How do I invest~~~~

Hello My Diva Dahlings,


I know, I know---where Have I been? Well I won’t bore you with details; except that I’ve been spending time with my family and a few dear close friends, traveling here and there with them and taking care of some medical and dental needs as well, as one gets older, things take a bit more maintenance. Not to worry I’m doing fine, just a little older, a little slower but no less a Diva.


I can also assure you that my little diva darling Princess is doing very well and has been traveling with me, Juanita and her family are also doing well, while I’m gone she is free to come and go as she pleases, and she has been making arrangements to have an eye kept on my home.


I have been asked by some of you darling Diva’s, how do I financially live? Well I’m not the “grasshopper” that fiddles away the bounty of spring, summer and fall, I do put away for the winter, and yet I’m not overly working like the ant, but working enough to maintain a life style that is comfortable for me.


Yes Darlings, the operative work is “comfortable”. Depending upon where you live, an income of $150,000 can seem like a fortune, but only if you live in Tennessee or other mid-states, if you live in California or New York especially in the Big City or San Francisco or Los Angeles you are barely middle-class.


I’m not saying I earn that much, as a matter of fact I’m not saying to you how much I earn, but I do live very comfortably. You see it is all a matter of perspective. I’m not a billionaire, no, with that comes headaches. But I’m not on food stamps either. Although I can understand the difficulties of those in which circumstances requires them for government assistance.

I was fortunate, my parents were very savvy people, Dad worked hard, worked his way though college, was smart enough to make very good contacts with people (now a days it’s called networking), lived within his means, saved, did his best to stay out of debt and (here’s where its important) conservatively invested.


Mother too came from a hard working family, went to business school, listened, lived within her means, saved her money, but as I said she listened very carefully and like Dad investigated before investing.



Dad was a lawyer, he handled mostly business contracts and mergers etc, he met Mother and she worked for him, but they had a partnership much like “Perry Mason and Della Street”, they worked as a team. They first became good friends and then discovered they loved each other and married, Mother continued to work for Dad after they married until the first of 3 children came along, but even then she would work in the office part time, making arrangements with Grandma to watch us and then she’d come home prepare dinner and then took over checking our homework and putting us to bed. When we were old enough to go to school, she’d send us off, go to the office and then at 2:30 leave to pick us up.



We children were loved, I’m not saying it was a perfect “Father Knows Best” situation but even we as children were included in any decision making, we were not sheltered, our parents were honest with us.



So how does that describe how I live financially? First it was by example from our parents, I say “Our” because I have two brothers, one older and one 18 months younger, My brothers shared a bedroom and I had my own, Our parents bought a house which was easy to expand if needed and it did go to eventually 4 bedrooms as Grandma (Mom’s mother) moved in with us after Grandpa died.



I and my brothers were immersed though Dad and Mom’s instructions on investing and financial business, Dad would talk frankly to us about business dealings that had developed, in some cases were developing, sometimes he’d put us to work to find things in the investment papers or at the Library going through the out of town newspapers.



Dad told us about the Rothschild’s and Hetty Green (the witch of Wall Street), Andrew Carnegie and other successful business people, although for a woman to be successful was rare and looked at with suspicion, especially in an environment in which women were looked upon as property and not having any business sense. Luckily my parents and Grandparents were not of that mind-set.



In my previous postings I talk about how to learn to be frugal with the “Make do, use it up…etc” routine, and also to not live beyond your income, please go back to those postings as a refresher course.



Dad also told us that even in the Bible (we were and are Catholic) it talks about money, one needs to read both the old and new testament. No I’m not talking about the Biblical Money Code that Sean Hyman speaks of---its there really for anyone to read and learn from, Hyman just uses the biblical teachings to get some real foundations across to us.

Something that was already taught to me and my brothers by our parents.



First off, one has to avoid the “Love of Money” and realize it is simply a means of exchange to buy goods and services, but don’t waste it or horde it, make use of it to make money, but do not squander it either, if you have 2 dollars, save $1, then divide the remaining dollar in half, 50 cents to pay for your daily needs, the other 50 cents to invest in or with.

I call it my thirds rule. With the dollar saved divide that in half, 50 cents into a regular savings account, the other 50 cents into a long term retirement account, by having a regular savings account you’ll build up money for those sudden expenses, like a roofing problem, or car repairs etc. this way you will avoid going into debt by using a credit card, unless it is something very extensive. This is where a Budget rule is important.


O.K. Darlings so from an early age, my Dad played a game with my brothers and I, using pretend money, such as worn out or incomplete card decks, Aces were $1, 5’s =5, 10= 10, Jacks were 20, Queens 50 and Kings 100 dollars. On used envelopes Dad would write down the stocks we’d choose listing the number of shares we’d buy at the amount that the stock was going for per share.


Now as part of our “Homework” we had to investigate the solid foundation of a business whose stock was listed, then we’d watch to see how it would do, if the price per share was low we’d buy, then we’d have to see what it was going to do, and make a decision on it. Also we’d have to watch to see how much in dividends did the stock pay out, those dividends were written on the remaining cards, at the end of a certain period of time, usually 6 months, Dad would note how we were doing. Come January 1st Dad would announce who did the best and would get an increase in their allowance based upon results, those who didn’t do so well, well if they did do fairly well, would get an increase but only slightly, if our stock choices failed, our allowance did not get an increase.


You certainly can see the incentive here.


Hetty Green’s motto was “Buy cheap and sell dear” meaning buy low but sell high, the Rothschild’s based their investments on information gathered, that is how the head of the Rothschild family worked, during the campaign between Wellington and Napoleon, many investors had heard, (incorrectly) that Wellington was losing, but Rothschild had one of his sons near the battlefield and set up a system of immediate information relays, using carrier pigeons and light systems to send signals to him what was exactly happening, so when people were selling in a panic he was buying, and eventually when the real news hit the London exchange, Rothschild was in a position to make a tremendous profit.


Hetty Green was the same, this was told to me by my Grandfather whose brother worked at a bank that Hetty held her “office” in, through various contacts among the working class and clerks Hetty could gauge the worth of a company and therefore its stock value, even if the stock appeared to be going down, Hetty would know of things in the works that would bring a profit to the company, so when the stock price was at its lowest Hetty would buy and then when the company turned a profit and its stock value went up, Hetty would hold and hold until she felt it had reached its possible peak and then sell it at a profit. Grand Dad said that the clerks at the bank were very protective of Hetty, why? She would make small loans to them at a very low interest, and even would extend their time to pay it back, something that is very rarely mentioned in any biographies about her.


Hetty was cheap, rotating between just two suits of clothing, living in the most inexpensive rooming houses, buying the cheapest cuts of meat, walking everywhere, even avoiding doctors to treat her son’s injured leg, which he never condemned her for.


To her Money was a weapon to be hoarded, not squandered, she in a way took it to the extreme, but even the Rothschild’s did not live extravagantly.


So let’s look at investing----

Rule one----never invest more than what you can afford to lose


Rule two---never invest all your money into one stock, diversify


Rule three---do your homework, make sure that the company whose stock you’re interested in has a solid foundation to be able to ride out a lot of economic storms.

On Rule three this includes, how well is the business run? Is their management team solid and looking at the future, without over expansion? Is their sales pipeline large and are sales increasing, are their customers happy? Does it have a big market capitalization with plenty of liquidity in stock volume? AND This is the Most Important…is the company worth the stock price you are going to pay.

Remember Darlings buy cheap but don’t buy a cheap company.


Everyone remembers that stocks slide up and down on a roller coaster, so even with doing your homework if there is a stock pull back right after it takes a position that does not mean it’s a bad investment. This is where you have to be like Rothschild so that when it appears that a stock loses value this is where you need to review in your mind why you bought it and hold on. Do not allow Greed or a quick turn over or even fear cause you to panic

And don't buy a stock because a friend, or relative says its a good thing or the latest thing, it could be a disaster if you do not do your homework.  Solendra was one of them.  Fortunately I did not buy into that.

The best way to see how a stock performs is to look back on its track record for the last two possibly three years. For example if a company shows what I have just explained to you as still being solid it is solid.


John Deer Tractors, everyone needs that from the homeowner to the Farmer.


So with Rule Three you are doing a fundamental analysis of an investment


Rule Four---determine when to buy --- this is done after you have completed Rule three. So you turn to a technical indicator called the relative strength index, this will tell you when a stock is being oversold or overbought, on a scale of 100 if its under 30 the stock is getting cheap because people are selling but when it starts going over 80 on the RSI scale then its getting pricey---why? Too many buyers are buying it


Warren Buffett has used these two principals to see how a stock is going to do, it is what caused him to stay away from those start up companies that had no foundation, even I stayed away from Facebook stock when it opened and then it started going down and down, but just to be a little cagey I bought some shares when it looked like it was going to go for a $1 a share, then slowly it began to show its true worth.


So when you see a stock going down on a company, a company that you know has a strong foundation based upon the questions I outlined for you don’t be afraid.


Although I have to admit I did “Take a Flyer” on Facebook.


Because this is where you grab your courage and work outside that box, and that may mean buying companies that people don’t like, when you see massive selling hitting a stock on a company that is solid, that is when to look for the bargain. Don’t allow Greed or the Love of Money or your fear of losing blind you to an opportunity.


This is where you look for large volume spikes and then shows steep declines. Apple is a good example, Steve Jobs dies, Apple stocks went down, panic selling, but now a time to buy at a lesser price, because if Apple is any good it will steady out even without Steve Jobs, because you are looking at the true value of the stock and the foundation of the company.


So Rule Five---Ride out the Roller Coaster, it may take weeks or months but you are in for “The Long Haul”


And that is what my Dad taught us, “Don’t buy for profit, buy for the long haul, for a generally steady income to serve you into your old age and beyond” SERVE YOU; in short have your money make money.


With my Facebook stock once I did my initial purchasing I use the dividends from that stock to buy more stock, the same with Apple. Eventually I will have those dividends be paid directly to me, like my other stocks.

And this is where we come to RULE SIX:

DO NOT LIVE BEYOND YOUR MEANS

Even though I have a very, very good income, I determine how much I will need to live on per month, for that I have 2 checking accounts with separate debt cards, the first checking account will pay insurances, mortgage, utilities, medical/dental. I pay those bills immediately, I do not procrastinate.

The second account is to pay for Food and sundries, including if I want to treat myself and some friends to lunch.

Then I set quite a bit of it aside, for that I have 4 savings accounts, one for emergency repairs, one for fun things like a vacation, one for any increase in living costs so that I’ll have a chance to re-do my budget and one to purchase things as needed such as birthday gifts or replace something in the house etc.

I know that having that many accounts can be a bit mind bending, but I keep cash books on each, and each book clearly labeled, being able to call in to the bank and listening to the auto response is very helpful as well as logging in each evening any purchases.

For that you HAVE to be DISIPLINED.

I know people who have to have a new car every 4 to 5 years, once its paid off they buy a new one and are back into debt, I had my Caddy for nearly 20 years and was only beginning to consider buying a new car if it appeared that it would not pass smog or I had to have it worked on long and hard to pass smog, but that was taken out of my hands when some teenagers stole it for a joy ride and wrapped it around a pole.

My current car I will keep until it is not repairable anymore. Don’t over charge on credit cards, use coupons, watch for deals, on a number of things you can buy at either Target or Wal-Mart, on other things buy quality because you want it to last a long, long time.

Don’t buy a MacMasion when something smaller will do.


I have only 3 credit cards, one of them is a gasoline card, the other two are bank credit cards, one is for any auto repairs or if I’m traveling, the other when I want to purchase clothing or items for myself. On all three I watch my balance very carefully, and pay them down immediately, usually within 3 to 4 months. This is where the savings accounts come in handy.


Really one doesn’t need more than 3 cards plus your debt card(s). One handy device is being able to pay over the phone, I have a small date book that lists when a bill will be due and with the phone numbers of those cards and if I’m traveling I can call the credit companies and pay over the phone without a fee.


Some people prefer auto pay; I do that for the Utilities and the home mortgage.

To be able to balance all of this I look into what I Need to buy or pay, this includes property taxes, medical/dental insurance, auto and home insurance, utilities, home mortgage, Food, medicine. These are NEEDS.


Everything else is WANTS, well I need a good pair of walking shoes, I have them and I have them re-heeled and re-soled and will do it until they are worn out, one does not need 20 coats, a good winter coat, a good raincoat, a light suit jacket, and a lovely shawl, plus a few sweaters, until they wear out.


I don’t drive my car everywhere, I’ll use public transportation, and it works just as well, so it saves on wear and tear on the car, if you have to do a lot of errands then plan on the best use of your gas.


My clothing is classic, so is my jewelry, I go to the Library for recreational reading and magazines, even DVD’s and music, there are some things I do buy but that is because I consider them hobbies. Remember the simple things are always best.


But again always save, determine needs vs. wants, and look for the best deals from food to travel, avoid the credit card use this is where cash money is important by using your credit card you are falling into temptation on buying a “want” and therefore living beyond your means, and don’t be extravagant when there is no need. Network with people who can help you achieve your goals and be genuine.


And remember there is Good Credit and there is Bad Credit, Good Credit or debt is paying on a house, Bad Credit (really debit) is having 20 charge cards at rates 15% to 29%, they do not give you any return, whereas paying on a house is a tax write off.

Now my Diva Darlings review what I have posted before, be sure to have a Good CPA who Really knows the Tax Code, keep receipts, keep records, and keep a good accounting of everything. It pays in the end my Darlings


And remember----YOU ARE THE CEO OF YOUR OWN COMPANY—it is called your Life.

And here is where we come to Rule Seven:

Remember those who are less fortunate.  

This means donating to charities to help the needy, like Salvation Army, your Local Food Bank, charity walk for Cancer,  your local Animal Shelter or Nature preserve (yes we need to remember those who cannot speak for themselves),  I donate to "Cover your Cop"  this is to buy bullet proof vests for Police Dogs as well as other charities.  You can even do it in memory of a loved one or a friend.

So just as the money flows in, be sure to have some of it flow out for a good  and worthy cause.
Until Anon, Kisses Darlings

Happy 2013 My Diva Darlings!!!!

Hello my Diva Darlings!!

I know. Where Have I been!!!

Well I've been right here in my home and with my family and friends and so very busy. My family and friends are doing well given our ages, Juanita and her family are also doing well, Juanita's grandbaby is growing and walking and talking, yes I've been spoiling her.

Princess my little 4 legged diva darling is also doing well but she was not happy when Mommy took her to the vet for a teeth cleaning, no not happy at all.

I know it's been months since I last posted frankly my Darlings in terms of business and investments I've given you the guide lines, so check back on my previous posts, and continue to subscribe to those finacial magazines I've suggested and read Barron's if you library carries it for more ideas.

Recently I heard that several research companies are looking into a 100 year old process to get usable fuel espeically for desiel fuel. They are looking into a fermention process from used sugars such as sugar beets, cane and other products, the process is feasible, so feasilbe that the oil companies may use it and put the oil producing countries ( and we know who they are) into a head lock. And its all renewable resources.

Now how good it is for planes I'm not sure, but for trucks, trains etc most definitely. So I am going to be watching for that.

Now about the tax thing, I and my tax preparer are waiting to see what "shakes down", what I have been doing it tying up my income into a trust with an income for investments, but I also donate a good deal to charities that I believe in.

In this case my Diva Darlings, talk with your CPA and your fiancial tax consultant and see what you can live on and what you can write off. Some people have been buying rental properties and plowing most of the income into upgrades and repairs, taking a write off that way, until it comes time to sell it then it's the capital gains, unless they plow it into another property. I know Darlings so confusing but talk it over with an expert, it's like going to school but dealing with Math.

O.K. My Dears this month is the time to gather all your tax papers and get them ready, I recommend making a tax appointment sometime in Feberuary, do not wait any later, you will have all your tax income reports by Jan 31, so its perfectly alright to make an appointment in February. The beauty about this is that you can have the "cushion of time" to make any changes before your taxes are submitted.

Now I do have to warn you my Darlings, it seems that there are some tax preparers that were working for H and R. Block and one other tax preparing franchise that have been doing idenity theft, this of course is giving an excellent company a very difficult reputation. So until those franchiese can correct this loop hole I recommend going to a licenced, bonded CPA tax preparer since their records are not open to anyone.

I have an excellent person doing mine but I recommend that you periodically check your credit and credit cards and bank usage to prevent any problems, using your check card aka debt card can be a problem and leaves you open for theft as well, so if you are doing business with a company that you are not familar with use a credit card, you have a better fighting chance of recovery than if you use a debt card.

This is also the time to shred old bills, I keep my utlitiy bills and credit card statements for 10 years so anything that was 2002 should be shredded, even receipts unless you need it for insurance purposes, such as a large ticket item. Auto repair receipts and maintance forms should be kept for the life time of the car or until you sell it or turn it in.

Check my previous postings on what to keep and what to get rid of for indepth reference.

This is also a good time to buy cards for the year, birthday, condolence, baby wishes, anniversery etc. and keep those in a speical card file.

Update your address book (hard copy), and have maintance done on your computer do a good "clean sweep" of it.

Yes my Diva Darlings January is not the time for fun and games this is a time for sorting and cleaning and clearing up and updating.

Unless you happen to have a 3 day weekend for Martin Luther King Jr.---then that I would have as a SPA weekend---yes, pamper yourself from the chill and the cold, unless you are planning to use that weekend for a major clean up.

And now my Diva Darlings, this Diva is going to go and have lunch with a dear friend of hers and do some stationary and stamp buying, yes I still send things by snail mail.

Until Anon. Kisses Darlings

Important Papers Review 2012

Once again Dahlings it is time to review what to keep and what to throw away and I am going to be posting from several wonderful sources.

Oprah’s financial guru David Bach has a wonderful list in Chapter 2 of his book “Start Over, Finish Rich” I do recommend that you get and read his entire book which goes into things in depth.

Now he states that “except in cases involving fraud, the statute of
limitations on income-tax returns is only three years, so the Internal
Revenue Service does not expect you to hang on to tax records and receipts
for any longer than that. The main exceptions to this are if you've
underreported your income (in which case you should keep your records for
six years) or have claimed a loss from worthless securities (seven years).

(Personally Darlings I recommend 10 years---I never could trust the I.R.S.)

You should keep records documenting the cost basis of your home
and all your other taxable investments for as long as you own them. The
same goes for the basic documents concerning your retirement accounts and
insurance policies, not to mention all loans and mortgages.”

(This goes without saying and again as long as you own them and for at least 10 years after But consult with a very good Tax attorney about this)

This is Bach’s list of
items you should consider throwing away (or shredding if the documents
contain personal information):


Outdated warranties
Outdated instruction manuals
Outdated wills or trusts (provided you created a new one)
Canceled insurance policies
Credit card statements for closed tax years
Canceled checks for closed tax years
Old brokerage statements for closed tax years (unless they have
cost-basis information you might eventually need)
Old annual reports from stocks and/or mutual funds
Old investment newsletters (some people keep these things for years
because they paid for them—let them go)

Now one person posted this suggestion and it is I consider a very worthy thought

“If you are sorting papers for an elderly person who might need to apply for Medicaid you should know that the Medicaid office will want to see the paper trail,
all documentation for any transaction over $1000. Since there is a five
year look-back period, save all bank statements, brokerage statements,
large receipts for five years, otherwise you'll be spending a lot to get
the bank or broker to reproduce them for you.”

Again I still recommend 7 to 10 years back trail

Now Mr. Bach does have a file organization system that does work wonders but we haven’t covered other papers that you should keep---so let’s take a look at those----

Now I have copied this next bit of information for your personal information it is no longer in print but you can find a copy of it on the internet---and it is vital for your organization.

Keeping Family/Household Records Return to Publications.USA.gov
KEEPING FAMILY/HOUSEHOLD RECORDS
This brochure is no longer available in print. It is based on a chapter
from the U. S. Department of Agriculture's 1973 Yearbook of Agriculture
and has been adapted for use online by the Federal Citizen Information
Center of the General Services Administration as a public service. The
chapter on which this brochure is based was originally prepared by
Constance Burgess, a retired Cooperative Extension consumer education
specialist from the University of California. The information is in the
public domain and you are welcome to reference or copy it for educational
purposes.
What to Discard

When was the last time you couldn't find an important paper you knew you
had carefully put away someplace? How much time do you spend trying to
straighten out your household business affairs, especially at income tax
time?

How, in fact, do people decide what records are important to keep and what
they can discard? How do they decide where to store and keep such records
and papers?

Even though each family or household must work out its own system, some
general guidelines can be helpful. As a starter, ask yourself a few
questions:

How easy or difficult would it be for other members of your household to
figure out your record system? Or…do you even have a system?

Who besides you knows where to turn for necessary information about the
family household assets and obligations?
Do you have a listing of people
who are important contacts, such as tax counselors, attorneys, bankers,
brokers, insurance representatives, employers, creditors, and debtors?

Are you sure titles to property and possessions are held in the best way
for all concerned?
If not, you may want to ask an estate attorney or a
trust officer at your bank for professional assistance.

A good record system will provide a bird's-eye view of what happens to
property after you die or when a member of your household dies.
Other
changes can alter plans too---for example, divorce or separation,
children reaching legal age, a long illness, a lawsuit, a natural
disaster, loss of a job, and retirement.

What happens if the place where you live is burglarized or there's a
fire and records are destroyed?
What do you do when you lose track of
important paper.
Which can be replaced, and how do you go about that?

Which ones cannot be replaced, and what do you do about those?


Papers to Keep in Safe Deposit Boxes
Every family household has some important records. Each of us should have
a birth certificate or an acceptable substitute. Since there are many
occasions when the information on your birth certificate will be needed,
it is important that you keep it in a safe place, preferably in a safe
deposit box.

If you have lost or misplaced birth certificates, consider applying for
replacements now, before there is a pressing need. Otherwise, you may have
to wait for one you need quickly.

State registration of births has been mandatory since 1920, and you can
contact your State agency to get a copy. The Bureau of the Census also
will search its files for proof of age.

By the same token, there will be death certificate for every person
someday. These will be needed occasionally and also are best kept in a
safe deposit box.

If you need to obtain these kinds of records, the publication,
Where to
Write for Vital Records is available for viewing or purchase from the
Federal Citizen Information Center, Pueblo, Colorado 81009.

Other important documents to be kept in your safe deposit box include
marriage certificates, divorce or other legal papers regarding dissolution
of marriage, adoption papers, citizenship records, service papers, and any
other document that is either government or court recorded.

The original
copy of a will, in most cases, is kept in the safe of the attorney who
prepared it.
This is highly desirable, since it may save complications
later.
The client receives two carbon copies, one of which may be put into
his or her own safe deposit box.
However, there could be a legal delay in
getting this copy at his or her death.
The third copy, therefore, should
be kept at home where it is readily accessible.

Some of your important papers, such as investments, are of a business or
financial nature.
Certificates for securities are nonnegotiable (can't be
sold or legally transferred) until they are signed by the owner.

Nevertheless, such certificates can be lost or stolen, and the signature
can be forged.
In either case replacement involves both cost and delay.

Such certificates then, when not left with the broker, should be kept in
the owner's safe deposit box.

Government bonds can be replaced without cost, but there will be a delay
of several months. So it is best to keep these in the box also.

Among other investment-type documents that require safekeeping are papers
that serve as proof of ownership, such as deeds for real estate, other
mortgage papers, contracts, automobile titles (if this applies in your
State), leases, notes, and such special papers as patents and copyrights.

Renting Safe Deposit Boxes
If you don't have a safe deposit box, then consider getting one. The
yearly rental, at your bank or savings and loan company, is inexpensive.
Often the smallest size is adequate, though larger sizes are available at
slightly higher charges.
If you do have a safe deposit box, ask yourself if it is large enough to
hold everything that should be in it-and small enough to keep out things
that don't need to be there. If you store documents from investment
properties or securities, the rental can be claimed as a deduction for
income tax purposes. The box should not be used as a catchall for
souvenirs and unimportant papers.



What Goes In And What Stays Out
A guideline as to what goes in and what stays out of your safe deposit box
might be: Put it in if you can't replace it or if it would be costly or
troublesome to replace.

Many items can be replaced rather easily. Copies of insurance policies can
be obtained from your insurance companies. Copies of cancelled checks are
usually available at your bank. Generally speaking, you do not need to
keep the following in a safe deposit box: income tax returns, education
records, employment records, bankbooks, social security cards, guarantees,
and burial instructions.



Keeping Tax Records
How long should you keep tax records? The Internal Revenue Service has 3
years in which to audit Federal income tax returns.
However, this limit
does not apply in unusual cases. If you failed to report more than 25
percent of your gross income, the Government has 6 years to collect the
tax or to start legal proceedings. Also, there are no time limitations if
you filed a fraudulent return or if you failed to file a return.

But you don't have to keep everything for tax purposes. You can lighten
your record load by discarding certain checks and bills once they have
served their purpose. For example, you can throw away weekly or monthly
salary statements---assuming you are paid in that way---after you check
them against your annual W-2 Form.
But save cancelled checks that relate
directly to an entry on your tax return, and keep all medical bills for 3
years to back up your cancelled checks.

The IRS generally keeps records for 6 years. You can obtain a copy of your
tax return by writing to the IRS center to which your return was sent.
Make sure you include your social security number and a notarized
signature.



Making Household Inventory Records
Among your important papers keep a household inventory. If there is a fire
or burglary in your home, this record will help you remember what has to
be replaced and how much each item is worth. An inventory also may show
that you need to increase your insurance because your possessions are
worth more than you thought.

The best way to go about compiling a household inventory is to start with
a sheet of paper for each room in the house, apartment, etc. Forms on
which to record items are available from several places, sometimes from
your county Extension office.

When you make your inventory, start at one point in the room and go all
the way around, listing everything. For each item, list what it is, how
much it cost, when it was purchased, and what it would cost to replace it.

Include the model number, brand name, dealer's name, and a general
description. If you take pictures of the rooms and your household
possessions, it will make identification or replacement, easier. Arrange
expensive collections, silver, and jewelry separately and take close-up
pictures.

When you have finished all the rooms, including the basement, garage, and
attic, add up the total replacement cost. That figure will represent what
your household is worth and is what your insurance should cover.

Update your inventory every 6 months or so by adding new purchases and
adjusting replacement costs.

Organizing A Home Filing System
A system for personal records is a necessity. No matter how modest your
home facilities might be, you need a special place to keep your papers.

That could be as elaborate as a room or home office or as simple as a
corner of the kitchen, bedroom, or hall.

Records, regardless of the filing system used, should be reviewed at least
once a year to discard items no longer needed. January is a good time for
an overhaul, since it's just before you begin to work on taxes.

The equipment you will need doesn't have to be elaborate. Think about a
filing cabinet before you think about a desk. The two-drawer type can be
covered with paint or wallpaper. A wooden slab or hollow-core door
stretched across the top of two cabinets can make a practical home office
desk.

If you don't have space for a small cabinet, buy accordion folders, a
storage chest that fits under the bed, or get sturdy cardboard boxes of an
appropriate size.

A home computer or portable typewriter and a pocket calculator can be
handy, but they are not essential. The essential thing is to know where
everything is.

Two Home Files
You should keep two home files, in addition to your safe deposit box at
the bank. These two files are your active file and your dead storage file.

Your active file will hold:
1) unpaid bills until paid,
2) paid bill receipts,
3) current bank statements,
4) current cancelled checks,
5) income tax working papers. After 3 years, move these items to your dead
storage file. --- Be sure to hold to for 10 years.

There are other items which should always be kept in your active file.
These include:
1) employment records, such as resumes, recommendation
letters, health benefit information;
2) credit card information, including
the number of each card, by company name;
3) insurance policies;
4) copies of wills;
5) family health records;
6) appliance manuals and warranties;
7) education information, such as transcripts, diplomas, etc.;
8) Social Security information on benefits and regulations;
9) an inventory of what's in your safe deposit box (you might store a key in the inventory
folder).

Finally, keep a record book of the whereabouts of your important papers.
If you use a loose-leaf binder, you will be able to change papers easily
or copy a page or two.

The book should contain a list of all your savings and checking accounts.

This way you won't become one of the missing depositors who have forgotten
their accounts or who have died without telling relatives about them.

Also, include the name and branch of the bank where you keep your safe
deposit box.

The book also should have all of the family members' social security
numbers, and all of the insurance policy information.
It's a good idea to
keep a copy of your household inventory here as well.
Don't forget to
record all your household improvements.

Finally, make sure someone else knows and understands the family
record-keeping system.

Some things not covered in this list is a durable power of attorney and a medical power of attorney and a medical directive, this should be in your safe deposit box, a copy in your active file, a copy with a trusted blood relative as well as your spouse/significant other.
And directions for your funeral arrangements.


Preparing A Net Worth Statement
Have you tried filling out a net worth statement as a means of keeping
tabs on yourself and your family possessions? Such a record provides a
good overall picture and can be prepared in an hour or less. If you do it
annually, you can see quickly whether you are getting ahead financially or
falling behind and, in either case, how fast.

An accurate net worth statement can serve as a point of departure for the
year ahead. If you're not making as much progress financially as you had
expected to, you can decide whether to stay on course or to change
directions for the coming year.
Where are you going to find a net worth
form that will meet your needs? Try your county Cooperative Extension
Service office. Or ask at your bank. Better yet, perhaps you can make one
to fit your family.
All you do is list your assets, list your obligations,
and subtract the debts from the assets. Hopefully the plus side of the
ledger will get larger each year and the minus side smaller. But there may
be good reasons why you'll fall behind sometimes, such as when you buy a
new home or when other expenses are heavier than usual.



THINGS TO REMEMBER
Use the checklist chart below to remind yourself what to keep and what you
can discard.
Safe Deposit Box
Birth Certificates
Citizenship Papers
Marriage Certificates
Adoption Papers
Divorce Decrees
Wills
Death Certificates
Deeds
Titles to Automobiles
Household Inventory
Veteran's Papers
Bonds and Stock Certificates
Important Contracts
Active File
Tax Receipts
Unpaid Bills
Paid Bill Receipts
Current Bank Statements
Current Cancelled Checks
Income Tax Working Papers
Employment Records
Health Benefit Information
Credit Card Information
Insurance Policies
Copies of Wills
Family Health Records
Appliance Manuals and Warranties
Receipts of Items Under Warranty
Education Information
Inventory of Safe Deposit Box (and key)
Loan Statements
Loan Payment Books
Receipts of Expensive Items Not Yet Paid For
Dead Storage
All Active File Papers Over 3 Years Old
Items To Discard
Salary Statements (after checking on W-2 Form)
Cancelled Checks for Cash or Nondeductible Expenses
Expired Warranties
Coupons After Expiration Date
Other Records No Longer Needed see further above.

Julia Morgenstern in Oprah’s magazine for Sept 2004 gave this general guide of what to keep and for how long---

"How long should I keep certain papers?" It is
imperative that you check with your accountant and/or lawyer before throwing out
any financial or legal papers, because they know most about your individual
situation.

Here's a general guide of what to keep and for how long.


What to Keep and For How Long

Automobile records (titles, registration, repairs)—As long as you own the
vehicle(s)

Appointment books—1 to 10 years, depending on your comfort level

ATM slips—Maximum six years if needed for tax purposes

Bank statements—Maximum six years if needed for tax purposes

Credit card statements—Maximum six years if tax-related purchases on statements;
otherwise, until annual interest statement is issued by company

Calendars (past)—According to your comfort level and whether you use them for
reference or memorabilia

Catalogs and magazines—Until the next issue

Dividend payment records—Until an annual statement is supplied by company, then
just only annual statements

Household inventory and appraisal—As long as current, review at least once a year.

Insurance policies (auto, homeowners, liability)—As long as the statute of
limitations runs in the event of late claims

Insurance policies (disability, medical, life, personal property, umbrella)—As
long as you own it

Investments (purchase records)—As long as you own them

Investments (sales records)—Maximum six years for tax purposes could strech
to 10 years

Mortgage or loan discharge—As long as you own, or six years after discharge or 10

Receipts
Appliances—As long as you own the item

Art, antiques, collectibles—As long as you own the item

Clothing—For the length of the returns period, unless tracking your household
budget

Credit card slips—Until your statement comes and you can match purchases

Furniture—As long as you own the item in case repair is needed

Home improvements—As long as you own your home, or six years after sale

Household repairs—For life of warranty, or longer to reference reliability
record of service people and their rates

Major purchases—For the life of the item

Medical and tax-related—Maximum of six years to 10

Rent—Your canceled check is sufficient unless you make the mistake of paying
cash then it's best to switch to using a U.S. Postal Money Order and label it "Rent"
and get a receipt no matter what, demand it.

Utility bills—Your current bill and one previous year's to check billing
patterns

Warranties and instructions—For the life of warranty or the item. Stick label
with warranty expiration date and service repair number on bottom of appliance.
If something breaks down, you've got an easy way to check if the item's still
covered without even having to go to your file drawer.

Property bill of purchase—As long as you own the property

Résumé—As long as it's current

Safe Deposit Box key and inventory—As long as it's current

Tax records (bank statements and canceled checks, certificates of deposit,
contracts, charitable contributions, credit statements, income tax returns,
lease and loan agreements, loan payment books, pension plan records, pay
stubs)—The current year, plus six prior years to 10

Vital Records (Adoption papers, birth & death certificates, citizenship papers,
copyrights/patents, marriage certificate, divorce decree, letter of "Last
Instructions" to executor or heirs, medical illness and vaccination records,
passports, Power of Attorney, Social Security records, Wills)—Permanently

Now that you know how long to hang on to important papers, set up a file folder
system that works for you!

And every year you should do this---prepare a----

NET WORTH STATEMENT as of ________________
(update annually)



Assets
Cash on Hand$______________
Bank accounts (checking and savings)$______________
Credit Union account$______________
Savings & loan accounts$______________
Any other savings accounts$______________
House, market value$______________
Other real estate, value$______________
Household furnishings, value$______________
Automobile(s), blue book value$______________
Life insurance, cash value$______________
Stocks and bonds, today's value$______________
Profit-sharing or retirement plans$______________
U.S. Savings Bonds$______________
Money owed you$______________
Other assets or investments$______________
Personal property$______________
Total Assets$______________



Obligations
Mortgages, balance due$______________
Other loans (bank, credit union)$______________
Installment debts, balance due$______________
Credit cards, balance due$______________
Charge accounts, owed$______________
Other debts, total owed$______________
Insurance premiums due$______________
Taxes owed$______________
Other current bills$______________
Total Debts$______________


Net Worth (assets minus debts)$______________

Now a friend of mine has her active and inactive files in two 2 drawer cabinets, but she also invested in a 4 drawer cabinet because of her children’s information again label the cabinet drawers to cover each child.

Remember Darlings, you are the C.E.O. of your life and should you get married, of your family’s life.

Until Anon, Kisses Darlings

Time to start the new year~~~

Well Dahlings, once again it’s Tax Time---how awful and how boring, but it must be done.

The first thing I do recommend to all you wonderful Diva’s is always get a very good tax preparer, it really is worth it to have someone do the taxes for you, and it saves you the head ache and worry about putting things off, then racing at the last minute to do it.

Now if you are starting out in life to make the Diva bucks, if you are buying stocks, bonds, mutual funds etc. and are receiving some dividends from them either profit or loss, then you may want to consider someone with more experience than H. & R. Block.

But, if right now you are working to earn the money to invest, then H & R Block is just fine to start with. If you are renting, even sharing an apartment you still must make sure that you know exactly where your deductions are. Even if you think all you can fill out is a 1040 EZ form, it doesn’t hurt to discover what deductions you can take. You maybe surprised.

Each year the tax laws change either a little or a lot, so it pays to keep up with any possible changes and ask your tax preparer about them if they would apply to you.

Barron’s January 9, 2012 issue is well worth a very serious read about Mutual funds and how to keep your cash safe and still earn a return.

It also mentions one of my favorite investment funds, Sequoia Fund (ticker: SEQUX) it has been thriving in this depressed market, and when they shifted into pharmaceuticals I realized they were operating the way I liked. I mean Darlings everyone needs medicine.

For an interesting read about the future of office work read the January 16, 2012 issue of Fortune, is shows the way how in the future technology, energy, banking, offices, education etc. will operate, and read it very, very carefully darlings for what you should consider as future investments, I think I would not be amiss in suggesting Bio-fuels.

The AARP magazine (yes Darlings I am of an age) for Dec. 2011/Jan. 2012 includes an excellent article about how to boost your retirement nest egg, one that I think all Diva’s should take to heart.

I’ve been enjoying reading the Jan/Feb. 2012 issue of Money magazine, the investor’s guide issue. One thing they do talk about is how to set up your portfolio for retirement, the article is titled “The easy way to stay on track.”

Darlings it is always wise to see if your investment portfolio is doing what you want it to do, especially in these roller coaster times.

But this issue includes not only retirement but good and bad ideas for home remodeling, health and other issues in one’s life. Definitely something to read cover to cover and keep on file for reference.

Now another thing I’m going to mention is this, insurance, I’m not talking about car, house, rental or medical insurance although all of those are very, very important. I’m going to briefly mention life insurance, yes Darlings, Life Insurance. Look for an insurance plan that will cover you both alive and dead and do not look into a Term Life Insurance even though they sound good and inexpensive, part of that problem is that if you need to cash it out early, you can’t…it is money lost, and it’s only for a limited amount of time, in most cases only up to the age of 80. But with the milestones they are making in health care, and you take very, very good care of yourself you could easily live till your 100 or beyond and still be having a Diva Life, but a term life insurance will not go past the age of 80.

Look for an insurance that will be for your full life time and that will pay you back should you need to cash it out, it may cost more, but it’s like money in the bank.

And if you get it while you are young and healthy it is so much cheaper.

Until Annon, Kisses Darlings.

A home office

Hello All you Diva Darlings!

Are you ready to start the New Year including Chinese New Year?? I hope so. It’s going to be a very interesting one with all the political fencing that we are simply going to be bored to death with.

Frankly among the early republican hopefuls there is not a single good person among them at all. Where is Ronald Regan when you need him??!!

Alright Darlings, not everyone was enamored by Ronnie, I’ll concede that, but still……

Now Darlings, I have been a busy little bee writing up various posts and I have been during our cold, rainy days---although we do need the rain---writing a lot of posts. But I have broken them down as to what they should cover.

Some of my Diva’s in training have asked me how to set up a “home office”, even if it’s only for their personal use.

(Thank you Jennifer, Dianna, Nancy, Lynda, Becky) I didn’t post their comments because the questions were pretty much the same.

Well first Darlings, you need to set aside a space that you have to say is your “Office”, whether it’s a corner in the kitchen or you have a room to outfit. Second, this desk or office area is off-limits to other family members, no touching at all.

I know of one lady who simply raged that her husband and children would not keep their hands off of her desk, computer etc. while she went to take care of other things, only to come back and find everything including important bills and papers, completely dis-organized, so much so that she had to spend a considerable amount of time putting it back in order.

She was so angry about it that she threatened divorce and told her husband he could keep the kiddies and then he’d learn what it was like to deal with them.

Fortunately her hubby was not dense, after all he had his “man-cave” and the children (3 boys) could invade there especially during the games. But the children simply thought that anything that was Mom’s was theirs---not so when it comes to bill paying or anything, even Mom’s purse is off limits.

Her hubby realized she needed what in Victorian times would have been called “The Morning Room”, they had a good size garden and part of it was under underutilized (aka weedy), so instead of giving her diamonds, he had built for her “A Room of Her Own”, complete with electricity, phone, and computer connections, now the room was bare, no carpets, not painted, not furnished, but she envisioned what it should look like and where the connections and outlets should be and it was so.

Then he let her choose what she wanted in it, oh and did I forget, but he also made sure that it was properly done so she could run a space heater without blowing out anything.

And she has the key---kiddies not allowed, unless the house is burning down.

But lets say that you have in your home a spare room, maybe a room that is too small to be a bed room or a man-cave, or you have an over large kitchen with a convenient corner.

Asses the space to figure out what will fit, and that will require taking photos and measurements, and doing a grid.

Then you need to find a good desk that will fit the space that you have in mind, now some people will have an “L” shaped desk, one side to hold the computer and the other for a flat space to write out or sort things.

Then you need to have at least a 2 drawer file cabinet, it helps if it’s a locking file cabinet.

The cheapest way to create a desk is to get two 2 drawer file cabinets and put on top of them a standard hollow core door, with one cabinet for active files and the other for dead files.

I also suggest a fire proof safe to hold things like insurance papers, mortgage papers, social security cards, birth certificates and that is just for starters.

You need to assess the types of office supply materials you’ll need.

And for that you need these essentials:
Comfortable desk chair
Desk lamp (those with the movable head)
Holder to hold incoming mail,
Shredder,
Scissors
Waste basket
Calculator,
magnifying glass,
stapler/staples,
scotch tape and dispenser,
pens/pencils,
envelopes legal size,
letter size paper,
letter opener,
12 inch/18 inch ruler, 1 yard stick (36 inches),
cheap note pad to do calculations,
Stamps,
Rubber bands
File to hold seasonal or special occasion cards (birthdays, anniversaries etc.)
Files to hold paid bills, these will go into the file cabinet.

Cash book---now this is important---I use a cash book and write down monthly what bills need to come in and when, I check off if they have arrived, then check off if they have been paid

Large calendar, and have it so you can see three months ahead, write on it when and what bills should be paid and when it should be mailed, I also use the calendar to note when I will be getting deposits into my various accounts, then I call to check to see what has been deposited and note my balance. This calendar should include medical/dental appointments, birthdays, anniversaries, any upcoming events like when school lets out for the Summer, etc.

Special holder to hold outgoing bills/letters/cards that you are mailing,

You will need a magazine file holder to hold the current catalogues that you get, mark on them when received and rotate them out when the next one comes in,

File to hold menus for take out in case you don’t feel like cooking; rotate those once a year to update prices.

Rack to hold Labled spare keys (this to be mounted on the wall)

Printer for computer
Scanner for Computer
A table to hold both printer and scanner.

Now you may not need all of this but in time you will discover what is very handy.

I also have a check file to hold my duplicate carbons for my checks as well as the check registers and I keep clipped together all my receipts, especially when I use my debt card and credit card, I do not get rid of them until I have resolved my statements, some receipts you need to hold onto in case you have to return an item or gift, so mark those receipts as such and some maybe be needed for income tax purposes.

Now how often should you reconcile your checkbook, well Darlings I maybe paranoid but I do it every other day, I also list what is pending and what is outstanding, this is especially important during the holidays or if you are heavy into using your debt card to pay for everything, you don’t want to over draft your account.

Another reason is that of late thieves are very big into “skimming” cards at Grocery stores, gas stations, ATM’s etc. so by checking every other day you’d be quick to catch any unauthorized spending, also it does pay to use your debt card as a credit card or to use your credit card as you have a better chance of reversing unauthorized transactions.

Now a new list has come out on paperwork that you will need to keep, and one of the most important questions that is asked is----

"How long should I keep certain papers?"

It is imperative that you check with your accountant and/or lawyer before throwing out any financial or legal papers, because they know most about your individual situation.

Because each person’s situation is unique there are times when it is important to hold older files in a 4 drawer file cabinet. And if you have children that information will also be important to hold on to.

I will be posting what papers to keep and for how long, and when to shift things from an active file to a dead one.

Until Anon, Kisses Darlings

A Life Time Routine~~~~

Hello My Darling Divas,

It was so strange and yet not strange to wake up yesterday morning and finding cold, wet fog surrounding the house, feeling so cut off from the world.

The aroma of coffee was enough to perk me up, but it was so cold that even Princess has to wear a sweater; I have a special doggie heating pad so that her joints are not in pain.

The sun finally shone wetly through the fog, and as it lifted I was surprised to see a small flock of ducks had taken shelter under some of the bushes, on the mulch covering. I guess it was warm enough for them, poor things. I keep a small metal bin of duck feed in the garage and I put some out for them in a pan, Juanita has ‘clucked’ at me saying they make a mess on the wooden deck and that her son-in-law will have to come and wash it off, but even I have heard her muttering in Spanish “poor things”, I smile thinking about her soft side and yes her son-in-law will have to come and wash/scrub the area.

This last Sunday Juanita took a break from visiting her family and came by the house to take down all the indoor decorations while Manuel took down and stored the outside lights and put them away for another year, I don’t keep a live tree anymore, the artificial ones seem to work very well, then he and Juanita went to join the rest of her family for a special mass for Epiphany, I told her to have fun with her family she is to have a vacation through Jan 11. She didn’t have to but it is traditional in her family to be sure that all the Christmas decorations are removed by January 6 the Feast of the Epiphany, otherwise one would have bad luck for the year. I think it’s really to show that one is not lazy, but it was very sweet of her to help me.

For the last few days I’ve been starting to put together my paperwork for my Tax Preparer, now it’s just waiting for the paper work from the government agencies, my banks and my broker and put it all together in a packet.

Now as a reminder I want all of you to go to my blog posting for January 4 and 5, 2008, in these two blogs you will have information to help you put your paper work in order, especially if one of your resolutions is to be better organized.

I have another Magazine to recommend to all of you. It is again our old standby Kiplinger’s Personal Finance, the February 2009 issue. Again they focus on how to rebuild your retirement portfolio, plus stocks that pay 5% or more.

I was happy to see that one of the stocks that I have an investment in, Briggs & Stratton (their symbol is BGG) was mentioned, granted it’s dividend share isn’t big, but what I did over a number of years is simply let the dividends buy more shares, (of course there is taxes to consider) so that I do get a nice little income now (not much but nice enough to put into a rainy day fund).

Remember Darlings, I always believe in something that is going to remain for the long haul and has less chance of going under.

A number of you who’ve contacted me, via my comments section (and please forgive me if I’ve deleted your comments but they were long and saying pretty much the same thing) were asking ‘You seem like such a social butterfly, how you keep up with all of this?’ or words to that effect.

Well Darlings it’s this---the key word is discipline, I have a schedule that I do adhere to, but I do vary it depending upon my health, weather conditions, commitments, appointments, etc.

Let us consider the week as going from Monday to Sunday, although calendars show the week as starting on Sunday and ending on Saturday, but think of it as I suggested.

Monday is for me is the start of my business week and I use it to find out how the stock market and other financial institutions are starting out, so that is a “work day for me”, while I watch what the market is doing I’m also reading all the news in regards to events both nation-wide and overseas, because I believe in the domino effect, what happens in one place will affect things and the economy in another. Having an idea of history is important.

This is also the time when I will flag stocks or bonds that show some promise of being a good investment, I don’t invest every week, most of the time I just monitor the progress of stocks holdings.

Tuesdays is when I make or return phone calls, I’m always careful in calling my friends in finance I know that they have busy work schedules, if they are unable to speak with me, I’ll make an appointment for when I can call them. This would also include my broker, now I know many of you invest on line and that is fine, I’ve done this for so many years that I prefer the personal touch.

Tuesdays is also a good day to call credit card companies, business companies, etc. if you have a dispute over your billing or to make doctor or dental appointments, beauty shop appointments etc. I try to have the calls completed in the morning; the only time I’ll make an exception is when I’m having my car maintance done.

I continue to read the news or watch CNN especially with on going situations.

Wednesdays is when I make financial decisions if I might buy either more shares in a stock, continue to watch it, invest in a stock that looks promising, or flag those that look like they may be in trouble. I also use Wednesdays to balance my banking accounts and for bill paying as well as certain days that I have flagged when I know certain amounts are going to be deducted to pay bills, this way I can keep tabs on my income and outgo.

I do not necessarily buy stocks on that day and not every week, it could be months before I make a purchase.

This is also the day my house keeper clips coupons and we do grocery shopping when I get home.

Thursdays I meet with my “Business Ladies Who Lunch” I find that this is a good time for me to hear what is happening in their business world and if they have heard of anything that is shifting, these are savvy ladies and if anything feels “off” with them they are usually right.

Fridays are when I look in to see how the markets have faired and how the flagged stocks are performing. I make notes and check on my notes from Monday and Wednesday.

I try to make Fridays my final decision days as well, if I’m going to buy or sell, but most of the choices I make is for the “long haul” that is what I prefer in my stocks. An excellent source is Value Line Investment Survey, some people prefer the print edition and some the on line source. I like the print because sometimes things will jump quickly out at me, but, and I know it seems redundant, I also subscribe to the on line version only because sometimes my print copy doesn’t come in a timely manner in the mail. I also do not keep a print copy beyond 6 months (it does add up since its weekly) but what I do is tear out those stocks that I’ve flagged for future reference and put them in a folder for safe keeping.

Saturdays, the only thing I do is check the news and see how things have closed I use the rest of the day to pick up and drop off any Dry Cleaning, run errands, and anything else.

Sundays is when I catch up on my reading both news and magazine articles I also use Sundays I try to go to Church at least twice a month and sometimes more, I find that getting up early even on Sundays keeps me on my toes and to not get lazy, then on the early part of the afternoon is use that for planning my week and looking over my “Day runner” for appointments and create my “tickle file” after that on the later Sunday afternoon’s I go to the Library and quickly read a weeks worth of Christian Science Monitors newspapers, drop off any magazines I’m done with in the exchange bin, look for at least one good book to read to off set my business reading and select several music CD’s for the week.

Now it is not all business for me, I try to end my day after the close of the New York Stock Exchange which is 3 hours a head of us since I’m on the west coast, but I do check in on the performance of a few of my overseas stocks.

Once the market has closed then I use the rest of the day for any appointments, or do some shopping, I make every effort to go to the gym 3 to 4 times a week, not necessarily the same day, and before I go to the gym I give my little Darling Diva Princess her little walk. It’s just several blocks to the beach and then along the beach trail and back, it’s a good time for me to think and muse on things, of course when crossing the streets one has to be careful and Princess cannot be hurried in leaving her “messages” and her “Mommy” does have to clean up after her.

Because it gets dark so early we go about an hour before Sunset, during the Summer of course we go later,

Weekends are for fun, sometimes I have things planned and sometimes I have nothing planned, when I have quiet evenings I use it to catch up on correspondence, writing for my Blog, calling friends or family, catch up on my reading.

When I come across an article that has promising information I first flag it and then when I’m done with the magazine I remove the article and put it into recycling, or if I have not removed anything out of the magazine I take it to the Library and put it into their magazine exchange bin.

And I have to admit it is a lot of reading, I subscribe to the Wall Street Journal, the New York Times, our local paper, the San Francisco Chronicle, San Francisco Business Times (includes the Bay Area) and most of the magazines that I have mentioned. My library is my home office and I have a fast DSL line although I’m thinking of upgrading.

I do go into the city Mondays through Thursdays, and on occasion on Fridays, I rent a very small office space from my late husbands old firm where I keep much of my file information and I have a computer on line with a T2 line that is part of the office building, I am able to access the use of that for my use, now I had to get a business license, but I am in business for myself, I do not take clients, but because I am in business for myself I can take tax deductions. It’s complicated but it works well for me.

Years ago when I was learning about investing from my father and mother (yes she was a very sharp lady) and going to college to learn business, I started this routine and kept it up when I got married, I was fortunate in that I had a staff to help with the upkeep of the house, and although I’ve down sized my home (which was a good thing for me) Juanita although an employee for me, is also my helpmate, she keeps a keen eye on the house and makes sure things are run well, she also comes to me if there is a situation, I really view her as a partner, that is why is was so important for me to increase her income and improve her medical and dental insurance. I also established a retirement fund for her when she feels she is unable to work for me anymore.

I’ve also guided her daughter and son-in-law in solid investments to help them gain a better income. One of Juanita’s grand daughters is going to college and also has a keen sense of investment banking, she is a very sharp young lady and has started making modest investments with money she got from working part time and of all things, collecting cans and bottles, the income she’s getting from her investments is paying for most of her college, which has taken a burden off of her parents.

Juanita’s other grandchildren and children are doing well following her daughters’ Constance’s lead.

Now I know a number of you are wondering how can I possibly be able to do all this reading, it’s simple, I can scan an article in a magazine to see if it’s worth reading in depth, with newspapers, I skip the fluff articles, although Juanita loves the gardening and cooking section, and go directly to the financial section and then I scan local, national and international news as it would relate to affecting the economy, I save the comics, theatre and movie reviews for when I take a brief break. After all, the mind does have to play. In the evenings if I’m not going out, and television is a bore I will read for a bit from a novel and then meditate to relax my mind before going to bed

By meeting my “Business Ladies Who Lunch” on Thursdays, it also gives me a break from routine and keeps my mind relaxed and active as well.

I also offer suggestions to my friends if they are in a “puzzlement’ over something; not too long ago my dear friend “Mean Kitty” and I were having coffee and she told me that she was thinking of closing her savings account at a particular bank, I asked her why and she said that because she could not maintain $300 in her account for a full 30 or 31 days that $5 dollars is taken out as a fee. I suggested to her to ask her bank officer why that was happening, but do it in the bank, I told her that I have several standard savings accounts with attached checking and what I do is have once a month a certain amount automatically transferred from my checking to my savings and there is no fee and you can have the savings account go as low as you want, I told her to find out if that is possible and find out what is the minimum she can transfer without having to have fee charged.

That worked for her. She now has $10.00 a month transferred she doesn’t feel it, and it will build up in her account and as her finances increase she can have more money transferred if she wishes.

I try to post my blog when I can, and I write my blog when I can between everything else. Some postings may take a little longer, and of course I do take vacations when I feel that things will hold just fine. And since my investments have been for the long haul with solid companies I’ve very seldom have had to do any sell off.

Now that so called banker Madloff who got arrested, well years ago he approached my (now deceased)husband and me at a function and we did get together for lunch with him when we were in his area, and although he spoke of glowing reports on things, there was something about how he was describing things that made me want to hold back.

When my husband and I had a chance to get away from Madloff’s influence, we looked over what he had presented to us, and we both agreed that there was something a little “off” we couldn’t put our finger on it, but it didn’t have that solid feeling like Apple Corporation did when we first invested in Apple. We wisely decided to not invest with him; my husband felt it was some sort of pyramid scheme, which could collapse. Although it did appear to be solid, there was something just “off” with it. Now people have lost their retirement funds and Madloff is in jail. If it sounds too good to be true it usually is some sort of trap.

But that is my routine, I do have a beauty routine, an exercise routine, but I won’t bore you with those.

Now a quick investment suggestion, go to Value Line on line they have a 6 tips for investing or selecting stocks, an educational section, Do read that Darlings, also I'm going to look further into Logtectic, they supply add on's to computers, they've just been listed on Value Line For January 9, 2009 and they seem to be a good investment, I'm always cautious on computer stocks, so I don't have many (here today, gone tomorrow) but they seem to be a good solid company, so it's something I may take a few shares out on, and see how they do for the year, don't go overboard, always be cautious and always diversify your portfolio.

Just remember my Dear Divas and Diva’s in Training, you are in business, you are your own CEO’s of your life and your life is your business, Remember That.

Until Anon Darlings, Kisses.

An Update

Hello Darlings,

To all of you who personally know me, Thank you, Thank you for all the wonderful get well cards. I will have by now been in touch with most of you, don't worry I will catch up with everyone.

Just an update darlings who have been following me on my "Blog". I am getting better, I can get around now quite well, but I will need to use a cane from time to time and a light weight wheelchair if I have to stand or walk for more than a half an hour.

But I can move around my home again, drive my car again and generally take care of business again.

The Doctors have told me that I injured the tendons around my ankle a bit more than what was first realized, and as with anyone of a 'certain age' it will take me longer to heal, but heal I will.

I know can get around with out the use of my nurse, and I was very sorry to see her leave, but all is not lost. My dear friend Dolly is having her elderly mother live with her instead of those care homes, the dear lady is very alert and in her own way very active, but she does need assistance. So when I told Dolly about my nurse, Dolly immediately interviewed her and since her mother and her are fluent in Spanish and other languages, it worked out very well.

So arrangements were made that as soon as the doctor said that I no longer needed Isabella that she was available to go to Dolly's home. Dolly told me that with having Isabella to watch her mother and take her mother places, she has much less worries while she is at work.

Juanita does miss her, but since she knows where Isabella's new place is they will still be able to visit.

Oh but Darlings it is just so wonderful to finally be able to get out and do things again, even if at this time I'm still a bit limited but to be able to have my spa and beauty treatments again is just so wonderful.

Alright I'm vain, but it does feel so good.

Now to all you Darling Divas, it is good to budget especially during these bad financial times, but on my routine trips to the city (which I'm so glad to be able to do again) I've managed to 'chat up' several young ladies who are in the business world and we manage to get together for lunch once a week.

(side note to Lauren who I know checks this blog every day---don't sell those rings yet---I have a suggestion for you and I'll tell you about it when we meet for Lunch this coming Tuesday)

Any way Darlings, in talking to these bright young ladies, we've come up with suggestions to save some money here and there.

Now this is only a few ideas and there will be more added---

One young lady use to have a weekly mani-pedi but by only having it just once every 6 weeks, and bringing her polish choice from home, she can do touch ups at home and save over $200 every 6 weeks.

Another young lady use to drive her car to work every day, pay for monthly parking, and Fast Track as well as the cost of gasoline, now she leaves her car at home 4 days a week and takes public transportation, she has stopped the monthly parking, lowered her gasoline costs, and dropped fast track. Especially since she found out that the transbay buses have WiFi, so she is able to start on her work sooner.

And in just two months she has been able to save, in her words, "A Bundle". She only drives her car on Thursdays so she can do her grocery shopping straight from her job.

Another young lady brings her coffee and lunch from home instead of buying the 5 dollar coffee's at Starbucks and eating out. With the exception of our weekly lunches, and even she has noticed more money in her checking account.

They are are using coupons, watching sales on products they want, buying store brands, and using the public library to save money, they plan their shopping errands and keep a note book so they will know the times when some shops open and close when they plan their trips.

One of my young ladies has said that in stead of buying a gift she gives a gift card for a certain amount at a store that they know their family member or friend likes to go to. It saves money.

And this is only the start.

Now I do recommend my dear Divas to look for "Money" Magazine for June 2008, in it there is an article for creating a good investment portfolio for each stage of your life towards retirement.

Now there is one thing that all my young ladies have said, getting a spa treatment or a massage every two to 3 months as a treat is a must just to feel good.

But it seems that the adventure of Saving Money seems to be catching up with them, how creative can they be?

One young lady told me that because she has been working on saving money that she has reduced her attendance at some of the hot spots, and when she does go she has found that falling back on the most inexpensive drink (not beer) has been a savings for her as well as not having more than two during the whole of the evening, she told me that she has found it to be more of a 'prop' to have in front of her than as a drink. And she has found more fun and educational things to do that are free. For her she has put her savings into her investment portfolio.

So much to think about---Now to all you Darling Diva's and Diva's in Training---I put the challenge to you. What can you do to save money and still have fun? Time to put your "thinking caps" on.

Until Anon. Kisses Darlings.

Taxes, the curse of life and Divahood

Oh ***sigh*** well, Darlings, this Diva Must buckle down and focus on putting together her tax information.

What a bore, but it must be done, after all we don’t want to give to the government more than we have to.

I am fortunate in that the best way to stay up-to-date on one’s tax information is to periodically file it at least every two week, but it’s better if you do it once a week. So that means that you have an “In-Box” to file such material. This means that you have to be very focused and organized to make sure that it is taken care of.

It is so important to designate a day to do all that filing and bill paying and balancing the accounts. Of course when you come home from a hard day of earning the “Diva Bucks” it is hard to get into the mood to do this, but in the long run I have found Mondays to be very good, just think of Mondays as “money days” and it will all make sense, and if you do it every Money day it won’t be so hard or difficult.

My dear friend ‘Mean Kitty’ says that she also ties it in with doing laundry, Mondays for all the underwear, Tuesdays of all the nice outerwear, Wednesdays for the rough outerwear like jeans and sweat suits and Thursdays for sheets, pillow cases and towels, with Saturday mornings for the weekly drop off and pick up at the dry cleaners. I like the way she has that organized.

But one thing to remember if your bills are pretty stable in that you have an idea how much the bills will be then you should be able to budget for any grocery shopping or entertainment over the weekend.

Budgeting is always very important.

Now Darlings do you remember all that information that I posted earlier on my Blog, well remember it will come in handy for you.

Now getting back to doing Taxes---Darlings you must do your taxes no matter what. Until someone or some group comes up with a fool proof lawsuit to show that taxes are illegal we have to pay them.

But never pay more than what the law requires, which means you have to see if you have any tax deductions---don’t think that just because you are renting or living with your parents (until you are Diva wealthy-independent) that you don’t have tax deductions and therefore can only 1040 and 540 EZ forms. There maybe deductions that you are not aware of.

Now it’s too late for this year, but for the year to come, write down and keep receipts of all your expenses, especially if it’s for work. Do not be afraid to ask a tax preparer (after the tax season is past and things have calmed down) what you can take deductions on, spend the money on an appointment with a very good tax preparer to learn what you maybe overlooking.

Remember in some profession if you are required to wear a certain type of clothing that you have to buy or a certain type of style is expected of you because of an image to present you may be able to take that as a tax deduction, the use of your personal vehicle for your job may also fit into that category (so do keep a mileage log as well as repair and maintenance log).

You maybe surprised, and instead have a longer form to do, which could result in more money coming back to you

But always, Always have a good tax peparer do your taxes and confirm if what you have is a legitimate deduction or not.

Of course one of the best tax write offs is owning your own home, I know of two girl friends who went in together to buy a duplex and each live in their own part of it, and it worked fine until one of them got married and wanted to sell off her half, so her girl friend bought it and rented it out, using the rent to offset part of the monthly payment, insurance and property taxes as well as any maintenance..

Sorry Darlings, I did drift off the subject here, but what I want to make clear to you is that there are deductions you may not be aware of, even those that those computer tax programs may not show up.

That is why having it done by a live professional tax person is very important. A really good one will ask you questions, guide you through the process, find all those little savings you were not aware of, by keeping your receipts and cancelled checks you then discover all those little things.

That is why it’s important to do that for at least a year it will give you a guide line to watch for.

Now the second reason to have a live professional tax person do it for you is that they also have to sign their name to the tax form, so if there is a mistake they are responsible as well.

Of course if you are honest with your finances you do not have to worry about being audited.

Also it pays to have a tax preparer be one who can go before an IRS investigation person to argue your case as well. Not all of them can do that, so ask that of your tax person if they have that capability to do that.

My tax person has always said to never take a greater tax deduction than what is legally acceptable unless you have proof that you can take it. The reason is that this would send up “Red Flags” to the IRS. If you increase your deduction you MUST have documentation to back it up---receipts, photos, an evaluation from the receiving agency, cancelled checks, anything to back this information.

Also be consistent each year with your deductions, and spread them around to different charities, for example if for the last two years you’ve been donating to Salvation Army change and donate to St. Vicente de Paul.

This would also apply to cash donations, but if possible always write out a check, it is proof of donating; any change that you drop into the bucket or donation box that’s loose cash will be hard to rove if it’s too much. Or you may not be able to take that deduction at all. So if you want to buy Girl Scout Cookies always pay by check.

Always, always check with your tax preparer with what is safe that you can donate or take a deduction on what will keep you “under the radar”. Some years you may be able to donate a lot and some years not quite so much, so always keep it reasonable.

If you go to the same tax preparer every year, they will send you a checkoff form each year to see if you have the same type of deductions, this is a good model to follow as well as a good reminder on what to watch for the upcoming year. Simple things like the tax you pay on your car license plate may be a tax deduction depending on the tax laws in your state.

And there are many, many more hidden ideas, so ask your tax person.

Oh just the thought of all this makes my head spin, Darlings forgive me but this Diva is going to take an aspirin and focus on her paperwork.

Until Anon Darlings, Happy Deduction Hunting.

Diva Ideas for a tax deduction for one's car------

Darling Divas

It seems I’ve opened a whole new chapter of information, I was enjoying my little trip to the city yesterday, I like to take the BART system (but the cars do need some clean up) and on my train I ran into an old friend of mine, Wallace.

Wallace is a wonderful gentleman who introduced me to my tax preparer. I told him about my “blog” and he said that he had come across it by accident and thought that it sounded familiar, and has it flagged when ever a new posting is put up.

He loved the information that I had come across, but he felt that I left another part off.

He informed me that just as it is important to keep all paperwork on home repair and improvement on one’s home, especially for re-sale, it was equally important to keep all receipts on work done on one’s automobile or van.

I thought that was a bit unusual, but he said that if one plans to sell one’s vehicle, by having a copy of what has been done and at what mileage, when it comes time to sell your car to a private party, you as the seller, can give all full information on what has been done to your vehicle, as a form of full disclosure.

He said that sometimes for those that use a personal vehicle for their job by having all these receipts for repair and maintenance it maybe possible to take it as a tax deduction, but always check with your tax preparer because the tax laws change every year.

But even so it did make excellent sense to keep this information on your vehicle, especially if there is any sort of warranty on the repair. It did make sense especially if your job is in real estate or as a wedding or event planner or something of that sort, which a lot of traveling to different locations or clients is required, therefore because of that type of work it then requires keeping receipts for tax information, but to also have it for your personal information on repair and maintenance is equally important.

Now the tax law does vary a bit if your vehicle is used both for business and pleasure, so I do believe keeping a mileage report is important, but do ask your tax preparer about the tax laws covering this.

He also said that it didn’t make sense to buy a brand new vehicle especially since one loses value the minute it leaves the lot, but to buy one that has low mileage, is gently used and is from a reputable dealer that has gone through it completely to check it out to ensure that it is safe makes sense, and to hold on to it for no more than 10 years at the very most, perhaps only 8 years, because after that time it begins to cost more to repair than the worth of the vehicle , unless one has a car that is a collectable (like a Packard or an Aston Martin) or has proven very reliable in the long run.

I have a dear acquaintance of mine who is in advertising and she has a car that’s 20 years old and is so reliable that she is loath to get rid of it. She told me that she will use it until is drops and can’t move anymore, which is what I was planning with my old car, until it was stolen by those 3 hoodlums (which the police eventually caught, we are now in the process of going to court) and wrapped around a pole. This forced me to buy a new car, Ms. Wicked, which I adore.

Although I do have to confess that there are times when one just simply wants a brand new car, in spite of the drop in value once it leaves the show room and even Wallace agreed with that, he said there are times when nothing but a brand new car will do.

Another thing, have full insurance which would also include being hit by an uninsured driver or catastrophic damage such as fire, flood, or falling trees, if you want to know who are the top quality insurance companies you can check with Consumer Reports, for their ratings, but rule of thumb for many people is this~~~go to an insurance company that also has a “brick and mortar” office, so you can deal with real people, not over a computer or over the phone. It may take some of your personal time, but the personal touch to get your claim processed is very important.

My Dear Friend Mean Kitty had that happen to her, she and her husband were traveling and were at a stop light and they were in a multiple rear end collision. Fortunately their car was drive able, so with the information from CHP, and everyone exchanging insurance information, Mean Kitty also had the added photo information of taking pictures of the entire accident to confirm that her car was not at fault.

When she got to her destination she called her insurance office to report that she was in an accident and when she would be coming into the office to do the claim since no one was injured in the accident, if there was an injury of course reporting the incident immediately even over the phone, is very important.

She was very pleased by her insurance company, they made the process of getting their vehicle repaired, the rental of another vehicle and processing their claim very painless, and it went smoothly, she did recommend that it’s best to be patient about receiving your claim especially if multiple vehicles are involved or if there maybe a dispute or investigation. But she received her claim in less than 3 months. She also said that the auto repair shop that was recommended by her insurance company made the process very easy and the car rental company also was very accommodating.

(Now I have to say that Mean Kitty had her auto insurance with State Farm and the car rental company was Enterprise, I mention these companies because they are fairly nationwide, although I’ve been told other well-known insurance companies also give excellent service, but remember the “brick and mortar” rule.)

She recommends and I do to, to keep no less than 2 disposable cameras in one’s glove compartment as well as your insurance information, by taking pictures right at the time of the accident showing the location and positions of the cars and the damage it can strengthen your claim.

She also says refresh or replace those cameras on Dec. 31 of every year, and use the ones that you’ve removed for holiday pictures. She said that if one does it at the same time that you replace your batteries in your smoke alarms as part of your check list it helps to remember these things.

Now why disposable point and shoot cameras? Well Darlings, they are there, they won’t fail if your camera cell phone is dead and it’s much easier to have the film developed especially with one hour processing. Nor do you have the worry that the pictures will be accidentally erased which could happen.

Well with this delightful and informative chat that I had with Wallace we also exchanged cards, so I could update him on my new home location, and we could plan on having dinner together with him and his wife Marsha and I with possibly Kevin or Kenneth (I do love to have several handsome men dancing in attendance)

So it seems that I have started a new venture with gathering this very practical information to share with all you Diva’s and Diva’s in training. This is all very important, even Mean Kitty has to agree about this.

Oh and why was I going to the City? Well darlings, there are a couple of stores that I love to purchase my DVD’s and music from, Rasputins just below Union Square and Virgin Records, I couldn’t take my Diva Darling, Princess, but I’m so glad that Juanita is back, she loves watching her and spoiling the little dear, although she said I made her work very easy for her because I called in Molly Maids, so Juanita tells me she is going to go through my closet to see what needs to be repaired, she is so through, sometimes I feel like I have a mother watching over me, that is why I just want to do my best for her as well.

And clothing maintenance will be another subject I will be touching upon in the future my Dears.

Until Anon Darlings, this Diva is going to treat a dear friend to lunch, and relaxation. Kisses Darlings.