market close on April 11th, 2011:

Asset	Mar 2011	Apr 2011	Change
Checking	838	6,175	5,337
Money Market	43,066	42,528	-538
Savings Bonds	36,808	36,868	60
Treasury Bills	0	0	0
CDs	97,312	97,720	408
Brokerage	102,781	107,553	4,772
401k	100,727	103,659	2,932
Roth IRA	50,882	52,229	1,347
SEP IRA	249,317	254,976	5,659
529 Savings	52,800	53,771	971

Total Assets	$734,531	$755,479	$20,948
			(2.85%)

The S&P 500 has rebounded 2.27% since the last update despite the ongoing political unrest in the Middle East and the ever-worse earthquake, tsunami, and nuclear disaster in Japan:

(chart courtesy of msn.com)

The unemployment rate for March improved once again as it fell to 8.8% as 216,000 jobs were gained. Oil prices have continued to rise during that time, gaining from about $101 per barrel to almost $110 per barrel. I paid $3.69 for a gallon of gasoline on Sunday (up from $3.43 one month ago) and wonder how high prices will go and what the impact on our rebounding economy will be.

On the financial front, my asset levels have continued to climb and have surpassed my all time high from February. One thing I will be keeping an eye on is the CPI-U number for March 2011, which is due to be released on Friday. Since inflation has been on the rise, May 2011 issue I Bonds could be an interesting place to put some cash once we get past the anemic 0.74% offered for bonds issued through the end of April. I've also finished my personal tax returns and already have my refund sitting in my checking account. With few attractive options for a landing spot for that money (other than I Bonds), I'm thinking of just throwing that cash toward my mortgage. I'm still not sure though... I also was shocked to find myself in the 15% federal tax bracket, with my reduced income impacting me a bit more than I initially figured. The worst part is that I had some room to pay 0% tax on dividends and capital gains that I missed out on. I guess I'll have to keep that in mind as 2011 progresses.

On the work front, I am keeping busy and am extremely pleased to have renewed my contract with my largest client for another year. I just need to keep the revenue coming in so I can fully fund my 2010 SEP IRA contributions and get the 2010 federal and state tax extensions squared away for my S Corp. Good times!

Crown moulding project complete

2011-03-25T13:37:00.011-04:00

On a "home improvement high" after our panel moulding project, Mrs. Frugalson decided that she wanted to install crown moulding in pretty much all of our first floor and in the center hallway on our second floor.

Although this project (aka "The trail of tears") involved an large amount of labor, I think the end result was pretty good:

Once again, Mrs. Frugalson's inspiration came from Sarah at the Thrifty Decor Chick blog, although I would recommend checking out this video from Tom Silva of This Old House for a nice overview of the types of cuts required if you are considering a crown moulding project of your own. Be warned though, Tom is such a skilled carpenter that he makes putting up crown moulding look far simpler than it really is. There is a lot of measuring, cutting, fitting, and dealing with crooked moulding/walls/ceilings that can be a bit time-consuming and challenging to work through.

Materials-wise, this project was pretty basic:

(20) 12' pieces of pre-primed crown moulding from Lowes ($330.44 out of pocket (oop) after 10% off coupon)
(4) 8' pieces of pre-primed crown moulding from Lowes ($44.08 out of pocket (oop) after 10% off coupon)
Behr Ultra Pure White paint, paint brushes, nails, wood putty, painters caulk, sandpaper, etc. were "in stock" from prior projects.

Total cost: $374.52 out of pocket.

On to the tools list. Once again, this project can be done with a hammer, nails, hand saw, and miter box. However, you will get a much better result with far less work with power tools.

Here are the tools used:

Delta 36-225 10" miter saw
Freud D1080X Diablo 10" finish blade
True Angle Tool for measuring all inside & outside corners
Porter-Cable refurb compressor
Hitachi brad nailer
Hitachi finish nailer
chalk line for marking the moulding wall layout line
coping saw
tape measure

Finally, helpful resources for this project:

How to Cut Crown Moulding (This Old House video)
How to Put In Crown Molding (This Old House How-To article)
How to cut crown molding inside corners (youtube)
How to cut a crown molding outside corner (youtube)
How to cut crown molding square dead ends (youtube)
Check ebay for Lowes/Home Depot coupons to reduce the cost of your tools and materials. I picked up a few Lowes 10% coupons for about a buck each that I used to save some money on this project.
Try to do as much painting as possible before installing any moulding. Trust me, it is much easier to neatly paint bare walls and uncut moulding. :)
Mark all wall studs before installing moulding and be weary of plumbing waste and supply lines hiding in the walls.
Have extra pieces of moulding on hand. You are only one misfire or mental mistake away from not having enough material on hand to complete your project.
Recruit a helper for when you position, level, and fasten moulding. It will make getting a good result much easier.

Time-wise, I'd estimate that this project took about three full weekends for me to complete due to my inexperience with crown moulding. Mrs. Frugalson already has a new chair rail/panel moulding project in mind though, so I'm going to have to free up my weekends for that project some time soon. :)

March 2011 Financial Asset Roundup

2011-03-11T10:29:00.004-05:00

Here are my current financial assets as of the market close on March 10th, 2011:

Asset	Feb 2011	Mar 2011	Change
Checking	650	838	188
Money Market	42,319	43,066	747
Savings Bonds	36,743	36,808	65
Treasury Bills	0	0	0
CDs	96,936	97,312	376
Brokerage	106,659	102,781	-3,878
401k	102,674	100,727	-1,947
Roth IRA	51,453	50,882	-571
SEP IRA	250,363	249,317	-1,046
529 Savings	52,653	52,800	147

Total Assets	$740,450	$734,531	-$5,919
			(-0.80%)

The S&P 500 has trended down 2.02% since the last update as worry from political unrest in the Middle East, rising oil prices, and now a 8.9-magnitude earthquake and tsunamis that hit Japan create fear and uncertainty:

(chart courtesy of msn.com)

The unemployment rate for February continued a slow decline as it fell to 8.9%. Oil prices have spiked during that time, gaining from about $87 per barrel to $101 per barrel and I've seen the cost for gasoline at one local station rise at a lesser rate from $3.15 to $3.43. I'm sure $4 per gallon gasoline isn't far away, but could we actually see it hit $5 during the summer driving season?

On the financial front, there's not too much to report. With rising food, oil, and other commodity prices, I'm looking toward a potential I Bond purchase again this spring, although that will likely happen in May 2011 at the earliest with the current 0% fixed and 0.74% composite rates available until then.

On the work front, I've been keeping busier than I have in quite some time. My contract with my largest client is up soon, and having a bunch of work to do is definitely a good sign. I've got my 2010 federal and state tax extensions filed for my S Corp, which should give me a bit more time to fully fund my 2010 SEP IRA contributions. My personal returns are in the works, and hopefully the tax bite won't be too bad considering the reduction in business revenue I've experienced over the past couple of years.

February 2011 Financial Asset Roundup

2011-02-11T13:51:00.002-05:00

Here are my current financial assets as of the market close on February 10th, 2011:

Asset	Jan 2011	Feb 2011	Change
Checking	1,334	650	-684
Money Market	54,711	42,319	-12,392
Savings Bonds	36,679	36,743	64
Treasury Bills	0	0	0
CDs	84,035	96,936	12,901
Brokerage	101,175	106,659	5,484
401k	98,947	102,674	3,727
Roth IRA	50,196	51,453	1,257
SEP IRA	244,425	250,363	5,938
529 Savings	51,271	52,653	1,382

Total Assets	$722,773	$740,450	$17,677
			(2.45%)

More upward movement from the S&P 500 has produced a 4.10% gain since the last update:

(chart courtesy of msn.com)

The unemployment rate for January unexpectedly fell to 9%, coupled with a 2.5 year low in jobless claims. Hopefully this isn't a onetime event and the job market will steadily improve throughout 2011. Oil prices are down somewhat, hovering around $87 per barrel despite the recent turmoil in Egypt.

On the financial front, my asset levels have yet again surpassed my all time high from January 2011. We're probably due for a pullback in the stock market, but I've enjoyed the ride as my assets have climbed toward the $800k mark after getting creamed so badly during the recession/financial market meltdown. Elsewhere, my 5% APY CD reservation at Penfed went down last month without a hitch, and I need to focus on my S Corp and personal tax returns for 2010 along with a corresponding 2010 SEP IRA contribution.

I've made good progress on my latest home improvement moulding install project, having installed crown moulding in most of the first floor of our house as well as on our second floor hallway. I need to find some time to take some pictures and post an update on that soon, because it probably won't be long before Mrs. Frugalson has me installing some sort of moulding elsewhere around here. :)

January 2011 Financial Asset Roundup

2011-01-11T10:29:00.003-05:00

Here are my current financial assets as of the market close on January 10th, 2011:

Asset	Dec 2010	Jan 2011	Change
Checking	670	1,334	664
Money Market	60,951	54,711	-6,240
Savings Bonds	36,582	36,679	97
Treasury Bills	0	0	0
CDs	83,681	84,035	354
Brokerage	98,243	101,175	2,932
401k	98,298	98,947	649
Roth IRA	44,418	50,196	5,778
SEP IRA	239,438	244,425	4,987
529 Savings	50,030	51,271	1,241

Total Assets	$712,311	$722,773	$10,462
			(1.47%)

The S&P 500 has continued to climb, rising 2.36% since the last update:

(chart courtesy of msn.com)

The unemployment rate for December actually fell to 9.4%, although some believe that means a portion of the unemployed have given up on their job search. Things aren't looking to turn around soon according to Federal Reserve Chairman Ben Bernanke, with unemployment projected to be around 8% two years from now despite the hints of an economic recovery starting to surface. Oil prices have continued to stay somewhat flat, remaining around $90 per barrel. It's certainly looking like the return of $4 per gallon gasoline is on the horizon once the summer driving season arrives later this year.

On the financial front it's been déjà vu all over again as my asset levels once again surpassed my all time high from December 2010. As far as money moves go, I finally made 2010 Roth IRA contributions for Mrs. Frugalson and myself and my 5% APY CD reservation at Penfed will hopefully go down this week without issue. I also recently found out that I am part of the Penfed data breach last month, with Penfed sending me replacements for my unused debit cards and offering two years of ID TheftSmart service. :(

As for everything else, I've made some good progress on our latest home improvement moulding install project, and now have crown moulding installed in most of the first floor of our house. I still need to install some on our second floor hallway, but I will try to make a point of posting an update on cost, materials, lessons learned, etc with a few pictures once the actual work is complete. I also need to start thinking about gathering 2010 personal and S Corp income tax info, so I have a few things to keep me busy during early 2011.

Showtime Free Preview this weekend

2011-01-07T09:09:00.001-05:00

Showtime is offering a Free Preview Weekend starting today, January 7th and ending on Monday, January 10th.

If you are a DirecTV customer like me, all programming on channels 545 - 558 will be free for the entire weekend, so fire up your DVR and record some free stuff. Enjoy!

Merry Christmas!

2010-12-24T09:30:00.003-05:00

To everyone out there, thank you for stopping by. I would like to wish all of you a safe and happy holiday season.

For my family, the next couple of days will be a frenzy of spending time with family, eating great food, and giving gifts to our loved ones. For myself, I've found that there is nothing like enjoying Christmas through the eyes of my children. If only we didn't lose that joy and excitement as we grow up.

Grocery price inflation update

2010-12-21T14:23:00.003-05:00

My how time flies... It's been about a year since my last grocery price inflation update.

It appears that the recession-induced 13.6% decrease in grocery spending I experienced through November 2009 was a temporary blip as I had speculated, as those savings have been virtually erased by the 13.0% increase in spending I have experienced through November 2010.

The slowdown of manufacturer/retailer promotions in the second half of 2010 has made great deals pretty much non-existent. I haven't had a good haul of free/cheap items that I'd actually want to buy for several months and high value coupons and rebates have continued to dry up (like the annual Kellogg's Fuel for School rebates good for 30+ boxes of free cereal every Fall). This trend was particularly evident during the Thanksgiving and Christmas shopping seasons, where baking items (flour, sugar, butter, chocolate chips, etc.) can usually be had quite cheaply, yet the supermarket sales seemed to only bring their prices in line with everyday prices that I see at Walmart year round.

Fortunately, one annual avenue for savings did not disappear in 2010: the tax-season 10% bonus for buying gift cards at Shaw's Supermarkets. While this deal has been around for three years now, I wouldn't be surprised to see it discontinued for 2011 since Shaw's parent company Supervalu has been hit with declining revenue of late.

All in all, I think we're looking at the pre-recession climb in grocery prices to resume and continue for the foreseeable future. Even though we're in a period of low inflation as far as the government is concerned, profits are down, commodity prices are rising, and one out of every ten people is unemployed. If the current situation continues, I figure that I will see another double digit increase in grocery spending for 2011, eclipsing the recent high water mark we established in 2008.

December 2010 Financial Asset Roundup

2010-12-13T10:31:00.003-05:00

Here are my current financial assets as of the market close on December 10th, 2010:

Asset	Nov 2010	Dec 2010	Change
Checking	1044	670	-374
Money Market	60,507	60,951	444
Savings Bonds	36,486	36,582	96
Treasury Bills	0	0	0
CDs	83,332	83,681	349
Brokerage	95,334	98,243	2,909
401k	97,699	98,298	599
Roth IRA	43,899	44,418	519
SEP IRA	237,907	239,438	1,531
529 Savings	50,076	50,030	-46

Total Assets	$706,284	$712,311	$6,027
			(0.85%)

The rise of the S&P 500 still has legs as the index has crept up another 1.78% since the last update:

(chart courtesy of msn.com)

The unemployment rate for November rose to 9.8% with job growth lower than expected. Oil prices have been pretty steady as they hover around $89 per barrel. It should be interesting to see if the new tax cut deal will have any positive impact on the two former points (I'm not holding my breath).

On the financial front my asset levels have continued to rise along with the stock market, once again surpassing my all time high from November 2010. As far as money moves go, I need to start planning for 2010 Roth IRA contributions for Mrs. Frugalson and myself as well as my 5% APY CD reservation at Penfed due in January. I also wonder if Penfed will be cooking up any other decent CD deals for January 2011?

Between work, Christmas prep, EOY planning for my S Corp, and yet another home improvement moulding install project (crown moulding this time around), I've been keeping pretty busy the past few weeks. One point of note is my S Corp revenues, which are officially down 7.3% for 2010 on top of a 8.8% decrease in 2009. That's a noticeable hit to my bottom line, but I guess it could be worse considering that one out of every ten people is out of work right now. Other than that, I need to work on a 2010 grocery inflation update, finalize my 2010 charitable contributions, and hopefully enjoy a relaxing Christmas with my family.

November 2010 Financial Asset Roundup

2010-11-11T13:16:00.002-05:00

Here are my current financial assets as of the market close on November 10th, 2010:

Asset	Oct 2010	Nov 2010	Change
Checking	506	1044	538
Money Market	60,838	60,507	-331
Savings Bonds	36,384	36,486	102
Treasury Bills	0	0	0
CDs	82,985	83,332	347
Brokerage	92,125	95,334	3,209
401k	93,115	97,699	4,584
Roth IRA	42,379	43,899	1,520
SEP IRA	230,075	237,907	7,832
529 Savings	48,538	50,076	1,538

Total Assets	$686,945	$706,284	$19,339
			(2.82%)

The (QE2 fueled?) run-up of the S&P 500 continues on as the index has risen another 4.60% since the last update:

(chart courtesy of msn.com)

The unemployment rate for October stayed flat at 9.6% yet again although there were some positive signs on job growth. Meanwhile, a weak dollar is helping oil prices head toward $90 per barrel.

On the financial front my asset levels have once again surpassed my all time high from October 2010, in addition to reaching the milestone of a $700k level. It's hard to believe I was trying to reach a goal of a $500k asset level only four short years ago. The only money move I have cooking is my attempt to join the Navy Federal Credit Union through a merger backdoor, but I've made little progress on that front so far.

Job-wise, things are looking up. I've been doing quite a bit of work building a test environment for my largest client in anticipation of them deploying a bunch of new IT equipment next year. That's certainly encouraging news for someone who has a contract up in Q2 2011, that's for sure. :)

September CPI-U numbers released: October 2010 I Bonds not terribly enticing

2010-10-15T07:35:00.003-04:00

The U.S. Bureau of Labor Statistics released the September 2010 Consumer Price Index (CPI-U) inflation data this morning, which increased by 0.06% last month.

As I have mentioned many times before, now is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for October 2010 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from March 2010 (217.631) and September 2010 (218.439) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for October 2010 issue I Bonds:

That would mean these bonds would earn a rate of 1.74% (using 0.20% fixed & 1.54% variable) for the first 6 months and 0.94% (combined 0.20% fixed & 0.74% variable) for the second 6 months. With a lowly 0.20% fixed portion, this is a lukewarm investment when compared to the 1 year CD @ 1.75% APY currently being offered by Connexus Credit Union.

With the low period of inflation we're currently experiencing (with no 2011 cost-of-living increase for Social Security recipients), buying October 2010 I Bonds is not a no-brainer at this time. With no large increase in the fixed portion expected in November, I personally will be waiting until late April 2011 before considering an I Bond purchase.

October 2010 Financial Asset Roundup

2010-10-11T14:25:00.002-04:00

Here are my current financial assets as of the market close on October 8th, 2010:

Asset	Sep 2010	Oct 2010	Change
Checking	175	506	331
Money Market	32,346	60,838	28,492
Savings Bonds	36,283	36,384	101
Treasury Bills	0	0	0
CDs	116,852	82,985	-33,867
Brokerage	84,767	92,125	7,358
401k	86,831	93,115	6,284
Roth IRA	40,220	42,379	2,159
SEP IRA	218,768	230,075	11,307
529 Savings	45,966	48,538	2,572

Total Assets	$662,208	$686,945	$24,737
			(3.74%)

It's been a nice run for the S&P 500 as it has risen has risen 5.01% since the last update:

(chart courtesy of msn.com)

The unemployment rate for September stayed flat at 9.6% as job growth continues to flounder, while oil prices have perked up to around $83 per barrel.

On the financial front my asset levels have once again surpassed my all time high from September 2010 in lockstep with the rising stock market despite the $5000 I spent getting my yard repaired and re-sodded after the flood-related damage caused in March. Now that the final cleanup is done, I figure I spent close to $10,000 this year on basement water removal and cleanup, sump pump installation, and landscaping stump removal, fill, and sod installation. With regard to more pure financial moves, I'm also saw a Penfed 6% APY 4 year CD, a HSBC 2.00% APY 12 month CD and a ING Direct 2.10% APY 12 month CD mature since the last update. I am planning on putting some of that cash in a 5% APY CD reservation at Penfed in January 2011, but I will probably stay liquid with the remainder of that cash due to the lack of decent places to put it. I'm also trying to get myself into the Navy Federal Credit Union through a loophole of sorts, but my membership status there is still in limbo at this point.

Not much else of note to report on though. I'm just trying to fight the good fight and keep my financial situation afloat.

Former MBNA Bill Pay Choice finally getting the axe

2010-10-01T14:34:00.006-04:00

When I predicted the death of the great MBNA billpay functionality when it was integrated into to the Bank of America family in 2006, I had no idea that my prediction would finally be correct four long years later.

I unfortunately received this letter from Bank of America last week:

So it looks like I will have to actually pay my mortgage and credit cards with actual cash from my bank accounts now. Thank you MBNA/Bank of America, it's been a great ride. Heck, I may even toss back a Schlitz Tall Boy in honor of Matthew Schlitz! :)

Starz Free Preview this weekend on DirecTV

2010-09-30T08:32:00.001-04:00

Starz and DirecTV are offering a Free Trial of the Starz Super Pack starting today, September 30th and ending on Sunday, October 3rd.

If you are a DirecTV customer like me, all programming on channels 525 - 542 will be free for the entire weekend, so fire up your DVR and get the most out of this promotion. Enjoy!

Annual double digit health insurance premium increase is here

2010-09-29T14:04:00.005-04:00

I've been talking about my ever-increasing health insurance premiums for several years now. This year was no exception as I was greeted with a 20% premium increase to keep my existing basic HMO plan for another year, although I ended up downgrading my plan yet again to one with lesser coverage and "only" a 13% price increase despite near zero rates of inflation.

The price increases over the past decade have been shocking. Since 2001, my health insurance premiums have increased by 143% while the rate of inflation during that time is a much lower 23% (so says usinflationcalculator.com):

When told about latest my increase, a family member commented, "They must be getting ready for Obama Care", despite the fact that I've been seeing these increases happening at least eight years before President Obama was in office and five years before then Governor Mitt Romney of Massachusetts enacted similar health care reform at the state level. Oddly, Romney seems to have no problems criticizing "ObamaCare" even though it is modeled after "RomneyCare" (as humorously illustrated by Mike Luckovich of The Atlanta Journal-Constitution):

I am very disappointed with our politicians who have focused on being anti-Democrat and anti-Republican instead of doing the right thing for the citizens that voted them into office. Many Americans see no need to change anything about our healthcare system since they have no idea how much money basic healthcare coverage costs and I think that something dramatic has to be done to make the average citizen aware of the frightening rate at which our health care costs have been increasing. I believe that once that information became public knowledge, the cries of "socialism!" would disappear and people would be demanding that our elected officials take action immediately.

One way I see to help open some eyes would be:

End all employer subsidies of employee health insurance premiums. The full insurance premium should be documented on all pay stubs so that employees are aware of the full cost of their coverage as well as the extent of the large annual cost increases.

Change income tax handling of health insurance premiums by adding a ceiling for tax deductibility (say $15k for families, $7500 for individuals) so that individuals would experience a tangible tax bite as premiums increase by a large amount every year and finally understand the extend of the crisis we're in.

I think that seeing the extent of these costs would lead to a groundswell of public support for real health care reform. Imagine the public outrage that would occur if rent or mortgage payments for everyone increased by 10% every year for a place with a sagging roof and peeling paint? I predict that the streets would be full of people calling for an end to these predatory price increases, and rightly so.

September 2010 Financial Asset Roundup

2010-09-13T14:33:00.003-04:00

Here are my current financial assets as of the market close on September 10th, 2010:

Asset	Aug 2010	Sep 2010	Change
Checking	609	175	-434
Money Market	33,099	32,346	-753
Savings Bonds	36,186	36,283	97
Treasury Bills	0	0	0
CDs	116,418	116,852	434
Brokerage	84,348	84,767	419
401k	86,935	86,831	-104
Roth IRA	40,324	40,220	-104
SEP IRA	215,900	218,768	2,868
529 Savings	45,839	45,966	127

Total Assets	$659,658	$662,208	$2,550
			(0.39%)

The S&P 500 has ended faily flat over the past month with the index falling 1.03% since the last update:

(chart courtesy of msn.com)

The unemployment rate for August rose to 9.6% as business hiring picked up, while oil prices have fallen slightly to around $77 per barrel.

On the financial front, I am pleased to see my asset levels have surpassed my all time high from April 2010 despite the ups and downs of the stock market of late. I'm also a couple of weeks away from more above marked yield CD dominoes falling, with a Penfed 6% APY 4 year CD and a HSBC 2.00% APY 12 month CD maturing this month with a ING Direct 2.10% APY 12 month CD to follow in October. There are not many decent places to put that money now, but I did make a 5% APY CD reservation at Penfed for January 2011, which is an outstanding deal in the current economic climate. Unfortunately, I have the major expense of getting my lawn repaired looming to the tune of about $4000, but I'll cross that bridge when I get to it. I also intend to post my most recent punch in the gut due to my health insurance renewal information, which is horrible as usual.

On a personal note, I'm glad we were lucky enough to avoid a direct hit from Hurricane Earl and hope that the rest of the hurricane season will be quiet as I enjoy the passing of the sweltering summer heat. Bring on the Fall!

Duke of (Hurricane) Earl

2010-09-03T14:27:00.003-04:00

Hurricane Earl is approaching and we have the misfortune of being in an area with a Tropical Storm Warning. We've battened down the hatches, filled up the cars at the gas station, have food and water on hand, and have the cellphones and flashlights charged and ready to go. I'm sure we'll think of a few more last minute things to wrap up before the heavy winds that are forecasted to arrive between 5-6 PM start to howl:

(map courtesy of National Weather Service)

The kids will be home early from school soon and the wind is still calm for now, but the tropical rain is hammering down on us already. My biggest hope is that this storm won't be as serious as Hurricane Bob in 1991, when we had widespread downed trees and no power for a week. The last thing we need is a lousy bookend to the flooded yard and basement we had in the spring. ;)

Panel moulding project complete

2010-08-26T15:13:00.010-04:00

Mrs. Frugalson (aka "Home Improvement Mom") and I finally finished the dining room panel moulding project that I mentioned a couple of weeks ago. I didn't think to take a pristine "before" picture, but these pictures should give you a good idea of what a difference this project made in our plain jane tan painted drywall dining room even after the recently installed wood moulding had been painted white:

Sarah at the Thrifty Decor Chick blog gives a nice primer on this type of project including design considerations, layout, materials, and installation. She makes it all sound so simple, but be warned that this is a labor intensive project! The materials aren't terribly expensive, but the design, prep (filling, sanding, priming), and installation (cutting, nailing, filling, caulking) can be very time consuming.

Let's begin with our materials list:

(6) 8' pieces of chair rail moulding from Lowes ($59.35 out of pocket (oop) after 10% off coupon)

(21) 8' pieces of accent moulding from Lowes ($95.80 oop after 10% off coupon)

(1) gal Behr Harvest Brown paint and (1) gal Ultra Pure White paint from Home Depot($59.98 oop)

(1) three pack of paint roller covers from Home Depot ($8.47 oop)

(5) white electrical outlets and covers to replace the tan ones from Home Depot ($4.30 oop)

White primer, paint brushes & rollers, nails, construction adhesive, wood putty, painters caulk, drywall spackle, sandpaper, etc. were "in stock" from prior projects.

Total cost: $227.90 oop

Next, on to the tools. This project can be done with a level, hammer, nails, hand saw, and miter box. However, you will get a much better result with far less work with power tools. This was particularly true with the 19 moulding panels, which were made out of 76 pieces of wood that required 152 total miter cuts!

Here's what I used:

Delta 36-225 10" miter saw I bought long ago

Freud D1080X Diablo 10" finish blade (that cut all moulding like a hot knife through butter)

True Angle Tool for measuring all inside & outside corners

Porter-Cable refurb compressor

Hitachi brad nailer

Finally, some tips and techniques that I found helpful:

How to install molding (with videos, yikes!) (Thrifty Decor Chick blog)

How to cut crown molding inside corners (youtube)

How to cut a crown molding outside corner (youtube)

How to cut crown molding square dead ends (youtube)

Triangle Troubles (how to cut acute angles on a miter saw with a sub-fence)

Check ebay for Lowes/Home Depot coupons to reduce the cost of your materials. I picked up a few Lowes 10% coupons for about a buck each that I used for some of my materials.

Try to do as much painting as possible before installing any moulding. Trust me, it is much easier to neatly paint bare walls and uncut moulding. :)

Mark all wall studs before installing moulding.

If installing panel moulding on drywall, use construction adhesive on every piece and tack pieces into place with small brad nails (I used 1.25" brads) until the glue dries. For panels, try to sink nails into studs whenever possible, although that will not be possible for most vertical pieces.

Have extra pieces of moulding on hand. You are only one misfire or mental mistake away from not having enough material on hand to complete your project.

Recruit a helper for when you position, level, and fasten moulding. It will make getting a good result much easier.

And that's about it... Two weekends of work and ~$230 later our plain drywall dining room looks so much more finished. Now I just wonder what Mrs. Frugalson has in store for our next home improvement project!

August 2010 Financial Asset Roundup

2010-08-11T11:48:00.002-04:00

Here are my current financial assets as of the market close on August 10th, 2010:

Asset	Jul 2010	Aug 2010	Change
Checking	657	609	-48
Money Market	33,043	33,099	56
Savings Bonds	36,080	36,186	106
Treasury Bills	0	0	0
CDs	115,991	116,418	427
Brokerage	81,976	84,348	2,372
401k	83,046	86,935	3,889
Roth IRA	38,826	40,324	1,498
SEP IRA	200,815	215,900	15,085
529 Savings	43,870	45,839	1,969

Total Assets	$634,304	$659,658	$25,354
			(3.99%)

The S&P 500 has been on a nice roll over the past month despite recent economic worries, with the index rising 3.92% since the last update:

(chart courtesy of msn.com)

The unemployment rate for June remained at 9.5% as job growth continues to stagnate while oil prices have risen slightly to around $79 per barrel.

On the financial front, I finally finished funding my 2009 SEP IRA and that cash infusion helped boost my asset levels so they are now approaching my all time high from April 2010. I am a bit bummed that I have yet another Penfed 6% APY CD maturing next month though, considering the lack of options to find a productive home for that money. Ironically, it's looking like my home will be one likely recipient of that cash and I'm sure that we'll find a use for some of it with the home improvement and landscaping projects that we have in the pipeline. I'm also anticipating getting my health insurance renewal information soon and am already trying to prepare myself for the shocking price hike that it is sure to contain.

Other than that, we had a nice little vacation a couple of weeks ago and are trying to enjoy the rest of the summer before the Frugalson children head back to school.

Blog alive four years and counting!

2010-08-10T11:43:00.006-04:00

In some ways, it seems like a million years ago since I first posted here on August 10th, 2006. During those four years we've seen the bust of the housing bubble, a near collapse of financial markets, and the "Great Recession" that we're currently working our way through.

My activity here during that time has become somewhat (ahem) less prolific, as I've been involved with work and family and the current state of the economy has resulted in far fewer nice financial deals to get excited about. That being said, while my finances are somewhat on autopilot, I do like to document my thoughts and progress here while occasionally sharing my experiences with various topics that I hope others may find useful.

For example, the project du jour at the Frugalson household is a redo of our dining room by adding some chair rail moulding, picture frame moulding, and some paint. It is a relatively inexpensive project (~$200 for materials) that may sound simple enough, but since it's pretty labor intensive my quadriceps are still sore from all of the squatting I did on Sunday installing the chair rail and a few picture frames. :) While it's lacking some final filling, sanding, and paint, we're looking pretty good so far with about 120 more feet of picture frame moulding to install:

So thank you for stopping by and coming along for the ride. Here's to another good year!

July 2010 Financial Asset Roundup

2010-07-13T14:48:00.004-04:00

Here are my current financial assets as of the market close on July 12th, 2010:

Asset	Jun 2010	Jul 2010	Change
Checking	108	657	549
Money Market	36,009	33,043	-2,966
Savings Bonds	36,057	36,080	23
Treasury Bills	0	0	0
CDs	115,569	115,991	422
Brokerage	79,640	81,976	2,336
401k	82,137	83,046	909
Roth IRA	38,494	38,826	332
SEP IRA	200,817	200,815	-2
529 Savings	43,117	43,870	753

Total Assets	$631,948	$634,304	$2,356
			(0.37%)

The S&P 500 had a rollercoaster ride up and back down, with the index falling 0.74% since the last update:

(chart courtesy of msn.com)

The unemployment rate for June declined to 9.5%, although that could be due to a shrinking labor force as people stop looking for work. Oil prices haven't changed much as they are around $76 per barrel in the middle of the summer driving season.

We've finally taken a major step toward fixing the sinkholes in our yard caused by the flooding we had on our property in late March. A couple of weeks ago, our landscaping contractor tore into our yard with a backhoe and removed a shocking amount of buried stumps left by the builder who thought it was a good idea to bury them there. Unfortunately, we were left with a barren wasteland for a yard and have to go through the time and expense of getting some topsoil and having grass planted. I plan on posting a more detailed update on that mess as time permits. I'm also being pitched many home improvement projects by Mrs. Frugalson as she has become a home decorating blog junkie. Over the weekend, I built her a couple of "cafe shelves" similar to ones she read about at the Beneath My Heart blog. She hasn't painted them yet, but I think they turned out pretty nice considering the ordinary (and inexpensive) materials they were built from. Of course, that will only make her more determined to get me to install that fancy molding in the dining room. :)

Moneywise, I spent a decent chunk of change having a backhoe destroy my lawn and I'll need to invest a bit more to get that addressed when the weather cools down a bit in the Fall. I'm also hoping to get my 2009 SEP IRA contribution fully funded by early August, which will allow me to close the books on 2009 once and for all.

Sump pump installation update

2010-07-06T13:37:00.009-04:00

When our basement was flooded in March, I mentioned that I wasn't terribly confident in the Utilitech pump we were sold by the guys that did the emergency pump out and temporary sump pump install for us. While it got us out of a jam, it wasn't something that I wanted in place on a long term basis.

The company that performed the temporary install of my original sump pump (in a sump liner installed by the builder) did a bit of a sloppy job since the work was rushed as they did it while standing in a few inches of water at the time. They left me with a pump of questionable quality, sloppy PVC pipe joints with dripping glue, daylight shining through the hole they made for the sump pump outlet pipe in my concrete foundation wall, and a jury rigged length of leaf blower gutter extensions diverting the basement water from sump pump away from my foundation.

With that in mind, I began to plan my permanent sump pump install by doing some reading at the terrylove.com forums (which led to my earlier purchase of Toto Drake toilets) and by picking the brain of a retired pipe fitter (whose daughter I happen to be married to :D). The consensus was a 1/2 HP cast iron Zoeller Flow-Mate 98 sump pump with a Zoeller 30-0181 check valve (a valve which allows the water from the sump pump to flow through it in only one direction) and a short run of buried 1.5" PVC pipe to divert the water away from the house.

On a related note, if anyone out there is trying to decide what kind of sump pump to purchase, this basementsystems.com youtube video does a nice job of discussing what you should be looking for in a sump pump (properly sized, cast iron body, solid float switch type, screen-less intake, etc.) and while the presenter doesn't actually mention brand names in the video, the pump he recommends at the end is a cast iron Zoeller pump:

Now, on to the work...

Unable to find the model pump I wanted locally, I ordered the Zoeller pump and check valve from irawoods.com for about $205, who took a few weeks to ship my order due to the high demand for sump pumps (I actually received the pump 5 days after the date of manufacture stamped on the housing). I also spent about $27 on 20 feet of 1.5" PVC pipe plus miscellaneous fittings, a pointing trowel, and a small bucket of hydraulic cement at Home Depot to complete the install.

Once I had my materials gathered, I cleaned all of the water and debris out my sump liner and installed my new pump and check valve in it. Next I dug a small trench out in the yard for the run of 1.5" PVC pipe that would divert the water from the sump pump away from the foundation, assembled, glued, and tested the drain line, and backfilled the trench. Finally, some white oakum was packed between the PVC pipe and the hole in my foundation wall and the rest of the void was filled on both sides of the foundation with hydraulic cement. Amazing, all this glim and glam for the grand sum of about $232 plus some sweat equity! ;)

After one final test, I verified that my new pump installation was working well (and more quietly to boot!). While I was at it, I installed an inexpensive Reliance Controls THP205 Sump Pump Alarm and picked up a First Alert Radon Test Kit for a little more peace of mind. Similarly, I will have my old sump pump on standby in case I have a problem with my Zoeller pump.

We've also had the contractor start work dealing with our sinkholes by removing the buried stumps out of our property. More details (and pictures) to follow.

June 2010 Financial Asset Roundup

2010-06-11T13:09:00.002-04:00

Here are my current financial assets as of the market close on June 10th, 2010:

Asset	May 2010	Jun 2010	Change
Checking	602	108	-494
Money Market	35,524	36,009	485
Savings Bonds	36,033	36,057	24
Treasury Bills	0	0	0
CDs	115,150	115,569	419
Brokerage	86,060	79,640	-6,420
401k	86,016	82,137	-3,879
Roth IRA	40,311	38,494	-1,817
SEP IRA	200,206	200,817	611
529 Savings	44,186	43,117	-1,069

Total Assets	$644,088	$631,948	-$12,140
			(-1.88%)

The S&P 500 has continued to slump, with the index falling 5.97% since the last update:

(chart courtesy of msn.com)

The US had inflated job growth in May (attributed to hiring of census workers) and as a result the unemployment rate declined to 9.7%. To go along with that, jobless claims decreased as unemployment benefits expired for many. Oil prices have somehow remained around $74 per barrel despite the BP oil spill that seems to be getting worse and worse as more information reaches the public.

It looks like we're about ready to finish dealing with the fallout of the flooding we had on our property in late March. I've finished tidying up our sump pump installation and we have a contractor due to start work next week tearing up our sink holes with a backhoe, removing the buried stumps and construction debris causing the issue, and filling it all back in with a few dump trucks full of sand and soil. Our yard will likely look like a disaster area for a while, but I'm looking forward to getting the project completed. At that point, I can look forward to the painting and installing of fancy dining room molding that Mrs. Frugalson has in mind. :)

Moneywise, I'm pretty much watching cash going out the door as we spend some cash on home improvement and repair projects these days. I did make a good dent in my 2009 SEP IRA contribution, so I at least made some progress with savings this month..

May 2010 Financial Asset Roundup

2010-05-12T14:58:00.003-04:00

Here are my current financial assets as of the market close on May 11th, 2010:

Asset	Apr 2010	May 2010	Change
Checking	534	602	68
Money Market	45,646	35,524	-10,122
Savings Bonds	26,009	36,033	10,024
Treasury Bills	0	0	0
CDs	114,737	115,150	413
Brokerage	90,869	86,060	-4,809
401k	90,741	86,016	-4,725
Roth IRA	41,682	40,311	-1,371
SEP IRA	206,242	200,206	-6,036
529 Savings	44,704	44,186	-518

Total Assets	$661,164	$644,088	-$17,076
			(-2.58%)

We were in the process of a decent month for the S&P 500 until the mystery crash on May 6th, with the index falling 3.23% since the last update:

(chart courtesy of msn.com)

The US had more job growth in April, yet the unemployment rate rose to 9.9% (seems counterintuitive, doesn't it?). The financial mess in Greece has contributed to stock market jitters and oil prices have dropped to around $76 per barrel despite the BP oil spill that is making an environmental nightmare out of the Gulf of Mexico.

Six weeks later, I'm still dealing with the fallout of the flooding we had on our property in late March. I'm still working on moving our belongings back into our basement, deciding on a contractor to fix the mess that the storm made out of our yard, and getting the back-ordered sump pump I've been waiting for to show up so I can finish our permanent sump pump installation. Dealing with our flood has taken up quite a bit of my time lately, but I've realized what a minor inconvenience it really is considering the hell that the state of Tennessee has gone through recently. Besides, my new concern is that Mrs. Frugalson is looking to spend a bit of money on some new projects around the house, so I've also got that going for me. :)

Moneywise, I maxed out on April 2010 issue paper and electronic Series I savings bonds and still need to start funding my 2009 SEP IRA contributions. I hope to have funded 50% of my contribution by the end of the month, so I should have plenty of time to fund the rest before my S Corp tax extension is up in the Fall. Good times.

March CPI-U numbers released: April 2010 issue I Bonds worth considering

2010-04-15T08:54:00.004-04:00

The U.S. Bureau of Labor Statistics released the March 2010 Consumer Price Index (CPI-U) inflation data yesterday morning, which increased by 0.41% month over month.

As I have mentioned before, now (along with the release of the September CPI-U) is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for April 2010 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from September 2009 (215.969) and March 2010 (217.631) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for April 2010 issue I Bonds:

That means these bonds would earn a rate of 3.36% (using 0.30% fixed & 3.06 variable) for the first 6 months and 1.84% (using 0.30% fixed & 1.54% variable) for the second 6 months. Based on this, I believe I Bonds are once again a competitive investment when compared to something like the 12 month CD @ 2.00% APY currently being offered by Southeast Financial FCU.

I believe that April 2010 I Bonds are a pretty compelling buy during the low rate period we're currently in. I plan on buying $10,000 ($5k paper & $5k electronic at treasurydirect.gov) worth of April 2010 I Bonds myself and will reevaluate what to do with them in April 2011. Considering that it is believed that the FOMC could keep short term interest rates low through 2011, I may just hang onto these for a while..

April 2010 Financial Asset Roundup

2010-04-12T14:03:00.003-04:00

Here are my current financial assets as of the market close on April 9th, 2010:

Asset	Mar 2010	Apr 2010	Change
Checking	515	534	19
Money Market	40,471	45,646	5,175
Savings Bonds	25,985	26,009	24
Treasury Bills	0	0	0
CDs	112,576	114,737	2,161
Brokerage	87,284	90,869	3,585
401k	87,393	90,741	3,348
Roth IRA	40,350	41,682	1,332
SEP IRA	199,342	206,242	6,900
529 Savings	43,378	44,704	1,326

Total Assets	$637,294	$661,164	$23,870
			(4.60%)

We've had another strong month from the S&P 500 as the index gained 4.26% since the last update:

(chart courtesy of msn.com)

We actually had some job growth in March, although the unemployment rate continued to hold steady at 9.7%, although some naysayers believe it will continue to go up. Oil prices have been relatively flat, trending to around $84 per barrel this morning.

Most of my time over the past couple of weeks has been sucked up dealing with the flooding we had on our property two weeks ago. While our basement and yard are mostly dry, we're looking to spend a bit of cash on tidying up our sump pump installation, adding some water-resistant basement storage, having some electrical work done (including purchasing a generator), and finding someone to deal with our flooded landscaping. I heard one local weatherman say that we've had six months worth of rain in four weeks, so I want to be prepared to handle that a bit more gracefully should it happen again. On a more positive note, I did sign a contract extension with my largest client and am pleased that I will continue to work with them through mid 2011.

Moneywise, I took the proceeds from my maturing one year Bank of America CD @ 2.65% APY and moved it to a Penfed 5 year @ 3.50% APY CD before they dropped their rates back to 3.0% APY. Also, with the March 2010 CPI-U numbers coming out on Thursday, I'm guessing that I will be ready to max out on April 2010 issue paper and electronic Series I savings bonds since they will offer a compelling alternative to current 1 year CD offerings like the 2% APY CD now available at Southeast Financial FCU. Once I finally start tackling my post-flood to do list, I'm looking to share the results of my research and experiences like I did with my driveway paving project. Hopefully my findings will help someone else out there if they have the misfortune of being dealt a similar (soaking wet) hand. :)

Please God, make the water stop!

2010-04-06T15:18:00.006-04:00

It was one week ago today that I woke up and found 3.5" of water in my basement. Prior to that, we've never had a drop of water down there for the 10+ years we've lived in this house. Over the course of a few hours, that 3.5" increased to 6" (no thanks to my wimpy 1/6 HP pump) by the time a local company arrived on the scene to pump us out and do a rough install of a sump pump.

Our basement has been dry for several days now, but that is only because the new sump pump is now dumping water outside 2-3 times per minute instead of the 5 times per minute it was kicking in last week. We were given a generic looking Utilitech pump (apparently a cheapie exclusive to Lowe's), and while it saved our butts when we were getting desperate, I'm pretty nervous that it will fail under such a heavy workload. :( Based on what I've read online, I'm trying to find a 1/2 HP cast iron Zoeller sump pump, but I seem to have a better chance of seeing a unicorn than finding the pump I want locally.

Other than the joy of the Feds declaring that most of the state is a disaster area, I have a nice new stream running through my property and a series of sinkholes where the guy that built my house so kindly buried the stumps from our trees. If anyone out there ends up building a house some day, Do not let them bury any stumps on your property! I've been plagued by sinkholes for years, but this water-filled mess is by far the worst:

Keep the faith and stay dry out there...

Showtime Free Preview this weekend on DirecTV

2010-03-25T08:20:00.004-04:00

Showtime is offering a Free Preview Weekend starting today, March 25th and ending on Sunday, March 28th.

If you are a DirecTV customer like me, all programming on channels 545 - 558 will be free for the entire weekend, so fire up your DVR and record some free stuff. Enjoy!

Hat Trick: I spent $1200 on groceries yesterday

2010-03-24T09:40:00.003-04:00

For the third year in a row, I went to Shaw's Supermarket and took advantage of their Refund Rewards Program:

The program, which runs March 19 to April 15, gives shoppers’ grocery budgets a boost by adding up to an additional 10 percent value on a grocery gift card purchased during tax season.

Under the refund rewards program, customers who purchase a $250 or $300 Shaw’s gift card will get another $20 or $30 added to the card, respectively. The refund rewards gift cards are available at the customer service counter at local Shaw’s Supermarket stores. Customers can use their tax refunds or any accepted form of payment to purchase the grocery gift cards.

Unlike previous years, this program does not appear to be promoted very prominently for some reason. Heck, I even said that it didn't appear that they were going to have this promotion this year in my grocery spending update last week. You certainly could have blinked and missed the advertisement in the latest sales flyer which only contained a vague reference with a "See store for details" note. I even had a difficult time finding details on the Shaws web site, with the pertinent information buried in a link to this pdf file. In addition, the cashier at the service desk had trouble completing the transaction and told me I was the first person to request the deal even though the promotion had already been running for four days. Once the cashier figured out what to do, the same script was followed that I've seen in the past: she asked for my Shaw's reward card, filled out a form, loaded (4) gift cards with $330 each, charged $1200 to my Penfed Visa Platinum Gas Cash Reward card, and then handed me my gift cards.

I stopped at a Sunoco station for gas on my way home and was greeted by a "declined by issuer" message with the Penfed VISA I used at Shaws . I figured my large grocery purchase had once again triggered some fraud detection algorithm at ultra-conservative Penfed and came home to a message from Penfed's (apparently outsourced) Cardholder Security Department asking for a return call at (888) 918-7313 (a legit number on Contact Us at penfed.org) immediately after my purchase. I called them back and verified the last few purchases I made on my Penfed VISA. Once that was done, the CSR kindly released the "Protective Hold" on my account.

I pretty much look at this deal as a 10% tax free return on my modest $1200 investment, which should take me about five or six months to spend based on prior experience. It's certainly a deal worth doing to get yourself $120 worth of free groceries, that's for sure.

2009 Grocery spending down 12.0%

2010-03-17T09:17:00.003-04:00

Now that I've finally recovered from my stint on Jury Duty, let's talk grocery prices. That 12.0% decrease in grocery costs last year marked the first time that my annual grocery spending has decreased since 2005, which is a tremendous feat for a family with growing children in the house. It also makes the prediction I made last year that my 2009 grocery spending would decrease from 2008 levels a winner. Perhaps it's time to buy a lottery ticket?

I had a little trouble maintaining the 13.6% year over year decrease I reported in my Fall update, but a double digit percentage decrease in grocery spending is still a pretty nice accomplishment. Unfortunately, I believe the major force behind that decrease was recession-driven and don't see it as being sustainable moving forward.

As the economy staggered through 2009, food producers and retailers offered more money-saving sales and promotions than I have seen in a long time. Those attractive deals did seem to slow down during the last quarter of 2009 and I have seen that trend continuing through Q1 2010.

Fortunately, the deals are not completely dead. A couple of weeks ago I doubled up on Conagra, Kraft, and Procter & Gamble promotions at Shaw's Supermarket and picked up a bunch of items for less than $10 out of pocket (after sale prices and coupons):

10 bottles of Hunt's Ketchup
2 cans of Chef Boyardee Ravioli
1 can of Pam cooking spray
1 box of Capri Sun juice bags
4 cans of Pringles Chips
2 packages of Kraft shredded cheese
1 (8) roll package of Bounty paper towels

For better or worse, I think we're looking at a continuing rise in grocery prices during 2010. While I believe the economy will continue to improve, that will be accompanied by increasing inflation and fewer savings opportunities offered to consumers (like the lack of the kinda sorta annual gift card savings promotion at Shaw's this month). Once you throw in the impact of freezing temperatures and earthquakes on the produce crop, I don't see how food will not cost you more in 2010 than it did last year.

March 2010 Financial Asset Roundup

2010-03-11T10:02:00.002-05:00

Here are my current financial assets as of the market close on March 10th, 2010:

Asset	Feb 2010	Mar 2010	Change
Checking	502	515	13
Money Market	39,603	40,471	868
Savings Bonds	25,963	25,985	22
Treasury Bills	0	0	0
CDs	112,180	112,576	396
Brokerage	82,817	87,284	4,467
401k	81,166	87,393	6,227
Roth IRA	38,046	40,350	2,304
SEP IRA	187,979	199,342	11,363
529 Savings	41,008	43,378	2,370

Total Assets	$609,264	$637,294	$28,030
			(4.60%)

I've actually recovered from my net loss last month as the S&P 500 index has gained 7.25% since the last update:

(chart courtesy of msn.com)

On a positive note, the unemployment rate held steady at 9.7% in February . Hopefully this is a leading indicator of the beginnings of economic recovery. The price for crude oil has continued to track the stock market, rising to $82 per barrel of late. With the warm weather on the way, it sure looks like $3 per gallon gasoline is on the way back.

My main priority of late has been getting my 2009 personal and S Corp tax returns wrapped up. My personal returns are good to go, although I had to file extensions for my business returns to give me a little more time to fully fund my 2009 SEP IRA contributions (due to lower revenue in 2009). Next up after a stint on jury duty is discussing a contract extension with my largest client. I believe that we're in a strong position to continue our relationship for another year, but my past experience has taught me that nothing is guaranteed when it comes to negotiating with clients. :)

Moneywise, I have a one year Bank of America CD @ 2.65% APY maturing later this month and will probably use the proceeds to max out on paper and electronic Series I savings bonds in April. With rates on savings accounts starting to trend toward 1% APY, I'm also considering putting some cash in another Penfed 5 year @ 3.50% APY CD once I have my contract situation ironed out. Other than that, I'm wondering if Shaw's Supermarket will have another gift card reward promotion for the third year in a row and hope to start blogging a bit more now that work has calmed down a bit and I've finished upgrading most of my home IT infrastructure. I hope to provide a 2009 grocery inflation update in the near future and plan on talking about the powerful (and frugal) networking technologies I now have running on my home network.

February 2010 Financial Asset Roundup

2010-02-11T14:16:00.002-05:00

Here are my current financial assets as of the market close on February 10th, 2010:

Asset	Jan 2010	Feb 2010	Change
Checking	371	502	131
Money Market	40,663	39,603	-1,060
Savings Bonds	25,955	25,963	8
Treasury Bills	0	0	0
CDs	111,797	112,180	383
Brokerage	86,592	82,817	-3,775
401k	87,861	81,166	-6,695
Roth IRA	40,337	38,046	-2,291
SEP IRA	199,268	187,979	-11,289
529 Savings	42,478	41,008	-1,470

Total Assets	$635,322	$609,264	-$26,058
			(-4.10%)

We've had a bit of a correction over the past month as the S&P 500 index dropped 6.87% since the last update:

(chart courtesy of msn.com)

The unemployment rate unexpectedly dropped to 9.7% in January, although all of the recent snow we've had on the East Coast could take a bite out of the February numbers. The price for crude oil has dropped along with the stock market, although it has creeped up to about $75 per barrel over the past few days.

I pretty much have no money moves planned for near future, although I may look into some Series I savings bonds in April again this year. Even so, the constant rate cuts impacting savers like me has been depressing. :(

Right now, I'm focusing quite a bit on work, updating my home IT infrastructure, and chugging along with my personal and business tax returns. Fun, fun, fun...

January 2010 Financial Asset Roundup

2010-01-12T10:59:00.004-05:00

Here are my current financial assets as of the market close on January 11th, 2010:

Asset	Dec 2009	Jan 2010	Change
Checking	10,637	371	-10,266
Money Market	45,489	40,663	-4,826
Savings Bonds	25,865	25,955	90
Treasury Bills	0	0	0
CDs	100,520	111,797	11,277
Brokerage	85,538	86,592	1,054
401k	84,117	87,861	3,744
Roth IRA	33,966	40,337	6,371
SEP IRA	191,917	199,268	7,351
529 Savings	41,070	42,478	1,408

Total Assets	$619,119	$635,322	$16,203
			(2.62%)

The Santa Claus Rally has continued into 2010 as S&P 500 index rose 3.67% since the last update:

(chart courtesy of msn.com)

The unemployment rate remained at 10% for December, but the payroll number for November was revised to a net gain of 4,000 jobs, the first increase in almost two years. The price for crude oil has been trending up since last month, but it has eased a bit to about $81 per barrel as warmer weather is expected.

As for money moves, I had a small 1 year @ 2.90% APY CD mature at Patelco Credit Union earlier this month and moved that cash along with some money sitting in money market accounts to a Penfed 5 year @ 3.50% APY CD. I can also yet again claim that I've eclipsed my previous peak in financial assets for the fourth month in a row.

My next area of focus is tax time. During the first quarter this year I'll need to get my 2009 S Corp taxes, SEP IRA contribution, and reporting nailed down followed up with my personal tax returns. Once that is done I'll get to find out if my largest client is interested in renewing our contract in Q2. :)

Penfed "high yield" January CD promotion

2010-01-04T10:30:00.003-05:00

Pentagon Federal Credit Union is once again offering very competitive long term CD rates to start the new year. Kudos to The Bank Deals Blog for being on top of this yet again. It's not quite like the 6.25% APY Penfed offering of three years ago (has it really been that long?), but the new rates are among the best currently available:

3-Year: 3.00% APY

4-Year: 3.25% APY

5-Year: 3.50% APY

7-Year: 3.75% APY (down from 4.00% APY in December 2009)

On New Year's Day I put some cash into Penfed 5 year CDs. While the rate isn't wonderful, it's a reasonable parking place for now considering the financial strength of Penfed, federal deposit insurance (via NCUA), and a pretty reasonable six month dividend penalty for early withdrawal. Please note that these rates could disappear at any time, so I would grab these CDs ASAP if you're so inclined.

Merry New Year!

2010-01-01T11:00:00.003-05:00

Happy New Year and welcome to 2010! The stock market roller coaster, job losses, plummeting real estate values, and economic uncertainty of the past 12+ months made 2009 a lousy year for many of us.

Here's to the hope that 2010 will be much better on all of those fronts and then some (particularly if you are on a train and disguised as an exchange student from Cameroon):

Happy Holidays!

2009-12-24T10:58:00.005-05:00

Now that the shopping is done, the gifts are wrapped, and the cookies are baked, it finally feels like Christmas around here. I'd like to thank you all for stopping by and wish you a happy and healthy holiday season.

I hope Santa stops by our place pretty early in his journey this year. The young Frugalson's heads will explode if they don't get to open some presents soon:

Grocery price inflation update

2009-12-18T09:10:00.005-05:00

I haven't looked at grocery price trends for about a year now, so it's about time for an annual update.

After checking out the numbers, I was pleased to see that our grocery spending through November 2009 has actually decreased by 13.6% over the same period last year, and in fact 2009 grocery spending is even down 3.7% from my 2006 levels!

Let's take a look at some of the reasons for the nice savings I've seen over the past year. Once again, I should note that my numbers reflect some pretty serious effort on my part to cut grocery spending:

In March I bought $1320 worth of Shaw's Supermarket gift cards for $1200 as part of their tax refund rewards program.
I spent about $38 acquiring coupons to cut grocery spending this year, as opposed to about $52 during the same period last year.
I've made much more use of printable coupons in 2009. I've found lots of great ones at sites like smartsource.com, redplum.com, kraftfoods.com, eatbetteramerica.com, coupons.com, and simpleanddelicious.com (to name a few).
Stores have been much more aggressive with sales and promotions, particularly with Catalina Marketing coupons that print out at the register and offer an incentive for your next purchase. For example, on Monday I bought the following items at Shaw's Supermarket for $1.64 out of pocket after sale prices, coupons, and the three "$5 off your next order" Catalina coupons that printed out after my purchase:
- (1) 5lb bag of Gold Medal Flour
- (2) boxes of Cinnamon Toast Crunch cereal
- (2) boxes of Cocoa Puffs cereal
- (6) cans of Green Giant vegetables
- (1) box of Betty Crocker cake mix
- (5) cans of Progresso soup
- (2) boxes of Green Giant frozen vegetables
- (3) bags of Green Giant Vally Fresh Steamers frozen vegetables

Even better, this savings has occurred despite a lousy yield from our garden due to the wet growing season we had, our not participating in Community Supported Agriculture (CSA) program this year, and stealth grocery price increases where package sizes shrunk yet continued to sell for the same price.

I have to admit that I've been very surprised by the amount of discounting I've seen over the past year. It appears that the economic downturn and resulting fall in commodity prices has really motivated producers and retailers to offer consumers nice discounts and incentives to shop in their stores and purchase their products. Hopefully the trend will continue over the next year and help everyone keep a few more bucks in their pockets during this recession.

2009 Restaurant holiday gift card promotions

2009-12-17T14:22:00.002-05:00

Once again, let's take our annual look at chain restaurants offering gift card deals for a discount on future dining:

Bertucci's - Receive $5 thank you card with every in-store $25 gift card purchase through 12/30/09.

Uno Chicago Grill - Receive $5 bonus with every $25 in-store or online gift card purchase through 12/31/09. Gift voucher is valid 1/1/10 - 3/31/10. Combine gift card with coupons received when you join the UNO Insider's Club.

T.G.I. Friday's - Receive $5 bonus bites card with every $25 gift card purchase through 12/31/09 plus an instant win entry card where you can play a spin and win game at www.fridays.com/giftcardgiveaway.

Applebee's - Receive $10 bonus card with every $50 in-store gift card purchase through 12/31/09. Bonus card is valid 1/1/10 - 2/28/10.
Friendly's - Receive $5 bonus card with every $25 in-store gift card purchase through 1/3/10. Bonus card is valid 1/4/10 - 2/28/10
Smokey Bones - Buy a $25 gift card in-store through 12/27/09 and get $5 off your meal instantly plus $10 to use on a future visit. Combine gift card with coupons (like this one for $10 off $20 through 12/20/09) received when you join the Bones Club at smokeybones.com.

December 2009 Financial Asset Roundup

2009-12-14T14:22:00.004-05:00

Here are my current financial assets as of the market close on December 11th, 2009:

Asset	Nov 2009	Dec 2009	Change
Checking	279	10,637	10,358
Money Market	39,035	45,489	6,454
Savings Bonds	20,781	25,865	5,084
Treasury Bills	0	0	0
CDs	120,585	100,520	-20,065
Brokerage	82,599	85,538	2,939
401k	84,709	84,117	-592
Roth IRA	33,705	33,966	261
SEP IRA	191,095	191,917	822
529 Savings	40,525	41,070	545

Total Assets	$613,313	$619,119	$5,806
			(0.94%)

The S&P 500 index continues to touch yearly highs as it has risen 1.22% since the last update:

(chart courtesy of msn.com)

Unfortunately my update was a little delayed this month as I found that my main PC was infected with the Internet Security 2010 virus on Friday. Boy, was getting that cleaned up a PITA! I've been pleased to see the recent stock market gains have hung in there, and even better unemployment actually went down in November from 10.2% to 10%. Crude oil has continued to fall and is back below $70 per barrel on demand concerns.

As for money moves, I had two Bank of America Risk Free CDs (9 months @ 2.10% APY and 9 months @ 2.50% APY) mature since the last update and used some of that cash to buy myself some November 2009 paper I Bonds (I bought electronic ones at treasurydirect.gov in April 2009) as well as fund 2009 Roth IRA contributions for myself and Mrs. Frugalson (hence the large balance temporarily in my checking account). I do have a modest 1 year @ 2.90% APY CD maturing at Patelco Credit Union next month, but will probably just cash it out since their rates have not been competitive for quite some time. At least I can thump my chest about the fact that I've eclipsed my previous peak in financial assets for the third month in a row.

On the business front, I'm in the process of wrapping up 2009 for my S Corp. Ironically, the main thorn in my side right now is migrating to the new QUEST web site being deployed by the Massachusetts Department of Unemployment Assistance (DUA). Hopefully I'll get that situation resolved soon and will make a few final business purchases before December 31st. Once we hit 2010 I can focus on fully funding my 2009 SEP IRA contributions before tax time.

Other than that, I'm trying to finish up things like Christmas-related preparations and 2009 charitable contributions. I'll be relieved when that's all done and hope that 2010 will work out as well as 2009 has.

GUYS: Victoria's Secret Black Friday PJ's deal

2009-11-27T10:29:00.005-05:00

For all of you guys out there who have no clue about what to get the lady in your life for the holidays, here is a nice way to score a bunch of Victoria's Secret stuff at a decent price for your wife/girlfriend/mom/sister.

Here's the meat of the deal:

First, you can get a free Runway Bag which includes Dream Angels Heavenly Eau De Parfum, Love Spell splash, and Beauty Rush lip gloss with a $60 purchase today only with coupon code VSFRIDAY (details here).

Second, you can get a free set of slippers with a sleepwear purchase through 12/8/2009 (details here).

Third, you can get 20% off your entire order through 12/2/2009 with coupon code VSSAVE20.

Last, sweeten the deal with an additional 6% off by shopping through ebates.com plus new Ebates users get an additional $5 signup bonus (see my take on ebates.com here).

For the scenario I put together for Mrs. Frugalson, I picked out one pair of The sleepover flannel pajama, one pair of The pillowtalk cotton pajama (back ordered till 12/12/09), a pair of Thermal slippers, and the free Runway Bag for a total of $70.59 shipped.

Happy Thanksgiving!

2009-11-26T11:37:00.005-05:00

Since today is a day of giving thanks, I wanted to wish everyone out there a Happy Thanksgiving.

I'm thankful for many things, the most important being the health, well-being, and happiness of my family. I'm thankful for my job and my savings and for being able to provide a comfortable life for my wife and children. And last, but not least, I am very thankful that I was fortunate enough to be born an American.

November 2009 Financial Asset Roundup

2009-11-10T14:47:00.004-05:00

Here are my current financial assets as of the market close on November 9th, 2009:

Asset	Oct 2009	Nov 2009	Change
Checking	297	279	-18
Money Market	27,971	39,035	11,064
Savings Bonds	20,695	20,781	86
Treasury Bills	0	0	0
CDs	130,605	120,585	-10,020
Brokerage	78,851	82,599	3,748
401k	82,936	84,709	1,773
Roth IRA	33,314	33,705	391
SEP IRA	188,409	191,095	2,686
529 Savings	39,735	40,525	790

Total Assets	$602,813	$613,313	$10,500
			(1.74%)

The S&P 500 index continues to reach for yearly highs as it has risen 2.01% since the last update:

(chart courtesy of msn.com)

There's a lot to say, but not much time to say it (apologies for rushed content in advance). The recent rise in the stock market has been nice to see, but we still have a growing unemployment problem as it reached a new 26 year high of 10.2%. We're one step closer to health care reform as the House of Representatives passed a health care reform bill on Saturday. Crude oil has fallen back below $80 per barrel as the worry about hurricane Ida impacting oil production looks to be a short term problem.

As for money moves, I had already opened an ING Direct 2.10% APY 12 month CD in anticipation of my E-Loan 4.36% APY 12 month CD that matured a couple of weeks ago. I also have a 9 month Bank of America Risk Free CD @ 2.10% APY maturing in a couple of weeks and will probably use the cash to buy some November 2009 paper I Bonds (I bought electronic ones at treasurydirect.gov in April 2009) as well as fund my 2009 Roth IRA contribution. I'll still need to fund Mrs. Frugalson's Roth, but will probably hold off on that until next month.

On the business front, my projected 2009 S Corp revenue looks like it will be down about 9% from 2008 due to the loss of a long time client. And while it's hard to know for certain, 2010 revenue could be down an additional 7%. While that is a disappointment, things could be much worse considering the current state of the economy. I don't know how long those revenue levels will last, but while less money is coming in I may end up spending the next few years shuffling a good portion of my CD ladder money into Roth IRA's while still being able to make nice contributions to retirement and college savings. In any event, at least I've eclipsed my previous peak in financial assets for the second month in a row.

And finally, how about a quick word on grocery prices. Apparently, consumers aren't really noticing much of a difference in prices even though inflation has moderated quite a bit. Heck, even the Banking Guy at the Bankdeals Blog mentioned it last month. The thing is I have been seeing a pretty nice drop in my grocery spending over the past year, which I will examine more closely in a grocery price inflation update once my November 2009 numbers are in.

DIY auto maintenance: a cheap oil change

2009-11-05T15:22:00.011-05:00

I just changed the oil and filter for my 11-year old Nissan and realized I used up the last of my stash of 5w-30 motor oil. I'm always looking to save a few bucks, so I figured I'd share how I look for a deal when I need to stock up on oil:

Look for rebates: The easiest thing to do is to simply run a google search for rebates for your favorite brand of oil: "Quaker State rebate", "Valvoline rebate", "Pennzoil rebate", "Castrol rebate", "Mobil oil rebate", etc.

Check out the Product Rebates, Sales and Promotions forum at bobistheoilguy.com and the DIY Oil Change Deals discussion at slickdeals.net for leads on cheap oil.

When in doubt, stop by your local Walmart: Walmart has a good selection of motor oils at a decent price. I know that I can always go in there and get a 5 quart jug of brand name 5w-30 or 5w-20 conventional (dinosaur ;) ) oil for about ten bucks.

I pretty much buy whatever brand name conventional oil (Quaker State, Castrol, Valvoline, Pennzoil, Mobil, etc.) I can get the best deal on after sale price and rebates. This strategy has served me well over the years, which includes running three cars into the ground with more than one hundred and fifty thousand miles on the odometer.

The other consideration with an oil change is of course, the oil filter. I used to buy the cheapest one I could find until I read an early version of Oil Filters Revealed several years ago. Since then, my first choice tends to be a Mobil 1 oil filter. They are pricey, but I have been able to buy a decent supply of them at a reasonable cost when they occasionally pop up on ebay. Failing that, I usually just buy the OEM filters for my Nissan at everythingnissan.com and my Honda at hondacuraworld.com despite the cost-saving measures imposed on their filters within the past few years (switching from metal to cardboard endcaps, for instance).

So, using the above strategy, I have found the following rebates of interest:

$10/$15 off Castrol Edge synthetic oil through 12/15/09 (pdf)

$6/$7/$12 off Mobil oil through 11/30/09 (link)

$5/$10/$15 off Pennzoil oil through 11/30/2009 (pdf)

$5/$10/$15/$20 off Valvoline oil through 12/31/09 when you sign up for their Long Haul Program (link)

As for myself, I think I'm going to stop by Walmart and see what a five quart jug of Pennzoil SUV, Truck & Minivan/Pennzoil High Mileage Vehicle motor oil costs because that $10 rebate could make it a sweet deal. Good hunting! :)

Fixed-income outlook for 2010 and beyond

2009-10-26T14:11:00.009-04:00

I was reading about the plight of savers at the Bank Deals Blog last week and was sadly reminded about how much interest rates have dropped over the past two years. While I can certainly understand how savers like me are disappointed about current fixed income rates, I was particularly disappointed by the amount of misplaced anger demonstrated by commenters there. One particular anonymous commenter seemed to make a few posts pointing the finger at President Obama followed up by more anonymous posts agreeing with himself.

I was moved to leave a comment there indicating that the beginning of the recession as well as the cuts to the FOMC target rate resulting in the current near-zero level all occurred before Obama even took office, but obviously that was not well received. The first thing that anti-Obama sentiment made me think of was this humorous political cartoon by Mike Luckovich of the Atlanta Journal-Constitution:

That being said, I stand by the assertion that I made in my comment on the Bank Deals Blog:

It is sound monetary policy to lower interest rates to help facilitate an economic recovery. When the cost of borrowing is low, economic activity is generated by businesses and individuals buying vehicles, equipment, real estate, etc.

During the recession of 3/2001-11/2001, the FOMC lowered the federal funds rate from 5% to 2% to do just that. While one can argue that they kept low rates in place far too long (helping pump up the housing bubble), the resulting low savings rates were accompanied by low auto and home loan rates that stimulated a lot of economic activity.

With that in mind, let's check out what happened to my savings rates during the previous recession lasting from March 2001 until November 2001. For data, I'm using the interest rate earned on my E*Trade (formerly Telebank) Money Market account during that time:

As the above graph shows, the 4.69% rate I was earning when the recession began in March 2001 quickly collapsed along with the FOMC target rate as both stayed pathetically low for about three years after the recession ended in November 2001.

This data pretty much shows that interest rates were lowered during the last recession as a way to stimulate borrowing, which ultimately leads to increased economic activity. I certainly took advantage of that low rate environment (as well as other incentives) to buy a new car and refinance my mortgage to the 5.375% fixed rate mortgage that I still have today. And no, that wasn't President Obama's fault either. :p

Now let's look how rates fared during the current recession using the ING Direct Orange Savings rate during that time. However, we don't know if we're out of the current recession yet, so I am making the assumption that we are still in a recession until we know otherwise:

Once again, we can see a precipitous drop in the ING Direct rate and the FOMC target rate once the current recession began in December 2007. The worrisome part is that with a near-zero FOMC target rate (represented as 0.25% in my graph), the interest rate on the ING Direct account could potentially drop quite a bit lower before rates stabilize. Even worse, we could be looking at low rates on our savings accounts through late 2012 if the game plan from the previous recession is any indication.

As a saver, I think that we're looking at low rates on our money for quite some time. There may be a few opportunities here and there (particularly inflation-indexed ones like TIPS and I Bonds), but I fear that those opportunities will be far and few between.

September CPI-U numbers released: Pass on October 2009 I Bonds

2009-10-15T08:08:00.003-04:00

The U.S. Bureau of Labor Statistics released the September 2009 Consumer Price Index (CPI-U) inflation data this morning, which increased by 0.06% last month.

As I have mentioned many times before, now is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for October 2009 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from March 2009 (212.709) and September 2009 (215.969) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for October 2009 issue I Bonds:

That would mean these bonds would earn a rate of 0% (using 0.10% fixed & -5.56% variable) for the first 6 months and 3.17% (combined 0.10% fixed & 3.07% variable) for the second 6 months. With a pathetic 0% composite rate and 0.10% fixed portion, this is not an attractive investment when compared to the 1 year CD @ 2.25% APY currently being offered by ING Direct.

As expected, October 2009 I Bonds are not worth considering at this time. It is worth re-evaluating I Bonds in late November 2009 though, since it is possible that even moderate increases in inflation will make I Bonds more attractive than one year CDs with 2% yields. I personally will be waiting until late April 2010 before considering an I Bond purchase.

Free ZoneAlarm Pro firewall software today only (10/13/09)

2009-10-13T10:51:00.005-04:00

Once again, Check Point Software is offering a free download of its ZoneAlarm Pro firewall software today. This offer is good today only as part of a Halloween-themed promotion:

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Limit one per customer

Credit card required for verification

Check out zonealarm.com for more info.

October 2009 Financial Asset Roundup

2009-10-12T15:00:00.003-04:00

Here are my current financial assets as of the market close on October 9th, 2009:

Asset	Sep 2009	Oct 2009	Change
Checking	474	297	-177
Money Market	30,857	27,971	-2,886
Savings Bonds	20,612	20,695	83
Treasury Bills	0	0	0
CDs	120,680	130,605	9,925
Brokerage	86,601	78,851	-7,750
401k	80,130	82,936	2,806
Roth IRA	32,405	33,314	909
SEP IRA	184,252	188,409	4,157
529 Savings	38,799	39,735	936

Total Assets	$594,810	$602,813	$8,003
			(1.35%)

The S&P 500 index continues to hover around yearly highs as it has risen 2.62% since the last update:

(chart courtesy of msn.com)

Is the recession over? A bunch of economists seem to think so, although we're looking at a slow recovery. In other shocking news, unemployment hit a new 26 year high of 9.8%.

Crude oil has risen to around $74 per barrel as hope for an economic recovery (and a rise in demand for energy) continues. It has certainly been nice to see gasoline dip below $2.50 per gallon, but that could change soon if this run on oil continues.

As for money moves, my driveway paving project is finished (yay!) and paid for (boo!). I ended up rolling my Penfed 6% APY CD that matured last month into a HSBC 2.00% APY 12 month CD and last week opened a ING Direct 2.10% APY 12 month CD in anticipation of my E-Loan 4.36% APY 12 month CD maturing later this month. I also took advantage of the buoyant stock market and sold my position in computer maker Hewlett Packard Company (HPQ) as it recently rose to a 52 week high.

And finally, as I struggled to tally my assets with the newly upgraded Fidelity Full View (a Fidelity-branded Yodlee clone) this morning, it finally dawned on me that my financial assets have exceeded the $600k level and finally eclipsed my previous peak from December 2007. I still have a way to go to recover from the $36k worth of SEP IRA contributions I've made since then, but hitting $600k in assets is still a nice psychological barrier to break through.

My experience getting my driveway repaved: Part 4

2009-10-01T14:04:00.006-04:00

This is Part 4 of my series on getting my driveway repaved, where I summarize the last stage of this project.

As of Part 3, I had been waiting for the paving contractor to return and apply the top coat of asphalt to my driveway. I was initially told that they would return in two weeks, but I ended up waiting four weeks (despite pestering them for status updates) for the work to be completed.

The last phase of this project began as abruptly as the previous one. On 7 AM one morning, the small army of men and heavy equipment returned with a dump truck full of asphalt.

In the picture below, the foreman (a Yankee closer Mariano Rivera doppelganger) mans the paving machine used to apply the top coat of asphalt while an equipment operator with a striking resemblance to Wall Street yakker Zachary Karabell follows with a vibrating paving roller:

After about 90 minutes of work, a 1.5" asphalt top coat had been laid and compacted and the job site was cleaned up. Other than the fact that we were told to keep off the driveway for three days until the asphalt had hardened sufficiently, we were done!:

Now that this is over, I have to say my biggest frustration with this project (other than the cost) was the amount of time it took from start to finish. It certainly wasn't easy to get the owner of the paving contractor on the phone to coordinate things, but I'm guessing that he is legitimately busy since he still hasn't stopped by to get the rest of the money that I owe him. :)

So what have I learned from all this?

Get multiple quotes and remember that the lowest price isn't necessarily the best way to go. Also, see if you can score a discount by paying cash.

Do your homework. Ask for referrals from friends, family, and neighbors. Check contractors out with the Better Business Bureau, building inspectors, state licensing organizations, etc.

Be prepared to wait. I signed a contract one month after requesting quotes, had the work start one month later, and had the job completed one month after that. Even though the housing bubble has popped, getting contractors to stop by and return my calls wasn't always easy.

Bizarre coupon of the day

2009-09-25T08:19:00.003-04:00

I search through quite a few coupons when I'm trying to save a few bucks on my purchases. Some are for products I might buy, some are for products I will never buy, and some are simply so strange that I'm not sure what to make of them:

From what I can gather, Purina's Healthful Life and Naturals lines of Cat Chow seem to bestow the power of yoga on your faithful kitty. It never occurred to me that a cat could achieve the "standing tree" posture, but now I know better.

Starz Free Preview this weekend on DirecTV

2009-09-16T09:05:00.004-04:00

Starz and DirecTV are offering a Free Preview Weekend starting tomorrow, September 16th and ending on Sunday, September 20th.

If you are a DirecTV customer like me, all programming on channels 520 - 533 will be free for the entire weekend, so fire up your DVR and get the most out of this promotion. Enjoy!

My experience getting my driveway repaved: Part 3

2009-09-15T14:12:00.006-04:00

This is Part 3 of my series on getting my driveway repaved, where I discuss the contractor that I decided to go with and summarize the work done so far.

After getting quotes from all the paving contractors I discussed in Part 2, I immediately eliminated Companies B and E. Neither company seemed concerned about simply paving over the portion of my binder coat that moved when I walked on it, a serious structural problem that Companies C and D convinced me of. Further, paying Company B $4200 to replace a small portion of my binder and pave over the rest seemed very expensive considering that Companies C and D would do much more extensive work for less than $1000 more. As for Company E, they just gave me the used car salesman vibe and I did not feel comfortable working with them at all. That left me with Company C and Company D, either of which I was comfortable doing business with.

Ultimately, the cash price of $5000 to remove, regrade, and replace the entire driveway combined with the professional proposal and references put Company D at the top of the heap. Their proposal was valid for 30 days, outlined the work to be done (and paid for) in three stages: Commencement of work (30% payment), Completion of binder (40% payment), and Completion of top coat (30% payment), and required my signature to get the project started. After having a follow-up phone call with the owner of Company D to answer my few remaining questions, I sent them a signed copy of the proposal and periodically checked in with the owner for my start date since I would need to make a trip to the bank for the cash to pay for all of this.

After a few weeks of delay due to episodes of heavy rain and employee vacations, it was clear that my initial request that this work be completed before the end of August was not going to happen. However, the lack of work ended abruptly in early September when a dump truck and backhoe showed up and made quick work of removing and carting away my old driveway:

The following day, a small army of men and equipment came by and regraded my driveway with processed gravel (to direct water runoff away from the house) and compacted it with a roller:

Once that was complete, a paving machine put down two dump trucks full of asphalt that now make up my new base coat of binder:

As of today, the job is not complete since I still do not have the top coat on my driveway. From our first conversation, the owner of the company recommended that the binder sit for a couple of weeks before he put the top coat on. I admit that I know next to nothing about asphalt, but it was a big contrast to every other company I spoke with who said that they would do the entire job in one day. Oh well... I am an impatient person by nature, but I have to admit waiting an extra couple of weeks isn't really a big deal.

Next up is Part 4 where I will hopefully discuss how thrilled I am with my brand spanking new $5000 driveway. :D Company D is supposed to come by and finish the job this week, so hopefully the weather and their schedule will make that happen.

September 2009 Financial Asset Roundup

2009-09-11T09:30:00.003-04:00

It's hard to believe it has been eight years since the 9/11 attacks on our country. And even though the shock of 9/11 has diminished somewhat over time, those memories will live with me until the day I die.

That being said, on to the business at hand. Here are my current financial assets as of the market close on September 10th, 2009:

Asset	August 2009	September 2009	Change
Checking	457	474	17
Money Market	34,603	30,857	-3,746
Savings Bonds	20,528	20,612	84
Treasury Bills	0	0	0
CDs	120,198	120,680	482
Brokerage	81,501	86,601	5,100
401k	75,752	80,130	4,378
Roth IRA	30,961	32,405	1,444
SEP IRA	177,180	184,252	7,072
529 Savings	37,022	38,799	1,777

Total Assets	$578,202	$594,810	$16,608
			(2.87%)

The S&P 500 index has hit an 11-month high as it has risen 3.68% since the last update:

(chart courtesy of msn.com)

The hope of the recession ending continues with the Federal Reserve reporting that the economy is stabilizing. Unemployment hit a new 26 year high of 9.7%, although fewer jobs were lost in August than in July. Hopefully the unemployment numbers will soon start trending down on a regular basis. People having steady work would certainly help us wind our way through the housing mess we're currently in (except for fools like this, of course).

Crude oil has continued to hover above $70 per barrel and I wonder how high it will rise if this economic recovery is for real. And not to sound like a broken record, but I'm still sick of the partisan whining about health care reform. Would the voters of South Carolina please let Rep. Joe Wilson (You lie!) know that his unprofessional and disrespectful behavior does nothing but embarrass you and himself? Also, could Sarah Palin do us all a favor and finally give up the tired death panel nonsense and stop trying to create panic over a non-issue? Ugh, I hate politics.

As for money moves, I dropped some serious coin on getting my driveway repaved and will be relieved when it is finished next week. The first of my Penfed 6% APY CDs is maturing later this month, and even the paltry 2% APY Penfed CD that I was considering putting the cash in has fallen to 1.25%. With deposit rates so pathetically low, I will probably just leave the cash in my HSBC online savings account and stay liquid if and when a better opportunity comes along.

My experience getting my driveway repaved: Part 2

2009-09-04T14:07:00.006-04:00

This is Part 2 of my series on getting my driveway repaved, where I detail the experience I had with the five paving contractors that I called for quotes. For my initial call the candidates, I conveyed a simple message:

I'm looking to get an estimate for a top course of asphalt for my existing driveway. I currently have a binder course only and am looking to get this job completed before the end of August.

Now, on to the candidates:

Company A: These guys were great on paper. They've been in business since 1933, are a BBB Accredited Business with an A+ rating, and have a professional looking web site. I left a message with a receptionist and was called back by the owner himself less than an hour later politely telling me that they would not pave over binder put down by someone else. I asked him who he would call if he were in my situation and he gracefully sidestepped my question. (One interesting addendum: when I was speaking with one of the employees of the contractor I eventually went with, he mentioned Company A by name as one who has a good reputation in the paving business.)

Company B: This company was also great on paper: BBB Accreditation with an A+ rating, a professional looking web site, and the Craigslist ad boasting of "recession prices". I was called back a couple of hours after leaving my message and a polite and professional representative came by to check out my driveway and give me a quote that same afternoon. He recommended replacing a small portion of my existing binder and paving over the rest for about $4200 (Holy Shnikes!). He's made several follow up phone calls since then, which eventually became quite annoying even though they I initially thought he was being professional.

Company C: These guys are based in the town that I grew up in and I remember seeing their trucks around town when I was a kid. They did a nice job paving my in-laws driveway many years ago, had a B- rating with the BBB (with no complaints in three years), and they advertised on Craigslist. I called them on Tuesday afternoon and the owner stopped by a few hours later. His diagnosis of my driveway was more dire than Company B. He told me that quite a bit of my binder had failed and would need to be replaced and that he would get back to me in a day or two with a quote. I didn't hear back from them for a week, so I left another message and the owner called back the same night. This guy spent a lot of time on the phone with me and quoted me $4800 for replacing the failed portion of my binder and adding a topcoat or $6500 to remove everything and rebuild the entire driveway. He recommended that no matter what I decide to do I should not put a top coat over what I have now because the binder was in such terrible shape. He suggested that doing nothing and letting the existing driveway last as long as it can would be a better choice.

Company D: This company had paved a few of the driveways in my neighborhood and has a B rating with the BBB. I left a voicemail and the owner stopped by a few days later after a missed appointment and some phone tag. His assessment of my driveway was very similar to Company C: the majority of my binder coat was not salvageable. To accentuate his point, he took out a pocket knife and removed a chunk of my binder coat. He told me that this coat of asphalt should be 1.5" thick, where mine is less than 1" thick in some places:

He called back a few days later and quoted me a price of $5400 to replace my entire driveway, which I was able to get down to an even $5000 by offering to pay cash for the job. The owner followed up a couple of days later by mailing me a written proposal and a list of references for work done in the town I live in.

Company E: These guys also paved a couple of driveways in my neighborhood. In fact, the owner stopped by my house a couple of years ago when working on my neighbor's driveway and did the "I'm doing a job in the area and have an extra truck of asphalt" routine. I passed on his generous offer that day, but my neighbor told me that the guy did a good job for a great price. I was also shocked to see that they were a BBB Accredited Business with an A+ rating and a good complaint history, so I ignored that little voice inside my head and left them a voicemail. The owner called back a few days later and said that he was eager to get a deal done today (not a good sign) and I said I was still in the process of getting quotes and was not ready to commit to a deal. He stopped by a few hours later and after quickly looking at my driveway he said he would put a top coat on my existing binder for $3000 and had come and gone in less than five minutes.

Next up is Part 3 where I discuss who I decided to go with and why.

My experience getting my driveway repaved: Part 1

2009-09-02T14:25:00.005-04:00

I must admit that our driveway was a minor consideration when our house was built 10+ years ago. It had became one of many small line items to be completed during the flurry of activity as we watched our new house take shape. At the time, the builder would only agree to put in a binder course (the bottom "foundation" layer of an asphalt driveway) but not a top coat apparently because our street and sidewalks had not yet been paved.

Over time, many of our neighbors put in new driveways with a 1.5" binder course and a 1.5" top coat. Being "frugal", I never seriously considered putting the top coat on our driveway until this past winter when the heavy snow left our driveway a squishy mess during the many freeze/thaw cycles we went through. I remember being a bit surprised when parts of the driveway were moving as I walked on it to get the mail out of the mailbox. At that point, I decided it was time to look into getting this mess taken care of when the weather warmed up a bit:

A couple of months ago, I finally sat down and tried to come up with a way to get some quotes from a few reliable paving companies. I figured that I should be well positioned to get a quality job done at great price since the price of oil (a major component of asphalt) is down about 50% over the past year and I have cash to spend in a recession following the collapse the housing bubble. Looking back, it's hard to believe I was ever that naive. :)

With that in mind, I put together my strategy for finding a few vendors to contact for a quote:

The stodgy old phone book: I went through local phone books and yellow pages and added every paving contractor that I could find to a spreadsheet.

The Better Business Bureau: I looked up the reliability report for every paving contractor in my spreadsheet. Some were an BBB Accredited Business, some had a great rating, one had a F rating and numerous unresolved complaints, and two were apparently no longer in business.

Craigslist: I checked out Craigslist to see if any of the companies on my spreadsheet were hungry for work and embraced the web as a way to find new business. As luck would have it, two of the companies on my list had posted on Craigslist. One had paved my in-laws driveway many years ago and the other was a BBB Accredited Business with an A+ rating and a Craigslist ad mentioning "recession prices".

The company web site: As an information technology (IT) professional, I wondered how many of these companies actually spent the time and expense building and maintaining a professional looking web site. It turned out that five out of twenty five companies in my spreadsheet had a decent-looking web site (including the company with the F rating from the BBB).

Ask friends and neighbors for referrals: Not too much detail from these folks, but I found four people with a positive paving experience to share. Unfortunately, one of these companies was no longer in business.

Check them out with the Massachusetts Department of Public Safety: This turned out to be a disappointing once I figured out that paving contractors in Massachusetts are not required to be licensed.

Using the above criteria, I ended up calling five paving companies and asked them to come by and give me a quote for an asphalt top coat on my driveway. My quest for the perfect (and affordable) driveway continues with Part 2 of this saga where I lay out the details of how things played out with those contractors. Stay tuned!

Health care crisis? I'm Exhibit A

2009-08-25T13:45:00.003-04:00

I've shared my worries about my ever-increasing health insurance costs since I started this blog and figured that the nationwide hand-wringing over health care reform made it an opportune time for an update.

The renewal notice for my 2009-2010 family HMO insurance plan arrived earlier this month and beat me into submission with a 14% increase in premiums. I've looked into downgrading my plan for the fourth time since 2001 in an attempt to cut costs, but the tax treatment that comes along with the higher deductible plans doesn't really buy me much when I weigh the risks and costs of going that route.

The numbers don't lie. Since 2001, my health insurance premiums have increased by 116% while the rate of inflation during that time is a much lower 22% (so says usinflationcalculator.com):

For many reasons, this latest increase has been the hardest to take of them all. Most importantly, my monthly health insurance premium has now eclipsed my monthly mortgage PITI (principal, interest, taxes, and insurance) obligation. Even more disturbing, The Commonwealth Fund foundation estimates that family premiums could double by 2020 if cost growth continues on its current course. Good grief!

Isn't it about time that something is done about this? President Obama at least seems to be trying, although I'm not convinced that his initiatives will do much to halt the escalation of health care costs. What we really need is bipartisan support for health care reform and meaningful debate to get this done properly.

So, instead of disrupting town hall forums and calling the President a Nazi or spreading foolish death panel talk, how about asking some tough questions and engaging in some productive debate? How about outlining a plan that will work instead of merely stating how flawed the Democrats' plan is? What we need is someone who will put politics aside and come up will some real reform that will sensibly cut health care costs for all Americans. I believe that the person who has the stones to do just that will be shocked by the number of Americans who will stand behind them in a show of support. Sadly, I'm not sure such a person exists. :(