I searched through all the sites that I listed yesterday as my favorite Black Friday Shopping Resources to compile the list. It’s separated by free, free after rebate, and free with purchase. Be sure to check the ad scans for accuracy, and verify what time the price ends in your area. You can see last year’s list of Black Friday 2008 Free Stuff.

Free

Half Price Books

• Free Tote Bag & $5 Gift Card to First 100 Customers  

Ikea

• Free Breakfast & Coffee Until 10:30 am

JCPenney

• Free Disney Snowglobe While Supplies Last

Sports Authority

• Free Bonus Bucks Card for First 80 People in Line

Target

• Free Marcel Wanders Shopping Bag for First 500 People

Free After Rebate

Ace Hardware

• Ratcheting Screwdriver 38-Piece Set
• Stanley Staple Gun

CVS

• Magnavox Universal Remote
• Philips Earbuds
• Hershey’s/Reese’s Singles
• Mars King Size Bars
• Degree Ultra Clear for Women
• DynaPop Energy Shots
• Just For Men Touch Of Grey
• Right Guard Sport 3D
• Vasoline Sheer Infusion Lotion

Menards

• 6-in-1 Screwdriver or 16′ Tape Meausre

Office Depot

• Interior Design Software
• Photo Explosion Software
• Print Master Software
• Scrapbook Factory Software
• $1000 in Software with Microsoft Office or Windows 7 Purchase
• HP Printer with Any Computer Purchase

Staples

• Duracell Batteries 20-Pack
• GE 4-Device Universal Remote Control
• Sharp Handheld Solar Calculator
• Peachtree Pro Accounting Software
• Canon Printer with Purchase of Any Digital Camera
• HP Printer with Any Desktop or Laptop

Walgreens

• Aquafresh Cavity Protection Toothpaste
• Dove Ultimate Visibly Smooth Deodorant
• Infusium 23 Hair Care
• Johnson’s Softwash
• Nivea for Men Shave Gel
• Right Guard Sport Deodorant

Free With Purchase

Babies R Us

• Summer Infant Audio Monitor with Purchase of Handheld Color Video Monitor

Best Buy

• LG Chocolate Touch with 2 Year Verizon Contract
• $10 Gift Card with $40 Ink Purchase
• $5 Napster Card with any CD Purchase $5 and up

Build a Bear

• Mini Moose Pair with Any $30 Purchase  

Gander Mtn.

• $20 Gander Cash with Each $100 Purchase (Thursday 3 – 9 pm)

Half Price Books

• $5 Coupon with $25 Gift Card Purchase
• Half Price Books Calendar with Any $25 Purchase

K-Mart

• Handy Manny Talking Tool Box with Repair Shop Purchase
• Xbox 360 Halo 3 ODST with Xbox 360 Elite Bundle Purchase

Kohls

• $10 Kohl’s Cash for Every $50 Spent
• Tote with $25 Fragrance or Cosmetic Purchase

Lowes

• 6-Piece or 3 Piece Wood Handle Tool Set with Tool Chest Purchase

Meijer

• Neoprene Sleeve and Microsoft Wireless 3000 Mouse with HP Mini 1020 or 1030 Netbook Purchase
• 2 Buy-ray Movies and 2 Video Games with PS3 120GB Slim Console Purchase
• Grand Theft Auto IV and Halo 3 with Xbox 360 Game System or Bundle Purchase

Old Navy

• Lego Rock Band Game with $20 Purchase
• Rock Band Guitar with Rock Band 2 Software Purchase

Sears

• $70 Gift Card with Purchase of 4 Select Tires
• Jewelry Box with $35 Fragrance or Cosmetics Purchase
• Craftsman 100 watt Work Light with Purchase of 1000 Watt Tripod Worklight
• Craftsman Air Tool Kit with Craftsman 33 gal Air Compressor purchase
• Craftsman Air Tool Kit with Craftsman 33 gal Air Compressor purchase
• Nintendo Wii Nerf Racing Wheel with Wii System Purchase
• Sony PS3 Blu-Ray Remote with Playstation 120GB System
• Whirlpool Micowave with purchase of Gas or Electric Range
• Xbox 360 Live 12 Month Gold Card with Xbox Elite Bundle purchase

Sports Authority

• $25 Gift Card with Purchase of a Golf Buddy GPS

Tanger Outlets: Dress Barn

• Cosmetic Bag with $50 Purchase 

Target

• $10 Gift Card with $100 Purchase
• $10 Gift Card with Purchase of Selected Video Games

Toys R Us

• $50 Gift Card With Any Apple iPod 8GB Touch
• EVA Sleeve Kit With Any DSi Holiday Bundle
• Bendaroos 100 Piece Set With Any 500 Piece Set Purchase
• Easel Starter Kit With Any Imaginarium Deluxe Wooden Art Easel Purchase
• Imaginarium Big Train Set With Any Arch Train Table Purchase

If you find more, please post them in the comments.

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Of course, let’s not get ahead of ourselves… first we need to make plans for Black Friday. It’s just around the corner! Just 8 days to go (but who’s counting?)

Here are some of my favorite places to scan the leaked ads for Black Friday. And be sure to check back tomorrow for my favorite Black Friday post….

Black Friday Hangouts

• Black Friday at GottaDeal
• Black Friday Ads
• Black Friday Central
• blackfridayads.com
• iBlack Friday
• Black Friday.net

Debt

• Our Journey To Debt Freedom: Cresting The Hill
• Debt Free Living: 5 Attitudes You Need to Adopt for Success
• DIY Debt Management Plan: Go On Oprah’s Debt Diet!

Taxes

• Year End Tax Tips 2009
• Start Making Year-End Tax Moves Now and Save Big Money
• Prepare Now for Next Year’s Tax Bill

By the Numbers

• 10 Simple Steps to Buying a Car or Truck on eBay
• 10 Steps to Planning Holiday Spending
• 20 Tips To Press Onward Towards Your Financial Goals

And More!

• Money Word Games
• Leaving My Bank – Comparing Online Bank Accounts
• How to Manage Money
• Adventures in Dallas (and how we saved money there)
• Funding Your Child’s Post Secondary Education
• Top Tips for Holiday Credit Card Spending
• Carnival of Personal Finance

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Due to the economic recession, something tells me that people are going to be cutting back from their holiday spending this year. In fact, Retail Forward, which conducts substantial consumer research, found that 45% of consumers plan to spend less on holiday shopping this year than in 2008 (and we all know how abysmal the 2008 holiday shopping statistics were; several companies like Circuit City even had to declare bankruptcy).

Are you planning to scale back your spending over the next few months? Well, I am here to tell you that you can be just as festive and still spend less money than in years past.

Potluck Holiday Dinners

Perhaps you are used to hosting holiday dinners, such as Thanksgiving, Christmas, or New Year’s Day, and have taken it upon yourself to pay for everything: from the appetizers, food, and alcohol/beverages, down to decorations and small gifts. You can still be that great host/hostess this year, but when you invite family members and friends, ask them to bring a dish and tell them that this year will be a potluck holiday supper. This can be an exciting opportunity to display other people’s star dishes, and to keep you out of the kitchen and mingling with your guests!

Decorate Using Nature

When decorating on a budget, think about stimulating different senses, such as sight, sound, and smell. Collect pinecones as a family from walks outside, neighbor’s homes, or your own backyard. You can use these in many ways to add festivity to your home. Assemble them in a beautiful bowl for an authentic centerpiece. Spray them with glue (or dip them in glue if you have Elmer’s), and add glitter to them, or spray them with fake snow.

Add a sense of coziness by keeping a fire in your fireplace going during the holidays, which will save you in heating costs as well as add a beautiful ambience. You can typically find free wood on Craigslist’s under the ‘free’ section (people clearing land usually will give wood away for free, but you may need to bring your ax). 

Use the branches of evergreen that you trim from your Christmas tree to hand make a wreath for your door, and to add in between candles for a wonderful centerpiece or decoration for windowsills that smells amazing. If you are not planning on purchasing a Christmas tree this year, you can ask local tree sellers if they have clippings they could give you for free or cheaply. Use your imagination!

Keep wonderful smells simmering throughout your home by heating up apple cider on your stovetop.

Frugal Family Outings

I would argue that the most festive and enjoyable holiday activities are either free, or very cheap.

Check out lights. One of the most fun and festive activities you can do during the holidays is to take a car ride around surrounding neighborhoods and look at other people’s Christmas lights and decorations.

Go caroling. Join a caroling group through your church, place of worship, or with friends and family and have fun singing holiday songs and spreading cheer.

Have fun sledding. Depending upon the area of the country you live in, take advantage of upcoming snow storms to sled down familiar hills and build snowmen or make snow angels.

See holiday plays. Attend free church productions of A Christmas Carol, pageants/nativity scenes and other traditional plays. You may wish to make a donation to the church.

Volunteer. Volunteer with your family at a soup kitchen, food pantry, homeless shelter, etc. This will provide your family with precious time together, as well as help others in need. You would be surprised at how grateful and bountiful your life feels when you help out others with much less financial means than yourself.

I hope you take these suggestions, and truly enjoy the upcoming holiday season for all of the reasons that make it the happiest time of year. Above all else, remember that it is much more important to spend time with your loved ones—rather than spend money—to create sustaining relationships and memories for years to come.

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Back in August, Cash for Clunkers was the big news in government relief for taxpayers. The program encouraged consumers to buy nearly 7,000 more fuel efficient vehicles in less than 30 days. A similar program from the Department of Energy through the American Recovery and Reinvestment Act of 2009 is now in the works. The State Energy Efficient Appliance Rebate Program, or “Cash for Appliances,” aims to encourage Americans to upgrade to more energy efficient appliances.

Cash for Appliances Features

• State-Run: Unlike Cash for Clunkers, where the Federal Government ran the program, each state is responsible for its own Cash for Appliances program. That means program rules, dates, and savings vary by state.
• Old Appliances: Your old appliances won’t be exchanged for the rebate on your new appliances. The good news is that those who are buying, for example, a new washing machine and have never had one before, will still be eligible for the rebate. The bad news is that you’re responsible for getting rid of your own old appliances. Be sure to recycle though because some states, like New York, will offer additional incentives for doing so!
• Energy Star: The new appliances must be ENERGY STAR® qualified in order to be eligible for any rebate. Categories eligible for rebates include: central air conditioners, heat pumps (air source and geothermal), boilers, furnaces (oil and gas), room air conditioners, clothes washers, dishwashers, freezers, refrigerators, and water heaters.

Overall Thoughts

As with Cash for Clunkers, this program shouldn’t make you run out and buy a new appliance you don’t need or can’t afford. The rebates can be as little as $50 so that definitely wouldn’t be a wise decision. However, if you’re in the market for a new appliance anyway and your state is offering one of the better incentive programs, it probably makes sense to take advantage of this program while it lasts…remember how quickly Cash for Clunkers ran out of funds!

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If you find yourself with questions you can’t quite find the answer to online, want to make sure you are handling a special situation as well as possible, or just want reassurance that you are on the right financial track, you may want to consider hiring a financial planner. This article will help you understand what a financial planner can do for you and what to expect when working with one for the first time.

Why Hire a Financial Planner?

These are just some of the things a financial planner can do for you:

• Determine and prioritize your financial goals.
• Use your personal goals and risk tolerance to create a sustainable investment strategy that maximizes returns.
• Create personal financial statements such as a balance sheet and income/expense statement.
• Use key financial ratios to check you overall financial health, and provide suggestions for improvement.
• Analyze your insurance portfolio to ensure that you are minimizing personal risk.
• Develop strategies to minimize income, capital gains, self-employment, gift, and estate taxes.
• Create and execute a plan for you to retire at the age you want with enough assets to live comfortably.

Meeting with a Financial Planner

A financial planner will want to get a general understanding of where you are in life – how old are you, do you have any children and how old are they, do you (or your spouse) plan to attend any more school, do you own a house, do you plan to support aging parents in any way, etc.

Depending on the planner, you may be asked to fill out a questionnaire in advance of your initial meeting. Others will meet with you first to get the basic information and then have you fill out more details either during the meeting or after the meeting. You should inform your planner of anything unique to you or your family that you think will impact your finances now or in the future.

Your planner will also ask a variety of questions to understand your current financial situation, future income needs, and risk tolerance (for investment purposes). It is important that you are 100% honest with your planner – she will not judge you and is not allowed to disclose any of your personal information to anyone without your consent. In order for your planner to craft a plan that will actually help you, you must admit to all your financial mistakes, be honest about your future aspirations, prepare to hear an honest assessment of your situation, and be willing to work with your planner to improve your finances. If you have certain things you aren’t willing to give up or certain savings goals that are non-negotiable, speak up – your planner is only as good as the information she has to work with.

What to Bring to the Meeting

When you meet with a financial planner, you should bring the following documentation:

• Bank/credit card statements showing expenditures for at least one year and current balances.
• W-2s/1099s showing income for at least one year.
• Tax returns for at least two years (up to five can be helpful if they are available).
• Mortgage and other debt information.
• Life, health, home, auto, long term care, and liability insurance policies and information on current premiums.
• Retirement account balances and asset allocation.
• Investment account balances and asset allocation.

If you have a small business you should also bring the above information for your business.

Choosing a Financial Planner

If you think that you could benefit from hiring a financial planner, ask family members, friends, or colleagues for a referral. I may be biased since I am studying to become one, but you should consider looking specifically for a Certified Financial Planner (CFP) professional. CFP practitioners are required to take an ethics pledge, have an annual continuing education requirement, and are governed by the CFP board.

It’s ok to meet with a few planners before deciding on one – a good planner will give you a free initial consultation. If you hope to build a long-term relationship it is important that you choose a planner you are comfortable with from the start. You can also get estimates from multiple planners to get an idea of the going rates in your area.

Once you have chosen a planner and worked with him to create your initial financial plan, you should plan to check in and revise your plan at least annually or whenever a life event changes your financial situation. Some planners may want to work with you as often as every three months, especially if you have large investments, or short time horizons for some of your savings goals.

Fee Based Financial Planners

You should also look for a planner that is fee-based, meaning they charge you by the hour rather than charging a percentage of your assets or charging commissions on products they sell you. You can search for fee-based planners by location through the Garret Planning Network.

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How to Get Your $50 Sign Up Bonus

1. Visit TradeKing and open an account by 11/30/09.
2. Fund your account with at least $2,500 within 30 days of opening it.
3. Execute one trade within 180 days of opening your account.
4. Get your $50 deposited into your account.

Terms and Conditions

• One offer per household.
• U.S. Residents Only.
• You must keep your account at a minimum of $2,500 (minus trading losses) for 6 months or your bonus may be surrendered.

Benefits

Low Fees. TradeKing charges $4.95 per trade plus 65 cents per option contract. For stocks priced less than $1.00, they add $0.01 per share on the entire order.

No Account Minimum. An account minimum applies for this promotion but not for the account in general.

Free Trading Tools. TradeKing has tools like a Profit + Loss Calculator, Probability Calculator, Technical Analysis Tool, and Scanning Tools that work for your individual options and complete option strategies.

SmartMoney also touts TradeKing’s great customer service. See for yourself or check out our TradeKing review.

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We got an ooma on sale for $204 (which came with an iPod shuffle). After switching from Vonage at $21 per month, we should break even in 10 months. After that, we’ll have free phone service.

I didn’t know about the ooma phone until just last month, but it seems like a great idea. It makes me wonder what other services that we pay for monthly can be converted into a one time fee.

Have you switched over to ooma? If so, I’d love to hear about it!

Investing

• College Savings Accounts for a Bad Economy
• Where To Invest Extra Cash and Savings Today
• New Schwab ETFs: Indexed, Low Cost, & No Commission With Schwab Account

Saving

• Save on a Wedding by Having It in the Winter
• How to Save Money on Vacations
• One Reader’s Experience with Comparison Shopping
• Economically Shopping For Christmas Toys
• How to Save Money for Christmas in a Short Amount of Time

By the Numbers

• Three Ways To Get Free Stock Trades
• 5 Reasons You Need a Tax Professional
• 52 Ways to Make Extra Money …Revisited

And More!

• How To Inspire Kids To Save The World
• How Working Overseas Helps Your Career
• When Money Doesn’t Matter
• Is Ally Bank in Trouble?
• Carnival of Personal Finance

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Programs Funded By Your Tax Dollars

Below is a list of resources that are free or subsidized by your tax money. Check with your local county or city government to see if these programs and services are available in your own area.

1. Free tax prep service for low to middle income families. Instead of paying for an accountant or tax prep professional next April, use the volunteer tax service your tax dollars have prepaid for.
2. Subsidized compost bins and free compact fluorescent lightbulbs (CFLs). Many local governments, electric companies, and communities have implemented programs to increase environmental awareness and to decrease energy use. Take advantage of this by purchasing a subsidized compost bin for your garden, signing up for a free CFL lightbulb, etc.
3. Free classes. Most communities offer free classes in accounting (for personal finance), Spanish language, ESL (English as a second language), basic computer skills, exercise (outdoor community yoga is always fun!), resume writing and job searches, etc. Some other fun classes I have found are for learning how to compost, local gardening instruction, and cooking. You may be surprised what classes are offered.
4. Parks, and environmental education. Parks are a wonderful opportunity to get outside and enjoy nature. Many parks offer free canoe rentals (or a subsidized cost that is cheaper than a private canoe rental place), tours, environmental education classes, outdoor barbecue pits (bring some foil if you don’t like the idea of cooking after someone else), fire pits, etc. You can use park grounds for birthday parties, anniversary parties, or other parties for free or a small donation, saving you money on event planning. Upkeep of the parks and all of these programs are funded through your tax dollars.
5. Use of facilities­. Community fitness centers are much cheaper than private gyms (memberships are often half the price). Libraries have books to borrow as well as DVDs, and you can take advantage of the Interlibrary Loan System (ILL) to borrow books and DVDs from many libraries around your state, giving you much better variety with a little bit of patience.

What programs have you used that were paid for with your taxes?

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HSA basics

• Definition: An HSA is a special type of savings account – a tax-advantaged way to pay for qualified medical expenses incurred while covered by an HDHP. HSAs can be held in simple interest-bearing savings accounts. Some plans will also allow you to invest in higher-earning instruments, allowing your contributions to grow significantly when invested properly.
• Eligibility: To be eligible to open and contribute to an HSA, you must be over 18 and covered by an HDHP that conforms to IRS standards. You may not have any other kind of medical insurance plan in addition to the HDHP, including Medicare. Finally, you cannot be claimed as a dependent on someone else’s tax return. Employers that offer an HDHP usually offer and manage an HSA as well. If you have individual health insurance you can sign up for an HSA through your insurance company or many banks/credit unions.
• Contributions: If you are an individual covered by an HDHP, you can contribute $3,050 in 2010 ($254/month). Covered families (including participant plus spouse, children, or both) can contribute $6,150. Your employer may contribute, but total contributions cannot exceed the above limits. Individuals can also contribute an additional $1,000 per year if they are 55 or over. These amounts are reduced if you do not remain covered by the plan for the entire year. You cannot contribute once you stop being covered by an HDHP due to retirement, employer changes, or plan changes, but the accumulated contributions and earnings are yours to keep.
• Withdrawals: Withdrawals for qualified medical expenses are tax-free. Many HSAs will provide you with a debit card so that you can pay expenses directly. Others will require you to file paperwork for reimbursement. Withdrawals for non-medical expenses will be taxed as ordinary income. A 10% penalty will also apply unless you are over 65 or disabled.
• Qualified Expenses: All normal medical expenses, including anything that your HDHP deductible would apply to, such as prescriptions, are qualified expenses. You can also pay for dental or vision expenses as well as long term care insurance premiums or expenses. Finally, Medicare premiums and COBRA premiums are qualified expenses, as are other health insurance premiums if you are unemployed. Cosmetic surgery cannot be paid for out of an HSA.

How can an HSA work for you?

An HSA is tax-advantaged in three ways:

1. It provides an up-front tax deduction, reducing your taxable income by the amount of your contribution.
2. It allows for contributions to grow with no taxes on earnings.
3. You can make tax-free withdrawals for qualified medical expenses. The withdrawals can be made at any time, even if you are not covered by an HDHP at the time of the expense!

Choosing an HDHP will always save you money in premiums when compared to traditional medical plans. The only downside is meeting your higher deductible. An HSA helps you save to meet that deductible and spread medical expenses evenly throughout the year so that they do not have to impact your everyday budget. In addition, your employer may contribute to your HSA, thus paying a portion of your annual deductible. Employer contributions and tax savings are in addition to other savings you may realize by selecting an HDHP. If your employer does not offer an HDHP option, consider getting quotes on private health insurance- even without an employer subsidy, the HDHP/HSA combined savings might be enough to make it worth it!

Because there are no income limits for HSA eligibility, HSAs are a great way to plan for increased medical expenses in retirement. If you have an HDHP/HSA for multiple years, and choose to pay for medical expenses out-of-pocket instead of an HSA, you can even treat your HSA as a “super Roth” and make tax-free withdrawals later instead of in the year they are incurred – this strategy allows the money to grow tax-free as long as possible!

To open an HSA, select it during open enrollment with your employer or check with your private health insurance company, bank, or credit union. Be aware that non-employer sponsored HSAs may incur management fees. While those fees can be frustrating, they are almost certainly outweighted by the savings!

Final thoughts

If you have the option of choosing an HDHP at work, spend some time running the numbers to see how much the combination of an HDHP and HSA can save you. JP Morgan Chase provides three easy-to-use calculators, including a tax savings calculator. If you are already covered by an HDHP, there is no reason NOT to open and contribute to an HSA. HSA money never expires – the account and any incurred tax benefits are yours to keep throughout your life. Combined with HDHPs, they can save you thousands of dollars over the course of your lifetime.

For more on HSAs, check out this handy guide from The Department of the Treasury.

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What is a High Deductible Health Plan?

A high deductible health plan is a health insurance plan with lower premiums and a higher deductible than traditional plans. The IRS sets the minimum deductibles for plans to be considered HDHPs. For 2010, HDHP policies for individuals must have a deductible of at least $1,200. Policies for couples, individuals with children, or families must have deductibles of at least $2,400.

The IRS also limits the maximum amount that an HDHP can require you to spend out-of-pocket. In 2010 the maximum amount is $5,950 for individuals and $11,900 for all others.

An HDHP is usually offered in concert with a Health Savings Account, or HSA. I’ll talk more about these tomorrow, but the bottom line is that they allow you to save for and pay for health expenses tax-free.

How can an HDHP work for you?

High deductible health plans often cover 100% of preventative care such as annual physicals and screenings such as mammograms or prostate tests – that means you have no out of pocket costs. Your deductible will only apply to things like hospital/ER visits, prescriptions, and other physician visits. Even some percentage of these expenses may be covered by your insurer.

This means that if you stay relatively healthy over the course of the year, you could have little or no out-of-pocket expenses. Even if you have a few doctor visits and/or regular prescriptions, you could come out on top. As I said above, the HDHP limits your total out-of-pocket expenses, so the most you will pay in one year is your annual premiums plus that out-of-pocket limit. If your employer contributes to an HSA on your behalf, you will reap even more benefits from this plan!

HDHP Example

My HDHP at work this year will cost $50 less per month than a traditional in-network plan. That’s $600 per year! In addition, my employer will contribute $750 over the course of the year to my HSA. The $600 is mine to do whatever I want with. The $750 can go towards meeting my deductible.

All preventative care is 100% covered, so as long as my prescriptions, hospital visits, and other doctor visits cost less than $750, I make money by choosing an HDHP. My expenses can add up to $1350 ($750 from my HSA + $600 premium savings) and I’ll still break even with a traditional plan. Once my expenses hit the max out-of-pocket limit, all future expenses will be covered at 100% – compared to a traditional plan where I will have co-pays throughout the year, regardless of how much I spend out of pocket.

When should you avoid HDHPs?

A high deductible health plan is not right for everyone. The number one reason to avoid choosing an HDHP is if meeting the deductible places a huge burden on you. This may be the case if you do not benefit from HSA employer contributions. Depending on the terms of your HDHP and the other insurance options you might have, you also might want to avoid choosing an HDHP if:

• You have a chronic illness that requires frequent doctor visits and/or multiple prescriptions.
• You are older/in poor health.
• You are pregnant or plan to become pregnant during the insurance term.

In the above situations frequent medical care means you will almost certainly need to spend your whole deductible, possibly negating any premium savings.

Making the Choice

Before you decide on an HDHP or more traditional health plan, pull out a piece of paper and a calculator and follow these steps:

1. Write down all the medical expenses you expect to have over the course of the next year, including prescriptions. You can use this year’s expenses to estimate.
2. Calculate how much each event/expense would cost you under both a traditional plan and an HDHP, taking into account any co-pays, deductibles, and out-of-pocket limits. If the HDHP costs are less than the traditional plan costs, an HDHP is definitely for you. If not, continue to step 3.
3. If the HDHP costs are more than the traditional plan costs, subtract the traditional plan costs from the HDHP costs. This is the increased out-of-pocket cost with an HDHP.
4. Subtract HDHP premiums from traditional plan premiums. This is your savings from choosing an HDHP.
5. If your number from Step 3 is greater than the number from step 2, your savings outweigh additional expenses and you should choose an HDHP – this will be the case for most people who have limited health issues and use insurance sparingly. If not, stick to a traditional plan.

If an HDHP makes sense for you, it can be a great way to save money without compromising your health care! That’s money in your pocket that can be used for savings, dept payment, investing, or just a little breathing room in your budget.

Check back tomorrow for a more-detailed explanation of Health Savings Accounts. Employer and/or personal contributions can add even more savings when combined with an HDHP!

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To qualify as a long-time resident, you must have owned and lived in your current residence for at least five years of the previous eight years.

$6,500 Home Buyer Tax Credit

Here are the requirements for the $6,500 home buyer tax credit:

• Your new home must have a signed contract by April 30, 2010 and you must close on the new home by June 30, 2010.
• Income phaseouts will begin at $125,000 for single filers and $225,000 for married filing joint.
• The credit is for primary homes that cost $800,000 or less.

For more information, see the original First Time Home Buyer Tax Credit.

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First Time Home Buyer Tax Credit

As a reminder, here are some of the rules for the first time home buyer tax credit:

• The credit is for $8,000 or 10% of the home’s value, whichever is less.
• The credit is refundable.
• The credit is for primary homes that cost $800,000 or less.

The income limits also went up with the extension. Original phaseouts were for incomes between $75,000 to $95,000 for single and $150,000 to $170,000 for couples. Phaseouts will now begin at $125,000 for single and $225,000 for couples.

In addition to extending the date, the bill also included a $6,500 Home Buyer Tax Credit for Existing Homeowners.

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They’re back with another great opportunity to open an Electric Orange checking account. It’s our Free Money Friday offer this week!

How to Get Your Sign Up Bonus

1. Visit ING Direct to sign up for an Electric Orange Checking Account.
2. Activate your Electric Orange Debit Card.
3. Use your debit card to make at least 3 signature-based purchases in the first 45 days after your account has been opened.
4. Get your $50 bonus credited to your account 50 days after it has been opened.

ING Direct

Here’s some more info about the account that you might want to know:

Initial Deposit Requirement: None.

Interest Rates (as of the beginning of this week):

• 0.25% on balances under $50,000
• 1.50% on balances between $50,000 and $99,999.99
• 1.55% on balances $100,000 or higher

Also, don’t forget to check out why we are big fans of ING Direct!

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Gone are the days when Scott and I could book 2 tickets on Northwest with our miles in under 10 minutes. Have you ever tried to coordinate booking 7 plane tickets using frequent flier miles from 2 different accounts for 4 tickets, getting reasonable prices for the remaining tickets, getting good flight times for traveling with 3 kids ages 3 and under, and getting decent seating for traveling with a lap baby? Don’t forget to throw in the Delta/Northwest merger of our frequent flier miles, and all of a sudden, booking the flight got really complicated.

Pay with Miles

Luckily, I discovered Delta’s “Pay with Miles” program. While the conversion ratio isn’t that great, it looks like a cheaper option than using miles outright for the dates we need. You need to have one of the American Express Delta cards to use the Pay with Miles program:

• Platinum Delta SkyMiles American Express
• Delta Reserve Credit Card

We each applied for a card, since you get 25,000 bonus SkyMiles after the first purchase (good for $500 off with the Pay with Miles program for 2 cards). After we get our new cards, even after paying the annual fee, it should make booking our trip much easier… and cheaper!

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Dividend Reinvestment Plan Advantages

Inexpensive to start. Often you can enroll in a dividend reinvestment plan by owning one share of stock. Some companies even offer dividend reinvestment plans that allow you to buy the initial share directly from them, bypassing a broker.

Reasonable fees. Companies reinvest your dividends in additional shares and allow additional cash purchases of stock with little or no fees.

Invest automatically. Some dividend reinvestment plans offer additional investments in amounts as small as $10-$25! Many offer monthly investment plans where they will withdraw the amount you specify from your checking/savings account.

Good investment practices. Often the best investment strategy is to “buy and hold” and “dollar-cost average.” (Dollar-cost averaging is the practice of investing a set amount on a periodic basis regardless of share price to even out the highs and lows. When prices are high you buy less, when prices are low you buy more.) Reinvesting your dividends through a dividend reinvestment plan is an excellent way to dollar-cost average, and over time can result in a substantial position in a company.

Dividend Reinvestment Plan Disadvantages

Watch out for fees on small investments. A recent trend in dividend reinvestment plans is for companies to pass along more and more fees to investors. Although these fees are often very low, they can easily eat up a substantial portion of your investment if you are investing small sums of money. As an example, I own 10 shares of a stock that pays $3.20 in dividends every quarter. The fee to reinvest that $3.20 was almost $1! Obviously not a good deal, so I withdrew from the dividend reinvestment plan.

Dividends are still taxed. Dividends are treated as income by the IRS whether you receive a check or they are reinvested. At the beginning this is often not a big deal, but over time as the number of shares you own builds the dividend amount can become quite substantial.

Paperwork. If you want to invest in 10 companies through dividend reinvestment plans you have join 10 different plans. You can simplify things a bit by using Computershare (see below) or Sharebuilder. Online brokerages usually offer free dividend reinvestment plans for those who invest larger sums.

Lack of diversification. Owning shares in a single company can be risky. Mutual funds might be a better choice for the risk-averse, as they spread out the risk over hundreds of companies.

Finding a Dividend Reinvestment Plan

Computershare offers one-stop shopping for hundreds of dividend reinvestment plans. They offer a searchable list that can be filtered to easily find a dividend reinvestment plan that fits your needs.

You can also use OneShare.

Probably the best way to find out if a company offers a dividend reinvestment plan is to visit the company website. Most companies have an Investor Relations area that will highlight the various options available to shareowners. For example: Coca-Cola, Disney, and Wal-Mart.

Final Thoughts

A dividend reinvestment plan offers investors an excellent, low-cost way to invest in a company on a regular basis over time. dividend reinvestment plans are especially advantageous for investors who can only invest a small amount each month. Investing in a single company carries risks, but it can also be quite rewarding.

Do you currently invest in a company through a dividend reinvestment plan? If so, which companies?

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