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Wednesday, November 28, 2007Other Dates

Websites/phone numbers mentioned:

AnchorFree.com - Free wifi for businesses (Editor's note: This link was down at last check)
MagicJack.com - Unlimited local and domestic long-distance calls for $40/year
Reverse.org - Consumer information on reverse mortgages

Wifi companies now offering free service for businesses

Do you get frustrated when you have to pay an outrageous price for Internet access on the road? Some spots like Panera Bread and Starbucks adopted free wifi early on, and now you'll see salespeople working there in the mornings. The initial cost of setting up free wifi may have been expensive, but now the stores are able to sell a lot more coffee, bagels and pastries to recoup their investment. But what if you're a small business and can't afford the costs of free wifi? Companies like AnchorFree.com (Editor's note: This link was down at last check) now offer ad-supported free wifi to businesses for nothing. Owners that can afford to pay up front have the option of doing so. They can then share in the Internet ad revenue down the road. Those that can't afford to pay up front still get to offer their customers free wifi as an amenity. They just don't get any share of the ad revenue. Talk about a truly free lunch! AnchorFree users see ads at the top of every page when they surf. You actually have to scroll down to get to the content. Advertisers can target people by knowing whether they're serving ads at a Panera vs. a McDonald's or a high-end hotel vs. an econobox motel. Meanwhile, Clark has hooked up his FON service, which allows travelers to tap into his Internet for free. In return, he gets to use other FON customers' Internet for nada when he travels abroad. The idea of having to pay to surf as you travel will start going away.

Fast-food price war heats up between BK and McD's

There's a price war going on in the fast food world. At the center of the storm is the humble double cheeseburger. Burger King has announced plans to slash the price of its burger -- which is 30 percent larger than the one offered at McDonald's -- from $1.99 to $1. Meanwhile, McDonald's is getting ready to dump the double cheeseburger from its dollar menu altogether. McD's franchisees are complaining that they're losing money on every double cheeseburger they serve. So it will be interesting to see what happens next between the two fast-food giants. One thing is for sure: This price war is a sign that people are cutting back on discretionary expenses such as eating out now that the economy is slowing. As for Clark, his infatuation with fast food goes back to high school. It was then that his brother came home from law school and made a label for Clark that read "carry-out kit" -- the old-fashioned name for fast-food restaurants. Clark was such a fan even back then that he hung it on the headboard of his bed!

Maximize home resale value in a tough market

In the latest session of Clarkonomics, our favorite penny-pinching guru offered tips for homeowners looking to maximize their resale value in an increasingly tough market. The latest data shows that housing sales are definitely down, but not as much as you'd think. Some 5 million people (at an annual rate) closed on homes last month across the nation. But from the headlines, you'd think that number should be zero. Prices are definitely around 5 percent down, but all real estate is local. Areas such as Tampa, Miami, San Diego and Detroit are down over 10 percent, while Las Vegas, Phoenix and Los Angeles may be down between 15 and 20 percent. Yet if you're in Atlanta, Charlotte, Dallas, Portland or Seattle, you'll find that home values are fairly stable. Also, keep in mind that widespread housing recovery probably won't come until 2009.

So what should you do if you're trying to sell your home? First off, consider owner financing if you own your home free and clear. You'll take on the role of being the bank, and you may get a better price and a quicker sell, plus a higher rate of interest back from the buyer. But beware that you have to get between 15 and 20 percent down to protect yourself. Second, be realistic about your listing price or you'll scare people away. Finally, try doing a FSBO (for sale by owner). Just know that sellers will come looking for a real steal, so be aggressive in sticking to your pricing. It might be better to hire an agent.

Thompson's flat income tax plan woos Clark

Fred Thompson is one presidential hopeful who got off to a great start and then promptly disappointed a lot of people. But there have been two instances when Thompson really impressed Clark. The first was when he laid out his proposal for overhauling Social Security. Now Thompson's flat income tax plan has interested Clark. The idea itself is not new; we briefly had a flat tax back in 1986. Back then most Americans paid a flat fee of 15 percent, while the ultra-rich paid 28 percent. It was that easy and streamlined. Thompson is proposing 10 and 25 percent, respectively. This proposed flat tax would be voluntary. If you still want to subject yourself to the arcane current tax system, you'd be welcome to do so. Or you could switch and fill out your streamlined tax return in about a minute! There wouldn't be any changes year to year in how you're taxed. Many of the world's most robust economies have simple, clean and clear tax systems. Having transparency builds creditability and confidence. As an added bonus, people don't cheat as much on their taxes when there's a flat tax system. Clark wants to stress that this is not a political show, and this should not be construed as an endorsement of Thompson. Clark just likes that Thompson had the guts to propose a flat income tax.

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This week's poll
The high cost of jet fuel has a lot of people staying at home this summer instead of traveling. Is there a "staycation" in your immediate future?
Yes, I just can't afford a plane ticket and/or hotel room right now.
No, I've saved up all year just to get away for a bit.
Maybe, I have to wait and see how my finances pan out.
see previous polls


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