Are you pulling from your retirement fund early?

Question

Are you pulling money out of your retirement fund, have you considered it and what advice do you have for someone facing this situation?

Answer:

I actually don’t have a retirement fund in a traditional sense. My husband and I have a nest egg that we put money into. However, if I am understanding the ways 401(k)’s work, then it isn’t a great idea for people to pull money out of it early unless they absolutely have to. The fees for drawing from a retirement plan early can be quite high, however the fees vary depending on your fund.

If I were faced with a situation where I either had to pull from my retirement fund or my family would go without food, then I would likely pull from the fund…it just all depends on your individual circumstances and how you feel about it.

Are you going to slow down on spending this year?

Question:

Christmas and the rest of the holiday season is just around the corner. Do you plan on spending less this year than last year?

Answer:

I am likely not going to be buying as much this year as last year. I was considering giving family members cookie tins rather than gifts they may or may not like. I also find that homemade cookies are a bit more thoughtful than a cheap gift set of bath fizzies from Target or Wal-Mart could be. I am investing my time into the cookies rather than mindlessly shopping for a “coverall” gift.

Have you “cheaped out” during the recession?

Question:

Since the recession has started (or rather, since you have felt it in your own wallet) have you been purchasing items that are cheaper than what you normally purchase that may have the same use?

Answer:

In a short answer, yes. I have been buying makeup that isn’t as “name brand” as usual. While my friend has a collection of MAC that is growing, I am using NYX and other drugstore makeup brands. I am also extending the savings onto grocery products. I have been trying more and more “Great Value” products from Wal-Mart. They really aren’t that bad. Of course, I have said over and over that my favorite generic is the Kroger brands. The Kroger Spaghetti sauce is my favorite…it’s better than any of the national brands in my opinion and 50 cents cheaper on average.

Do you think the rally has stalled?

Question:

The stock market really hasn’t moved too much one way or another for a few weeks. Do you think that the economic rally has stalled?

Answer:

I think that it has stalled for now, but that could be due to the poor reports coming out about unemployment. If you look at other factors such as retail sales (which were up for the past month) then the economy is doing a bit better in the way of consumer spending.

I think over the next few months, the rally will continue but it will be more gradual.

Would you pay the ETF to get a new phone?

Question:

A cellular carrier’s early termination fee is typically around $200; Verizon just upped how much it charges for an ETF if the user has a smart phone. Would you be willing to pay the ETF to get a new cell phone?

Answer:

It really depends no how much I want the phone and how much I would be able to sell my current phone for. I would also have to be getting a good deal on whatever plan I was moving to because right now my Sprint plan is only $59.99 per month for unlimited data, unlimited texts, unlimited mobile to mobile calling (on any network), and 500 anytime minutes per month with free nights and weekends that start at 7 pm.

There is a way, however, to purchase a phone from someone else, like on eBay, and sell my own. For example (and this only works when you want a phone with your current carrier), I have a Palm Pre and want a HTC Hero; I could sell my Pre on eBay and buy a Hero also. The difference is about $100, which is cheaper than an ETF and I don’t have to extend my contract.

As enticing as the Motorola Droid looks, I don’t think I’ll be switching carriers for it.

Are you ready to sell your house?

Question:

It looks like there could be a break for house sellers in the market. Are you ready to sell your house?

Answer:

I have to say that I’m not ready to sell my house just yet. While the market in my area IS picking up, it still isn’t where I would like it before I decide to put my house up for sale.

I think that if you give the market some more time then you may be able to see a bit more money than if you sold now. Especially if you wait until the Spring, when the market gets hot again.

Are you being ripped off by an online company?

Question:

In 2006, AOL announced that it would stop charging for @aol.com email addresses. Since then most of the customers have been switched to the free service, however there are still a few less internet savvy users out there that are paying for email service that is supposed to be free; many of them not even noticing.

This is just one example of how people are being ripped off every day from online companies. Are you being ripped off? How about someone you know?

Answer:

While I am not currently being ripped off by AOL’s shady business practice of continually billing someone for something that is free, I think I might know someone who is. And all I have to say is: If this person is paying for this service than he/she is less internet savvy than I could have ever imagined and he/she deserves it.

Other than that, I am not currently being ripped off by any online company to my knowledge. There was a time a few years ago, however, that “someone” I know was being ripped off by a company who cheated him out of a couple hundred dollars…he has not seen that money to this day.

Do you need to have a buying agent when you go to buy a house??

Question:

When you’re looking to purchase a new home do you find it easier to have an agent represent you and help you complete the transaction?

Answer:

There are a lot of new houses just sitting on the market along with many used homes up for sale. Most of these houses are listed with an agent who is known as the listing agent. They represent the seller and will do what’s right for the seller.

Do I think that you need to have a buying agent to represent you if you’re buying a home? No, but should you have one to have someone on your side, yes.

When we bought our house we didn’t have a buying agent, but the sellers listed the home for sale by owner. It was quick and painless.

Does the average cost of a house worry you at all?

Question:

The average price for a home in the United States dropped once again. Does this worry you at all?

Answer:

As a homeowner, yes. I used to not be worried because I could still see the prices in my neighborhood increasing, but not anymore. I think that once the prices in my area level out some, I’ll be less worried. No one wants to lose money in their house. That would go against the point of owning a home, I thought.

I’m sure I’m not as worried as people in other parts of the country though.

How often do you think minimum wage should go up?

Question:

Minimum wage has had quite a bump over the past few years. After staying at a meager $5.15 for years, it is now up to $7.25 an hour. How often do you think minimum wage should go up?

Answer:

I actually think that there should be some kind of law that has minimum wage increase gradually over time rather than having huge increases over just a couple of years. This way the employers that only pay minimum wage won’t hurt so badly when the rate goes up.

Some employers get away with never giving their employees a raise. This is why minimum wage should have a steady, but gradual increase. Those are the same employers who complain about a huge jump in minimum wage and say that they’ll have to fire people or up their prices to keep up.

Do you think that the recession is coming to a close?

Question:

There are plenty of economic indicators pointing to a big “yes” but do YOU think the recession is coming to an end?

Answer:

I believe that it might be. Like the question poses, there are several economic indicators that are pointing to the recession ending, but there is a little doubt left. Of course after such a brief recession, there is some doubt whether or not the recession is coming to a close. However, most people are a bit more optimistic and are really looking forward to the recession ending.

Do you support an employer’s decision to check the credit score of someone applying for a job?

Question:

It is becoming more and more common for an employer to check the credit score of a potential employee. Do you support this practice?

Answer:

Absolutely not. I have several articles I have written on this very subject and I make my feelings toward the practice pretty clear. If the employer gave the candidate a chance to explain blemishes on their credit report, then I would be a bit less abrasive toward the practice, but otherwise, this is just ridiculous. If an employer is looking for a reason not to hire someone, I’d like to see them come up with a better reason than the candidate’s credit score.

What have you done to be more environmentally conscious?

Question:

Being environmentally conscious is something that I have talked about more than a time or two on this blog. What are some of the ways that you’re doing your part to help the earth?

Answer:

Personally, I should be doing more, but the things I have done are putting CFL lights in my house, recycling plastics, not purchasing plastics that can’t be recycled whenever possible, reusing containers from restaurants rather than just throwing them away, driving less, and using less electricity whenever I can.

Another thing I do, because it can be a hassle to recycle every single plastic bag I get from the store is, if I forget my reusable bags, I will not get a plastic bag, especially if it is just a couple of items.

How do you feel about Obama’s health care reform plan?

Question:

Earlier this week, President Obama went to the American Medical Association and pitched his idea for health care reform to a room full of doctors. Of course he gave his speech to the one group of people who would likely be very unwelcoming to the idea of his health care reform, mostly because it means less money for them. But, how do you feel about the health care reform plan?

Answer:

I believe that the health care system needs some serious reform. Our health care system is broken and the problem is that health insurance companies charge outrageous premiums for people who are basically very healthy. Why? Because in my opinion hospitals charge way too much for very routine services. A trip to the emergency room, at a “high” time in the afternoon, can easily run thousands of dollars. I mean, an x-ray at a hospital can be over $500. A lot of families can’t afford health insurance, so they’re stuck with the bill if something unfortunate happens…so this sends a lot of people into bankruptcy.

So I think that health care reform is not only a good thing, but necessary.

Where have you found work in the recession?

Question:

Sure, this question really only pertains to those who have been laid off or have had to try to find work since unemployment started to skyrocket, but if you have found work, where did you find it?

Answer:

I found work at a department store, but thanks to some creative talking on the part of the manager, it really turned out to be a job that wasn’t even remotely for me (in the interview I told her that I wanted to work in corporate marketing, I really wanted to work in brand marketing, and she said that in a year or so that I would be able to be promoted. Well, when I was finally out working on the floor, I started talking to another employee who graduated with a marketing degree in 2007 from the same college I went to and she was making $1 less an hour and had been working in the store for almost 2 years).

Other than that, I’ve been working full time on this website and some marketing work for it. I have been trying to learn about internet marketing, which is completely and totally different than marketing we learned about in school. From what I’ve read about internet marketing, it’s all about skirting the rules as opposed to “college” marketing which is about product research and quality marketing and mind share. It’s just so different.

Would you be willing or have you ever shopped online for your prescriptions?

Question:

Buying medicine at the pharmacy (like Walgreens or CVS) is expensive when you don’t have prescription drug coverage. Have you ever considered shopping online for your prescriptions?

Answer:

I believe that as long as the pharmacy was reputable and had a good track record there is nothing wrong with buying your prescriptions online. As a matter of fact, I think that would be a much better way to go if you are extremely busy. Recently, I went to pick up a prescription for my husband and waited in line for 45 minutes because there was one (very old) man working the register and several people waiting in line. This was at a Wal-Mart pharmacy and the line wrapped around the pharmacy and into the beauty section. It was ridiculous.

Is there anything Western Union and other wire transfer companies can do to protect their customers from being scammed?

Question:

Scammers have been using wire transfers for years to lure people into sending money without actually receiving anything in return. Western Union, a form of wire transfer, is a favorite among said scammers. So, how can Western Union, as well as other wire companies, help protect customers from fraud?

Answer:

Western Union has to step it up when it comes to protecting the people who are using the service. If it were to become more of a escrow service, those who were using the service to conduct legitimate business would not be able to transfer money in a timely manner. However, if the escrow service could be limited to situations where customers are sending money in return for a service or product, this could work. The scammer wouldn’t want to do an escrow at all and that would send a red flag to the customer not to do business with that person.

Western Union has an opportunity here to protect customers from potential scam artists and to help it stand out, perhaps it should.

Should companies be forced to apologize to Nigeria for “offending” the country?

Question:

After Sony released a commercial that made light of Nigerian 419 scams(You know, the one where the price of Nigeria sends you $1 million as long as you Western Union him $5,000 or something like that), Nigerian officials said that Sony should apologize for the commercial. It also happened with the movie District 9. In the movie, there are a group of Nigerian criminals and the country is now not screening that movie anymore either and is calling for an apology. Should companies apologize for showing Nigeria in a poor light?

Answer:

No. I think that if Nigeria wants an apology, then perhaps the country should do something about the amount of illegal activity that goes on in the country. When there were traces run on the scams that were said to be from Nigeria, guess what, they originated from Nigeria.

Also, think of how movie studios portray criminals from any country. The villains in movies are always ruthless and you are made to hate them. I have watched District 9 a handful of times now and I have to say that as bad as the Nigerian criminals in this movie are, the MNU is far worse. I think Nigerian officials missed the point of the movie if all they saw was the Nigerian criminals.

Could you go without a car?

Question:

I’m sure the answer will be “I already do” or simply “Yes” if you live in a big city, but what about the suburbs or even rural areas? Could you go without a car?

Answer:

Ha. This one is pretty funny, after all, there was one point in time when cars didn’t exist. However, I have been without a car at one point in time and it was quite difficult to find a ride from place to place for the months I was without a car. I suppose what was even worse was being able to look at my car and know that I couldn’t use it (in the summer of 2006 my car was in the shop all summer and I wrecked it in September 2007).

Living in the “suburbs” of a small(er) city makes it extremely difficult to go without a car. I live 6 miles from the city and there aren’t any bicycle paths to get to and from the city, just a two lane highway (oh, the joys of living in Mississippi). There is a public transit system, but only within city limits.

What would you give up to have a highly customized credit card?

Question:

Perhaps the real question is what kind of concessions would you be willing to make on things like APR and benefits to have a card that is uniquely you?

Answer:

I would rather have an ugly card than to have to worry about my 30% APR or not having any kind of benefits from the card. I have seen where people have to pay higher APR’s on the cards that have a cute picture of their cat or dog or kid just because the credit card company went through the “trouble” of putting a customized picture on the card. This isn’t always the case, but, like I said, I would rather have an ugly card.

So the truth is, I would not make any concessions when it comes to my credit cards and how they look. I never see my credit cards anyway because they’re always stuck in my wallet. If I’m at the gas station, I use the blue one. If I’m at the grocery store, I’ll use the red one. This is how I know my cards.

Would you start your own business if you couldn’t find work?

Question:

If you are one of the millions of unemployed people in the United States (or anywhere else in the world) would you try to start your own business in order to make work for yourself?

Answer:

While this website didn’t exactly start out that way, since I finished college and had a hard time finding a job this has become my full time job. I even realized that I was worth more writing for the site than I was working full time at the department store. That basically means it would cost more for us to hire someone to write as much as I do a week than I was making working there.

I really enjoy working on this site and really hope it can go on for awhile.

Do you plan on getting vaccinated this flu season?

Question:

Everyone is warning about the upcoming flu season. Do you plan on getting vaccinated at all for either type of flu?

Answer:

I have only gotten the flu shot one time in my entire life, and the one time I got the vaccine, I got sick with the flu. Ever since then, I have not gotten a flu shot. This year, though, the H1N1 Swine Flu is going around and it has actually hit my town relatively hard because of the college campus here.

Even though there is an outbreak of the flu, I will still likely not get a vaccination because there are more high risk people who need it a lot worse than I do.

Do you avoid places and situations where you are pressured to buy something?

Question:

There are a lot of places out there that are hurting for sales. The problem has gotten to be where I know that I avoid places that use high pressure sales tactics like the plague. Do you ever try to avoid these places and what would you do to change them?

Answer:

I believe that people are inherently turned off by high pressure sales tactics. No one wants to be pressured into buying something they aren’t ready to buy or get into a situation where they feel bad for not buying something (I do this sometimes). Nor do they want to get into a situation where they feel as though they have to get a credit card. So, if someone feels as though they have had an overly pushy sales person, they are much less likely to return to the store. This is just my opinion though.

Even passive sales pitches are something that irks me a little. Here’s a real example of what I’m talking about:

After Chris and I got married my insurance company sent us a card to congratulate us. I thought it was so thoughtful, until I opened it up and it said, “Congratulations! Have you thought about getting a life insurance policy?” This company has been pushing the life insurance policy on me for 5 years, and I’m not going to change my mind this time.

I think that a lot of places need to realize that when someone is shopping, they really do have something in mind. As a good sales person you can lead them in the direction they need to go or open them up to ideas that they may have not thought of, but pressuring them into buying something they don’t want is not going to win you any brownie points.

Is a four day work week ideal to you?

Question:

Some employers are opting for a four day work week to help with the loss of profits from the recession and they are choosing to go this route instead of firing some of their staff.

How do you feel about a four day work week and would you be willing to try it out even if the recession wasn’t hurting business?

Answer:

I think we’re all programmed to want to work as little as possible but be paid the same. When it comes down to it, I would rather have the salary for that extra day than have the day off.

However, I may be in the minority because according to an article from Time Magazine, 17,000 workers in Utah have been trying out the four day work week and have really grown to like it.

Why are people taking out cash advance loans?

Question:

Cash advance loans are notoriously bad loans. They typically have outlandish APRs and often leave the borrower in some kind of financial turmoil. So, why would anyone take out a cash advance loan to begin with?

Answer:

People take out cash advance loans because they need emergency money and their credit isn’t good enough to get traditional loans. This is one of the only reasons that I can imagine why people would want to take out payday, title, or cash advance loans.

Many people can’t afford the outrageous APRs, so I am not too sure why these companies pop up just about anywhere there is a hole in the wall. I suppose it’s because they make so much money off the people who do pay, that the people who don’t or can’t pay are overshadowed by the other customers’ payments.

What was the most embarrassing job you’ve ever had?

Question:

There are so many embarrassing jobs out there. They’ve really created an entire TV series around jobs that no one wants called “Dirty Jobs.”

Every now and then people will have to hold a job that may not be the most flattering for them, but it will pay (at least some) of the bills.

So, what’s the most embarrassing job that you’ve ever held?

Answer:

Even though I never “reported for duty” on the job, I was hired to be a debt collector hours before getting hired to work as an intern at a marketing magazine. That was really a no brainer in my opinion. After getting the job at the magazine, I simply didn’t show up for the job at the debt collection center. I never really wanted to do that and would have hated every minute I spent there.

By the way, this collection center is always looking for workers.

Was cash for clunkers a success?

Question:

After all the media hype and the commercials surrounding the cash for clunkers or CARS program, do you think it was actually a success or did it fail to bring real sales to the automakers?

Answer:

I was always a little weary of the program because the rules that came from the government were a bit easy to find loopholes in and while the automakers did see sales increase dramatically over the past few weeks, the program didn’t last as long as the government had hoped and now the car companies are dealing with the sudden jump in sales with low production.

The sales were only due to the program. If the program had never existed, sales would still be flat. So, in a way it was a success, but overall I don’t think that the government really saw what it hoped for.

What do you do about your dead end job?

Question:

We all feel like our jobs hit low points at times, but what do you do when you know that your job isn’t going anywhere and you’re basically stuck doing the same job with no hope of ever being promoted or getting a raise?

Answer:

That question is easy; you start looking for another job, but be responsible and find another job before you quit the first one. Most people have lots of responsibilities and can’t just go around quitting their jobs without something else lined up first. Then again, you could quit your job while you have no prospects and get in the unemployment line in your parents’ house.

Where are you putting your money?

Question:

Recession! That’s a word that people are really turning a deaf ear to. However, there are a few things that we all still need to remember and do while the market is still down and the economy is nursing it wounds.

Money is the biggest issue. It’s something everyone wants, so where are you putting your money these days?

Answer:

Right now, analysts are warning against putting your money in the stock market, they’re warning against putting your money in real estate, it doesn’t seem like your money is safe anywhere. However, if you put your money in a mutual fund that tracks the market on a whole, perhaps you may just beat inflation for the time being. This may have to do for some of us who don’t have the time to micromanage our portfolios and watch every move the market makes.

Have you found your place in a recession proof industry?

Question:

With the recession looking like it might be winding down (hopefully), but with unemployment still hovering just below 10%, have you found a job where no matter how bad the recession has gotten, you don’t feel threatened?

Answer:

I don’t have a job, so I’m hoping that some of you will answer this. I don’t think that there is one person out there who doesn’t worry about their own job security from time to time. Perhaps the exception is nurses and people who work in the medical field. I have a friend who is a RN and I really don’t think she ever worries about whether or not her job will be there the next day. I would love that kind of job security in a field that I actually wanted to work in.