The IRA Conundrum

When I say "Roth" what do you think?

If you're from my neck of the woods, you probably immediately think of the best sound on the radio - the voice of Bill Roth - the announcer of the Virginia Tech Hokies.


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He has this wonderful quote that opens every VT football game, "From the blue waters of the Chesapeake Bay to the hills of Tennessee, the Virginia Tech Hokies are on the air!" And then you hear the Virginia Tech fight song, Tech Triumph, which, despite popular belief, it is not "Enter Sandman."  Although playing the either is sure to bring down the house in a most raucous way.  Just ask Miami.

Ok, I'm digressing.  I'm seriously missing my college football.  (Can you tell?)

No.  The Roth I'm really referring to is Roth IRA's.  In the past couple weeks, I've gotten at least 4 different questions on about IRA's. 

Roth vs. Traditional

Here's the scoop...in layman's terms.

Traditional IRA contributions are deductible (up to a certain point) in the year when you make the contribution.  Making them basically tax-free.  But when you draw on them, during retirement, they are taxed at ordinary tax rates.

Roth IRA contributions provide no deduction in the year of contribution, but the draws are tax-free when you meet the minimum requirements.

I see both sides of the coin.

Some financial planners always push traditional IRA's.  It's the general thought that you are most likely going to be in a much lower tax bracket during retirement.  Therefore, you need the deduction now, while you're in a higher bracket.

Roth IRA backers say that you should always use them because you don't know what tax rates will be in the future.  Pay the tax now so that you are guaranteed tax-free money then. 

So which do you choose?

Um...it's really up to you. You can't go wrong by saving for your future. i plan on being a millionaire when I get older so I'd rather pay my taxes in the poor rates.
Hope this helps a little.  However, if you've got some serious money to invest, you need a professional financial planner and not me.  They can run your present & future value, rate of return calculations and all those other fun things the rest of us slept through in Corporate Finance.




All this talk of football has made me want to wear a sweater and eat chili...  Of course, it doesn't help that Pandora keeps randomly playing songs from Trans-Siberian Orchestra.






PS - I've only gotten one guest post.  I'm begging & pleading for help here people.  :)  Surely you have something to share.  Even you don't have time to write it yet, just let me know you're planning on it so I can stop stressing over it.

Por Favor?

Two quick things tonight...

First...

Here in the next few weeks, I'm taking a vacation...

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And, in case you've been living in a hole, my baby girl is having surgery. 

Needless to say, I doubt I will be on here much.  (I know you're thinking, "What's different than now?")

I would love to take this opportunity to invite some of my readers to guest post.

It doesn't have to be financial related, but it would be good if it was.  If you're a teacher, military spouse, housewife, sole breadwinner...

I want to hear from you!

I want to hear about your successes, failures, your takes on life.  Really.  Anything is appreciated.  And if it's just your opinion on my red high heels, I'll take that too.



Secondly...

I ran a mile tonight. 

I've been working on losing weight since January.  I only have about 15 pounds left and it's gotten painfully slow. 

So last Thursday I added something new into my routine.

EXERCISE

Go ahead and laugh.

I'll wait.





You're still laughing?


Ok - better now?

See, Sarah doesn't do exercise.  Ever.  And I certainly don't run.  Even in high school when I was actually considered an athlete, I don't actually remember running a mile straight. 

Don't expect me to sign up for any 5K's or half marathon's.  But I'm pretty darn proud of myself.

Happy Cinco de Mayo

Happy Cinco de Mayo!

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Hope you had a blast today!

Want to know what I did today?

A BIG FAT NOTHING!

Well, that's not entirely true. 

After my phone strangely went ka-put last night, I went to the local Verizon who promptly told me there was nothing they could do except buy a new one - at $500.  See, apparently, even though my phone is only 8 months old, the warranty only covers the "phone" and the charging port isn't part of the phone, regardless of the fact that you can't use their phone without a working charging port.

Score:  Bad Day 1 -  Sarah 0

(But I did call the most awesome Verizon store ever, ProCom Wireless, who fixed me right up.)

Then, I took my kids to a local Law Enforcement Memorial Parade.  It rained.  But they did get to see their daddy march in the Honor Guard.  I'll call that a tie.

Score:  Bad Day 2 - Sarah 1

Then we came home for nap time.  Where my kids refused to actually sleep at the same time, much to the dismay of their mother who only had about 5/6 hours of sleep the night before.

Score:  Bad Day 3 - Sarah 1

Then we stayed home and celebrated Cinco de Mayo with homemade tortilla soup.  Exciting, right?

I know...not so much.

Why so boring?  Because moi had her screw up of the year and forgot to put a rather large check in the checkbook register.  And when the family had all this "extra" money, she bought her husband an iPad.  Yeah...not really feeling like doing the Cha-cha right now.

Score:  Bad Day 603 - Sarah 1

Oh - and on top of all this - yours truly was investigated this week by the our IA dept.  Why?  Because when their piece of trash computer refused to read the CD they gave me to do 98% of my research, I got a program from a friend that would maybe, just maybe, get it to work.  Turns out, the thumb drive he gave me had some other not-so-kosher programs on it.  (Get your mind out of the gutter - not those kind of programs.)

Score:  Bad Week 1503 - Sarah 1

Back to today...

Then since my husband worked 10-10 today, I did everything...alone...except for the three kids, four years old and under.

So, I bathed my kids.  Girls first.  Then the boy.  I turned my back for a minute and then this happened...

Fully dressed...in the bathtub.

Yep - the one with hip problems climbed in by herself.

Score?  Bad Day: 1803 - Sarah: 1




So, as you can tell, this really hasn't been a banner day for me.  But I hope you had your fill of chips, salsa, and celebration! 



But hopefully, you had a great day.

Baby Hanwah - Update

For all those praying for our Hannah...

Our Mess of  a Baby Girl

The pediatric orthopaedic (is it orthopaedic or orthopedic?  I've seen it both ways...) confirmed she did have hip dysplasia in both hips.  We really liked the doc.  She's straight forward, which I appreciate.

Not treating Hannah is not an option - not really.  She'll develop a limp before she's 10 and have arthritis by the time she's 20.  So no, we cannot do that to her.

The doctor wants to do something called a "closed reduction" where basically Hannah will go into the OR under anesthesia and they will manually force her hips in place.  I know...it hurt even describing it.  She will then be placed in a body cast for 3 months.  (If you want to google it - it's called a Spica cast.)

The doctor is almost positive that Hannah's right leg will move in the correct place.  She is not positive about the left. 

If the left does not go in place, then they will immediately do surgery and basically cut her open from hip to mid-thigh and force it in place that way.  So we actually won't know what is happening, till it's over.  Which as a nerd, I hate not knowing and being able to plan.

Either way - we will be dealing with an immobile little girl for 3 months.

As you can imagine, we're still processing all of it.  I know it's not cancer.  I know it's not Downs, or autism.  It's curable.  I don't need reason at this moment.  My head knows what's right.  But my mommy heart hurts.

I look at a little girl who on the outside seems perfect but walks a teeny bit funny.  And she's so happy.  And she trusts me to keep her safe and from pain.  And I have to hand her over to a doctor and know that when she comes back to me she'll be "worse" than when she left me.  And there's no way I can warn her.  She won't understand.

It's not the surgery that scares me.  It's the fact that she won't be able to swim this summer.  There will be no playing in the playhouse.  No swinging outside.  No pushing her favorite stroller around.  No toddling around the house and getting her favorite thing ever - fruit snacks.  I will have an infant with the mind of a 2 year old.  Who knows what it was like to free and doesn't know why Mommy did this to her.

Sounds incredibly selfish.  It's me that I'm worried about.  Is she going to hate me?  Does this mean no one will want to watch her?  Will I be on duty 24/7 plus trying to work, plus trying to manage 2 other kids? 

I wish I was handling this better, but I promised you one day 1 of this journey I wouldn't lie.  I'm a hot mess.

Everyone has been so supportive.  And everyone asks what they can do.  This is what we need:

1.  Pray for Hannah - first and foremost.  Pray she responds well.  That she doesn't fight it too much.  I'm prepared for the day of and after the casting to be absolute H - E - double hockeysticks.  So if it's not, that would be a great relief.

2.  Pray for no surgery.  While it won't change the body cast dilemma, it would be one less worry on our mind.  No wound to have to fret over.  And lastly, no scar.

3.  Pray for us.  I'm good one moment and terrible the next.  I might need to refill my prescription for Xanax.  :)  Mr. DDA - is being all tough about it, but between you & me (and the 6 billion people out there on the Internet) I think he's a teeny bit worried & upset over it.  If I can't get Xanax, I'm sure a new pair of LK Bennett shoes will have the same effect.

I know some of you out there have much bigger worries to deal with.  And like I said, my head knows there are thousands of moms who would trade places with me.  I'll promise not to overwhelm this blog with poor, poor me updates and get back to money topics soon.

Thank you all for your support & encouragement.  When you message me or text me or Facebook me, I appreciate every single one of them. 

Now, enough crying for today...it's my first day off on my new schedule and I'm going to enjoy it.

To the Peanut Gallery

Ah, well that last post certainly grew legs, arms, and maybe a right shoulder...

I enjoyed the banter and the different views.  Some of you may noticed that I had to eliminate the comments.  It's not because I didn't want opposing opinions.  I think it's great.  It doesn't bother me if you disagree.  Some of my favorite friends are liberals.  But someone decided to use my blog to futher their personal vendetta against the school.  This is my opinion and has nothing to do with the school.  They are innocent in this and I will not let them suffer because of my post. 

But for those of you who can't tell the difference between the eraser and the lead, the point of the post was:  Is a Christian school perfect?  No.  Is there sin at a Christian school?  Uh...yeah.  Is there stuff that goes on that shouldn't?  Yes - I was a part of a lot it.  Do we miss out on some good things that would probably be valuable to us all later in life?  Yes.  But I would gladly miss out on those good things to miss out on the bad things. 

I think it's healthy to have both sides even if I may not agree.  It was a fun break from my new reality.  Thank you for that.

My Gripe with Christian School Graduates

Most of you know that I rarely keep my opinions to myself.  But I usually try not to call people out on their (obviously wrong) views on life.

But one too many Christian school graduate has gotten on my last nerve by complaining about their poor, poor, pitiful me life.

So I'm going for the jugular. 

I went to a small Christian school.  K-4 through 12th grade.  Then a larger Christian college, but still small compared with public colleges. 

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I'm constantly seeing my old "friends" from school complain about missing out because of their sheltered life, lack of education, blah, blah, blah.  So I'm going to jump on the bandwagon and complain.

Because of going to a Christian school, I missed out on:

1.  Learning what sex was in the 2nd grade.
2.  Being taught that I came from a rock, then a monkey, and that I'm only here by a freak accident.
3.  Wondering why Sallie has two mommies.
4.  Knowing that the real F-word was not "fart."
5.  Prom - and getting pregnant after prom.
6.  Drinking myself into an oblivion on Friday nights.
7.  Learning how to hold a cigarette in one hand while fixing my hair and driving with the other.
8.  Having to give a presentation on the foundation of America and having to leave out all references to God.
9.  Being taught how to put a condom on a banana before I even hit puberty.
10.  Being told that I'm lucky if I can find one person in this world who may love me for a few years - much less a Savior who gave His life for me, knows every hair on my head, Who hurts when I hurt, and loves me unconditionally.

You know what? 

I didn't get to play soccer.  I didn't get to be a cheerleader.  I didn't get to dissect a frog.  College was the first time I had to go from "class to class."  I only wrote a handful of papers in high school, but I knew how to write a book report on great martyrs of the faith.  I guess you don't count weekly devotionals to the whole class as a presentation - but I do.  The closest thing to prom I had was a sweetheart banquet where I took my dad!  (And I still consider it one the best dates in my life.) 

A lot of people would look at my life and say I missed out.

I missed out on spring break - and coming home with an STD.

I missed out on drinking and then getting to spend the night in the county jail.

I missed out because a cigarette has never touched my lips.

I missed out because the first time I had sex was after I was married.

I missed out because I have NEVER touched, seen, or even been in the presence of illegal drugs.

And the end of the day, when I stand before God, I'm not sure any of the things that "I missed out" on will matter much to Him. 

I have a great husband that I met at my Christian college.  I have three amazing kids with that husband.  I have a great job - thanks to a great education.  I show up to work on time because I was taught ethics at my school.  I go to sleep at night with a clear conscience (except when maybe I go overboard on my blog.) 

But you can blame my little Christian school for this.

Baby Hanwah

Meet Hannah.

Hannah is the blonde hair, blue eyed child in front.  We still have no idea where she came from.  As we've talked about before, she is our miracle child.

She's affectionately known around our family as "Hanwah" thanks to a minor speech impediment of Morgan.  The curly haired, talks non-stop child behind Hannah.

Hannah took her first steps on Thanksgiving Day 2011. 

By January, I knew something was amiss.  Hannah didn't walk like a normal child.  You might not notice it at first, but there was something just...off.  We took her to the doctor in February.  Her pediatrician that I love with all my heart, didn't see any cause for concern.

Last Wednesday, Hanwah went back for a check up and was immediately referred to an orthopaedic doctor. 

This morning, Hannah was diagnosed with Developmental Dysplasia of the Hips.  It was not the news I was expecting.  I thought really and truly I was just being an overprotective mother making too much out of something.

Now I know this is not life threatening, but in our world this is life changing.  She sees a pediatric orthopaedic specialist this Thursday.  I will know more then.  But thanks to WebMd, I've terrified myself with all the possibilities.

I know without a shadow of a doubt, God wanted Hannah here for a reason.  And I know this is part of His plan.  But could I ask you guys to please pray for our Hanwah? 

Like I said, we'll know more on Thursday.  If what I read is true, and you know how that goes, it's going to be rough road for our little girl the next year or so.  And mommy isn't handling it too well herself.
 

The Ghost Whisperer

I'm the ghost whisperer.

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Actually, I have no idea what that is.  Never seen the show.  I wouldn't mind looking like Jennifer Love Hewitt.  Even during her so-called "fat period" when she wore maybe a size 6.

I digress...

Anyhow, from my wiki search of it, she talks to dead people and helps them cross over.  Ok.  I don't talk to dead people and I sometimes have panic attacks on a long bridge.  (Or in tunnels - really bad in tunnels.  So bad that I will drive 45 minutes out of the way before I will go in Big Walker Mountain tunner.  Norfolk, Baltimore...don't even try getting me through there without a Xanax.)

Again, I digress...

So I guess, I'm not much of a ghost whisperer.  Maybe I'm the tax whisperer.  Or the money whisperer.  Neither is a very catchy title for my new tv show.

Ever since I was in high school, people shared things with me and I had no idea why.  I knew some of the deepest darkest secrets of most everyone there. 

Even now, I seem to attract those who need an ear.  Even the cashier at Target...  I know way too much about her bodily functions.

In my job, people are normally instructed to speak to me as little as possible, yet, I end up knowing about their daughter's divorce, their churches decision to get new carpet, and their last visit to the acupuncturist.

Too whom much is given, much is required.  I feel honored (and occassionally completely weirded out) that people share their life-changing burdens as well as the most mundane details.  Feel free to share anything and know it stays with me and me, only. 

BUT - all I ask is that you keep these things to yourself - or at least keep them from me:

1.  Your personal sicknesses...  I really don't need to know about your latest UTI, cashier at Target.  Or how soda makes you feel bloated.  I really just want my coupons not to beep and get out of there.

2.  Your position on how I spend my money.  If you ask me my opinion.  I'll give it to you.  If you don't, I won't.  If I have worked, have earned, and can afford something nice and I get it, I really don't want to hear from you on why I shouldn't have bought it.  Now, if I follow my "I got it" statement with whining about how I'm going to pay for groceries, feel free to let me have it.

3.  Your private techniques.  I don't think I need to explain further, but really, if it's about a private moment - KEEP IT PRIVATE.  I really, really, REALLY, don't want to know.

I was trying to alliterate with P's.  I know you appreciate that...

Other than that, I'm game.  You can tell me anything. 

But those three things, just tell dead people.  They care; they told me.

Hallmarks of Idiots in Charge

If there are any readers left...hi!  I'm not doing too good at this lately, am I?

Basically, it comes down to this:  I need sleep.  Period.  End of story.  And at night, when my computer stares at me from the dresser, I think to myself, "I'd rather go to sleep 30 minutes early than write on my blog."

So, yes, I was being selfish. 

Glad I got that off my chest.

Now, I'm going to get on a soapbox.  If my whole tax, financial, credit counselor career doesn't work out, I'm going to start a managerial consulting service.  And specifically target governments and governmental organizations.

In my humble opinion, the better you treat your employees, the more you get out of them.  Many organizations are changing the "rules" on their employees to cut costs.  Yet, they're idiots if they think that's going to work.  Am I totally confusing you?  Ok...

Example 1:

At a former employer, they got tired of people racking up tons of leave and then having the audacity to get sick and get paid for six or eight weeks of surgery & recovery time...  (I'll just say it.  They were cheap.  Painfully cheap.  I.e., couldn't even get post-it notes cheap.  Had to use scrap paper.) 

Anyhow.  Makes sense at first -a huge expense for no production, right?  Their solution:  We're going to reduce the leave that our employees can carry over from year to year.  That will save us big money, right? 

NO!!!!!!!!!!!!!!!!

Are you really so stupid to think that people will willingly give up their earned leave?  A local government just announced that they were going to do this.  I just shook my head.  If an employee has earned leave, sick/annual/whatever - they will use it rather than lose it.  So instead of saving money, you are now paying people to stay home sick on days they could be working because they're not going to give you back that day!

Stupid #1.

Stupid #2

Announcing a new policy AT THE WORST POSSIBLE MOMENT IN YOUR HISTORY!

Say Jane in your office commits a cardinal sin; she knows she messed up and is truly repentant and you decide not to fire her...  Don't announce a new policy on the matter the next day.  You've already decided not to fire Jane.  Last thing you or her need is a new written policy circulating around the office the very next day.  You will only embarrass her.  Regardless of how discreetly you think you are - YOU'RE NOT.  You have the TACT OF A DO-DO BIRD...specifically the one in Alice in Wonderland...

Do you really need to add to the stressful situation at that particular moment?  Everyone knows what happened and that it will NEVER happen again.  I understand you need a policy on it but rightthissecond?  Really?  When you've already waited this long...

Wait till she's on vacation.  Pass around the policy.  Make sure she gets a copy in her stack of incoming mail.  Ta-da!  No awkwardness and yet effective.

Stupid #3

Being a morality judge.  Stupid, stupid, stupid.

You are an employer.  Not a judge; at least until you wear "the black dress" as one of my heroes, Judge Marilyn Milian says.


Yes, I liked her on Facebook.

Until your employees personal life affects your business, it's off limits.  Jane coming in hungover every day is unacceptable.  It obviously affects your business.  But if Jane has a stomach made of lead and you don't know if she spent the night with her cat and the latest Nora Roberts movie or at Coyote Ugly - it's none of your concern.

Oh and by they way, if you tolerate Jane coming in hungover, expect John to start coming in hungover..k?

Stupid #4

Underestimating your Employees

Employees are like your children.  They see the "real" you.  Despite the acts you may put on, they can tell if you like them, if you don't.  If you care about them, if you don't.  If you're selfish, if you're not.  They know.  K?  And if you play games with them, they know it. 

If you're whole goal is to make as many chocolate bunnies as possible every shift so you can get your bonus, they'll know it.  And you can be as rude, as sickeningly sweet, as hateful, or as aloof as you want - they know the end game.  You can not underestimate their intuitiveness.  And till you care about them, they won't care about your - or your chocolate bunnies for that matter.

If you can't care about them, you're not management material.  Get out of the business now.

I was going to have 5 "Stupid's" but it's past my witching hour and I think I'm just beginning to ramble now...  But seriously, if you have an idiot boss, call me. 

That would make an awesome reality show!  I'm going to patent it - or copyright it - or both maybe.

How to Deal with a Setback

So, we've all been there... Things are going along just peachy... We're working our snowball, or avalanche, or other method, then... BOOM! Our world gets rocked. And we find ourselves with new worries and concerns that didn't even exist a month ago. And one of them, even if it's not highest on the list, is the financial fallout. All of the sudden, we have less money that needs to do more. We keep hearing that the recession is over, but it isn't. Not by a mile. This post is inspired by a friend's recent stroke of misfortune. His company recently told them all they could each take a 10% pay cut or 15 employees would be let go. To their credit, a unanimous vote was rendered... So how do you deal with a $5000/year setback? First, let's break it down... $5000 per year translates to $416/month, net of taxes you have to replace $312 per month. First, cut all your "disposables" by the same amount - 10%. Groceries, gas, gifts, etc... That will probably take care of $100, but let's say $112 just so we can start dealing with round numbers. $200 to go. Next, cut the cable. It's the most obvious, and maybe most painful option. There's another $50. Don't forget, if you tithe, that will drop. There's another $50. This last $100 may be the hardest to compensate for. There are several options. You could change your cell phone plan. Could you live without your smartphone? Research insurance rates - higher deductibles, different companies. $50 left... Try not to touch your retirement or savings, because if these amounts are a % of your salary, they will be reduced already. Don't cut your health or life insurance either. Not having these can make a bad time turn dire. Lastly, cut your debt repayment by the remaining amount... So, there. How to deal with a financial setback. Im thinking about sending my plan to Congress. They're the only body I know that asks for a raise when told they need to cut expenses.

The Hunger Games

So, last July, my sister began harassing our entire family to read these books called "The Hunger Games."



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I refused. 

Just like I had refused to read anything with Harry or Potter in the title.

Just like I had refused to read anything about a vampire and a werewolf.

It's not that I don't like reading.  I love to read.  LOVE it. 

Where else can you be a Scottish maid that's been kidnapped by the Laird?

Or a London debutante getting ready for her first season?

Or a pioneer who marries her arch enemy just to go west?

I love to read.

I just don't have time to read.  Really.  I know it's lame but it's the truth. 

But the last book I read was "Baby Wise" about 5 years ago.

Regardless, last week when my entire family purchased their midnight tickets to the premiere of "The Hunger Games," I threw $10 in the pot...mainly because I missed the 3D midnight showing of "Star Wars I."

(Yes - I know...just say it, "NERD!")

But I went.

Without reading the books.

And I LOVED it.

(Now, some in the Christian circles are debating the movie itself.  I'm not here for that.  It's fiction people.  Get over it.)

I googled what happens in book 2 & 3.  (Told you , no time for reading.)

Besides the storyline, I was enthralled with the future of it.  The government.  The country.  What we had become.  I know it's all fiction, but you could see it possibly happening.  Maybe not the whole teenagers who fight to the death on tv, but the government telling you where and where you cannot go, what you can and cannot eat, what job you have, what you wear...  Get the point?

Sadly, I could see it happening.   And I love the end - sorta. 

It confirms that we can't rely on our government for everything.  We can't let them pay our bills, provide our food, even give us our healthcare.  (Wink, wink.)

If you haven't seen the movie, I would recommend it.  I wouldn't take kids, or probably even preteens.  The movie is kinda violent, but nothing that TBS would have to edit out.

Then do like me and google the next two books.

 Or buy your husband an iPad for his birthday and steal it for the first 2 days and actually read a book!

Bittersweet Freedom

So, tonight, our family became debt-free.  Entirely debt-free.  Including our mortgage.  As we talked about before, we sold our house.  We closed on it tonight.

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It was very bittersweet.  Partly because we literally made no money from the sale.  We had to bring a couple hundred dollars to closing.  (Which I'm not really complaining seeing how one person that I know who just sold their home had to bring almost $15,000 to closing.  What I'd give for the roaring mid-2000's...)

For the first time ever in my adult life, I have no payments.  We'll have rent, we'll have utilities, but nothing that can't be replaced.

I should feel like I've lost 50 pounds.  (Lol - I've actually lost 10 since January!!!)

But I'm kinda sad tonight.

I love this house.  It was our very first home.

Almost six years ago to the day, we got the keys to this house and moved in.  We spent the night even with no electricity.  The next night, I remember looking at the light on in my closet and thinking, "Wow."  The only place I've ever known to have a light in their closet was Peggy's condo at the beach...aka, my favorite place on earth.

It was where I interrupted my husband playing his Playstation to hand him a stick with two pink lines. 

9 months later we brought home Eli.  I'm not sure that Playstation has been played with since.

Then 18 months later, Morgan.

Then 18 months later, Hannah...hmmm...I'm noticing a pattern here.

I remember sitting in a tiny office at a job I hated, looking at the pictures with the online listing of this house, and planning exactly where I was going to put all my kitchen tools, gadgets, and plates.  I love this house.  And it kinda makes me very sad going to sleep tonight, in it, knowing that it's no longer mine.

I know it has to happen.  I have no doubt it was God's will.  I'm just very surprised at the sadness I have from it.

I love you house.  In case I never told you.  You were a great first home.  And part of my heart will always be here with you.

How to Sell a Product

So, a couple days ago, Forbes did its annual "Billionaires List."  All the names you'd expect were on there

Bill Gates
Warren Buffet
Oprah Winfrey

But then one person (who was on the cover of the magazine) was new this year.

Sara Blakely

GO READ THIS!

She is the youngest women on the billionaire list.  She created Spanx.  Most women out there know what Spanx are...men are probably scratching their heads.

I don't want to be a billionaire - well, I do, but know that probably won't happen.  But I just want like 20 minutes with this lady.

I want to ask her, "How did you make your first pair?  How did you sell it?  How did you get a manufacturer?..."

There is a lady who founded a purse/bag company.  (They will remain nameless though because I'm not a big fan of the bags.  As their prices have gone up, their quality has come down.)  While I'd like to give her an earful for the poor quality of the bag, I still want to know how she started. 

How do you go from idea to product?

How do you go from an employee to an employer?

How do you get clients?  You may be the best lawyer, doctor, whatever in town, but it doesn't matter if you can't get clients.

I want to talk to real entrepreneurs, business owners.  And not those stupid pyramid scheme companies.  Someone who started something from the ground up.

I could do something like that.  I just need an idea, some start up capital, a manufacturer, some clients...  Pretty much everything.

Let me know if you want to be an investor!

I'm Alive!!!

Let me tell you, it's been a rough couple of days.  It was touch and go there for a bit, but I think the worst is behind me.

After a lifetime of no allergic reations to ANYthing, I've had reactions to two separate drugs including serious breathing problems.

I ended up in the ER around midnight Tuesday.  This was my doctor:

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I'm not kidding.  I'm not quite 30 and this doctor had to be younger than me.  It was so scary.  But he was good and thorough.  And all ended up well.

In all of my downtime in bed, I been tweaking my house plans.  We are supposed to meet with our contractors this weekend


Floor 1



Floor 2

Now, it's not exactly perfect, but you get the idea.  I think I'm done.  I think I've tweaked it as much as I can tweak it.

I've never built a house before.  Some people swear I'll be annoyed with the fact my garage isn't right next to my kitchen.  Some people say I will want my bedroom with all the kids' rooms.  (Um...pretty sure that won't be the case.)

I've actually already sketched out my furniture layout.  I'm no decorator.  That was not one of my gifts.  Mr DDA already wants me to pick out paint swatches.  Aahh!!!  And I tell him, "Honey - we can pay people for that." 

Most of you follow my sister's blog and know that she has wicked interior design skills.  But she can't do a tax return to save her life.  (ok - well, maybe to save her life, but you get my point.)

This whole process terrifies me and excites me at the same time.  The one common denominator I hear from everyone that has built a house is, "It was the most stressful thing I've ever been through." 

But at least I have all you to vent to. 








I'm gonna need to find a therapist...

Taxes, Taxes, Taxes

All around me, I'm surrounded by taxes.  And no, not just at work.  Every year, I prepare dozens of returns for friends & family.  Last year, it got so bad, I spent every night working on some one's return.  I had to put a limit on it this year.  Especially since I can't charge for it.

In case you forgot, it is tax season.

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And while the private sector is working 80 hour weeks trying to prepare every return possible, I don't escape the madness entirely.

Friday night, a group of us went to see "Act of Valor."  (Side note: Great movie, but super intense.  I needed a Xanax a third of the way into it!)  And we ran into one of my husband's co-workers who always proceeds to tell me his latest tax scheme.  All which are *mostly* valid. 

Most people I know get refunds.  (Some huge - again, can I just say that the Earned Income Credit is welfare?  Just had to point that out one more time.)

But it seems a lot of people, more than normal, are having to pay taxes this year, me included.  It's one thing if you're expecting it.  But if you're not, it can be crippling.

People have this fear of the IRS, not entirely unfounded, that if they owe the IRS even a penny, the Service will seize their house and maybe one or two of their children.  They freak out, even break down into tears. 

If you should find yourself in this position, here's what you should know:

1. File your taxes, ON TIME.  Even if you can't pay them.  This is one of the biggest misconception I deal with.  People even get their returns prepared and simply don't file because they can't pay the tax due.  Even if you know you can't pay, file your return.  There are penalties for not filing as well as not paying.  But you could at least avoid the Failure to File Penalty it will save you some money in the long run.

2.  The IRS has payment plans.  If you call and ask, they will set up an Installment Agreement and it's practically guaranteed, as long as you pay it off in a reasonable amount of time. 

3.  Going hand-in-hand with #2, if you owe money to the IRS and are due a refund, the Service will keep your refund.  So say you have an abnormal year where you owe the IRS $4000.  Set up a payment plan for $250/mo.  By the time next year rolls around, you will still owe at least $1000.  If you are due a refund then, the IRS will keep the amount you owe to satisfy your balance.  Strangely, that surprises a lot of people

4.  You can't declare bankruptcy on money you owe the IRS.  Especially in today's volatile economy, you may have a booming year in one year and be destitute by the time tax season gets here.  I'm no bankruptcy attorney, but tax debt, for the most part, can't be included on a bankruptcy. 

5.  You'd honestly, be better off getting a low interest credit card and using it to pay off your tax debt, and then pay the credit card.  The IRS charges compound interest, just like a credit card company.  Meaning, they charge interest on interest.  Couple that with penalties (and the interest on penalties) and you can end up with double the original balance - quickly.  If I was your personal tax advisor, I would tell you it's much better to owe Chase than the IRS.  If you miss a credit card payment, it won't be nearly as costly as missing a payment to the IRS.

It's never fun to owe money, but owing taxes can be especially frightening.  Hopefully, these few tips can help you if you find yourself in that situation.


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In the interest of full disclosure, I'm currently on drugs.  Lol.  I went to the doctor today and was told I may have mono.  I'm on some antibiotics and a serious slew of pain killers.  So if you notice spelling, grammatical errors, missing words, or just something plain ol' wrong, give me a pass this time, mmkay?

SOLD!!!!

So, it's been a crazy three weeks...

After much debate, we sold our house. 

Every day the negotiations went on, I though for sure I'd be updating you all with a "It's sold!" post.  And every day came & went. 

It was truly one of the most stressful processes I've ever been through.

They offered a pretty lowball offer.  That we couldn't even entertained.  So we countered, then they countered, then we countered...  You get the point.

And to top it all off, we will be renting from the buyer till our house is complete.  So then we had to figure out how much rent we were willing to pay, how long we wanted to stay here, how much security they wanted vs. how much we were willing to pay... 

And I swear sometimes, dealing with real estate people is like dealing with emus.  Ever tried to talk to an emu?  They look at you like you're the crazy one...not speaking English or something.  THEY ARE AN EMU!!!

But after two weeks of painful negotiations - we all signed on the dotted line.

I heard angels singing.  And no, that's not a metaphor.

I pulled a Gideon, laid a fleece out, and secretly asked God for Him to find us buyers that would rent to us till our house is built.  And He did. 

But even that miracle wasn't enough for me.

I was feeling really bad about the sale.  Nauseated.  Because the buyers picked maybe the worst possible property management team in the NRV to manage the house.  (They shall remain nameless - but they are "explosive.")  I really wanted to cancel the whole deal.  So I asked God for one more thing.  (My mom calls it "Flipping over the fleece.")

One more virtually impossible thing - just to know for sure this deal was the right one for us.

Sell my parents house.

My parents house has been on the market for 2 years.  (Yes - 2 years.)  They've had a few offers but they all fell through. 

I am not lying when I say this, my parents signed a contract on their house 2 days later.  One with virtually no contingencies - except an inspection.  And the buyer - a guy I kinda/sorta dated one summer in high school.  So weird.  (Although he never went to my house, so he probably has no idea the hours spent on the phone with him in that bedroom!)

Ok, God.  Got the picture - Loud & Clear.  Why am I so shocked when He does that?  Anyone else get surprised when they ask for something and get it?  Ok, I'm glad it's not just me.

So I had no qualms whatsoever about signing the final contract.  After all is said & done, we may walk away with $30.  Literally.  But in this market, I'll take it. 

We close on the house hopefully in mid-March.  We will be in this house till May 2013. 

Just enough time for us to complete this:


Our Dream Home



I Went on a Hike!

I did something today.

Something I haven't done since high school.

I hiked the Cascades.

It's a 4 mile hike.  (Two miles up; two miles down.)

Like I said, last time I did this was when I weighed all of 98 pounds.

Not quite as easy now.

But the pay off was amazing.


Yes!  That's me!

I don't know what came over me today.  I was sitting at my desk about 10:00 and thought, "I really don't want to be here today."  (To be honest, I usually think that every day at 10:00.)

At first I thought, Mr. DDA is off.  We could go to lunch.  Have a mini-date.

But after yesterday's dilemma, I thought it best we save that money.  And since I'm trying to find middle ground between my high school weight and my now weight, I thought it best I save those calories.

It cost us $3.  We had a blast.

But at the halfway point, my husband (who had never seen the falls) said, "You ready to go back?"

I said, "NO!!!  We have to keep going.  Just wait till you get to the top!"

Even though we are still technically debt free (I'll explain how we're paying this bill later), after yesterday, I feel like we're at the halfway point again.

It's would be just as easy to turn back as to keep going. 

Part of me wants to say "Heck with it!"  And call Chase.  (They have Mickey Mouse cards!!!)  And run out and buy shoes, and dresses, and adorable boutique kiddie clothes, and Mr. DDA a tool chest, and pay off this bill, and just live like the rest of the world.  With a credit card payment.

But I've determined we will conquer this thing.

I will burn those calories.  I mean, make those payments.  :)

I've seen the top before, and I want to go back.

#$%@*# - $%&^*@

I got a bill in the mail today.

Not a dollar bill, a payment due bill.

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And not a regular one.  A big one.

"With a comma" big.

I kinda knew it was coming, but in the back of my mind I kept hoping and praying for a miracle.  That it somehow wouldn't come.

Even being debt free, it's too big for us to simply write a check for.

(Told ya it was big.)

I had a minor meltdown, freak out moment today.  I swore - I cussed.

Not really, but I actually said the phrase, "Maybe we should just put it on a credit card." 

I know. 

Told you it was blasphemous.

My sister tried to give me the speech that I invented!!!

It's just money...  It's not your health...  It's not your kids health...

It didn't work.

At first.

But after I had my little pity party in my cubicle, I got out my calculator and began to crunch the numbers.  (I know, I'm such a nerd.  Just say it.)

And after about an hour, I began to breathe normally again.

And I began to give myself my classic, little pep talk.

Steve Jobs probably had this much money as loose change in his glove box.  But he couldn't buy a minute more.

Britney Spears would probably trade all her money for an unfried brain and a normal life. 

"Ok - get a grip Sarah!  You can handle this!"

I didn't find out today that my baby girl had a brain tumor.  Some mother did today.

My two year old didn't starve today in some third world country - or for that matter, in our country.  Some children went hungry today.

I didn't have to bury my annoying, but melt-my-heart four year old little boy.  Some mom out there today, had to do that.  God bless her.

I didn't find out today that when my husband left, he wasn't coming back.  Some overworked wife got that call today...from the military, from a chief, or from a sheriff.

See, today, when I got that bill, I did freak out.  I did cry.  I threw a pity party.  "Why doesn't God bless me?"   Waahhh
Waahhh
Waahhh

As If I God Wanted to Remind Me One More Time

But at the end of the day, it was a very strange reminder of how blessed I am.

Don't get me wrong, I am not happy about this bill.

I am not going to enjoy paying it - at all.

But I'm so glad to have this burden versus many other options out there.

Dear Retired Me

Dear Retired Me:

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When you no longer have to set an alarm clock,

And your grandchildren unexpectedly show up for breakfast,

And you get to fly south for winter,

Think of me.  ("Think of me.  Think of me fondly - when we said goodbye..."  Bonus points if you know where that came from.)

 the unretired, exhausted, but happy me.

See, I could really use the extra couple hundred dollars that I'm giving you

For groceries...

Or gas - yes, retired me, $3.30/gal. gas is expensive right now.  It may be cheap then, but it's expensive now...

Or the countess medical co-pays because all three kids can't manage to get sick on the same day...

Or a new pair of shoes...  :)

Or better yet, to buy pants for my children, because my washer magically shrinks them as soon as I buy them.  (My children can't possibly grow that fast can they?)

See, retirees will need 70% of their pre-retirement yearly income. 

And I read this week that my generation will need approximately $1.8 million dollars at retirement.

(Retired me, do we even use dollars any more?)

Barring some strange turn of events in my life, I'm not sure I'm gonna make it to almost $2 million dollars in my retirement accounts. 

Especially if the stock market keeps resembling the architecture of the Kingda Ka.

(Retired me, do we even have a stock market anymore?)

Dear, dear retired me,

I think of you and your white sandy beaches often.

But while I can't wait to meet you, don't arrive too fast

I'm enjoying life as unretired, exhausted, but happy me.

I'm Buying a Box

I'm buying a house.

No, maybe a refrigerator.

Or two.

But just for the boxes.

Because I'm going to need a home.

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Because I'm not going to be able to afford my current one..

Because I'm going to quit my job.



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Because at the moment, I'm really tired of being the tax lady.

I'm really tired of telling hard working people who barely make ends meet that they're going to owe over $10,000 because their union didn't bribe a congressman enough to get a loophole in the tax code.

I'm really tired of preparing returns for people really don't do much of anything and see them walk away with $8000 for doing nothing productive in society the year before.

Can we just talk about the Earned Income Credit people?

It's welfare. 

There I said it.

It's welfare.  We, yes - you too, are paying people to work as little as possible and yet, have as many children as possible.

I despise that credit.

I H-A-T-E that credit.

Because a family of 5 making less than approximately $45,000 a year can literally owe NO tax in the first place and yet get thousands of dollars from the government.

And people who get the credit know that and work the minimum amount to get the maximum credit.

But I can't quit.

Because I'm married to a cop.

(An awesome one at that.)

And incaseyoudidn'tknow, cops make nothing - well, pretty much.

And if I did quit, we'd qualify for the Earned Income Credit.

And that would just be an oxymoron wouldn't it?

But I still want a refrigerator box.

Because who didn't love a playhouse in their living room?

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The Cost of Borrowing

A couple years ago, right in the middle of our debt-free journey, we got the exciting news I was pregnant with baby #2.  We were thrilled, but as the due date inched closer and closer, I began having panic attacks.  How were we going to afford 2 daycare payments?  2 sets of diapers?  Formula?  Forget that - how were we even going to get through maternity leave?

Less than 2 weeks before baby #2 arrived, we got a loan, no, I'll say it, a handout, from a family member.  It was amazing and heartbreaking at the same time.  It wasn't much - it was just the perfect amount. 

And although we assured them we would pay it back, they assured us that they would refuse it.

But here we are 3 years later and I still think about it..  I still feel guilty over it. 

You know how you feel when you hear about people who run up a credit card on a lavish vacation, then whine about paying off until someone (usually related) pays it off for them?  That was me!  (Well, except for the lavish vacation part)

I hear about those people now and it makes me sick.  You don't learn anything that way.  You don't feel the pain. 

Although that amount didn't fully pay off our debt, it took some of it away.  Consider that local anesthesia.  :)

Money comes with price.  Sounds kinda stupid, but it's so true.

Borrowed money doesn't get you out of debt.  It may pay off your debt, but you always have a debt.












On a lighter note, over the weekend, DDA celebrated it's birthday!

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Here's to another year of bean counting, debt dumping, and shoe scouring!!!

What Comes Next?

It's been almost one year since we've become debt free.  It's been a fun year no doubt, with I'm sure more fun to come.  Has it been exhilarating? 

No.

Shocked? 

Me too.

You think that once you become debt-free you'll have all this crazy money.  At least I did.  I pictured something like this:

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I thought we'd bathe in money.  Pay for everyone's dinner, take great vacations, dress our kids in the finest character clothing imported straight from the Magic Kingdom...

And yes, we do have more money.  But not crazy, stupid money. 

So my question to Dave Ramsey, Suze, Gail, Clark - all the financial DEBT FREE guru's out there is this, "What's next?"

Do I live on rice & beans till I save up my 6 month emergency fund?

Are we allowed to eat out?

How many pairs of shoes can I buy before it's just ridiculous?  (ha ha - notice I don't ask, "Can I buy shoes?")

Can I add to my grocery budget?

Because right now, our spending is (almost) the exact same it was before we were debt free.  Our grocery budget is the same.  Our dining out is the same.  Our gas budget is the same.  (Don't ask me how.) 

I still freak out when the "oil change" my van went in for, costs us $256 because this, this, and that were broke.  When can I not freak out?  (To be honest, I think 50% of the freak out reflex is just my personality.  We could be millionaires and I'd still freak out.)

No one tells you what comes next.  You've programmed your brain in this super tight mentality and it's hard to reprogram it. 

Maybe that'll be my niche.  I'll make my millions doing tv, radio, books & seminars on What Comes After Debt.  And Dave, Suze, Gail, or Clark - I'll let one of you write the forward to my book so you're not forgotten about when I surpass you in popularity. 

Maybe I'll even get my own app!

Opree Calls it Multee-Taskin

Now that the Christmas season is past us, I'm determined to get back to blogging more.  I enjoyed it and I missed it.  But if it comes down to blogging for 15 minutes and sleep - I choose sleep!

As we've talked about before, my life is eerily similar to Sweet Home Alabama.  So much so that my sister & I have have entire conversations just using phrases from that movie.  As I sit here trying to keep one eye on the BCS National Championship and attempting to type, it brings to mind the words of the great Pearl Smooter, "Oprah calls it multi-tasking."  Yes, I am multi-tasking.

So, you know that I have three kids.  A 4 year old, a 2 year old, & a 1 year old.  Here is a recent family picture:



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I work full time at a crazy, incredibly high-stress job that I strangely enjoy.  You know that I have a part-time husband.  Meaning he's here only part of the time thanks to his crazy, high stress job that he strangely enjoys.

You know that I go to church three times a week.  No?  Well, I do.  I go to church a lot.  Don't tell anyone, but sometimes I sit back and dream that I turned into a Sunday Morning Christian.  But I then my inner Jiminy Cricket takes over.  (Mine sounds like my grandma, Nanny.) 

Some of you also know we are trying to sell our house. 

This is all a recipe for disaster.

I need to be on medication - a lot of it.  Preferably, not prescribed by Conrad Murray.

Before we had three kids, crazy jobs, a house on the market, etc... we were broke. Probably because we loved to eat out. 

I mean LOVED. 

I can probably attribute at least 20 of my pounds to Olive Garden's pasta & breadsticks.  (My genealogy says I'm German & Norwegian, but I know an Italian had to be snuck in there somewhere.)

I can tell an Outback steak just by its smell.

Since our life has become a whirlwind of days, we eat out much less.  Like never.  We will occasionally go to the very loud Mexican restaurant with another family who lives almost as crazy a life as we do, but that's only usually once every two months or so.

See, when you have kids, going out isn't fun.  You spend the entire time begging the waitress to bring you a spoon so you can feed the baby, while using your other hand to force feed your three year old his $5 grilled cheese.  By the time you get to your dinner, the bread is hard, the steak is cold, and your other kid spilt milk all in your french fries.

Staying home, inviting friends over is so much calmer and way more enjoyable and, I've discovered, so much easier on the budget.  So, I've decided I'm going to try that a lot more this year. 

Save money and sanity.  "Oprah calls that multi-tasking."