Saving Money On Your Summer Vacation

There's nothing quite like a fun family vacation to relieve the stress of your workaday life, iron out the kinks in your short game, or just plain spend some time with a good book on a beach with the roar of the surf providing the perfect backdrop to that whodunit. Unfortunately, summer vacations also have a particular way about them of draining your savings and checking accounts, as well as putting a major bind on your credit card. There always just seems to be those extra expenses that have to be incurred, like that ceramic puppy for your aunt that you just couldn't pass up. Rather than putting off vacations because you don't feel as though you can afford one, though, a little budgeting or even reconsidering where you're taking your vacation can keep you from ensuring that your next vacation is your last. Food really is one of the biggest vacation expenses that you'll incur. Think about it. Unless you're having peanut butter and jelly five days out of six, then chances are good that you'll be eating out every day, at least two and more likely three, meals per day. For a family of four in a vacation town, one week can easily run up a food bill in excess of $1000, figuring $100 per night for dinner, relatively inexpensive eats for lunch, and complimentary hotel breakfast. Sure, you think you're saving money by having a waffle in your bathrobe, but really you could do better. For one, think about where you're eating. Chances are they're tourist traps, so you're going to be charged accordingly. Instead of the usual fare, which is going to be pretty much the same you'd get back home, consider trying some of the mom and pop places that the locals in the area frequent. They'll be less expensive, you'll get a more rounded culinary experience, and chances are the food will be better to boot. Next is your hotel expense. Sure, no one wants to stay in a hotel where the wallpaper is peeling, there's an unidentifiable funk from the noisy radiator, and there's some guy in a T-shirt and his boxers sitting outside your room who says he'll “keep and eye on your car” for you for five bucks. To begin with, check for internet specials and last-minute booking deals. Similarly to the way some airlines work, hotels often have cancellations that they can't fill. Rather than losing out entirely, they'll sell those rooms at a discounted rate, and Voila! You could save as much as half off your accommodations. Finally, there's all those attractions you're going to want to see. Usually, there isn't much you can do with these, since they plan for your attendance, and want to cleave as much money from you wallet as possible. One possible fix is to consider going in the off season. Most places list online the dates they're open and how much it costs to get in. The cheapest dates are the slow season for them. If you can avail yourself of an off-season visit, you could save a bundle on your vacation expenses. Everyone deserves a vacation now and then, particularly from having to worry too much about finances. Make sure to plan your visit ahead of time and you just might find yourself in a very good position to actually enjoy your vacation, rather than constantly worry about what that afternoon of putt-putt golf is going to do to your credit card statement.

Could an Afternoon Nap Get You a Raise?

Everyone knows that a good, solid eight hours of sleep is important to stay healthy, but did you know that how much sleep you get could have an effect on your financial well-being, as well? Numerous studies have pointed to the fact that getting adequate sleep every day leads to increased productivity, reduced stress, and even a more positive mental outlook. In fact, it could be said that getting enough sleep could even make you smarter.

So, why is it then, that our culture abhors the afternoon nap? Considered a treat best enjoyed during the weekends or after a big dinner, an afternoon nap of just a few minutes every day could mean the difference between getting that promotion at work and being passed over for someone with just a tad more energy than you can muster. The answer to this question has its roots deep in the industrial revolution, when a few managers and supervisors decided that a ½-hour lunch break was sufficient for employees to leave their station, eat lunch, and then return to their station. In reality, that's about how long it takes to buy and scarf down an afternoon meal. Those 15-minute breaks? Those are products of the movement to ban smoking from the workplace, when smokers began to have to take their cigarettes out of the plant. So, where does that leave today's modern employee?

Unfortunately, many companies still subscribe to the ½ hour lunch rule, believing the marketing hype of coffee and energy drink manufacturers that a quick pick-me-up is all that's needed to return employees to their morning efficiency. More progressive companies, however, have begun to move to a full hour lunch break along with two 15-minute breaks during the day. These companies have left the window open for employees to grab the perfect nap in the middle of the day, and by extension, naturally improve all aspects of their workday functioning.

Experts agree that an afternoon recharging nap doesn't have to be particularly long, and neither do you have to delve into the land of dreams to wake up refreshed. In fact, just a short five minutes of quiet time could make a huge difference in your energy level without the use of those sugary energy drinks that really don't taste all that great and hardly work at all, anyway. The best time to engage in a quick power nap is during your lunch break, so begin by finding a quiet place where you won't be disturbed, such as your car, and set the alarm on your cell phone to wake you just before you're due back to work. The trick is to wake up before you reach a deeper level of sleep. That way, you get the mental and physical benefit of being asleep, without waking up groggy and even more tired.

How long you nap is up to you. Most find the greatest benefit to their productivity if they nap for between 15 and 30 minutes every day, regardless of how well they sleep at night. With this improved productivity, it won't be long before your supervisors take notice, and the next time you're up for a review, don't fail to point out just how much your productivity and energy levels have improved, that you've got the best afternoon attitude in your department, and that you alone don't have to make five trips to the coffee machine to get one project done. It may be the one thing you can do, in fact, to really ensure that your boss realizes just how valuable you are to the company, and will reward you accordingly.

Are Savings Bonds Still A Viable Investment Option?

For years, the cornerstone of a good investment portfolio was federal savings bonds. They were considered so much of a good investment, in fact, that many families had a special shoe box in which their bonds were kept, if not a safety deposit box or a safe. Sadly, those days are long gone. Throughout the 1990s and into the 2000s, opting for such a safe investment was considered foolish largely because the stock market remained on an upswing, returning rates far in excess of anything that a savings bond could offer. Today, however, many investors regret that they held on in the stock market for as long as they did, rather than having the foresight to pull out when things were really good and avoid damage to their portfolios by looking at safer options. As with many things, the best that can be said is that hindsight is no better than 20/20. The best thing that we can do is avoid repeating such mistakes in the future. Today, with the economy still recovering from the major upset of the last decade, is surprisingly the best time to re-enter the stock market. Prices, while fluctuating, still are trending in a relatively upward direction, though economists and market analysts still say that it could be decades before the market reaches another record high like was seen at the height of the economic boom. So where does that leave savings bonds? Bonds, being a safe investment should always be a mainstay in your investment portfolio, though when the economy is in an upswing mode, they are less desirable to have as the backbone of your investments. In order to achieve good growth in your assets as well as stability of their value, consider the old adage of not putting all your eggs in one basket. A diversified portfolio is more likely over the long run to maintain its value through the ups and downs of the economy, and will help prevent you from running into the situation in which you find yourself just a few years from retirement and holding relatively worthless stock. Conversely, holding some stock avoids putting you into the position of reaching retirement considerably short of what you'll need to survive on. As of January 1, 2012, the United States Treasury no longer issues paper bonds the way you might remember them. In fact, the only way to get a paper bond is to purchase them with your income tax check. Instead, they are purchased through a United States Treasury electronic account. Basically, you deposit money into a treasury savings account similarly to the way you deposit money in a standard savings account, except in incremental amounts. It can be done through payroll deduction or simply by initiating a money transfer from your bank. The bonds are purchased in specific denominations over 25 dollars, and then when they have matured, you can choose to roll them over or withdraw the proceeds. The two types of bonds currently available include Series I bonds, which are inflation-indexed, meaning that they will maintain their value above the rate of inflation, and series EE bonds, which earn a fixed rate of return. There are numerous tax advantages to purchasing bonds, including exemption from local and state income taxes, but the advantage of being a safe and stable investment that still trumps the rate of inflation is by far the best advantage that bonds offer.

You Being Opting For Safer 401-K Investments?

Studies have indicated that almost no one today has got enough saved in their 401-k account to maintain their standard of living through retirement. Sad though it may be, the era of pensions and affordable health care are over, and no longer can retirees count on a comfortable twenty- to thirty-year retirement complete with Airstream trailer camping, grandchildren and Mai-Tais on the beach. However, there is a point at which it becomes necessary to begin looking more carefully at your 401-k and moving money from the riskier stock-based investments to safer harbors. It's particularly important to consider such reinvestment when it seems that the stock market is at a peak, so that you get the maximum return on your investments. There is a point, almost impossible to predict, at which it is the perfect time to transfer your stock-based investments to safer investments. It involves economic factors, the value of your accounts, and your comfort level with how risky your investments are. For instance, if you are 45 years old, and 75% of your 401-k is positioned in foreign stock to maximize growth, and you have seen significant gains in the portfolio's value over your investment, then you might consider stepping back on your risky investments. Of course, if those investments haven't paid off, and the stock is worth far less than what you paid for it, you'll have to make some tough decisions about where you're going to go from there. Do you sell those risky stocks and cut your losses? Or, do you hold out and wait for the eventual upswing? In today's economy, those decisions are tougher to make than ever, particularly so since there are so many stocks that are only just now beginning to resurface from their historical lows. This is where knowing as much as possible about your investments will pay off. Are the stocks held in good companies with good cash flow that just took collateral damage from the recent economic fallout? If this is the case, as has been the case with auto parts suppliers in light of Japan's Tsunami and the Detroit bailout, you can bet that the parts suppliers will eventually hit their stride again. Look at your portfolio carefully, beginning with its overall value right now. Do you already have enough to get by on once you retire? If you do, and the stock is valued near the top of its historical high price, then it's the perfect time to begin looking at safer investments. You don't have to necessarily put all your money into treasury bills or cash, but consider putting at least half your high-risk stock into low-risk stock such as blue chips or in dividend-producing stock. If you're on the low side of your investment's value, check with a major rating company such as Standard's and Poor to see what they have to say. If they suggest holding or buying, then you can be relatively sure that the stock will eventually regain its value, particularly if you're ten or more years out from retirement. If they suggest selling, though, then getting out while the getting's good should be your goal. Look at stocks that have a “strong buy” recommendation to attempt to regain some of their lost value. So, what is the perfect age to start making safe 401-k changes? Well, it depends. It's whatever age you are when you have enough to feel comfortable retiring on. Like any other stock market question, it is one that you alone can answer when you're ready.

Planning For Your Childrens' Retirement

More and more, it seems that retirement has become a dream for a lucky few. Even those who have enjoyed a full career with a promised pension have begun to find that their living expenses often far exceed what they receive every month for pay. More often than not, it's the high cost of health services that eat away at savings and other retirement income. If the situation is as bad as it is now, can you imagine what it will be like when your children reach retirement age? It could be argued that there are two financial things that a parent should help prepare their children for. The first is college, and the second is retirement. The reason for this is that those who are born now will likely be retiring in around the year 2070. By that time, a staggering $250,000 or more could be considered a modest annual income, based on a 4% inflation rate. Although difficult to fathom, there's just no telling what could happen over the next sixty years that might impact your childrens' ability to retire. One solution you might entertain is starting your youngster out on a retirement savings plan. Savings bonds are a phenomenal way to build savings, and the best vehicle for a youngster's retirement account. They're easy to purchase, have historically reasonable returns, and depending on how soon you start their account up, can build up to quite a lot of savings over the course of their childhood. Another benefit is that if something should happen to you, savings bonds are a way to prevent your child's retirement savings from being eaten up by inheritance taxes. The bonds are already in their name, and while the income taxation sixty years from now is at best murky, there is a possibility that they won't have to pay as much in taxes as long as they use the bonds after they've retired, particularly if social security doesn't hold out. Consider for a moment that you've just had a baby. If you put away just $25 per week in a savings bond account, which on average returns a historic 4.5% interest rate (though this is an average, the number varies depending on how the federal government issues the bonds) then by the time 30 years is up, the account will have amassed no less than $77,000. Taking the calculation a step further, by your child starting a 401-k with $77,000 and contributing $5,000 per year until they retire at 65, considering that they make approximately $50,000 per year, they will have between 3-4 million dollars available to retire on. In an era when we are concerned about our own ability to retire, keeping our children in mind might be a little tough. Even saving a little bit for them early in life, though, can mean the difference between your kids being able to retire when the time comes, and them having to work for the rest of their lives just to make ends meet. Thanks to advancements in health technology and new awareness of eating right and staying healthy, it is very conceivable that your children could find themselves with thirty to forty “golden years” in which to enjoy what they spent their lives working for. By starting them out now, when they don't even know what retirement means, you're giving them the best chance to make the most of those years, which could be the best gift you've ever given them.

Are Penny Stocks Really A Goldmine?

Anyone who tells you that the stock market isn't really gambling most likely has something to sell you, like a bridge, or twenty acres of prime national forest. Even if they do believe it, though, chances are that they've never dipped into the world of penny stocks. There is an element of extreme risk and reward that accompanies these stocks. On one hand, you can purchase thousands of shares of stock in these companies for just a few dollars. On the other hand, there's a reason that they're valued the way they are. The outlook isn't all doom and gloom, however. There have been some notable companies that started or became penny stocks over the years, and have returned sizable sums to long-term investors willing to hold on. Obviously, had an investor a working crystal ball, they'd never have to buy a lottery ticket again, and would quickly surpass even the greatest wall street tycoons in riches. Consider that a stock that trades for one cent per share increases to two cents, for instance. With 1,000,000 shares of such a stock, for which $10,000 was paid, the increase would double the investment to $20,000. A penny stock is any stock valued at less than one dollar. It may reach this level for any of a number of reasons. The company may have experienced a major decrease in valuation if, for instance, a product line failed or if a scandal is made public. There are less notorious reasons that a stock might dip below the one dollar level, as well. It may be a relatively small or obscure company that issues inexpensive shares to tempt more investors to buy. This is regularly seen in start up pharmaceutical companies that require cash investment for research, but may not as yet have struck upon any particularly useful medicines or treatments. All this doesn't necessarily mean that you'll be able to start trading on penny stocks anytime soon. Since the majority of penny stocks are of companies in trouble, they are typically traded on what are called “pink sheets,” which some internet-based brokerages shun from their systems entirely. You might be able to hold stocks that fall to this level, but you cannot purchase stocks being sold at this level. This is a safety measure that helps prevent investors from being taken advantage of. For the most part, stocks on the pink sheets are there for a very good reason, usually having to do with bankruptcy. There is also fraud that investors need to be wary of. The basics of the con work thus: a company or an individual purchases large numbers of shares of a stock. Next, they pay for advertising or e-mail campaigns that champion the value and “explosive” potential of this stock. Suddenly, investors see the price of the stock going up, and they begin jumping on the bandwagon. Meanwhile, the perpetrator of the scheme has sold off their shares, usually doubling or more their investment. There is no recourse for investors who dump large amounts of money into otherwise worthless stock hoping for a big payday. So, do you jump on the penny stock bandwagon? As with any investment, doing your due diligence will keep you out of trouble. Make sure the company is on the up-and-up, and don't buy into penny stocks that seem too good to be true. It's also wise to do as your parents taught you in these cases: Don't put all your eggs into one basket, regardless of how good the payoff appears to be.