Clark mentioned a while back that everyone focuses on what the Feds are doing with our taxes. But the states are actually taking more money out of your taxes, while the Feds are taking less. There have been state income taxes increases in several states and sales tax increases in almost every state that has them. But the real snake in the grass is the increase local and state governments have given to property taxes. As property values increase, these governments realize they can get more of your money. These governments are supposed to “roll back” taxes when values get higher and taxes get out of hand, but they have not been doing that. So, in some states, citizens have passed initiatives that will cap or restrict the amount of property tax elected officials can charge. Clark is very much in favor of that. But politicians don’t want to give up their power. So, in many states they have outlawed the chance for citizens to put these initiatives on the ballot. People need to realize that some of their very own elected officials are restricting their rights by doing this. You can change that if you get to know more about the politics in your area.
Instant messaging is now becoming bigger than e-mail in some circles. Kevin, one of Clark’s producers, has more than 300 people on his instant messaging “buddy lists.” But many people use “IM” as it’s known for business communications. For a while, it was a social tool for teens, and some people used it at work. But more and more adults are starting to use it. The one thing you should not do is use the IM software at work to talk about your relationships and personal issues. Your boss has the right to read anything to send electronically on work equipment. Use these new advancements in technology, but be smart about it.
Clark gets many calls from the parents of newborns, who want to know about putting aside money for their children’s’ college education. Clark asks them first how much they are saving for themselves, and often he is met with silence. He wants you to save for your children, of course. But you need to save for yourself first. New data out shows that people are saving tons through 529 plans. Also known as college savings accounts, these are tax exempt accounts that allow you to put away money for college education. Better yet, the money is spent tax free. People have spent $50 billion this year, which is 67 percent more than last year. In the next year, it will be up to $100 billion. But please max out your retirement savings account before you start one of these plans. Your retirement savings account is the most tax efficient plan out there. Secondly, if you are invested in a 529 plan, make sure it is with a legitimate, low-cost plan that does not charge commission. Clark has created a 529 Honor Roll that gives you his top choices for plans and tells you exactly how to contribute money. Coverdell accounts also allow you to put money away for your child's elementary, middle or high school education.
The University of Michigan’s Customer Service Satisfaction Survey is a respected index that the school publishes every 90 days. The most recent research focused on the computer industry, the home appliance industry and the automotive industry. On the computer front, Apple got the best rating. Compaq earned the worst score of any company. Compaq is going through a merger with HP, and that is usually a recipe for disaster, at least for a while. How about Internet services? AOL again got the worst score. You would think that such a high-priced service would at least offer help to its customers. But Clark recommends against signing up with AOL for Internet service. When it comes to major appliances, Kenmore is the best. In fact, Kenmore, Sears’ private label, got the best number of any other category in the index. The lowest household appliance brand was GE. As for carmakers, Lincoln-Mercury got top honors. Honda was next, followed by BMW and Toyota. The lowest score for customer satisfaction went to Dodge. The second worst was Ford. Just above Ford were Chevrolet and Jeep.
Clark’s wife, Lane, recently wanted to replace some of the televisions in their home with small LCD screen TVs. At the time, they were very expensive. A 20-inch LCD television was $619, for example. He asked if they could wait for a little while because within a year they would be much cheaper. But it looks like it’s going to be less than a year. Turns out, there is a massive supply of LCDs on the market, and prices are likely to fall 20 percent, according to the financial press. Samsung, the No. 1 maker of LCDs, agreed that prices are too high for the average person. So, these are going to be much more affordable come holiday season. Just make sure you look for an “ED” model, or enhanced definition. The picture will be much more crisp and clear from all angles. So, if you’re not ready to make the leap to HDTV - and most are not - this could be your answer.
Ads are everywhere these days. At the same time, a number of devices have made it easier to skip or avoid these ads and commercials. So, companies have to come up with new and innovative ways to attract your attention all the time. Some people are painting their bodies and heads with ads. Sandwich boards and costumes are also big these days for national brands. And, in San Francisco, companies are paying street musicians to play certain songs. AT&T Wireless has the musicians sing Beatles songs with lyrics they have written about AT&T. Nissan is using street poets, and Erickson is using phony tourists who ask people to take their picture with the Erickson camera phone. It’s known as “hiring the influencer.” Instead of you realizing you are being pitched on something, these people use the buzz in the air to influence you. Pay attention to people around you and the messages they are trying to send.
