Sunday, July 29, 2012

College Radio

College radio can be your best friend as an up and coming artist. These stations are the most accessible radio option for indie artists, so targeting college radio in your promotion campaign makes sense. There are a few things you can do to increase your chances of getting playlisted at the college stations you approach. As you package up your CDs, keep the following in mind: 

  • Yes, send promo CDs. You'd be surprised how many college radio stations still operate by pulling the CD off the shelf and playing it.
  • Include a list of songs that include profanity. Your list should say the song title, the track number and the profane words used. It takes station staffs a long time to wade through everything to find out what they can and cannot play according to FCC rules, so doing this task for them will get your music on air sooner. FCC rules are different at different hours of the day, so if you list the profane words, the station can figure out which songs they can't touch and which they can play during safe harbor hours.
  • Put a sticker on the front of the CD with your band name, album name, two sentences about yourself and three or so suggested tracks. They won't have time to listen to your whole album, so direct them to the stand out songs.
  • Sending promos is fine, but put them in a jewel case. Even if there is no artwork, write the name of your band and the album title on the spine of the jewel using a marker. If you do have artwork and this info is not easily readable on the spine, write it in. This helps DJs find your album on the big station shelves.
  • Start with your local stations. Write on the envelope that you are a local band - it may help get your CD listened to first.

States ask help collecting Internet sales taxes

WASHINGTON (AP) -- More than 21 states have simplified how they collect taxes in hopes of recovering an estimated $20 billion in sales taxes that go uncollected by out-of-state online merchants every year. But the nation's governors say they still need help from Congress.

Speaking on behalf of the National Governors Association, Tennessee Gov. Bill Haslam told the House Judiciary Committee on Tuesday it isn't fair to local businesses that online sellers are not required to collect and distribute state sales taxes for purchases made where they don't have a physical presence.

In states with sales tax, online buyers are required to pay a "use tax" for items upon which no sales tax has been paid, but often sellers don't enforce it or buyers are not aware of the requirement.

"This discussion isn't about raising taxes or adding new taxes," Haslam said. "This is about states having the flexibility and authority to collect taxes that are already owed by their own in-state residents."

Through the Streamlined Sales and Use Tax coalition, around 21 states are in full compliance with the laws and regulations set forth by the cooperative and have agreed to implement the policies and software technology that would make it easy for even the smallest businesses to collect and forward sales taxes across state lines.

Reps. Steve Womack, R-Ark., and Jackie Speier, D-Calif., urged the House to pass the Marketplace Equity Act of 2011, which is co-sponsored by 48 House lawmakers from both parties.
The act was in response to a 1992 Supreme Court decision that restricted states from collecting sales taxes on Internet transactions with online retailers that are not physically connected with the state.
Similar online sales tax legislation discussed in Congress during at least the past decade all have lacked enough support to become law. As both parties remain unwilling to let the other claim legislative victory, the bill's fate is dubious.

Some Republican governors such as Chris Christie of New Jersey and Terry Branstad of Iowa have endorsed legislative action to make out-of-state Internet merchants charge and collect state taxes.
Yet, ideological disagreements between conservatives have become more evident in the bill's two sister Senate measures: the Main Street Fairness Act and the Marketplace Fairness Act.

Republican Sens. Kelly Ayotte of New Hampshire and Jim DeMint of South Carolina have argued that any federal law that allows states to require the recollection of online sales tax would impose an unwarranted burden on struggling families and recovering businesses.

Steve DelBianco, executive director of NetChoice, a coalition of e-commerce companies, said the Marketplace Equity Act of 2011 does not provide enough guidelines to simplify the process of collecting and distributing taxes.

The bill "does not adequately protect America's small businesses, for whom new collection burdens would be disproportionately complex and expensive," DelBianco told the committee.

States that have no income taxes and those that rely on sales taxes for their revenue have a strong interest in the bill due to the additional income that could be generated if states start collecting online sales taxes.
Retailers' e-commerce sales increased by 16.3 percent between 2009 and 2010 to $169 billion, according to the Census Bureau. The Forrester Research company estimated that around 25 million more Americans are expected to shop online in the next four years.

8 common tax-time goofs that can delay your refund

Here are eight common errors and the IRS' comments about how to avoid them:

1. INCORRECT OR MISSING SOCIAL SECURITY NUMBERS.
When entering SSNs for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards.
2. INCORRECT OR MISSPELLING OF DEPENDENT'S LAST NAME.
When entering a dependent's last name on your return, make sure to enter it exactly as it appears on his or her Social Security card.

[Related: What if You Can't Pay Your Taxes?]
3. FILING STATUS ERRORS.
Choose the correct filing status for your situation. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. See Publication 501, Exemptions, Standard Deduction and Filing Information, to determine the filing status that best fits your situation.
4. MATH ERRORS.
When preparing paper returns, review all math for accuracy. Or file electronically; the software does the math for you.
5. CARELESS ERRORS.
Take your time. Many taxpayers make mistakes when figuring their taxable income, withholding and estimated tax payments, Earned Income Tax Credit, Standard Deduction for age 65 or over or blind, the taxable amount of Social Security benefits and the Child and Dependent Care Credit.
6. INCORRECT BANK ACCOUNT NUMBERS FOR DIRECT DEPOSIT.
Double-check your bank routing and account numbers if you are using direct deposit for your refund.
7. FORGETTING TO SIGN AND DATE THE RETURN.
An unsigned tax return is like an unsigned check - it is invalid. Also, both spouses must sign a joint return.
8. INCORRECT ADJUSTED GROSS INCOME.
If you file electronically, you must sign the return electronically using a Personal Identification Number. To verify your identity, the software will prompt you to enter your AGI from your 2010 federal income tax return or last year's PIN if you e-filed. Taxpayers should not use an AGI amount from an amended return, Form 1040X, or a math-error correction made by the IRS.

6 Ways to Save on Home Energy in the Heat of Summer

Summer is upon us, and while I'm sure we all hope for mild weather, chances are that your home energy costs may be rising--especially if you live in an area of the country affected by the recent heat wave. However, it's always a great idea to save money any way you can. So even if your energy costs aren't skyrocketing, consider the following ideas to make your electric bills more manageable this summer:

1. Adjust the Thermostat
Air conditioning costs a fortune, and if it runs around the clock, you can surely expect a huge bill. To reduce the expense, gradually raise the temperature of your thermostat by at least three degrees. Doing so will save you approximately 20 percent on your summer electric bills.
2. Request a Home Energy Audit
Many power companies can come to your home and perform a home energy audit for free. Providers have to borrow power from other companies at peak usage times in order to meet demands, which cost them a lot of money. Therefore, they have just as much motivation as you do to save energy at home. The audit typically takes about an hour, and the tips and advice provided can help you save a significant amount.
3. Switch Providers
If the power industry has been deregulated in your state, you have options of where to purchase your electricity. Therefore, check out the competition. Review your bill and find out what you're paying per kilowatt-hour, and see if you can find a better rate. However, be sure to look for any extra charges or hidden fees before you make the switch.
4. Turn on Ceiling Fans
If you have ceiling fans, utilize them. They cost pennies to run, and by doing so, your air conditioning unit runs more efficiently. If you don't have them, consider installing them--it's a one-time cost that will pay for itself quickly. Just be sure to run your fans counter-clockwise in the summertime, as this draws cooler air upward.
5. Adjust Your Habits
Typical household duties, such as running the dishwasher or washer and dryer, can significantly heat up your home and run up your electric bill during each use. Consider doing these chores during the early morning or late evening hours to minimize the effect on your cooling bills. Furthermore, only wash full loads of laundry, and only run the dishwasher when it is entirely full. By using these appliances less, you save even more money on your monthly utility bill.
6. Open and Close Doors and Windows
Track the hourly local temperature, and determine at what time the outdoor temperature will rise above the desired temperature inside your home. Open the doors and windows early in the morning, and don't close them until the outside temperature reaches the level of your thermostat. In the evening, open your doors and windows to let in the cool night air. This lessens your reliance on air conditioning.

Final Thoughts
When it comes to saving money, hitting a financial home run is always great--just don't ignore the small ways to save. The average American household spends roughly $2,200 per year on home energy costs. So even if you only save 10 percent, you'll still have an extra $220 in your pocket at the end of the year.

You don't need to make a huge sacrifice to save money. Reducing your electric bill only requires a change in habits. By putting some or all of these ideas into place, you're likely to see your energy bills taking a smaller chunk out of your checking account each month.
Do you have any other ideas on how to save on home energy bills?

6 tips to keep your family from busting your budget Read more: http://www.creditcards.com/credit-card-news/six-tips-budget-busting-money-family-members-1267.php#ixzz222TTfiTE Compare credit cards here - CreditCards.com

We all have bad influences in our lives when it comes to spending and debt, but it can be especially tough to stick to your financial goals when the pressure comes from your family.

Whether it's your brother constantly asking you to go in on expensive gifts, or your daughter pushing you to spend money on something you can't afford because "you deserve it," it's easy to fall off the financial wagon when the people who are supposed to love you the most are the ones pushing you to make poor choices.
Holly Johnson of Indianapolis knows firsthand what it's like to be a misfit in a family of spenders. Johnson, 32, says she and her husband make a modest living and are extremely frugal, but they like to splurge on the things they really enjoy, such as vacations.

6 tips to keep your family from busting your budget "When we go somewhere, we like to go somewhere awesome," she says. "That makes it tough because our family will say, 'How come you don't have money to go out to dinner, but you can go on vacation so often?' They don't understand that if we did all the stuff they asked us to do all the time, we wouldn't have money to spend on vacation. That creates some tension."

Brad Klontz, a financial psychologist, says it's natural to be uncomfortable when you spend time with people who have a lot more or a lot less money than you, or who simply who have different spending philosophies. The discomfort is heightened when the differences are within your own family, he says.
"It all comes down to the animal instinct of wanting to stay with the herd," Klontz says. "When you spend time with people who are out of your financial comfort zone, your brain gets the message that you don't belong to the group, and a lot of psychological and social forces do their best to bring you back to that comfort zone. That's why wealthy people go home to their middle-class families and pretend to poor."
It's also why even the most frugal savers find themselves spending more than they mean to when they're with their free-spending families.

The good news is, with courage and a little foresight, you can stick to your budget even if you're surrounded by relatives who just don't get it, experts say. Start with these six strategies:
  1. Speak up. Tell your family about your desire to be more frugal so they'll be less likely to pressure you into unwanted spending or tease you about your choices. "It's best to have the conversation when things are going well, not as a response to some kind of financial request," says Klontz, co-author of "Mind Over Money: Overcoming the Money Disorders that Threaten Our Financial Health." "If there's something they do regularly that is undermining your good habits, be specific about what it is and ask them to change." As part of the conversation, explain your financial goals, whether it's to pay off debt, buy a house or retire early.
  2. Suggest lower-cost alternatives. Saying "no" is less awkward if you're prepared with a counterproposal, says Amanda Clayman, a financial therapist in New York City. If your father wants to celebrate a birthday in a pricey restaurant, for instance, invite the family to your house for a potluck instead. Instead of a high-spending adventure, suggest heading to a YMCA camp or state park. Also, remember that sometimes it's OK if not everyone contributes equally to everything. In other words, you can stay in a less expensive hotel on the family trip even though everyone else is in the nearby five-star resort, or maybe you cover the cost of the DJ at your parents' anniversary party and let your high-earning sibling pay for the food.
  3. When you spend time with people who are out of your financial comfort zone, your brain gets the message that you don't belong to the group, and a lot of psychological and social forces do their best to bring you back to that comfort zone.
    -- Brad Klonz
    Financial psychologist
  4. Line up an ally in advance. Before a situation in which you'll be under pressure to spend, choose one or two relatives who are likely to be sympathetic and call them, says Mary Gresham, a clinical and financial psychologist in Atlanta. Share your financial limitations and ask them to support you. "It's a lot easier to talk to just one or two people as opposed to telling 10 people at once," Gresham says.  Later, those people can step in on your behalf if everyone is pushing you to order dinner, not just an appetizer, or when the group is mocking your old, paid-off car.
  5. Make it tough to overspend. If you find yourself regularly overspending in certain situations, like every time you go shopping with your sister-in-law, figure out a concrete way to remind yourself of your financial goals during your time with her. Maybe it's sticking the credit card bill you're trying to pay off in your purse, or writing your budget for the day on a sticky note attached to your credit card. Another option: Leave the credit card at home and just bring cash.
  6. Find some support. If everyone in your family is out of your financial comfort zone, seek out a few like-minded friends who can encourage you in your money-related goals, Gresham says. You can hold each other accountable, share your triumphs and setbacks and ask for their advice on family issues.
  7. Don't commit. Never agree on the spot to buy or participate in something that costs a lot of money. "Saying, 'I need to think about it' lets you press pause and gets you out of an uncomfortable situation," Clayton says. Then you can regroup and figure out how to say "no" gracefully. ("I'm sorry, that doesn't fit into our budget" works well.)
Though Johnson's family now understands her frugal lifestyle, there are still some awkward moments. "My sister used to love to have a big birthday party every year at an expensive restaurant and everybody would bring a gift," says Johnson, who blogs about saving money at clubthrifty.com. "For a long time I was resentful about it. Finally I grew up enough to just say, 'I'm sorry, I can't do it anymore.'"

The hardest part, Johnson says, is letting go of any guilt you feel about saying no. "When you're honest with your family and give them boundaries, often they do get over it," she says. "I know I will always be made fun of by my siblings for being cheap, but now I just don't care."

7 best-to-worst ways to borrow $500

Borrowing money is always a last resort, but for anyone who's been in a pinch between paychecks, sometimes it's a necessary evil. But who or where you choose to borrow from can take your predicament from a temporary dollar dilemma to a long-term financial nightmare.

We consulted financial experts to help decipher which borrowing options are most likely to set you on a course toward financial disaster. Here are their borrowing breakdowns, from least risky to last resort...

1. Credit card purchase. Putting your unexpected expense directly on your credit card is a wiser option than a cash advance . And, it can actually work to your advantage if you can pay the balance when the bill arrives, says Beverly Harzog, an independent credit card expert and consumer advocate. "If you can pay it off and you have a rewards card (or cash back or airline miles), you can get rewards on that purchase as well."

That being said, Harzog is quick to point out that any credit card purchase can be a slippery slope since you can end up carrying the debt for a long period of time if you're not diligent about paying it off quickly.
The verdict: good borrow... if you pay off the purchase right away.

2. Pawnshop loan. Believe it or not, a pawnshop loan is one of the better options to consider, says Mary Hunt, author of "7 Money Rules for Life," and founder of Debt-Proof Living . "A lot of people think of them as back alley, but that's really not how they work anymore," she says. In fact, thanks to shows like "Pawn Stars," they've become more mainstream than ever.

The way it works is you bring in an item as collateral for the cash they give you. The pawnshop must keep your item for an agreed upon amount of time (for instance, 90 days). If you come back and pay back the loan before the term is up, you get your item back. If you don't, your item is sold


The perks: "It's clean. There are usually no credit checks. And you have the option to not pay it back legally," says Hunt. In terms of risk, the only thing to consider is how much sentimental value the item has, just in case you're unable to pay for its safe return.

The verdict: good borrow... if you're not using your family heirlooms or wedding rings as collateral.


3. Borrow from a relative. If you're lucky enough to have a well-off relative who's happy to help you out of a jam, good for you. But even so, when asking for a loan, sit down together and put the terms in writing, says Hunt. "Have a plan in mind before you plan to borrow and offer some collateral for that loan. It will put you in a much better light if you say, 'I want you to hold my iPhone until I pay you back,'" she says.
Other terms you need to agree upon include the payment schedule, how much interest you'll pay (Hunt says 5 percent is a fair amount) and what happens if you miss payments.

There are even online services like LoanBack.com and LawDepot.com that allow you to customize a family loan contract for a small fee. The extra effort may help avoid a family feud over a few hundred bucks.
The verdict: good borrow... if you treat your family loan like a business transaction.
4. Peer-to-peer lending. Fairly new to the lending arena is peer-to-peer lending. Sort of like the eBay of small loans, a group of lenders pool available funds and then decide which borrowers they'd like to work with. The SEC is involved, so it's regulated, but it can be a less strenuous qualifying process than a traditional bank loan.

"Lending clubs turn down a high majority of borrowers, so it's not a slam dunk. If you have excellent credit and aren't in debt up to your eyeballs, though, you can get a good interest rate," says Harzog.
The verdict: good borrow... if you have good credit and some time to spare until you qualify.

5. Credit card cash advance. Most credit card companies offer customers the option to get cash via an ATM or bank withdrawal (sometimes it comes in the form of a check), but that convenience comes with a price. "First of all, you'll be charged an initial fee of 3 percent to 5 percent," explains Hunt. "And that cash amount immediately starts incurring interest." In other words, you don't have any grace period at all. Perhaps the worst part, however, is that a cash advance is subject to a much higher interest rate than you'd have on a regular credit card purchase. "It can be 10 percent to 15 percent higher," says Hunt.

The verdict: bad borrow

6. Bank advance direct deposit loan. An advance on your direct-deposited salary is basically a  bank-sanctioned payday loan . You may feel like it's a legitimate option because your bank is offering cash upfront for the promise of repayment when you receive your paycheck, but the problem is the temporary patch can potentially lead to bigger debts down the line, says Mitchell D. Weiss, a professor of finance at the University of Hartford and author of, "Life Happens: A Practical Guide to Personal Finance from College to Career." "You intend for it to be a one shot deal, but people who can least afford it get caught in this debt trap," says Weiss.

"You're sacrificing the future stream of payments for cash upfront today," explains Weiss. The problem is you won't get all of next week's paycheck, and then what do you do for an encore if you come up short again?
The verdict: bad borrow

7. Payday loan. Similar to a bank direct deposit advance, the way a payday loan usually works is you write a postdated check for the amount you are borrowing with a fee and interest tacked on, and the establishment gives you the cash on the spot. Another alternative is to allow the payday lender to electronically transfer the amount from your bank account to theirs come payday. In other words, you're granting them access to your bank account, which is always a shady prospect.

"It is like the ultimate snowball that turns into a huge avalanche. Borrow $100 to start, and it will turn into thousands," Hunt says. The reason? "They make it sound so easy." Payday loan providers are often reassuring, says Hunt, telling you not to worry if you need to roll your loan over for another pay period or until you're back on your feet. Of course, that means the fees will keep adding on, too. "They take full advantage of people who don't understand the system," she says.

The verdict: bad borrow

The key to wise borrowing -- no matter which route you take -- is to first try to avoid it and if you can't, have a well-thought out plan in place for paying back what you owe. Try going with the option that will cost you the least in the long run, and when it's behind you, start socking away some money toward an emergency fund so you won't have to go borrow in the future.

Frugal Habits of the Super Rich

Becoming wealthy and staying that way takes a certain level of discipline. Sure, an occasional splurge won't put you in the poor house, but frequent frivolous spending on things that aren't necessities can quickly put a serious dent in your wallet. The frugal habits necessary to achieve financial success and maintain it are often lessons learned early on.

In this article, meet seven entrepreneurs, business leaders and famous faces, including Google's David Cheriton, Berkshire Hathaway's Warren Buffett and Hollywood's Hilary Swank, whose modest living -- from clipping coupons to clipping their own hair -- has helped them amass and/or maintain vast fortunes.

[More from Kiplinger: How to Be a Millionaire by Age 25]

As Knight Kiplinger wrote in his classic column The Invisible Rich, "the biggest barrier to becoming rich is living like you're rich before you are."

Learn more about the cost-cutting moves that help make these successful millionaires and billionaires who they are.

David Cheriton

 
Photo: Martin Dee, The Univ. of British ColumbiaAge: 61

Estimated net worth: $1.3 billion

How he struck it rich: An early private investor in Google

Frugal habit: When having dinner at a nice restaurant, he saves half of his meal for the next day.

In addition to knowing how to make a good meal last, the Stanford University professor -- who played an integral role in the founding of Google -- has also been cutting his own hair for the past 15 years and drives a 1986 Volkswagen Vanagon.

Cheriton's been pinching pennies his whole life. "Many of my frugal habits come from my parents, who grew up during the Depression and passed along the same careful habits," he told Kiplinger. "My rule is never spend in a way that I can't explain to my parents without apology or embarrassment. It's kind of a personal version of 'never do anything you don't want to see presented on 60 Minutes.'"

Hilary Swank

 
Photo: Getty ImagesAge: 37

Estimated net worth: $40 million

How she struck it rich: An award-winning actress

Frugal habit: Clips coupons

Swank comes from humble beginnings, having grown up in a trailer park in Bellingham, Wash. In 1990, at age 16, she moved with her mother to Los Angeles to pursue her acting career. During that time, they lived out of a car to help make ends meet. Her Oscar-winning performance in the 1999 film Boys Don't Cry is what took Swank from an actress on the rise to a star who garners top dollar for movie roles.

[More from Kiplinger: 25 Ways You Waste Your Money]

Despite her success, Swank hasn't fallen victim to the trappings of sudden wealth. She still has many frugal habits engrained since childhood, including buying toothpaste and toilet paper in bulk. While making an appearance on the daytime talk show Live! With Regis & Kelly in 2010, the actress admitted that she still clips coupons. During that interview Swank said, "When you open up the paper and you see those coupons, it looks like dollar bills staring you in the face. . . . It’s how I grew up. Why not?"

T. Boone Pickens

 
Courtesy of T. Boone PickensAge: 84

Estimated net worth: $1.4 billion

How he struck it rich: Oil!

Frugal habit: Buys new business clothes once every five years

Pickens has 55 years’ worth of professional achievements, including growing his first company, Mesa Petroleum, into a $2 billion business and an infamous 1985 Time magazine cover. But these days, Pickens is almost as well known for his low-budget lifestyle as he is for his high-profile financial success. "People are always surprised that I don't have a closet full of suits," Pickens told Kiplinger. "I buy three suits every five or so years and only own ten total. That's all I need."

[Related: 4 Things You Need to Know About Money]

Pickens credits his grandmother with having taught him money lessons that still resonate: "She'd always tell me, 'Don't ever go any place with money in your pocket looking for something to buy.'" Even today, Pickens says that whenever he visits a store he first makes a list of what he needs, and he carries only the exact amount of money he plans to spend.

Michelle Obama

Photo: APAge: 48

Estimated net worth: The Obamas' assets are valued between $2.6 and $8.3 million.

How she struck it rich: Combined wealth with her husband and author, President Barack Obama

Frugal habit: Shops at Target

The First Lady is thrifty, too. She was spotted shopping at a Target store in the Washington, D.C., area last summer. What did she buy? It's reported that Mrs. Obama picked up dog food and toys for the first family's pet, Bo. In addition to finding ways to save on everyday household items, the First Lady is also known to cut costs when it comes to fashion. Despite having access to practically any high-end designer line she wants, Mrs. Obama sometimes chooses to wear clothing from discount stores, such as H&M. She appeared on the Today show last year wearing a $35 dress from the retailer.

[More from Kiplinger: 12 Things You Should Buy Used]

Warren Buffett

 
Photo: APAge: 81

Estimated net worth: $44 billion

How he struck it rich: Founded Berkshire Hathaway, the noted investment holding company

Frugal habit: Has lived in the same modest home for 54 years.

Buffett could easily afford to live in a mansion much bigger than his 6,000-square-foot, five-bedroom stucco house in Omaha, which he purchased for $31,500 back in 1958. Yet, the multi-billionaire prefers the simple life in small-town America.

In his annual letter to Berkshire Hathaway shareholders last year, Buffett discussed the housing recovery and said, "The third best investment I ever made was the purchase of my home." (The first two: wedding rings he bought for his first and second wives.) Buffett added, "For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories, with more to come." Today, the average price of a five-bedroom home for sale in Omaha is $391,983, according to Trulia.com. That's more than 12 times the amount Buffett paid.

Bethenny Frankel

 
Photo: Getty ImagesAge: 41

Estimated net worth: $100 million

How she struck it rich: Created the Skinnygirl cocktail brand

Frugal habit: Never pays retail prices for clothing or shoes and bargain hunts on eBay

Frankel doesn't take her newfound wealth (she sold Skinnygirl to Beam Global for a reported $100 million last year) for granted. Just a few years ago, the reality TV star and entrepreneur couldn't even pay her rent, as she revealed in a 2011 interview with ABC's Nightline.

[Related: Millionaires in the Making]

Her guilty pleasure is fashion, so when it comes to spending money on clothes, Frankel is adamant about not buying anything that isn’t on sale. To help avoid making impulse purchases, she shops mostly online and regularly at discount sites, such as eBay.com and net-a-porter.com.

Mitt Romney

 
Mitt with his father. (Photo: Bentley Historical Library, Univ. of Mich.)Age: 65

Estimated net worth: Ranges between $190 and $250 million

How he struck it rich: Comes from a wealthy family and co-founded the private equity firm Bain Capital

Frugal habit: Buys golf clubs at Kmart

The GOP presidential candidate has quite a few surprising, budget-conscious spending habits -- several of which were revealed in a New York Times article last year. They include using JetBlue to snag cheap airfare, tackling home renovations himself and buying his golf equipment at Kmart. You heard it right. Romney, who is worth about a quarter-billion dollars, is always on the hunt for "blue light specials." A family friend was quoted in the same article saying that one of Romney's mantras is, "Just because you can afford something doesn't mean you should buy it."

Romney promises similar frugality within the federal government if he is elected President this fall. He proposes to cap government spending at 20% of gross domestic product. That would involve spending cuts of about $500 billion per year starting in 2016.

Al Capone’s armored 1928 Cadillac with gunfight window up for auction this weekend

Ever since gangster Al Capone became a guest of the U.S. penitentiary system, artifacts of his reign over Chicago's underworld have held a special allure . This weekend, a 1929 Cadillac V-8 sedan will go on sale after finally being proven to have been Capone's personal ride -- as if the first-of-its-kind armored plating and drop rear window designed for gunfights weren't evidence enough.



Getting the records straight on a historical vehicle can be tricky business; just ask the auctioneers who thought they were selling a hearse that carried President John F. Kennedy's body but was later revealed to be a movie prop. In the case of Capone's wheels, those kinds of records never existed in the first place, because Capone was a master of hiding his assets well before Eliot Ness came knocking.

This 1928 Cadillac V-8 had all the signs of the ride a gangster would use. Its green body and black bumpers match the colors of Chicago police cars of the era, and it came with the first police-band radio put in private hands. At one point, it held some 3,000 lbs. of asbestos-wrapped steel armor plating, and the glass in the windows not designed to quick-drop for return fire is one inch thick. There's even a hidden siren.

But there were also questions about the car, which has been on display in museums for decades in Great Britain and the United States as Al Capone's rides, and the car drew a high bid of $355,000 two years ago. RM Auctions, the company selling the Cadillac this weekend in Michigan, did its own research and found a 93-year-old man who as a child helped install the armor for Capone in his father's shop. "My dad said, 'we don't do that kind of work here,'" Richard "Cappy" Capstran says. "And they (Capone's men) said 'you do now.'"
According to RM:
Capone showed up in person to settle the bill and paid Ernest Capstran double the asking price. When he walked around the car, Capone saw ten-year-old Richard and asked who he was. The elder Capstran explained his son had helped with the job and done an excellent job sanding in between layers of lacquer. For this, Richard received from Capone a $10 bill, a small fortune for a young boy. This special job was never discussed outside the family until years later.
RM's research shows the car was sold in 1932 to carnies, who thought they could charge people to view it, and when that plan fell through, it was shipped overseas. The new research also debunks one longstanding story: That the Secret Service used this car as a limousine for President Franklin D. Roosevelt immediately after Pearl Harbor in 1941 because it needed an armored car and only had one of Capone's handy. 

Roosevelt famously quipped "I hope Mr. Capone doesn't mind."

While a restoration removed most of the armor plating, the car is otherwise intact, and RM Auctions expects it to fetch between $300,000 and $500,000 this weekend.

Wall Street Week Ahead: Rolling out red carpet for central bankers

NEW YORK (Reuters) - Stocks took off at the end of the week, drawn by the allure of a helping hand from the world's two most powerful central banks. Traders are unlikely to resist those charms again next week.
The U.S. Federal Reserve and the European Central Bank both meet next week amid investor expectations of action to stimulate economic growth and, in the case of the ECB, tackle the spreading euro zone debt crisis.

The drumbeat of weak economic data and disappointing U.S. corporate profits and outlooks mean central banks can be stocks' best friends.

Equity prices tend to rise sharply in the hours before a Fed statement like the one expected on Wednesday as traders and investors jockey for position and a chance to make a profit.

Next week's calendar has a double-whammy. The Fed's monetary policy statement will come one day before an ECB meeting packed with intrigue. ECB President Mario Draghi said earlier this week the bank was ready to do whatever was necessary, within its mandate, to save the euro.

"People in this business like to get in front of big events, especially if (they) could be very, very positive for the market," said Brian Reynolds, chief market strategist at agency brokerage Rosenblatt Securities.
In that sense the strategy "is almost like a lottery ticket," he said.

But was that ticket already cashed? The S&P 500 (^GSPC) (^INX) rallied to levels not seen since May on Friday, a rally that was sparked a day earlier after Draghi stoked expectations the ECB might resume its Securities Markets Programme (SMP) and possibly adopt more aggressive quantitative easing.
Reports of meetings with the head of Germany's Bundesbank fueled a Friday rally that outpaced Thursday's gains.
Equity markets have for weeks been leaning on hoped-for stimulus from the Fed or ECB. Despite weeks of softening economic data, including a dismal payrolls report for June and a poor outlook for corporate profits, the S&P 500 has risen in seven of the past 10 weeks. It closed on Friday near a three-month high.
REMARKABLE PATTERN
At the same time that traders position themselves to benefit from the Fed's latest easy-money policy, those betting against market gains get out of the way and selling pressure recedes.

"It's very scary to short the market ahead of a Fed meeting," said Dennis Dick, a proprietary trader at Las Vegas-based Bright Trading and co-founder of Premarketinfo.com. "So you have this short-covering that drives prices up."

That helps explain the rise in stocks in the 24 hours prior to the U.S. central bank's policy decisions - a pattern that tends to hold irrespective of what the Fed actually says in its statement.

Economists at the Federal Reserve Bank of New York performed a study of the pattern.

Starting mid-afternoon the day before such decisions, stocks in the United States, Britain, Germany and other major markets begin a sharp rise and don't stop, on average, until just before the Fed unveils its policy decision at 2:15 p.m. (1815 GMT) the following day.

Since 1994 a whopping 80 percent of the premium in gains of U.S. stocks over yields on short-term government bonds has been earned in these 24-hour periods, the study found.

The pattern has grown starker as the Fed took increasingly aggressive actions to rescue the U.S. economy from recession. The two rounds of major asset purchases, known as quantitative easing, or QE1 and QE2, in recent years strongly boosted stocks.

"Perhaps this shows markets have given the Fed their seal of approval," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.

"At least from a market participant perspective, they are confident the Fed will fulfill its mandate. I try to talk to individual investors to remind them that the stock market is going to react much more quickly than the economy to what the Fed does," he said.

CENTRAL BANKS OVERSHADOW EARNINGS
The focus on central bank meetings will get in the way of a heavy week of earnings for S&P 500 companies at a time when the outlook continues to worsen.

Major companies due to report include AIG (AIG), Kellogg (NYS:K), Procter & Gamble (PG), Kraft Foods (KFT.O), Pfizer (PFE), MasterCard (MA) and General Motors (GE).

Among the 290 companies in the S&P 500 index that have reported earnings for the second quarter, about 67 percent have beaten analysts' estimates, slightly higher than the long-term average of about 62 percent.
But just 40 percent have beaten on revenues, the worst record since the first quarter of 2009.

More worrisome is the market's outlook. Third-quarter earnings are now expected to decline 0.4 percent from a year ago, compared with an expected rise of 1.4 percent last week, according to Thomson Reuters data.

Also on investors' radar next week is another legal battle in California over patents between Apple (AAPL) and South Korea's Samsung <005930.KS>. The trial's outcome could reshape the smartphone and tablet wars between the iPhone's maker and its rivals.

Sunday, July 8, 2012

Trick yourself into getting richer

The mind is a powerful tool, especially when it comes to spending and saving. Whether it's by going over your finances in a different language or putting on a smile at work, tricking yourself into thinking differently about your finances can make a huge difference. 


Weigh decisions in Espanol. In his recent book, "Thinking, Fast and Slow," Nobel Prize-winning psychologist Daniel Kahnemann explains that human brains are of two minds: the fast, intuitive decision-maker and the slower, more analytical ponderer. 

When it comes to finances, people often let their fast-twitch muscles do the deciding.

A new University of Chicago study suggests an antidote: Think through a financial situation in a non-native language, which can lead you to better considered decisions. "It makes you slow down and think it through more," says Boaz Keysar, the professor who led the research. 

No habla a foreign tongue? Keysar says that focusing on why you're making a particular decision can help you gain objectivity. 

Don't worry, be happy. A Brookings study found happier workers ended up with higher incomes.
So curb connecting to work 24/7 to spend more time with friends and family -- that's key to happiness, finds University of Pennsylvania prof Martin Seligman. 

Personalize your accounts.
People who labelled their savings accounts with specific goals put away 31% more money than those who didn't, according to ongoing research sponsored by Innovations for Poverty Action. Those results suggest that assigning meaningful names makes your goals seem tangible. So attach a moniker to your accounts, like "retirement fund" or "anniversary trip." 

Use a photo to keep you riveted. Adding a picture of what or who they were saving for (whether it's a motorbike or a child's college education) helped subjects stay committed to their savings goals, according to a recent study. 

So put a nice photo of Junior -- or Harley -- in your wallet. That way, when you're tempted to pull out a credit card for an impulse purchase, you'll have a second thought. 

Choose your friends wisely. Fight the urge to keep up with the Joneses by palling around with the right types of people. 

"If you spend time around frugal people, you are more likely to mimic their attitudes and actions toward building wealth," says Chicago financial planner Cicily Maton. 

Make friends outside the 'hood. A study last year out of the University of Southern California found that the more insular the neighborhood, the more likely an individual would copy or outdo her neighbor's car purchase. 

Spend time with the less fortunate. Researchers at the University of New South Wales, Australia, found that for every extra dollar earned by the people around you, you will put 9¢ less into savings. Another good reason to volunteer in a soup kitchen? 

Hang with the folks at the ugly house. Several studies confirm the "neighborhood effect" -- the proclivity of Americans to spend a lot of money improving their houses when others in their area are doing so.
Avoid being sucked in by asking a realtor how much that home theater will add to your property value.
Probably not so much. 

Connect to the future you
One key roadblock to retirement saving is the emotional disconnect you may feel toward the idea of your older, retired self. People are reluctant to sacrifice spending today for the sake of someone who feels like a stranger. These steps can help:
  • Visualize your older self. Young people who looked at aged images of themselves said they'd save twice as much as a control group, a recent study found. Do your own digital aging with apps like AgeMyFacePro.
  • Imagine your dream retirement. Behavioral economist Shlomo Benartzi suggests picturing exactly how your retirement would look if you saved enough. Then determine what steps you can take to make the vision play out.
  • Spend time with old folks. In a study led by NYU prof Hal Hershfield, people who were prompted to think about their grandparents were likely to have saved more than those who weren't. Bet Aunt Ida would appreciate a visit anyway.
See what your nest egg buys you. Among investors who got projections on how much income their savings would yield in retirement, those who subsequently decided to change their contributions increased their savings by $800 a year, according to a study from the Financial Literacy Center. 

See if the exercise will be a wake-up call for you: Use a retirement-income calculator (find one at cnnmoney.com or troweprice.com) to convert your current 401(k) balance to future income. 

Money magazine readers weigh in: Focus on hard numbers, not feelings
"Do the math before making any financial decision. How much money does a company have to make to justify a P/E of 50? How much does a house have to appreciate for buying, rather than renting, to make sense?" -- John Quinn, Queens, N.Y. 

Play on your guilt. When you set up automatic transfers to help you save more, a slight tweak can help you fight urges that might have you spending the money before it gets moved.

Instead of transferring the money from a checking to a savings account, split your direct deposit between the two, putting anything beyond fixed expenses in savings right away, suggests Austin financial adviser Tony Aguilar. 

"The guilty feeling of transferring money out of a savings account will prevent you from moving it to checking as readily." 

Set some ground rules. Studies analyzing stock traders' reactions to viewing their results online have shown that strong emotional reactions tend to lead to poorer performance. So create an investing policy statement that clearly lays out the conditions under which you will sell. 

"If you actually write down a plan to limit your allocation shifts to no more than 10% in a down market, you will be less likely to panic and sell everything," says Santa Clara University finance professor Meir Statman, author of "What Investors Really Want." 

Give yourself room to play. You know it's prudent to invest mainly in funds but can't resist picking up a few shares when you read about a company with a hot product and seemingly stellar prospects or are convinced a particular industry is about to take off. Then, give in. Yep, give in -- but just a little. 

Laura Thurow, director of private wealth management research at R.W. Baird, suggests carving off 10% or so of your portfolio to invest on hunches and urges. "You're giving yourself room to react without completely undermining your long-term strategy," says Thurow.

J Holdings, LLC

J-Holdings, LLC--is committed to improving the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships. In our associates we value teamwork, integrity and positive energy. Our culture is defined by a clear vision, mission, pace and values.

J-Holdings Corporation operates through its subsidiaries, including  Palace Music group, LLC and Palace Music Publishing, Co. The company will continue to market products under brands held by both companies.

Invest like the opposite sex

Men have a lot to learn about building wealth from women -- and vice versa. 

MEN: INVEST MORE LIKE A LADY
Many studies during the past dozen or so years have suggested that women investors have better results than men, largely because their lack of confidence about their financial prowess stops them from making foolish mistakes. 
 
The consensus: Women's portfolios generally beat men's by about one percentage point a year on a risk-adjusted basis. 

Big deal, you say? Well, yes. On an account with $250,000 in assets and contributions of $10,000 a year, that extra point would translate to about $215,000 in additional profits over 20 years, if you average 7% a year on the portfolio rather than 6%. 

Ask someone for directions. Nearly half of the men in a survey this year by BMO Financial Group said they didn't need help planning for retirement, vs. a third of the women. 

Yet advice seekers tend to end up with more dough than those who go it alone.

Stay in the game. Vanguard reports that men were more prone than women to dump stocks in the 2008 market crash -- making it likely they missed the subsequent rally. 

Women often wait a few days before executing a big move. Impose your own cooling-off period.
Know what you don't know. Over-confidence is the curse of male investors, a 2011 study by Barclays Wealth found. Men trade more often, and act on tips, because they trust their instincts and ability to spot opportunities. Women are more apt to do research before they act. 

WOMEN: GO FOR THE GUSTO
Compared with men, women tend to have slightly higher allocations to bonds than stocks. Yet because they typically live longer, they need to tilt more toward growth, says financial planner Eleanor Blayney. 

Don't settle for less. Women negotiate salaries far less often than men, and when they do, they ask for -- and get -- less, reports Carnegie Mellon professor Linda Babcock. Cost over a career: about $500,000.
Asking outright for a raise, though, doesn't work well for women, a Harvard study found. Instead, use a more nuanced approach, framing the request in terms of how much you enjoy your job. 

Do the math: The percentage of women who have estimated their retirement expenses is 44%, vs. 58% of men. 

Women are also less likely to calculate how much income their savings will generate, according to the MetLife Mature Market Institute. 

If you don't know, you can't plan. T. Rowe Price's retirement calculator can help. 

COUPLES: DRILL DOWN FOR FACTS
Financial misperceptions abound among married folks, studies show. Husbands and wives disagree about who earns how much, what debt they have, and who manages the family's money. 

To get the truth, which is essential to achieving goals, you and your spouse should use a money management app like Personal Capital.

Avoid common investing mistakes

(MONEY Magazine) -- Instead of going with the pack or panicking at every news headline, think before you sell (or buy) and you'll likely reap much richer rewards.

Keep your emotions in check. A recent report from Barclays Wealth identified four of the most common mistakes people make: 

Focusing on single investments rather than the big picture. Consequence: not being appropriately diversified 

Concentrating on a short-term time horizon. Consequence: mistiming the market
Taking more risks when comfortable and less risks when not. Consequence: buying high, selling low 

Taking actions in hopes of gaining control. Consequence: high fees from trading too frequently 

Don't flee with the crowd. In the past year nervous investors have pulled $170 billion out of stock funds, while pouring money into bonds. But over all the 20-year rolling periods since 1926, a 50/50 stock-bond portfolio -- what conservative target-date funds suggest for near-retirees -- delivered annualized returns of 8.7%, vs. 5.5% for a 100% long-term government bond portfolio. 

Avoid jumping in and out. Buying and selling on the news is a sure path to sub-par returns. Market gains have tended to come in short, sharp spurts. So by the time you realize an advance is under way, the best of it is over. 

Need proof? Let's say you started out in 1996 with a $10,000 investment in an S&P 500 index fund. If you left the money in the market, you'd have had $22,170 at the end of 2011, based on Allianz returns data.
If you'd missed the 10 best trading days, you'd have $11,040. If you missed the 30 best trading days, you'd only be left with $4,550. Better to stick it out in the market. (Of course, if you missed the worst days you'd do pretty well too -- but to time those, you'd have to be psychic.) 

Ratchet down your ego. To avoid the costs of being cocky, financial planner Carl Richards, author of "The Behavior Gap," suggests second-guessing yourself. Ask: If I do this and am right, what impact will it have? If I'm wrong? Have I been wrong before? 

Skip the flavor of the month. Last August, when it felt as if the sky was falling after the debt-ceiling debacle and the realization that Europe's crisis wouldn't be resolved quickly, 34% of Americans told Gallup that gold was the best long-term investment. Stocks got just 17% of votes. Back then, gold was on a tear and equities were tumbling. 

Since then, gold prices are down 10%, while the S&P 500 is up 10%. Longer term, gold's performance is anything but shiny, while stocks have delivered annualized gains of 9.8%. So close the browser and remind yourself of your long-term plan. 

Don't be so quick to erase the mortgage. While paying off your credit card ASAP is Personal Finance 101, it's not always better to pay off your home loan faster than needed. 

Palace Music Group, LLC
"Between low rates and deductibility, there are better things to do with your 'extra' money," says T. Rowe Price planner Stuart Ritter. 

If you put an added $100 a month toward a $100,000, 30-year mortgage at 5%, you'd pay the loan off in 21 years. But invest that $100 a month for 21 years with an annual return of 7%, and you'd have $57,000 enough to pay off the remaining $45,000 loan balance, with a lot left over.

Make money like a rich person


Six of 10 multimillionaires say "taking some risk" was key to building their wealth, reports Spectrem, a wealth research firm.

One high-risk investment with potentially big gains, says planner Chris Cordaro: so-called frontier markets, like Vietnam, Sri Lanka, and Kazakhstan. "They have the valuations and growth potential that emerging markets used to," says Cordaro.

To gain entry, go with an ETF like Guggenheim Frontier Markets (FRN) with big bets on Chile, Egypt, and Colombia and smaller stakes in places like Lebanon and Kazakhstan where it's difficult for Americans to invest. Plus, it's cheap, charging just 0.7% of assets.

7 stocks to rev up your portfolio

You may be able to give your portfolio returns a boost by investing in certain large-company stocks -- that is, those that are selling at a discount or those that are expected to increase their earnings at a decent clip.

In general, value investing (buying beaten-down stocks that are poised to rebound) tends to outperform growth investing (buying firms with rapidly increasing earnings).

From 1928 to 2011, as a group, U.S. large value stocks delivered 10.8% average annual returns, vs. 8.7% for their growth counterparts. But this strategy requires guts and patience. And there are long stretches where the category lags, like the past 10 years.

So also cherry-picking the right growth stocks can add octane to your portfolio, without the risk of burnout. Here are some value picks from Wally Weitz, manager of Weitz Partners Value and some growth picks from Larry Puglia, manager of T. Rowe Price Blue Chip Growth.

Give your portfolio a major overhaul



chart-actively-managed-funds.gif

(Money magazine) -- Making real money today is a challenge, whether you're just starting out or already have a strong financial foundation.

Shop for discounts. Value investing (buying beaten-down stocks that are poised to rebound) tends to outperform growth investing (buying firms with rapidly increasing earnings). 

From 1928 to 2011, U.S. large value stocks delivered 10.8% average annual returns, vs. 8.7% for their growth counterparts. This strategy requires guts and patience. 

"You're taking the other side of trades made when people can't wait to get out," says Wally Weitz, manager of Weitz Partners Value (WPVLX).

And there are long stretches where the category lags, like the past 10 years. Feeling brave? See three stocks Weitz likes

Buffer against losses. Covered calls can boost long-term returns up to 20%, University of Utah finance professor Robert Dubil found. You sell an investor the right to buy a stock or an ETF you own should the shares rise above a set price within a set time. The cash you pocket cushions losses if the stock falls. But if it never hits the strike price, you keep the money and the shares. 

Be a cheapskate. The surest way to improve returns? Minimize investing expenses.
Index funds and ETFs are a good way to go: Vanguard Total Stock Market (VTSMX) charges just 0.17% vs. 1.4% for the typical actively managed stock fund.
Growth of $100,000 after 20 years, with 7% annual returns:
  • Fund with 1.4% expense ratio: $297,000
  • Fund with 0.17% expense ratio: $375,000
Go abroad for stocks. Despite the widespread slowdown, the economies of many countries are likely to outpace the U.S over the long run. 

"For those who can stand the bumps, emerging markets are likely to grow faster than developed markets; and Europe, now selling at a 30% discount, will eventually come back," says RegentAtlantic investment adviser Chris Cordaro. 

... And do the same for bonds. The average yield for emerging-market bond funds is 5.4%, more than triple the current yield on a 10-year Treasury note. 

Sound risky? Many emerging-market economies are in better shape than the U.S. and Europe; emerging markets also have better growth outlooks. 

Shift 5% to 10% of your bond portfolio toward them through T. Rowe Price Emerging Market Bond Fund (PREMX), which has a 6.4% current yield, suggests Jeff Layman, chief investment officer of BKD Advisers. 

A Money magazine reader weighs in: Go with what you know.
"I buy stocks only in companies whose business I can easily understand. This served me well with Electronic Arts (I'm a gamer), Crocs (wear them all the time), and several railroad companies (I think fuel prices will make rail transport more popular)." -- Kevin Banks, Dunwoody, Ga. 

Become a landlord. It's now cheaper to buy homes than rent in 98 of the top 100 metro areas, Trulia.com reports. 

"And the outlook is that we're more likely to see appreciation in the next one to five years," says Frank Nothaft of Freddie Mac. Plus, you can see returns of 5% to 10% from rent over a five- to 10-year hold, says Robert Griswold, co-author of "Real Estate Investing for Dummies" 

Favor dividend growers. Most income investors today are focused on current yield.
A better metric? Dividend growth. Companies that consistently raise payouts outperformed those that don't by 1.4 percentage points a year over the past five years, Ned Davis Research found.
Get growth through SPDR S&P Dividend ETF (SDY), which tracks stocks that hiked yields every year of the past 25. 

Get a hunk o' junk. Total bond market indexes don't include high-yield bonds, which are less sensitive to rising interest rates than other debt. 

Junk bonds are also delivering 7.8% yields right now, 6.5 percentage points higher than a 10-year Treasury.
Investment adviser Jeff Layman suggests putting 10% of your bond allocation into them via Artio Global High Income (JHYIX), which is yielding 7.5%. 

Hedge inflation. Keeping too much in cash could leave you behind consumer-price increases, particularly with interest rates on savings at 0.13%. 

I-bonds can protect you. Rates adjust twice a year based on the CPI. "And you're guaranteed to at least match inflation," says Boston University econ professor Zvi Bodie. The current rate is 2.2%. You can invest up to $10,000 a year via TreasuryDirect.gov. 

Cherry-pick big growers. The core of your portfolio should be stashed in funds that give you access to all areas of the market. 

The typical way to go for more growth is to invest in the stocks of smaller companies, but those look overpriced today, says GMO chief investment strategist Jeremy Grantham. 

Big blue chips, on other hand, look like decent values. Here are four favorites from Larry Puglia, manager of T. Rowe Price Blue Chip Growth (TRBCX), that are expected to increase their earnings at a decent clip. (See 7 stocks to rev up your portfolio)

Be passively aggressive. As the graph above shows, few actively managed funds consistently beat their benchmarks. That means for a diversified portfolio, you'd to have to pick right a bunch of times. Good luck with that. Instead, put the bulk of your money in index funds and ETFs from the MONEY 70 that cover the market, then invest the rest in managers you think have the goods.

Make your job really pay

(Money magazine) -- Earnings are a predictor of wealth, so you'll want to raise your ceiling. 

Take work on the side. Moonlighting can really pay off. Seasoned business analysts commanded $50 to $90 an hour for temp work in the first quarter of 2012, depending on the region, according to IQNavigator. 

Software developers got $78 to $107 an hour. Put in an extra 15 hours a month on freelance projects at even $55 an hour, and you'll gross nearly $10,000 more a year. 

Become a bonus baby. Two-thirds of managers and nearly half of exempt salaried employees got bonuses in 2010, with median targets of 20% and 10% of salary, respectively, reports WorldatWork. 

Getting in on the plan may be a factor of title, so nose around to see if others at your level get the bonus and what they had to do to achieve it. 

Once onboard, aim to save 70% of incentive pay, says New Jersey financial planner Saul Simon of Lincoln Financial Advisors. You'll see nice gains in net worth in just a few years. 

Throw out the first number. People who negotiate starting salaries end up with an average $5,000 more than those who don't, according to a 2010 study. 

By talking a salary up from $70,000 to $75,000, someone who got annual increases of 3% would earn $134,352 more over 20 years.