Is Dell Computer On Its Way Back?
A few years ago I purchased a Dell Dimension desktop computer online (and by phone; because Dell has primarily a virtual sales model versus retail stores). Just about every one of my phone calls with questions landed in a foreign country where English was a second or third language – Argentina, Brazil, and not surprisingly India. Besides the language barrier, there was also the customer service gap. These people were reading a script and process flows, versus truly understanding the business needs of the Dell customer.
I bought the computer anyway, but had buyer’s remorse when I had to call in for basic support and got routed around the globe when trying to reach a decision-making supervisor in the US. Here is a little hint: call in the morning if you can. In my experience, you have a better chance of reaching someone stateside in the am. Also, if you contact someone in sales, they might be able to help you.
Again, I have no problem dealing with foreign customer service people if they can help and are empowered to help and want to help and understand how to help. Otherwise, like so many other Americans, “just let me talk to an American who speaks English – or better yet, American.” I think Dell might be starting to see the light.
Once the number 1 seller of computers, Dell is now in the number 2 slot (and there is a reason for that). Founder and CEO Michael Dell now says that number 2 is not good enough. It is a little late in the game, but not too late.
Another case of Dell buyer’s remorse was that even after my own purchase, I recommended that my mother-in-law purchase a Dell. Unfortunately, she went through even more headaches than I did due to issues around a faulty CD player; years worth of headaches and run around with customer service. But, ultimately Dell accommodated her by rebuilding her machine and replacing the faulty components. Just about too little too late. But not quite.
Be sure to check out my next article on How Dell Computer Is Winning Customers Back.
Avoiding The Tax Pinch, and Getting Electronic Assistance
It happens every year, and now it is happening again. It is tax time. Whether you are an employee on a W2 status, or self-employed on 1099′s, or both, or neither, if you have received any income in the United States, you are required by law to report it on a federal tax return.
For some folks who have only W2 income and basic deductions, a simple Form 1040 will do the trick. But for anyone who has self-employment income, expenses for higher education or mortgage expense or casualty loss, or income from investments of the sale of an asset, or any of 1,000 other types of income or expenses or events, then the simplicity of the 1040 disappears. Other forms are needed.
No More Waiting at the Post Office; Now Click-N-Ship
We don’t do a whole lot of mailing via the US Postal Service anymore, but when we need to, those old nightmarish images come back to mind: standing in an interminable line waiting to deal with someone who does not like their job – or worse yet, someone who loves their job because they think they are hired to neglect and abuse the taxpayers. Well, the other day my wife needed to mail some clothing to a friend. We have a very busy household, and even the simplest of activities can take too much precious time. However…
…Instead of dreading a trip to the post office to stand in line to ship a package, I told her to do it online. Just a short trip to the USPS website.
Washing Dishes, A Job That Needs To Be Done
It was taking as much time for our family of 7 to get dishes off the table and into and out of the dish washer and back into the cupboards and drawers is it was doing them by hand. Plus, it was often difficult to tell whether the dishes in the dishwasher were waiting to be cleaned or waiting to be put away. And that made it easy to put it off until it was too late; meaning that if they were dirty when we needed them, we ended up having to do them by hand anyway.
The fact that our old GE dishwasher was a poorly working hand-me-down helped make it an easier decision to retire it. I simply removed it and set it out with the trash. In its place we now keep our family-sized 40 gallon trash can – which we fill every 1.5 days!
What Your Broker Hasn’t Told You About Your IRA
Brokers and banks have a vested interest in keeping a little secret from you. What’s the secret? The secret is you don’t need them to hold your IRA or tell you what you can or can not invest in. For the most part, the IRS doesn’t care what you invest it as long as you meet certain requirements. You can buy raw land, live animals, a Subway franchise, even create a corporation inside your IRA as an investment medium, complete with a a checking account and a debit card. Obviously you can’t buy your own home with IRA money and attempt to live there free, nor can you rent it to a family member. But you can remodel it and sell it for a profit – no taxes since it is inside a tax qualified entity.
Banks and brokers know this but have no incentive to see you transfer your IRA to another custodian like Sterling Trust Co. who has a who department dedicated to show you how to use your IRA money to invest in almost anything. Be careful and consult your adviser.
For more information contact:
David H. Disraeli, CFP(r)
david@lifepln.com
Cure for Stock Market Blues
Tired of investments that go bump in the night?
The past 18 months have been anything but steady for traditional investments- those like stocks, mutual funds and bonds. In fact the S&P 500 earned only 5.5% last year and has already lost that and more so far this year. As a money manager for the past 22 years, I’ve used all sorts of traditional investments and techniques. But they all have one thing in common – they are dependent on a cooperative general market trend. So what’s a person to do when things get ugly.
Well the current sub-prime mortgage debacle has actually created an enormous opportunity for savvy investors. Most banks have drawn in their reigns which puts many, borrowers with good projects into never never land. What I’m leading up to is the concept of investing directing into secured real estate notes, just like a bank with an appraisal, title policy, servicing agent – the works. Except you get the interest and don’t’ have to support a bank lobby, tellers, ATM machines and stodgy management’s salaries.
How does it work? For more information check out my own blog. Most of the notes we fund have a loan to value of 70% and pay 14% monthly interest. Is there risk? Of course but very different from the stock market.
David H. Disraeli, CFP(r) david@lifpln.com
Minireview: The Olive Garden is Nice and Green
First of All,
HAPPY VALENTINES DAY!
And that brings me to my point… Olive Garden is currently performing satisfactorily to my consumer’s taste. And that is a good thing, since I took my familiy there last night as my Valentine’s gift to them. Evidently, lots of others feel the same way, since the place was packed on a Wednesday evening.
A friend of mine calls Olive Garden “the Denny’s of Italian Food”. For a while I couldn’t argue with him. It seems like the Garden went through a spell of faltering the in food quality department. For me as a patron of theirs, it means that I stopped taking my family – and my money – there for a while.
It is not uncommon for a restaurant to fall short of the mark. That can be overcome. But it is dangerous when the entire chain does it. That is an indication of some change in management and/or corporate policy. The customers’ feedback is the most important thing a company has to keep things going or get them back on track. However, sometimes customers get tired of telling a company something it should already know, and instead they just stop going – and worse, tell their friends about their bad experiences.
Anyway, Olive Garden appears to have their “game back on”.
Scammers Taking Advantage Of New Federal Economic Stimulus Package
Be careful whenever you are contacted by someone offering to help you do something that is government-related, or if they claim they are from the government. Typically the government communicates through official established channels such as the news or their website. Regardless of how you hear about something like tax rebates or homestead exemptions or Social Security checks, be sure to check it out for yourself on the official government website such as www.irs.gov or www.whitehouse.gov (be sure to note the “.gov” domain extension on the website address).
CONSUMER ALERT
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The IRS Is Your Silent Partner
Would you go into business with a silent partner who said that you could have 66% of the profits of the business unless he changed his mind?
Sounds crazy except you’ve already done it. The IRS gets at least 1/3 of your profits when you add up FICA/ Medicare, income taxes etc. If you own an IRA it’s even worse. In the US, we have what I call two tax systems: The voluntary tax and the involuntary tax. People continue to pay taxes voluntarily because of lack of planning. Involuntary taxes are the ones you pay because you have to.
The problem with tax deferred assets like 401k’s and IRA is that you only own 66% of the account. No matter what you do, you can’t get your hands on the IRS’s 33%. Try it and you’ll see. Either you pay it or your kids pay it. And the propaganda that time value of money is working for you is wrong – just do the math.
What if you could convert a taxable asset like and into a tax-free inheritance to your heirs? Sound too good to be true? We’ll its not. Its called wealth transference and its done using insurance and the transfer mechanism. Not just any insurance, but a specially designed policy that allows you to use your IRA while you may need it, but converts it into a tax free inheritance to your spouse or children.
For more information contact me at
david@lifepln.com
David Disraeli, Certified Financial Planner
McDonalds Invades Starbucks’ Space
Starbucks stock has reportedly lost half its value over the past 12 months. A weakening in the economy has something to do with it, as well as a new competitor of sorts… McDonalds.
McDonalds? Yeah, I said the same thing at first. But after thinking about it for a moment, I guess it did not sound that strange after all. You see, I have been drinking McDonalds’ coffee for the past two years of my own volition – meaning, I like it. In fact, I like it a lot (with 9 sugars and 5 creams in my large, please). It, like Starbucks, both beat the heck out of gas station or restaurant coffee. But often times Starbucks coffee tastes burned or over roasted to me. However, I still enjoy coffee drinks at Starbucks, even if their regular coffee has now has a new rival. But, that is exactly where McDonalds plans to take aim – in the specialty coffee drinks market.
Last week I heard that a Starbucks in Seattle is now offering a cup of coffee for a dollar. It is called a “short”. I would assume that it is shorter than their “tall”, which I have always known as their shortest. Perhaps Starbucks is getting serious, now that McDonalds is. It will be interesting to see how the beans roast on this one.
