Family Finance from MarketWatch - FiLife

Make sure you and your agent agree on home's worth

Fri, 20 Nov 2009 00:11:00 -0500

Lew Sichelman answers reader questions about realty brokers and refinancing a home.

WASHINGTON (MarketWatch) -- Question: I have a question regarding realty brokers. My husband and I signed a contract to list our home for six months, and so far it's been one month of pure hell. Luckily, everyone who has visited our home has put in a bid on it. But rather than fight for us during the bidding process, this woman will argue with us at every turn. We're not talking $2,000 or $3,000 here; we're talking tens of thousands that she wants us to come down. The most we've come down so far is $19,000.

We have a very nice home and people have told us that it is priced right, and the comps we've seen testify to this. However, the would-be buyers out there are simply looking for giveaways by desperate people, which we are not. We have tried to pull our listing with this broker but we are told we're locked in for the full six months. We've used agents before and have never had this type of "war" going on. We believe the agent simply wants to sell our home at any price to close and get her commission. We've made a big mistake to choose her. Please warn your readers that the shortest term contract is the way to go until you know who you're dealing with. You can always get an extension. Is there anything we can do? We appreciate your advice. Marie.

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No easy cure for doctor shortage

Thu, 19 Nov 2009 18:11:00 -0500

SAN FRANCISCO (MarketWatch) -- It's a phrase people are loath to hear when they're looking for a new primary-care doctor: Not accepting new patients.

Some parts of the country already lack an ample supply of general internists, pediatricians and family physicians, forcing patients to drive further or wait longer for care. If a comprehensive health-reform bill passes and extends coverage to millions of uninsured Americans, many are asking if there will be enough primary-care doctors to handle the increased demand for medical services. "I think we'll see some effect like Massachusetts did, but I'm not expecting there will be chaos," said Lori Heim, president of the American Academy of Family Physicians and a family physician at Scotland Memorial Hospital in Laurinburg, N.C.

Heim was referring to the statewide health-insurance overhaul Massachusetts began phasing in in 2006, which provides a test-case example. It succeeded in dramatically lowering the state's uninsured rate to 2.7%, by far the lowest in the nation, but also exacerbated access problems in areas that already had primary-care shortages.

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What the investing map looks like without the U.S.

Wed, 18 Nov 2009 00:11:00 -0500

Outside the U.S. stock markets are recovery much more quickly, in turn causing more investors to put their money overseas.

NEW YORK (MarketWatch) -- Stock markets outside the United States are recuperating much faster from the bear's mauling. Accordingly, many investors have been pouring money overseas, which is one reason why non-U.S. stocks have been advancing so strongly.

The Dow Jones Global Total Stock Market Index, which includes 11,745 stocks in 64 countries, jumped 29% this year through Oct. 30. That advance reflected a 23.5% decline from the beginning of the year through March 9 and a following lift-off rally of 68.7%. By contrast, the 10-month gain for the U.S. market was 18.4%. (All performance figures are on a total return basis, which means dividends are included.) The early-year decline was just a shade worse in the U.S., and the subsequent jump trailed the global recovery by 12 percentage points.

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Credit-card balances rise as holidays approach

Wed, 18 Nov 2009 00:11:00 -0500

CHICAGO (MarketWatch) -- After months of paying off debt, some Americans pulled out their credit cards and started charging in October, according to data from two credit tracking firms. The data suggest consumption habits don't ever really die, especially when the busiest shopping season of the year is at hand.

Synovate Mail Monitor and Credit Karma both said that average credit-card balances increased as consumers added new purchases. But Synovate also said that credit-card consolidation contributed to higher average balances.

The most recent government figures for consumers' use of credit are from September, when the Federal Reserve said outstanding consumer credit fell at a 7.2% annual rate, the eighth straight month of declines. Meanwhile, the U.S. Commerce Department said Monday that October sales increased more than expected, thanks mostly to an appetite for new cars, but also due to consumers buying a variety of other goods.

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Gift-card fees keep on giving -- to card issuers

Wed, 18 Nov 2009 00:11:00 -0500

The Fed has new rules for gift cards, but they won't be in place until the holiday season in 2010.

BOSTON (MarketWatch) -- Just in time for the holidays, the Federal Reserve announced new rules that will restrict fees and expiration dates for gift certificates, store gift cards and general-use pre-paid cards. Alas, like a gift card that was improperly activated, the Fed only provided the rules, it didn't put them into place.

In fact, they won't be in place until the holiday season in 2010. As a result, you need to be aware of the rules and protect yourself and your loved ones if you are planning to give gift cards and certificates this year. The new rules announced Monday are part of the Credit Card Accountability Responsibility and Disclosure Act of 2009; as part of that law, enacted last May, Congress directed the Fed to come up with and implement stricter rules governing gift-card fees.

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Big sewer fee puts owners in a hole

Fri, 13 Nov 2009 08:11:00 -0500

Lew Sichelman answers a reader's question about the rules and powers of homeowner associations.

WASHINGTON (MarketWatch) -- Question: My daughter's homeowner association in Raleigh, N.C., is trying to assess a $20,000 fee on 16 owners for the repair and maintenance of a sewage pump station on her street. According to the letter, maintenance found diapers, plastic sheeting, grease and other items in the pump. I'm sure she would never put plastic items in her drainage as it would be likely to damage her plumbing!

The sewage drawings have been lost by both the developer and homeowner's association; therefore, they are not sure if all 16 owners or perhaps more owners use this pump station. Does the association have the right to assess for past and future repairs? The special assessment is for previous years' costs as well as costs for this year. It's also complicated by the fact that some of the 16 haven't lived on the street all year. For the last 18-20 years, the association has maintained the pump station without special assessments. This station may be the only one in the neighborhood since the rest of the sewer system is gravity flow and maintained by the city.

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The 10 vital rules for inherited IRAs

Thu, 12 Nov 2009 00:11:00 -0500

Inheriting an IRA can be a major headache. Here are 10 essential rules you need to know for inheriting an IRA.

BOSTON (MarketWatch) -- It's not a certainty, but odds are high that you might inherit an IRA some day. Doing so is bittersweet. On the one hand, it means that someone you know and love has died. On the other, it likely means that your net worth has increased as well.

Inheriting an IRA should also come with a bottle of ibuprofen because it also means that you now have to become familiar with and, more importantly, compliant with some retirement rules and laws and regulations that you never knew existed. Here's an overview of what experts say are the most important things you need to know about inheriting IRAs. But first this disclaimer: We're talking here about inheriting IRAs when you are someone other than a spouse. Inheriting your spouse's IRA comes with a different set of rules.

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If the next bank failure is yours are you ready?

Thu, 12 Nov 2009 00:11:00 -0500

Here's what you should know about how your money is protected if your bank fails.

NEW YORK (MarketWatch) -- If you've heard about all the bank failures -- 120 in total this year -- you've got to be wondering about the safety of your money.

On Friday, another five failed. The largest of them was San Francisco's United Commercial Bank, the main operating subsidiary of UCBH Holdings Inc (UCBH), which received $299 million in government help through the TARP program last year. Looks like taxpayers won't be getting that money repaid.

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Winter heating bills to shrink, but only for some

Tue, 10 Nov 2009 13:11:00 -0500

SAN FRANCISCO (MarketWatch) -- Consumers who rely on heating oil to heat their homes will pay more this winter than last year, thanks to higher prices for crude oil, according to the U.S. Energy Information Administration on Tuesday.

U.S. households who use heating oil will pay an average of $1,940 from October through March, a 4% hike from $1,864 last winter, according to the EIA's November outlook. Overall, looking at all types of heating fuels, U.S. households will pay about 6% less than last year, thanks largely to steep declines in the cost of natural gas and propane.

The EIA's October outlook predicted an 8% drop in household expenditures this winter, but a slight increase in the EIA's forecast for crude oil prices will eat into that decline slightly.

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Junk mail relief as credit-card offers tumble

Mon, 09 Nov 2009 10:11:00 -0500

CHICAGO (MarketWatch) -- Credit-card issuers are dramatically reducing solicitations to new customers ahead of sweeping legislation that will reset card rules for both consumers and lenders.

The Synovate Mail Monitor fell in the third quarter to 272.5 million mailings, marking the eighth straight quarter that credit-card solicitations sent to U.S. households declined. That's a 71% drop since the third quarter last year and a 22% pullback from the second quarter. "Issuers are still in a pause mode," said Anuj Shahani, the director of competitive services at Synovate. "They've pretty much stopped doing mailings and are waiting for the new legislation (to go into effect) so they can figure out exactly how it is they're going to make money in credit cards."

What's more, as defaults swell in tandem with the growing numbers of unemployed, issuers have become increasingly pickier about who gets the solicitations. Not surprisingly, they are choosing those individuals with the best credit scores.

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