The number one item that most people really don’t need is a cell phone. That little item can end up costing you $40 or more a month. Can you do without it? If you can then dump it. If you can’t then at least get away from those 2 year contracts and go with a pay as you go plan. You will find that you can save about $20 or more a month. I have a Tracfone and pay less than  $7 a month for it. Yes I had to buy the phone and it cost me a whole $9.99.  I did have Verizion 3 years ago and I just got fed up with paying $49.99 a month for one phone and I still had to pay for all the extra charges should I use the roaming option.

My savings so far, in the 3 years I have had Tracfone over Verizion is roughly $1,600 and I can put that in the bank.

For more money saving ideas visit Jans at Scratching out a Living .

Thankfully my debt isn’t that scary, I hope, Suze might think otherwise. I wouldn’t want to miss her reply to the woman who wants to spend $4,000 on the Elf School. Really? Can you afford it isn’t as much the question as is should you go just because you can afford it?

There will be a masked mystery guest to answer questions as well.

Tune in Saturday night to the Suze Orman Show on CNBC at 9:00 PM ET or during one of her repeats for all the fun or financial fear, whatever your poison. Don’t stay up too late and eat too much candy, but if you do, DON’T FORGET TO TURN YOUR CLOCKS BACK.

Happy Halloween!

Or visit YouTube link.

Energy tax credits are a win-win-win situation. You save money on your taxes, you save money on your energy bill, and you get to live in a more comfortable home!

You can claim up to $500 in tax credits for energy efficient improvements you make on your home. Here are some examples of the credit amounts you can claim. You can mix and match up to $500.

You can get a $300 tax credit for upgrading your heating and air conditioning system.
You can get a tax credit for 10% of the cost of new windows and doors. How about $300 for installing a new water heater?

To claim the residential energy tax credits file form 5695 with your 1040.

Look for my next post on what Suze Orman would want you to do with your tax refund!

Visit Kat’s Money, Debt and Taxes for more information on how to get out of debt and save money on your taxes. 

Opening Remarks:
Suze will talk about why money and marriage go together.   She is talking about the benefits of being marriage.  Basically there are many financial advantages to being married; thereby leading to a discussion about how Prop 8 is ridiculous.

Guest:
The couple is about to get married.  They are having a disagreement over money: Gordon wants to pay about 50% of Chastity’s student loans, but Chastity thinks she would feel guilty taking money from him when it is not his debt.  Suze basically tells them they should do this because it makes financial sense.  It makes sense to get rid of the school loan immediately.  Suze says that Chastity can always sign a promisary note for Gordon which states that she would pay back whatever would be owed (so that she feels less guilty).

Phone Calls:
Caller #1
I don’t remember her  name, but the issue is that her father passed and the mother is obligated to pay her late-husband’s death.  Suze says: YES!

Emily
Emily and her husband are in lots of debt ($38,000) and are arguing.  Suze advises to find a new job, pay down the credit card debt and never forget this lesson!

Mary
Is worried because her partner and her are not able to get married and worry about what will happen when one passes away.  Suze mentions that she has resources available on her website .  I believe these are located in the “Will and Trust ” section.

Can I Afford it:

*Maltese puppy for $900 - DENIED!
*Trip to 2010 Winter Olympics for $10,000 - APPROVED!
*Josh Agle Print for $6,500 - DENIED!
*Sculpting Course for $750 - APPROVED!
*King Cobra Golf Clubs for $800 - DENIED! (she didn’t even let him speak)

Can I Afford it, Callback!:
Lisa’s $6,300 ticket for Bette Midler’s Gala for Environment Performance

Lisa was denied.  She did not go to the event.  Instead, she donated to the cause and feels great about saving money while still donating something to this cause.  SURPRISE SURPRISE!  Suze tells Lisa that she went to the event this past year and had a great time.  Suze was glad that Lisa turned her on to this event and in return, Suze (or maybe it was the Bette Midler entourage) is giving Lisa two tickets (worth $5,000 each) to the next performance.  Lisa was thrilled!

Phone calls:
Jennifer
Bought about nine investment properties and she is feeling guilty about not being financially responsible.  Also, the burden is taxing on her marriage.  Suze advises that they sell all of these properties.  Suze also warns that Jennifer’s credit is going to be ruined.

Nicole
Her partner and her get along, but are not on the same page when it comes to finances.  Suze tells her that she needs to open up the communication and be more honest with each other.  Otherwise, they are doomed for problems in the long run.

Email:
What a classic case of a typical Suze guest.  The guest has $40,000 in credit card debt.  She wants to cash out her husbands 401K which is valued at $25K.  Emailer also contemplates bankruptcy.  Suze tells the emailer that she is absolutely not allowed to cash out the 401K because it would be stupid.  Cashing out 401K’s before age 59.5 results in a 10% penalty PLUS it would be taxable income.  In the end, it is not worth it.  Only contemplate bankruptcy if it is an absolute last resort.

Closing Remarks:
Suze is wacky again.  She shows us that she has found her perfect match this Valentine’s Day… the desk lights up red and she says: “The desk matches my shirt.”  Then, she blows a kiss.

Visit Kevin’s Go Cubs Go for all the latest on the Chicago Cubs

This encounter was broadcast on January 12, 2009, and the Fast Money crew was polite, but obviously on a different playing field.  They looked seriously uncomfortable, as though they had welcomed her on the show under duress.  No amount of noodling about Taco Bell could break the obvious freeze between those behind the desk and Suze up front.  Suze admitted that she had disagreements with them in the past, but emphasized that dollar cost averaging is the way to go.  She even pointed out that many times brokers themselves could not pay their own mortgages, and gestured to the man seated on the left, as if he were the example such a broker.

So who is right?  Fast Money, which obviously advocates specific, targeted investments that turn over after they are profitable?  Or is it the dollar cost averaging?

Consider it from Warren Buffet’s point of view.  He doesn’t dollar cost average, but he does buy and hold, and hold, and hold.  Orman knows that not everyone has Buffet’s pocketbook, so that leaves putting money into a retirement account as it is possible.  Therefore dollar cost averaging is appropriate.

For people who like to follow the market, invest in stocks, and then take profits,  Orman’s comment about the stock broker who can’t pay the bills is not fair any more. For one thing, she was brokering at a time before trading online swept away the world. That’s not to say there aren’t brokers and a place for good brokers. But brokers today are no longer the same as they were when Orman began.

Likewise, the folks on Fast Money should know that sometimes slow and steady gets to the gate first.  Repeated infusions of cash into a portfolio will build a portfolio substantially.  It would be curious to see how many portfolios of the Fast Money team had the kind of returns last year that all of us would envy.  And obviously Orman doesn’t even have to worry about money at all.

Visit Beth Rose’s Wear Many Hats for a different perspective for the informed investor.

Consider, however, the current market situation where the market has been dropping in a most hair-raising fashion.  Some individuals have lost over 50% or more of their equity, holding on all the while in the name of “It Will Come Back.” Most people over 55 are wondering how many years now it will be before they can retire, and some retirees are going back to work.

Is it any wonder then that some might question the sanity of a financial adviser who tells someone to invest aggressively if they are under 40?  After all, portfolios simply may not have the kind of growth that they have had in the past fifty years.  Perhaps we are entering the same phase as the Japanese, where it was so lackluster that very little growth happened at all.

Suze Orman’s buy and hold, and dollar cost averaging is not unlike many financial advisors.  This strategy is often not advocated by other market gurus who feel that better returns are available to folks who identify the sectors that will be on the rise, and then invest in them.  They scorn the investments for the average.

Whoever is right, the Orman type investment advisers or those who ride sector stocks, doesn’t really matter.  We may be entering a whole new phase of financial advising.  The market numbers may never be the same after last year’s market drop.  And if this country does steer into a depression, redefining retirement strategies will be critical for all advisers.

Visit Beth Rose’s Wear Many Hats for a different perspective for the informed investor.

Opening Remarks
Suze compares the Super Bowl to balancing your finances.  While a football team has all members working towards the same goal (the Lombardi trophy), families must all work together to create their own financial goal (no debt, budget, etc.).  Suze goes on to create different financial goals: don’t use the credit card for a week, don’t eat out for a month… you keep working up and you will see that you can reach your own financial goal.

Guest
Heath plays for the Minnesota Vikings, but he was out last season with a torn ACL.  Heath and his wife, Julie, talk about how they have a large sum of money saved up and they want to know how to invest their money.  Interesting statistic: the average “life expectancy” of an NFL player’s career is 3.5 years.  Suze asks if any of Heath’s financial advisors ever took that fact into account and Heath says that they did not.  Suze goes on a mini-rant about financial advisors who do not know what they are doing.  Suze goes back to their finances.  The major announcement: FDIC will decrease their insurance at the end of 2009 to $100,000.  Suze’s advice, do not keep more than $500,000 with one bank.  Suze also advises that it really isn’t such a big deal to make interest through assets; instead, it’s a better idea to save because as stated earlier: being an NFL player does not last for a long time.  Suze also mentions: “Non-deductible IRAs” because it is a good way to keep the money diversified.  Basically, Suze goes all over the place with what to do and it is a bit much.  Suze ends the segment by telling Heath to promise to spread the financial responsibility karma off to the rest of his teammates. 

PS– I kind of love the New York Jets cheerleaders being in the Suze studio tonight.

Phone Calls
James
James plays for the Atlanta Braves.  James and his wife make too much to qualify for a Roth IRA.  What to do?  Suze gives a table on Roth IRA qualifications… it’s a bit much to put all in here.  Suze recommends a Non-Deductible IRA for James and then convert any money that he has into a Roth IRA. 

Beth
Went out and got a credit card on her 18^th birthday.  She maxed out the limit at $400 and spent this money on an Ipod.  Apparently, Beth didn’t realize that you had to pay the money back to the credit card company.  Suze is beside herself.  Beth received statements to pay back the $400 balance, but she feels like she doesn’t have to.  Beth wants to get another credit card to pay off this debt.  Suze tells Beth that she is grounded.  Beth makes $2000 per month and Suze says that Beth must save up $400 this next month and pay off that credit card in full.

Can I Afford It
Those New York Jets cheerleaders are going to say “Approved!” or “Denied” for each person.  This should be awesome.

*Ray wants to play in the World Series of Poker for $10,000 - APPROVED!
*Theresa wants an Autographed Def Leppard Photo for $300 - DENIED!
*Stewart wants a Segway Personal Transporter for $5,000 - DENIED!
*David wants a Snowboarding Season Pass for $479 - APPROVED!
*Karen wants to go to the World Cup for $5,000 -  SOOO DENIED!
*Kaylon wants a Beat Machine for $500 - APPROVED!

Phone Calls
Linda
She is a poker dealer and gets taxed on her tips.  She wants to find a way around being taxed on the tips.  Suze says she is absolutely not to do anything with the tip money because Linda mentioned that she has $3000 in credit card debt.

Kathy
Her son inherited a baseball card collection and wants to know what to do with it.  Suze encourages Kathy to find the value of the cards because the value is unknown.  After finding out if the cards are worth something, then Kathy should cash in now while she can.  You never know when the value on certain collections will go up or down.

Email
They were running late so they didn’t have time to read an email.  Instead, they talk about football and food.  Suze thanks the New York Jets cheerleaders for coming and then has them do a dance to close the show.  Wow.  Great show!

Visit Kevin’s Go Cubs Go for all the latest on the Chicago Cubs