Practical Money Skills
Spring-clean Your Financial Records
By Jason Alderman
Have you ever wasted precious weekend hours searching for tax-related documents? If the television died, could you locate the warranty to see if it's still covered? Ever forgotten an online account password? These are all good arguments for setting up a proper filing system.
Consider this: A recent survey uncovered that nearly a quarter of adults have incurred late-payment fees because they couldn't find billing statements. So poor paperwork management is not only time-consuming, it's expensive.
Here are a few helpful document filing categories:
Tax-related documents. These include receipts for deductible items, income and investment statements, and mortgage and home improvement expense receipts. The IRS has up to six years to audit you (there's no time limit if they suspect fraud), so keep all tax returns and related receipts and statements at least that long. IRS Publication 552 recommends what to save and for how long (www.irs.gov).
Checking and savings accounts. Enter ATM and debit card deposits, withdrawals and purchases into your check register right away to keep a running balance. Check all entries against your monthly statements for accuracy. Save cancelled checks for deductible expenses with tax returns. Banking online is an easy way to keep your recordkeeping current.
Utility, phone, cable and credit card accounts. Review bills for any errors or mischarges. Once payments have cleared, you can shred the bills unless you need a record for tax purposes (like home-office tax deductions).
Pay stubs. Save until your year-end W-2 form arrives. When your annual Social Security income statement arrives, double-check annual income amounts. If you spot an error, call 1-800-772-1213.
Investment and retirement funds. Keep monthly and quarterly statements until you receive year-end statements. Always save records of any after-tax contributions to retirement funds to prove you've already paid the taxes.
Housing. Retain paperwork on your mortgage, refinancing, lease or rental agreement. Also save home improvement receipts for possible tax advantages when you sell.
Major purchases. Save original sales receipts for appliances, electronics and other major purchases and attach to product warranties and owner's manuals. When purchasing items online, save sales receipts and shipping confirmations until the items have arrived and cleared your credit card statement.
Insurance policies. Maintain files for homeowner/renter, car, life, disability and medical insurance policies. Indicate on medical bills how and when you paid in case of billing disputes; also, save for six years if you deduct medical expenses from your income taxes.
Wills and trusts. Keep copies of your will and living trust and contact information for attorneys who helped prepare them. Important: Don't put your only copies in a safe deposit box, since it will likely be sealed should you should die unexpectedly.
Passwords. Create a list of all online accounts and passwords and store in a secure location.
A few additional tips:
Store critical documents such as your will, trusts, birth/marriage certificates, insurance policies, old tax returns and passport in a fireproof, lockable storage box. Also, keep additional copies in a safe deposit box or with a trusted acquaintance in case of major home damage.
Periodically back up information in computer files on CDs or an external hard drive.
Always shred mail or documents containing personal information rather than simply throwing away.
Consult a financial professional about your particular situation. If you don't know one, www.plannersearch.org is a good place to start looking.
Filing is a drag, but so is tearing the house apart looking for documents.
Jason Alderman directs Visa's financial education programs. Sign up for his free monthly e-Newsletter at www.practical-moneyskills.com/newsletter.
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Business Exchange
Are We in the Business of Keepin’ Blacks Back?
By William Reed
In her recent tour through Southern Africa, U.S. Assistant Secretary of State Jendayi Frazer sought to press regional leaders to take a tougher stance against Zimbabwe's President Robert Mugabe. To hear Frazer tell it, the reason Zimbabwe’s economy is close to collapse is due to Mugabe’s government’s economic mismanagement and repression. The African American Secretary of State’s position is that Zimbabwe “would have been a prosperous country,” but is now in ruin because of Mugabe’s government. She is urging Zimbabwe’s neighbor governments to help nudge Mugabe’s regime out for “a democratic government”.
The “democratic government” Frazer promotes is the Movement for Democratic Change (MDC). Mugbe’s ZANU-PF party people say the Anglo-American agenda Frazer is promoting “menaces their ability to govern” and is the cause of the country’s spiraling inflation and its public’s plummeting standard of living. They allege that the West’s sanctions and interventions are a familiar imperialist pattern: soften the nation with sanctions that cripple the economy; blame the resulting economic disaster on the government to build support for the opposition; fund opposition party, press and anti-government NGOs to tilt election processes in directions favorable to Western interests; and, sponsor and encourage opposition mass actions.
The Anglo-American coalition began applying economic pressure on Zimbabwe in 2001. The World Bank and International Monetary Fund (IMF) started to dissuade international bankers from extending Zimbabwe financial credit. The IMF declared Zimbabwe ineligible to use its general resources and President George W. Bush signed into law the Zimbabwe Democracy and Economic Recovery Act of 2001, directing the Treasury Department to instruct U.S. members of international financial institutions to oppose and vote against any extension of any loan, credit or guarantee to Zimbabwe. The law also authorized President Bush to directly fund opposition media as well as “democracy and governance programs” for organizations opposed to the government. The British government too opposes Zimbabwe having any access to international financial institutions and has threatened to eliminate financial assistance to southern African nations unless they too impose sanctions on their neighbor.
Zimbabwe’s critics don’t know what the region’s Africans know: Anglo-American financial restrictions have made it nearly impossible for Zimbabwe to engage in normal international trade. Nearly all external lines of credit have been obstructed; and, as a result Zimbabwean companies have difficulty finding access to offshore lines of credit. The country has immense potential for growth given the huge natural resource base, a highly educated and skilled workforce and access to regional markets. But, Zimbabwean companies are compelled to deal with international suppliers strictly on cash up front basis and minimal credit terms.
Neighbors know Zimbabwe imports 100 percent of its oil, 40 percent of its electricity and most of its spare parts and, that what Zimbabwe is suffering from is a lack of access to foreign exchange. The economies all countries rely on international financial institutions to transact normal trade but, Zimbabwe’s sever shortages in imports, business closures and 70 percent unemployment rate is directly due to an inability to muster foreign currency.
The agenda Frazer is promoting has been very obvious to Southern African leaders: exploiting Zimbabwe’s economic discontent and bankrolling the MDC. But passage of a law making it illegal for political parties in Zimbabwe to receive funding from abroad has been an obstacle to the MDC and its backers. There’s little appeal for the MDC program among rural populations. MDC programs calls for privatization of state owned firms and government services. ZANU-PF programs did away with land ownership patterns that were concentrated among a few white commercial farmers.
Secretary Frazer’s plea for Zimbabwe’s Southern African neighbors to oppose Mugabe fell on deft ears. Members of the Southern Africa Development Community (SADC) know Mugabe as an African icon, and the harm Western sanctions have wrought on Zimbabwe. In rebuffing Frazer, SADC leaders “reaffirmed solidarity with the government and people of Zimbabwe” and appealed to Great Britain in a clear message to “honor its compensation obligations with regard to land reform,” and called on the Anglo-American alliance to “lift of all forms of sanctions against Zimbabwe.”
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O’Malley Announces BPW Approval of 12 Local Park Improvement Projects
By Office of Communications, MD Dept. of Natural Resources
By Office of Communications, MD Dept. of Natural Resources
ANNAPOLIS, Md. – Today, Governor Martin O’Malley announced Board of Public Works (BPW) approval of $2,083,399 in local-side Program Open Space (POS) funds for improvements at 12 park and recreation facilities in five counties across Maryland. Land for a new 66-acre community park in Harford County and expansion of two existing community parks in Washington and Harford Counties will be preserved thanks to the state-funded grants.
“Local-side Program Open Space serves to improve and expand community recreation facilities so that children and working families can participate in and watch outdoor sporting games, enjoy leisurely walks, and picnicking in their hometowns,” said Governor O'Malley. "I am proud of the role that the state plays in continuing to improve and expand local outdoor recreation opportunities through Program Open Space grants.”
Funding for the following projects was approved today:
Carroll County will receive $53,190 for three park improvement projects including:
A $16,200 grant to construct three dugouts at the Summit Ridge Baseball field in Mount Airy.
A $10,800 grant to install a wrought iron fence along the eastern border of Wildwood Park in Mount Airy for public safety and park security.
A $26,190 grant to construct handicapped accessible restroom facilities in Watkins Park in Mount Airy.
Garrett County will receive $405,000 for two high school athletic facility improvement projects including:
A $207,000 grant to renovate the team rooms, concession stand and press box used with the track and field, football and soccer fields at Northern High School in Accident.
A $198,000 grant to renovate the team rooms and press box used with the football and soccer fields at Southern High School in Oakland.
Harford County will receive $1,031,500 for local park expansion and new playground equipment including:
A $714,000 initial grant to partially fund purchase of 66 acres in near Dublin for a new community park. The new park will protect existing wooded areas, while also offering new athletic fields, picnic pavilions, and a play ground once fully developed.
A $60,000 grant for new playground equipment at the Francis Silver Park in Darlington.
A $212,500 grant to expand Prospect Mill Park in Bel Air by 4.1+ acres.
A $45,000 grant to install a new playground at Riverside Elementary school in Joppa.
Prince George’s County will receive $448,209 for two recreational facility improvement projects including:
An additional $375,000 grant to construct a new show ring at the Prince George’s Equestrian Center.
A $73,209 grant for a new multi-purpose court, parking areas, and walking paths at Arbory Park in Laurel.
Washington County will receive a $145,500 grant to expand Veterans Park in Smithburg by 2.5+ acres for new athletic sports fields.
Since January 2007, Governor O’Malley and the BPW have preserved more than 1,953 acres of natural areas for public recreation, and watershed and wildlife protection in 61 public parks across the state. Since its inception in 1969, Program Open Space has funded preservation of 322,772+ acres across Maryland. Most Maryland residents live within 15 minutes of a project funded through Program Open Space.
Chaired by Governor O’Malley, the Board of Public Works is also comprised of Treasurer Nancy Kopp and Comptroller Peter Franchot. The BPW is authorized by the General Assembly to approve major construction and consultant contracts, equipment purchases, property transactions and other procurement actions.
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