Investing While Saving?

Today I read an article in Money magazine entitled Awesome Values in Stocks. The reasoning behind their argument of why now is an awesome time to invest is that some formally very expensive stocks can now essentially be bought at a bargain.


For instance, one of their suggestions was a company I am sure we are all familiar with China Petroleum & Chemical, because I know that they are always at the center of my thoughts, sure! Well they are down 56% from they're former cost to a present price of $79 per stock. The articles explanation is this, "China's largest refiner faces rising taxes on energy exploration, but it still stands to gain from that country's long-term boom".


Now, seeing as how China did finance our $500 billion dollar bailout, the want to invest in their companies does come off as intriguing, but what makes this stand out is that over the next 5 years China Petroleum & Chemical's stock price is due to rise by 29% (Money Magazine).


So, today my questions are three fold. First, when trying to save and establish wealth, is it also essential to ensure you are growing future investments? Second, for as risky as stocks can be, can the time of a recession serve as the best time to slowly build a small portfolio? Third, would you invest in this company, based on this information, regardless of your financial state?


As always, thank you...The Runner

Cutting Costs is Stylish Now. What?

Well folks, it has been a couple of weeks since our last post, and for that I do apologize, but fear not! We are back!!!

As you can see by today's title, Cutting Cost is Stylish Again, and with all of our discussions on things like keeping up with the Jone's and all of their nonsense, I thought it would be reassuring to you, my loyal friends, to see that saving cash is what is in style this year. I guess this just proves that when you're riding high up on the hog and you fall face first into the mud, you remember the basics.

The attached article is actually entitled Ultra Rich Spending Less and Chasing Quality and it is littered with ten different points that range from the fun, to the frugal to the really?

The "really" one for me was number eight, and it states, "8. They feel less guilty about being rich. In 2009, many of the wealthy surveyed felt guilty about buying luxury goods or discussing their worth. Now, they're trending toward less guilt and a greater desire for people to know they are affluent".

Let me start out by saying just two words, bite me. You feel less guilty about being rich, well I am so happy to hear that you are finding solace during a time of tremendous worry for the rest of the country.

Feeling less guilty about being rich? Seriously, that could be the funniest line of 2010, if not the funniest line in the history of the world.

But anyway, back to business. Cutting cost is stylish now. It's official! I mean, if it's written in a Yahoo Finance article it must be true, right? I can consider my style score to have gone up, right? Ahhhh, who cares.

Style is an individual thing, it always has been, and to me, the time spent doing extra surveys, the part-time clerical work and all of the other ways trying to make money where others are just throwing it away, is a style. It's my style. And y'all welcome to come along if you like?

How about all of you? Tell us about your style!

Also, please tell me if the whole, "feeling less guilty about being rich" thing did not come off as absolutely hysterical!!!

As always, thank you...The Runner

Also, from now on I thought I would share the books I am reading, and post the ones I would recommend. So be on the look out! Here's the first!!!

529 College Savings Plans?

After weekend that revolved around the welcoming of a new child, I could not help but wonder about what their parents conversations might sometimes consist of. However, I was sure that while college is still a long ways away for this child, it is probably not far from the thoughts of their parents today, and with that the conversation of where and how to pay for college so then follows.

So today, I dedicate this to the girl whose name works the same from front to back and back to front, and hope that we can all pass this information along to those that might benefit from it the most.

For years people have spoken about a 529 College Savings Plan, and while this was not something that I took part in, I would be remiss if I was not bring it up in our community of helpful hints and ideas about how planning is probably the biggest money saver in the end.

So what is a 529 College Savings Plan?

A 529 Plan is an education savings plan operated by a state or educational institution designed to help families set aside funds for future college costs. It is named after Section 529 of the Internal Revenue Code which created these types of savings plans in 1996.

529 Plans can be used to meet costs of qualified colleges nationwide. In most plans, your choice of school is not affected by the state your 529 savings plan is from. You can be a CA resident, invest in a VT plan and send your student to college in NC. Check to see if your institution is eligible under 529 rules.

Every state now has at least one 529 plan available. It's up to each state to decide whether it will offer a 529 plan (possibly more than one) and what it will look like, meaning 529 plans can differ from state to state. You should research and compare the features and benefits of your plan before you invest, research state 529 plans.

Now for the good stuff!

Tax Benefits

As long as the plan satisfies a few basic requirements, the federal tax law provides special tax benefits to you, the plan participant. Some states (but not all) offer tax incentives to investors as well. Be sure to research your state's tax treatment.

Types of 529 plans

529 plans are usually categorized as either prepaid or savings plans.

Savings Plans work much like a 401K or IRA by investing your contributions in mutual funds or similar investments. The plan will offer you several investment options from which to choose. Your account will go up or down in value based on the performance of the particular option you select.

Prepaid Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Independent 529 Plan is a separate prepaid plan for private colleges.

Educational institutions can offer a 529 prepaid plan but not a 529 savings plan (the private-college Independent 529 Plan is the only institution-sponsored 529 plan thus far).

Whether choosing to invest this money privately or opting into a 529 plan, it is nice to see that once again, good planning will actually (and literally) pay off.

The cost of tuition in the coming years and decades in set to grow by almost 5% annually!

What to really lose your mind. Look up the college you want you child to go, and do the math. If it cost this much today, and your child will need there first tuition check in 18 years, what would the cost be then?

It might sound ridiculous, but I am major fan of the "For Dummies" books and recommend them to everyone because of their ability to answer your questions while at the same time bring you access in other place you may never had considered. So, I made it easy and put the link right here if you are so inclined to order a copy.

Well no matter what that cost is there is a plan out there to help out. When family members look to rain presents down on your new born, ask for money, and make sure it goes right into the 529 plan.

Families, if you can get the account number to the plan, you can actually deposit it!!! Sure, its nice to give toys and other gifts, but let's say that neither you or any gift bringing adult in the family brought nothing but cash, for those 18 years, you would have to imagine that money would be a staggering amount, and therefore give you the parents a bit more room to breath knowing that at least the tuition bill is covered.

Do any of you have, or participate in a 529 plan currently?

As always, thank you...The Runner.