My wife and I recently took a trip up to Williamsburg, VA (about a 3 hour drive from home) for a "free" 2 night stay in exchange for a timeshare presentation. We had been to one of these before (see my post from June 2008) and figured it was worth our time in exchange for free lodging + $75 visa gift card.
Overall, the place was reasonably nice -- although to call it a "resort" is a stretch. It was more like a 2 BR townhouse I would expect to see in a typical suburb. But it was a comfortable stay and didn't cost us anything.
Throughout the process, what bugged me most were the half-truths of the time share presentation. The salesman kept making his pitch saying that every year the vacations he takes only cost $140. My wife and I had agreed before hand that the way to get out of there the quickest was to just agree and let them keep going -- so we both had to bite our tongues several times.
I've done quite a bit of reading on timeshares -- and one of the best sources out there is a forum called tugbbs.com. So if you are looking to learn, that's a good source.
Timeshares aren't necessarily a bad thing, IF you know how and what to buy. I would only suggest only buying resale (not retail) since you can get most of them for free upfront for taking over the maintenance fees (as opposed to retail prices of $15,000-$30,000). So if you are considering it, here is the real cost breakdown per year.
Any amortized up-front expenses (If you buy resale, this should be near 0.)
+Yearly maintenace fees. ($500-$700)
+Points network dues. (~$150)
+Points network exchange fee. (~$150)
----
Total $800 -$1000/year.
If you know you will take a 1-week vacation every year, this may be a good fit for you. But you should also know that you can rent timeshares from current owners for almost exactly the same price as owning -- with all of the benefits -- and none of the downside. So to me, renting a timeshare is the way to go.
To find timeshare units for rent, check sites like http://tug2.com/timesharemarketplace/ or http://redweek.com.
Monday, January 17, 2011
Friday, January 14, 2011
Scams that make me laugh
I'm always amused by the latest in low-budget tv commercials that are obvious scams.
I saw one today that made me laugh outloud. It claimed that the information about the benefits of Vitamin D are being suppressed (by the government?) and that we should "join together in one voice" by joining the "Vitamin D Health Initiative." And, the commercial says, you'll get free vitamin D for life.
The funny thing is that when you go to the website, they charge you $6.95 per month "shipping and handling" for your monthly supply of Vitamin D. (30 pills of 2000 IU). That made me laugh outloud. A quick search of walmart.com shows 2000 IU Vitamin D is $9.00 for 200 pills, or about $1.35 per month. And of course, if you didn't know it, Vitamin D comes from exposure to sunlight -- so you can get a healthy dose just by stepping outside!
I'm sure there are some unfortunate individuals out there picking up the phone and signing on to be part of the "initiative" -- but for the rest of us, it at least serves as entertainment.
I saw one today that made me laugh outloud. It claimed that the information about the benefits of Vitamin D are being suppressed (by the government?) and that we should "join together in one voice" by joining the "Vitamin D Health Initiative." And, the commercial says, you'll get free vitamin D for life.
The funny thing is that when you go to the website, they charge you $6.95 per month "shipping and handling" for your monthly supply of Vitamin D. (30 pills of 2000 IU). That made me laugh outloud. A quick search of walmart.com shows 2000 IU Vitamin D is $9.00 for 200 pills, or about $1.35 per month. And of course, if you didn't know it, Vitamin D comes from exposure to sunlight -- so you can get a healthy dose just by stepping outside!
I'm sure there are some unfortunate individuals out there picking up the phone and signing on to be part of the "initiative" -- but for the rest of us, it at least serves as entertainment.
Sunday, December 26, 2010
Sell those unwanted games
Like a lot of folks, we have some Wii games that don't get played as much as they used to. So I decided to see where I could sell some games and come out the furthest ahead. All of the 3 major sites for selling your stuff have different fees. So I decided to calculate the amount I would pocket if I sold a game for $25+$4 shipping on eBay, Half.com (also owned by ebay), and Amazon Marketplace.
How much would you get to sell at $25 item with $4 shipping? This of course assumes that each of these would find buyers willing to pay the same price. Surprisingly, I found that Amazon was the most expensive and Ebay was the cheapest!
Amazon Fees
Sale price of the item $25
Shipping credit $4
- Referral Fee of 6-25% of the sale price -15% for video games
- Variable Closing Fee
- $0.99 Fixed Closing Fee (waived for Pro Merchant Subscribers)
-------------------------------------
Total deposited to seller's account = $22.91
Ebay fees:
$25 + $4
No insertion on
-9% of sales price
-2.9% + .30 paypal fee
----
= Total deposited to seller's account = $25.73
Half.com fees
$25+$4
15% commission
+.60 shipping commission
----
= Total deposited to seller's account = $24.05
How much would you get to sell at $25 item with $4 shipping? This of course assumes that each of these would find buyers willing to pay the same price. Surprisingly, I found that Amazon was the most expensive and Ebay was the cheapest!
Amazon Fees
Sale price of the item $25
Shipping credit $4
- Referral Fee of 6-25% of the sale price -15% for video games
- Variable Closing Fee
- $0.99 Fixed Closing Fee (waived for Pro Merchant Subscribers)
-------------------------------------
Total deposited to seller's account = $22.91
Ebay fees:
$25 + $4
No insertion on
-9% of sales price
-2.9% + .30 paypal fee
----
= Total deposited to seller's account = $25.73
Half.com fees
$25+$4
15% commission
+.60 shipping commission
----
= Total deposited to seller's account = $24.05
Monday, November 15, 2010
How much does it cost to have a baby without insurance?
We had a difficult decision to make last year. I got hit by a layoff with my Fortune 500 employer but we knew it was our best opportunity to have a baby.
At the time, I called every hospital and doctor's office in the area to see if I could get an idea of price. That was a lot more difficult than it should have been -- as it seems that most hospitals have no idea. After a lot of digging, my calculation was that it would cost $8,000 out of pocket. This was also with the assumption that we would carry medical insurance on my wife (but not maternity) so any complications would be covered.
We had a relatively uneventful birth with no complications. After tallying all the bills, it turns out that was a pretty accurate estimate. Here is what we were billed for. I hope this is helpful to some of you out there who are in the same boat.
The first line is the "fake" price you see on the bill. I hope that no one really pays this.
The second line is the insurance negotiated price. This is what insurance uses to figure your co-pay.
The third line is the cash price. This is a 50% discount on the retail price -- and oddly enough -- also cheaper than the insurance negotiated rate.
Location: Raleigh/Durham, NC, USA
At the time, I called every hospital and doctor's office in the area to see if I could get an idea of price. That was a lot more difficult than it should have been -- as it seems that most hospitals have no idea. After a lot of digging, my calculation was that it would cost $8,000 out of pocket. This was also with the assumption that we would carry medical insurance on my wife (but not maternity) so any complications would be covered.
We had a relatively uneventful birth with no complications. After tallying all the bills, it turns out that was a pretty accurate estimate. Here is what we were billed for. I hope this is helpful to some of you out there who are in the same boat.
The first line is the "fake" price you see on the bill. I hope that no one really pays this.
The second line is the insurance negotiated price. This is what insurance uses to figure your co-pay.
The third line is the cash price. This is a 50% discount on the retail price -- and oddly enough -- also cheaper than the insurance negotiated rate.
Location: Raleigh/Durham, NC, USA
| Anest. | Hospital | Lab | OBGYN | Path | Specialist | Total Result | |
| Sum - Retail | $1,404 | $9,223 | $237 | $3,677 | $80 | $2,874 | $17,495 |
| Sum - Insurance Negotiated Rate | $1,123 | $5,979 | $92 | $2,157 | $60 | $2,051 | $11,463 |
| Sum - Cash 50% | $702 | $4,612 | $119 | $1,839 | $40 | $1,437 | $8,748 |
Wednesday, May 12, 2010
Is Kohl's training me to wait for discounts?
About once a month we get a marketing piece from Kohl's in the [snail] mail with a peelie on it that says you can either get an additional 15, 20, or 30% off your purchases.
Every single time until today I've always gotten 15%. Then I throw it in the garbage thinking -- why would I go get 15% off if there are 30% coupons out there. Today I finally got a 30% off and thought -- "ok, maybe I'll use this."
So my question to my wife (and now to you all) is whether the Kohl's promotion is good or bad for business. They've been using this same promotion for at least a few years. Are they just conditioning me to never buy anything unless I have a 30% (or even 15% off) coupon?
Same thing happened to Linens N Things. They totally conditioned me to never shop without a coupon. Because the coupons were everywhere! (And now look where they are!)
Every single time until today I've always gotten 15%. Then I throw it in the garbage thinking -- why would I go get 15% off if there are 30% coupons out there. Today I finally got a 30% off and thought -- "ok, maybe I'll use this."
So my question to my wife (and now to you all) is whether the Kohl's promotion is good or bad for business. They've been using this same promotion for at least a few years. Are they just conditioning me to never buy anything unless I have a 30% (or even 15% off) coupon?
Same thing happened to Linens N Things. They totally conditioned me to never shop without a coupon. Because the coupons were everywhere! (And now look where they are!)
Monday, November 2, 2009
Bogle's 12 Pillars
This morning I was doing a little reading on the fantastic Bogleheads forum and came across something I had not read in years -- Jack Bogle's 12 Pillars of Wisdom (as it applies to investing). This was written in 2001, but certainly this system has been the mantra of "Bogleheads" for the last few decades. What is amazing is that despite its simplicity and its incredible effectiveness, very few investors follow these 12 rules. For the complete list and commentary, visit Vanguard's site here: http://www.vanguard.com/bogle_site/april272001.html
Pillar 1. Investing Is Not Nearly as Difficult as It Looks.
Pillar 2. When All Else Fails, Fall Back on Simplicity.
Pillar 3. Time Marches On. (Compoud Interest)
Pillar 4. Nothing Ventured, Nothing Gained.
Pillar 5. Diversify, Diversify, Diversify.
Pillar 6. The Eternal Triangle. (Risk, Return, and Cost)
Pillar 7. The Powerful Magnetism of the Mean
Pillar 8. Do Not Overestimate Your Ability to Pick Superior Equity Mutual Funds, nor Underestimate Your Ability to Pick Superior Bond and Money Market Funds.
Pillar 9. You May Have a Stable Principal Value or a Stable Income Stream, But You May Not Have Both.
Pillar 10. Beware of "Fighting the Last War." (Making decisions based on recent history.)
Pillar 11. You Rarely, If Ever, Know Something The Market Does Not.
Pillar 12. Think Long-Term.
Similarly, the Bogleheads Wiki has boiled down the essential beliefs into 5 brief statements:
1. Save a lot
2. Asset Allocation (Holding Bonds) Is Essential
3. Buy Low Cost Index Funds Covering the Whole Stock Market
4. Tax Efficiency Matters
5. Stay the Course
Pillar 1. Investing Is Not Nearly as Difficult as It Looks.
Pillar 2. When All Else Fails, Fall Back on Simplicity.
Pillar 3. Time Marches On. (Compoud Interest)
Pillar 4. Nothing Ventured, Nothing Gained.
Pillar 5. Diversify, Diversify, Diversify.
Pillar 6. The Eternal Triangle. (Risk, Return, and Cost)
Pillar 7. The Powerful Magnetism of the Mean
Pillar 8. Do Not Overestimate Your Ability to Pick Superior Equity Mutual Funds, nor Underestimate Your Ability to Pick Superior Bond and Money Market Funds.
Pillar 9. You May Have a Stable Principal Value or a Stable Income Stream, But You May Not Have Both.
Pillar 10. Beware of "Fighting the Last War." (Making decisions based on recent history.)
Pillar 11. You Rarely, If Ever, Know Something The Market Does Not.
Pillar 12. Think Long-Term.
Similarly, the Bogleheads Wiki has boiled down the essential beliefs into 5 brief statements:
1. Save a lot
2. Asset Allocation (Holding Bonds) Is Essential
3. Buy Low Cost Index Funds Covering the Whole Stock Market
4. Tax Efficiency Matters
5. Stay the Course
Wednesday, October 14, 2009
Do you need an Umbrella Policy?
I've been thinking recently about Personal Umbrella Policies (also known as PUPs). A PUP is an insurance policy that protects you against the potentially catastrophic impact of a liability suit. "What are the odds of that?" you may ask. Well, they are a long shot for sure. But that is precisely why the policies are so affordable.
Remember that when you assess a risk, you should ask yourself two questions. First, try to determine the likelihood that the incident occurs. Second, ask yourself the financial impact if that incident were to occur.
For example: the likelihood of my DVD player breaking is reasonably high. I'm sure it will probably happen within a few years. However, the impact is low -- less than $50. So I'm likely not going to buy insurance on my DVD player (although somehow BestBuy convinces millions of people they should....but that's another rant).
On the other hand, the possibility of you being sued for some sort of liability claim is relatively low, but the consequences could ruin you financially. And remember, we aren't just talking about the money you already have. Law suits can impact your wages for the future.
This is where a personal umbrella policy comes in. For likely less than $200/yr. (my GEICO policy is $144/yr.) you can buy $1 million worth of coverage. The coverage in an PUP is usually very broad and may even cover potential liabilities that your homeowners or auto policies do not. If the incident is covered by both policies, the PUP coverage is in addition to the coverage provided by your primary policy.
So is it worth it? Obviously there is no right or wrong answer because no one can see the future. But for less than $200/yr. -- it surely does let me sleep better at night knowing that if I'm at fault in a catastrophic car accident, I won't lose everything I've ever earned (or earn in the future).
Remember that when you assess a risk, you should ask yourself two questions. First, try to determine the likelihood that the incident occurs. Second, ask yourself the financial impact if that incident were to occur.
For example: the likelihood of my DVD player breaking is reasonably high. I'm sure it will probably happen within a few years. However, the impact is low -- less than $50. So I'm likely not going to buy insurance on my DVD player (although somehow BestBuy convinces millions of people they should....but that's another rant).
On the other hand, the possibility of you being sued for some sort of liability claim is relatively low, but the consequences could ruin you financially. And remember, we aren't just talking about the money you already have. Law suits can impact your wages for the future.
This is where a personal umbrella policy comes in. For likely less than $200/yr. (my GEICO policy is $144/yr.) you can buy $1 million worth of coverage. The coverage in an PUP is usually very broad and may even cover potential liabilities that your homeowners or auto policies do not. If the incident is covered by both policies, the PUP coverage is in addition to the coverage provided by your primary policy.
So is it worth it? Obviously there is no right or wrong answer because no one can see the future. But for less than $200/yr. -- it surely does let me sleep better at night knowing that if I'm at fault in a catastrophic car accident, I won't lose everything I've ever earned (or earn in the future).
Subscribe to:
Posts (Atom)
