You may not know it, but criminals have hijacked some college savings plans, or 529 plans. In fact, under the laws that exist today, some of the things they are doing are actually legal. In the rules that established 529 plans, there was no rule stating that companies tell you how much the plans cost to invest. So, the scum of the population decided they would take advantage of this oversight. They started using commissioned sales people to steal the money consumers have put aside in these accounts for their kids’ college. Here’s the awful punch line. The plans require sponsorship from state governments. But the governments are busy that these plans are often handed over to someone who doesn’t have much knowledge about he world of finance or time to investigate companies administering the plans. So, these dishonest characters enter the picture and dupe the state into allowing them to sell college savings plans. It all seems legitimate because people hear, “Sponsored by your state government,” and they buy in. So, how do you know if the plan you opened is legitimate or not? If you bought from a commissioned salesperson or stockbroker, the plan you have could be dirty. Buying form a commissioned sales person means someone else is handling it for you, and that is risky. The SEC is looking into these corrupt plans, and we’ll keep you posted on what they find. Clark hopes the government realizes it should start telling people how much it costs to be in one of these plans. That would be a start. In the meantime, check out Clark’s Honor Roll and 529 guide. These are legitimate plans, and you don’t have to put money in your own state’s plan. If you’re in a plan other than the ones on Clark’s Honor Roll, go to savingforcollege.com and find out what you are paying. That site details the expenses of each plan. It’s a perversion of the system that these crooks are taking your money and using it to line someone else’s pockets.
For once, Clark is going to say something nice about AOL. Despite all of its faults, the company has come up with a very sophisticated, yet easy-to-use electronic bill paying system. This is the nation’s most advanced electronic bill pay system, and it could cause you to jump on board if you haven’t already. With AOL’s system, computers speak directly to each other and bills are paid immediately from computer to computer. You will no longer have to pay a week or a few days ahead of time. Instead, you can pay the day it’s due and the company receives the money that second. It’s possible because AOL has set up an online relationship with hundreds of companies, and the money is sent via computer once you enter that company as one of your payees. Clark gives AOL credit because this kind of system will convince customers to stay onboard with the overpriced ISP. AOL customers get the service for free. If you are not an AOL customer, but you use a credit card or debit card to set up the service, you also get the service for free. But if you choose to pay by any other method, you will pay $5 a month, or $60 a year. Clark still recommends that people fire AOL as an ISP. What they charge is simply too much. But if you’re thinking of using electronic bill pay, you will be much better off. Paying electronically is so much more convenient and secure because you have a documented trail of your payment history.
Real estate is something people get involved in because it represents both a place to live and a smart investment. There are trends in real estate that Americans must keep up with because they can either help or harm us. For years, Americans wanted a house that sat back from the street, looked out to a back yard and had an inward feeling. Today, only a third of us want that kind of house. People are not interested in a “removed” house. They want something closer to the street that looks forward not back. You’ll see many with a porch on the front of the house to facilitate engaging with neighbors. And, in many areas, sidewalks are popping up in front of homes. People want to have a home but also feel part of a community. It’s called “hiving” in the real estate business. People used to want to “cocoon” in their homes, but not anymore. So, when you think about what kind of home will get you the best value, keep in mind what people want these days. It will put you in a better position when it’s time to sell. Plus, you may enjoy your house or neighborhood more if you had an opportunity to connect with neighbors.
Clark recently saw a statistic that three-quarters of Americans now have access to the Internet at home. It wasn’t that long ago that it was just over 50 percent, and many thought it wouldn’t rise much above that. But it has. Something else that has spread like wildfire is the use of cell phones, especially by children. Of kids 11 to 17, almost 60 percent have a cell phone. Almost a third of kids who are 8 to 10 years old have a cell phone. Hard to believe isn’t it? We are becoming more like Scandinavia, where kids carry a cell phone to nursery school. The kids can only call Mom, Dad, maybe grandparents and a few select others. They see a picture of the person on the phone and call. And Clark doesn’t think youngsters having cell phones is a bad idea. Parents simply need to be careful and establish rules regarding the use of the phone. Allowing your teenagers to share your plan, and therefore share your minutes, is not smart. These parents get hit with huge bills if they don’t explain how the phone is used. Kids also love using the text messaging function on phones – also known as SMS or Short Message Systems. These kids often don’t realize that parents are billed every time a text message is sent or received. So, consider using metered SMS capability, international block and other prohibitions. Clark is also a big fan of pre-paid cell phones. Your kids get their own phone, but they only get a certain number of minutes every month. After that, no more! Virgin Mobile has very affordable plans and the company is branching out across the country. Boost Mobile is the other company offering pre-paid plans, but they are only in the West.
With the tough environment for jobs right now, there has been a big move in magazines and newspapers to talk about where the jobs are. This includes where geographically and in what fields. In addition, statistics are out about the fact that the number of people being laid off is lower than it has been in three years. In talking with people who have lost jobs, Clark has often heard them ask where to find opportunities. According to the Wall Street Journal, Internet employers are hiring again as is Wall Street. So people in tech jobs and in investing may have opportunity again. The health care sector also continues to be an area of growth. If you are looking for a career change, nurses are in very high demand. There is a gaping hole in our health care system that you can help fill while making a nice living. Real estate and education are also hot career fields with all kinds of positions available. Certain areas of the country are also hopping with jobs. Southwest Florida, specifically Lee County and Collier County, is one of them. Northern Virginia and Las Vegas are also magnets for employment. Notice a trend? Except for Virginia, there is a steady migration to locations with warm climates. According to Business Week, construction, restaurant jobs and temporary help firms are also hot with jobs. Speaking of job generators, eBay is an entity all its own. Half a million Americans earn their living selling goods on eBay. That’s huge. New training, new skills and some gumption to try something new can all lead to great opportunities.
If you’ve bought a used car recently, you may have taken Clark’s advice and bought a Carfax report. These are background checks on cars that you buy online at carfax.com. It’s basically a title history report, and you get a 30-day pass to run VIN numbers on cars you’re interested in buying. The report tells you if the car has been totaled in an accident and rebuilt, or “salvage titled.” If the car is in the state’s lemon law buy back program, or has received flood damage, hail damage and fire damage, that information is also included. And, there are businesses that buy these “salvage title” cars and sell them to the public as a salvaged car. Most of these businesses are legitimate. But others are not. They will go to states that don’t have good vehicle registration laws and they re-register the car with a clean title. They then sell it to people as if it is new. It’s a process known as “title washing.” In addition, CarFax has a new policy stating that it will buy back a car in the first year if company representatives fail to pick up on any key problems that have happened with cars. It’s a new layer of protection from CarFax, which is great. But it’s not enough. When you buy a used car, you need a checklist of things to do, right? Your first step is to check the April issue of Consumer Reports “Used Car Buying Guide.” This guide tells you which cars you should avoid and which ones are the . You can then go to the comparison sites, kbb.com, Edmunds.com and nada.com. In general, Clark likes you to run Carfax reports, so do that next. If you’re a AAA member, you get a discount on Carfax. The next step is to consider “manufacturer-certified” used cars. Finally, when you’re interested in a car, have it inspected by an ASE-certified mechanic. These steps won’t eliminate 100% of your problems, but they will help you get a much better buy.
