Free Pants

So I'm watching the Super Bowl commercials, when one catches my attention like no other. The commercial has a number of guys walking through a field, singing we wear no pants. Repeatedly singing the one line.
Finally the narrator proclaims wear pants and tells viewers that Dockers is giving away free pants.

If you make it to the site, you learn that it's a chance to win free pants. Meaning the commercial misleads the viewers into thinking they will get free pants.






****UPDATE: Saints Beat Colts in Super Bowl, 31-17*****

Why Support the Fair Tax

Today, I thought we would tax another look at the Fair Tax. I have posted about this topic before, but today, DebtFree4ever.NET has video of a proponent speaking about it's merits.

Mega Millions

Today the Kansas Lottery issued the press release below. I had heard that this game was coming to Kansas, but didn't know when.

TOPEKA, KAN. – Starting this weekend, Kansas Lottery players will be able to play both Powerball and Mega Millions without ever leaving the state. As of January 31, Kansas will add Mega Millions to its game offerings, giving Kansas players an opportunity to participate in two big jackpot games.
All Kansas Lottery retail locations will sell Mega Millions tickets, with the first drawing on February 2. Mega Millions is drawn on Tuesdays and Fridays, while Powerball drawings are held Wednesdays and Saturdays. Both games have similar play styles with a base wager of $1. Each game also offers a multiplier option for an additional $1 per play. In Powerball, the multiplier option is called Power Play. In Mega Millions, it’s called the Megaplier.
The Mega Millions jackpot for Friday, January 29, 2009, is an estimated $144 million. If no ticket matches all numbers on Friday, the jackpot will continue to roll. For more information on how to play Mega Millions, please visit:
http://www.kslottery.com/MegaMillions/MegaMillionsHowToPlay.htm.
The agreement between the Multi-State Lottery Association, which administers Powerball, and the Mega Millions consortium is the largest in the history and gives all U.S. lotteries the option to cross-sell the two games. Previously, lotteries could sell one game, but not both.
As of Sunday, players in 33 jurisdictions will be able to purchase tickets for both Powerball and Mega Millions at official lottery retail locations. The market for these games has the potential to eventually expand to 45 jurisdictions.
“With the opportunity for more people to play both games, Powerball and Mega Millions jackpots are expected to grow bigger and faster than when they were sold individually,” said Kansas Lottery Executive Director Ed Van Petten. “We also expect to have more winners in Kansas and more prizes paid out.”
In addition, Van Petten said, there will be more opportunities for Kansas Lottery retailers to earn sales commissions and selling bonuses. The Kansas Lottery also hopes for incremental gains in revenue from the addition of Mega Millions.
Players can check their Mega Millions tickets at any Kansas Lottery retail location. Winning numbers will also be available on the Kansas Lottery website www.kslottery.com or by calling (785) 296-5700.
Players may also have winning numbers sent to them via e-mail if they are members of the free Kansas Lottery Players Club. To join the Players Club, visit: http://www.kslottery.com/PlayersClub/PlayersClubIntroPage.htm.

While, this news is interesting, I am concerned. Concerned because the lottery is a tax on those that are poor, not to mention those that are bad at math. The problem is the poor are the most affected by it. They don't have the discretionary cash to buy the tickets, yet they spend it, hoping to get all kinds of "free" money handed to them to solve all their problems.

As for those that are bad at math. It would be better if you took the money that you would spend on the lottery and invest it in a good growth mutual fund. The rate of returns is better and when you reach retirement you will have enough to retire on.

Roth or Traditional IRA

My fiance is in the process of rolling over her old 401k. As such, I introduced her to my broker, who handled my rollover in 2008. She has had one meeting with him and is scheduled to go back this week, to finish up the process. One decision, she has to decide upon is does she set up a regular IRA or a Roth?

We both like the idea of the growth being tax free, but that means the current cash would have to have tax paid on it. Where if she made a straight roll over from the 401k to a traditional IRA, the taxes wouldn't be paid until she retired.

If she chose the Roth route, when would she have to pay the IRS? Right now? Next April (2010 tax season)? Or when?

At the same time, I am contemplating converting my traditional IRA rollover, I already have with him, to the Roth. Yet, I have the same questions. So what should I do? I want to get all my debts paid for this year and pay for a wedding with cash, so how will this affect me and my goals? Any thoughts?

Stock Split

Yesterday, the previously announced stock split occurred. That being the stock split for Warren Buffett's Berkshire-Hathaway class B shares. A stock that as my long time readers know, I hold. I was surprised, that it happened so quickly, since it doesn't seem like it had even been a month since, I had received the packet for me to vote my proxy.

Despite the declines across the broader market, Berkshire Hathaway's so-called Baby-B shares jumped $3.20, or 4.6%, to $72.72, on heavy volume after the company's shareholders approved a 50-to-1 split of its Class B common stock.

The split cut the price of each share to about $67, from a trading price of more than $3,000.
- Wall Street Journal javascript:void(0)

Due to the high cost of the stock, it was my smallest holding, with just .03 shares before the split. Now, I own 1.6050 shares and it is my third largest holding on Sharebuilder. Where I have a total current balance of $508.53, to go towards my future retirement. Now, I wonder, how long it will be before this stock is once again trading above the $100 range, the $500 range, etc etc.

Financial Peace Class 1

This past Wednesday, my fiance and I attended the Financial Peace University class nearest us. I had, as many of you know, attended the class in another location couple of years back. However, Pat had never been and this was the first time we had attended any financial classes as a couple.

When we first arrived, our hearts sunk, when we realized that the class was not in a handicapped accessible location. After a couple of trips upstairs by the Associate Pastor, the class was moved downstairs to a more handicapped accessible location.

Once, that was done, the class started, though slightly belated. During the class, I was reminded what one lady's grandma (or was that mom) called her emergency fund. That being the GOK Fund. GOK meaning God Only Knows. Through out this first video Have reminded us that, saving must become a priority and that we must pay ourselves first.
He also reminded us, by listing the Baby Steps:

1. $1,000 in the bank (Emergency Fund)
2. Pay-Off all debt utilizing the "debt Snowball" (except the house).
3. 3-6 months expenses in savings.
4. Invest 15% of household income into Roth IRAs and pre-tax retirement
5. College Funding
6. Pay-off home early
7. Build Wealth! (Mutual Funds/Real Estate)

Both the fiance and I are looking forward to the class this next Wednesday.



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