Cut your 08 taxes now!

Last Chance to cut '08 taxes

This is an article I read I thought was great. I did not write it, just sharing it!

Give yourself a holiday present: Act before Jan. 1 to minimize what you'll pay Uncle Sam in April.

The holidays are here, and they definitely will divert your attention.

This is my last -- AND LOUD -- reminder to take a few minutes from your holiday merrymaking to get those last-minute tax moves done.

You have until Dec. 31. After that, there's little you can do to cut your tax bill. Here are moves to make now:

Capital gains and losses

Normally, I'd start with the simplest things, but I'll start with probably the most painful subject to deal with: your investments.

For many investors, 2008 has been, well, dreadful. The Dow Jones Industrial Average and the Standard & Poor's 500 Index are down as much 40% on the year. And that's actually an improvement over November's lows.

But let's turn those losses to good use.

You can write off those losses against, first, any capital gains. So, if you have a stock or a mutual fund that you've owned for a year and is showing a decent gain in that time (such as Wal-Mart Stores or McDonald's, the only Dow stocks with gains this year), look for another stock or a mutual fund that's a loser.

If you sell the winner, you can offset your gain, dollar for dollar, by selling the loser.

And make sure you've put the sell orders in by Dec. 31. (Make your broker give you written confirmation.)

If you don't have any winners, not to worry. You can sell your losers and offset as much as $3,000 in ordinary income for 2008. Anything exceeding $3,000 can be applied, first, to offset 2009 capital gains and then to offset ordinary income in 2009.

But remember: To get the tax treatment, sell by Dec. 31.

Generally speaking, all net long-term gains are subject to a maximum 15% rate. But if you're in the 10% or 15% tax bracket for 2008 through 2010, you get a break. Your gain will be subject to zero tax. (Zero is one of my favorite words.)

If you're single with taxable income of $32,500 or less, you get the zero rate. With a standard deduction of $5,450 ($5,700 for 2009) and a $3,500 ($3,650 for 2009) personal exemption, you can have as much as $41,500 in gross income and still qualify. (Likewise, joint filers can qualify with as much as $83,000 in adjusted gross income.)

If you have shares of stock pregnant with miraculous gains and you don't expect them to appreciate further, sell those shares and shelter the gains with the losses on your losers. Worst case: Pay the maximum 15% tax. You can't go broke taking profits.

One bit of bad news: If your losses are inside a retirement account, you can't deduct them. On this, I am sorry.

Charitable donations

If you contribute to your church, your college, the local dog pound, United Way or organizations contributing to disaster relief, make these donations by Dec. 31.

And, before filing your tax return, make sure you have receipts from the organizations that benefited from your generosity.

If you don't have the cash, find out whether the organization can process a donation via credit card. As long as the donation is made by Dec. 31, it's valid as a 2008 deduction.

Separately, any contributions of clothes or household goods must be in good condition or better to qualify for a deduction. If a single item has a value of $500 or more, you will need an appraisal. The Internal Revenue Service can deny deductions for items of minimal value.

Complicating any deductions are the requirements that the IRS instituted in 2007 on record keeping. This is important.

To deduct a cash donation, regardless of the amount, you must have a bank record or a written communication from the charity showing its name and the date and amount of the contribution. Acceptable bank records would include canceled checks or bank or credit union statements containing the name of the charity, the date and the amount of the contribution.

Your flexible spending account

This isn't exactly a tax savings, but if you don't use the dollars you contribute to a flex plan, you lose them.

The IRS allows purchases made through March 15, 2009, to count. Your employer can give you a debit card for your flexible spending account. You can even pay for nonprescription drugs through an FSA. That eliminates a whole lot of paperwork.

Be careful, however. The IRS may allow the extended March 15 date, but, unless your employer's plan is amended to allow it, you won't qualify.

Real-estate taxes

If you pay your own real-estate taxes, make any payments due in the beginning of 2009 by Dec. 31. My fourth-quarter real-estate taxes are due Feb. 1. By paying them Dec. 31, I get the deduction a year earlier.

A friendly warning: Taxes aren't allowed as a deduction under the alternative-minimum-tax computation. If you expect to get hit by the AMT, don't prepay. www.go2joe.com

Medical and miscellaneous deductions

Medical expenses and miscellaneous itemized deductions have "floors." For medical expenses, only those in excess of 7.5% of your adjusted gross income count. Miscellaneous itemized expenses have to exceed 2% of your AGI to qualify.

An important point: Your health insurance premiums count so long as you're not paying them out of a flexible spending account.

If you're going to exceed the floor, accelerate your expenses. Prepay your orthodontist or your tax preparer. Send in your payment either online or via the U.S. mail by Dec. 31. Alternatively, if you're not going to exceed your floors, defer the deductions to 2009. You may exceed your floors then.

Pension or IRA contributions

These are especially important if you are self-employed. Unless tax rates shoot up, you want to pay your tax "tomorrow" rather than today.

If you're contributing to a retirement plan such as a 401(k) plan or a 403(b) plan, you can put in $15,500 in 2008 and $16,500 in 2009. If you're 50 or older, you can put in an additional $5,000 as a catch-up contribution in 2008 ($5,500 in 2009).

Cash gifts

Could your estate be taxed?

If so, lessen the burden on your heirs by making a tax-free gift of up to $12,000 before the end of the year. The tax free amount increases to $13,000 per recipient in 2009.

Tax-free IRA distributions to charities

If you're 70 1/2 or older and looking to make a donation to a favorite cause using funds from your individual retirement account, this may be the year to do it. For 2008 -- and 2009 -- you can distribute as much as $100,000 directly from your IRA without recognizing any income.

You don't get a charitable-donation deduction (unless the distribution was from a Roth IRA), but the distribution does count toward your minimum-distribution amount.

A note: This provision will expire after 2009 unless Congress renews it. (A renewal is a good bet, however.)

Is the AMT in your future?

I fully expect some relief from the alternative minimum tax. But if we don't get it, I encourage you to really yell at your representative and senators for not getting the job done.

More middle-income taxpayers are being hit with the AMT each year, which is basically a parallel tax system designed to ensure that everyone pays some tax. It is, however, forcing more people to pay more tax than it should.

This fall, Congress extended the AMT exemption, increasing the exemption for 2008 to $69,950 ($34,975 for married couples filing separately). That's up from $66,250 in 2007 -- or $33,125 for married couples filing separately. For singles, the limit is $46,200, up from $44,350 in 2007.

But the extension is good for 2008 only. Congress will have to extend it again in 2009.

Watch this carefully because the issue hasn't been resolved, and the lack of resolution could cost you.

Good luck in the hunt to reduce your taxes! www.go2joe.com

Lower Rates could mean great deal!

Six Things to Know About the Fed Rate Cut

The Federal Reserve on Tuesday cut its federal funds target rate by more than three-quarters of a percentage point to a range of between 0 and .25 percent. The decision signals that Fed Chief Ben Bernanke is more concerned with the rapidly deteriorating economy--which has been mired in a recession since December of last year--that the prospect of stoking inflation. "Since the Committee's last meeting, labor market conditions have deteriorated, and the available data indicate that consumer spending, business investment, and industrial production have declined," the rate-setting Federal Open Market Committee said in its statement. "Financial markets remain quite strained and credit conditions tight."

Here's how the Fed's actions affect you:

1. Fixed mortgage rates: Today's rate cut will have little if any impact on 30-year fixed mortgage rates, which are determined by factors that operate largely outside of the Federal Open Market Committee's reach, says Keith Gumbinger of HSH Associates. "Any change in the rate has little to do with long-term mortgage rates," he says. But in its statement the Fed said it could expand a recently announced program to buy up debt and mortgage-backed securities from Fannie Mae and Freddie Mac that has already driven mortgage rates down to a very attractive 5.28 percent, according to HSH Associates. It also reiterated that it was looking at the possibility of buying long-term Treasury bonds. Both of these announcements could work to bring rates even lower.

2. Prime rate loans: The real impact of today's cut will be felt by consumers with loans that are tied to the prime rate, a benchmark rate that typically moves in lock step with the federal funds rate. "The only place where you would see a concrete impact at the consumer level would be things that are directly tied to prime," says Mike Larson, a real estate analyst at Weiss Research. Many home-equity lines of credit and certain credit cards with variable interest rates are tied to prime rate. As such, borrowers with these loans could see their interest rates decline.

3. Home-equity savings: Home-equity loans averaged 5.5 percent in October but dropped to 5.26 percent in November following the Fed's half-point cut. Gumbinger says he expects average rates on home-equity lines of credit to experience similar declines this time around--but not everyone will be able to take advantage of them. That's because many of the interest rates on these loans are already at their minimums, and are contractually prohibited to go any lower. So check the terms of your home-equity loan to see if you are eligible to cash in on the decline.

4. Target vs. effective: When credit markets are functioning normally, Fed rate cuts reduce banks' cost of funding, which allows them to widen profit margins and pass along savings to consumers in the form of lower interest rates. But today's credit conditions have changed all that. Although the Fed's target rate stood at 1 percent before today's cut, such funds were actually being traded in the market at much less than that--just 0.18 percent as of yesterday before the Fed's action. Although the Fed can usually control the effective rate by buying and selling government securities, the credit crisis has eroded its ability to do so. "Any juice that you would get from a funds rate cut in a normally functioning market, you're not really going to get that here," Larson says. "It's not going to lower the banking industry's cost of funds, because the banking industry's cost of funds is already below the target rate anyway." That means that interest rates tied to the federal funds rate won't decline as much as they otherwise would have.

5. Now what? Nariman Behravesh, chief economist at IHS Global Insight, expects rates to go all the way to zero in a matter of weeks. "The Fed has already cut the federal funds rate to 1 percent and is likely to take it all the way to zero by the end of January," Behravesh said in a recent report, issued before today's announcement. "Once the overnight rate is at zero, the Fed may have to engage in 'quantitative easing' [direct purchases of long-term Treasuries]." Even if it doesn't bring rates all the way to zero, the Fed signaled Tuesday that it's not about to push rates higher anytime soon. "The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time," the Fed said in the statement.

6. Expect more unexpectedness. With only less than a quarter of a percentage point left to cut, look for the Fed to get even more creative in its efforts to revive the financial markets. New programs to support different corners of the credit market could certainly be introduced in 2009. "The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity," the Fed said in the statement.

Who's eats turkey on Thanksgiving?

What did the Pilgrims eat for Thanksgiving?

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Nothing remotely close to what we eat.

While it is possible that the Pilgrims ate turkey, it is more likely that the centerpiece of their Thanksgiving feast was venison, accompanied by duck or goose. The meal may have also included seafood, such as clams, eel, cod or lobster.

Potatoes, apples, pears and cranberries were not commonly available at that time, nor would they have had corn on the cob, as it would have been dried by that time of year.

And pumpkin pie? Forget it. They may have made some sort of dessert with pumpkins, but since sugar and flour were scarce, and there were no ovens for baking, it would not have been pumpkin pie.

The "traditional" Thanksgiving meal most of us eat today is an invention of the Victorian era, composed of foods that were appropriate to celebrate the harvest when Thanksgiving was established as a national holiday in 1863.

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Take Back Your Dinner Hour!

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It is 5:00 in the evening. Work was tough, the roads were slippery, and the traffic was about as crowded as it could get today. But the smell of dinner is in the oven as you walk through the door. The kids yell for you and are so thankful you're home. It's a little piece of heaven we all wait for every night.

The conversation at the dinner table is delightful. The kids are telling their stories about the feared spelling test they did so good on. Gym was fantastic, and recess was even better. Then the dreaded screech in the conversation. Like a bad car accident. Ring, ring, ring. Everyone wonders who that could be. Grandma. Grandpa? Neither. Someone on the other end is asking if you would like to refinance your home, or consolidate credit cards.

It absolutely wrecks a great family moment every time. The following is information on how to avoid this. I did it myself, and it lets you register 3 numbers on the do not call list at a time.

Good piece of info.......

Cell Phone Numbers Go Public this month

REMINDER.... all cell phone numbers are being released to telemarketing companies and you will start to receive sale calls.

.... YOU WILL BE CHARGED FOR THESE CALLS

To prevent this, call the following number from your cell phone: 888-382-1222.

It is the National DO NOT CALL list. It will only take a minute of your time. It blocks your number for five (5) years.. You must call from the cell phone number you want to have blocked. You cannot call from a different phone number.

HELP OTHERS BY PASSING THIS ON TO ALL YOUR FRIENDS..
or go to http://www.donotcall.gov

If you have any questions please give me a call, but not during dinner please!~Joe Koltes

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Do you know where your religion is?

As I was reading through my church bulletin this week, I stumbled upon an article written by a favorite priest of mine Fr. Whemann. He borrowed it from Ann Landers. I figured if he thought it was ok, I could too. Although my blog is generally about business, houses, and different trades such as plumbing, electrical, painting, concrete, carpet, and so on, I thought I would share this with you.

WHEN WAS YOUR RELIGION FOUNDED? The following is taken from an Ann Landers column. (Date unknown) www.go2joe.com DEAR READERS: Do you have any idea when your religion was founded and by whom? I found the following fascinating: If you are a member of the Jewish faith, your religion was founded by Abraham about 4,000 years ago. If you are Hindu, your religion developed in India around 1,500 B.C. If your are Buddhist, your religion split from Hinduism, and was founded by Buddha, Prince Sidhartha Guatama of India, about 500 B.C. If you are Roman Catholic, Jesus Christ began your religion in the year 33. If you are Islamic, Mohammed started your religion in what is now Saudi Arabia around 600A.D. If you are Eastern Orthodox, your sect separated from Roman Catholicism around the year 1,000. If you are a Lutheran, your religion was founded by Martin Luther, an ex-monk in the Catholic Church, in 1517. If you belong to the Church of England (Anglican) your religion was founded by King Henry VIII in the year 1534 because the pope would not grant him a divorce with the right to remarry. If you are a Presbyterian, your religion was founded when John Knox brought the teachings of John Calvin to Scotland in the year 1560. If you are Unitarian, your religious group developed in Europe in the 1500s. If you are a Congregationalist, your religion branched off from Puritanism in the early 1600s in England. If you are a Baptist, you owe the tenets of your religion to John Smyth, who launched it in Amsterdam in 1607. If you are a Methodist, your religion was founded by John and Charles Wesley in England in 1744. If you are Episcopalian, your religion was brought over from England, to the American colonies and formed a separate religion by Samuel Seabury in 1789. If you are a Mormon (Latter-Day Saints), Joseph Smith started your church in Palmyra, N.Y., not Salt Lake City. The year was 1830. If you worship with the Salvation Army (yes, it’s a religious group, not just an organization that collects money in kettles on Christmas and serves dinners to the homeless), your sect began with William Booth in London in 1865. If you are a Christian Scientist, you look to 1879 as the year your religion was founded by Mary Baker Eddy. If you are a Jehovah’s Witness, your religion was founded by Charles Taze Russell in Pennsylvania in the 1870s. If you are Pentecostal, your religion was started in the United States in 1901. If you are an agnostic, you profess an uncertainty or a skepticism about the existence of God or a Higher Being. If you are an atheist, you do not believe in the existence of God or any other higher power. This country’s best-known atheist, Madalyn Murray O’Hair, has not been seen or heard from in more than a year. According to her son, she has disappeared without a trace. www.go2joe.com

Don't fall for it until you check yor list!

The Checklist at a Glance

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Fall is the perfect time to take care of the little things that can make a big difference for you and your home. Most of the tasks listed below are well with-in the average person's ability. But even if you choose to have a professional handle them, it's worth the expense. You'll save money -- and maybe even your life.

Here's the checklist at a glance. See the following pages for more detailed guidance.

• Get your mind in the gutters. Inspect and clean gutters and downspouts.
• Button up your overcoat. Seal gaps and cracks around windows and doors with weather-stripping and caulk.
• Get on top of roof problems. Inspect your roof for damaged or curled shingles, corroded flashing, or leaky vents.
• Walks the walks (and drives). Take steps to repair damaged sidewalks, driveways, and steps.
• Chill out. Drain and winterize outdoor faucets and irrigation systems.
• Freshen your filter. Clean or replace dirty furnace filters.
• Give your furnace a physical. Have a professional inspect your heating system.
• Gather round the hearth. Check fireplaces for soot or creosote build-up. Better yet, schedule a visit from a reputable chimney sweep.
• Keep the humidifier humming. Clean the plates or pads to ensure efficient operation.
• Head-off gas problems. If you have a gas-fired room heater, have it inspected by a pro. Also, perform any routine maintenance recommended by the maker.
• Keep the wood fires burning brightly. Wood stoves are making a comeback. To avoid a deadly situation, be sure to inspect yours before firing it up.
• Keep your family safe at home. A home safety check should be an annual ritual in every household. Test smoke and CO monitors, inspect (or install) fire extinguishers, review fire escape plans, and rid your home of old newspapers and other fire hazards.
• We can help with all your fall needs. Just stop by and fill out the request. www.go2joe.com
  

Get your mind in the gutters. Your roof's drainage system annually diverts thousands of gallons of water from your house's exterior and foundation walls. That's why it is so important to keep this system flowing smoothly. Clogged gutters can lead to damaged exterior surfaces and to water in your basement. They are also more prone to rust and corrosion. Before the leaves fly this fall, have your gutters cleaned, then covered with mesh guards to keep debris from returning.

Button up your overcoat. A home with air leaks around windows and doors is like a coat left unbuttoned. Gaps in caulk and weather-stripping can account for a 10% of your heating bills, according to the U.S. Department of Energy.

Weather-stripping is easily the most cost-effective way to rein in heating and cooling costs. This humble material also reduces drafts and keeps your home more comfortable year-round. Because weather stripping can deteriorate over time, it is important to inspect it periodically.

If you suspect a problem with weather stripping, you have several options for checking. Close a door or window on a strip of paper; if the paper slides easily, your weatherstripping isn't doing its job. Or, close the door or window and hold a lighted candle near the frame. (Don't let the flame get near anything flammable!) If the flame flickers at any spot along the frame, you have an air leak.

While you're at it, also check for missing or damaged caulk around windows, doors, and entry points for electrical, cable, phone, gas, and so. Seal any gaps with a suitable caulk.

Get on top of roof problems. Few homeowner problems are more vexing than a leaky roof. Once the dripping starts, finding the source of the problem can be time-consuming. Stop problems this fall before ice and winter winds turn them from annoyances into disasters.

Here's how: Inspect your roof from top to bottom, using binoculars if necessary. Check ridge shingles for cracks and wind damage. Look for damage to metal flashing in valleys and around vents and chimneys. Scan the entire roof for missing, curled, or damaged shingles. Look in your gutters for large accumulations of granules, a sign that your roof is losing its coating; expect problems soon. Finally, make sure your gutters are flowing freely.

Note: Roof-mounted television antennas, even if they aren't in use, may have guy wires holding them in place. Look for loose or missing guy wires. If you see some, and your antenna is no longer being used, consider having it removed altogether.

Walk the walks (and drives). Damaged walkways, drives, and steps are a hazard year round, but their dangers are compounded when the weather turns icy. Fixing problems in the fall is also critical to preventing little problems from becoming expensive headaches.

Look for cracks more than 1/8-inch wide, uneven sections, and loose railings on steps. Check for disintegration of asphalt, or washed-out materials on loose-fill paths.

Most small jobs are well within the ability of a do-it-yourselver, but save major repairs for experienced hands.

Chill out. If you live in an area with freezing weather, take steps to ensure that outside faucets (also called sill cocks) and inground irrigation systems don't freeze and burst.

Here's how: Close any shut-off valves serving outside faucets, then open the outside faucet to drain the line. (There may be a small cap on the faucet you can loosen to facilitate this draining.) If you don't have shut-off valves, and your faucets are not "freezeproof " types, you may benefit from styrofoam faucet covers sold at home centers.

To freezeproof an inground irrigation system, follow the manufacturer's procedure for draining it and protecting it from winter damage.

Heating Systems

Freshen your filter. Furnace filters trap dust that would otherwise be deposited on your furniture, woodwork, and so on. Clogged filters make it harded to keep your home at a comfortable temperature, and can serious increase your utility bills. A simple monthly cleaning is all it takes to keep these filters breathing free and clear.

Here's how: Disposable filters can be vaccumed once before replacement. Foam filters can also be vaccumed, but they don't need to be replaced unless they are damaged. Use a soft brush on a vacuum cleaner. If the filter is metal or electrostatic, remove and wash it with a firm water spray.

Give your furnace a physical. Once a year, it's a good idea to have your heating system inspected by a professional. To avoid the last-minute rush, consider scheduling this task in early fall, before the heating season begins.

Here are signs that you should have an inspection performed sooner:

Noisy belts. Unusual screeches or whines may be a signal that belts connected to the blower motor are worn or damaged.

Poor performance. A heating system that doesn't seem to work as well as it once did could be a sign of various problems. Your heating ducts might be blocked, the burners might be misadjusted, or the blower motor could be on its last legs. One check you should be sure to conduct: Make sure your furnace filter is clean.

Erratic behavior. This could be caused by a faulty thermostat or a misadjusted furnace.

Gather round the hearth. Even if you use your fireplace only occasionally, you should check it annually for damage and hazards.

Inspect your flue for creosote. Creosote is a flammable by-product of burning wood. If it accumulates in a flue or chimney, the result can be a devastating fire. Have your chimney inspected annually for creosote buildup. If you use a fireplace or wood stove frequently, have the flue inspected after each cord of wood burned.

For most people, the best option is to have your entire chimney system inspected by a chimney sweep. Once you know what to look for, you can perform the inspection by shining a bright flashlight up the flue, looking for any deposits approaching 1/8 inch thick. These deposits should be cleaned by an experienced chimney sweep.

Look for flue blockages. Birds love to nest at the top of an unprotected flue. A chimney cap can prevent this from happening. If you don't have a cap, look up the flu to ensure that there are no obstructions.

Exercise the damper. The damper is the metal plate that opens and closes the flu just above the firebox. Move it to the open and closed positions to ensure that it is working properly.

Check your chimney for damage. Make certain that the flue cap (the screen or baffle covering the top of the chimney) is in place. Inspect brick chimneys for loose or broken joints. If access is a problem, use binoculars.

Keep the humidifier humming. You may know that bone dry winter air is bad for your health, but did you also know it can make fine wood more prone to cracking? You and your home will feel more comfortable if you keep your central humidifier in tip-top shape during the months it is running.

Here's how: First, inspect the plates or pads, and if necessary, clean them in a strong laundry detergent solution. Rinse and scrape off mineral deposits with a wire brush or steel wool.

Head-off gas problems. Keeping a gas heater in good shape is both a safety and a cost issue. An improperly maintained heater can spew poisons into the air of your home, or it may simply be costing you more to operate. Have a professional check these devices annually. There are also some maintenance items you should address.

Here's how: First, shut off the heater. Then check the air-shutter openings and exhaust vents for dirt and dust. If they are dirty, vacuum the air passages to the burner and clean the burner of lint and dirt. Follow the manufacturer's advice for any other needed maintenance. Our best contractors at www.go2joe.com can help you with this.

Keep the wood fires burning brightly. Woodburning stoves are a great way to add atmosphere and warmth to your home. But regular inspections are needed to ensure that these devices don't become a safety hazard. Here's how to check them.

Inspect stovepipes. Cracks in stovepipes attached to wood stoves can release toxic fumes into your home. Throughout the heating season, you should check for corrosion, holes, or loose joints. Clean the stovepipe, and then look for signs of deterioration or looseness. Replace stovepipe if necessary.

Look for corrosion and cracks. Check for signs of rust or cracking in the stove's body or legs.

Check safety features. Make sure that any required wall protection is installed according to the manufacturer's specifications and that the unit sits on an approved floor material. If you have young children, be sure to fence off the stove when it is in operation.

Home Safe Home

At least once a year, do a top-to-bottom review of your home's safety features. This is also a good time to get the family together for a review of your fire evacuation plan. Here's how to do this:

Smoke and CO detectors. Replace the batteries in each smoke and carbon monoxide (CO) detector, then vacuum them with a soft brush attachment. Test the detectors by pressing the test button or holding a smoke source (like a blown-out candle) near the unit. If you haven't already, install a smoke detector on every floor of your home, including the basement.

Fire extinguishers. Every home should have at least one fire extinguisher rated for all fire types (look for an A-B-C rating on the label). At a minimum, keep one near the kitchen; having one per floor isn't a bad idea. Annually, check the indicator on the pressure gauge to make sure the extinguisher is charged. Make certain that the lock pin is intact and firmly in place, and check that the discharge nozzle is not clogged. Clean the extinguisher and check it for dents, scratches, and corrosion. Replace if the damage seems severe. Note: Fire extinguishers that are more than six years old should be replaced. Mark the date of purchase on the new unit with a permanent marker.

Fire escape plans. Every bedroom, including basement bedrooms, should have two exit paths. Make sure windows aren't blocked by furniture or other items. Ideally, each upper-floor bedroom should have a rope ladder near the window for emergency exits. Review what to do in case of fire, and arrange a safe meeting place for everyone away from the house.

General cleanup. Rid your home of accumulations of old newspapers and leftover hazardous household chemicals. (Check with your state or local Environmental Protection Agency about the proper way to discard dangerous chemicals.) Store flammable materials and poisons in approved, clearly labeled containers. Keep a clear space around heaters, furnaces, and other heat-producing appliances.-Joe Koltes courtesey Better Homes and Gardens www.go2joe.com

Who's Your President?

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Well it's finally here! A new President? A new Senator? No! The marathon of campaign ads are finally over! The day has come where we can finally turn on the television and watch our favorite shows without listening to all the fighting!

Recently we have been so pounded by political ads many people are afraid to turn on the TV! It's he said, she said, and then some! Hollywood has too much money so they vote for fun. We the working stiffs hope we vote for the person that eases the pain our family and friends feel.

So who do you vote for to change our country? If only we could vote for Fonzie. Aurthur Fonzerelli from Milwaukee Wisconsin. Imagine Fonzie meeting with Mahmoud Ahmadinejad the president of Iran. "You got Nukes?" President Fonzie says HEEEEEEEY thats not cool. The peace talks at Arnold's are over with a sock hop and chocolate shake to celebrate!

We all are hoping for the best for everyone as we cast our vote tomorrow. I have heard people complaining they have to get up early and make it to the polls before work to vote. They have to skip lunch or leave work early to vote. As we contemplate this great expense, we need to remember a simple but important point. Thousands and thousands of people have given their lives selflessly for us to stand in line and cast our vote to determine our next leaders. This is a gift most of the world does not get.

If only it was as simple as voting for Fonzie. It's unfortunately not. Vote true to your heart and those that have sacrificed to give us this right, will deam the cost justified. Appreciate this great gift, and get out and vote! Joe Koltes

Got Pumpkins?

Pumpkin History

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References to pumpkins date back many centuries. The name pumpkin originated from the Greek word for "large melon" which is "pepon." "Pepon" was nasalized by the French into "pompon." The English changed "pompon" to "Pumpion." Shakespeare referred to the "pumpion" in his Merry Wives of Windsor. American colonists changed "pumpion" into "pumpkin." The "pumpkin" is referred to in The Legend of Sleepy Hollow, Peter, Peter, Pumpkin Eater and Cinderella.

Native Americans dried strips of pumpkin and wove them into mats. They also roasted long strips of pumpkin on the open fire and ate them. The origin of pumpkin pie occurred when the colonists sliced off the pumpkin top, removed the seeds, and filled the insides with milk, spices and honey. The pumpkin was then baked in hot ashes.

My Favorite Pumpkin 08'

Wandering the streets this year with my son Kooper I wasn't sure what the holiday was. We grew up calling it Halloween, however I was informed by my detailed son that we now call the holiday in our school "Fall Festival". This is done so we don't offend anyone. I have not wrapped my brain around this yet. I am particularly offended there is a St Patricks Day. Everyone dresses up in green, drinking green beer until they fall over, yet there is no St Joseph Day, honoring my patron Saint. I need to stand up for my rights. I wonder if I can sue the school district? Christmas is also called "Winter Holiday". This offends so many people the stores are decorated for 9 months out of the year with Christmas decorations. It surely doesn't seem to offend Walmart when they report the company's 1st quarter earnings which includes the Christmas tradition of "loading up the credit card"! We cannot use the word Christ at school, this too offends too many people. Easter will be next on the list to offend someone to be sure. We can call this holiday in my family "watch Uncle Bill drink so much Makers Mark and eat so much ham he needs a nap" holiday. I don't think this will offend anyone. I digress.

I was on the look out for my favorite pumpkin. Something original that caught my eye. The opposite of anything my talents lead me to every year. Three triangles and a jagged mouth. I used to be the apple of my sons eye until he realized there were other styles and ways to carve a pumpkin. The one pictured above was carved by Megan C. She is a very bright neighbor girl in the 2nd grade at our local Elementary. I happened upon her pumpkin as I had lost track of my son, as usual this night. The kids run wildly down the street, as the parents watch in amazement. Why couldn't he run that fast in our football game last week, someone mumbles. In this game of pumpkins, I found a winner that wouldn't offend anyone, other than her dad who oddly resembles the pumpkin! Sorry John! Nice job Meg!

History of the Jack-o-Lantern

People have been making jack-o-lanterns at Halloween for centuries. The practice originated from an Irish myth about a man nicknamed "Stingy Jack." According to the story, Stingy Jack invited the Devil to have a drink with him. True to his name, Stingy Jack didn't want to pay for his drink, so he convinced the Devil to turn himself into a coin that Jack could use to buy their drinks. Once the Devil did so, Jack decided to keep the money and put it into his pocket next to a silver cross, which prevented the Devil from changing back into his original form. Jack eventually freed the Devil, under the condition that he would not bother Jack for one year and that, should Jack die, he would not claim his soul. The next year, Jack again tricked the Devil into climbing into a tree to pick a piece of fruit. While he was up in the tree, Jack carved a sign of the cross into the tree's bark so that the Devil could not come down until the Devil promised Jack not to bother him for ten more years.

Soon after, Jack died. As the legend goes, God would not allow such an unsavory figure into heaven. The Devil, upset by the trick Jack had played on him and keeping his word not to claim his soul, would not allow Jack into hell. He sent Jack off into the dark night with only a burning coal to light his way. Jack put the coal into a carved out turnip and has been roaming the Earth with it ever since. The Irish began to refer to this ghostly figure as "Jack of the Lantern," and then, simply "Jack O'Lantern."

In Ireland and Scotland, people began to make their own versions of Jack’s lanterns by carving scary faces into turnips or potatoes and placing them into windows or near doors to frighten away Stingy Jack and other wandering evil spirits. In England, large beets are used. Immigrants from these countries brought the jack o’lantern tradition with them when they came to the United States. They soon found that pumpkins, a fruit native to America, make perfect jack o’lanterns.

Source: Parts from The History Channel

Don't Believe the Good News?

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Recently there was an article on the web I ran across entitled "Housing sales up? Why that is bad news"

After reading this article I realized this is all part of the problem we all are in today. Negativity sells and is front page news, positivity is in the "E" section of the paper. Housing sales were up at twice the pace as last year at this time! Twice! This is bad news?

Here's the take on the article. The sales that have been happening predominately are foreclosures. They are discounted 30-40-50% and sometimes more of the value they once were. Some say this means nothing to the "real housing market" you and I live in. The foreclosures drive our prices down and cost us money. True. The values of all of our houses have dropped dramatically. The stock market quip is "my 401k is now a 201k". The economy is in a tail spin and we need to work hard and save hard to get through it.

Here's my positive spin for the eternal optimist I like to think I am. All of these foreclosures being sold create activity. They create money. Most often the homes that are sold by a bank need work. Real work. This includes plumbing, electrical, furnace, paint, carpet, roofing, siding, you get the picture. Now all these people fixing these homes purchase supplies from the local stores and hardware store. They use gas getting to and from the job sites. They have their coffee, and doughnut at the local store. They come back for lunch and have a burger, etc.

These hard working people also have kids like I do. Hockey, baseball, swimming, tennis, movies, and so on. Families take money to survive, and the money being made on these foreclosures is being put back into the economy just as fast as it was earned. This money flowing into the economy will eventually affect the job you are in right now. Whatever your company does, at some point will gain new sales from the new money flowing.

Look on the positive side. Foreclosures may be hurting your property values right now, but they also may be the answer to turning your 201k back into the 401k we all remember gazing at dreaming of early retirement it was so fat!

The next time someone says "yeah, but look at how the foreclosures are killing our economy", remind them of the positive side. The foreclosures are also turning our economy around!

-Joe Koltes 10/29/08

Types of Carpet

CARPET CARPET CARPET!

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When people are looking for carpet, there is much confusion about style and pile they say. This aims to help clear up all the different styles and types.

Cut Pile

The best-selling type of carpet is textured cut pile. Cutting looped carpet fibers at the top creates cut pile with yarn bundles standing straight. Preshearing cut pile several times creates a luxurious appearance. Cut pile is less resistant to crushing than other types of carpet.

• Saxony

Saxony's are tightly twisted cut piles that are heatset straight. Saxony's consist of two or more fibers twisted together in a yarn. They provide a soft texture for formal and informal areas. Saxonies show every footprint and vacuum-cleaner mark. These carpets have medium durability.

• Texture and Textured Saxonies

Textures are the best-selling carpets and work well in informal areas (such as family rooms and children's bedrooms) because of its soft feel. Textures are tightly twisted and texture heatset for medium durability. They have a multi-colored look that disguises tracks and footprints.

• Velvet/Plush

Velvets/Plushes are lightly twisted and have a uniform color. They are softer and more level than textures. This type of carpet is ideal for formal areas (such as formal living rooms and master bedrooms) because of its luxurious appearance. Velvets/Plushes show every footprint and vacuum-cleaner mark.

• Frieze

Frieze is a highly twisted cut pile carpet suited for high traffic, informal areas. It has short fibers that tend to curl in different directions at the surface to hide footprints and vacuum marks.

Cut and Loop Pile

Cut and loop pile combines cut and looped fibers. It provides a variety of surface textures or sculptured effects for medium durability. Cut and loop pile carpets are available in solid or multiple colors. The different levels in this type of carpet can hide dirt and footprints in formal and informal areas.

Level Loop Pile

Level loop pile is made by weaving even loops of yarn into carpet backing at both ends. This type of carpet is very durable and track resistant because of its strong loops. Higher loops create a more luxurious appearance. Level loop piles with short and densely packed loops are easy to clean. They prevent dirt from filtering into carpet. This type of carpet is ideal for high traffic areas.

• Berber

Berbers are increasing in popularity faster than any other type of carpet. Berbers limit footprints and vacuum tracks in informal areas. Berbers can have thicker yarns than other level loop pile carpets for high durability. These loops can retain dirt and may be damaged from snags. Berbers come in expensive wool fibers or less expensive nylon, olefin, or nylon-olefin fibers.

Multi-Level Loop Pile

Multi-level loop pile is like level loop pile except that the loop heights vary (usually two to three different loop heights). This carpet creates an appearance of random texture. This type of carpet is good for high traffic areas but the smaller loops can sometimes hold more dirt.

Fed Drops Rates by .50 to 1.5%

SURPRISE RATE CUT:

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Federal Reserve cuts rates by 0.50%

This morning the Federal Reserve responded to the current credit crisis by lowering the federal funds rate to 1.50%.

The Federal Reserve meets again October 28th & 29th. Will they continue to lower rates? And what does this mean for you?

GOOD NEWS in an uncertain economy
Mortgage rates are low, starting at 5.25% (5.47% APR)*
Lenders are still lending millions of dollars each day
Larger banks have over 200 trustworthy lenders on their network
Larger banks like Wells Fargo will beat the national average interest rate*

For a new loan or Refinance go to http://www.go2joe.com and click on "mortgage"

In times like these, it's important to smile and help others to do the same!

Selling your Home

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20 Tips for Selling Your Home
As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you’ll help your RE/MAX Sales Associate sell your home faster, at the best possible price.

The easiest and most reliable way to improve the appeal of your home is to enlist a quality home service professional. The right professional can help you get everything in order - from repainting the kitchen to providing a thorough cleaning - so you can stay focused on more important things.

1. Make the Most of that First Impression
   A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
2. Invest a Few Hours for Future Dividends
   Here’s your chance to clean up in real estate. Clean up the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. If you’re worried about time, hire professional cleaners or painters to get your house ready. Remember, prospects would rather see how great your home really looks than hear how great it could look "with a little work."
3. Check Faucets and Bulbs
   Dripping water rattles the nerves, discolors sinks, and suggests faulty or worn-out plumbing. Burned out bulbs or faulty wiring leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
4. Don’t Shut Out a Sale
   If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
5. Think Safety
   Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
6. Make Room for Space
   Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
7. Consider Your Closets
   The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
8. Make Your Bathroom Sparkle
   Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats, and shower curtains.
9. Create Dream Bedrooms
   Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
10. Open up in the Daytime
    Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
11. Lighten up at Night
    Turn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
12. Avoid Crowd Scenes
    Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Keep the company present to a minimum.
13. Watch Your Pets
    Dogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
14. Think Volume
    Rock-and-roll will never die. But it might kill a real estate transaction. When it's time to show your home, it's time to turn down the stereo or TV.
15. Relax
    Be friendly, but don't try to force conversation. Prospects want to view your home with a minimum of distraction.
16. Don't Apologize
    No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced RE/MAX Associate handle the situation.
17. Keep a Low Profile
    Nobody knows your home as well as you do. But RE/MAX Sales Associates know buyers - what they need and what they want. Your RE/MAX Associate will have an easier time articulating the virtues of your home if you stay in the background.
18. Don't Turn Your Home into a Second-Hand Store
    When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
19. Defer to Experience
    When prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your RE/MAX Sales Associate.
20. Help Your Agent
    Your RE/MAX Associate will have an easier time selling your home if showings are scheduled through his or her office. You'll appreciate the results!

First Time Homebuyers

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First-time Buyers
Whether you have spent years saving and preparing to buy a home, or you still aren't sure if it is something you can even dream of, the questions surrounding a first-time home purchase can feel endless.

You can find the answers – and peace of mind – by working with RE/MAX, the industry leader in experience and service.

Here are some tips to help you with the process of becoming your own landlord.

Being prequalified for a loan determines how much house you can afford. It also allows you to move more swiftly when you find the right house, especially when you aren't the only interested buyer.

Shop for mortgage rates and terms
A difference of even half a percentage point can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.

Using a buyer agent
A buyer agent is legally responsible for representing the buyer's interest in a real estate transaction. Generally, the buyer agent is compensated by the seller at the time you purchase a new home. There are some limitations to using a buyer agent, however. Before you decide, have a Realtor explain the advantages and disadvantages of using a buyer agent.

Features that help or hurt resale value
In some areas, a swimming pool actually detracts from a home's value and makes the home harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. Your Realtor can point out features that hurt, as well as those that help, resale value.

Rate the houses you tour
After touring each home, write down what you liked and didn't like. Develop a rating system which will help you narrow the field down to the house that's the best for you.

Purchasing a foreclosure!

8 Steps to Purchasing a Foreclosure!
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Preface:

GET PRE APPROVED! Shopping for foreclosures is an enjoyable venture. The idea of purchasing a property for thousands of dollars under market value is exciting. What often happens, however, is that buyers will find the right property, at the right price, but will NOT have prepared the right way. Rarely will a bank entertain an offer from someone not PRE- APPROVED. Speak to a banker before starting the home hunting process. It will gain you thousands in the end.

1.) LOCATING FORECLOSURES: There are several ways to find a foreclosure.
a.) COUNTY RECORDERS OFFICE Go to the local Court House and inquire with recorders office, or the county clerk. Ask them about any defaults that have been reported in the area of interest to you. If it has been reported, generally they will help you out.
b.) FSBO (For Sale By Owner) Look at for sale signs posted at properties. This generally means the seller needs the most out of the house and may be nearing a foreclosure. Even if they are not, you still may be able to strike a deal!
c.) VACANT HOMES This is a good indication owners have abandoned the home. You can determine whom the owner is by cross referencing the property tax records at the county courthouse, or simply ask the neighbors.
d.) PRE-FORECLOSURE LIST Check with a local broker, or REALTOR. Generally there is someone in most all real estate offices that specialize in foreclosures.
e.) LEGAL NOTICE Most defaults are posted in the local paper. These usually come out once a week. Use this information to get started.

2.)DETERMINING VALUE Determining the value of the property will consist of several factors.

• COMPARABLES: Compare similar homes in the neighborhood that have SOLD. A property listed for any dollar amount means nothing when determining value. If it has closed within the last 6 months and is similar to the subject property, it is ok to use this.
  
• DOM: Days on the market. If a home has been on the market for 485 days and has not sold, this will be a sign that it may be overpriced and should be reflected in your offer.
  
• DEMOGRAPHICS: Also school district, crime statistics, shopping, bus route, and any other amenities are helpful in determining value.

3.)DETERMINE YOUR GOALS You should establish your goals. Is this purchase for your personal use, or for your family to live in? Is this property a long term investment to hold and rent? Is this a short term "flip". All of these need to be considered. This will help weed out the prospects for whatever your reasons are for purchasing.

4.)HIRE AN INSPECTOR Every home that has ever been built has (what I call) "fluff". It looks great, the layout is great, but in reality it creeks and crumbles from faulty construction, maintenance, climate, etc. Hire a professional inspector that will look past the "fluff" and tell you what is in the "guts" of the house. How is the roof, foundation, siding, ventilation, furnace, water heater, plumbing, electrical, heating. All the important things that the next buyer will inquire about. Paint, carpet, and other "fluff" can be fixed fairly cheap. A new roof? Not so cheap!

5.)REPAIRS, COSTS, FUTURE VALUE When you have narrowed your search down to a handful of property's it is crucial to assess what each home needs down to the last doorknob. For example if you added you repairs, and compared to your future value and came up with $30,000 profit, that's exciting! If something unexpected pops up like the seals in all the windows are shot and all windows need replacing totaling $25,000, there goes all the profit. Your lack of diligence in the inspection process, or the calculation of how bad the windows are, cost you a lot of profit. Determine values carefully! Property by property. Use spreadsheets, and detailed lists to help you keep yourself organized. Have a great repairman, or handyman on hand. Someone you can trust that will help to determine the actual cost of bringing the property up to move in condition a buyer will be sure to purchase. Exact costing is critical to you success. Also just as crucial is the future value of the property when completed. This can be done by searching county records for recent sales. This is in combination with step #2 above. Be diligent in your valuation methods. Do not use "blue sky" what the market may be doing in 6 months or next year. What would the house sell for today, or 2 months. Markets turn quickly. Whatever value is determined be conservative. Do not "blue sky" yourself into thinking you're going to get rich quick on this flip. Be conservative, be cautious, and be consistent in your valuation. If you need help, consult a local REALTOR. They will be of great service to you!

6.)WORKING WITH THE HOMEOWNER If the homeowner is still involved and you are negotiating with them, be respectful, professional, and a good listener. If the home is worth purchasing often times with pride on the line, if the homeowner is treated like he or she is being forced out, they may decide to let it go to the bank and not make a deal. If you are cordial, and professional the likelihood of a positive outcome is much greater!

7.)WORKING WITH THE BANK This is where things may get a little more complicated. If there is little or no equity in the home, and the homeowner does not have the money to cover a "shortage" meaning the home is worth less than is owed, a bank may entertain what is called a "short sale". As current maket conditions become tougher and tougher to sell for what the sellers owe, banks are considering more and more short sales. How short they will go is up to each individual bank. The problem with negotiating a deal with the bank is the lack of emotion. Banks make decisions based on "bottom line" profits or losses. There is no emotion as if a seller was involved. In any case acting professionally, and cordially, will always render better results.

8.)CLOSING YOUR HOME This is just as important as all the other steps. Without the proper transfer of ownership, this can be more costly than new windows. Find a reputable title company in the area and hire them. Title insurance is important to protect you from any encumbrance on the property. This could include the neighbors fence on your lot, a play set over the lot line, title transfer was not proper 20 years prior when the home was built. Most often an encumbrance can be cured, but without a title company halping you along, it can get quite costly representing yourself.

Conclusion

Investing in real estate is an exciting, yet complicated venture. As long as you remain diligent in your search, valuation, and negotiation, success will be the end result! Avoid quick "flips" or "sure things". As the old adage goes, if it seems to good to be true, it most likely is!
For a free list visit http://www.nw4closures.com

go2joe first blog!

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Some time ago my wife and I were looking for someone to stain our new deck. I had woked my tail off on it and wanted it to look great! I asked around friends and family and nobody could come up with somebody to refer me to. I looked in a local paper and answered an ad "Great painting, great rates."

Me of course being raised very conservative "cheap" my friends would say, wanted a great deal. I remember my dad teaching me to be frugal, not wasteful! I still contend I'm frugal. Nonetheless my painter showed up and did the job. My wife had picked out a wonderful color; a very light shade of grey that would accent our home to a tee. It was a perfect weekend as we left for her folks place and enjoyed the weekend on Lake O'brien. I had finished the deck and we would leave it to the painter to put on the finishing touches.

Arriving at home late in the afternoon on Sunday, we noticed the neighbors in the yard hangin' out laughing uncontrollably. We thought nothing of it as we had a great neighborhood full of kids and laughter! We were excited to see our new deck. We turned the corner and looked in horror as our new deck was the most hideous color of "battleship gray" we had ever seen!

We of course called the painter and after several arguments, he repainted the deck with the color we originally picked. We were finally happy, but it took several weeks and conversations to get there! This was a life lesson we would never forget. Get a referral, and do not hire the "cheap guy!"

I have personally been involved in new construction for over 18 years. I have run into some of the best people working in the field you could ever find. It has always been my thought to create a site where the public could go to to find the skilled hard working guy that goes unnoticed.

Which brings me to my new site http://www.go2joe.com dedicated to all the people I trust, and would highly recommend to anybody looking for a highly skilled professional, at a very reasonable price. There are 4 simple yet important, qualities of everyone listed on this site. Professional, hardworking, honest, and their service will come at a fair price.

Thank you for visiting our site, and using the highly skilled workers on it.