Carnival of Wealth, Nevada Day Edition

This sign doesn’t even crack the state’s top 5 for longest distance to gas

 

It’s time for another edition of the only personal finance blog carnival whose hosts actually put some effort into it, the Carnival of Wealth. A weekly roundup of the least average blog posts in existence. Sit back and read. If you want to contribute a post of your own, all you have to do is have an established blog and enter here. Deadline is midnight Saturday. You can submit again once Monday’s carnival goes live. Submit twice or more and we reject all your submissions. Send something recent, like written in the last couple of weeks. Keep it on topic. And for the love of God, spell properly.

Today is the 137th anniversary of CYC’s home state’s admission to the Union. If the only parts of Nevada you’ve seen are Vegas and/or Reno/Tahoe, you’re missing nothing, and we mean that in a good way. Outside the only two metropolitan areas, the remaining 99% of the state averages fewer than 5 people per square mile. The whole world should be that sparsely populated.

Aside from the stuff you already know about, Nevada has no state income tax and liberal interpretations of freedom. The legislature only meets every other year, giving legislators only half as many chances to screw things up. Also, Nevada is in a 44-way tie for ugliest state flag. The only good ones are Alaska, Texas, Arizona, New Mexico, Colorado and maybe Hawai’i. Okay, on with the carnival:

He’s totally blandishing us, but who cares? PKamp3 at DQYDJ.net (it stands for “Don’t Quit Your Day Job”) bats leadoff this week. He read our recent post about students who borrow money they’ll never have the capacity for paying back, and wonders whether lenders should charge higher rates to students who choose less lucrative fields of study.

We hate to be the ones to tell you this, but a savings account is not an investment. Sooner or later you’re going to have to put your money into something that grows. If you’re young and have no clue where to start, Corey at 20s Finances has some sensible ideas.

Q: How much can I contribute to my 401(k) each year?
A: As much as I want.

Wrong. Unless what you want is to be probed and keel-hauled by the IRS. There are limits to everything in this life, except Sprint’s data plan and Ryan Seacrest’s vapidity. Roger White at 401(k) Calculator explains how much you can contribute this year and next while simultaneously keeping the taxman satisfied.

Speaking of the IRS, about the only time they’ll take “Later” for an answer is if it involves you giving them money. Mark Roberts at Tax Brackets explains how to avoid fines and imprisonment if you were smart enough to wait until the last second to pay your taxes, but dumb enough not to have any money on hand to do so.

Practical advice from Mike Holman at Money Smarts Blog this week. He argues that when you’re traveling abroad, Skype won’t necessarily save you money over going with your mobile provider’s long-distance plan. Mike got bitten with data roaming charges that tore at his inherently thrifty Canadian soul.*

Nathan Richardson at Complex Search writes about credit scores. We get the feeling Nathan was the kind of kid who had Monday morning’s homework done on Friday night. Look at the colorful charts and graphics in this post. A+. Gold star.

From Joe Morgan at Simple Debt Free Finance, a call to ignore annual percentage rate in favor of annual percentage yield. Oh, stop whining. Yes, there’s math in his post but nothing more complicated than exponentiation.

Suba at Wealth Informatics went slightly crazy but nevertheless entertaining this week, co-opting a nursery rhyme and turning it into a haunting parable about investing. See what adventures await in “the charming little town of Pigglesworth.” (Which is not, as it turns out, where that corpulent little Dixie Chick lives.)

Plan on traveling to the Central African Republic or Bhutan armed with nothing but your passport and your Discover card? Good luck with that. Marjorie Rochon at Card Hub explains what plastic you need to have handy before traveling internationally.

Odysseas Papadimitriou returns after his quick rapier job on usury laws last week. This week, Wallet Blog‘s resident wag follows it up by arguing that penalty rates for delinquent credit card holders should be tied to prime rate by law. (Ed. note- Pay your bills by the due date.)

Alright, this next submission deserves so much editorial comment that we should probably just stop right here and make a full-on blog post about it, but what the hey.

Newcomer Ben Demeter at Credit Card Assist thinks that credit card rewards steal from the poor and give to the rich. No offense, but newcomer Ben Demeter is out of his mind. This meandering post argues that rich cardholders benefit more from rewards programs than poor people do, which barely counts as an observation. He even makes this exceedingly tenuous logical reacharound:

A. Most retailers charge the same whether you pay with cash or a card.
B. Card issuers charge retailers a percentage point or two for every card transaction.
Therefore, C. Cash customers should pay slightly less.

Theoretically, there’s some truth in that. And in practice, some (but hardly all) retailers give cash discounts. It’d be an accounting nightmare for the rest. Having established his point, he continues:

D. Poor people who can’t get cards have to pay cash.
Therefore, E. The “rich” people who pay with cards are soaking the poor people who don’t.

The loaded and leading questions in this post are laughable:

Should we be rethinking our use of rewards cards? Is there a way to modify or improve rewards cards so that everyone benefits, including the poor?  Or should we boycott rewards cards entirely because of their undue burden on the poor?

He phrased them as questions, so he must want answers. 1. No. 2. No, what would the point be? and 3. Yeah, good luck with that.

As we mention time and again in the book Control Your Cash: Making Money Make Sense, poor people are poor largely because they choose to be. If you think that’s an unfair and inaccurate generalization, ask the next person you see buying cigarettes and lottery tickets at the 7-Eleven to show you his bank statements.

Will from Former Banker is another newcomer this week; not just to the carnival, but to blogging itself. He’s shared with us his first-ever post (excluding his introductory one.) It’s a review of Gregory Zuckerman’s The Greatest Trade Ever, the story of John Paulson’s successful anticipation of the subprime housing collapse.

We hope Nerd Wallet buys Capital One something nice and shiny for its birthday this year. Or vice versa. This week the former’s mash note to the latter consists of Anisha talking about Capital One’s new Spark line of cards.

Another home run from Mike Piper. This week, The Oblivious Investor gives us Part II of his breakdown of index funds vs. exchange-traded funds.

Jeremy Vohwinkle at Generation X Finance says that if you have to ask if you can afford something, you can’t. We’re assuming he doesn’t mean that literally (your humble blogger bought an iPhone 4S only after running the numbers), but he does make a point: at the very least, do a little internal cost-benefit analysis before plunking down your credit card. Calculate, don’t justify.

There’s nothing like the obfuscating and capricious IRS rules to keep you focused. Madison at My Dollar Plan gives the lowdown on the new contribution limits for IRA holders, 401(k) holders, and even the very few of you who have SEP-IRAs and SIMPLE IRAs.

If you listen to Howard Stern, you’ve heard those suspicious commercials for Beezid in which an overworked voice actress says you can buy an iPad for 49¢. Is Beezid a scam? Uh…no! And neither is Social Security, for that matter. (Of course Beezid’s a scam. Well, unless you think you don’t mind paying for unsuccessful bids. Emily Guy Birken at PT Money explains how penny auction sites work.)

Okay, this is different. Kyle Taylor at The Penny Hoarder explains that you can purchase copyright shares of songs that someone else wrote. If someone who wrote a profitable song needs quick cash, he can sell his publishing rights (or part of the rights) to the highest bidder. He gets your lump sum, you get the royalties. So if Dolly Parton ever decides to unload her rights to “I Will Always Love You”, you could conceivably buy a piece of it and get royalties until the copyright expires (which, according to law, is 95 years after she does.) But Dolly didn’t become a mogul by selling her rights to people like you.  So start off small and put in a bid for something like GG Allin’s “Live Fast Die Fast”.

Alright, we’re done. Leave a comment. See you next Monday.

*We don’t know about Mike, but as a rule they’re the worst non-European tippers on the planet.

Carnival of Wealth, Fall into Fall Edition

UPDATE: Submission form link for next week’s carnival fixed. Sorry about that.

There’s nothing more depressing than people who talk about “the end of summer” when it’s not even mid-August. Do you suck the joy out of everything else too, or just the best season of the year? We’ve still got a few days remaining before that infernal equinox. Enjoy it while you can.

That being said, this is our final CoW of the summer. Not the final CoW of the summer, just ours. Next Monday we’ll be hosting the itinerant Totally Money Blog Carnival, which means the Carnival of Wealth will stop by Financial Uproar for the briefest of respites. You’ll be in for a treat. Nelson, the guy behind Financial Uproar, has almost as little patience for stupidity as we do. Plus he’s funny, and can spell and punctuate.

Original, non-stolen artwork ©Financial Uproar 2011, all rights reserved

Next week’s CoW will work the same way it always does: just submit by midnight Saturday. And to get in on the Totally Money Carnival, submit here. Now, on with the show:

Speaking of counting summer’s chickens before they’ve hatched, Jon the Saver at Free Money Wisdom points out that “One of the best times of the year for many families is the summer.” He’s right: most families rank summer in their top 4 seasons. He suggests 12 things to do in the 9 remaining days of summer, which means you’d need to do 1.3 of his recommended activities every day from here on in to cross them all off the list. He claims that a day of crafts (“Most kids love crafts”) is something your family will remember for many years to come. And he’s right. That day my brother and I made papiermâché death masks in 1975 is something we still talk about.

Tim Fraticelli at Faith & Finance lists 12 things you don’t want to skimp on. We would have added jackstands, bullets, pet medicine and water filters. (Aside: “skimp” and “scrimp” are pretty close to synonymous. Why would anyone add an extra letter if they didn’t have to? Seems like a waste.)

Apparently Janet at Credit Cards Canada read that old piece of homespun wisdom about not grocery shopping on an empty stomach, and decided to share it with us. To save money on groceries, she also suggests that you USE A LIST. Also, BUY IN BULK if you can. She also helpfully suggests that you bring trail mix along when you run errands. The number of people who didn’t bring trail mix with them on errands but now will because Janet recommended doing so? We’re guessing zero.

At the rate we’re going, by 2022 the entire internet will consist of nothing but porn and personal finance posts about how to be frugal. Unfortunately we can’t showcase the former here, but Miranda at Financial Highway is helping us choke to death on the latter. Her 45 favorite parsimony strategies include: clip coupons, drink water from the tap, brown bag it…you get the idea. Of course you do, you have a functioning cerebellum.

Time for a good one. FMF at Free Money Finance test-drove a home safe, and interviewed an industry expert (alright, it was a representative of the safe company) about the pros and cons of introducing a cuboid metallic member into your family.

A: Of course not.
Q: Teacher Man at My University Money asks “Is a liberal arts degree worth it?”

How about post about frugality? We told you they were few and far between. Shawanda Greene at You Have More Than You Think gives her take on the topic, arguing for more balance. In fact, she says she lives by the motto “Big or small, I sweat it all.”

The couple behind Sustainable Personal Finance live in Canada, and like most Canadians, are a short drive from the United States. Tired of paying outrageously high prices compared to their American counterparts, SPF did the sensible thing: jettisoned their own commitment to buying local, and crossed the border to save money.

Again with the Canadians. Boomer at Boomer and Echo talks about the cheery topic of long-term health care insurance for the old and/or decrepit. (You mean Canadian health care isn’t free for everyone? No, it’s more complex than that. Who knew?)

Fanny at Living Richly on a Budget read and reviewed a book by some guy on TV. It’s called The Wealth Cure: Putting Money in its Place, and you’ll never guess what its message is. True happiness starts inside. If you are not truly happy inside, then you won’t be happy no matter how much more money you have. Another secret of the universe, uncovered right here in the Carnival of Wealth. Swish!

You’d never guess it from his picture, but Roger Wohlner of Chicago Financial Planner is a certified financial planner. It’s great to have a professional come in to the CoW once in a while and give a little complimentary analysis. Roger might not be a live wire, but information always trumps personality. Last February he posted what his Fidelity Freedom fund invests in, and this week he updates it.

Another post on frugality? Are you detecting a pattern? timw (pronounced “timw”) at Escape the Hum Drum says you should live modestly. timw’s own scrimping includes skimping on commas, which he used only 19 of in an 1100-word post. That’s not easy to do. We don’t know much about timw, but we’re flattered that despite being from the UK, he wrote his post for a North American audience by incorporating dollar signs into the narrative (yet tipped himself off by talking about living in a flat and saying “whilst.”)

The world would be a better place if more people wrote like Neal Frankle at Wealth Pilgrim. If you’re looking for some extra retirement income, you might be intrigued by the idea of a reverse mortgage annuity. It’s a way for you to tap into the equity of your home. You’ll receive that money for as long as you’re able to live in your home, and you won’t have to repay the loan. Since many people aren’t able to find (or are interested in finding) jobs in retirement, this could be a way to go.

Paula at Afford Anything doesn’t seem to understand that $ means “dollars” (“$1 million dollars”), but she does grasp the arbitrary nature of the base-10 numerical system and its psychological effects. Read her findings in “Who Wants To Be A $402,854-aire?” (number converted by us to base-12.)

Did Hurricane Irene do a number on your house? Maybe you suffered some mental anguish and can never go out in the rain again. Back Taxes Help shows how you can minimize the damage to your tax bill.

Finally, she missed the deadline but this post was so good we had to make an exception. Sandy of Yes I Am Cheap has a radical idea: maybe, just maybe, you shouldn’t have kids if you can’t afford them.

Thanks for stopping by. See you in a fortnight.