Christmas Shopping Deals on Name Brand Goods
Christmas deals on high end items like jewelry, watches, and designer clothes may be easier to find this shopping season. Some luxury brands are starting “private sale” websites where they sell their purses, watches, shoes, clothes, etc in online sample sales, according to a recent New York times article.
Luxury items aren’t really my thing but if you lust after name brand products, some of the private sale websites may be able to get you some of the best christmas deals, high end merchandise at considerable discounts. Below are some of the websites that the article mentions:
I’ve never been to a sample sale, when I sold on eBay I always bought surplus and overgoods from a third party. Based on the article, sample sales sound like a bit of a zoo, with a big line and wait to get in. Then, once inside you dash around trying to find the best deals before everyone else does, like the sample sale scene from the Confessions of a Shopaholic movie.
The private sale websites get rid of the waiting and dashing and can still save you a good deal of money off the retail price. So if you’re looking for something name brand this year, these may be some of the best websites for luxury christmas shopping.
ShareBuilder Promotion on Kids Investment Accounts
ShareBuilder Promotion – $25 Stock Gift Offer
ShareBuilder is running a promotion for anyone who wants to open a custodial account. If you open an investment account for your kid, ShareBuilder will match the first $25 you deposit into the custodial account.
Right after I read about the account bonus offer I saw an interview on Fox Business news with Dan Greenshields, the President of ShareBuilder, that talked about giving stock as a gift and ShareBuilder’s custodial accounts. He estimated that about 10% of their business are custodial accounts and the average balance of those accounts is around $1,000.
Buying Stock for Kids with ShareBuilder
With balances in the $1000 range, it sounds as though many parents see the ShareBuilder account as more of a way to teach their kids about the stock market and investing than as a way to pay for their college education. Greenshields mentioned that many parents will buy their kids stock in the ShareBuilder once or twice a year, at Christmas and maybe on their birthday. Since ShareBuilder allows you to buy partial shares of a stock or fund, parents can buy on events like these without having to worry if they’e putting in enough money to buy a whole share.
Although parents can buy 8,000 different stocks or funds through Sharebuilder, a lot of moms and dads buy stocks of companies that their kids might be familiar with like Disney, Apple, or Marvel (comics). Some of the other popular stocks held in custodial accounts are Google, GE, and an S&P 500 ETF. According to Greenshields you can also use a Coverdell ESA to save for college instead of a custodial account.
Do Kids Want Stock for a Gift?
The lady interviewing Greenshields commented that not many kids are probably very excited to get stock as a gift. My guess would be that it’s probably true when kids are younger and that they won’t really start to appreciate it until they get older.
However, I think it’s still a good idea and it even makes sense to buy it when they’re young. That way when they’re teenagers they can look back at how you’ve been steadily investing in the account for a number of years and how it’s value has increased. Of course over a shorter time period, especially the last 5 years, they won’t have as much to show for their money. But if it’s a longer timeframe, say 10 years, then the money you’ve been investing might make an impact on their teenage brain.
When they see you’ve been putting money away for a decade and now it can help them buy a car or contribute toward some other big purchase, hopefully they’ll see the value of investing over time.
My Experience with Stock Gifts
I started asking for shares of Wal Mart stock for birthdays and Christmas when I was in elementary school. Of course ShareBuilder didn’t exist back then so my grandparents would just give me IOU’s for the stock. Here’s something I shared as part of my grandfather’s memorial on this site:
My wife’s engagement ring will always remind me of my grandfather because he was the reason that I, as broke college student, was able to afford it. Ever since I was a little kid, he would excitedly tell stories of speeches given by Sam Walton at the Wal-Mart shareholder meetings.
All the enthusiastic talk of splitting stock and doubling shares convinced me to ask for Wal-Mart stock on every gift giving occasion as I grew up. The constant growth and splitting of the stock over the 80’s and 90’s left me with more than enough shares to fund the purchase of a diamond engagement ring when I met the love of my life in college.
I can still remember sitting at the bus stop one morning in 5th grade and figuring out how much all that Wal-Mart stock was worth. Of course, not every kid will be as much of a money dork as I was (am) but getting gifts of stock definitely made an impression on me.
I do think watching the balance grow is kind of infectious. During the interview, Greenfield noted how his son actually puts part of his allowance into his Sharebuilder account. Of course, his dad’s the president of the company so I wouldn’t expect that as a typical result. However, I think once a kid starts seeing some growth in their account (due to contributions and/or appreciation) they’re more likely to be excited about investing.
ShareBuilder Promotion
If you think that your kids will respond the same way to having their own shares of stock that I did then the ShareBuilder promotion they’re holding would be a good way to get started. As I mentioned earlier, ShareBuilder announced it will match the first $25 deposited into a new custodial account.
One of the reasons that ShareBuilder can be a good way for investors to get started in the market is that they let you buy stocks for only a $4 fee. Since there are no account minimums and no inactivity fees, they are pretty good for custodial accounts that only have a little money invested just a few times a year.
You can open a ShareBuilder Custodial account by clicking here.
Lending Money to Family – Reader Struggle
Lending money to family and friends is no picnic, just ask Brandon. He’s a reader who left the comments below on the post from earlier this year about lending money to family.
“My wife’s family does not have much care when it comes to money. they don’t make very much, have horrible credit, and their kids are following suit. My brother-in-law borrowed my car to drive to Salt Lake City and fell asleep totalling the car (but walked away). I only had liability on it so I was out $1500 which he said he would pay back. 3 years later- not a dime.”
Fortunately for my wife and I, our siblings and parents are good with their finances so we’ve never had to worry about whether we should lend money to them or not. I can see how your first instinct is to help out a family member in need, but things can get messy. Brandon goes on in the comments to share more details.
“My mother-in-law got behind on her mortgage and asked if I could lend her the $1k for two weeks till her next payday. that time all went well- no worries. then the next month the same thing and the next month. then she’d only have some of the money to pay back or one month none at all. She owed us $2500 (which is a lot for us i’m only 28).
Then she never borrowed anything for a year or so. Then the same thing again, with the guilt trip saying she can’t miss another payment or they’ll forclose. So I lend her the $1k which doesn’t get repaid. It’s now Christmas time so there is no chance of her having extra money to pay me back for who knows how long.”
This next part seems to be the real kicker, the thing that would probably get under anyone’s skin. Borrowing money and then not spending it wisely.
“I feel they just think we’re an ATM for them. The biggest problem I guess I have is that they don’t change the’re lifestyle to try and pay me back. My wife and I have 2 kids and a very modest house, no internet (i’m at work =D) a small tv with the cheapest cable package. Yet my in-laws have internet, x-tra movie packages and go out to eat more than us. I’m a very quiet person who like making people happy so I don’t wan’t to drive a wedge between us (that would kill my wife- her family is everything). What in the world can I do???”
I don’t have a good answer for Brandon since I’ve never been in that situation before. I’m hoping one of you will have some tips and advice to share with him about lending money to family. If so, please share it in the comment section below.
Year End Tax Planning Tips Follow Up
The year end tax tips I posted last month overlooked a few potential tax planning tips. Here they are:
Itemized Deductions
You may be able to save taxes this year and next by applying a bunching strategy to “miscellaneous” itemized deductions, medical expenses and other itemized deductions.
Homebuyer Tax Credit
Since the last article the $8,000 first time homebuyer credit has been extended to homes purchased before May 1, 2010 and the home buyer tax credit has been expanded to certain existing homeowners.
Estimated Tax Payments
If you anticipate a state income tax liability for 2009 and plan to make an estimated payment, consider making the payment before the end of 2009. However, this prepayment of state income tax may not be a benefit if the alternative minimum tax (AMT) applies.
Gift Tax Exclusion
You can save gift and estate taxes by making gifts sheltered by the annual gift tax exclusion before the end of the year. In 2009, you can give $13,000 to an unlimited number of individuals. This exclusion amount doubles for joint gifts made by a married couple
Early Mortgage Payment
Make your January mortgage payment before December 31st so you can claim the interest this year.
Happy tax planning and be sure to check with your tax advisor to see which of these tax strategies apply to you!
Lending Club Bonus
Lending Club is giving away a $64.62 bonus to each person that signs up as a lender on the Lending Club website. Not everyone is comfortable with the peer to peer lending model so Lending Club figured they’d let you try out the process of peer lending by letting you invest without using your own money.
According to the email I recieved, the Lending Club bonus value of $64.62 has significance because bank profits were $6.462 billion last quarter. Since they are working to cut out the banks as middlemen, Lending Club is also making a symoblic gesture with their bonus.
The Lending Club review that I wrote up a while back focused on borrowing money but you don’t get the bonus for signing up to borrow money, only if you become a lender on the site.
To qualify for the bonus and dip your toe in peer lending:
- Visit Lending Club using this referral link
- Open and activate your account
Lending Club will deposit the bonus into your account and the $64.62 will be available for you to invest on the site. The email didn’t say how long the promotion lasts for. My guess is it’s good through the end of the month but if you’re interested, I’d sign up soon to make sure you get the bonus. Happy peer lending!
Money Ning
Money Ning is the personal finance site I’m highlighting this week, run by David Ning. I don’t remember the first time I visited his site but I do remember at the time not knowing his last name and wondering what in the world a Ning was : )
You may remember David from the Budget Travel Book giveaway earlier in the year, he’s the author of that book. As you might guess from the fact he published a book, he’s quite action oriented, as you can read on his about page. Taking action is a big part of his personal finance philosophy, subscribe to his site and find out more about how he suggests you take action with your finances.
About David
David has been running Money Ning since July of 2007. He is an entrepreneur, published author, and soon to be father!
Recent Posts
- Don’t Have Cash? 4 Alternatives to Donate
- 5 Effective Ways to Protect Yourself From Inflation
- 13 Ways to Enjoy Life Without Spending A lot of Money
Here are other posts from around the personal finance web:
Investing
- Fidelity Reduces 529 Plan Costs @ Suns Financial Diary
- How to Set FSA Amount @ Bargaineering
- Why You Should Create an Accrual Account and How to Do It @ Cash Money Life
- TIPS (Treasury Inflation Protected Securities) at the Top? @ Good Financial Cents
Personal Finance & Debt
- A Few Things I Do to Organize My Finances @ Generation X Finance
- Holiday Challenge, Retirement, and Saving @ My Dollar Plan
- Expanding your means @ Brip Blap
- Rent a House to my Parents? @ Million Dollar Journey
- We’re In Debt: $150,679 In Debt, To Be Exact @ Frugal Dad
- Social Supply-Side Economics @ The Simple Dollar
- Check Out Cash Commons @ No Credit Needed
- 6 Clever Uses For A Wet/Dry Vacuum @ My Two Dollars
- Tightwad Tuesday: Read to Your Children @ Being Frugal
- iReview the iPhone…Because it saves me money! @ Budgets Are Sexy
Holidays
- Online Shopping Tips To Help You Shop Safely @ The Digerati Life
- Don’t Have Cash? Four Alternative Things You Can Donate @ Money Ning
- Win $100 with MrRebates.com through Christmas 2009! @ Mighty Bargain Hunter
- Snail Mail a Holiday Card For Free w/ Google @ My Money Blog
Other
- Obesity Costs More Than You Think @ Five Cent Nickel
- Kelley Blue Book’s Best Resale Value Cars @ Consumerism Commentary
- Comics and Cons: Adventures on eBay @ Get Rich Slowly
How to Set Awesome New Years Resolutions
New Years Resolutions Tips
Your New Year’s resolutions for 2010 may mean a little more than they have the previous years because you are setting the tone for the next decade of your life. On New Year’s Day 2009 will be over, and along with it a whole decade of your life; makes you stop and think doesn’t it?
Even if you typically avoid New Year’s resolutions, this would be a good year to take an hour to look back on where you’ve been the last ten years of your life and how you want your life to be in ten years from now.
I got an email from Ken McCarthy this week about the power of planning. He’s a guy who’s accomplished a lot in his life and has helped many others accomplish great things as well. He doesn’t complicate the planning process; here are his three questions and comments on each:
What did you accomplish in the last decade?
Probably a lot more than you realize. It’s worth taking the time to write it down.
How many more decades do you have to play with?
I guarantee it’s a small number no matter what your age. We just don’t get that many.
What are your plans for the coming decade?
Is it even possible to think that far in advance? Some people do it. If not with a rigid timetable, they have a sense of where they are and where they want to be. It’s a good practice because it’s a good guide for how to spend your time now.
Of course, making new years resolutions is really the easy part, working at them and achieving them is where all the work lies. However, setting your goals is just as important a step, without goals you won’t have anything to work towards.
The thing about New Years resolutions is that we typically wait until New Year’s Eve or the beginning of the following year to think about them. I see two problems with this approach,
- You Rush Your Goals
- You’re Behind Before You Start
Setting Goals in a Hurry
There’s nothing like a deadline to motivate you to get things done. There’s a lot to be said for actually getting off your butt and making something happen, setting your goals for example. However, if you save your planning for the last day of the year (or even worse, the last hour of the last day) then you may not give yourself the full hour you need to think through what you really want.
Don’t take it from me; look at how successful businesses operate. They don’t hurriedly make plans the last night of the year or the first week of January. Many of them start their year end budgeting and planning in October or November for the coming year.
Now this is obvious to me after studying project management in graduate school, but in order to accomplish your goals, you’ll also need a list of tasks to tackle so you can meet those goals. If you create your new year’s resolutions before December 31st, then you’ll have time to sketch out the things you need to do in order to get what you want.
If your new year’s resolutions are hastily scribbled on the back of a party napkin then chances are you won’t have a list of actionable steps to take. Of course you can always define them later, which brings me to the next problem with delaying setting your new years goals.
Behind Before Your Start
The longer it takes you to set your goals, the farther behind you’ll be when you start to try and achieve them. How frustrating is it to start a race already behind? Why put that hurdle in front of yourself when a little thought and planning now will get you rolling right out of the gate on January 1st?
People are always taking about starting with a clean slate, or getting a fresh start. The first day or week of a new year (or a new decade) sounds like a pretty good fresh start to me. A lot of times reaching new goals means breaking or changing old habits. You have societal momentum behind you if you start at the beginning of the new year.
People everywhere are trying to turn over a new leaf, to change their lives for the better. What better time to buddy up with someone who has a common goal and go after it as a team? Why not ride that wave of shared energy and excitement to help you make it over the hump?
So schedule a time in the next few weeks to answer Ken’s three questions above and come up with your goals. Then give it a day or two and start writing down specific things you’d need to do to reach your goals. Put time and effort into deciding what you really want out the next decade and you’ll have an awesome set of New Years Resolutions!
W-2 Tax Forms 2009
W-2 tax forms for your 2009 income taxes will be mailed out by your employers within the next month or two. In my last job we worked closely with many companies sending out tax forms and December and January were extremly busy months as they scrambled to make sure that they had all the correct information and met all the IRS tax form deadlines.
Inevitably someone would have the wrong address or a typo in their social security number and we’ve have to send corrected tax forms. So take a minute and make sure that your personal information on file with your employer is correct. An incorrect home address could leave you waiting for your W-2 to arrive, while an invalid social security number will require you to request a new one with the corrected number.
W-4 Tax Form
Now’s also a good time to review your W4 (withholding allowances) elections for 2010. Here’s a link to the IRS website for the 2010 W-4 form. It’s not always simple deciding how to fill out form W-4.
If you choose too many withholding allowances then you could underpay your federal income taxes and owe late fees and penalties. On the other hand, if you claim too few exemptions you may over pay your taxes and the IRS will have your money instead of it earning interest in your bank account. You can use the IRS Withholding Calculator to help you figure out the right number for your situation.
Remember, if your income is below the minimum and you marked EXEMPT on your last W4, that will expire at the end of December and you’ll have to submit a new W-4 for 2010.
Student Credit Card Reader Question
A reader, Iris, wrote in with a question about the best student credit card for her son:
“Hi- Your website is very helpful. My son is in med school-no income, big loan. I’m helping him shop for a credit card to build a credit rating(he uses debit card usually). What’s best for him-Capital one no hassle cash rewards. Chase Rewards, american express(concerned it won’t be taken everywhere-but debit will i think) –do they all let you look at your account on line and pay automatically by bank account? thanks much, iris”
Personally I really like our American Express Blue Cash card but you’re right AmEx cards aren’t accepted by all merchants since they charge them higher fees. We’ve accumulated a few backup cards, Bank of America, Chase, and Citi cards, but none of them are student cards. American Express does have a Blue for Students card that’s decent if you have good enough credit to qualify.
I wrote about the best credit cards for college students a little over a year ago but it’s been a while since I’ve researched them since then. Maybe the other readers can offer up their suggestions on the best student credit cards. In terms of your question about access, pretty much any card you get these days lets you see your account and bills online and pay electronically with funds from you bank account.
One last point on building credit, if your son has horrible or zero credit, he can use secured loans or secured credit cards to improve his credit score. Hope that helps!
Mortgages and the Housing Market On My Mind
Buying and selling houses, and living with the resulting mortgage payments, is something our family thought a lot about last month. The home buyer tax credit for existing home owners got us started investigating putting our house on the market. As we cleaned out the garage and tried to decide if real estate agents are worth the money we weighed the pros and cons of selling our home and buying a new one.
After a lot of thought and consideration we’ve decided to put our plans on hold for a few years while we save up more money for our house fund. Of course plans could change but for now that’s what we’re working towards. Here are a few more real estate related posts from last month
- House Hunting Tips for Busy Parents
- Reverse Mortgages for Seniors
- Reverse Mortgage Disadvantages
- Five Tips on Buying Foreclosures
- Real Estate Short Sales Explained
As the year draws to a close we offered some tips on open enrollment deadlines, year end tax tips for 2009, and some holiday shopping tips to avoid debt. We also took a look at two personal finance related services with a TradeKing new account review and a PocketSmith user review. Just last week I had fun making this Thanksgiving video, 24 Daily Thankful Moments.
As the gift giving season approaches, here are some ideas for the best gift cards, best websites for christmas shopping deals, and tips on how to double your savings on christmas deals.
That wraps up November, this month we’ll take a look at more year end financial moves to make, cover some more holiday savings deals, and start looking ahead to the impending tax season.
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I'm Ben Edwards and I've been addicted to personal finance since I was 12 years old.
That passion for money has paid off for my family - so in 2006 I founded Money Smart Life to help you afford the life that you want. Read My Story...
